Shell Shipping Oil and gas exporting countries depend on shipping. Shell has shipping organization

500 WordsApr 23, 20192 Pages
Shell Shipping Oil and gas exporting countries depend on shipping. Shell has shipping organization in London and specialist centers in Houston, The Hague, Singapore, Perth and Tokyo. Shell converts gas in to liquid form called Liquefied Natural Gas (LNG) and transports it across the world via ships. Shell is the largest LNG shipping operator. Shell operates 50 of the world’s 370 LNG carriers. Scheduling problems There are cases when Shell employs other company ships to transport their cargo, and there can be cases when other companies who are making use of Shell's terminal to import/export cargo for their own needs. In the shipping operations several scheduling problems are observed. Many times ships have to wait at port before she…show more content…
• Big size vessels Shell hires consume 10 Million Ton of heavy duty fuel oil per day. • The current market price of heavy duty fuel oil is $600 per Million Ton. That would make loss of USD 6,000 per day when vessel is idle.  Case 4 – Utilization of the Shell terminal - Same as discussed in case 1,2 and 3. • Other companies make use of terminals owned by the Shell to load and unload their cargo • Scheduling problems at the port show similar financial impact on other companies as discussed in case 1, 2 and 3 Possible mitigation strategies – 1. Adding berths at the port • Port congestion is often caused due to lack of adequate berths available to accommodate ships. Increasing the port capacity to accommodate more ships at a time can solve the problem • Although construction of additional berths involves huge cost, the same can probably generate returns if there is adequate demand 2. Tidal port terminal • At tidal port vessels have to wait for the suitable tide in order to come in, else there will simply not be enough depth for safe navigation • Construction of an enclosed dock that would make sure there is adequate depth 3. If Shell uses her own vessels or employs one, the vessels can be requested to speed up or slow prior arriving to the port, so that she arrives as close as possible to favorable time 4. Documentation • When a tanker loads her cargo, a considerable amount of time is spent on documentation, for which

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