DNV GL © 2013 SAFER, SMARTER, GREENER DNV GL © 2013

Smart vessel reporting for decreased administrative burden on crew and easier fleet performance monitoring ashore INNOVATIVE MARITIME SOFTWARE

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Kevin M. Brunn, Head of Clients and Markets – Maritime Software, DNV GL - Software

D i g i t a l S h i p C y p r u s 2 0 1 4

DNV GL © 2013

How are you?

DNV GL © 2013

How are you doing?

No, I mean...

Can‘t he just get on

with it?

What‘s he want from

us?

Doesn‘t he have

anything better to talk

about?

DNV GL © 2013

How is your business, your fleet doing?

What I really mean is...

Performance

Do you know? But the real question is...

- And if you do, how much time and effort does it cost you?

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Pre

sent

atio

n To

pics

How can proven technology help ship owners and ship managers to increase operational efficiency and reduce costs?

! The role of innovative software systems to

a)  reduce the crew and onshore staff‘s administrative burden

b)  Improve data quality and information flows ship – shore – stakeholders

c)  More easily / efficiently monitor voyage performance data ashore for the whole fleet

! By means of

-  digital content for easier information management

-  easier onboard reporting assisted by software to re-use available data and pre-fill many necessary forms

-  integrated information evaluation to enhance operating economy of vessel

-  automated data processing and trending (e.g. of fleet performance data)

! The case for investing in innovation even in tough times

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The amount of administrative information for officers to manage has grown considerably

Information covering an increasing number of requirements needs to be managed and reported to external authorities as well as internal stakeholders (ship manager, owner, charterer):

Port Clearance reporting Environmental reporting Voyage Performance reporting MLC OCIMF Port State Flag State •  The increased burden of paper work

represents a threat to safe and sound navigation

•  Poor paperwork also adds significant stress to the captain and his crew, which again imposes higher risk for accidents

•  Negligence to comply may block port access and lead to severe consequences in terms of reduced earnings, higher cost and bad reputation.

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•  Using the right tool enables you to accomplish more, with better accuracy, using less effort

•  Why not use innovative IT / software technology to make things easier

•  Software technologies and systems exist that can significantly ease the burden on the crew, and automate data collection, processing and reporting, protect your assets, save costs, and reduce risk

The result: −  It is easier to do the task (e.g. collect and report data) −  The potential for human error is significantly reduced −  You have a much better basis (transparency) to use / re-use information

for analysis, trending, decision making and to boost competitiveness

The right tools for the job

"Give me six hours to chop down a tree and I will spend the first four sharpening the axe."

- Abraham Lincoln (US President, 1861 – 1865)

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Software: one of the technology segments in shipping – underinvested in the past

Market segmentation

Ship management, Chartering, Ship operations software

Navigation

Communication

Ship Automation

Pu

re s

oft

ware

H

ard

ware

+ s

oft

ware

Investment level

•  Compared to the annual investment in new ships (~100bn€) the 700m€ software spend is only 0.7%

•  The Oil & Gas industry invests 12bn€ in software p.a., which is compared to their CAPEX (~340bn€) apx. 3.5%

•  investment level in shipping in software is only 20% compared to Oil & Gas industry

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DNV GL is the world-leading provider of software for a safer, smarter and greener future

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•  DNV GL is the world-leading provider of software for a safer, smarter and greener future in the energy, process and maritime industries

•  20 years in the market for fleet management software

•  Experts dedicated to maritime software development and deployment with offices in Germany, Norway, Singapore, Hong Kong, US and Greece

•  ISO 9001, ISO 14001, OHSAS 18001 certified

Company description

•  Highest level of innovation and investment in research & development

•  Highest investment security in the industry, with DNV GL’s maritime competence and healthy financial backing

•  Recognized for building the most user-friendly solutions on the market

•  10 years managed server services, we host your office application

Why we are the market leader

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Why we are the right partner for you

•  Proven record with 300 shipping companies and 4000 vessels

•  Easy-to-use solutions, especially for onboard crew

•  High quality implementation and support services, incl. proven hosting services

•  Long term investment security with solid financial backup

•  Local presence in shipping key locations with global support 24/7

•  High investment level in new features to follow the demands of the client base

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DNV GL's software portfolio for ship management and operations. The most innovative in the industry.

Ship management Ship operations

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ShipManager Crewing Complete crew management package supporting planning, dispositioning, data/certifi-cates mgmt., rest hours, ...

