Integrated Chartering Analysis

Background

The performance of maritime operators greatly depends on their ability to analyse, compare and select the optimal voyage. As various factors affect the profits a company can expect from a voyage, analysing pre-fixtures without the use of a specially designed software application proved challenging for the client. The client also faced problems in day-to-day management as the methods used for analysing vessel operations and conducting laytime calculations were both timeconsuming and inaccurate.

Challenge

• The client was unable to calculate the entire pre-fixture while taking into account all parameters like real-time bunker price, vessel details, weather forecast, port rotation, cargo details and freightcharges. Thus, the profit analyses conducted were inexact and difficult to use in decision-making
• The client was unable to conduct a comparative analysis of various parameters (i.e. bunker price vs profit)
• The client could not inset multiple Contract of Affreightments (CoA) voyages and compare them
• The client wanted an application that could:
  • integrate daily noon reports, statement of facts, and other vessel reports into the system
  • be seamless and integrated; the complete process from voyage estimation to billing should be done on a single platform
  • integrate a vessel monitoring system into the application in order to give users a better understanding of port rotation

Solution

NEG has designed and developed two intelligent applications called Pre-fixture and Post-fixture using .Net with SQL Server 2008 / SQLlite / Oracle 10g for both Web & Windows (standalone) applications to run in a local system as well as an Internet environment, with local and centralised databases. These two modules have multiple components that can be used together or work as standalone applications. The Pre-Fixture application handles pre-voyage calculations while the Post-Fixture application takes care of operational data, vessel monitoring and consignment tracking. NEG recommended the implementation of an integrated fixture solution (both Pre-
Fixture and Post-Fixture) to fully handle pre-fixture analysis and daily voyage operations.

Outcome

• Effective planning and decision-making was achieved with well-founded calculations based on automatic data capture of all pre-fixture parameters
• Creation of Monte-Carlo simulation and real-time bunker price ensure better freight price fixing
• Every pre-fixture, created by any user, anywhere in the world, can now be be checked and tracked
• Port rotation is handled better by using the Geographic Information System (GIS) based map viewer
• The real-time vessel monitoring system decreases bureaucratic processing. Users can see vessel position and planned routes by logging into the system, and can book shipments of cargo without contacting the operations department
• Window version user data can be converted into XML files and automatically integrated into the central database using low bandwidths at lower cost
• A provision to save and calculate edited routes and distances between ports and port-coordinates helps create specific sea routes without having to pay extra for other systems to calculate this
• Provision for creating Contract of Affreightment (CoA) voyages helps the client as most of their cash flow depends on CoA
• Invoicing capability allows the user to prepare instant quotes (cost estimates) that can be sent to the customers before negotiations
• Auto parsing of daily voyage reports into the Post-fixture application saves time and resources
• Provision to save, retrieve and prepare basic financial data such as invoices and laytime calculations
• A more accurate picture of vessel movement and operation as the application uses the vesselmonitoring module with Google GIS and real time vessel status
• Provision to use Microsoft Excel © based voyage-reporting system, which is used on the vessels to send daily noon reports, port reports, arrival/departure reports and statement of facts to the office
• Easy exporting/importing to/from Microsoft Excel © makes the system more convenient and userfriendly
• An auto updater was preinstalled into the software, and while opening the applications users can update the latest version into his/her system if connected to the Internet (whenever an update was available). The application also automatically synchronises all information into the right databases
• Users can create and customise any type of Management Information System (MIS) report, giving them better control of report generation
• In summary the client acquired an integrated fixture management solution that handles:
  • Voyage estimation
  • Vessel operations including daily voyage reporting
  • GIS-based vessel monitoring
  • Laytime calculations
  • Invoicing with multiple currency types and values
  • MIS reports
  • Email management and alerts
  • Proper management of these factors enhances the clientʼs efficiency and minimises communication problems

Scope

This application can be universally implemented in any chartering/maritime organisation. It has been carefully designed and developed to handle the Management Information System (MIS) and business decision needs of charterers, ship managers, and ship operators.