Time for a new approach to drydocking?

Drydocking is a critical component of a vessel’s lifecycle. Expensive, complex and prone to unforeseen complications, planning and execution can take months. Putting a superintendent onboard to ride with the ship, compiling the main work items for submission to the shipyard is standard practice if the job is to be done properly.

So it seems surprising that with all that technical work completed, the shipowner would hand over care of the vessel during dry-docking to an agent they may not know and never have worked with before. Current industry practice is that the shipyard nominated to undertake the drydocking will also nominate their preferred agent, giving the owner little room for manoeuvre should problems arise.

It is possible that the superintendent may know the shipyard agent and the shipyard might be chosen based on the superintendent’s preference. But from the owner’s point of view, the choice of agent is arbitrary and far from transparent.

The process also has an inherent conflict of interest. If the agent is working for the owner but is nominated by yard, what happens if things go wrong? Where do the agent’s loyalties lie? On an operational level, how can the owner improve forward planning, spares procurement and inspection testing if their first contact with the agent is when the ship superintendent arrives in drydock?

Such an arrangement is as risky as it is baffling. Yards will nominate local agents based on their preference and previous relationships but potentially with little regard for client needs. The obvious requirement is to employ a trusted ships agent to focus on the owner’s requirements before, during and after drydocking, enabling them to work with an agent they know and trust.

Improving the status quo

Despite the wide choice of repair yards worldwide and the thousands of ships a year needing repairs, a dedicated agency service for drydocking remains a virtually untapped and fragmented market.

What these local agents (and some much larger ones) cannot provide is the access into the owner’s technical departments, where the major decisions are made. They lack the experience of working with the superintendents every day, whether on agency matters or as a supplier of safety or other marine related equipment.

Despite this, owners are often prepared to allow the traditional practice of being driven by the shipyard in the choice of nominating the agent. Some yards will probably insist that this is the right way because it’s the way it’s always been done, but maintaining the status quo is not the way to move forward when current practice is so flawed.

Some owners are already choosing to move away from this model. But how long is the rest of the industry prepared to accept conflict of interest, lack of choice and opacity as byproducts of dry-docking?

Wilhelmsen Ships Service already has relationships not just in agency services but also with technical departments through provision of shipboard chemicals, equipment and safety products. The next step is in the provision of dedicated drydocking agency services.

Planning makes perfect

For an owner preparing to drydock, using an agent that they deal with every day makes far more sense. Lines of communication, as well as administration and finance requirements are already in place. In addition, the ship owner can leverage synergies in terms of service supply.

An agent that knows their owner’s business is not just a reliable choice but one that can potentially deliver a more efficient and competitive service. The decision is up to the owner, but as agents we can support that process by adding value and bringing access to technical staff during the drydocking who can work directly with superintendents.

There are cost efficiencies to be gained but these are probably not the main driver. Greater efficiency comes from better planning, budgeting and control of spare parts and other inventory.

Planning for a drydocking can start three months ahead of the vessel’s arrival. But in the traditional model, the superintendent may not meet their nominated agent until they first attend the vessel. A trusted and long-established agent can use this time to work with the owner and manager, planning and scheduling agency, safety services and spare parts requirements as well as providing secure storage and inventory control. They can keep owners informed of progress in preparation for when the ship arrives so that when they are ready to start the drydock, everything they need is ready and available.

Handling owner requirements during dry-docking can be both challenging and time consuming. At WSS, we provide a simpler solution. In addition to agency and safety services, we provide all the products needed for cleaning, maintenance and repair tasks, through a single point of contact wherever the dry-docking is carried out. We can take care of all the administrative routines at every step of the process so the owner can focus on getting the vessel in and out on time.

Building a revolution?

By now, it should be clear that what we are proposing could be the start of a positive change in the drydocking sector. Adopted industry-wide, it would mean a move towards greater openness and transparency, with planning, execution and budgeting all improved in the best interests of the customer.

It’s a big step but we think the timing is right. With competition in ship repair strong, yards are more prepared to listen to owners than they were just a few years ago, when they were able to pick and choose the best jobs. The leverage owners have in decision-making works in our favour: we are already seeing drydocking enquiries increasing as our customers recognise the benefits in dealing with a single and trusted partner.

The feedback we have received from repair yards has also been positive so far. The main Chinese yards for example, are open-minded and interested in gaining more business so are willing to work in a new way to make that happen.

How quickly this new way of working becomes accepted ultimately depends on our customers. But WSS believes it has created the conditions for a fundamental change that makes drydocking agency services more efficient and protects owners.