In any given voyage, there are multiple stakeholders involved, various decisions to be made, and an array of uncontrollable factors that have the potential to increase the level of risk involved. Even a slight miscommunication or delayed data sharing about a voyage between team members can send the vessel and its Profit & Loss (P&L) completely off from the original plan. Whether the result is a minor loss or a major catastrophe, the importance of streamlined access to insights across systems and simplified workflows should not be underestimated. This is a multifaceted process that includes pre-fixture functions, post-fixture functions and post-voyage completion areas.
What does commercial voyage management involve?
Commercial voyage management is an essential aspect of the shipping and logistics industry, involving a complex process designed to ensure the efficient and profitable operation of vessel voyages. The entire management process can be broadly divided into three main stages: pre-fixture, post-fixture (voyage in progress), and post-voyage completion.
Pre-Fixture
The pre-fixture stage is the foundation of voyage management, focusing on the preliminary arrangements before a vessel is chartered. It starts with assessing the supply of tonnage by examining the position/tonnage list, which provides information on available ships.
Screening vessels using compliance and risk management software is a critical step in this stage. This ensures that the ships comply with international regulations and standards, mitigating risks associated with maritime operations. Finally, the pre-fixture phase concludes with charter party writing, a process that legally binds the vessel owner and the charterer to agreed terms and conditions, effectively fixing the vessel for the voyage.
Post Fixture (Voyage in Progress)
Once a voyage is underway, the postfixture stage kicks in, concentrating on the core commercial operations and voyage optimisation. This includes fuel procurement, where the focus is on acquiring cost-effective and compliant fuel. The quality and supply risks associated with fuel are also addressed to prevent any disruptions during the voyage.
Weather routing and vessel tracking are integral for ensuring the timely and safe arrival of the ship, while emissions monitoring is crucial for compliance with environmental regulations. Port disbursement and port services contracts are also managed during this phase, ensuring that all necessary services are available for the vessel upon arrival and departure from ports.
Post Voyage Completion
The post-voyage stage involves handling various administrative and financial tasks. This includes managing performance claims if the voyage did not meet the agreed performance standards or clauses. Port payments and foreign exchange transactions are settled, ensuring all dues are paid, and currency exchanges are processed. Lastly, the management of laytime and claims through a specialised workflow that combines digital tools and claims experts ensures that any disputes or delays during loading and unloading are fairly addressed, closing the loop in the voyage management process.
Overall, commercial voyage management covers an extensive array of activities, starting from the initial planning stages to the concluding settlements after the voyage. Each phase is essential in securing not just profitable voyages but also in the context of an organisation, achieving profitability that surpasses industry benchmarks to remain relevant.
For a more detailed understanding of commercial voyage management stages and an exploration of this intricate landscape covered in this article. Refer to our latest report, Charting a Profitable Course: Achieving Excellence in Commercial Voyage Management, commissioned by GeoServe.
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