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A commercial perspective
on vessel maintenance, cost and efficiency
Bob Bowers
Maritime Technical Services
Maersk Line, Li...
2
Maersk Line, Limited Proprietary
• MLL fleet overview (briefly)
• Approach toward maintenance
• Depot maintenance
• Non-...
3
Maersk Line, Limited Proprietary
“Commercial” Sustainment Basics
• High asset utilization
– 5 years between 2-3 week lon...
4
Maersk Line, Limited Proprietary
Maintenance approach
The business of maintenance
• Ships are expensive assets which
pro...
5
Maersk Line, Limited Proprietary
Managing Maintenance Profit Risk
Maintenance Strategy for Cost Risks
• The approach to ...
6
Maersk Line, Limited Proprietary
Life Cycle Reasoning
7
Maersk Line, Limited Proprietary
Readiness at any cost?
Value to
Asset
Owner
Maintenance
Cost
Rusty Freighter
Best value...
8
Maersk Line, Limited Proprietary
•8
• Hull maintenance
• Condition based machinery
maintenance
• OEM/operator joint vent...
9
Maersk Line, Limited Proprietary
•9
Methodology
• The smart application of “smart” maintenance systems
• Preventive main...
12
Maersk Line, Limited Proprietary
The Commercial Approach
• Drive maintenance from depot to “O and I”
• Utilize a commer...
13
Maersk Line, Limited Proprietary
Relative targets:
• Maersk Line
25% reduction per TEU-km
from 2007 to 2020
• Maersk Ta...
14
Maersk Line, Limited Proprietary
Achievements and targets - How and Why?
• How?
– Operational and engineering improveme...
15
Maersk Line, Limited Proprietary
Marine Engineering Innovation Vessel Performance Regulatory Affairs Business Case Anal...
16
Maersk Line, Limited Proprietary
PAGE 16
GSF design 8500 TEU : additional space required for technologies
17
Maersk Line, Limited Proprietary
•17
Vessel Performance Management
•Performance tool
• Vessel Performance Management Se...
18
Maersk Line, Limited Proprietary
Emissions thoughts
• Cold Ironing
– Does it improve a vessel’s carbon footprint?
– Wou...
19
Maersk Line, Limited Proprietary
Thank you for
your attention
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Maersk bob bowers, commercial perspective, rev 1

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Transcript of "Maersk bob bowers, commercial perspective, rev 1"

  1. 1. A commercial perspective on vessel maintenance, cost and efficiency Bob Bowers Maritime Technical Services Maersk Line, Limited Norfolk, VA November 2, 2010
  2. 2. 2 Maersk Line, Limited Proprietary • MLL fleet overview (briefly) • Approach toward maintenance • Depot maintenance • Non-depot maintenance • Energy management and emission reduction • Implications Contents
  3. 3. 3 Maersk Line, Limited Proprietary “Commercial” Sustainment Basics • High asset utilization – 5 years between 2-3 week long dry-dockings – Optempo is 85% at sea and 15% in terminals; 2 days off service/year – Maersk service life is 25 years but vessels often sold and operated 10-15 years longer • Safety is never compromised • Full regulatory compliance – Class Society – significant technical resource and technical risk mitigation – Flag State/Port State control • SOLAS • MARPOL • Continuous maintenance based – Can not tolerate “maintenance backlog” • Global – The need to be capable in any port • Maintenance and Repair decisions based on business value – Consider alternatives, risks and value. Choose accordingly.
  4. 4. 4 Maersk Line, Limited Proprietary Maintenance approach The business of maintenance • Ships are expensive assets which provide optimum value only by being maintained for maximum operational availability. – Maximize revenue (on hire) – Control total ownership costs • Costs don’t stop when ship isn’t being used. Revenue (charter hire) = $25k/day Daily costs = $20k/day Profit = $5k/day or $150k/month Commercial Military Revenue Charter hire Readiness? Availability? Costs Crew Maintenance Fuel Administration Provisions Stores Depreciation Insurance Crew Maintenance Fuel Administration Provisions Stores
  5. 5. 5 Maersk Line, Limited Proprietary Managing Maintenance Profit Risk Maintenance Strategy for Cost Risks • The approach to achieving affordable total ownership costs must begin with a maintenance strategy that… – Selects cost effective equipment in the “new build” design phase – Has flexibility within readiness standards (RCM/risk) – Exercises obsolescence management over the service life Maintenance Strategy for Revenue Risks • The approach to achieving steady revenue streams is based on vessels that are operating reliably 24/7/365, built on… – Sufficient redundancy (safe risk profile) – Sound technical support – Guidelines for safe operation – Training – Classification
  6. 6. 6 Maersk Line, Limited Proprietary Life Cycle Reasoning
  7. 7. 7 Maersk Line, Limited Proprietary Readiness at any cost? Value to Asset Owner Maintenance Cost Rusty Freighter Best value model Military Excessive maintenance Poor management Poor training (too much time in depot maint, maintenance backlog)
  8. 8. 8 Maersk Line, Limited Proprietary •8 • Hull maintenance • Condition based machinery maintenance • OEM/operator joint ventures on R&D • Service contracts/”Frame” agreements “Better” than Minimum Operating above minimum standard should be a well thought out policy. • High safety/environment/quality emphasis • Voluntary compliance • Leadership position in industry “Competitive advantage” is a function of company culture, reach, innovation and mass – not just low cost.
