Shipping KPI

Bulkforum, Bergen

May 12th 2009

Content

1. The Shipping KPI Standard

2. Application of the Standard

3. Benchmarking (application demo)

Industry contributors• A.P. Møller-Maersk• Anglo-Eastern Shipmanagement (Ltd.)• Barber Ship Management• Bernhard Schulte Shipmanagement• BW Gas ASA• Chemikalien Seetransport GmbH• Columbia Shipmanagement Ltd• Dobson Fleet Management• EMS Ship Management• Epic• Eurasia International Limited• Høegh Fleet Services AS• Jebsen Management AS/Aboitiz Jebsen Bulk Transport Corp.• Navigo Management Co• NYK Shipmanagement Singapore• Seaspan Ship Management Ltd• Stolt-Nielsen Transportation Group• TESMA holding• Thome Ship Management Pte Ltd• Tsakos Shipping & Trading• V.Ships• Wilh. Wilhelmsen ASA

Main Partners:Main Partners:

• Wilh. Wilhelmsen

• Intermanager

Why the Shipping KPI Standard Increased transparency

• Focus on quality matters, safety issues and environmental performance

• Develop frameworks for reporting of operational performance

– meaningful for stakeholders without technical/ maritime

background

Current industry situation

• Too many different indicators (KPIs)

– Potential for confusion and mistakes

• Comparison of performance between companies is difficult

• Additional manpower required to present the same information in many different ways (onboard, in office and to externals)

• Difficult to mobilize organizational focus on quality improvement due to lack of aggregated measurements

• New reporting requirements are emerging, especially regarding environmental issues and Corporate Social Responsibility (CSR)

The KPI Project objectives

In order to: • boost performance improvements internally in companies

engaged in ship operation activities

• provide an efficient communication platform of ship operation performance information to internal and external stakeholders

Develop an international standard for ship operation and corresponding tools to measure company and

vessel performance

Develop an international standard for ship operation Develop an international standard for ship operation and corresponding tools to measure company and and corresponding tools to measure company and

vessel performancevessel performance

The Shipping KPI Standard - Concept

SPI

PI

Extended Balanced Score Card for internal improvement

Corporate measurements

Aggregated indexes for external communication

Proc

esse

s

Cus

tom

er

Lear

ning

HSE OthersFinancial

KPI

The Shipping KPI Standard - SPIs

• Environmental performance• HR performance• Safety performance• Security performance • Technical Performance• Navigation Performance• Operational Performance

• Environmental performance• HR performance• Safety performance• Security performance • Technical Performance• Navigation Performance• Operational Performance

The Shipping KPI Standard - KPIs

• Accidental releases of substanses as def by MARPOL• Ballast Water Discharge Violations• Budget control per vessel• Cargo incidents during cargo operations• Cargo incidents during voyage• CO2 emission performance• Condition of Class• Contained Spills• Crew behaviour• Crew management• Crew planning• Drydocking Planning Performance• Environmental deficiencies• Failure of critical equipment and systems• Fire and Explosions• Flawless Port state control performance

• Accidental releases of substanses as def by MARPOL• Ballast Water Discharge Violations• Budget control per vessel• Cargo incidents during cargo operations• Cargo incidents during voyage• CO2 emission performance• Condition of Class• Contained Spills• Crew behaviour• Crew management• Crew planning• Drydocking Planning Performance• Environmental deficiencies• Failure of critical equipment and systems• Fire and Explosions• Flawless Port state control performance

• Fuel Efficiency• HR deficiencies• Lost Time Injuries Frequency • Lost Time Sickness Frequency• Navigational deficiencies• Navigational Incidents• NOx emission performance• Operational deficiencies• Port state control deficiency rate• Port state control detention• Safety deficiencies• Security deficiencies• SOx emission performance• Vessel availabilty• Violations of MARPOL

• Fuel Efficiency• HR deficiencies• Lost Time Injuries Frequency • Lost Time Sickness Frequency• Navigational deficiencies• Navigational Incidents• NOx emission performance• Operational deficiencies• Port state control deficiency rate• Port state control detention• Safety deficiencies• Security deficiencies• SOx emission performance• Vessel availabilty• Violations of MARPOL

The Shipping KPI Standard - PIs

• Absconded crew• Actual drydocking costs• Actual drydocking duration• Actual off-hire• Actual running Costs and Accruals • Agreed drydocking costs• Agreed drydocking duration• Allision• Average number of vessel under

management • Ballast water violations• Collision• Condition of class• Criminal offence• Drug/alcohol abused• Emitted Mass CO2• Emitted Mass NOx• Emitted Mass SOx• Environmental deficiencies• Failure of critical equipment and systems• Fatalities due to injuries• Fatalities due to sickness• Grounding

• Absconded crew• Actual drydocking costs• Actual drydocking duration• Actual off-hire• Actual running Costs and Accruals • Agreed drydocking costs• Agreed drydocking duration• Allision• Average number of vessel under

management• Ballast water violations• Collision• Condition of class• Criminal offence• Drug/alcohol abused• Emitted Mass CO2• Emitted Mass NOx• Emitted Mass SOx• Environmental deficiencies• Failure of critical equipment and systems• Fatalities due to injuries• Fatalities due to sickness• Grounding

