Here are some more results from my survey of marine operators to gauge their thoughts relative to marine fuel management (MFM). If you’ve not taken the survey, it’s still up (see link below) and I will continue to collect additional responses and update the results if anything significant changes over time.
First, lets update information on fuel prices – it’s enough to make you sick! When I made my last post the Houston MDO price for the previous day was $846.50. Yesterday, March 1st, $963.50! That’s an increase of $117 in a month. We all know that the price is high because of events in the Middle East – and it will probably continue to increase until things settle down a bit. Then, we all pray, it come back down – but to what levels and how soon?
In the meantime, depending on how your company operates, the situation may cause significant hardship. If you have fuel management in place today - assuming you picked the right solution - you are ahead of your competition when it comes to knowing what you can do to reduce consumption!
Enough of that. Let me share with you some additional results from the Marine Fuel Management Survey.
When asked about the impact of environmental issues on their companies, survey respondents gave the following answers;
•37% said that they have felt no impact but expected things to change over time
•25% were either unsure of the impact or felt there would be little impact to their business
•25% said that environmental issues would force them to make some costly changes to equipment and/or operations
•AND, 62.5% said that these issues are important to them and they are open to looking at ways to reduce their environmental footprint
What I found interesting was the one question that got 0% response!
•0% said “we already have programs in place to help us operate green”
Now I know that some folks are addressing this issue but obviously, not anyone that has completed the survey so far. However, it may be safe to assume that, as with fuel management, companies are waiting... until... they are forced to do something. And, as with fuel management, waiting until the last minute may be a costly decision. In addition to providing an accurate and beneficial way to monitor and report fuel consumption, MFM is also a tool that can be used to help monitor and report a vessel’s environmental footprint. (For more information on ways MFM can help from an environmental standpoint read my blog post from September 9th)
If you haven’t done so – please add your voice - take the Marine Fuel Management survey – click on the link under “Participate In A Survey” below right.
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.
Wednesday, March 2, 2011
Thursday, January 27, 2011
Over the last few months I’ve done a survey of marine operators to gauge their thoughts relative to marine fuel management. If you’ve not taken the survey yet it’s still up on my blog and I will continue to collect additional responses and update the results if anything significant changes over time.
In my previous blogs I’ve pointed out the current trend in fuel prices so let me continue that practice. My last blog post was in December and at the time Houston MDO was $807.50. Yesterday, January 26th, it was $846.50…. that’s up $39.00. It was $651.50 when I first started reporting fuel prices in July of last year. That’s an increase of $195.00 in only 7 months! It may come down again, and I’m sure many hope it will, but it appears that there are more things percolating in the world economy that would continue to force it upward over time than things that will let if come back down.
So let me share with you some of the results from the Marine Fuel Management Survey to date;
When asked how rising fuel costs would impact their operation survey respondents gave the following answers;
•50% said that their customers paid for the fuel so they were not worried!
•BUT, when asked if their customers were starting to require more accurate accounting and reporting of fuel consumption 75% said yes!
•Over 85% said that rising fuel costs would have a NEGATIVE impact on their business!
•AND, over 85% said it would FORCE them to purchase newer more efficient engines!
•75% said it would force them to re-examine some of their contracts and pricing!
It’s obvious that with fuel prices rising in ways that appear to mark some permanent increases (do you really expect it to go back to $650/ton?), fuel will continue to be one of the biggest expenses facing marine operators and will top many a board room agenda as heads are scratched to find ways to offset these costs and remain competitive.
So again I ask,
Is reducing fuel consumption important to your company? If the answer is yes, how will you address the issue?
If you haven’t done so – please add your voice - take the Marine Fuel Management survey – click on the link under “Participate In A Survey” below right.
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.
In my previous blogs I’ve pointed out the current trend in fuel prices so let me continue that practice. My last blog post was in December and at the time Houston MDO was $807.50. Yesterday, January 26th, it was $846.50…. that’s up $39.00. It was $651.50 when I first started reporting fuel prices in July of last year. That’s an increase of $195.00 in only 7 months! It may come down again, and I’m sure many hope it will, but it appears that there are more things percolating in the world economy that would continue to force it upward over time than things that will let if come back down.
So let me share with you some of the results from the Marine Fuel Management Survey to date;
When asked how rising fuel costs would impact their operation survey respondents gave the following answers;
•50% said that their customers paid for the fuel so they were not worried!
•BUT, when asked if their customers were starting to require more accurate accounting and reporting of fuel consumption 75% said yes!
•Over 85% said that rising fuel costs would have a NEGATIVE impact on their business!
•AND, over 85% said it would FORCE them to purchase newer more efficient engines!
•75% said it would force them to re-examine some of their contracts and pricing!
It’s obvious that with fuel prices rising in ways that appear to mark some permanent increases (do you really expect it to go back to $650/ton?), fuel will continue to be one of the biggest expenses facing marine operators and will top many a board room agenda as heads are scratched to find ways to offset these costs and remain competitive.
So again I ask,
Is reducing fuel consumption important to your company? If the answer is yes, how will you address the issue?
If you haven’t done so – please add your voice - take the Marine Fuel Management survey – click on the link under “Participate In A Survey” below right.
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.
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