  9. 9. 9 Maersk Line, Limited Proprietary •9 Methodology • The smart application of “smart” maintenance systems • Preventive maintenance: – carried out by the crew (at sea) and vendors (in port) • Continuous maintenance (organizational and intermediate): – Every port is a repair port – Dry docking represents no revenue. A well maintained ship spends less time in DD • Scheduling: – Most commercial vessels have one 24 hour load port for receipt of fuel, lubes, stores and accomplishing “longer” repairs – Not uncommon for as many as 10 large maintenance/repair items being addressed in a 24 hour port call – Reliance on commercial transport and “agents” • Dry Dock: – Rarely more frequently than every 5 years or longer than 16 days. • OEM is used as an extension of company resources. Expensive on a per hour basis but cheap based on quality and intrinsic value in using OEM’s own global infrastructure. – Tech manuals – Obsolescence – Training
  10. 10. 12 Maersk Line, Limited Proprietary The Commercial Approach • Drive maintenance from depot to “O and I” • Utilize a commercial mentality Treat the ship as having a dollar asset value – every day idle is a loss of money Maintenance targets of opportunity supporting continuous maintenance Minimum intrusive maintenance without reason Trust watchstander as a CBM tool Assess risk profile regarding willingness to allow equipment to fail and a measured approach to repair is possible Does 1 of 4 fire pumps OOC require a CASREP? Failures that would stop a ship at sea … focus for training and spares • Classification provides access to a wealth of technical resources • Response that grows as severity escalates – When commercial owners need a robust support group we grow one on the spot.
  11. 11. 13 Maersk Line, Limited Proprietary Relative targets: • Maersk Line 25% reduction per TEU-km from 2007 to 2020 • Maersk Tankers 15% reduction per tonne-km from 2007 to 2015 • Maersk Supply Service 5% reduction by end 2011 Maersk Line has reduced CO2 emission of own fleet by 15% in the period 2002 to 2008 Carbon (energy) - Achievements and targets …
  12. 12. 14 Maersk Line, Limited Proprietary Achievements and targets - How and Why? • How? – Operational and engineering improvements • Fleet optimization • Focused marine engineering – Technology advances (innovation) • Effective integration of sub-systems • Redesigned systems • New systems – KPI driven performance • Frequent and relevant data • Communication of results and shortfalls – Regulatory input • Establishment of common goals and a coordinated effort • Why? – It’s the right thing to do – It’s good business • Shippers demand it • Cost structure demands it
  13. 13. 15 Maersk Line, Limited Proprietary Marine Engineering Innovation Vessel Performance Regulatory Affairs Business Case Analysis Monitoring of hull & propeller conditions Main Engine efficiency Auxiliary Engine efficiency Voyage planning and execution Cargo load optimization Optimum trim guidance for all vessel classes Monitoring of new paint technologies Basic load optimization Cylinder oil optimization Propeller technology enhancements Other Initiatives Alternative fuel tests New propulsion technologies ISO 14001 certified Crew awareness and engagement SOx scrubber studies QUEST: Low energy chilled containers Modified bulbous bow Micro bubbles Ballast water optimization and treatment systems Waste heat recovery system Slow steaming and super-slow steaming Five elements essential for sustainability
  14. 14. 16 Maersk Line, Limited Proprietary PAGE 16 GSF design 8500 TEU : additional space required for technologies
  15. 15. 17 Maersk Line, Limited Proprietary •17 Vessel Performance Management •Performance tool • Vessel Performance Management Service (VPMS) provides • Key vessel performance monitoring • Decision support on vessel operation • VPMS reports provide guidance and decision-support on • Hull and propeller performance and efficiency • Improving main and auxiliary engine performance • Optimal cylinder oil consumption • Drydocking, hull cleaning and propeller polishing intervals • Evaluation of anti-fouling paint type •Value Proposition • Believe in the credo – “You can only improve what you measure” • Promoting and reinforcing green image in the business • This service has direct impact on optimising daily running cost • Direct impact on improving fuel performance • Provides continuous and close performance monitoring • Ensures drydocking costs and off-hire are kept at minimum level
  16. 16. 18 Maersk Line, Limited Proprietary Emissions thoughts • Cold Ironing – Does it improve a vessel’s carbon footprint? – Would localized LNG or biodiesel electricity production be a better solution? • Are marine diesel lubricants specialized enough to deal with slow steaming, biodiesel use, injection of water into the combustion process and the drive to reduce cylinder oil consumption? – In the near future, vessels will carry cylinder oil blending systems that produce custom blends and are agile enough to customize the cylinder oil several times a day. • Will exhaust gas monitoring systems override Annex VI requirements to trace the pedigree of engine parts that impact NOx emissions? • Will inconsistently applied regulatory limits for emissions cause a shakeout in the industry resulting from small owners not being able to afford vessels that can meet requirements in all ports.
  17. 17. 19 Maersk Line, Limited Proprietary Thank you for your attention
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