HYUNDAI MERCHANT MARINE Co.,Ltd.

Digitalization strategy in Shipping companyA case of a Korean shipping company

16 Nov. 2017

Korea – Norway Green Shipping Seminar

○ Shipping Industry today

○ HMM Activities

- Vessel Insight

- Big Data analysis

○ Digitalization strategy

Table of Contents

2

3

○ Shipping Industry today

• Container ship “Hyundai Freedom”

• Nominal Capacity : 5,500TEU

• Born in 1990

• Recorded the world largest container ship

■ Mega Vessels

4

2016

NOx tier III for new builds in North Americ

a

2015 2018 2030

EEDI phase 4?

20252020

Additional ECAs established

Operational requirements to CO2 emissions

HK Recycling convention ratified?

IMO fuel monitoring, reporting and verification

0.1% ECA sulphur limit

EU CO2 monitoring, reporting and verificati

on

Ballast Water Convention - entry into force

BC, noise, bio-fouling and VOC regulated?

EEDI phase 1 EEDI phase 2

EEDI phase 3

0.5% global sulphur cap

EU Recycling Regulation

EU 0.5% sulphur cap

US BW requirements

0.5% global sulphur cap

Carbon pricing / MBMEU recycling effective

■ Environmental Regulation

○ Shipping Industry today

5

■ New Technology

○ Shipping Industry today

6

■ Decision making

○ Shipping Industry today

○ Shipping Industry today

○ HMM Activities

- Vessel insight

- Big Data analysis

○ Digitalization strategy

Table of Contents

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8

○ HMM Activities

• FMS : Fleet Management Sys.• MMS : Maintenance Management Sys.• CAS : Crew Administration Sys.

「Ship’s System」

Smart Ship System

i-VMS

MMS

CAS

EDMS

Account/SAP

「Shore Management」

FMS

MMS

CAS

EDMS

VIP System

Shipmail

• EDMS : Electronic Document Management System• i-VMS : Vessel Monitoring System• VIP : Vessel Integrated Portal

Maintain cooperation with affiliates IT solution company

Advanced ship management by IT technology

■ IT System

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[ Crew Management ]

[ Maintenance Monitoring ][ Fleet Monitoring ]

○ HMM Activities■ IT System

[ Hull Maintenance system ]

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[ Performance management ]

[ Electronic drawing ]

○ HMM Activities■ IT System

[Electronic Document Management System ]

[ Web Integrated Monitoring System]

[ Greenhouse Gas Monitoring System ] [ Energy Efficiency Monitoring System ]

[ Hyundai Intelligent Total Ship Service]

11

○ HMM Activities■ IT System

[ Supply Chain Carbon Calculator ]

VESSEL SHORE

Weather Information

Engine Data

Optimum Voyage

Optimum Routing

Optimum Speed/RPM

Optimum Trim

Economic Speed

(Eco Steaming)

Performance Monitoring

EnginePerformance

Weather Forecast

Machinery Performance

Hull/PropellerPerformance

Cost Analysis

EEOI

OperationInformation

CargoInformation

Evaluation/Improve

Energy Efficiency

GHG Monitoring

ShipPerformance

WeatherNormalization

DamagePrevention

InspectionCost-Saving

Management

Optimum OperationOptimum

Ship PerformanceFleet EnergyManagement

Minimum Cost

Asset Management by vessels

performance ranking

OptimizedBusiness Planning

Safety Operation

Satellite

FeedBack

Regulatory Response

Analysis/Reporting

Automatic Data Gathering(VDMS)

12

○ HMM Activities■ Vessel Insight

• Cost-based voyage optimization• Asset management by vessels performance

ranking• Optimum trim service• Automatic data gathering system• Quantification through weather normalization• Monitoring by real time sensing• Cloud platform for operating service• Flexible service offering• Mobile application• Hull/Propeller condition monitoring• Auto SEEMP1)

• Recommend cost saving• Damage prevention• Loading computer • Sloshing add-on module• Optimized business planning• Energy saving equipment evaluation

Features

• Fully automatic onboard

• Cloud service• Assisted by shore

personnel• Continuous &

consistent

Monitoring

• Selecting ship and company specific measures

• Training• Target setting

Planning

• Tailoring of solution• Interfacing• Required sensors• Turn key delivery

Implementation

• Fleet follow-up• Energy saving devices• Optimization modules• Performance analysis

Self evaluation & improvement

Service Procedure

1) SEEMP : Ship energy efficiency management plan

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○ HMM Activities■ Vessel Insight

14

Wind

○ HMM Activities■ Vessel Insight

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Operational data are collected by automated data collection system.

