A Vision to the Future of Collaboration: Introducing XVELA

Transcription

1 INSERT PARTNER LOGO Robert Inchausti, CTO & Christopher Mazza, CCO CONNECT. COLLABORATE. INNOVATE. A Vision to the Future of Collaboration: Introducing XVELA

2 2014 F1 Champion Louis Hamilton It isn t simply skill, courage and speed that wins

3 Pit Stop An efficient pit stop makes all the difference

4 Agenda Introduction Key Metrics Challenges A Better Way 2015 Goals

5 Development of Ship Sizes

6 >10,000 TEU Ships +127% Growth Source: AXS Alphaliner Monthly Monitor

7 Vessel Size Increase Since 2010 Asia North America - +19% to 6,566 TEU Asia Europe - +32% to 10,550 TEU AlixPartners, March 2015

8 Vessel Size Increase The number of megavessels, those greater than 13,300 TEU which predominantly serve the East-West trade lanes is forecast to double by the end of AlixPartners, March 2015 The increase in supply is stemming from the rising average of the size of the tonnage deployed. In February 2014, that average read 10,700 TEU whereas currently the figure has risen dramatically to 12,170 TEU, equating to a 13.7 percent increase. Drewry, Container Insight Weekly, March 2015

9 Bunker Cost March 12, $695 per ton (IFO180) March 11, $325 per ton (IFO180)

10 Bunker Cost Source: Macrotrends.net

11 Bunker Cost Tons consumed per day at 11.5 knots = 115 Tons consumed per day at 16.5 knots = 144 The cost difference today on a 70 day round trip voyage of 10,000 TEU vessel at 16.5 knots vs knots is: $659,750 10,000-13,000 TEU vessel, Asia-North Europe trade lane, current bunker cost of $325 per ton, 638 tons difference, equals $207,350, RTD to BUS 34 days, round trip is minimum 70 days

12 Bunker Cost Six months ago it was: $1,410,850 10,000-13,000 TEU vessel, Asia-North Europe trade lane, current bunker cost of $325 per ton, 638 tons difference, equals $207,350, RTD to BUS 34 days, round trip is minimum 70 days

13 Bunker Cost Rising fuel prices have made bunker the largest cost item for shipping lines, more than fleet or overhead, and often exceeding 40 percent of all costs. McKinsey The Hidden Opportunity in Container Shipping, November 2014

14 Bunker Cost Top 10 Ocean Carrier Bunkers are one of the top 2 costs Annual spend is between $2B and $3B Source: Drewry Container Forecaster Q3 2014

15 Ocean Carrier Debt & Capacity

16 Industry Revenue 2008 vs Ocean carrier revenue in 2014 was 16% below it s 2008 peak of $200 billion AlixPartners, March 2015

17 Terminal Investment STA mega-ship capable crane: 9.5M - 12M Yard crane: 2.6M - 3M Green field automated terminal: 500M+

18 Industry Challenges Terminal Operator Demand for increased productivity Difficulty in productively handling megavessels High cost to modernize and automate terminals High cost of labor to work vessels Ocean Carrier Declining freight rates Large investment to acquire megavessels Must build to remain competitive & relevant Profitability constrained

19 Efficiency Challenge To be profitable ocean carriers increase efficiency To be more efficient they must utilize megavessels To operate the megavessels most efficiently, the ocean carrier must ensure: Work the vessel more productively Slow steam This is where the problem lies

20 A Call for Change Unless we figure out a way to get the ships in and out of the port faster, we will run out of space Soren Skou, CEO Maersk Line, TPM March 2015 If we saved 30 minutes per port call, we would save $10M annually solely on fuel (bunker) savings. Capt. K.L. Lu, Senior Manager Marine Operations, OOCL, Jan We won t survive if we don t have lower costs and provide a better product than our competitors, it s that simple. APM Terminals, April 2014

