From Data to Action. Fleet Support Hapag-Lloyd. Jörn Springer London November 2 nd, 2016

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1 From Data to Action Fleet Support Hapag-Lloyd Jörn Springer London November 2 nd, November 7, 2016

2 Present and future trends (and challenges) in liner shipping Consolidation Alliances Digitization Prevailing Losses Ship Size Cost Cutting The question is: What trend will change our business most on the long run? 2 November 7, 2016

3 Fleet Support Center Starting point 2013 Monitoring room 3 November 7, 2016

4 Objective of Hapag-Lloyds Fleet Support Center is to minimize fuel costs per transported TEU Objective Fleet Support Center Goal = Efficiency Fuel Cargo Voyage Execution Cargo Engineering Network Performance Hapag-Lloyd Hapag-Lloyd 4 November 7, 2016 From Data to Action - Energy Management in Ports and Coastal Waters

5 Fleet Support Center Fields of activity 1 Ship-shore Data Transfer 2 FSC Analytics 3 Enhanced Performance Monitoring 4 Utilization 5 Network Review 6 Design Studies and Profile Alignment 5 November 7, 2016

6 Result Impact All initiatives follow the same structure, comparing plan and as-is to improve on operational, tactical and strategic level EXEMPLARY Combine Data Plan Hapag-Lloyd Improve Performance e.g. Port Consumption Performance Strategic Retrofit vessels to cargo and service pattern Status moves Status productivity Tactical Swap vessels to different services Hapag-Lloyd Operational Approach Captain to reduce number of A/E Actual Lead Time 6 November 7, 2016 From Data to Action - Energy Management in Ports and Coastal Waters

7 Close monitoring of ocean legs since 2013; now extended scope to coastal legs and port operations Now Focus Since 2013 Now Hapag-Lloyd Pilot off Steady Engine Operation Stop Steady Engine Operations Pilot on Trim Approach Planning Terminal Performance Weather Routing Speed-ups Monitoring Vessel Evaluation Vessel Performance 7 November 7, 2016 From Data to Action - Energy Management in Ports and Coastal Waters

8 Past and actual information is used to predict realistic arrival time and align with pilots and terminals FURTHER ENHANCEMENTS IN PROGRESS Route Statistics Results Pilots Reduction in Waiting time Weather Statistics Prediction Voyage speed Fuel costs Improvement of Reliability Position Alignment Terminals ETA prediction 8 November 7, 2016 From Data to Action - Energy Management in Ports and Coastal Waters

9 First tools are available in web-based in-house platform Speed-up Tool Vessel Monitor Speed-up List Speed-up Statistics 9 November 7, 2016

10 Ports and Hapag-Lloyd s Freight Information System (FIS) Actual Update Vessel Monitor Rollout Status (total) - Schedule Update A E L N SUM Regions PTO Check GeoFence&SMDG Special Cases IT Internal QA Trial by PTO Rollout Done Total Delay Warning Berthing overview 10 November 7, 2016

11 Transparency enables overlay and of several imperfect data sets to generate smarter data Shore based systems and data sets Connect data better Still shipping is not where it could be in terms of data connectivity Data sets need visibility to the deciding authority Terminal and other shore based information are often kept inhouse or are aged when shared Same applies for information from shipping companies, if e.g. ship arrivals are not kept up-todate are may be delayed Fleet data and third-party information = Smart Data 11 November 7, 2016

12 It is still some way to Big Data in liner shipping This keeps us busy today Fit for future Some say we are here We shall be here in 3 years Own Data Smart Data Big Data Intelligent Data All stakeholders along the transport chain participate in exchange 12 November 7, 2016

13 Challenges ahead Transparency Responsibilities Investments Information is not visible across the organization Targets and optimization potentials differ across regions and organizations New ideas require adjustments of individual responsibilities Fear to loose power within the organization Investments required in departments that do not automatically benefit from it Amortization of investments is strongly dependent on the strategy Impacts of investments and dependencies not fully visible 13 November 7, 2016

14 Change needs! Management Committment! Cooperation and Involvement! Communication 14 November 7, 2016

15 The human remains the biggest driver of saving initiatives What drives communication between fleet and onshore office? & Office Vessel Office Vessel Vessel Office Different professions and languages in the office and within the fleet need better understanding Fleet Support Center: holds various professional backgrounds: nautical, naval architecture, energy management, business speaks several languages and acts as a translator between office organization and fleet Source: FutureShip 15 November 7, 2016

16 Better together. 16 November 7, 2016

17 Saving potential Performance Monitoring to Energy Management Steps to take From Performance Monitoring to Energy Management Operational and organisational optimisation Performance monitoring Collection of operational data Trending Nominal-actual comparison Performance management Efficiency review Change management KPIs Benchmarking Dashboards Voyage executions feedback Training Active SEEMP Operational fleet benchmarking Schedule optimisation Fleet utilisation Operational fleet benchmarking Fleet composition optimisation Commitment 17 November 7, 2016

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