Op-Ed: Fleet digitalization can do more than save fuel

Arnaud Dianoux

By Arnaud Dianoux, founder and managing director, Opsealog

The scope of reporting in the maritime sector is continuing to expand, going beyond new environmental regulations to encompass growing ESG pressures from a broader range of stakeholders, from investors and insurers to end customers. With this in mind, companies should look toward the OSV sector to see how data can optimize aspects of operations beyond fuel savings.

The potential of fleet digitalization to boost ships’ fuel efficiency is well established. By collecting, integrating, and analyzing data on their fleet, companies can uncover new insights into what can be improved to save fuel and reduce greenhouse gas emissions. The impact of data can range from unlocking immediate operational efficiency gains for individual vessels to identifying fleet-wide problems and assessing the business case for investments, including retrofit opportunities.

A great example is ADNOC Logistics & Services, which achieved a 12% reduction in fuel consumption and CO2 emissions as enhanced fleet digitalization helped identify opportunities to improve vessel utilization, idle times and standby practices.

Not only will this shift towards data-driven fuel efficiency continue, but digitalization will also embed itself in more aspects of operations going forward. The offshore marine industry provides an interesting case in point. It shows how data-driven insights will expand beyond fuel consumption and emissions reductions to also help optimize fleet utilization and management and even support crew management and the respect of charter party agreements. And this list is only likely to grow.

New areas for data-driven optimization

In practice, we’re already seeing charterers of offshore support vessels (OSVs) using digital systems to ensure that the right vessel type and size is assigned to the right task, and to identify specific needs for the next vessel to be chartered. By getting a data-driven picture of their operations, charterers can pinpoint optimal fleet composition and vessel sizes, and reduce their overall expenses.

Meanwhile, some OSV owners are using smart data to optimize their maintenance schedules, thereby maximizing their fleet’s technical availability and reducing associated costs.

Going forward, one of the most promising applications of fleet digitalization in maritime will be in helping determine if performance clauses defined in charter party agreements have been met.  As costs increase, pressure to monitor each party’s obligations and enforce contract performance is likely to grow from all sides. This shows the importance of a trusted, independent platform to monitor and report on all parties’ contractual obligations.

Crucially, digitalization can also support the industry’s most precious asset: its people. Data can aid crew management, from ensuring safe levels of manning on board to validating competencies and avoiding any overstay as contractually defined. Health and safety practices can also be monitored and enforced with the support of digital systems. This includes data on drills conducted on board and stop work policy, which helps ensure safety standards are met and enables teams to be proactive to ensure safety.

Choosing your targets

As data opens new opportunities for optimization, ship owners and operators must decide what areas to prioritize for efficiency improvements. Precise targets allow for focused data. Therefore, having clear KPIs is the foundation for success.

The experience in the marine offshore sector shows how seemingly small efficiency gains can be multiplied into major, fleet-wide efficiencies that have a serious impact. It also offers potential pathways to lift some blockers to the wider adoption of digital solutions. As the number of digital systems providers grows exponentially, we need a clear picture of the return on investment of these solutions. Data standards will be needed so that different systems can “talk” to each other and deliver their full potential.

With pressure on the industry to improve performance on multiple fronts, the road ahead is clear: shipping needs data to power its ambitions, whatever those goals are.