What is economic speed?
Economic speed, is the speed whereby the maximum time-charter-equivalent (TCE) is achieved = net revenue / voyage duration
The economic speed is not static but dynamic, it varies with the actual freight rates, fuel prices, ship specific speed-consumption data and other commercial data like port expenses, commissions and so on.
How can the optimum economic speed be calculated?
By linking the ship specific speed-fuel consumption data to the voyage specific commercial data, Blue Skies Smart Sailing developed a program which uses algorithms to calculate the optimum speed to prosecute a voyage. This program, the ‘Optimum Dynamic Speed’ program, will ensure that, under any given market conditions, the vessel will operate at the optimum speeds to ensure that the maximum time-charter-equivalent (earning potential) is achieved.
Can further economies be achieved?
yes, in case there is any idle time in the sailing schedule which can be converted in to fuel savings. This idle time allows the vessel to prosecute the voyage leg with reduced speed which will result in reduced fuel consumption resulting in reduced fuel expenses.
This program, the ‘Idle Time to Cash Converter’, calculates the fuel costs for all possible speed-consumption combinations and then selects the one which ensures that the vessel arrives not later than the required arrival time but does so in the most fuel efficient way.
The program will then display all required operational data linked is optimum speed, like telegraph setting and engine mode (combinator or constant RPM mode, if applicable). The Captain now has all necessary information available to properly set-up the engine in order to prosecute the voyage leg with the optimum calculated speed.