ShipManager Projects Supports dry dock and other projects with planning, tendering and project management

ShipManager Analyzer Business Intelligence solution, gets information out of your different operational data for flexible and powerful reporting and analysis

ShipManager Technical Easy-to-use planned maintenance system with fleetwide technical asset management

Navigator Performance Smart solution for onboard voyage reporting and onshore operations and fleet performance analysis

Navigator Seaware Weather-routing solution with advanced hydrodynamic seakeeping assessments

ShipManager Hull Advanced hull integrity solution supports inspections and thickness measurement processes based on interactive 3D ship model

ShipManager Finance Complete finance system incl. accounting, controlling, cash, Intercompany for shipping CFOs

Navigator Port The Master‘s digital assistant for port clearance, port information, passage planning work & rest records etc.

ShipManager Procurement Complete procurement and stock control solution for all purchase activities in shipping companies

ShipManager QHSE Quality/safety management support for documentation, audits, inspections, findings, incidents, certifcates and safety tasks

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For example:

–  List of Radio Signals Vol. 6

–  IHS Fairplay: Ports and Terminals Guide

–  Arrival / departure checklists for ports

–  Proper forms and documents according to Port State, Flag State, IMO, OCIMF and / or other regulations

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Making use of digital content for better information management

•  More than 1,600 different forms automatically pre-filled •  Electronic reporting eNOA/D •  11,000 ports, terminals and pilot stations •  Arrival / departure checklists for more than 3500 ports •  Weekly content update to vessels covering latest rules and regulations •  Up to 90% reduction in on-board paperwork

Navigator Port contains all this information in digital form and combines it into only one platform (i.e. only one place the crew has to look)

Navigating Officers need several standard resources in order to do their job properly onboard

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Reduce PSC detentions with Navigator Port

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Map - Port State Control MOU's

PSC detention ratio for Jan-Sept 2011:

•  World wide: 4.66%

•  DNV average approx.: 2%

•  Average of 10 major DNV GL - Navigator Port clients: 0,84%

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Example: Easily accessible port information

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Example: Port clearance reports prepared in seconds instead of hours

Necessary forms such as IMO FAL forms that usually take 3-4

hours to fill out can be filled out in minutes

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•  A web-based portal for monitoring of MLC 2006 crew work and rest hour non-compliance.

•  The portal provides monthly overview of the “Percentage of hours worked in non-conformity”, as suggested by OCIMF.

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Shore module – Monitoring your fleet from the office

Fleet

Vessel

Crew

•  Monitoring of vessel certificates

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"  What’s important to make it work?

−  Defining a good baseline

−  Ensuring continuous and good-quality data collection

−  Standardization of monitoring and data collection across the fleet (doing it the same way on all vessel)

−  Don‘t over-burden crew with increased reporting tasks (use already existing records)

−  Easy (automated) processing of data onshore for evaluation / analysis

Efficiency management is a “management system”

This is the case for integrated information collection and evaluation, which you can only achieve with specialized IT systems

Measuring (Planning, monitoring)

Doing (implement energy measures)

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Do you know?

" What was the EEOI as a fleet average vs vessel-by-vessel for Q1 2014 and how did it compare to Q1 2013 and 2012 -  On ME-Asia trades -  Only counting ocean legs -  Only in fair weather conditions

" What were our emissions – CO2, NOx, SOx -  For the whole fleet -  For specific vessels -  As trends or comparing periods year-on-year -  In port only / At sea only

"  How long does it take you and with how much (manual) effort can you determine this?

"  Can you leverage your data – not only for SEEMP – but for better voyage analysis and decision making?

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Navigator Performance makes better use of reported voyage information

There is a lot of voyage reporting done today onboard: •  noon, arrival/departure,

stop, ... •  bunkering, fuel change over, •  same data, different formats, redundant entry

Many of these data are highly valuable if used systematically: •  fuel, lubes ... •  speed, position ... •  voyage, vessel ... And with the right data quality!

A lot of new environmental regulation will need these data: •  SOx, NOx regulation •  CO2 measures •  NGO reporting

Manual input (forms)

Automated readings

(integration)

DNV GL solution

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Beginning with harmonized and structured onboard recording of data "  All environmental, operational and state data "  Frequently reported / periodically reported data

Integrated system capable of making use of all existing operational data

Automatic processing of data onshore "  Generation of reports with tailored contents for, e.g. owner, manager, charterer

For easy analysis, trending, benchmarking, decision making "  Making it easy to make comparisons, draw conclusions, and optimize performance

"  Making it easy to prove compliance / emission values / achieve recognized certification

All with the highest data quality and integrity, and minimal burden on crew

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Simplify data collection, ship-to-shore reporting, and dissemination of data

