Just-In-Time Arrival: A Triple Win

There were 57 ships in the queue at the Port of Newcastle in Australia when the Pasha Bulker ran aground there in 2007.

The coal ship was grounded for about three weeks before it was able to be towed away for repairs.

The Pasha Bulker wasn’t the only vessel that had attempted to ride out the gale at anchor, and the majority of other vessels that did so also dragged their anchors.

The port subsequently implemented a vessel arrival system which involves issuing a notice of readiness seven days in advance so vessels can adjust their arrival time accordingly. The system involves collaboration along the coal value chain including exporters, shipping companies and power utilities and steel manufacturers in Australia, Japan, South Korea and Taiwan.

For ship operators, this type of system offers a “triple win” according to a new report from the Global Maritime Forum: reduced fuel costs, reduced emissions and lower costs transitioning to new fuels.

The report, Port call optimisation: A pathway to reducing waiting times and emissions, explores how to achieve this by moving away from the inefficient “sail fast, then wait” practice that sees vessels speeding to port then waiting at anchor, unnecessarily burning fuel and generating emissions.

The report discusses two replacement strategies: virtual arrival and just-in-time arrival.

With virtual arrival, a vessel can set back its arrival when there is a known delay at the port or terminal it is headed for. The charterer agrees to accept a notice of readiness (for laytime calculations) which is based on the time the ship would have arrived had it sailed at the fastest permissible speed.

Virtual arrival relies on the leadership of individual ports. It does not address the broader coordination needed for scaled industry adoption.

Just-in-time arrival is designed to optimize vessel speed throughout the voyage, and it relies on real-time information sharing and predictive decision-making to ensure vessel operations align with port readiness.

A common misinterpretation is that it allows vessels to proceed directly to berth, without any queues at all. This is not the case. Rather it aims to reduce the unscheduled ad hoc time at anchorage not eliminate the queue altogether. Terminals require some buffer time to mitigate downtime, optimize resources and reduce costs.

Despite its potential benefits, just-in-time arrival requires greater cooperation and transparency between charterers, ports, terminals, cargo owners and downstream operations. Traditional contractual frameworks, such as those governing laytime and demurrage, are currently not designed to fully accommodate or incentivize this approach.

If that changes, it could make just-in-time arrival a win for ports as well as a triple win for shipping. By improving coordination, sharing insights, and fostering collaboration across the value chain, ports could unlock significant efficiency gains.

The report concludes: “Without tackling inefficiencies in port operations, the transition to zero-emission fuels will be costly and challenging.”