Digitalization in Shipping Tom Sundell VP Products, NAPA www.napa.fi
NAPA Solutions for Safe and Efficient Ship Operations NAPA A very short introduction to NAPA NAPA for safety and efficiency of the industry The Shipping Ecosystem and Data Transparency Multiple actors and complex contractual arrangement hides inefficiencies Increase transparency would benefit the whole logistics value chain the Data Exists! Data Driven Insight to Ship Operation for Better Performance Monitoring and optimizing voyage executions with help of IT and Data Utilizing operational data to get ships that fit their trade Digitalization and Safety Increased safety, predictability and traceability through data logging and sharing Integrates IT solutions onboard supporting status awareness 2
NAPA Software, Services and Data Analysis for the Maritime Industry 3
NAPA in Numbers 180 EMPLOYEES 12 COUNTRY OFFICES WORLDWIDE 95% OF SHIPS BUILT ANNUALLY DESIGNED BY NAPA USERS INSTALLATIONS ONBOARD 2000+ VESSELS 26 YEARS 2500+ NAVAL ARCHITECTS USE NAPA DAILY IN THEIR DESIGN WORK UP TO 20% SAVINGS IN FLEET OPERATIONS AND MAINTENANCE WITH NAPA 21 MILLION REVENUE IN 2015 4
Shipping Ecosystem and Data Transparency 5
Exhibit A: Charter-Party Contract Origin: charta partita Charter-Party Contract from 1727 A contract between the: Owner of the ship Charterer for the use of the ship Most central contract type in the industry still today 6
Shipping in the 1700 s Shipping in the 2000 s 10 000 000 000 tons of goods / year 7
Inefficient Ecosystem The current state of Marine and Shipping Ecosystem is very complex fragmented has parties with conflicting interest hides inefficiencies Source: Positioning Report Analysis of the current marine industry structure and a vision for a renewed marine industry ecosystem Åbo Akademi University 2015 REBUS Program 8
Conflict of Interests leads to Sub Optimization Ship operators Ship owners Service suppliers Classification society Shipyards Insurance providers Communication providers Customs Fuel suppliers Border control Charterers Traffic control Stevedores Equipment manufacturers Ports & agents Data analysts Weather services Flag state authorities Cargo owners Brokers Railway and truck operators Ship designer Environmental authorities Universities 9
Lack of Transparency Hurts the Industry Things like: Low asset utilization Low capacity utilization High number (19) of actors in the transportation chain Sea shipping seen as a black box Leads to: Excessive freight costs per cargo unit Excessive emissions per cargo unit Suboptimal competitive advantage of shipping Source: Positioning Report Revolutionizing short sea shipping A bo Akademi University 2015 REBUS Program 10
Example: Inefficiencies in Baltic short sea shipping Based on AIS and PortPlus notification data from 2013 & 2014 40 % 40 % 36 % Ships spend 40 % of their time in port! Vessels rush to port because of first come first served slot allocation system Ships sails 40 % of their time at sea in ballast because of lack of suitable cargo. As a result ships in Baltic use only 36 % of their time creating value to their customers! 11
Data Driven Insight to Ship Operation for Better Performance 12
Example: Rush to Wait System Inefficiencies E.g. port slot allocation system incentives ship to rush to que Monitoring ship performance makes this visible to stakeholders 13
Example: Rush to Wait System Inefficiencies E.g. port slot allocation system incentives ship to rush to que Monitoring ship performance makes this visible to stakeholders Optimized speeds and later arrival Delaying the arrival and optimizing the speed profile resulted for this case in: 13 % reduction in bunker costs 13 % reduction in CO2 emissions 14
Example: Monitoring Hull & Propeller Performance Ship owner: Pays for hull maintenance Pays performance penalty Cargo owner: Pays for fuel Does not have access to accurate reporting system 15
