Virtual arrival agreements
When at port, ships keep their auxiliary engines running for electricity, resulting in unnecessary emission of pollutants and over $18bn in fuel waste. Estimates suggest that an eight-hour stay at port can emit 2.5 tonnes of pollutants. Waiting time at ports increases when ships fail to arrive on schedule, causing systemic delays for other inbound vessels, trucks, and trains. While penalties exist for late arrivals, there is little incentive for the port to process cargo faster.
To combat this problem, 100 organizations worldwide have signed up for a new centralized platform, which will bring common standards to maritime navigation systems. This will provide the infrastructure for a seamless electronic information exchange, and open the opportunity for a new type of contract that incentivizes reducing berthing time through the sharing of savings from reduced fuel consumption. Faster turn-around time at ports will allow vessels to optimize their next voyage at the minimum speed necessary to reach their destination just as space is opening up.
Access to information about cargo processing progress at ports is necessary for the algorithms to compute and transmit real-time information on berthing space and compute the shared savings that can be earned by each party through minimizing berthing time for each visit. For this to become a possibility, it requires the ports and shipping companies to enter into contracts so that sharing the required information and savings is agreed upon.
When will contracts between ports and shipping companies, designed to incentivize the minimization of time at port, be implemented?
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