Navigating the seas of efficient voyage management is a challenge, especially in bunkering, where fragmented data and standards compound complexities. With bunkers constituting over half of a voyage’s expenses, optimising decisions becomes crucial. Yet, inefficiencies persist due to disparate information systems and inadequate standards, impacting costs and operational integrity.
One element of voyage management that is highly inefficient due to a fragmented and siloed approach to data is the procurement of bunkers. Bunkers account for around 50-60% of a ship’s total operating cost and, therefore, represent a significant cost of a voyage. There are many factors to consider in making optimal bunkering decisions, including which port to bunker at, the availability of bunker barges at the desired port, whether the specific type of fuel is available, the quality and compatibility of the fuel, fuel cost, and the vessel’s fuel consumption.
The latter of which may change throughout the voyage based on weather conditions or sailing speed. The problem today is that much of this information is found in different systems and is not integrated, making analysis and effective decision-making difficult. One Executive of a major ship owner told us that having more clarity and visibility on bunker spend would help enormously from a dollar perspective. “Bunkers are roughly just north of 50% of the total voyage expense. If you can even improve that by 5-10% that’s a marked improvement.”
Additionally, despite the existence of ISO specifications for fuel quality, the reality remains that these standards are not universally accepted by all suppliers, particularly in certain regions. Certain technical parameters that impede fuel filtration systems are not comprehensively covered under existing ISO testing standards. This gap in standardisation and acceptance exacerbates the complexities of bunker procurement, affecting the decision-making process regarding fuel selection and supplier reliability, ultimately impacting voyage costs and operational integrity.
Global marine traffic has increased with container ships spending 13.7% longer in port. It happens due to a variety of reasons, including increased cargo volumes, limited berthing availability, inefficient port operations, or labour shortages. Congestion leads to longer waiting times for vessels to berth, which increases fuel costs, requires vessels to adjust their schedules, and can delay the entire supply chain.
In the tramp trade, this often leads to a sail-fast-then-wait approach, a concept known all too well in commercial shipping operations. Due to contractual obligations of cargo delivery days, ships are required to arrive in port to meet the terms of the charter party and often end up ramping up their speed to ensure they arrive in port in plenty of time. Once the vessel arrives, it finds a berth isn’t yet available and anchors just outside the port to commence its laytime. Additional fuel is burned whilst at anchor, increasing both financial costs and emissions released by the vessel. This ultimately results in a much more inefficient voyage than it could have been, had the vessel maintained a slower sailing speed built around berth availability, improved communication, and balancing the contractual obligations between agents, shippers/receivers, owners, and charterers involved.
Overall, navigating the seas of efficient voyage management is a challenge, especially in bunkering, where fragmented data and standards compound complexities. With bunkers constituting over half of a voyage’s expenses, optimising decisions becomes crucial. Yet, inefficiencies persist due to disparate information systems and inadequate standards, impacting costs and operational integrity.
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.
You can download the full report below:
