1. Programa de Atualização Profissional
Vessel Delay Risk Mitigation
methodology summary
by Gláucio Bastos, M.B.A., Ch.E.

2. Programa de Atualização Profissional
abstract
 target: by evaluating the possibility of delays to
meet fleet timelines and its impact on operating
costs, mitigation measures are proposed and
compared as to their effectiveness, cost and return

3. Programa de Atualização Profissional
need
 one of the main parameters for measuring the performance
of the shipping company is deadlines meeting
 thus a key management issue is: to what extent the
company must bear the additional costs for reliability
improving
 through efficient tools for analysis of delays possibilities and
its prevention feasibility, the shipping company is able to
assess the value of time to determine the scope for
improving their service reliability for a fair price which
customers are willing to pay

4. Programa de Atualização Profissional
issue description
 during a journey can occur events such as: bad weather
condition faced by the vessel, congestion and lack of
infrastructure in ports of call, mechanical breakdowns, etc.
 cause significant delays and consequently failed in
preliminary schedule meeting which has affected its
robustness and with it the shipping company may suffer
revenue losses
 then should be explored all alternative schedules that lead
to quality
 schedule robustness is an indicator of the performance of
the service provided by the shipping company

5. Programa de Atualização Profissional
issue description
 a robust design gives the company the ability to handle
disturbances during operations and may be required
operational deviations reflecting changes from the original
schedule
 an example is the planned further increase in speed for a
gain in travel time
 other generic strategies that can be mapped to the
generation of more robust schedules:
 increase in the rate of cargo handling to face delays in
time port
 canceling a port of route searching for time saving
regarding next scales

6. Programa de Atualização Profissional
issue description
 the implementation of a strategy to mitigate the delay has
its cost, additional to that planned for the route
 some more knots on speed cause a marked shift in the
curve of fuel consumption
 canceling a range of ports for saving time greatly affects the
profit, penalized by no delivery of the cargo or no use of
scheduled services at the port besides the negative
reflection in attractiveness for new customers due to the
low quality of service provided by business

7. Programa de Atualização Profissional
issue description
 strategies to attack the causes of the delay should be
carefully examined to assess their impact on the tangible
and intangible costs of fleet
 should be chosen for implementation those ones that bring
the greatest operational, economic and commercial benefits
to the company's activities

8. Programa de Atualização Profissional
related data
 the problem is worked on the same data
presented for the fleet whose programming
was previously optimized

9. Programa de Atualização Profissional
solution
 for each cargo is constructed a decision tree considering as
goal the arriving at destination port within the contracted
time window
 to each variable the loading port time and the travel is
added a constant - one to port time and one to travel - as
safe limits before considering the occurrence of a delay
 causes of risk are: loading port time and travel time
 risk events: delays at the loading port and the journey

10. Programa de Atualização Profissional
solution
 risk symptoms: measurements of the delays at the loading
port and the journey
 performance measures:
 fee charged by the port for delay
 cost of the speed increase: cost of additional fuel spent
by accelerating
 gross profit: freight revenue less operating costs in ports
and in travel
 cost of missing a loading port and / or unloading port:
fee charged by the customer plus the marketing factor
cost (depending on the port) plus the cost of cargo
rolling less the economy by port default (operating costs
not incurred at the port)

11. Programa de Atualização Profissional
solution
 mitigation measures, alternatives to each other, are:
 by decision making:
 nominal speed increasing
 omission of the loading or unloading port
 by decision rule included in planning:
 omission of the unloading port
 nominal speed increasing

12. Programa de Atualização Profissional
solution
 actions taken by decision depend on the intuition of the
fleet manager about when to intervene in the journey of the
ship, so that the benefits are felt in subsequent scales
 automated measures are adopted by the planning method
when the delay determined in the previous step reaches a
given significance level:
 omitting the unloading port happens when the vessel's
arrival at the destination is imminent but with an
unacceptable level of delay
 the speed increase occurs when the loading port exit
occurs at an unacceptable delay level, kept unloading at
the port of destination

13. Programa de Atualização Profissional
results
Cargo # Init_sched Sh_sp_incr Omit_ld_pt Omit_ud_pt Omit_ud_pt_ud_d_rl Sh_sp_inc_ud_d_rl
10 649.690 650.690 -556.675 464.936 436.181 649.690
14 492.065 493.065 -718.344 244.801 216.735 492.065
15 372.016 373.016 -871.152 109.467 70.304 372.016
16 568.636 569.635 -491.586 406.923 377.801 568.636
22 572.687 573.686 -660.320 350.095 318.327 572.687
24 609.674 728.354 -543.862 454.440 401.373 609.674
25 274.379 415.538 -678.218 96.521 61.930 274.379
27 286.179 287.179 -352.176 181.453 150.544 286.179
29 273.726 274.726 -360.176 167.566 138.092 273.726
3 240.111 241.111 -383.338 130.124 97.220 240.111
31 348.300 349.300 -871.152 84.270 46.588 348.300
32 1.079.110 1.080.111 -1.382.176 568.702 541.412 1.079.110
42 235.777 236.776 -375.404 127.453 95.982 235.777
46 955.367 956.367 -1.346.392 459.754 431.784 955.367
5 764.786 765.786 -938.598 434.357 400.462 764.786
-1.500.000
-1.000.000
-500.000
0
500.000
1.000.000
1.500.000
10
14
15
16
22
24
25
27
29
3
31
32
42
46
5
Net income -
Cargo #
Init_sched
Sh_sp_incr
Omit_ld_pt
Omit_ud_pt
Omit_ud_pt_ud
Sh_sp_inc_ud_d
Cargo shipping delayrisk mitigationscenarios

14. Programa de Atualização Profissional
results
 results should be considered only in terms of comparison
between the mitigation measures since it is due to gains,
additional charges and delay limits triggers that are specific
for each measure which although in such example can
cancel each other but under other data can be significant
 the measure that boasts for all cargoes the biggest gain in
net gross profit is the nominal speed increase by decision
making
 nominal speed increase by automatic planning decision rule
showed minimal gains above the original solution,
considering that at this example it is triggered just in case of
some delay level is reached in loading port which has a low
occurrence probability

15. Programa de Atualização Profissional
results
 gains generated by the discharging port omission by
decision making are below those of the original solution
because, although in this case the trip to the intended
destination is canceled, the gains are outweighed by the
penalties generated by port omission
 gains generated by the discharging port omission by
automatic planning decision rule are still slightly below
those of the previous measure because in that case the trip
is not canceled (then your costs are incurred) but only the
port unloading

16. Programa de Atualização Profissional
results
 the worst results are those for the loading port omission
because, although in this case the trip is canceled also,
loading and unloading are also canceled and are thus
incurred the penalties generated by 02 ports omission
 however, higher the cost penalty cost function greater the
robustness and planning costs borne by the company
 next figure shows time gains for each cargo on winning
strategy - nominal speed increase by decision making -
compared to the original schedule

