There are several key drivers in the recent significant growth in demand for Fleet and Vessel Performance Management.
Demand for Fleet and Vessel Performance Management (FVPM) is increasing, as growing numbers of ship owners and operators realise the benefits.
Multiple pressures on the global marine industry mean that stakeholders can no longer afford to ignore the performance of their fleet. The significant growth in demand for FVPM is fuelled by many different drivers:
Need to reduce fuel costs
Bunker fuel costs have increased by over 200% in recent years - and are likely to continue to rise. To be able to reduce this very significant operational cost, you need to measure exactly how much fuel each vessel is consuming and then use that data to devise a way to achieve optimal fuel savings.
Increased competition within the market
The steady delivery of new build vessels into an already oversupplied market, coupled with a weak global economy, has put downward pressure on freight and charter rates. To retain an optimal level of profitability, customers need to be able to reduce operating costs.
Need to meet stricter emissions regulations
Since October 2013, every ship visiting French shores must report its CO2, emissions for the voyage. Worldwide, you’ll soon experience increased regulatory requirements to monitor, report and reduce C02, NOX, SOX, other effluents and the general environmental impact of your ships and operations.
Need to deliver stakeholder transparency
Owners, charterers, investors, insurance companies and technology providers are increasingly demanding evidence of environmental and operational efficiency commitments when making contract decisions. Vessel operators need to be able to provide validated performance results.
Rating schemes & initiatives
Leading ports are now using independently devised rating schemes as benchmarks to assess energy efficiency and reward the most fuel-efficient vessels with reduced port fees. There is increasing interest across the industry in rewarding the efforts of leading owners and operators who go beyond compliance to transform environmental factors into competitive advantage. There are also programmes to incentivise vessels transitioning to cleaner fuels.
The need to reduce fuel costs is a factor that weighs heavy on ship owners and operators around the world. To be able to reduce this operational cost, stakeholders need to be able to measure how much fuel each vessel is consuming. This data is fundamental to understanding ways to achieve fuel savings for vessels and voyages.