• HR deficiencies• Lost Workday Cases• No of crew not relieved on time• No of dismissed crew• No of logged warnings• No of violations of MARPOL Annex 1-6• Number of cases where a crew member is

sick for more than 24 hours • Number of new cadets• Officer working days• Officers retention rate• Permanent Total Disabilities• Permanent Partial Disabilities• Planned off-hire• PSC inspections resulting in zero

deficiencies • Severe spills of bulk liquid• Total Exposure Hours• Total no of contained spills of bulk liquid• Total number of accidental releases of

substances covered by MARPOL, to the environment

• Total number of cargo units/passengers transported

• HR deficiencies• Lost Workday Cases• No of crew not relieved on time• No of dismissed crew• No of logged warnings• No of violations of MARPOL Annex 1-6• Number of cases where a crew member is

sick for more than 24 hours• Number of new cadets• Officer working days• Officers retention rate• Permanent Total Disabilities• Permanent Partial Disabilities• Planned off-hire• PSC inspections resulting in zero

deficiencies• Severe spills of bulk liquid• Total Exposure Hours• Total no of contained spills of bulk liquid• Total number of accidental releases of

substances covered by MARPOL, to the environment

• Total number of cargo units/passengers transported

• Total number of damaged or lost cargo units/passengers injured during cargo handling

• Total number of damaged or lost cargo units/passengers injured during voyage

• Total number of explosion incidents• Total number of fire incidents• Total number of navigational related

deficiencies • Total number of operational related

deficiencies • Total number of port state control

inspections • Total number of PSC deficiencies• Total number of PSC inspections resulting in

a detention • Total number of recorded external

inspections • Total number of safety related deficiencies• Total number of security related deficiencies• Training days• Transport Work• Vessel running cost budget• Violation of rest hours• AAE (Additional Authorized Expense)

• Total number of damaged or lost cargo units/passengers injured during cargo handling

• Total number of damaged or lost cargo units/passengers injured during voyage

• Total number of explosion incidents• Total number of fire incidents• Total number of navigational related

deficiencies• Total number of operational related

deficiencies• Total number of port state control

inspections• Total number of PSC deficiencies• Total number of PSC inspections resulting in

a detention• Total number of recorded external

inspections• Total number of safety related deficiencies• Total number of security related deficiencies• Training days• Transport Work• Vessel running cost budget• Violation of rest hours• AAE (Additional Authorized Expense)

KPI: CO2 emissionsThe estimated CO2 efficiency in a calendar year. Measured per vessel for external communication (input to SPIs)

Relevant PIs:•Emitted Mass CO2•Transport Work

KPI Value Formula= Emitted Mass CO2*106

Transport Work

KPI Rating Formula= 100-(Z*KPI Value)

Rating Parameters: Z=7

This KPI compares emitted mass of CO2 to the vessel’s total transport work, hereby stating the value achieved (transport work) by the emission of CO2. As the PI ’Emitted Mass CO2 is to be given in tons, the PI’s value is multiplied by 1 million to get the KPI value in g/transport work (tonmile, passengermile, TEUmile, etc).

KPI: CO2 emissionsCalculation Example

Relevant PIs:•Emitted Mass CO2 103.500 ton•Transport Work 20.710.647.000 tonmile

KPI Value Formula= Emitted Mass CO2*106

Transport Work

KPI Rating Formula= 100-(Z*KPI Value) = 100 – (7 * 4,98) = 65,1

Rating Parameters: Z=7

Z value to be updated (agreed), and need to be differentiated between ship size and other factors

tonmileg /98,402071064700

10*103500 6

Some typical emission factors

Ship Type Index unit CO2 NOx SOx

LNG Tanker g/ tonmile 66,5 1,9 1,2

Chemical Tanker g/ tonmile 23,5 0,7 0,4

Crude Oil Tanker g/ tonmile 8 0,2 0,1

Bulk Dry g/ tonmile 7,6 0,2 0,1

Container g/ tonmile 96,5 2,7 1,7

Refrigerated Cargo g/ tonmile 124,3 3,5 2,2

RO-RO Cargo g/ tonmile 94,9 1,8 1,7

www.shippingwww.shipping--kpi.comkpi.com

External Stakeholder Who are they?

• Intertanko• Intercargo• BIMCO• ICS-ISF• EEC• USCoastGuards• IMO• AIACS• OCIMF• PI Clubs• Paris MOU• etc...

KPI Utilisation and Requirements

SPI

PIP

roce

sses

Cus

tom

er

Lear

ning

HS

E

OthersFinancial

KPI

Information Need

Roles

External Stakeholders

Industry

External Interests

Utilisation of the Shipping KPI Standard

• Building Public Opinion• External Communication• Internal Improvement• Fleet/Industry Benchmarking• Used in relation to TMSA,

evidence tracking• Performance Based

Contracting• Measuring Policy

Implementation Effects

Building Public Awareness / Reputation

• Long term effect of applying a performance standard:

– Utilising aggregated SPIs over time can be an effective and reliable measure of the industry’s response to changes in policies and external conditions for the industry

– Communicating with legislators, insurance, politicians, environmental interests and media can be more accurate and simplified if objective performance data can be achieved through the use of a recognised standard

Shipping KPI Phase 2 - Content

• WP1: Develop Communication Model for External Stakeholders– Evaluation of operational reporting aligned to the Shipping KPI Standard– Express organisational performance based on vessel SPIs– SPIs Interpretation and definition of performance levels

• WP2: Validation of Shipping KPI Standard– Define a data capture methodology – Perform model sensitivity and consistency analysis– Evaluation of the data capture–

• WP3: Develop Tool for Reporting and “Benchmarking”– Specify functionality for data capture, calculation and presentation– Implement prototype functionality for benchmarking– Test the prototype with data from the validation

SW Architecture

Local KPI SWLocal KPI SW

Benchmarking SWMARINTEK (TeCoMan)

Legacy Systems(existing in-house systems)

Maintenanace Personell Acounting Other

Local KPI SW(any provider)

Reporting SW(any provider)

XML file

MARINTEK KPIMon - Demo http://raga3.marintek.sintef.no/TOCC/Admin/