Fleet Performance Management and Benchmarking Against Peers



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MARITIME Fleet Performance Management and Benchmarking Against Peers using Big Data Theme: Smarter, Greener Technologies, Safer Systems Kaushik Seal, Business Development Leader, Maritime Advisory 24 April 2015 1 20 June 2014 SAFER, SMARTER, GREENER

2014 survey reveals high importance yet low achievement level of energy management in shipping Energy Management has become a competitive factor beyond compliance Many shipping companies have realized first savings, but far below expectations Ambitious targets can only be reached by measures beyond the obvious How much fuel reduction did you experience (estimate) since your company implemented energy mgmt.? 8% 8% 60% 18% 6% None < 1% 1 3% 4 10% > 10% You cannot improve what you do not manage. You cannot manage what you do not know Source: DNV GL - Maritime, Energy Management Study 2014 2

Industry leaders are focusing now on the 4th wave of energy efficiency improvement Reduce speed & do things better than before Applying new tools (trim, weather, engine monitoring) Improve ship design (retrofit) - Performance management - Voyage optimization - Collaboration New measures require analytics and change of existing behaviour! 3 January 27th, 2015

Performance management is on top a good starting point to decide which measures to take 1 2 3 4 Select and Setting the prioritise the Implement Review success baseline right measures e.g. PID e.g. Hull Cleaning Less resistance Performance Management e.g. Speed mgmt. Lower speed Performance Management e.g. Maintenance Less spares Performance Mgmt. Changed behaviour 4

There is a lot to be gained still in performance improvements (example smaller container vessels) Fuel oil consumption/nm during sea passage <1000 TEU +20% Market Average Best in Class Liner 1000-2000 TEU +17% Double digit difference in Fuel Oil Consumption (= CO2 emissions) between best in class to market average container vessel performance 2000-3000 TEU +30% 4000-5000 TEU +10% FOC/Nm 0.00 0.06 0.12 0.18 Benchmark against 546 selected vessels operated by MAERSK, CMA CGM, HANJIN, Hapag-Lloyd, OOCL, COSCO, NYK, MOL, HMM, Yang Ming, Evergreen Jan-Dec. 2013. 5

There is a lot to be gained still in performance improvements (example bulkers) Tons of fuel/nm mile during sea passage Capesize 0.095 0.128 +34% Best in class Market average Post Panamax 0.058 0.074 +28% Panamax 0.060 0.075 +26% Supramax Handysize 0.051 0.067 +31% 0.041 0.053 +30% Double digit difference in Fuel Oil Consumption (= CO2 emissions) between best in class to market average bulker performance

There is a lot to be gained still in performance improvements (example small tankers) Tons of fuel/nm during sea passage LR2 0.101 0.106 +5% Best in class Market average LR1 0.085 0.091 +7% MR Handysize 0.058 +22% 0.071 0.045 +13% 0.051 Double digit difference in Fuel Oil Consumption (= CO2 emissions) between best in class to market average tanker performance

The benefits of a good performance management system are threefold 1. Setting performance baseline and decide which measures to take for which parts of the fleet 2. Change behaviour of shore and vessel teams towards more efficient operations (sometimes against seafarers tradition ) 3. Demonstrate control and transparency to customers and other industry stakeholders 8

Which KPIs are most relevant for you? What is in your SEEMP? Major performance categories Voyage performance Engine & systems performance Example KPIs Operational modes Consumption Speed profile Weather condition Trim adherence Energy Efficiency Operational Indicator (EEOI) Emissions Consumption, SFOC, RPM, loads, pressures, running hours, production rates, temperatures at Main and Auxillary Engines Boiler Cooling water system Pressurized air system Lube oil system 9 Hull & Propeller performance Hull & propeller performance drop due to fouling Normalized speed power relationships Slip 9 Fuel performance Bunker statistics Sounding corrections after ports Fuel quality per port / supplier 9

DNV GL solution: ECO Insight will be more than just dashboards, it will give outside in view on your performance Public domain industry data AIS Data Fleet 1 Fuel Data Fleet 2 Vessel Data Fleet 3 Weather Data Fleet 4 Operations data from customers vessels Comprehensive view on fleet performance (voyage, engine & system, hull & propeller) Enriched with additional industry data: weather, fuel-quality, satellite data, Benchmarks against own fleet and market averages (e.g. world container ship fleet 50-100kDWT) Advanced Analytics e.g. for hull degradation using ECO Assistant CFD models My dashboard function to customize user specific views and analysis trails Optional: Analyst workbench for creating own analysis and reports Optional: Advice from DNVGL specialists 10