Combine the right data collection and reporting methods, data processing

Data recorder onboard User-friendly software interface for

crew

Onshore Server Using modern Business

Intelligence (BI) technology Charterer

Manager

•  E-mail push service and analysis on shore for the entire fleet

•  automatic processing and dissemination of data to e.g. owner, manager, and/or charterer with tailored content

•  Onboard recording of all Emissions and Performance related data

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Onboard data entry in easy-to-use software

•  Voyage based structuring

•  Easy to use, smart default values reduce entry errors

•  Simple bookkeeping for fuel and lubes

•  Not ship specific - easy to install on hundreds of vessel at the same time

•  Initialized from Navigator Performance Shore (no set-up work necessary for crew onboard)

Startscreen Navigator Performance onboard

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•  Data entered only once – automatically re-used

•  Smart default values

•  Guided workflow for reporting

•  Plausibility checks (as all reports are linked)

–  e.g. fuel remaining on board against amount bunkered against consumption in daily noon reports....

–  Checks for completeness (e.g. no arrival report of a previous departure report hasn‘t been completed)

Structured reporting for highest data integrity and low crew burden

Navigator Performance Onboard data recorder module

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Onshore data logging - A wealth of data on your fingertips on Server

•  Comprehensive and structured data logging to be accessible onshore

•  Voyage log is compiled as new reports come in from the vessel

•  View online, or receive reports via email

•  User customizable column selection

•  User pre-defined views

•  Export to Excel

Navigator Performance ononshore: Example log abstract

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And throw in some BI Technology helps overcome “traditional” problems

"  Well, I guess we collect this data but in 10 different formats (unstandardized), stored in different software systems, Excel files, databases or in different departments that don’t even talk to each other (the systems … maybe the departments too)

"  It takes 2 people 2 days to pull this information together after it is received in order to make it usable

"  This extensive manual post-processing / taking data from numerous sources and manually entering it into excel sheets leaves much room for error / manipulation

"  We don’t really have a good way to align systems and the ability to combine information from different (often proprietary) sources - Easily.

DNV GL © 2013

Do you know?

" What was the EEOI as a fleet average vs vessel-by-vessel for Q1 2014 and how did it compare to Q1 2013 and 2012 -  On ME-Asia trades -  Only counting ocean legs -  Only in fair weather conditions

" What were our emissions – CO2, NOx, SOx -  For the whole fleet -  For specific vessels -  As trends or comparing periods year-on-year -  In port only / At sea only

"  How long does it take you and with how much (manual) effort can you determine this?

"  Can you leverage your data – not only for SEEMP – but for better voyage analysis and decision making?

DNV GL © 2013

Flexible fleet analysis and reporting capabilities in the office

•  Answering key questions of operations -  EEOI, SEEMP monitoring -  Speed, ME consumption, ME

performance •  Allowing comprehensive emissions

controlling -  CO2, SOx, NOx -  Garbage, certificates -  Standards like CCWG, ESI, CSI

•  Performance monitoring -  for fleet / ship -  over time

•  Supporting bunkering department -  consumption per bunker type -  bunker locations, bunker quality

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Navigator Performance improves ship-to-shore reporting for fleet performance monitoring, voyage and emission reporting

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•  Onboard recording of voyage data, operational and state data

•  Substituting already used daily noon, departure and arrival, bunker and apx. 30 other reports - one data entry for different purposes

•  Plausibility checking and data quality/consistency assurance against ship specific technical data

•  Onshore data collection for entire fleet in operational reports like log abstracts and management reports like EEOI for fleets

•  Allows comprehensive fleet performance monitoring with in-depth analysis capability

•  Supports known environmental reporting schemes as CCWG, CSI, ESI

Onboard recording screen with voyage status overview

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#  The administrative burden related to information, documentation and reporting

#  Time spent on paperwork

#  Incorrect and inconsistent information and forms #  Inconsistent and inaccurate reporting and monitoring

#  Delays – off-hire. #  Fees to handling agents and publications #  Delays in reporting and monitoring #  Overall improvement of ship performance

#  High stress factor related to port clearance operations and focus on safe and sound navigation

#  Injuries and near accidents

CHALLENGES

Challenges of efficient operations can be overcome with proven, professional software systems

Time

Quality

Cost

Safety

IMPACT

DNV GL © 2013

SAFER, SMARTER, GREENER

www.dnvgl.com

The world-leading provider of software for a safer, smarter and greener future

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Kevin M. Brunn Head of Clients and Markets – Maritime Software DNV GL - Software kevin.brunn@dnvgl.com

+49 381 673 11 3110