Carrier operators are recently shaken up by significant developments involving one of the world’s largest oil suppliers. The shock comes after Denmark-based oil supplier OW Bunker has filed for bankruptcy this year, citing up to $750 million in debt due to alleged fraud. Analysts say this will spark a domino effect as carrier managers are hard-pressed to find alternative suppliers and make up for exposed amounts. Increases in the market price of fuel are also feared. This spells only tough times ahead for many carrier operators, especially those without shipping management software.
It is essential in the maritime services sector to adopt cost-efficient ways to stay afloat in such a volatile industry. It is volatile in the sense that it experiences numerous events that challenge profitability, such as OW Bunker’s filing for bankruptcy. Such scenario has prompted an increase in the demand for effective marine software solutions.
However, companies that already have integrated shipping management software are well-prepared to meet such challenges and shipping software companies have already churned out a variety of cost-saving solutions that profess better management of bunker consumption regardless of various scenarios.
Prior to the development of integrated shipping software, carriers relied on structural modifications to render their vessels more fuel efficient. For instance, modified fins can be considered for better speed regulation. The downside to this is that modification costs a fortune and takes a long time to install. Modern shipping on the other hand relies on digitizing speed calculation and management through intelligent voyage calculation. The system automatically estimates and determines ideal vessel speeds. It makes complex calculations that can accurately identify fuel-efficient speeds without compromising on-time deliveries, in a sense leading to bunker savings.
Other factors such as weather conditions and technical failures also pose risks to effective fuel consumption. Operators are powerless with regards to these, which is why they need a shipping software system that mitigates the effects of such scenarios. An intelligent voyage calculation system can make precise estimates as to current position and voyage duration. It then recommends a wide-range of actions that the crew can undertake to keep fuel intake within ideal limits while minimizing, if not eliminating, delivery delays.
Marine software solutions also allow for effective fuel management. There are software options that feature accurate fuel usage estimates using sophisticated operations. The software determines the actual consumption needs of the vessel, singling out the “cappuccino effect” which usually happens when filling up the vessel’s engine. With sophisticated bunker management software, monitoring bunker activities can work like a breeze. Carriers can breathe a sigh of relief knowing that they are consuming bunker volumes actually needed for particular voyages. Imagine the savings it entails!
Commercial shipping management has come a long way. From making manual estimates on bunker consumption, carrier operators now use marine software solutions to face a variety of challenges to their revenue generation. Despite difficult times ahead for the bunker fuel market, carrier operators can continue making money through automated fuel management processes.