Improving Fuel Efficiency through the Supply Chain?

and the Ship Efficiency Management Plan

Peter Bond

October 23rd 2008

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Ship Efficiency Management Plan

POSSIBLE LIST OF CONTENTS

• Energy Efficiency Operational Index (EEOI) – not finally decided at this time

• Guidance on Best Practices:

– Fuel efficient operations

– Optimised Ship Handling

– Propulsion System

– Improved Fleet Management

– Energy Management

– Fuel Oil

– Other Measures

– Compatibility of Measures

– Energy Efficiency Table

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Guidance on Best Practices for

Fuel-Efficient Operation of Ships

Source Intertanko

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Who pays for the fuel?

June 2008

...there are a huge number of ships (around

120) at anchor in Newcastle and Dalrymple Bay

in Australia waiting for coal and iron ore

cargoes.

.

Fuel Efficient Operations

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Fuel Efficient Operations

Improved Voyage Planning

First section of Company Voyage Plan Form

Vessel: Voyage Plan Number: Section This Voyage Plan checked and approved, and

Bridge Team briefed by the Master:

Date: From: To:

Plan prepared by Navigating Officer:

Charts & NP corrected to NTM Acknowledge familiarization with this plan: Name:

No / Date: Rank / Initials / Sign. Signature

Signature: Rank / Initials / Sign.

Departure Port Particulars: ; Name of the Berth: ; ETD ; Zone time: ; Distance to sea buoy: n.m.;

Speed: knots; Draft: FWD: m, AFT m,;

Min.underkeel clearance: m

VHF channels: Pilot: ; Port Control: ; VTS: ; Other: ;

Other Information:

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Fuel Efficient Operations

Weather Routeing

DEPARTURE: KWANGYANG September

21, 2008 18:50 (GMT)

ARRIVAL: MUNDRA October 8, 2008 10:00

(GMT)

Voyage No: --- Ship Type: BULK CARRIER

Voyage Type: Chartered Loading Condition:

Loaded

Cargo: STEEL PRODUCTS / 40,000MT

VOYAGE SUMMARY :

Route selection - The vessel sailed along the

recommended route.

KWANGYANG to MUNDRA Performed

(15.0 Hours Saved) Fuel Oil Saving 21.90

MT

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Fuel Efficient Operations

Just In Time

just-in-time - definition - A strategy for

inventory management in which raw materials and

components are delivered from the vendor or

supplier immediately before they are required ...

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Fuel Efficient Operations

Speed Optimization

Optimum speed means the speed at which the fuel used per tonnemile is at a minimum level for that voyage. It does not meanminimum speed; in fact sailing at less than optimum speed will burnmore fuel rather than less.

However speed optimisation could lead to increased port congestionand be a new source of delay unless very carefully analysed and thusthere needs to be a balance between voyage speed and the number ofships engaged in a particular trade route.

Reference should be made to the engine manufacturer’sspeed/consumption curve. There are possibly further adverseconsequences of slow speed operation and careful technical adviceneeds to be followed.

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MOEPS (Master Operations and Environmental Performance System)

Port PerformancePort Performance

CO

MM

EN

CE

Operatio

ns

Work

Performance

Ocean

Performance

Ocean

Performance

Work Performance

ORD

ER

AR

RIV

E

Pilot

DE

PA

RTU

RE

1st Lin

e O

ff

DE

PA

RTU

RE

Pilot

Hose D

is-

connected

Hose D

is-

connected

EN

D

Operatio

ns

AR

RIV

E

Pilot

AR

RIV

E

All Fast

Hose

Connected

CO

MM

EN

CE

Operatio

ns

EN

D

Operatio

ns

DE

PA

RTU

RE

1st Lin

e O

ff

DE

PA

RTU

RE

Pilot

ORD

ER

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Vessel name: Arctic Bay Cargo: 46,000 m. tons fuel oil

Ballast Voyage: No ballast voyage, vessel already on position

Laden Voyage : Load Port: Quebec, Canada Discharge Port: Rotterdam, Holland

Combined Saving: 122.0 tons of bunker ; USD 67,154 ; 45% of total bunker cost

This is calculated at the lowest economic speed of 11 kts. It should be noted that even at

that speed the vessel would still anchor for almost 5 days awaiting berthing.

