How digitising LNG and crude cargo management reduces the cost of intangible risks

In LNG and crude cargo operations, the true cost of risk goes beyond what’s immediate and visible. By failing to assign a price to risk, companies expose themselves to a cascade of hidden costs that can erode their competitive edge. Here’s how a built-for-purpose digital cargo management solution can provide the necessary tools to identify, manage, and mitigate these risks effectively.

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From storage to shipping and trading, every phase of LNG and crude cargo operations involves inherent risks that can have both immediate and long-term implications. While companies often focus on the immediate and visible risks – such as those associated with labour, fuel and maintenance – perhaps the most significant threats are the intangible risks which, when left unquantified, can lead to a loss in profitability, operational efficiency, and long-term sustainability.

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These risks include:

‍Operational disruptions

Risks such as equipment failure, delayed shipments, or port congestions can cause unplanned downtimes, which not only delay shipments but also incur penalties, loss of customer trust, and increased operational costs.

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Regulatory non-compliance

LNG and crude operations are subject to stringent regulations to ensure safety and environmental sustainability. Failure to account for compliance risks can lead to hefty fines, legal battles, and reputational damage.

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Financial losses from market volatility

Without pricing the risk of market fluctuations, companies may face significant financial losses during market downturns. While hedging strategies may be effective, they need to be informed by a robust risk assessment framework and real time market data.

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Reputational damage

Ian industry where reliability and trust are paramount, mis-managed risks leading to downtime, non-compliance or accidents can tarnish a company’s reputation, making it difficult to secure future contracts and partnerships.‍

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HOW CAN A DIGITAL CARGO MANAGEMENT SOLUTION HELP?

By implementing a solution, developed to specifically handle the complexities of LNG and crude cargo management, operators can arm themselves with the necessary tools to manage risks more effectively and optimise their operations.

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These solutions enhance risk visibility by offering real time data analytics to identify and assess risks more accurately, and predictive analytics and AI to forecast potential disruptions. Automated task tracking and reporting helps organisations reduce the risk of human error and ensures operations align with regulatory requirements. And tools designed to help optimise routes, schedules and cargo handling processes minimise the likelihood of delays, contract breaches and downtime.

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Among the advantages of a built-for-purpose cargo management solution are:

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A single source of truth

A digital cargo management solution integrates data from multiple sources, such as trading solutions, shipping schedules, market intel, contractual documentation, and compliance records, into a single platform.

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Automated alerts

These notify operators of potential risks, such as cargo deviations and cargo mismatches, allowing for immediate action.

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Audit trails

Operators can access detailed logs of compliance-related activities, demonstrating adherence to regulations.

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Dynamic market data

Digital platforms provide up-to-date market intelligence, helping operators understand price trends.

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Stakeholder communication

A centralised platform improves communication among teams, vendors, and partners – risk-related data can be shared across departments to align strategies and responses.

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Adaptive models

A digital cargo management solution will use machine learning to learn from past incidents and continuously refine risk predictions and recommendations.

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Trend analysis

Long-term data analysis identifies recurring risks and emerging trends, supporting strategic decision-making.

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Visualised data

Intuitive dashboards display risk metrics and insights in easily digestible formats, enabling quick decision-making.

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Custom reports

Ocan generate detailed reports on specific risks, and potential impacts for both internal use and stakeholder presentations.‍

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HOW GLX CARGO CAN HELP MITIGATE HIDDEN RISKS

GCARGO gives LNG and crude enterprises a sustained competitive advantage – no other system is as easy to use or more effectively addresses operational challenges and risks with energy cargo management.

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The system replaces error-prone, non-auditable spreadsheets by automating all essential cargo delivery workflows, reducing instances of human error and double data entry.

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Custom alerts ensure cargo mismatches are eliminated, and that all critical contractual obligations and deadlines are being met. Coupled with custom reports and audit logs, this ensures regulatory and contractual compliance and enhances customer and stakeholder confidence.

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Through the system, teams across the organisation can connect to a single data source, and access essential metrics displayed in easy-to-read tables and charts, enabling quick and informed decision making.

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LIKE TO KNOW MORE?

To see GLX CARGO in action, and learn how the system can potentially save your energy company tens o millions of dollars in value leakage, get in touch.

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