The WorkBoat Show starts on Wednesday and this year there will be more vendors than ever promoting efficiency measures, services, products and technology.
Last post I indicated that fuel prices were on the rise - right after I said that they fell from $782.50 on 11/15 to $740.00 on 11/24. However, today they were back at $772.50. It's still any one's guess how high they will rise, but one thing for sure, the trend continues to be upward and there will be a lot of emphasis on ways to reduce fuel consumption.... Not just to save on fuel costs but also to reduce emissions.
As you wander around the show this year looking at the various efficiency offerings ask yourself one basic question. If I'm not measuring fuel consumption accurately, how will I know if any of this stuff delivers the benefits?
Marine Fuel Management systems are not only designed to help operators analyze and adjust how the vessel is being operated but to accurately measure fuel consumption to prove other technologies or strategies. The best way to do this is to generate an accurate baseline fuel consumption measurement before application of efficiency technologies or strategies and then again after the measure are in place.
One of the reasons that operators are skeptical of various efficiency measures is that in the past they have used measurements that lacked the accuracy necessary to effectively prove the benefit. A 2%-3% benefit can represent a substantial savings but without MFM it is nearly impossible to measure.
So remember -
Having good information is key to making good business decisions and MFM solutions are key to having good information about your vessels fuel consumption and operating habits.
Monday, November 29, 2010
Friday, November 12, 2010
Wake Up Call! Fuel up ~20% since July!
We continue to see indications that even more significant increases in the price of marine fuel are just around the corner. I reported on Oct 13th that the price of MDO in Houston was $740/ton – which was significantly up from Sept 20th which was up from July 19th. Houston MDO on July 19, 2010 was $650.50 - today its $771.50. So, we’re looking at an increase of $121/ton in only 4 months. On November 4th, Energy and Capital published an article highlighting 6 events they believe will drive oil to $130/barrel by spring of next year. Among these are; the falling dollar, fear of inflation, and increased demands.
There is general consensus that these forecasts are on target which means that once again, as fuel prices begin to rise, companies will start looking for ways to reduce consumption or change their contracts to mitigate the impact of higher prices.
I’ve come to believe that nearly all mariners are from Missouri! The “Show Me” attitude and high concentrations of “the skepticism gene” seem to have slowed the recognition of the obvious; MFM is the best and most cost effective way to find, quantify, institutionalize, and sustain measurable reductions in fuel consumption.
There are more systems and vendors to choose from now than in 2007 when we had a similar run up in prices. Most marine operators waited too long last time to pick a system and MFM is not a “one-size-fits-all” solution. It is essential that the operator understands the success criteria and selects the right vendor.
So here is your wake up call! Without the capability to accurately measure and monitor fuel consumption and key performance indicators that contribute to efficiency, actions to manage fuel use are much less effective and predictable and may leave you without the ability to implement the "right" strategy.
If you haven't done so already,
1)Outline your fuel reduction strategies
2)Determine by vessel type how you will achieve these results
3)List the KPI's you need to measure to prove the results
4)Prepare a short list of MFM vendors that can meet your needs
Having good information is key to making good business decisions and MFM solutions are key to having good information about your vessels fuel consumption and operating habits.
There is general consensus that these forecasts are on target which means that once again, as fuel prices begin to rise, companies will start looking for ways to reduce consumption or change their contracts to mitigate the impact of higher prices.
I’ve come to believe that nearly all mariners are from Missouri! The “Show Me” attitude and high concentrations of “the skepticism gene” seem to have slowed the recognition of the obvious; MFM is the best and most cost effective way to find, quantify, institutionalize, and sustain measurable reductions in fuel consumption.
There are more systems and vendors to choose from now than in 2007 when we had a similar run up in prices. Most marine operators waited too long last time to pick a system and MFM is not a “one-size-fits-all” solution. It is essential that the operator understands the success criteria and selects the right vendor.
So here is your wake up call! Without the capability to accurately measure and monitor fuel consumption and key performance indicators that contribute to efficiency, actions to manage fuel use are much less effective and predictable and may leave you without the ability to implement the "right" strategy.
If you haven't done so already,
1)Outline your fuel reduction strategies
2)Determine by vessel type how you will achieve these results
3)List the KPI's you need to measure to prove the results
4)Prepare a short list of MFM vendors that can meet your needs
Having good information is key to making good business decisions and MFM solutions are key to having good information about your vessels fuel consumption and operating habits.
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