Ship Management

Ship Management is fully integrated with fleet management, crewing, risk management and technology support. As ships account for about 65% of our total fixed assets, it is imperative that the fleet is managed and operated
efficiently, assets are protected and values maintained.

During the last four years the majority of all ships managed by external managers have been transferred to Odfjell Ship Management which now manages 57 and supervises three ships.

Odfjell Ship Management has personnel at offices in Bergen, Singapore, Manila, Subic Bay, São Paulo and Houston, which provide direct support to ships in regional trades as well as ships in the deep-sea fleet and also professional crew management.

The loyalty amongst our seafarers and the changes implemented within Ship Management organisation provides
sound foundation for future performance. The continuous development of our shore team is considered a successful
approach to ensuring more direct interaction between our ships and offices. Our primary focus is on ensuring
quality management. In January 2008, Odfjell further developed our internal superintendent and surveyor trainee program and also started an exchange programme with Det Norske Veritas (DNV) in which trainees from the two companies spend a period at the other party’s offices.

Ships

The implemented ship maintenance programme ensures safe and efficient operation, a long useful life and high
second-hand values. The maintenance strategy is developed in co-operation with Det Norske Veritas (DNV) and is
implemented through our computerised Planned Maintenance System supported by an in house specialist team.

Crew

The safe operation of chemical tankers depends on highly qualified officers and crew. Our ships are mainly registered in Norway (NIS) and Singapore, and are mainly manned by Norwegian and Filipino seafarers with long experience from chemical tankers.

Odfjell pays considerable attention to recruiting qualified officers and crew and, at any given time more than 200
Norwegian, British or Filipinos seafarers are normally employed as trainees or cadets. Odfjell first started its cadetship program in the Philippines with John B. Lacson Colleges Foundation in 2005. The formal inauguration of Odfjell’s Bacolod Campus on the Philippines took place on 1 February, 2008.

Training of officers and crew are a key area to ensuring quality management. Odfjell allocates significant resources to training. During the last years we have implemented major upgrades of Odfjell Academy located in Subic Bay.

Risk Management

Ship Management actively evolve our current use of Risk Management to maintain and improve our performance.
Every year Odfjell carries out regular internal audits of all ships. Customers make inspections through the Chemical
Distribution Institute (CDI) and the Oil Companies International Marine Forum (OCIMF). Periodical surveys are
carried out by various classification societies, flag states and port states. DNV performs ISM Code inspections of our
ships’ quality systems. When ships or offices report critical situations, accidents, non-conformances or possible improvements through our Safety and Improvement Reporting System proper response is prepared and corrective actions implemented. We view this system as an effective tool in our work to increase safety and to prevent injuries, damage and losses. During 2008 we have also increased our efforts in experience feedback to ships managed.

The implemented Key Performance Indicators have been actively measured and followed up during 2008 and
improvement of performance is achieved in a number of areas, in particular related to near accident reporting, vetting performance, Port State Control, performance and Class rating.

The initiative titled “Tanker Management and Self Assessment” (TMSA) introduced by the Oil Companies International Marine Forum (OCIMF) requires Ship Managers responsible for tankers to demonstrate the effectiveness of
their management system. Odfjell Ship Management submitted several higher level achievement for a number of the TMSA elements in 2008 and has also put in place the processes to achieve the higher levels for more elements specified by the TMSA guide. The TMSA guide is considered to be a significant contribution to future improvement of the management of our vessels.