Description Actual Ideal Difference

Commence Voyage 08 April 17:38 08 April 17:38

End of Sea Passage 16 April 07:00 7 D 13 H 18 Apr 22:27 10 D 5 H

All Fast 23 April 18:25 7 D 11 H 23 Apr 18:25 4 D 19 H

Sea Passage speed 14.8 knots 11.0 knots

Bunker Consumption 36.0 tons / day 14.7 tons / day 21.3 tons / day

Bunker Consumed 272.0 tons 150.0 tons 122 tons

Bunker Cost USD 149,627 USD 82,473 USD 67,154

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Bunker Consumption

ARTIC BAYBunker Consumption

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

6,0 8,0 10,0 12,0 14,0 16,0

LADEN

BALLAST

11,0 knots - 14,7 tons

14,8 knots - 36,0 tons

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Fuel Efficiencies

ARCTIC BAY Daily Bunker Consumption

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

07 apr 08 apr 09 apr 10 apr 11 apr 12 apr 13 apr 14 apr 15 apr 16 apr 17 apr 18 apr 19 apr 20 apr 21 apr 22 apr DISCH

PORT

Actual

Ideal

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The motivation for developing MOEPS was based on a preliminary analysis of 13 voyages:

26% gap between actual bunker consumption and ideal bunker consumption.

This equated to a potential saving of around 840MT of fuel oil ($460,000).

A major liner operator enjoys a gap of only 4% between actual and ideal bunker

consumption that shows how much they have refined their “just in time” process. Of the

4% gap around 95% of this time is related to cargo operations (delays and stoppages).

There is actually very little time between END OF PASSAGE and COMMENCE

OPERATIONS. This requires very close cooperation between ports, terminals, vessels,

managers and port Agents.

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Optimized Ship Handling

Optimum Trim

Most ships are designed to carry a designated amount of

cargo at a certain speed for a certain fuel consumption.

This implies the specification of set trim conditions.

Loaded or unloaded, trim has a significant influence on

the resistance of the ship through the water. In some

ships it is possible to assess optimum trim conditions

during the voyage but for others it is not possible as

design factors may predominate.

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Optimized Ship Handling

Optimum Ballast

Ballast should be adjusted taking into consideration the requirements to meet optimum

trim and steering conditions and optimum ballast conditions achieved through good cargo

planning for both dry cargo ships and liquid cargo ships.

When determining the optimum ballast conditions, the limits, conditions and ballast

management arrangements set out in the Ballast Water Management Plan, if applicable, are

to be observed for that ship.

Ballast conditions have a significant impact on steering conditions and autopilot settings

and it needs to be noted that less ballast water does not necessarily mean the highest

efficiency.

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Optimized Ship Handling

Optimum Propeller Considerations

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Optimal use of Rudder and Heading Control Systems (Autopilots)

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Hull Maintenance

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Propulsion System

Marine diesel engines thermal efficiency around 56%.

Fuel cell technology average thermal efficiency of 60%.

Propulsion System Maintenance

Maintenance in accordance with manufacturers’ instructions and the company’s planned

maintenance schedule will also maintain efficiency.

Additional means to improve efficiency include:

– Use of fuel additives

– Scrape down analysis of Cylinder L.O consumption

– Slide valves on main engine

– Torque analysis

– Engine monitoring systems

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Waste Heat Recovery

Possible Benefits:

Reduced fuel consumption by up to 12 % (claimed)

Less auxiliary generator maintenance

Lower emissions

Potentially more cargo space (less bunker capacity needed)

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Improved Fleet Management

Better utilization of fleet capacity can often be achieved by improvements in fleet

planning. For example, it may be possible to avoid or reduce long ballast voyages through

improved fleet planning. There is an opportunity here for charterers to promote

efficiency.

