Risk Management Voyage Analysis and Loss Control
As the price of oil rises, it is becoming increasingly important to monitor accurately any variation in the quantity of petroleum products as they move through the supply chain.
At SGS, we know the importance of providing accurate, reliable voyage analysis and reconciliation calculations. This information can be used to improve loss control, to lodge claims where necessary and generally to improve the efficiency and accountability within your logistics chain. Our proactive loss control services cover all aspects of voyage loss, inventory control, onboard fuel blending and terminal audits for the petroleum industry.
The benefits of voyage analysis and reconciliation
As petroleum products, petrochemicals and other bulk liquids are traded, moved or stored, there are changes in the quantities measured at a given place and point in time. Each measurement must be made with extreme care, as even small errors can have a profound adverse effect when the standard chain calculations are performed.
Voyage analysis and reconciliation involves a robust and thorough review of a sequence of measurements. This enables analysis of the root causes of any differences in volume or weight of oil between the quantity shown on the Bill of Lading (BOL) and the quantity shown on the Outturn Certificate, known as out-turn loss. Our highly skilled team can build and analyze voyage models to assess the effects of factors such as blending, aggregation and ship-to-ship lightening, helping to build an accurate picture of your entire logistics chain.
While many differences are easy to account for and have only a limited impact, significant changes can occur in certain situations which represent real differences in batch quantities.
These can include:
- Water settling out from suspension
- Water being agitated into solution
- Changes in product density as blending is carried out
- Layering against density, thermal or both gradients
- Simple tank or pipe leakage
- Incomplete pipeline fills
- Instrument malfunction
- Human error in measurement and/ or calculation
Our loss control services
In a situation of conflicting interests between a terminal, the vessel owner, the trader, the charterer, the receiver and the vessel operator, you can rely on SGS to protect your interests. Our services cover:
To accurately monitor your cargo, we will insure API standards for quantity and quality control, reconcile your inventory monthly with all cargo movements, track discrepancies and identify any areas of concern.
Establishing liability and accountability is crucial. Prior to, or while a terminal is in possession of your cargo, we will ensure that all aspects of the terminal and their operational processes enable proper handling of your cargo.
Find out how voyage analysis and loss control services from SGS can help improve the efficiency and accountability of your logistics.