An end-to-end approach to voyage management optimises a range of processes that occur during a voyage. Below, we outline some of the key ones and discuss how an end-to-end approach can help to reduce inefficiencies and errors, leading to a safer and more profitable voyage.
Pre-fixture Planning
Using market and historical performance data, integrated systems for voyage management can identify chartering opportunities and risks. This helps in the pre-fixture stage to determine the best ship to use for the cargo being transported. By integrating historical data on ship performance, evidence-based benchmarks on vessel speed and fuel consumption, amongst others, can be seen. This helps to determine the likely performance of a vessel based on specific operating conditions during specific voyages. This allows for voyage costs to be estimated, taking into account the performance of the vessel as well as port costs and other expenses.
Voyage Optimisation
An end-to-end approach to voyage optimisation significantly surpasses traditional methods by integrating advanced algorithms and real-time data, encompassing onboard IOT sensors, weather, sea conditions, navigation lanes, hazards, vessel-specific speed consumption curves, engine limitations, charter party speed limits and port congestion. During the voyage, real-time data is continuously fed into and across the integrated systems to assess and determine whether any route deviations need to be made. Vessel performance systems will simulate if and how fuel consumption will be affected by any route changes. Unlike just a software tool, this needs to be continuously evaluated by a specialist to ensure all the stakeholders are well informed.
This comprehensive strategy not only aims for cost efficiency and safety but also ensures all stakeholders are informed about route adjustments, thereby minimising disputes over charter party agreements. Unlike traditional practices, the end-to-end approach facilitates optimal route selection, enhancing safety and operational efficiency. According to a Freight Trader from ExxonMobil, the company has saved up to US $400 per day per noon report by rolling out vessel performance software from GeoServe. The software enables Exxon to gain greater visibility on the operation of the ship and decisions made by the Captain based on a 14-point analysis by GeoServe. After the data has been analysed, GeoServe recommends what can be done to save more fuel in the coming voyages.
Deviation Dilemma
In a recent incident, a vessel’s Master chose to complete a longer route from the intended plan due to hurricane season. However, no poor weather warnings were reported during that time. The charterers deducted fuel and hire costs as the owners failed to submit evidence to prove that the weather was severe enough to warrant a deviation for safety reasons. In this instance, there was a lack of clarity around the weather conditions and whether the deviation was necessary, which led to huge complexity in calculating the financial loss due to the deviation.
In the end, the case ended up at an arbitration tribunal. By providing total transparency around weather conditions, route modifications, and decision-making, an end-to-end voyage approach to voyage management can, in some cases, help to avoid such disputes. Overall, an end-to-end approach to voyage management integrates advanced algorithms and real-time data, optimising route selection, enhancing safety, and improving operational efficiency while minimising disputes and maximising cost savings.
For a more detailed understanding and exploration of the topics covered in this article, refer to our latest report, Charting a Profitable Course: Achieving Excellence in Commercial Voyage Management, commissioned by GeoServe.
You can download the full report below:
