ONE FLEET SOLUTION Combining noon reports with automated data ORKA SUMMIT September 2015 15 September 2015 1
AGENDA Introduction to Nordic Tankers Motivation for Performance Management in Nordic Tankers and the challenges with our fleet Our one fleet solution for performance monitoring Challenges, lessons learned and way forward 15 September 2015 2
NORDIC TANKERS - HISTORY WITH TRADITION FOR CONSOLIDATION 1963 Establishment of Herning Shipping by the Lysgaard family to supply their Uno-X gas stations franchise in Denmark 1984 K/S Difko XLVII established, which is later renamed Nordic Tankers A/S 1994 Copenhagen Tankers established by Wonsild & Søn 2005 Clipper Group acquires Wonsild Tankers and the rest of Copenhagen Tankers 2007 Nordic Tankers is listed on the Copenhagen Stock Exchange 2010 Clipper Group sells its tanker activities to Nordic Tankers A/S 2011 Triton acquires Herning Shipping 2012 2013 2014 Triton acquires the chemical tanker activities of Nordic Tankers, which is combined with Herning Shipping to create the leading chemical tanker operator with a total fleet of close to 120 vessels Nordic Tankers acquire two marineline coated 8,000 Dwt and four stainless steel 4,000 Dwt chemical tankers for the European Short Sea and West Africa Trades Nordic Tankers acquire one 6,000 Dwt stainless steel chemical tanker for the Short Sea Trade and three 14-20,000 Dwt stainless steel chemical tankers for the Inter-Americas and the Transatlantic Trades. 3
MOTIVATION FOR PERFORMANCE MONITORING IN NORDIC TANKERS Fuel efficiency Baselines Saving Initiatives Around 40% of Nordic Tanker s cost comes from bunker consumption Company wide responsibility chartering, operations, technical and the vessels To save fuel we first need to know how are we doing by collecting data from all vessels in a structured way A common reporting platform is needed for the entire fleet Different vessels in different trades have different needs for improving fuel efficiency Data needs to be collected from many different aspects of the operations of the ship Our Needs A performance monitoring tool that can encapsulate our entire fleet, allows us to benchmark our vessels and helps identify areas for improvement 15 September 2015 4
MOTIVATION FOR PERFORMANCE MONITORING IN NORDIC TANKERS You can t optimize what you cannot measure Manually or automated 15 September 2015 5
COMPLEX FLEET COMPOSITION 68 VESSELS Tanker Pools and commercial management (23) Nordic Tankers commercial management (19) Herning Shipping commercial management (26) Nordic Tankers owned vessels (17) Herning Shipping owned vessels (17) Bare boat vessels (4) Nordic Tankers TC vessels (2) Herning Shipping TC (8) Third party vessels (7) Tanker pool vessels (13) Technical management (23 + 19) 15 September 2015 6
NORDIC TANKERS SHIP TYPES Deep sea vessels 16k 22k tons dwt Daily consumption between 10 and 18 mt per day Cargo and tank operations consumption up to 5 mt per day Not many sister vessels Short sea vessels 4.5k 11k tons dwt Daily consumption between 5 and 11 mt per day Cargo and tank operations consumption up to 3 mt per day Not many sister vessels Even smaller vessels 3.5k tons dwt or less Installed Maine Engine power: 2040 kw Electrical load for 24 hours about 500 kwh 15 September 2015 7
NORDIC TANKERS CORE TRADE LANES AND AREAS 8
NORDIC TANKERS FLEET LOCATION AND SAILING SPEEDS 15 September 2015 9
SO LET S RECAP We need a performance system to optimize a fleet that: Spends lots of time in port When the vessels sail, their speed is around 12 knots Their steaming consumption is in average around 12 mt/day Not many sister vessels to compare Many vessels trading on the spot market A complex matrix of owned, technical managed, time chartered, commercial managed and pools Expect the unexpected with regards to measuring equipment onboard Who pays for the fuel and who should drive fuel efficiency may change form ship to ship And to top if off, fuel prices are at very low levels these day making business cases a little more challenging What kind of performance system can be used for this fleet? 15 September 2015 10
