Effectively managing charter party compliance across fleets is time consuming, painstaking and (usually) a complex quest to retrospectively evaluate performance. But does it have to be such a headache? Jacob Clausen, MD NAVTOR Denmark, believes there’s a simpler way forward.
Charter party compliance is, like shipping in general, constantly increasing in complexity.
Agreements are evolving, and will continue to do so, as IMO’s MEPC 76 technical and operational pollution prevention measures (Carbon Intensity Indicator and Energy Efficiency Existing Ship Index) roll out and charterers adapt contractual clauses to meet their own business and environmental targets… and those of customers.
For charterers and cargo owners it’s not simply a matter of having shipments delivered on time at specified costs, but rather a need to deliver details of exactly how they were transported, with full transparency and carbon intensity figures for every cargo.
A failure to do that risks real bottom-line impact, with complaints, claims and (potentially) contracts moving elsewhere. If you’re thinking this is a nightmare, you’re not alone.
But maybe it’s time to wake up… to performance.
Connect with control
Truly effective performance monitoring and optimisation unlocks huge business, as well as operational, benefits.
On a vessel-by-vessel and fleet wide basis an effective system allows you to reduce fuel consumption, decrease OPEX, cut emissions, meet environmental goals, and comply with regulations.
And for charter party (CP) compliance it’s a gamechanger.
Owners and operators face a common challenge of maintaining a real-time overview of exactly which vessels are performing according to set CP agreements. And if they don’t know which ones are straying outside safe margins then they can’t make timely corrections to rectify situations. At present, there’s a considerable time delay in communications between vessel crews and shore management and, as a result, a lack of control.
This is where a solution like NAVTOR’s NavFleet comes in.
Easy does it
NavFleet is an integrated platform that connects data from vessels, fleets, offices and an array of business-critical sources within a single, user-friendly application. It unites organisations to give a common situational awareness, allowing users to analyse individual voyages (both ongoing and historically) to check for compliance with predefined CP agreements, while delivering a complete fleet overview.
Crucially, data is dual-validated (both human and machine) to ensure optimal quality and delivered in real-time to enable corrective actions. Fleet dashboards provide “at a glance” overviews of how vessels are performing, with data relating to CP good weather definitions, performance warranties, speed of consumption, and more, handled automatically by the system.
What’s more, automated notifications inform vessel management teams when a vessel deviates from CP speed or consumption (under CP good weather definitions), meaning action can be taken where and when it’s needed to get ships back on the right side of compliance.
Transforming ability
In short, it’s simple. One integrated, automated system can handle all of the CP compliance needs of the fleet; keeping shore management connected with vessel crews, getting early indications of deviations, and make timely corrections to prevent facing future claims.
As agreements evolve, so does the system, with easy inputs helping it cut through the growing complexity for continual improvements and efficiency. For the owner it’s transformational, while for the charterer it provides validated proof that the ships they trust to deliver really do, in every way.
Effective performance monitoring and optimisation can be key to unlocking a more sustainable, compliant and profitable industry… as awareness grows I think we’ll all come to agreement on that.
Watch our webinar no. 10 -" NavFleet and Intelligent Charter Party Performance", where Arild Risholm Sæther and Jacob Clausen demonstrate NavFleets advanced functionality: