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What are the most important performance indicators for maritime operations management?

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If you are involved in maritime operations management, you know how challenging it is to optimize the performance of your vessels, crews, and cargo. You need to balance the demands of safety, efficiency, profitability, and sustainability in a complex and dynamic environment. How do you measure and improve your performance? What are the key indicators that reflect your operational excellence? In this article, we will discuss some of the most important performance indicators for maritime operations management and how they can help you achieve your goals.

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Capt. Nitin Behal (MBA, AFNI)

Marine Risk/Quality and Projects, Marine Operations Manager, Marine Superintendent (FPD), CMMI (Delhi Chapter)…
Robert Pfeiff

Professional Maritime Officer: specializing in dynamic positioning systems, ship handling, safety, leadership…
Allan Marsh

Managing Director at Allmar Marine Services

1 Safety indicators

Safety is the utmost priority for any maritime operation, as it helps to prevent accidents, injuries, and losses that can damage your reputation, assets, and stakeholders. To ensure safety, you should monitor and improve several indicators, such as Lost Time Injury Frequency (LTIF), Total Recordable Case Frequency (TRCF), Near Miss Frequency (NMF), and Safety Climate Score (SCS). LTIF measures the number of injuries that result in lost work time per million hours worked. TRCF is the number of injuries that require medical treatment per million hours worked. NMF is the number of incidents that could have resulted in injury or damage per million hours worked. SCS is the average rating of the safety culture and behavior of your employees and contractors based on surveys or audits.

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Capt. Nitin Behal (MBA, AFNI)

Marine Risk/Quality and Projects, Marine Operations Manager, Marine Superintendent (FPD), CMMI (Delhi Chapter), Nautical Institute, Trainer, Master Mariner
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In Maritime industry, we implement a system of Key Performance Indicators (KPI's) to measure wide range of performance indicators. These KPI's include the following: 1. Incidents. 2. LTI's. 3. LWC's. 4. Near misses. 5. SIRE report performances. 6. Port state inspection reports. 7. Emissions. 8. Fuel consumptions. 9. Environmental data. 10. Vessel turn around. Setting targets basis, the industry benchmarks help in achieving the KPI's. Advanced analytics do provide the information on the step-by-step achievement of the KPI's by the various teams in a Maritime Organization. Various Tools provide the options to review and optimize the KPI's. leaders must collaborate with their teams to implement the strategies to achieve the KPI's.

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Robert Pfeiff

Professional Maritime Officer: specializing in dynamic positioning systems, ship handling, safety, leadership, compliance, and project management. Adding value to HOS and our clients at every opportunity.
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Safety reports (I.e. indicators) can be very useful tools in preventing incidents. However, like any self reporting system, it’s is only as good as the tools people are given. If you utilize a reporting software/hardware (safety cards) it must be able to be utilized by the most novice of employees, wherein the data (type of near miss, key words such as PPE, etc) can be easily interpreted. This allows for trends to be recognized. For example if we notice a trend that many incidents have been happening due to lack of proper PPE (in this example gloves), we can proactively look at mitigating this through stronger HSE advisement, as well as review WHY our people don’t want to use the gloves provided; it could be there is a better alternative.

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Allan Marsh

Managing Director at Allmar Marine Services
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In my experience ship staff are generally pretty poor at reporting minor injuries and near misses. An indicator of your safety culture is how well these matters are reported

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Ifeoluwa Abimbola

Second Engineer at BW Gas AS
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Safety is an important KPI for all Maritime Operations and Management. Understanding the process, resources, terminology as well as building a culture of safety is important for every organisation and should be reviewed and further developed to improve it. Many trends and parameters are often generated but the core team users have little understanding of them. It must be user-friendly and simple to understand.

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2 Efficiency indicators

Efficiency is the measure of how well you use your resources and time to deliver your services and products. To maximize productivity and profitability, you want to minimize waste, delays, and errors. Therefore, it is important to monitor and improve efficiency indicators such as fuel consumption (FC), voyage performance (VP), cargo utilization (CU), and turnaround time (TAT). FC is the amount of fuel used per unit of distance or time. VP is the deviation of the actual voyage time, speed, and route from the planned or optimal ones. CU is the ratio of the actual cargo weight or volume to the maximum capacity of the vessel or container. Lastly, TAT is the time spent by the vessel at the port or terminal for loading, unloading, and other operations.

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Allan Marsh

Managing Director at Allmar Marine Services
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There are a lot of measurements there that are outwith the control of operational staff. Be careful not to hit them for that they cannot control

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3 Profitability indicators

Profitability is a measure of the income you generate from your operations and the costs you incur. To maximize returns, you should monitor and improve profitability indicators like revenue per ton-mile (RPTM), operating profit margin (OPM), earnings before interest, taxes, depreciation, and amortization (EBITDA), and return on assets (ROA). RPTM is the amount of revenue earned per unit of cargo weight and distance transported, OPM is the ratio of operating profit to revenue, EBITDA is operating profit plus depreciation and amortization expenses, and ROA is the ratio of net income to total assets.

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Allan Marsh

Managing Director at Allmar Marine Services
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Most successful ship owner I met didn’t need an operating profit! Increase in asset value over three years usually brought in a one million increase!

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4 Sustainability indicators

Sustainability is the measure of how well you manage your environmental, social, and governance impacts and risks. It's important to comply with the regulations, standards, and expectations of your customers, regulators, and society. You should also strive to enhance your reputation, innovation, and resilience. When monitoring and improving sustainability indicators, you should consider greenhouse gas emissions (GHG), energy efficiency (EE), waste management (WM), and social responsibility score (SRS). GHG is the amount of carbon dioxide and other gases that contribute to global warming released by your operations per unit of distance or time. EE is the ratio of the useful output (work or service) to the energy input of your operations. WM is the amount and type of waste generated, recycled, or disposed of by your operations per unit of distance or time. SRS is the average rating of your performance on human rights, labor standards, community engagement, and stakeholder relations based on surveys or audits.

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Allan Marsh

Managing Director at Allmar Marine Services
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Most of the above items are mandatory. One must meet the legal requirements but it is then a judgement whether it is in your overall interest to exceed the minimum

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Allan Marsh

Managing Director at Allmar Marine Services
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Your crew turnover. If you can maintain your crew by providing decent living conditions, well maintained vessels on the basis of doing what the crew recommend (most if the time) good shore support for continuous training, sickness and career development then they will look after the vessels and support managements safety, efficiency and productivity goals

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What are the most important performance indicators for maritime operations management?

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5

1 Safety indicators

2 Efficiency indicators

3 Profitability indicators

4 Sustainability indicators

5 Here’s what else to consider

Mechanical Engineering

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What are the most important performance indicators for maritime operations management?

1

2

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5

1 Safety indicators

2 Efficiency indicators

3 Profitability indicators

4 Sustainability indicators

5 Here’s what else to consider

Mechanical Engineering

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