In our last article, we examined the obstacles to implementing HFD and strategies for a successful transition, addressing issues like sensor absence, data accuracy, standardisation, and system interoperability. In this article, we explore the operational challenges and opportunities associated with implementing High-Frequency Data (HFD) in the maritime industry. It covers the initial investment costs, the potential for a strong return on investment (ROI), cybersecurity concerns, and strategies for successfully integrating HFD to optimise operations and improve performance.
Operational Challenges and Opportunities
Cost of Investment
As with any technology upgrade, the initial cost of investment might be high. The VP of Operations at Emirates Shipping Line, Willem Bekooy, told Thetius it cost them around US $25,000 per vessel to upgrade. Bekooy admitted that this could be a deterrent for some, especially if they can’t see a clear ROI. However, while this was a considerable expense for Emirates, it was justified by the potential fuel savings and overall performance improvements.
For shipping companies concerned about the upfront investment, focussing on the long-term benefits and fuel savings can be helpful. In addition, it makes sense to start small by implementing HFD systems on a limited number of vessels to test their effectiveness before scaling across the fleet.
Cyber Security
There is a common belief that LFD is at a lower risk of cyber attack due to the smaller volume of data transferred and its typically manual nature. Additionally, as LFD is often used for long-term analysis, a breach may not immediately disrupt critical operations, unlike HFD systems that are integral to real-time decision-making. However, while the real-time transfer of HFD makes it an attractive target for cybercriminals, it is important to recognise that LFD, particularly when used with legacy systems, may not have been designed to withstand modern cybersecurity threats. These systems often rely on outdated security protocols, potentially making them more vulnerable than stakeholders might assume.
Furthermore, although LFD is transmitted less frequently, it still requires storage and eventual transfer. Without proper encryption and security measures, this data can be accessed by unauthorised parties, compromising the system. It is important to remember that the risk of cyber attacks is not solely dependent on whether data is high or low frequency. What matters more is how the data is managed, secured, and integrated into the ship’s overall digital ecosystem.
When transitioning to HFD, shipping companies should look for a vendor that provides systems with a secure architecture to protect them against intrusions. For example, dedicated hardware for data export can ensure that critical information is handled securely, reducing the risk of cyber intrusion during data transfer processes.
Implementing for ROI
Prioritising deploying HFD in areas where the quickest returns can be realised, such as fuel monitoring, voyage optimisation, or maintenance scheduling, can also help to yield an ROI more quickly. In addition, using HFD to supplement LFD rather than replacing it outright reduces the scope of the initial investment while benefiting from the advantages of both data collection systems.
Customers can also collaborate with technology vendors to customise solutions that address specific operational needs and demonstrate quick results. Vendors have a responsibility to demonstrate quick, effective results to build trust with potential customers.
34 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.
