3rd Ship Operating Cost Presentation Ship Operating Costs: Current and Future Trends A Ship Manager s View Alastair Evitt, General Manager, V.Ships Greece Wednesday 11 th December 2013 V.Ships 2013
What is Ship Management? Operational Management Business Ship Management translates market rate and days into profit Financial Commercial
What the Owner wants (1993). Zero Accidents to crew or vessel Look after everything without bothering the Owner Zero downtime planned or unplanned No bills Ship maintained to last for ever Fast vessels with no fuel consumption which are always in the right place for the best paying business Instant compliance with every new rule and regulation Robot crews that work 24 hrsa day and never need feeding, paying or leave and that can be trained by a modem link while they work Perfect performance to the requirements of the Owner s customer
2014 Future Requirements Partnership commercial, operational and technical Crewing Competence Technical Reliability Operational Efficiency Legislative Compliance Conclusion
Partnership There is no simple answer Team work with Owners is essential Sharing the long or even medium term goal
Crew Our on-board management team On average 60% of OPEX Biggest asset or greatest threat? Is training OPEX well spent? Is the industry prepared for the next Cycle? What are the implications of the MLC
Technical Reliability Getting the Basics Right.. Value your supply chain Beware of Non original spare parts Buy cheap buy twice Fix the illness not just the symptoms Are the available funds being spent where they will do the most good?
Getting The Basics Right (2) Some of the biggest gains are to be made from making sure that a ship runs as it was designed. Knowing where you stand NOW is essential Measurement Accurate measurement of Fuel Consumption Power Output Running Parameters
Getting the Basics Right (3) Machinery Management Good maintenance programmes Regular monitoring of running parameters. Proper management of plant
Fuel Management Loading Fuel; making sure you get what you pay for: Fitting of a CoreolisMass Flowmetercan reduce short delivery at bunkering down to 0.5%. (PAYBACK time as little as 6 months) Fuel Treatment Filtering, Purification and Combustion Consideroperating a fuel oil purifier efficiency programme to ensure the units are operating to maximum benefit. Reductions in sludge production and fuel loss
Getting the Basics Right (4) Hull Management The right hull treatment programme. Selecting the right coating. Inspection and cleaning.
Hull Performance It is commonly acknowledged that maintaining the ship s hull smooth and free of fouling gives the biggest potential saving in fuel consumption. Additional investment during a dry-dock in a comprehensive blast of the hull followed up by coating with a high quality anti fouling systemwill produce long term savings for the majority of vessels.
Hull Performance There are increasingly sophisticated products available which can be matched to the ships profile and owners aspirations to produce a cost effective performance improving proposal.
Propellers Some of the biggest gains are to be made from making sure that a ship runs as it was designed. Propeller Management Re-profiling propellers on older tonnage Proper repair in dock Regular Inspection and cleaning
Propellers During the gold rush of the mid 2000 s many propellers were not matched properly to hulls On older vessels the hull will become heavywith age and the propeller no longer matches. Main engine manufactures will work with Owners to re profile older propellers in dock or afloat.
Trim Optimisation Relatively minor changes in trim can give dramatic savings in fuel consumption A one-of investment of around 25k -30k Euro in a T/O package - depending on hull profile data availability. Payback on Leisure and Container vessels can be less than 1 year.
Trim Optimisation
Plant Management 1 Shaft or Turbo Alternator Usage Per Voyage 700 600 500 400 300 200 100 90 67 91 80 85 76 88 94 92 90 91 88 86 94 94 100 90 80 70 60 50 40 30 20 10 Alternator Running Hours Efficiency % 0 0 Total Voyage Hours Alternator Running Hours % Utilisation Min Utilisation Target
Plant Management 2 160 Generators Utilisation per Voyage 140 120 110% 110% 118% 110% 105% 104% 110% 104% 120% 116% 130% 129% 127% 134% 110% 100 80 60 40 20 0 Generator Running hrs/ Voyage Hours % Aux Engine Utilisation target
Working in the right zone Operating on or above the red line gives poor efficiency and causes engine damage. Hull and propeller cleaning and good maintenance management will avoid this.
Legislative Compliance Ballast Water Management Proposed European Union MVR legislation USA VGP 19 th December 2013 Californian Maximum Fuel Sulphur Content Received information in Monday and Tuesday this week
Shipping KPI Project Overview (What, when and how many) 1. 2100 vessels 2. 180 Companies 3. CDI using for their container vessels
Can you manage without measuring? Do you know:- how well you are performing? if you need to improve? if your competitors are performing better than you? where you need to improve? and Do you WANT to improve? Continuous Improvement If so, HOW? That which you don t measure You can t control That which you don t control You can t improve
Do we always see ourselves as we really are? Or as we would like to be?
Best Management Practice by use of KPI s is not difficult: http://www.intermanager.org Add your fleet to:- http://www.shipping-kpi.org
Summary and Close Get the basic right Run the vessel as designed or improve
and its not new Lord Kelvin (circa 1860) "To measure is to know. If you can not measure it, you can not improve it." Charles Darwin (circa 1860) It is not the strongest of the species that survives, nor the most intelligent, it is the one that is most adaptable to change
Ship Operating Costs: Current and Future Trends A Ship Manager s View Thank you for your attention V.Ships 2013
Ship Operating Costs: Current and Future Trends A Ship Manager s View Thank you for your attention V.Ships 2013