This of course closely relates to the concept of “just in time” arrivals. Pool operators

claim this is one of the benefits from Pooling of vessels.

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Energy Management

A review of electrical services on board against utilization can reveal some

surprising efficiency gains. However care should be taken to avoid the creation

of new safety hazards when turning off electrical services (e.g. lighting). Thermal

insulation is an obvious means of saving energy. Greater use of energy saving

lights.

Energy Conservation Awareness training. We all need to be better informed of

what we can do as individuals to conserve energy. Seafarers do need greater

awareness as on board a vessel “electricity” is free is it not?

Incinerators may not always be the most efficient means of garbage management.

Consider fitting compactors and landing more garbage to shore always taking

into account what happens to the garbage ashore.

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Fuel Oil

Use of alternative fuels could reduce

emission of CO2 but availability will often

determine the applicability.

One option that could be considered is the

use of gas.

Fuel cells are also a possibility using natural

gas or hydrogen.

Another alternative could be uranium.

Use of wind power is also feasible.

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Other Measures

Some other fuel efficiency measures that may be considered:

1) Increase speed more economically. After dropping the pilot a gradual increase of speed to

keep the engine load within certain limits will reduce fuel consumption.

2) As per 1) to be applied to Pilotage areas as well within safe parameters.

3) Carry out tank cleaning and gas freeing only when necessary and not merely to satisfy vessels

Management system requirements. For example we specify each cargo tank to be visually

inspected once per year but if the vessel is trading in “black” products for a prolonged

period it would be inefficient merely to clean the tank for an inspection.

4) Consider fitting vessels with a harbour generator. Many vessels when in port or at anchor

use a generator that is run inefficiently on a low load. Having a smaller “harbour” generator

on certain vessels could reduce fuel consumption.

5) Consider recycling of “grey” water. It should take less energy to clean “grey” water than to

produce further fresh water.

6) Design improvements through hull form developments, rudder, propeller, etc.

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Other Measures

7) Aerodynamic considerations of the above water areas of a vessel.

8) Reefer container stowage positions – segregate as much as possible to reduce heattransfer from compressor units.

9) Better berthing schedules for vessels waiting at anchor – if on 12 hours notice ratherthan 1 hours notice vessels systems can be optimised for fuel savings.

10) Cargo conditioning on passage (such as cargo tank heating, ventilation, etc.) – operatorsand charterers to consider exactly what is required and necessary.

11) Some vessels drift off port waiting for berthing. It may be advantageous to seek a safeanchorage as quite often the vessel has to run its engines to reposition itself. Ports toconsider how they charge anchorage dues to assist in this matter and also need toconsider acts of piracy that have an influence on the matter.

12) Closer liaison with Charterers when planning dry docks to avoid/reduce the need forrepositioning of the vessel.

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Compatibility of Measures

Type of Vessel

Size of Vessel

Trading Area

Age of Vessel

Length of voyages

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How to measure the efficiencies?

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Model Ship Efficiency Management Plan

Name of vessel: Average Fuel Consumption:

Vessel Type: Capacity (TEU/DWT/Pass./TLM):

GRT: Energy Efficiency Operation Index:

Design Speed: …………………………………….

1-no action 6-action required

Weather Routeing

Remarks: Software available/weather charts1 2 3 4 5 6

Trim Optimization

Remarks: Each draught has an assigned best trim/trim tables/best

practice

1 2 3 4 5 6

Thermal Heat Recovery (WHR-systems)

Remarks: only applicable for newbuildings

1 2 3 4 5 6

Improved Usage of Engine cooling water

Remarks: (generation of technical water or even drinking water),

improvements

1 2 3 4 5 6