VISION FOR VESSEL PERFORMANCE MANAGEMENT Nordic Tankers fleet wide solution same tool for owned, chartered and poor vessels One fleet One tool Adaptive Allows for noon reporting and autologging of data Adjusts to a wide range of available equipment onboard Allows for integration of data with IMOS Same performance figures across technical and commercial systems Integrated with IMOS Enabler for awareness Creates awareness onboard and ashore with regards to fuel efficiency consumption Easy roll out to all vessels Intuitive and user friendly Data validation Efficient communication with the office Performance monitoring onboard Time efficient Allows for Minimal data collection onboard and reduced reporting Web based access to review the vessel s performance on a daily basis Daily warnings and triggers for offperformance Voyage summary statistics Performance management Performance optimization Hull and propeller efficiency evaluation Engine performance monitoring Voyage execution assessment Onboard energy management Supports benefit tracking of all fuel efficiency initiatives in Nordic Tankers Benefit Tracking Asset management Supports Nordic Tankers in pool performance requirements Serves as knowledge base for fleet portfolio optimization and new buildings 15 September 2015 11
THE HYBRID PERFORMANCE SYSTEM FOR NORDIC TANKERS A hybrid solution of two systems has been chosen as the performance system for the Nordic Tankers fleet Veslink will be used to collect daily status reports from the vessels and share them wit IMOS and Marorka, which will be used to visualize and analyze the performance of the fleet The main advantages of this hybrid solution are the following: 1. One report from the vessels to the office 2. Entire fleet reporting in one system, including vessels with real time logging of data. 3. Web based tools: no need to install any software onboard the vessels or in the office 4. As the fleet grows we can choose between manual or automated reporting of data 15 September 2015 12
DATA FLOW FROM VESLINK TO IMOS AND MARORKA ONLINE NORDIC TANKERS OFFICE HTML form APP IMOS VESLINK The extended unofficial performance department Vessel OPERATOR API Marorka Online Applied Weather Technology AIS data (future) Etc 15 September 2015 13
FOCUS ON MINIMIZING REPORTING ONBOARD AND ANALYSIS IN THE OFFICE Veslink reporting will enable Nordic Tankers to share information across all Nordic Tankers systems and the report will be used for: Daily communication with the vessel operators Daily updates to our voyage manager tool (IMOS) Daily report for the performance system (Marorka) Position report to weather routing company (mostly Deep sea vessels) Marorka Online will combine the automated data and Veslink reports from all vessels and voyages so we can prepare the following reports in the office: Voyage summary reports Monthly fuel efficiency reports including hull and engine efficiency calculations Updated current performance fuel tables for all vessels Updated loading, discharge, cargo heating and tank cleaning daily consumption for all vessels for chartering department to use when preparing budget estimates Yearly CO2 emissions report to EU and IMO (soon to be mandatory) Position map with the position of each vessel, current voyage track and planned route 15 September 2015 14
FOCUS ON A QUICK ROLL OUT TO THE ENTIRE FLEET Marorka Online starts receiving reports from one test vessel Veslink reporting starts on 5 test vessels Veslink report sent to Marorka for development of the importing tool Marorka online includes the 2 vessels equipped with Marorka Onboard Full roll out to entire fleet (66 vessels) 2 nd round of vessels activated in Veslink reporting (40 vessels) 1 st round of vessels activated in Veslink reporting (18 vessels) Final Veslink report template sent to Marorka for development 15 September 2015 15
MARORKA ONLINE COMBINING MANUAL AND AUTOMATED REPORTS 15 September 2015 16
MARORKA ONLINE COMBINING MANUAL AND AUTOMATED REPORTS 15 September 2015 17
MARORKA ONLINE COMBINING MANUAL AND AUTOMATED REPORTS 15 September 2015 18
INTEGRATING ALL SYSTEMS CAN ALSO BE CHALLENGING The frequency of reports for the commercial tools don t necessarily match the needs from the technical tools Operators are learning a new side of the vessels Connecting voyages to share data between Veslink and Marorka Approving reports on time And all the remaining issues from typical noon manual reporting 15 September 2015 19
Thank you 15 September 2015 20