Fuel prices are now half of what they were 12 months ago and overall confidence in the shipping industry has swung from an all-time high to low within the last year. The current era of market volatility casts doubts over the traditional predictable cyclical model of shipping. Uncertainty makes it challenging to develop business cases for investment in energy efficiency strategies, even though every business believes in energy efficiency.

It can be argued that a smart approach is to invest in energy efficiency strategies and technologies that are adaptable to market volatility. The aim should shift from determining optimum solutions based on an expected future steady market state to maximising the return at any individual moment. With vessels now typically operating for 25 years or more, the operating profile at the start of life is almost certainly going to be different to the profile at the end of life.

A key factor in implementing an adaptable strategy is data. Data facilitates awareness and understanding and can provide a motivation to change. Without it, decisions are often based on a perceived value that can be influenced by inaccurate assumptions. The ubiquitous performance monitoring solutions that have flooded the market are an attempt to interpret on-board operational data for the purpose of identifying more efficient ways of operating ships. The current value of these solutions is typically realised when the information presented to the decision maker is clear and compelling, and the system utilises all the relevant data that impacts the decision. If these features are not present then there is a risk of misinterpretation which will impede good decision making and, when a decision is made without the full picture, the wrong option is easily selected. However, when these systems work well, a clear link is established between operational decisions and the vessel performance data. Informed decisions can optimise the efficiency of the vessel by using the most appropriate performance indicators which may vary with time and the environment.

Access to operational data will also provide clarity on the performance of so called Energy Saving Devices (ESDs). Owners and operators struggle to determine the true realisable return of investment for the multitude of solutions currently available. One thing that can be said about all ESDs is that there is no one-size-fits-all solution. One may, for example, give exceptional efficiency increases for a narrow range of operational conditions but be detrimental to performance for others. The most successful strategies and technologies will be those that deliver demonstrable returns across a range of conditions or can adapt themselves to changing conditions.

The realisation of an adaptable fleet that maximises returns across its lifetime requires organisations to take responsibly for energy management and make it part of their culture. It starts with an awareness of the current situation and solutions through quality data gathering and analysis and, ultimately, ends in an adaptable, sustainable shipping industry that can meet the demands of an unpredictable, changing environment.
Source: Lloyd's Register