Ships are an essential part of every logistics chain, and nearly every product we use daily has undergone transport by ship at some point in its lifecycle. The recent incident involving the ‘Ever Given’ in the Suez Canal clearly demonstrated the impact that a disruption in this chain can have on the global availability of products.
Variable costs pose a challenge for shipowners and operators. Even when using a simple inland vessel, operational costs (Opex) can quickly amount to between €3,000 and €5,000 per day. For seagoing vessels, these costs can rise to €10,000 per day, and for specialised vessels, such as those used for dredging or offshore activities, Opex can even range from €50,000 to €150,000 per day. Unforeseen downtime can therefore involve considerable costs, especially since lost revenue must be factored in alongside operational expenses.
Between 20% and 40% of a ship's operational costs can be attributed to fuel, which is highly dependent on geopolitical circumstances. Moreover, from next year onwards, shipping companies will not only have to bear fuel costs but also CO2 costs, which represent an additional variable expense. At the time of writing, the cost per tonne of CO2 is €80, but this price can fluctuate significantly. This means that shipping companies may have to pay up to €1,000,000 per year per ship in additional costs. (More information can be found at: [link to the source of the information]).
To gain control over their operations and safeguard profitability, more and more shipowners and operators are looking for ways to better assess risks, reduce costs and improve operational efficiency. Although many operations still rely on human expertise and manual monitoring of specific Key Performance Indicators (KPIs), the importance of data loggers is becoming increasingly clear. These data loggers can provide valuable data for a better understanding of operational performance.
For many traditional shipping companies, a data-driven approach may initially seem like a major step. However, much of the required data is often already available within these companies' existing systems and can be unlocked with the right infrastructure. This is where Smart Vessel Optimizer comes into play. By installing a Pharos data logger on board, data can be sent to shore in a structured manner and converted into valuable information. This enables companies to make decisions based on a wider range of information sources, which not only benefits internal decision-making but also optimises collaboration with suppliers and customers.
Teams using Smart Vessel Optimizer typically see various positive results within six months. For new-build projects, detailed operational profiles of vessels are created, leading to smarter technical choices. In the event of malfunctions, problems can be resolved up to 40% faster, and inland shipping companies can carry more cargo per trip on average. In addition, HSE compliance can be ensured more efficiently and operational planning can be improved. Claims and billing disputes are settled more quickly, with some insurers even offering a discount on the excess when SVO is installed.
We are in an exciting time in which smart decision-making can play a crucial role in the maritime value chain. If your manufacturing company is also looking for a smart solution, click here to take the first step.