Voyage Optimization and How it Can Help Decarbonization

Voyage optimization has been a staple of ship routing for decades. However, the original principles behind the service, namely, the safety of crew, vessel, and cargo, have been complemented with the recent onset of a massive focus on decarbonization as set out by the IMO. These principles must be in the DNA of any company purporting to provide accurate and efficient route optimization services.

The emission reduction goals are clear and require a 55% reduction in CO2 emissions by 2030. This is undoubtedly an ambitious target and is certainly achievable if full use is made by the shipping industry to reduce CO2 emissions.

In this article, we will focus on how voyage optimization can greatly help owners and operators decarbonize their commercial shipping activities. The best argument for adopting a voyage optimization policy is that the decarbonization results are immediate, there is no investment needed and there are few alternatives that give such a great effect. Optimization actually starts before the vessel departs on the ballast leg of its voyage, and continues throughout the entirety of the ballast/laden passages.  
 
Pre-fixture of the Voyage

During the pre-fixture stage of a voyage, the charterer/freight trader needs to make accurate calculations to establish profit and loss, the Time Charter Equivalent (TCE). These calculations should include an accurate assessment of the expected Sea Margin. It also allows for the best estimate of the expected fuel consumption and a benchmark against which results can be measured. StormGeo can provide vessel and season specific Sea Margins for all global voyages allowing for the expected effect of the weather, sea, and current conditions. We can even help to assess total CO2 emissions during the pre-fixture stage for better environmental considerations.

Once a vessel is nominated for a particular cargo a voyage preplan is prepared, indicating the various route options available, given the specifics of the vessel and either the latest forecast or expected climatological average conditions if the sailing date is outwith the forecast date range. This preplan lets the operator actively engage in the routing decision to ensure the most efficient passage.

Once the choice of optimized route is made and communicated to all relevant parties, StormGeo will continue to optimize both the vessel’s capability in the conditions encountered and the optimum track to follow to ensure that capability is best harnessed.  
 
During the Sea Voyage

During the voyage, the optimum route is continuously updated according to the latest weather forecast, and any change in the recommendation is presented to the vessel.  In many cases, the optimum route can be to sail a longer distance route in more favorable weather conditions, saving both fuel and time. It is always a fine balance between distance, time, and consumption, with all these criteria directly affecting the vessel/voyage efficiency.

At StormGeo, we have web-based applications that monitor vessel emissions in real-time, allowing the operator to follow the vessel’s performance based on the most up-to-date and detailed data.

With any optimization service, shipping companies must inform their service provider what their requirement is relative to the desired outcome. Are they looking for the quickest passage or minimum consumption? How much control do they have over the crew onboard with regard to speed and consumption settings/capabilities?
 
Latest Strategy Focus on Decarbonization

Traditionally, vessels aim to maintain a constant speed, even in adverse weather. This burns fuel at an exponential rate due to the vessel's need to increase power output to maintain a constant speed. Despite the vessel's efforts, speed is often lost in the process. StormGeo developed and launched Strategic Power Routing, which is designed to ensure the ship’s power is delivered at a ‘constant power setting,’ thereby keeping fuel consumption constant. We achieve this by providing the vessel with daily RPM advice needed to achieve constant power in the encountered weather and current conditions and the forecast ahead. We have a team of experts continually monitoring each vessel to ensure the crew onboard follows our advice. Part of this communication process also involves determining when and how many auxiliary power units to have operational as we often see multiple units engaged when a single unit is sufficient given the expected load. Strategic Power Routing significantly contributes to reducing fuel consumption, and our figures indicate vessels under this service can easily attain a 3-5% fuel saving.

Also, optimal bunkering planning aids in decarbonization. It allows the operator to plan which ports and quantities the vessel should bunker to minimize any deviation and secure the best bunker prices. At StormGeo, we provide this service.

The focus on decarbonization must not come at the expense of the commercial optimization of the voyage. This is the ultimate goal of the operator and what performance is measured against. To maximize the commercial potential of the voyage, the correct speed and consumption combination needs to be chosen. Depending on the market, a slower speed with corresponding lower fuel consumption will often be a good choice, thereby lowering CO2 emissions. By considering all the variable costs, including time, the operator can easily choose which speed and consumption alternatives are best suited for the voyage.
 
Last but not least, the vessel must manage the arrival time at the port to tender a Notice of Readiness (NOR). Once accepted, the laytime starts to count. Still, with increasing delays in ports, there is a movement to avoid ’rushing to wait’ behavior, and operators are more willing to manage their RTA to avoid burning extra fuel at sea and then extra fuel while idling in port. This is also beneficial for the CII rating. Through our optimization tools, we can quickly provide our customers with tools to calculate which speed a vessel should sail at and what the corresponding consumption will be to make a particular and revised RTA. This behavior greatly reduces the carbon footprint for a voyage, and we expect to see more of this behavior in the near future in order to assist operators in decarbonizing their shipping activities.

In summary, voyage optimization offers immediate decarbonization effects, by continuously optimizing the route the vessel will sail, optimizing the vessel’s operation, providing effective bunkering options, and managing the commercial performance of the voyage. No single retrofit on a vessel can match the saving that voyage optimization can achieve.