Digital Transformation in Commercial Shipping: Charterers
This article examines recent progress and initiatives by the shipping industry to meet new IMO targets and provides Signal Ocean Platform data on emissions developments and trends.
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This article is Part III of our three part series which considers the ways Commercial Operators, Shipbrokers, and Charterers utilize The Signal Ocean Platform to improve their performance. Part I covers Commercial Operators and Part II addresses Brokers.
Charterers, as controllers of the world’s commodities, need to be continuously aware of market conditions in order to assess the ideal time to book transportation for their cargoes. Α charterer needs actionable market insights to understand and anticipate future vessel supply and demand.
Within this three-party marketplace (composed of Commercial Operators, Brokers, and Charterers), Charterers are often the players with the most market data. The challenge charterers face is assimilating market knowledge from disparate sources of data including their own, that of their brokers, shipowners, and other sources.
Chartering is becoming more efficient thanks to the advent of digital technologies such as The Signal Ocean Platform which leverages big data, private shipping data and artificial intelligence (AI) to uncover meaningful industry trends and provides a unique market view to charterers.
In this article, we examine how charterers can leverage The Signal Ocean Platform to make chartering decisions.
A view of the shipping market unique to each charterer
What is unique about Signal Ocean is that it has been designed to respect the fact that different companies are going to have access to different information. Some companies, as a result of their particular trade patterns and cargoes, are naturally better informed on activities in certain geographical areas compared than others.
The Signal Ocean chartering software renders a market view that is unique to each subscriber based on the data that the particular subscriber has elected to forward into the system. This is stored in a private, Secure Data Vault.
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Optimizing the timing to go to market
The Supply Trend Report (pictured below) can be used to quickly identify market dynamics, including forward vessel supply. Charterers can use this Report to identify the right time to come to the market with their future cargoes.
Here is a the Supply Trend Report for VLCCs in Ras Tanura versus the VLCC AG-Far East market rates.
This report is especially powerful when used in combination with the Fixture Counts Report for the same region and vessel class (pictured below). Here we see VLCC Fixture counts for 2020 and 2019, broken down into months and decades.
The Fixture Count Dashboard shows VLCC Fixtures by region for 2020 and 2019. Here we see Fixtures per month and per decade, organized by region, for Aframax vessels.
Real-time view of a vessel under your charter
Use the Signal Ocean chartering software to quickly check the current commercial operation of a vessel. You can see whether the vessel has berthed and check her distance relative to a port. In addition to enabling Charterers to assess vessel availability, the chartering platform can also be used to provide visibility into whether cargoes load on the desired date and safely reach the required destination within the specified time frame. The Ports Dashboard can be used to provide a detailed, near-real-time view of vessel activity.
Using the Ports Dashboard, you can see whether a vessel has berthed and what operation she is currently doing.
Before coming to market and during a voyage, The Signal Ocean Platform enables charterers to spot both high-level market dynamics (including changes in vessel supply and freight rates) and granular information about vessel movements and current operations, down to the jetty-level. Using Signal Ocean allows charterers to stay informed of market trends and, as a result, make optimal chartering decisions for their business.
Creating a sustainable world requires us to embark on a journey towards a zero emission future, where every step is a commitment to preserve our planet for future generations.
Albert Greenway
Environmental Scientist, Sustainability Expert
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Increased Use of Renewable Energy:
Shipping companies are embracing renewable energy sources to power onboard systems and reduce emissions during port operations. Solar panels and wind turbines are being installed on vessels to generate clean energy, reducing reliance on auxiliary engines, and cutting down emissions. Shore power facilities in ports allow ships to connect to the electrical grid, eliminating the need for onboard generators while docked.
Collaboration and Industry Partnerships:
Recognizing that addressing emissions requires collective action, shipping companies, governments, and organizations have formed partnerships and collaborations. These initiatives focus on research and development, sharing best practices, and promoting knowledge transfer. Joint projects aim to develop and deploy innovative technologies, improve infrastructure, and create a supportive regulatory framework to accelerate the industry's transition towards a greener future. The Zero Emission Shipping - Mission Innovation.
To pave the way for a greener future in shipping, the availability of alternative fuels plays a vital role in their widespread adoption. However, this availability is influenced by factors such as port infrastructure, local regulations, and government policies. As the demand for cleaner fuels in shipping rises and environmental regulations become more stringent, efforts are underway to improve the accessibility of these fuels through infrastructure development, collaborations, and investments in production facilities.
Liquefied Natural Gas (LNG) infrastructure has seen significant growth in recent years, resulting in more LNG bunkering facilities and LNG-powered vessels. Nonetheless, the availability of LNG as a marine fuel can still vary depending on the region. To ensure consistent availability worldwide, there is a need for further development of LNG supply chains and infrastructure. For biofuels, their availability hinges on production capacity and the availability of feedstock. Although biofuels are being produced and utilized in various sectors, their availability as a marine fuel remains limited. Scaling up biofuel production and establishing robust supply chains are imperative to ensure wider availability within the shipping industry.Hydrogen, as a fuel for maritime applications, is still in the early stages of infrastructure development. While some hydrogen vessels have been tested or introduced in the first quarter of last year, the infrastructure required for hydrogen production and distribution needs further advancement.
Ammonia, as a marine fuel, currently faces limitations in availability. The production, storage, and handling infrastructure for ammonia need further development to support its widespread use in the shipping industry.Methanol, on the other hand, is already a commercially available fuel and has been used as a blend with conventional fuels in some ships. However, its availability as a standalone marine fuel can still be limited in certain regions. Bureau Veritas in October 2022 published a White Paper for the Alternative Fuels Outlook. This white paper provides a comprehensive overview of alternative fuels for the shipping industry, taking into account key factors such as technological maturity, availability, safety, emissions, and regulations.