AIS based benchmarking uses more than just AIS data Typical AIS market offerings DNV GL approach AIS Geo objects Ship register AIS Weather Consumption Opex Visualization of ship tracks (incl. berths) and vessel related data Speed and draft profiles over time Increase performance Audit/monitor own operations Benchmark operations against market segment Improve business decisions building upon deep market insight 11

The outside-in view with external data help you to make the right decisions AIS benchmarks Speed: compare your speed mgmt. with market segment Operational profile: see optimization potential in port stay times or in waiting times FOC: See fuel efficiency improvement potential against market segment Satellite weather Weather: Compare with reported weather and identify overstating of bad weather Fuel samples Fuel quality: Identify performance gaps due to actual fuel quality Fuel benchmarks: Find ports / suppliers with high fuel quality track record 12

Performance management is different from tracking, but both can complement each other very well Analytics with historic data (>1 day old) Allowing for more structural questions why vessel performs worse than others Using complex analytics and normalizations e.g. for hull degradation Close to real time display of vessel position and speed Allowing for intervention on the voyage 13

Most advanced hull degradation on the market reduces uncertainties on hull fouling Hull fouling adds resistance to the hull and is typically the residual effect on performance (after everything else is explained) World fleet is sailing with up to 30% added resistance on average due to hull fouling, which translates to apx. 20% surplus fuel consumption Fouling depends on many factors, an advanced computation is needed to assess when a next cleaning makes sense Vessels measured power corrected by by wind, sea state, swell and viscous effects Power Rating (in %) Vessel required power at relevant operating conditions acc. to vessel CFD model Normalization to the same speed, draft, trim 14

24/7 access anytime, anywhere without special requirements enables undisrupted performance management worldwide ECO Insight web access Capabilities Access ECO Insight anytime, anywhere through your browser Assign users with specific access rights, such as viewing of dashboards, system admin etc. within your company 15

Example: Dashboards always compare vessel group and dive deep into a single vessel in the same view 16

Example: Reported values are compared against vessel group, external benchmark and baseline values 17

Example: Flexible and quick filter mechanisms allow each user to perform fast analysis and reporting Select vessels to include in analysis Select single vessel to analyze vs. selected group Set analysis time period Definition of vessel groups to benchmark against Set time period for comparison (can different from analysis time period to allow for e.g., last year comparisons) Select filters on Operational modes Voyages Weather conditions ECO Insight 18

Examples: Helping the crew to report in a simple manner Guiding the crew what to fill out ROBs always visible 19

Examples: and ensuring proper data quality onboard Plausibility checks onboard Only fuel that has been bunkered can be consumed 20

Example: Reports can be corrected onshore given sufficient user rights Edit departure report from the vessel onshore 21

A more complex integration case including weather routing and automated systems provider Onboard solution Enterprise solutions Manual data recording of event data Ship specific plausibility checks Navigator Insight onboard Automated data collection Automated data recording of snapshot data Onboard decision support Onshore solution Automatic log abstracts Data mgmt. with config. e- mail push services Navigator Insight onshore Onshore snapshot data ECO Insight portal Complete KPI dashboard AIS based benchmarking Hull degradation analytics Ad hoc analysis workbench Weather routing Weather routing software for route planning Operators workbench Fleet tracking Speed / position / direction monitoring 22

Taking the DNV GL Performance Management offering is the fastest track for a leading solution Steps Contract signed NI Server Set up Kick Off Workshop Weeks Master data collection & entry Onboard version configuration & distribution Onboard activation Opt.: historic data migration to EI dashboards EI Dashboard activation Office training and go live 1 2 3 4 5 6 7 8 Project logic Kick off workshop will give system overview and who does what until when in the coming weeks Master data are entered into server from shipping company In parallel the board version can be send to the vessels If both done, the board versions can be activated Dashboards will only be activated after data collection works Historic data migration as optional step Office training of key users will mark official go live NI: data collection system Navigator Insight, EI: fleet performance portal ECO Insight 23

Summary: DNV GL provides the fastest way to an industry leading performance management Speed Low CAPEX Benchmarking Advanced Analytics Predefined, industry best practice dashboards Hosted web based portal with a user friendly layout Easy to roll out onboard solution Use the existing processes in your shipping company No additional IT or hardware investment onboard Flexible subscription based pricing Own vessels, vessel groups, fleet User community performance data AIS data from the world fleet Highly precise ship model with CFD computations Enabling viable hull fouling prediction Performance Advice Regular analysis, tailored commenting, deep dive into root-causes, decision making support By DNV GL s technical staff, counter checked 24

Thanks for your attention Kaushik Seal kaushik.seal@dnvgl.com +65 97106352 www.dnvgl.com SAFER, SMARTER, GREENER 25