www.napa.fi

Digitalization in Shipping

VP Products, NAPA

Tom Sundell

NAPA Solutions for Safe and Efficient Ship Operations

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NAPA•A very short introduction to NAPA•NAPA for safety and efficiency of the industry

The Shipping Ecosystem and Data Transparency•Multiple actors and complex contractual arrangement hides inefficiencies•Increase transparency would benefit the whole logistics value chain –the Data Exists!

Data Driven Insight to Ship Operation for Better Performance•Monitoring and optimizing voyage executions with help of IT and Data•Utilizing operational data to get ships that fit their trade

Digitalization and Safety•Increased safety, predictability and traceability through data logging and sharing•Integrates IT solutions onboard supporting status awareness

© NAPA© NAPA

NAPA Software, Services and Data Analysis

for the Maritime Industry

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© NAPA4

INSTALLATIONSONBOARD

2000+VESSELS

95%OF SHIPS BUILT

ANNUALLYDESIGNED BY NAPA USERS

12COUNTRY OFFICES

WORLDWIDE

180 EMPLOYEES

€21 MILLION REVENUE

IN 2015

UP TO

20%SAVINGS IN

FLEET OPERATIONS AND MAINTENANCE

WITH NAPA

2500+NAVAL ARCHITECTS

USE NAPA DAILY IN THEIR

DESIGN WORK

NAPA in Numbers

26 YEARS

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Shipping Ecosystem and Data Transparency

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Exhibit A: Charter-Party ContractOrigin: charta partita

A contract between the:• Owner of the ship• Charterer for the use of the ship• Most central contract type in the

industry still today

Charter-Party Contract from 1727

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Shipping in the 1700’s

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Shipping in the 2000’s

10 000 000 000 tons of goods / year

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Inefficient Ecosystem

The current state of Marine and Shipping Ecosystem is very• complex• fragmented• has parties with conflicting interest • hides inefficiencies

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Source: Positioning ReportAnalysis of the current marine industry structure and a vision for a renewed marine industry ecosystemÅbo Akademi University 2015 – REBUS Program

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Conflict of Interests leads to Sub Optimization

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Classification society

Flag state authorities

Insurance providers

Cargo owners Brokers

Ports & agentsStevedores

Ship ownersService suppliers

Customs

Traffic controlBorder control

Environmental authorities

Weather servicesData analysts

Universities

Communication providers

Fuel suppliers

Ship designer

Shipyards

Railway and truck operators

Equipment manufacturers

Ship operators

Charterers

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Lack of Transparency Hurts the Industry Things like:• Low asset utilization• Low capacity utilization• High number (19) of actors in the transportation

chain• Sea shipping seen as a black boxLeads to:Excessive freight costs per cargo unitExcessive emissions per cargo unitSuboptimal competitive advantage of shipping

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Source: Positioning ReportRevolutionizing short sea shippingA ̊bo Akademi University 2015 – REBUS Program

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Example: Inefficiencies in Baltic short sea shipping Based on AIS and PortPlus notification data from 2013 & 2014

40 % 36 %40 %Ships spend 40 % of their time in port! Vessels rush to port because of ”first come – first served” slot allocation system

Ships sails 40 % of their time at sea in ballast because of lack of suitable cargo.

As a result ships in Baltic use only 36 % of their time creating value to their customers!

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Data Driven Insight to Ship Operation

for Better Performance

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• E.g. port slot allocation system incentives ship to rush to que

• Monitoring ship performance makes this visible to stakeholders

Example: Rush to Wait System Inefficiencies

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• E.g. port slot allocation system incentives ship to rush to que

• Monitoring ship performance makes this visible to stakeholders

• Delaying the arrival and optimizing the speed profile resulted for this case in:

• 13 % reduction in bunker costs• 13 % reduction in CO2 emissions

Example: Rush to Wait System Inefficiencies

Optimized speeds and later arrival

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Example: Monitoring Hull & Propeller Performance

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Ship owner: Pays for hull 

maintenance Pays performance 

penalty

Cargo owner: Pays for fuel Does not have 

access to accurate reporting system 

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Mean draft Mean draft8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00

Speed

1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Speed

1.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.02.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.03.00 28672.69 0.00 19899.13 13651.33 0.00 0.00 0.00 0.00 3.00 1.0 0.0 1.0 2.0 0.0 0.0 0.0 0.04.00 0.00 14069.64 1899.00 24483.91 12553.02 0.00 0.00 0.00 4.00 0.0 1.0 2.0 1.0 1.0 0.0 0.0 0.05.00 0.00 0.00 10018.17 0.00 24909.73 0.00 0.00 0.00 5.00 0.0 0.0 1.0 0.0 1.0 0.0 0.0 0.06.00 0.00 0.00 0.00 16682.97 0.00 18434.28 0.00 0.00 6.00 0.0 0.0 0.0 4.0 0.0 1.0 0.0 0.07.00 0.00 0.00 26593.77 28325.67 26139.87 12101.68 0.00 0.00 7.00 0.0 0.0 1.0 1.0 1.0 1.0 0.0 0.08.00 0.00 0.00 15325.51 11747.83 0.00 0.00 0.00 0.00 8.00 0.0 0.0 2.0 3.0 0.0 0.0 0.0 0.09.00 0.00 0.00 0.00 0.00 51126.67 0.00 0.00 0.00 9.00 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0

