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.