17. Programa de Atualização Profissional
results
s
Initial schedule (hrs) - time from start Sh spd incr mit strat (hrs) - time from start
Cargo # Lv_ld_pt Ar_ul_pt Lv_ul_pt Ld_pt_tm Ld_pt_del Voy_tm Voy_del Ud_pt_tm Ul_pt_del Cargo # Lv_ld_pt Ar_ul_pt Lv_ul_pt
10 21,06596 432,806 453,8719 18,61596 2,45 408,16 3,58 18,61596 2,45 10 21,06596 322,2424 343,3084
14 27,32404 285,6448 311,0627 24,87404 2,45 254,7407 3,58 22,96787 2,45 14 27,32404 230,4417 255,8596
15 29,80141 441,5414 471,3428 27,35141 2,45 408,16 3,58 27,35141 2,45 15 29,80141 330,9779 360,7793
16 18,32396 463,0344 482,5145 15,87396 2,45 441,1304 3,58 17,03012 2,45 16 18,32396 318,0298 337,51
22 25,71725 344,0665 368,0115 23,26725 2,45 314,7692 3,58 21,49498 2,45 22 25,71725 267,3643 291,3093
24 20,71004 374,3174 395,0275 18,26004 2,45 350,0274 3,58 18,26004 2,45 24 20,71004 321,8865 342,5966
25 24,66436 404,6147 427,7241 22,21436 2,45 376,3704 3,58 20,65941 2,45 25 24,66436 324,3702 347,4796
27 14,74935 331,0986 346,7062 12,29935 2,45 312,7692 3,58 13,15763 2,45 27 14,74935 254,867 270,4746
29 14,74935 316,0986 331,7062 12,29935 2,45 297,7692 3,58 13,15763 2,45 29 14,74935 243,3964 259,004
3 17,17234 347,1333 363,2454 14,72234 2,45 326,381 3,58 13,66215 2,45 3 17,17234 220,29 236,4021
31 29,80141 425,7014 455,5028 27,35141 2,45 392,32 3,58 27,35141 2,45 31 29,80141 319,3308 349,1322
32 47,44014 314,2344 358,0921 44,99014 2,45 263,2143 3,58 41,40763 2,45 32 47,44014 264,9107 308,7684
42 16,93193 332,2392 348,131 14,48193 2,45 311,7273 3,58 13,44177 2,45 42 16,93193 220,0496 235,9413
46 46,35581 314,3204 357,1841 43,90581 2,45 264,3846 3,58 40,41365 2,45 46 46,35581 249,4735 292,3371
5 31,6749 311,6835 343,3584 29,2249 2,45 276,4286 3,58 29,2249 2,45 5 31,6749 260,0278 291,7027
Cargo # 10 14 15 16 22 24 25 27 29 3 31 32 42 46 5
Ship # 1 12 3 11 2 7 5 13 13 9 3 6 8 4 10
Load port depart 21 27 30 18 26 21 25 15 15 17 30 47 17 46 32
Interm load pt arrive 21 27 72 18 26 21 25 49 Cg27 17 Cg15 47 17 46 32
Interm load pt depart 21 27 102 18 26 21 25 64 17 47 17 46 32
Unload port arrive 433 286 498 463 344 374 405 365 316 347 426 314 332 314 312
Unload port depart 454 311 558 483 368 395 428 397 332 363 456 358 348 357 343
442 331
471 347
10 10 10
10
10
1 1 1
1
1
12 12 12
12
12
3
3
3
3
3
11 11 11
11
11
2 2 2
2
2
7 7 7
7
7
5 5 5
5
5
13
13
13
13
13
9 9 9
9
9
6 6 6
6
6
8 8 8
8
8
4 4 4
4
4
Mit 1 Mit 1 Mit 1
Mit 1
Mit 1
Mit 12 Mit 12 Mit 12
Mit 12
Mit 12
Mit 3
Mit 3
Mit 3
Mit 3
Mit 3
Mit 11 Mit 11 Mit 11
Mit 11
Mit 11
Mit 2 Mit 2 Mit 2
Mit 2
Mit 2
Mit 7 Mit 7 Mit 7
Mit 7
Mit 7
Mit 5 Mit 5 Mit 5
Mit 5
Mit 5
Mit 13
Mit 13
Mit 13
Mit 13
Mit 13
Mit 9 Mit 9 Mit 9
Mit 9
Mit 9
Mit 6 Mit 6 Mit 6
Mit 6
Mit 6
Mit 8 Mit 8 Mit 8
Mit 8
Mit 8
Mit 4 Mit 4 Mit 4
Mit 4
Mit 4
Mit 10 Mit 10 Mit 10
Mit 10
Mit 10
0
100
200
300
400
500
600
Load port depart Interm load pt arrive Interm load pt depart Unload port arrive Unload port depart
hrs
10
1
12
3
11
2
7
5
13
9
6
8
4
Mit 1
Mit 12
Mit 3
Mit 11
Mit 2
Mit 7
Mit 5
Mit 13
Mit 9
Mit 6
Mit 8
Mit 4
Mit 10
Ship#
Time run for each shipservice comparing Initial Schedule withShipSpeedIncrease MitigationStrategy Schedule