10.00 0.00 16434.52 0.00 14831.01 28642.94 0.00 0.00 0.00 10.00 0.0 1.0 0.0 1.0 2.0 0.0 0.0 0.011.00 0.00 0.00 0.00 0.00 0.00 17914.81 0.00 0.00 11.00 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.012.00 0.00 0.00 26807.41 13897.74 18639.33 0.00 0.00 0.00 12.00 0.0 0.0 3.0 1.0 1.0 0.0 0.0 0.013.00 0.00 0.00 0.00 0.00 0.00 6530.38 1268.63 0.00 13.00 0.0 0.0 0.0 0.0 0.0 1.0 1.0 0.014.00 0.00 0.00 23509.59 17289.93 18860.09 21282.28 0.00 0.00 14.00 0.0 0.0 1.0 2.0 4.0 2.0 0.0 0.015.00 0.00 0.00 0.00 22900.95 22105.65 13595.68 0.00 0.00 15.00 0.0 0.0 0.0 4.0 2.0 1.0 0.0 0.016.00 0.00 0.00 0.00 26088.27 19494.71 22570.21 0.00 0.00 16.00 0.0 0.0 0.0 7.0 4.0 1.0 0.0 0.017.00 0.00 0.00 0.00 12446.99 32928.30 12317.75 0.00 0.00 17.00 0.0 0.0 0.0 1.0 8.9 9.9 0.0 0.018.00 0.00 0.00 23429.03 18269.73 29165.12 18399.72 5971.02 0.00 18.00 0.0 0.0 1.0 6.0 7.0 13.9 1.0 0.019.00 0.00 0.00 19748.09 22336.54 22595.81 22946.50 3289.11 0.00 19.00 0.0 0.0 1.0 9.9 11.9 3.0 1.0 0.020.00 0.00 0.00 28839.57 18170.27 29706.97 19255.23 14051.07 0.00 20.00 0.0 0.0 1.0 8.0 5.0 6.0 2.0 0.021.00 0.00 0.00 0.00 19837.84 17020.94 0.00 0.00 0.00 21.00 0.0 0.0 0.0 4.0 1.0 0.0 0.0 0.022.00 0.00 0.00 0.00 16184.30 0.00 0.00 0.00 0.00 22.00 0.0 0.0 0.0 2.0 0.0 0.0 0.0 0.023.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.024.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.025.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 25.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Monitoring Gives Insight to Real Conditions

Propulsion Power [kW] Time sailed

Design Point

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Using Data for Feedback for Optimal Design

ShipbuildingDesign• Real environment• Real operation• Hull form • Performance

estimation

Voyage Reporting• Monitoring• Data analysis• Performance in real

conditions

Feedback

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Does IT and the “Digital Revolution” Increase

Safety?

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• Increasing amount of data available from the ships:• Loading condition data• Logbook data• Automation/machinery data• Weather data• Position Data

• If shared and made available this can be used to:• New applications and services• Communicate safety status to other stakeholders• Developing new rules and regulations• Increase Safety

Digital Revolution: Improving Safety?

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Safer Shipping – General Concept

LEARN & MEASURE VULNERABILITY

DETECT & ANALYZE SEVERITY

TIMESCALE & ESTIMATE SURVIVABILITY

EVACUATE orSTAY ONBOARD

VULNERABILITY & STABILITY

DAMAGE CONTROL &INCREASE STABILITY

Proactive safety

increase

Reactive and Predictive Decision Support in an emergency

EMERGENCY SITUATIONWithin minutes 15-30minutes > 2 hours

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Status Awareness for the Crew and other Stakeholder

LEARN & MEASURE VULNERABILITY

DETECT & ANALYZE SEVERITY

TIMESCALE & ESTIMATE SURVIVABILITY

EVACUATE orSTAY ONBOARD

VULNERABILITY & STABILITY

DAMAGE CONTROL &INCREASE STABILITY

Proactive safety

increase

Reactive and Predictive Decision Support in an emergency

EMERGENCY SITUATIONWithin minutes 15-30minutes > 2 hours

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Emergency room in action – already today!

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Summary

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• Monumental possibilities for increased efficiency exists• Scattered reporting and paper-based logs still mainstream• Conflict of interest and sub optimization increases inertia in the ecosystem• IT and Data enablers for Safety and Efficiency in Shipping• Open and transparent information will be the game changer (bringing shipping

closer to a Perfect Market)!

How to disrupt world’s biggest business?

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www.napa.fi

Tom.Sundell@napa.fi

Thank You

Credits: FIMECC REBUS “Towards Rational Business Practices”Sub Project P2 “Logistics Networks”