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McKinsey & Company: How to transform your shipping company

Digital tools can help to identify trends, optimise crewing spend and the overall procurement envelope, and streamline repair, maintenance, port, drydocking, and bunkering costs.

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Global management consulting firm McKinsey & Company on Thursday (1 December) published an article on how digitalisation can help the shipping industry cope with uncertainties and help streamline bunkering costs. The following are excerpts from the article:

Players in most shipping subsectors have enjoyed a profitable couple of years. However, the industry faces a complex, rapidly changing environment. Macro uncertainties—the threat of recession, geopolitical volatility, crew shortages, escalation of operational costs, and fluctuations in cargo demand—affect all aspects of operations. In addition, there is increased environmental regulation to get to grips with, and much uncertainty around decarbonisation pathways.

Crucially, the shipping industry lags behind in digitisation, a key enabler for prompt decision making, operational and cost efficiencies, and improved performance. This article introduces a transformation framework to help shipping companies navigate these choppy waters. In particular, it explores how data and analytics can be leveraged to gain competitive advantage and unlock value.

Cost optimisation

Cost-optimisation levers can be enabled by collecting and analysing data and building digital applications to inform decision making. Digital tools can help to identify trends, optimise crewing spend and the overall procurement envelope (spares, stores, provisions), and streamline repair, maintenance, port, drydocking, and bunkering costs.

Client experience has shown that various levers can improve cost performance in specific areas of shipping:

Crewing: Shipowners could leverage analytical tools to identify the right talent, improve ship-to-shore communications, and revamp safety- and quality-assurance procedures. Data tools could aid in optimising factors such as crew remuneration, number of crew onboard, nationality mix, medical claims and welfare, travel scheduling, training, and recruiting.

Procurement: A spend-intelligence dashboard could provide real-time insights and transparency. Further, digital tools could standardise the procurement process, define supplier-specific strategy, consolidate purchases, and reduce unplanned spend.

Shipping companies that rely on manual processes often struggle to track their expenditure by supplier, location, or even product or service type. This can cause a lack of comprehensive planning of purchases such as spare parts. Suppliers cannot be selected in a systematic way, and companies miss out on volume discounts and delivery-pool savings. They may also incur higher operating expenses with emergency procurement and repairs.

Such companies could invest in technology that provides digital dashboards. Here, real-time insights and analysis across key metrics can be accessed easily. Spend details can be sorted by type, category or organisation, and details made instantly available by clicking on a specific deep-dive area (Exhibit 5).

Screenshot 2023 01 03 at 12.50.29 PM

Dry docking: Digital solutions are now available to optimise dry-docking processes and ensure full transparency. These can help to standardise processes, gain greater negotiation power with suppliers, optimise timing and location, pool vessels to benefit from scale and synergies, and increase the vendor pool.

Bunkering: Digital techniques can be used to implement vessel upgrades, find optimal bunkering locations, obtain better bunkering bids, execute hedging strategy, and review vendor contracts.

Consumption can be reduced with optimised vessel execution and performance-management mechanisms. For example, one shipping operator was looking to optimise varying fuel consumption. However, fuel and emission data were lacking. There was also a lack of transparency about captains’ voyage decisions, and no comparisons of their performance. The solution was the installation of a new data interface between vessels and central IT. This created transparency around key levers, such as speed, slip, trim, and fuel type, and leveraged automatic identification systems (AIS) and weather data for route mapping and fuel-type usage. A dashboard was developed to report key metrics to fleet operations and captains (Exhibit 6).

Screenshot 2023 01 03 at 12.50.45 PM

Note: The full article titled “How to transform your shipping company” can be found here

Photo credit: Chris Pagan on Unsplash / McKinsey & Company
Published: 3 January, 2022

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Methanol

CMA CGM, SIPG and Shanghai Electric Group join forces on green methanol bunkering

Companies signed a long term supply cooperation deal to develop a fully integrated green methanol value chain, which is expected to propel Shanghai into a regional green methanol bunkering hub.

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CMA CGM, SIPG and Shanghai Electric Group join forces on green methanol bunkering

French shipping giant CMA CGM on Friday (21 March) said it has signed a green methanol long term supply cooperation agreement with SIPG Energy and Shanghai Electric Group on 20 March to develop a fully integrated green methanol value chain. 

The agreement is expected to accelerate Shanghai Port's development into a regional green methanol bunkering hub, securing its first-mover advantage in the low-carbon transformation of shipping and further consolidating Shanghai's leadership in global maritime trade.

“This collaboration underscores CMA CGM's leadership in maritime decarbonisation and strengthens our partnership with major Chinese partners,” the company said. 

Under the agreement, Shanghai Electric Group will provide mid-to-long-term green methanol fuel supply for CMA CGM. In partnership with SIPG, green methanol will be transported via land-sea combined logistics from Shanghai Electric’s production base in Taonan to Shanghai Port, the world's largest container port. 

Shanghai Electric said the agreement will form a complete “production-transportation-bunkering” chain. The company further elaborated that its Taonan project is an important foundation for it in the field of hydrogen-based green fuels. 

CMA CGM, SIPG and Shanghai Electric Group join forces on green methanol bunkering

Firmly committed to the energy transition in shipping and  its use of alternative marine fuels, CMA CGM said it has set a Net Zero-Carbon target for 2050.

Last month, CMA CGM IRON, the group's first dual-fuel methanol made its maiden call in Singapore. With a container capacity of 13,000 TEUs, it is the first in a series of 12 new dual-fuel methanol vessels for CMA CGM.

“At CMA CGM, we address the challenges related to the availability of clean fuels. Our partnership strategy drives us to implement innovative and sustainable solutions to achieve our energy transition objectives,” said Farid Trad, Vice President of Bunkering & Energy Transition of CMA CGM Group. 

“Our landmark collaboration with SIPG and Shanghai Electric Group marks a new milestone and shows our commitment to Net Zero-Carbon by 2050.”

 

Photo credit: CMA CGM
Published: 21 March, 2025

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Events

China: Speaker lineup revealed for Green ShipTech Innovation Asia Summit 2025

Key issues that will be discussed at event include low-carbon ship construction and transformation, latest green technology equipment, alternative marine fuel selections and supply status.

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Green ShipTech Innovation Asia Summit 2025 to be held in Shanghai on 16 May

Shine Consultant, the organiser of Green ShipTech Innovation Asia Summit 2025, on Thursday (20 March) announced the line-up of speakers for the event to explore the new trends in the shipping industry. 

With over 300 attendees expected to attend, the Green ShipTech Innovation Asia Summit 2025 will be held in Shanghai, China, on 16 May. 

Themed Diversified Innovation for Sustainable Green Transformation, the summit will host a main forum called Green Development Strategies and Pioneer Practices Towards Zero Carbon Goals and two sub-forums, Green Shipbuilding and Retrofitting Forum and Green Shipping Ecosystem Cooperation Forum. 

It will focus on key issues such as low-carbon ship construction and transformation, the latest green technology equipment, alternative marine fuel selections and supply status and digital ship management technology. 

Speakers for the summit include:

  • Li Zhengjian, Chief Expert/Senior Engineer, the Chinese Society of Naval Architects and Marine Engineers
  • Karim Fahssis, Decarbonization China Head, Maersk
  • Lu Yanhui, Vice President, COSCO Shipping Heavy Industry Co., Ltd
  • Liu Jianfeng, Chief Technologist, Shanghai Waigaoqiao Shipbuilding Co., LTD.
  • Li Zhonggang, Vice President, China Ship Design & Research Center Com.,Ltd.(CSDC)
  • Bo Cerup-Simonsen, CEO, Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping
  • Keiichiro Nakanishi, Managing Executive Officer, MOL(Mitsui O.S.K. Lines, Ltd.)
  • Sun Haihua, Deputy Director of Shanghai Arbitration Commission, Deputy Chairman and Secretary-General of Shanghai International Shipping Center Development and Promotion Organization
  • Yan Wei, Vice President, Shanghai Maritime University
  • Ye Mao, Deputy President of the Design Research Institute, Wuchang Shipbuilding Industry Group Co., LTD.
  • Wee Meng Tan, Chief Projects Officer, Global Centre for Maritime Decarbonisation
  • Yuan Chao, General Manager of Equipment, CSSC (Hong Kong) Shipping Company Limited
  • Zhang Yunxing, Head of the Ballast Water Convention Research Office, Hebei Maritime Safety Administration
  • Zhang Yong, Vice President, Shanghai Academy of Development & Reform
  • Gou Yingdi, Director of Sustainable Development and General Manager of the Technology and Development (Innovation) Center, Seacon Shipping Group
  • Zhao Cuiyun, Deputy Director of the Institute for the Construction of the Shipping Center and Director of the Green Shipping Research Office, Shanghai International Shipping Institute
  • Cao Xianfeng, Deputy Chief Digital Planner, COSCO Shipping (Qidong) Offshore Co., Ltd

