Optimizing Bulker Routes & Schedules

Speed Matters, But Pitfalls Must be Considered

-Kamal Chadha
Maximizing cargo intake and taking into account time and fuel saved during a voyage may be the obvious ways to keep a healthy bottomline for a shipping venture, but there are several methods that dry bulk shipping companies use to optimize routes and schedules too. These being:
Weather Forecasting: Weather data is crucial in route planning. Companies utilize advanced forecasting tools to predict weather conditions. By avoiding adverse weather, they can minimize possible delays and damage to the ship and cargo.
Real-time Tracking: With the help of GPS technologies, companies can track their vessels in real-time. This allows them to reroute ships if necessary, such as in the case of unexpected obstacles or changes in port availability.
Port Information: Having up-to-date port information is essential. Shipments can be rescheduled based on port congestion, changing tariffs, and labour conditions.
AI-Driven Optimization: Some companies utilize AI and machine learning to predict demand and optimize supply chain routes. This might involve rerouting to closer ports when demand increases or consolidating shipments to maximize load efficiency.
Speed Optimization: Depending on fuel prices and delivery timelines, shipping companies will adjust their speed. This kind of speed regulation can save fuel when it’s more expensive or speed up deliveries when required.
These are just a few examples. The exact strategies will depend on the company as well as the specific challenges and opportunities of each route.
However, the last factor above, Speed Optimization, which is a much touted strategy these days in shipping, needs to be looked at in greater detail.
Speed Optimization involves various strategies to increase efficiency and reduce delays. This may include route optimization, predictive analytics, and load optimization. However, there are associated pitfalls:
Infrastructure: Inadequate infrastructure can hinder speed optimization efforts. Congested ports or poor road conditions within the port and in the hinterland may slow down shipping speed, nullifying any progress made at sea.
Cost: Implementing these efficiency strategies often requires substantial upfront investment in technology and personnel training.
Sustainability Trade-offs: Increasing speed may lead to increased fuel consumption and carbon emissions, raising environmental concerns.

Unpredictability: Despite the best forecasting tools, elements such as weather conditions, equipment failures, or geopolitical issues can introduce unpredictable delays.
Remember, the goal of speed optimization is not only to reduce time but also to provide reliability and predictability in delivery times, which enhances customer trust and satisfaction.

– Marex Media