Operations Research in Ship Management: Maximizing Fleet-Wide Revenue Routing at Danaos
Danaos Corporation, one of the world's largest containership owners, has a fleet of 60 containerships. Danaos developed the innovative "Operations Research In Ship MAnagement" (ORISMA) toolkit that effectively optimizes ship routing. ORISMA offers a clear answer to the conventional dilemma between least cost and faster voyage by maximizing revenue using all relevant information: financial data, hydrodynamic models, weather conditions and marketing forecasts. Its power comes from looking at the big picture - it considers economic potential even after voyage completion and drives fleet-wide instead of single-vessel performance. Using O.R. and expert knowledge, a full suite of world-class capabilities in scheduling optimization, intelligent voyage planning, and bunkering and chartering were developed. In its first year of implementation ORISMA has resulted in clear bottom-line benefits. This award-winning product, in addition to profit maximization, minimizes carbon emissions, reduces workload and increases customer satisfaction.