The data from outside sources e.g. weather routing service is included.

The comprehensive data are analyzed using pre-defined analysis module.

Any navigational abnormalities are identified and the deviation is recognized as a

warning to the shore operators.

Simultaneous warning to the seafarers will lead to the adjustment of the on-board

operation.

○ HMM Activities■ Vessel Insight

○ Shipping Industry today

○ HMM Activities

- Data Gathering system

- Big Data analysis

○ Digitalization strategy

Table of Contents

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17

■ Modeling, analysis and optimization of ship energy efficiency

Hydrodynamic&

Mechanical Engineering

Big data analysis

○ HMM Activities

18

dependent variab le

Independent variab le LWS LGS POWER RPM SFOC FOC DFOC Efficiency FOC/M iles

LWS Linear Linear Pow er Linear Pow er Exp. Exp. Pow er Exp.

LGS Linear Linear Pow er Linear Pow er Exp. Exp. Pow er Exp.

RPM Linear Linear Pow er Linear Pow er Exp. Exp. Pow er Exp.

Draft Linear Linear Linear Linear Linear Linear Linear Linear Linear

Disp lacem ent Linear Linear Linear Linear Linear Linear Linear Linear Linear

Wetted surface Linear Linear Linear Linear Linear Linear Linear Linear Linear

Trim Linear Linear Linear Linear Linear Linear Linear Linear Linear

Wind resistance Linear Linear Linear Linear Linear Linear Linear Linear Linear

POWER Pow er Pow er Linear Pow er Pow er Linear Linear Linear Linear

Propelle r im m ersion Linear Linear Linear Linear Linear Linear Linear Linear Linear

■ Modeling, analysis and optimization of ship energy efficiency

○ HMM Activities

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■ Modeling, analysis and optimization of ship energy efficiency

○ HMM Activities

20

●: BFS1~6●: BFS7~9

●: BFS1~3●: BFS4●: BFS5~9

■ Modeling, analysis and optimization of ship energy efficiency

○ HMM Activities

21

SFOC

8 10 12 14 16 18 20 22

LGS

200

220

240

260

280

300

320

340BFS4

BFS5

BFS6

BFS7

BFS8

BFS9

6 8 10 12 14 16 18 20 22 240

500

1000

1500

2000

2500

6 8 10 12 14 16 18 20 22

LGS

200

220

240

260

280

300

320

340

360

380 BFS2

BFS3

BFS4

BFS5

BFS6

BFS7

BFS8

6 8 10 12 14 16 18 20 22 240

200

400

600

800

1000

1200

1400

1600

1800

2000

8 10 12 14 16 18 20 22

LGS

30

40

50

60

70

80

90

100

110

120

130

BFS4

BFS5

BFS6

BFS7

BFS8

BFS9

6 8 10 12 14 16 18 20 22 240

200

400

600

800

1000

1200

1400

1600

1800

2000

8 10 12 14 16 18 20

LGS

30

40

50

60

70

80

90

100

110

120BFS4

BFS5

BFS6

BFS7

BFS8

BFS9

6 8 10 12 14 16 18 20 22 240

500

1000

1500

2000

2500

FOC

East-bound West-bound

■ Modeling, analysis and optimization of ship energy efficiency

○ HMM Activities

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Input

6 8 10 12 14 16 18 20 22 240

500

1000

1500

2000

2500

6 8 10 12 14 16 18 20 22

LGS

200

220

240

260

280

300

320

340

360

380 BFS2

BFS3

BFS4

BFS5

BFS6

BFS7

BFS8

Ship energy efficiency

Model

Fuel Consumption,

Speed

Output

■ Modeling, analysis and optimization of ship energy efficiency

○ HMM Activities

○ Shipping Industry today

○ HMM Activities

- Data Gathering system

- Big Data analysis

○ Digitalization strategy

Table of Contents

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○ Digitalization strategy

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■ On going project

Container Box Tracking

Condition Based Maintenance

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■ On going project

3D Printing

Smart Glass

○ Digitalization strategy

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■ On going project

Hybrid Cloud Platform

○ Digitalization strategy

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■ Autonomous vessels

Autonomous vessels and crewless ships could be coming soon

(From the Shipping News, 1 Nov. 2017)

○ Digitalization strategy

Thank you for your attention !

HYUNDAI MERCHANT MARINE CO., LTD 28