After making the switch from spreadsheets and manual tracking to a more sophisticated platform with automatic tracking, the data starts to pour in and reveal surprising patterns. You might begin to notice things like excessive idle time on routes you thought were very efficient, or higher-than-average vessel maintenance costs. Whatever the case, this new visibility provides knowledge about where changes can be made and how your bottom line can be maximized.
The key is recognizing which patterns are meaningful and implementing operational habits that will actually turn things around by increasing efficiency, reducing unnecessary costs, and even sparking growth.
Fleet Performance Metrics That Matter
Part of recognizing inefficient habits involves knowing where to look. Fleet performance metrics offer a window into different aspects of your barge operations. The specificity of each metric allows you to identify exactly where revenue is leaking and where improvements can be made. Without barge operations analytics you might only have a vague notion of tight margins or reduced profits, but with analytics you can quickly pinpoint the red flags causing these tight margins and where exactly your revenue is leaking—and where it isn’t. Data-driven decisions begin with identifying these red flags.
Every barge operation is different and which fleet performance metrics show leaking revenue will vary. However, there are some areas that frequently fall short for companies, such as:
Fuel efficiency
Fuel efficiency is measured by metrics like ton-miles per gallon or idling times. Ton-miles per gallon can tell you how much work is getting done per gallon of fuel, while idling times can tell you if fuel is being wasted. Comparing these metrics across vessels can tell you which are less efficient, and thus where changes may need to be made. If fuel consumption increases while cargo load remains consistent, potential engine issues, hull fouling, or inefficient routing may be to blame. Higher idling times may be due to inefficient scheduling, cargo loading delays, or poor crew operations.
Fleet utilization
Inland marine fleet utilization is measured by metrics like fleet utilization rate or empty return miles. Consistently low utilization rates are a red flag for wasted revenue-generating potential and excessive or increasing empty return miles indicate inefficient fleet positioning or scheduling.
Time at port
Turnaround times at ports or berth times can help to identify bottlenecks and repeatedly high dwell times. High berth times often indicate inefficient cargo handling, inadequate dispatching and scheduling, or failure to account for terminal constraints.
Maintenance costs
While increasing maintenance costs are sometimes due to rising equipment prices or wages due to inflation, they may also indicate inefficient maintenance practices. A high frequency of unscheduled repairs compared to planned maintenance might mean you need more preventative maintenance measures. Comparing expenses by vessel and repair category, can show where investments in more reliable equipment or adjusted maintenance schedules might be needed to reduce long-term costs.
Patterns in Your Barge Operations Analytics that That Challenge
Long-Standing Assumptions
Barge operations analytics can bring some unexpected—and costly—patterns into the spotlight. Even when these patterns go against gut feelings and long-standing beliefs, it’s important to remember that the data doesn’t lie. Sticking to long standing assumptions can get in the way of profit. When changes are made, the fleet performance metrics will show whether changes are working.
Some patterns to be on the lookout for include:
- Higher speeds are eating profits. While speed is definitely an important consideration, it may be adding unnecessary costs. Fuel efficiency decreases at higher speeds, so looking at the overall picture of cost per job might reveal that speedier trips aren’t helping your bottom line (or reducing emissions). Reducing speeds at certain times, weather, or regions may increase margins.
- Short idling times are adding up. It might seem like a little idling won’t amount to a big difference in profits. But when this is the common attitude of crews spread across different vessels, over time, these excess idle periods add up. When vessel management software and analytics reveal to operators how much profit is actually being devoured over time, many operators choose to improve idle reduction with changes involving shore power, scheduling optimization, and technology upgrades that minimize engine run-time.
- Some routes generate less margin than expected. The most direct route or the most commonly used channel is not always the most efficient one. Often, real-time data regarding weather, river currents, and congestion often shows that alternative routes or delayed departures are more economical and safer. Relying on this kind of data, instead of habit or tradition, for route planning can increase margins.
Tweaking Operational Habits to Boost Profit
So let’s assume that the patterns in your barge operations analytics have been revealed, and now you know where revenue is leaking. Some changes are relatively simple, like switching a new route based on real-time data. But others, like preventing recurring delays that you hadn’t previously noticed, might be more complicated.
Often, the problems are more systemic and might require an array of tweaks to operational habits—both for the crew and decision makers. This will look different, depending on which undesirable patterns you’re trying to fix, but examples of data-guided, profit-boosting changes often include:
- Utilizing automated scheduling based on real-time terminal availability. This allows operators to schedule arrivals to match the fastest loading/unloading times, reducing idling times and delays. Reduced idle time then also reduces fuel waste.
- Optimizing maintenance schedules. Operators can use data to schedule maintenance when vessels are least needed, reducing unexpected downtime and improving fleet utilization.
- Implementing predictive maintenance practices. Tracking vessel performance data, like engine vibration, temperature, and fuel consumption, allows operators to predict equipment failure before it happens. Maintenance can take place before breakdowns occur, reducing equipment costs and downtime.
- Using technology to avoid delays. Using data from the US Army Corps of Engineers (USACE) and AIS (Automatic Identification System), operators can anticipate lock delays, lower water levels, or high-water situations that cause closures and find alternatives.
- Communicating findings with crews. Crews are a vital part of the fleet. Communicating which metrics you are trying to improve and offering incentives for improvements can go a long way when it comes to achieving revenue goals. They may even come up with creative ways to improve cargo handling speeds or maintenance tasks once they know what to look for.
Changes like these result in smoother operations and increased profits. And when they are guided by fleet performance metrics calculated on your fleet’s data, they also prevent leaders from guessing where changes will make the greatest impact. These changes are then reflected in new data and analytics, making them easy to quantify.
Whether you’re ready to begin generating insights with barge operations analytics software or interested in vessel management software that can help you make impactful changes in your operations, BargeOps can help. BargeOps Analytics gives operators insights into where revenue is leaking and what changes need to be made. Our other modules, like BargeOps Vessel Management, can help you implement profit-boosting changes.
Contact us today to set up a demo.
