Unpaid time is another issue that puts unnecessary financial strain on shipping companies. Put simply, unpaid time is money wasted. When it comes to the port call process, often there is a discrepancy between what is predicted to happen and what actually happens. For instance, a ship could arrive at the port a little earlier or later than expected due to weather conditions and find that there is no berth to dock at. The ship then ends up idling outside the terminal, wasting fuel and emissions and not getting paid for its time. Or the vessel could end up staying longer in port due to unplanned downtime.
This is a huge pain point for financial leaders. One CFO told Thetius, “Incorrectly estimating or assuming that there’s going to be a designated time spent in port, could make the difference between a profitable voyage or a loss-making voyage.” The Statement of Facts (SoF) is a key document in a ship’s port call. This traditionally paper-based record details and timestamps every activity of the vessel during its time at the port. It serves as a foundational document for establishing facts in matters of demurrage and despatch.
Conventionally, the SoF is filled out by hand and then sent as a PDF attachment via email to the concerned parties. However, this method of recording and sharing information is not only inefficient but also susceptible to human error. The lack of a standardised format for the SoF also tends to result in each involved party producing their own version of the document. This leads to significant variations in the documents across different parties.
Commercial operators of dry bulk tonnage require port data (cost, restrictions, turnaround times, insights), such as that available in Marcura’s PortLog, for the purpose of producing higher-quality voyage estimates. Having access to port data via a digital platform enables users to produce voyage estimates that price freight faster, without having to wait for agents or having to refer exclusively to historical data or tacit knowledge.
PortLog leverages the world’s largest FDA-based port cost database to provide cost benchmarks for the purpose of voyage estimation. Uniquely, PortLog Pro simulates the laytime impact of a given set of CP terms for a voyage estimate, allowing the user to directly estimate the time covered and not covered by demurrage (paid vs. unpaid time) for a prospective voyage, based on the port call ETA and seasonal impact.
Instantly generated and higher-quality voyage estimates enable chartering managers and freight traders to more effectively evaluate potential voyage fixtures against options (including walking away from business), leading to better freight trading decisions and more profitable fixture outcomes. By having access to real-time accurate information about vessels and port/terminal restrictions, the changing weather conditions, and other factors, the shipping line avoids overstays, reduces financial and reputational risk, and minimises fuel burn and emissions.
For a more detailed insight and understanding of the areas in this article, please refer to our latest thought leadership report in partnership with Marcura, Navigating New Financial Seas. This comprehensive guide demonstrates how digital solutions can optimise shipping operations from the pre and post-voyage fixture stages, through to the voyage itself, to ensure financial success. The full report can be downloaded here.
