‘Big Data’ is high on the agenda of virtual conferences in today’s shipping industry. But it remains true that most shipping companies still rely on ‘Small Data’.
Over 90% of shipowners and charterers still use decades-old tools to measure fuel consumption and performance. They use the equivalent of an electronic dipstick to sound the fuel tanks to determine how much fuel was consumed – and even then they only do this once per day so that they can fill in the numbers in a daily Noon Report,
Every ship is facing the same problem: fouling of the underwater part of the ship with algae, seashells, and other marine life. The ocean is full of living organisms, especially well growing in the tropical zone. Several places, such as the South American coast and the Indian Ocean are most susceptible to hull fouling.
Many studies have identified the effect on fuel consumption. As fouling leads to higher hull resistance, many owners and charterers periodically clean the hull of their vessels.
In the first quarter of 2020, everyone in shipping expected the sulfur regulation from the International Maritime Organization (IMO) that came into force on 1 January 2020 to take the centre stage in the shipping industry. But the spotlights have turned to the coronavirus and the OPEC oil price war. Bunker prices dropped from 690 (VLSFO) to 220 US$/MT in April*.
In the last months, however, we see the opposite trend. Markets are anticipating a return to normal,
One of the biggest performance killers that all shipping companies face is hull fouling. From the first day the vessel touches the water, fouling starts to build up and increases the hull resistance – resulting in higher fuel consumption.
Even minor biofilms affect the hydrodynamics of a ship’s hull by increasing drag and, therefore, the required propulsive power. Fouling conditions can grow worse if the vessel has long idle periods or low activity such as frequent stays in port,
An often undervalued part of building a successful company is the team. We have learned that with the right combination of skills, experiences, personalities things start to fly. We realize that a good team is an important (if not even the most important) part of becoming a successful company.
Like Guy Kawasaki famously said: “Ideas are easy. Implementation is hard.” And successful implementation is all dependent on the team. It does not matter how great the idea is if they cannot pull it through.
In today’s highly competitive economy, a longstanding organizational directive for virtually all corporate functions has only intensified: reducing the operating costs of an asset while improving the business value the asset generates. Yet many executives in shipping struggle to answer that call because they lack a detailed picture of their function’s performance along key dimensions or, more importantly, how that performance measures up to their peers.
Benchmarking is a critical tool in that regard.
Performance, as they say, is everything. Increase performance and you reduce emissions, save costs, improve reliability, and ultimately better please your customers.
This October, leading charterers launched the Sea Cargo Charter, aimed to provide a global framework for aligning chartering activities with responsible environmental behavior to promote international shipping’s decarbonization. The aim is to request information from owners that will allow annual reporting of how much fuel is consumed per metric tonne of cargo loaded.
In a previous blog, we discussed how most charterers monitor performance by using data is collected manually at sea and reported back to shore once per day. Also, this noon data is used in performance claims. We believe that the smart use of high-quality data can also help you in the settlement of these claims.
In a recent project, We4Sea was approached by a charterer that suspected underperformance of one of their chartered vessels,
A Charter Party is a contract by which the owner of a ship lets it to others for use in transporting a cargo. The shipowner continues to control the navigation and management of the vessel, but its carrying capacity is engaged by the charterer. The performance of the vessel is an important part of the contract. To monitor performance, data is collected manually at sea and reported back to shore once per day.
Ship owners and charterers: A relationship where each of the parties need the other, but their respective incentives rarely align.
Owners time charter their vessels as a way to secure income in a volatile and uncertain market; while charterers receive assurance that they have secured sufficient tonnage to move their cargo. The lack af aligned incentives is visible in many things – from minimal data sharing, to unwillingness in sharing consumption tables, arbitrations and claims—all leading to losss valuable time and money.
From our research, it shows that over 90% of the ships have no monitoring system in place, other than noon-reporting. Although valuable, these reports will not help you in deciding how to reduce fuel consumption.
For example, from the collected noon-data, you cannot conclude if a vessel is sailing efficiënt or not. You can see higher or lower fuel consumption than average, but cannot check the reason for it. Bad weather? Strong currents?
We asked a simple question: Do you trust the noon-reports that you receive?
The last couple of months, We4Sea held interviews with many charterers and shipowners to get answers to this question. And the outcome surprised us.
“67 % of respondents think data from noon reports is not or only partially reliable for use as a reporting tool while 80% uses noon reports for performance monitoring.”
Most of the 32 respondents expressed frustration about having to rely entirely and solely on noon-reports.
In a previous post, we explained our view on the future of data-collection on ships. Research shows that 95% of ship-owners still use noon-reporting as their management tool. The majority of data from ships is still collected only once every 24 hours, and mostly relying on manual input. With all the data around us, we can do so much better!
In a rapidly digitizing world, the maritime industry has many opportunities to improve their business by using data.
Help Euro Marine Logistics to monitor the impact of hull fouling on fuel consumption before and after a hull cleaning.
A fuel cost saving of $150,000 in 6 months’ time.
“About $150,000 for bunkers were saved in six months’ time. It is now clear to anyone that monitoring and taking informed decisions based on data is a no-brainer.” – Bastian Schwarz – Read more »
Any commercial ship uses noon-reports. It comes in all forms, but in fact, it is a data sheet prepared by the ship’s chief engineer on a daily basis. The report provides data such as the vessel’s position and other relevant data and is often used to assess the performance of the ship based on its speed and environmental forces, including weather conditions.
Noon-reports are the most used form of monitoring by charterers. They use it to assess the difference in the performance against the Charter Party and to detect underperformance or possible issues.