In the dynamic and high-stakes world of shipping and marine operations, managing risk is not just a necessity — it delivers a strategic advantage. For Australian shipowners, fleet managers and marine insurance operators the adoption of condition-based monitoring (CBM) and the use of operational data for ongoing maintenance checks can be a game changer.
This proactive approach not only enhances efficiency of ship operations but also plays a pivotal role in managing insurance costs and premiums.
How condition-based monitoring provides real time proof for ship operators
Condition-based monitoring is a maintenance strategy that uses real-time operational data to assess the health of ship equipment and systems. Machinery is closely monitored to determine its condition, optimal performance conditions and required maintenance activities.
By continuously monitoring key performance indicators, CBM enables early detection of potential issues, allowing shipowners to address them before they escalate, and minimising the risk of costly claims and disruptions.
Repair resources can be allocated at a time of the shipowner’s choosing and if the affected machinery is placed on standby or light loads only, spares can be ordered with normal delivery dates rather than costly panic purchasing to solve problems in an emergency.
For ship fleets and marine operators, this means less unplanned disruptions, improved safety and extended equipment lifespan.
A strategic advantage for Australian marine operators
The adoption of CBM is particularly relevant to Australian ship owners and fleet managers. The local industry operates in a challenging environment with exposure to risks such as equipment failure, harsh weather conditions and the demands of regulatory compliance.
The use of operational data for ongoing maintenance checks is more than just a technological advancement, it's a strategic investment in future shipping operations.
CBM offers several major advantages for vessels and fleets including:
- preventing disruptive breakdowns that affect operations and revenue
- reducing excessive costs associated with recovering from unplanned breakdowns and downtime
- improved operational efficiency from improved fuel efficiency and reduced emissions
- improved safety by early detection of potential safety hazards, such as leaks, excessive vibration or abnormal temperatures
- enabling data-driven information-based decision making for fleet management
- optimised vessel scheduling and costs
- reduction in classification opening-up surveys
- reduced insurance risk and improved conditions for premiums.
Leveraging operational data to mitigate these risks not only ensures smoother operations but also aligns with the principles of the tailored and comprehensive insurance solutions Gallagher offers to support marine operators in optimising their risks and insurance outcomes.
How operational data impacts marine insurance costs
- improved risk profile: insurers view marine operators who demonstrate CBM mitigation measures as lower risk policyholders
- fewer claims: early detection and resolution of issues reduce the likelihood of costly claims, which can help maintain a clean claims history — a key factor in negotiating insurance rates
- enhanced insurer confidence: demonstrating the use of advanced technologies like CBM signals to insurers that the operator is committed to maintaining high operational standards, further strengthening their risk profile.
Access Gallagher marine insurance expertise for ship operators
At Gallagher we understand the unique challenges faced by the shipping and marine industry. Our expertise in risk management and insurance solutions is designed to help clients navigate these complexities. By integrating strategies like CBM into their operations, marine operators can obtain dual benefits: optimised operational efficiency and reduced insurance costs.
If you're eager to explore how condition-based monitoring can transform your operations and insurance outcomes, get in touch with our team today. Together we can chart a course toward a safer, more efficient and cost-effective future.