Monitoring Gives Insight to Real Conditions Mean draft Mean draft 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 Speed 1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.00 28672.69 0.00 19899.13 13651.33 0.00 0.00 0.00 0.00 3.00 1.0 0.0 1.0 2.0 0.0 0.0 0.0 0.0 4.00 0.00 14069.64 1899.00 24483.91 12553.02 0.00 0.00 0.00 4.00 0.0 1.0 2.0 1.0 1.0 0.0 0.0 0.0 5.00 0.00 0.00 10018.17 0.00 24909.73 0.00 0.00 0.00 5.00 0.0 0.0 1.0 0.0 1.0 0.0 0.0 0.0 6.00 0.00 0.00 0.00 16682.97 0.00 18434.28 0.00 0.00 6.00 0.0 0.0 0.0 4.0 0.0 1.0 0.0 0.0 7.00 0.00 0.00 26593.77 28325.67 26139.87 12101.68 0.00 0.00 7.00 0.0 0.0 1.0 1.0 1.0 1.0 0.0 0.0 8.00 0.00 0.00 15325.51 11747.83 0.00 0.00 0.00 0.00 8.00 0.0 0.0 2.0 3.0 0.0 0.0 0.0 0.0 9.00 0.00 0.00 0.00 0.00 51126.67 0.00 0.00 0.00 9.00 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 10.00 0.00 16434.52 0.00 14831.01 28642.94 0.00 0.00 0.00 10.00 0.0 1.0 0.0 1.0 2.0 0.0 0.0 0.0 11.00 0.00 0.00 0.00 0.00 0.00 17914.81 0.00 0.00 11.00 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0 12.00 0.00 0.00 26807.41 13897.74 18639.33 0.00 0.00 0.00 12.00 0.0 0.0 3.0 1.0 1.0 0.0 0.0 0.0 Speed 13.00 0.00 0.00 0.00 0.00 0.00 6530.38 1268.63 0.00 13.00 0.0 0.0 0.0 0.0 0.0 1.0 1.0 0.0 14.00 0.00 0.00 23509.59 17289.93 18860.09 21282.28 0.00 0.00 14.00 0.0 0.0 1.0 2.0 4.0 2.0 0.0 0.0 15.00 0.00 0.00 0.00 22900.95 22105.65 13595.68 0.00 0.00 15.00 0.0 0.0 0.0 4.0 2.0 1.0 0.0 0.0 16.00 0.00 0.00 0.00 26088.27 19494.71 22570.21 0.00 0.00 16.00 0.0 0.0 0.0 7.0 4.0 1.0 0.0 0.0 17.00 0.00 0.00 0.00 12446.99 32928.30 12317.75 0.00 0.00 17.00 0.0 0.0 0.0 1.0 8.9 9.9 0.0 0.0 18.00 0.00 0.00 23429.03 18269.73 29165.12 18399.72 5971.02 0.00 18.00 0.0 0.0 1.0 6.0 7.0 13.9 1.0 0.0 19.00 0.00 0.00 19748.09 22336.54 22595.81 22946.50 3289.11 0.00 19.00 0.0 0.0 1.0 9.9 11.9 3.0 1.0 0.0 20.00 0.00 0.00 28839.57 18170.27 29706.97 19255.23 14051.07 0.00 20.00 0.0 0.0 1.0 8.0 5.0 6.0 2.0 0.0 21.00 0.00 0.00 0.00 19837.84 17020.94 0.00 0.00 0.00 21.00 0.0 0.0 0.0 4.0 1.0 0.0 0.0 0.0 Design Point 22.00 0.00 0.00 0.00 16184.30 0.00 0.00 0.00 0.00 22.00 0.0 0.0 0.0 2.0 0.0 0.0 0.0 0.0 23.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 24.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 25.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 25.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Propulsion Power [kw] Time sailed 16
Using Data for Feedback for Optimal Design Design Real environment Real operation Hull form Performance estimation Shipbuilding Voyage Reporting Monitoring Data analysis Performance in real conditions Feedback 17
Does IT and the Digital Revolution Increase Safety? 18
Digital Revolution: Improving Safety? Increasing amount of data available from the ships: Loading condition data Logbook data Automation/machinery data Weather data Position Data If shared and made available this can be used to: New applications and services Communicate safety status to other stakeholders Developing new rules and regulations Increase Safety 19
Safer Shipping General Concept Proactive safety increase Reactive and Predictive Decision Support in an emergency EVACUATE or STAY ONBOARD LEARN & MEASURE VULNERABILITY DETECT & ANALYZE SEVERITY TIMESCALE & ESTIMATE SURVIVABILITY VULNERABILITY & STABILITY DAMAGE CONTROL & INCREASE STABILITY EMERGENCY SITUATION Within minutes 15-30minutes > 2 hours
Status Awareness for the Crew and other Stakeholder Proactive safety increase Reactive and Predictive Decision Support in an emergency EVACUATE or STAY ONBOARD LEARN & MEASURE VULNERABILITY DETECT & ANALYZE SEVERITY TIMESCALE & ESTIMATE SURVIVABILITY VULNERABILITY & STABILITY DAMAGE CONTROL & INCREASE STABILITY EMERGENCY SITUATION Within minutes 15-30minutes > 2 hours
Emergency room in action already today! 22
Summary How to disrupt world s biggest business? Monumental possibilities for increased efficiency exists Scattered reporting and paper-based logs still mainstream Conflict of interest and sub optimization increases inertia in the ecosystem IT and Data enablers for Safety and Efficiency in Shipping Open and transparent information will be the game changer (bringing shipping closer to a Perfect Market)! 23
Thank You Tom.Sundell@napa.fi Credits: FIMECC REBUS Towards Rational Business Practices Sub Project P2 Logistics Networks www.napa.fi