Optimizing Revenue Opportunities in the Product Tanker Shipping Industry

Maersk Tankers facilitates the global trade of energy to meet the world’s energy needs. The company is a leading player in the product tanker industry, operating one of the largest fleets of vessels and employs 3,000 employees worldwide. Maersk Tankers leads the industry in digitization, using algorithmic trading to position vessels where the customers need them the most to cover their transportation needs and support pool partners in optimizing value.

“Together with 2021.AI we are creating some of the most advanced and ambitious forecast models for the shipping industry. This collaboration offers new ways of increasing efficiencies running our global fleet. We are leveraging 2021.AI’s expertise in developing advanced forecast models.”

Peter Schroeder - Maersk Tankers

Peter Schrøder

Chief Digital Officer, Maersk Tankers

Project scope

Maersk Tankers continuously supports decision makers with digital products to make better informed business decisions to predict where and when to position their global fleet of tankers in the future.

“Mærsk Tankers’ ambition is to be a leading provider of the future digital solutions for the shipping Industry.”

To achieve this, one of the digital products Maersk Tankers has launched is a reliable and accurate model to forecast freight prices across 20 market segments to optimize the positions of their global fleet of tankers. To capture additional revenue opportunities, Maersk Tankers needed to confidently and efficiently be able to make critical business decisions for the positing of the fleet, sometimes up to 13 weeks ahead of time.

The solution

The 2021.AI’s data science team analyzed the existing forecasting model and data; addressing shortcomings and creating a first base line to benchmark improvements for the new models. The team developed and validated more than 20 new models, applying algorithms on the data and training the data set in a series of 2 weeks sprints. The sprints were propelled leveraging 2021.AI’s Grace AI Platform, that helps boosts the collaboration between data scientists through a common workflow and fast tracking the project leveraging the latest technology advances within AI and machine learning.

Maersk Tankers & 2021.AI worked together to:

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Reliably forecast freight prices

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Optimize revenue opportunities

Additionally, new data sources were added to improve the overall data quality, making the new models predict future freight market based on historical data from an extended and enriched dataset going 5 years back in time.

The results

After validation of the new forecast models by Maersk Tankers chartering team, the models were swiftly taken into production, with an improvement of the accuracy by 20 % on average. As a result, better informed decisions have paved the way for Maersk Tankers to improve the positioning of their global fleet of vessels.

3 facts about the Maersk project

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Leveraging the Grace AI platform accelerated time to market; helping the project to scale and providing a common workspace for development.

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Forecasting accuracy of the existing model improved by 20%.

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Measurable business value.

About Maersk Tankers

Maersk Tankers facilitates the global trade of energy to meet the world’s energy needs. The company is a leading player in the product tanker industry, operating one of the largest fleets of vessels and employs 3,000 employees worldwide. Maersk Tankers leads the industry in digitization, using algorithmic trading to position vessels where the customers need them the most to cover their transportation needs and support pool partners in optimizing value.

About 2021.AI

2021.AI serves the growing need for applied AI across industries. Their data science expertise combined with their Grace AI Platform offers a true AI differentiator for clients around the world. With Grace, data scientists can collaborate swiftly to solve complex problems, or implement packaged models for churn prediction, chat-bots, classification, and more. 2021.AI is a fast growing company headquartered in Copenhagen with + 80 employees distributed globally.

Contact

Email: sales@2021.ai
Phone: +45 93 91 20 21

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