Conference Framework

May 16 (am) 

Plenary Session: Green Development Strategies and Pioneer Practices Towards Zero Carbon Goals

May 16 (pm)

Sub-Forum I: Green Shipbuilding and Retrofitting Forum
Sub-Forum II: Green Shipping Ecosystem Cooperation Forum

Key Topics

  • Maritime regulatory focus under policy guidance towards zero-carbon goals
  • Global green ship type product key technologies and applications
  • Analysis of paths to improve the efficiency of existing ships
  • How shipping companies can achieve sustainable green transformation
  • Innovative design methods for green ship types
  • Development and design of methanol dual-fuel ship types
  • Innovation and application of ship engines and propulsion systems
  • Technological application and outlook of wind energy as auxiliary power for ships
  • Prospects and challenges of ammonia fuel application
  • Innovation in new marine fuels and supply systems
  • Upgrading of ship battery systems to meet shipping emission reduction
  • Fluid power energy-saving technology and practice to promote the green and low-carbon development of the shipping industry
  • Green ship repair, intelligent painting and VOCs management in ship and marine engineering
  • Exploration and practice in digital transformation and intelligent upgrading of the ship repair and modification industry
  • Practice of ship energy consumption data analysis and carbon intensity management
  • SCR technology innovation for NOx reduction in ship diesel engines
  • The latest technological applications of "carbon capture" in the shipping industry
  • Ballast water management systems in line with international standards
  • Shore power systems combined with green electricity to assist shipping decarbonization
  • Supply status and choice analysis of the marine green fuel market

Host:

  • Shanghai International Shipping Center Development and Promotion Organization

Co-organisers:

  • Shanghai Maritime University 
  • Shanghai Institute of Navigation
  • Jiangsu Association of Shipbuilding Industry
  • Jiangsu Society of Naval Architects And Marine Engineers

Supporting Organisations:

  • Shanghai Port Association
  • Hubei Association of Shipbuilding Industry
  • Shanghai International Shipping institute

Interested parties may contact:

Yulia Zhang
T: (+8621) 6095 7179
M:(+86) 158 3615 6079 (Also on WeChat)
E-mail: [email protected] 

Note: More information on the summit, including registration, can be found here

 

Photo credit: Shine Consultant
Published: 21 March, 2025

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Alternative Fuels

Molgas commences bio-LNG bunkering operations in Port of Zeebrugge

First deliveries of bio-LNG started in January, with multiple operations running smoothly through its logistics network and more deliveries are expected in the coming weeks, says Molgas.

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Molgas commences bio-LNG bunkering operations in Port of Zeebrugge

Madrid-headquartered Molgas Energy Group on Thursday (20 March) said it has started the supply of bio-LNG at the Port of Zeebrugge. 

The first deliveries of bio-LNG started in January, with multiple operations running smoothly through its logistics network. 

“More deliveries are already scheduled in the coming weeks,” it said in a social media post. 

The company said the expansion marked a significant step forward in its commitment to delivering sustainable and low-carbon energy solutions across Europe. 

“The Port of Zeebrugge as a key hub for bio-LNG fuelled vessels dealing with FuelEU Maritime, enabling us to serve the marine customers efficiently,” it said. 

“Through our Multi Truck to Ship (MTTS) process, we successfully manage deliveries of 200-300 tonnes simultaneous to the vessels operation (SIMOPS), demonstrating our operational excellence and flexibility.”

 

Photo credit: Molgas Energy
Published: 21 March, 2025

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