Procuring bunkers and managing a vessel’s refuelling is one of the most complex processes in pre-voyage planning and voyage execution. As the shipping industry increasingly turns to new and more expensive fuels, optimising this process is necessary to improve a voyage’s profitability.
The end-to-end approach considers the impact of operational planning and performance-based changes on the total cost of bunkering rather than just the cost of bunkers in isolation. Aman Talwar, Head of Bunkers at GeoServe, succinctly captures this: “In the face of evolving bunker landscape, our priority has shifted towards optimising not just the cost but the very essence of our customers’ bunker planning strategy. It’s about comprehensively addressing ‘WHERE to buy WHAT, and HOW much to buy?’” The voyage planning phase involves identifying the most suitable bunkering locations based on various factors. However, as the voyage progresses, data on the vessel’s performance and the voyage is combined with real-time data on the cost and availability of bunker grades, market trends, bunker supplier history, and other factors, enabling the identification of potential issues and the ability to make informed decisions.
The data may show that the cost of bunkers is competitive, availability is high, and there is little to no congestion, enabling the vessel to reach its berth at the agreed time without any route deviation. In another scenario, the data could show that bunker prices have risen, and it may make sense to secure bunkers at another destination. By integrating all of this information, a decision can be made on whether to continue along the intended route or deviate. If the vessel is under voyage charter, it must ensure that a change in route is permitted under the charter party terms.
We spoke with one tanker operator who shared how access to data that highlights inefficiencies in bunkering and suggests alternative options for the voyage is a game-changer. “We have done the majority of our bunkering in major bunkering hubs, but we have also taken bunkers in ports not commonly used for bunkering. The price difference between the major hubs and other ports can be quite high. Sometimes you can’t avoid it and you have to bunker where you can, but there are other instances where you can avoid bunkering at that specific location. Having access to information that tells us first of all if it’s feasible to avoid bunkering at that port and how much money or time we would save by going elsewhere is really valuable for us. It means we can look at our procedures and processes and improve upon that, leading to significant cost savings and operational efficiencies.”
According to Fuel Trust, 39% of the deliveries from 2019 to 2022 had bunker quantity discrepancies. Although Mass flow metres (MFM) was a welcome development, the industry still suffers from unscrupulous suppliers. Bunker quality issues are another common issue faced by ship operators. Maintaining and sharing data on unscrupulous suppliers across networks and integrating this into bunker procurement workflows can significantly enhance transparency and efficiency, reducing the risk of disputes.
Overall, efficient bunkering management is vital for maritime profitability. An end-to-end approach integrating operational planning with real-time bunker data enables informed decisions, optimising processes, enhancing transparency, and minimising risks. Solutions like GeoServe’s GeoStem streamline operations, driving cost savings and efficiencies for ship operators.
For a more detailed understanding and exploration of the topics covered in this article, refer to our report, Charting a Profitable Course: Achieving Excellence in Commercial Voyage Management, commissioned by GeoServe.
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