Creating a sustainable world requires us to embark on a journey towards a zero emission future, where every step is a commitment to preserve our planet for future generations.
Albert Greenway
Environmental Scientist, Sustainability Expert
Increased Use of Renewable Energy:
Shipping companies are embracing renewable energy sources to power onboard systems and reduce emissions during port operations. Solar panels and wind turbines are being installed on vessels to generate clean energy, reducing reliance on auxiliary engines, and cutting down emissions. Shore power facilities in ports allow ships to connect to the electrical grid, eliminating the need for onboard generators while docked.
Collaboration and Industry Partnerships:
Recognizing that addressing emissions requires collective action, shipping companies, governments, and organizations have formed partnerships and collaborations. These initiatives focus on research and development, sharing best practices, and promoting knowledge transfer. Joint projects aim to develop and deploy innovative technologies, improve infrastructure, and create a supportive regulatory framework to accelerate the industry's transition towards a greener future. The Zero Emission Shipping - Mission Innovation.
To pave the way for a greener future in shipping, the availability of alternative fuels plays a vital role in their widespread adoption. However, this availability is influenced by factors such as port infrastructure, local regulations, and government policies. As the demand for cleaner fuels in shipping rises and environmental regulations become more stringent, efforts are underway to improve the accessibility of these fuels through infrastructure development, collaborations, and investments in production facilities.
Liquefied Natural Gas (LNG) infrastructure has seen significant growth in recent years, resulting in more LNG bunkering facilities and LNG-powered vessels. Nonetheless, the availability of LNG as a marine fuel can still vary depending on the region. To ensure consistent availability worldwide, there is a need for further development of LNG supply chains and infrastructure. For biofuels, their availability hinges on production capacity and the availability of feedstock. Although biofuels are being produced and utilized in various sectors, their availability as a marine fuel remains limited. Scaling up biofuel production and establishing robust supply chains are imperative to ensure wider availability within the shipping industry.Hydrogen, as a fuel for maritime applications, is still in the early stages of infrastructure development. While some hydrogen vessels have been tested or introduced in the first quarter of last year, the infrastructure required for hydrogen production and distribution needs further advancement.
Ammonia, as a marine fuel, currently faces limitations in availability. The production, storage, and handling infrastructure for ammonia need further development to support its widespread use in the shipping industry.Methanol, on the other hand, is already a commercially available fuel and has been used as a blend with conventional fuels in some ships. However, its availability as a standalone marine fuel can still be limited in certain regions. Bureau Veritas in October 2022 published a White Paper for the Alternative Fuels Outlook. This white paper provides a comprehensive overview of alternative fuels for the shipping industry, taking into account key factors such as technological maturity, availability, safety, emissions, and regulations.
Digital Transformation in Commercial Shipping: Charterers
Posted by
The Signal Group
|
September 1, 2020
This article is Part III of our three part series which considers the ways Commercial Operators, Shipbrokers, and Charterers utilize The Signal Ocean Platform to improve their performance. Part I covers Commercial Operators and Part II addresses Brokers.
Charterers, as controllers of the world’s commodities, need to be continuously aware of market conditions in order to assess the ideal time to book transportation for their cargoes. Α charterer needs actionable market insights to understand and anticipate future vessel supply and demand.
Within this three-party marketplace (composed of Commercial Operators, Brokers, and Charterers), Charterers are often the players with the most market data. The challenge charterers face is assimilating market knowledge from disparate sources of data including their own, that of their brokers, shipowners, and other sources.
Chartering is becoming more efficient thanks to the advent of digital technologies such as The Signal Ocean Platform which leverages big data, private shipping data and artificial intelligence (AI) to uncover meaningful industry trends and provides a unique market view to charterers.
In this article, we examine how charterers can leverage The Signal Ocean Platform to make chartering decisions.
A view of the shipping market unique to each charterer
What is unique about Signal Ocean is that it has been designed to respect the fact that different companies are going to have access to different information. Some companies, as a result of their particular trade patterns and cargoes, are naturally better informed on activities in certain geographical areas compared than others.
The Signal Ocean chartering software renders a market view that is unique to each subscriber based on the data that the particular subscriber has elected to forward into the system. This is stored in a private, Secure Data Vault.
[[quote-one_wrapper]]
Optimizing the timing to go to market
The Supply Trend Report (pictured below) can be used to quickly identify market dynamics, including forward vessel supply. Charterers can use this Report to identify the right time to come to the market with their future cargoes.
Here is a the Supply Trend Report for VLCCs in Ras Tanura versus the VLCC AG-Far East market rates.
This report is especially powerful when used in combination with the Fixture Counts Report for the same region and vessel class (pictured below). Here we see VLCC Fixture counts for 2020 and 2019, broken down into months and decades.
The Fixture Count Dashboard shows VLCC Fixtures by region for 2020 and 2019. Here we see Fixtures per month and per decade, organized by region, for Aframax vessels.
Real-time view of a vessel under your charter
Use the Signal Ocean chartering software to quickly check the current commercial operation of a vessel. You can see whether the vessel has berthed and check her distance relative to a port. In addition to enabling Charterers to assess vessel availability, the chartering platform can also be used to provide visibility into whether cargoes load on the desired date and safely reach the required destination within the specified time frame. The Ports Dashboard can be used to provide a detailed, near-real-time view of vessel activity.
Using the Ports Dashboard, you can see whether a vessel has berthed and what operation she is currently doing.
Before coming to market and during a voyage, The Signal Ocean Platform enables charterers to spot both high-level market dynamics (including changes in vessel supply and freight rates) and granular information about vessel movements and current operations, down to the jetty-level. Using Signal Ocean allows charterers to stay informed of market trends and, as a result, make optimal chartering decisions for their business.
