Despite the central role that Voyage Management Systems (VMS) play in streamlining fixture workflows and monitoring voyage Profit & Loss (P&L), some industry players view them as singular, comprehensive solutions. This perception overlooks the crucial workflows not covered by VMS.
One industry leader we spoke with noted “Depending on a company’s specific needs, there is a wide range of VMS tools available. While some are market leaders with high setup and subscription costs, an improper selection based on these needs can lead to even higher switching costs. Despite over 75% of organisations having a VMS, their struggle today lies in juggling a variety of different tools and subscriptions in addition to the VMS itself.” Another chemical operator we spoke with said that he was keen to ensure his staff weren’t having to look at multiple systems to find out the answer to a single question. “If you can create some kind of synergy between systems or have them all under one platform where they can get 99% of their work done, that’s what we really want.”
This situation underscores a fragmented approach that leads to inefficiencies and an increased risk of miscommunication. Operators often find themselves managing multiple software services for bunker procurement, vessel routing, port disbursement, laytime and emissions tracking. This diversity in tools dilutes the potential efficiency gains from digitalisation. Moreover, each of these systems might rely on its own set of master data, complicating data integration and consistency across platforms.
The essence of integrating multiple systems lies not just in harnessing diverse functionalities but in ensuring these systems ‘talk’ to each other efficiently. When master data—such as vessel specifications, port or cargo details, vendor details vary between systems, reconciling this information becomes a challenge. It requires rigorous data management protocols and, potentially, middleware solutions to facilitate seamless data exchange and synchronisation between systems.
Operational managers today often lack trust in certain vendors or agents. Often, due to the obligations outlined in the charter party, the ship operator may not have the freedom to choose their preferred vendor or agents. There are instances where the vessel does not call at a particular trade region or port regularly, leaving the team without enough historical data to assess an agent or vendor effectively. Additionally, if the interests of the agent or vendor are not aligned, especially when they are appointed based on the instructions of another stakeholder, this misalignment can result in unforeseen outcomes.
This reduces the quality of information provided and makes it even more challenging to make decisions that optimise commercial performance. One operational manager told us that he’d previously dealt with very poor service from a vendor, which meant the information he was being provided with wasn’t adding value. It required even more time to go back and forth with the vendor to secure the information he needed. “The impact of this varies depending on the service that you’re using, but it could range anywhere from a few thousand dollars to a hundred thousand dollars. If it causes a delay to the operation of the ship, the impact is huge,” he told us. He said this experience led him to realise that you really need a marketplace of “rated people and trusted vendors.”
It’s also important for people to acknowledge that just because something isn’t broken, doesn’t mean it can’t be improved. Adwit Gosain, Business Development Manager at Geoserve explained that a lot of people have the mindset that there’s no need to intervene if something is working. “The problem with this is that you don’t realise that something’s broken in the system until you sit down and look at it properly. What we see right now is that people do not always think ahead. They just take action when they need to. It’s very reactive. Sometimes you need another person or company to look at what you are doing and point out where you could do things better.”
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:
