International Maritime Services managing director Brendan Cooley explains the benefits and challenges of tug delivery solutions
For people outside the maritime industry, there is often a curious expression when we explain the nature of our business. As the conversation progresses, there is usually a moment of understanding that seems something like “well, of course, that would be required, but I have never realised that is a business.”
Ship delivery businesses deliver maritime vessels from any port to any port. Like a postal service would do with an online clothing purchase, though more complex.
Tugs and ships are somewhat larger than a pair of jeans, and the logistics are necessarily more detailed.
Tugs are typically built or purchased far away from their assigned operating port. In these cases, many owners require a plug-in service – a company with the resources and capability to transport the asset from where it is to where it needs to be.
This journey is atypical for the life of a tugboat that will operate from a port to service other vessels.
For new tugs or those sold secondhand, relocation is required. Ship delivery businesses move them from where they were to where they need to be.
A fundamental decision by the owner is whether the vessel’s movement is by a heavy-lift vessel or under its own power.
The owner’s tug master and crew may be highly experienced, yet they are more valuable operating tugs than delivering them.
A third-party ship delivery is often the preferred method, mitigating the high risk and cost of long delays associated with matching tug completion schedules and heavy-lift ship availability. In addition, it is a delivery solution that offers low commercial and operational risk.
Delivery voyages offer the ultimate shakedown sea trial and a professional crew will attend to planned and unplanned maintenance issues during the journey.
In addition, defect reporting will highlight warranty matters and reduce downtime before the tugs go into service at the destination port.
Delivery crews are also uniquely positioned to provide an indepth handover to the incoming operating crews.
Some challenges that erode value include a short lead time to engage a delivery company or vessel limitations such as the lack of a functioning autopilot, limited fuel capacity or an inadequate number of berths.
Owners engaging a reputable delivery company can protect value because the significant challenges in moving a vessel designed for coastal waterways across oceans can often be overcome.
The right crew is also critical for voyages of this magnitude. Therefore, a primary focus on safety and mindset to balance speed and efficiency is crucial.
A project management team is also crucial, usually comprising superintendents and crewing specialists whose core activity is ship delivery.
Aside from start-up delivery processes, an experienced superintendent has the requisite knowledge and experience to assist customers with services beyond the work scope, such as vessel storing, preparation, local procurement and yard interfaces.
An effective ship delivery company also has a specialist shore-based management team to oversee tug mobilisation, vessel takeover, and day-to-day voyage management and crewing. This team undertakes operational and administrative management, utilising know-how gained from decades of vessel deliveries.
While the essentials for a ship delivery business may seem obvious, it is helpful to spell them out. ISM accreditation is mandatory, as is a focus on crew wellbeing, greenhouse gas emissions and safety compliance. A finger on the pulse of compliance and regulations is also essential, as it is never as simple as most think.
A proven track record is essential for a business entrusted with managing assets valuing tens of millions of dollars across the world’s oceans. Like all business, a successful long-term relationship with owners and shipyards is preferable to a one-off transactional relationship.
Increasingly, sustainable development goals are at the forefront. So, keep an eye out for ship delivery businesses already on the front foot in this area.
Ultimately, economic benefit underpins the ship delivery business. A tug is not generating revenue while it is being delivered, so the best delivery service is the one getting the vessel operational the soonest. A little like getting the latest online purchase sooner rather than later.
The 26th International Tug & Salvage Convention, Exhibition & Awards will be held 28 September 2022. Register your interest and access more information here
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