21 A New Approach Stowage planning and container fleet management are crucial levers to optimize asset utilization McKinsey The Hidden Opportunity in Container Shipping, November 2014

22 Emerging Success Stories Hub Partnership Algeciras, PTP, Rotterdam close collaboration between terminal operator and ocean carrier every day, all the time Shanghai Southampton Collaboration dedicated G6 Asia- Europe string, on-time and coordinated stowage activities for every vessel

23 Process Challenges Terminal productivity has not been able to keep pace with ocean carrier demands CONSTRAINTS in the current vessel stowage planning and execution process must be eliminated

24 1950 vs. 2013

25 Formula 1 Changed

26 INSERT PARTNER LOGO The Solution

27 Today s High Level Process Ocean Carrier Vessel Bookings Vessel Stowage Planning EDI messages s, reports phone calls Terminal Vessel Planning Terminal Vessel Operations Terminal Operator Quality and timeless of the data Ability to affect change Accessibility of data High administrative costs Opportunities Lost Vessel Schedules Terminal Reporting Reconciling, Invoicing & Payments

28 But it s Even Worse Terminal Op1 (TOS A) Terminal Op2 (TOS B) Terminal Op3 (TOS A) Terminal Op4 (TOS C) Shipping Line 1 (SPS X) Shipping Line 2 (SPS X) Shipping Line 3 (SPS X) Shipping Line 4 (SPS X)

29 A Better Way: Cloud Based Collaboration WHAT Vessel Bookings Vessel Stowage Planning Terminal Vessel Planning Real-time collaboration Actionable Visibility Consistent Measurements Terminal Vessel Operations Vessel Schedules Terminal Reporting BENEFITS Operational Efficiencies Reconciling, Invoicing & Payments Opportunistic Wins Increased utilization Increased revenue

30 2015 Goals : Terminal Library WHAT Terminal Reference Data Static and Dynamic operational data BENEFITS Minimize planning errors Optimize terminal specific plans

31 Terminal Library Entry Prizes!!!!! Participate to win some fabulous prices

32 2015 Goals : Ship Library WHAT Upload/Download ship details Full Ship file information nsd, stab, lash (& xml) Documentation Update history Validation checks Initial steps to Open Standard BENEFITS Lowers administrative costs Lowers operational and data errors Improves Line-Terminal communication Inter-platform integration, collaboration

33 2015 Goals : EDI Engine WHAT EDI Initial Data Feed Parallel to current flows Flexible mapping tools BENEFITS On demand EDI generation integration to pertinent parties Low risk integration

34 2015 Goals : Vessel Visibility WHAT Integrated vessel call and service dashboard Plan vessel visualization Actual vessel visualization Initial event management BENEFITS Organizational and partner visibility Initial collaboration components Lower administrative costs

35 2015 Goals : Analytics WHAT Initial proforma, plan and actual comparisons Vessel & service utilization Performance metrics Vessel, terminal BENEFIT Measure, assess and improve

36 3 rd party APIs and Solutions WHAT Open APIs Ship model and data BENEFIT Enable wide range of solutions Offer vendor choices Deliver value and cost savings

37 The Agile Development Process Customer focus and engagement Continuous prioritization Key concepts The right amount of architecture, modeling Limit technical debt Limit over-engineering Collaboration Focus on end users and stories Continuous Integration & Deployment A Better Way of Building Value

38 Xvela Solution - Our Mission Deliver collaborative stowage based services that provide visibility and drive efficiency and profitability to a network of ocean carriers and terminal operators EDI engine Ship Library Optimization tools Terminal Library Analytics Planning tool Notification Engine

39 Next Steps Other Xvela related Sessions Managing data flows between carriers and terminals The truthiness of KPIs from carriers and terminals PowerStow today Industry challenges from sea transportation perspective Xvela Kiosk Terminal Library Engage

40 INSERT PARTNER LOGO CONNECT. COLLABORATE. INNOVATE. Thank-you