This article explores the pivotal role that High-Frequency Data (HFD) plays in optimising voyages, enhancing stakeholder visibility, improving revenue, and simplifying ship performance reporting. By comparing HFD to traditional Low-Frequency Data (LFD), we highlight the superior accuracy and real-time insights that HFD offers for decision-making, fuel efficiency, and regulatory compliance. Through practical examples and case studies, we demonstrate how adopting HFD can significantly benefit ship owners, charterers, and stakeholders across the maritime industry.
Advanced Analytics For Voyage Optimisation
HFD from a vessel provides granular insights on its performance that can be combined with ocean, wave, and wind data to optimise voyages. HFD feeds into algorithms that generate ship performance models. Noon report data is too inaccurate for such models. In a study, researchers examined noon report data against HFD measured by sensors to determine STW and MEP. HFD captured at 5-minute intervals over 24 hours was compared with noon report data across three vessels. Noon report data had an average error of 3.8% for STW and 9.9% for MEP. HFD provides insight into short-term fluctuations in performance, improving model value.
Enhanced Stakeholder Visibility
Accurate fuel consumption data is essential for stakeholder visibility. Transparency along the supply chain builds trust, boosts customer satisfaction, and supports competitive advantage. Owners can use real-time performance data for accurate vessel descriptions when marketing. For example, if a ship performs efficiently (based on speed and fuel), the owner can highlight this in marketing materials, boosting the vessel’s appeal.
The Importance Of Visibility In Setting Accurate Day Rates
Shipping companies must price vessels competitively while minimising underperformance claims. Consider a vessel sailing at varying speeds, possibly due to navigational safety concerns or Officer of the Watch inexperience. This can lead to slower speeds at night and faster speeds during the day. Noon reports would be based on assumptions, as illustrated on page 12. Combining noon reports with real-time data creates a performance curve illustrating vessel efficiency variance between automatic HFD and traditional LFD. Even a 1% improvement in efficiency, based on the discrepancy between HFD and noon report data, could translate to an extra $200 per day in revenue, assuming a $20,000 TCE rate. Over a one-year charter, this equates to $73,000, and over the vessel’s 25-year lifespan, it totals $1.8 million. HFD helps charterers and owners identify vessels performing below warranted speeds, providing clarity on disputes. For example, if a Captain deviates from the planned route in response to weather but incurs financial losses, its crucial stakeholders access the same data, showing why route changes occurred. HFD offers a collaboration tool for owners and charterers, providing transparency and performance benchmarking. This reduces disputes and improves route management.
Simplifying Ship Performance Reporting
HFD provides detailed, validated records to support regulatory compliance, which is crucial with requirements like EU ETS to avoid financial penalties for poor emissions performance. HFD’s high granularity and continuous, transparent record of fuel consumption and emissions help meet stringent regulatory standards, reducing the risk of non-compliance and penalties.
An example platform using HFD is Danelec Fleet Insights. It offers a dashboard of critical emission indicators. Users can quickly identify carbon efficiency drivers and barriers and adjust to improve the vessel’s CII score. HFD from multiple vessels can be aggregated and analysed, giving a comprehensive overview of fleet performance to support better benchmarking and optimisation across the fleet.
26 Danelec (Feb, 2018) Maximising ROI through advanced data analytics and automation
27 Nautilus Labs (Aug, 2023) How can high-frequency vessel data be used in charter parties?
For further insight into the areas discussed in this article, download our latest thought leadership report, From Data To Action, created in partnership with Danelec.
