New contract system for JIT arrival could save 15% on fuel

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New approach delivers “most of the benefits of ‘just-in-time’ arrivals, without most of the hassle”

Many ships could reduce speed, save 15% on fuel and spend less time at anchor using a new form of contract, according to NAPA (file image)

Posted on July 10, 2022 at 3:42 p.m. by

The Maritime Executive

NAPA has partnered with international law firm Stephenson Harwood and a group of leading maritime players to provide a legal/technical solution to the pervasive phenomenon of “sailing fast then waiting” (SFTW), which wastes fuel on unnecessary but contractually incentivized fast rides. transits. As an example of the impact of this arrangement, the bulk carrier fleet spends approximately 10% of its time at anchor, awaiting cargo operations. Slow sailing with just-in-time arrival is more efficient, but is hampered by poor communications between ships and ports, and savings are unevenly distributed among charter party participants.


NAPA’s “Blue Visby Solution” is based on software-optimized speed and weather routing, but incorporates a contractual framework to address the problem of so-called “split incentives.” This framework introduces a sharing mechanism that allows shipowners, charterers and freight interests to share the costs and benefits of speed reduction, including fuel savings, the costs of a longer journey and the value financial reductions (if applicable). The new contract language is consistent with normal marine contracts, according to NAPA, without the need for new regulations.


Based on historical voyage data, NAPA predicts that ships using this arrangement could reduce speed by an average of one knot on nearly 90% of their voyages. That may not seem like much, but the savings from reduced idle time at anchor and reduced fuel burn en route would amount to emissions savings of around 15%. This would be one of the most significant operational measures ever implemented for CO2 intensity reduction (without any vessel modifications or new fuels).


“We are delighted to contribute to this unique solution, which brings most of the benefits of ‘just in time’ arrivals, without most of the hassle. Blue Visby complements trip planning and weather routing software by providing an hour of target arrival and allows users to optimize routes and speed to save fuel without worrying about losing a competitive advantage,” said NAPA Shipping Solutions’ Executive Vice President. “And the best part of it all is that everything this can be done now and with a very small initial investment, as Blue Visby does not require any additional on-board systems.”


In addition to the software/technical solution provided by NAPA, Stephenson Harwood LLP provided legal advice on contract language to make the solution work in actual charter agreements.


Other early consortium partners include Anglo-American, Carbon Trust, ClassNK, CMB, Drewry, Ocean Conservancy, Lloyd’s, UK Hydrographic Office, University of Manchester, Tankers International and Vertis.

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