Maximize Profit: Count Shipping Costs with Voyage Calculation Software

 

In any business or undertaking, there is a proverbial advice to always count the cost ahead of time. It is a timeless advice heeded even by ancient builders and kings before they undertake a large building project or go to war in that order. In the maritime supply chain business, it is vital for success and profitability that you count all possible costs including demurrage expenses against your projected revenue before leaving the port. This is the main reason why modern shipping companies are equipped with voyage calculation systems and other liner shipping software solutions.

Voyage calculation is a complex process where a lot of factors such as distance, load, weather, and sea condition are taken into account. Doing it manually requires a lot of effort and will expose your shipping operations to costly errors. Good thing, you don’t have to rely on spreadsheets and complex systems anymore with voyage calculation software.

Fully integrated shipping software ensures maximum efficiency when assessing the impact of different voyage options. It is not only faster and more accurate; it makes all other shipping tasks easier and more organized. Here are just some of the most outstanding benefits of voyage calculation software:

1.       Easy to install.
Like in any other liner agency software solutions, this software does not require advanced IT skills to install. In most cases, it is as simple as following on-screen instructions and you’ll be up and running in minutes.

2.       Generates comprehensive calculation.
It is easier to make decision when you have all the pertinent data available. Voyage calculation software takes into account integrated voyage distances, arrival time, loading/unloading costs, bunker /port costs, canal fees, draft, vessel speed, oil consumption, and bad weather allowance. It also supports calculation and analysis of revenues, running costs, and expenses.

3.       Supports simultaneous calculations.
To maximize profit, you can run several calculations simultaneously and identify options with best commercial value.

4.       Accurate calculations.
As with all other types of shipping company software, all input data are carefully validated so you can avoid potentially expensive miscalculations.

High Fuel Consumption? Use Voyage Calculation Software

There are many ways to cut operational costs in shipping. One is by cutting fuel consumption to minimum, taking into account skyrocketing fuel costs. To reduce fuel consumption, technical measures (modern ship design, proper maintenance of propellers and hull, use of fuel enhancers, etc.) and operational measures (fleet planning, speed management, weather routing, etc.) may be implemented. Fortunately with advanced technology and extensive availability of integrated shipping software in the market, implementing these measures is no longer as complicated as it was twenty years ago.

Among other options, reducing speed appears to be the easiest and most immediate course of action as far cutting fuel consumption is concerned. However, reducing speed as a way to save fuel is an advice no one in the commercial shipping industry would take, simply because in shipping, quick transit and on-time delivery of shipments are top priorities. Any delay in the arrival of ships will have an effect on the entire logistics flow which can incur significant additional costs, effectively negating any savings made in fuel consumption. Speed reduction is not a bad strategy, but it has to be implemented correctly with help of marine software solutions to produce positive results.

Voyage calculation software helps shipping companies reduce expenses on fuel by helping them manage every aspect of individual voyage. Using this software, operators can optimize vessel speed and route by calculating the effects of wind or draft, waves, water current and other related factors. The system then calculates the length of time travelled, fuel consumption, and estimated time of arrival, allowing operators to optimize the vessel’s velocity to suit weather and ocean conditions while taking into account the ship’s safe operating limit. Shipping companies can use voyage calculation software with other shipping solutions software such as container tracking software to ensure on-time arrival, low fuel consumption, and safe shipping operations.

See also related blog: High Bunker Fuel Leads To Losses For Global Shipping Lines