[310712.EN.SEA] Maersk : Key Performance Indicators Saved Firm US$90 Million Over 3 Years

DANISH shipping giant Maersk Line says it has saved nearly US$90 million in energy spending over three years through course corrections formulated from the use of Key Performance Indicators (KPI).

The world biggest shipping line said it has achieved the savings in energy costs by measuring the performance of individual vessels and raising awareness on fuel consumption.

Maersk KPIs have been used for years to enhance internal corporate functions, and in 2009 they were first applied to vessel operations, reports Digital Ship magazine.

Vessel KPIs have evolved through close cooperation between the ships, Maersk Line Vessel Management and Maersk Maritime Technology, which are in charge of the Maersk Ship Performance System (MSPS).

After implementation of the programme by the crew and fleet groups, the company has been able to pinpoint some of the savings made over the last three years. For example, Maersk Line notes that 160,000 tonnes of fuel have been saved as a result of higher propulsion efficiency, contributing to the $90 million figure, a total which does not even include savings from other energy initiatives such as trim optimisation or basic load reduction.

"If you can't measure something, you can't control it. If you can't control it, you can't improve it. It is essential to realise that the scorecards are only a valuable tool if they facilitate decision making among stakeholders," said Maersk vessel performance manager Anup Rajan.

After seeing positive initial results from the KPI process for Maersk's own fleet, more than 150 vessels were upgraded with MSPS in the second half of 2011.

"We're confident that, although we are introducing rather new standards in the industry, we will be able to drive similar performance improvements in the chartered fleet," says Flemming Bo Larsen, who head's the company's energy efficiency drive.

The company says that its largest owners of chartered vessels have now all received scorecards and benchmarks on energy, starting from January 1. Each of the KPIs will be rated on a monthly basis and merged into an overall KPI score for each charter owner. More owners will be added on an ongoing basis.

Source : HKSG.