In an interview with Maritime Fairtrade, Antonis Malaxianakis, founder & CEO of HarborLab, shared his thoughts on how there is an alignment of his company’s business goals with Singapore as the maritime industry is grappling with increasing pressure to run cost-effective operations.
HarborLab, which offers the first e-disbursements account analysis software that automatically calculates and evaluates port expenses against real-time port tariffs, set up an office in Singapore in the third-quarter of 2024, making it the company’s seventh global office and first in Asia.
Antonis Malaxianakis, founder & CEO of HarborLab.
Why did HarborLab set up an office in Singapore?
Since our launch in 2020, HarborLab has gained significant traction, particularly among shipowners in Greece and across Europe. However, as our client base has expanded, we recognized the necessity of being closer to our customers, many of whom call Singapore home.
Establishing a physical presence here is crucial for us to support shipowners operating in one of the world’s busiest maritime hubs. Same applies for port agents and vendors that are registered in HarborLab and are based in Singapore and the APAC region.
Singapore is not just a key player in the global maritime sector; it’s a hotbed for innovation, with over 140,000 port calls annually. Our aim is to optimize port cost management for shipowners, through innovative technology solutions.
We digitize and automate processes to remove manual effort and enhance the operational efficiency, still remaining highly agile and adaptable to our stakeholders’ specific needs.
By positioning ourselves in Singapore, we are committed to building brand awareness and capturing market share in Asia, leveraging on the region’s status as a leading maritime center.
In your expert opinion, what does Singapore excel in and where is room for improvement?
Singapore’s maritime industry excels in its technological advancements and digitalization efforts, establishing itself as one of the most progressive maritime hubs globally. The country has implemented innovative solutions which enhance operational efficiencies and empower maritime players. For instance, the adoption of advanced port management systems and AI-driven tools demonstrates Singapore’s commitment to lead the way in maritime innovation.
However, like any sector, there is always room for improvement. Traditional practices still linger in certain areas, particularly concerning transparency and real-time data sharing. At HarborLab, we believe in the power of digitalization to transform how port costs are managed.
By fostering collaboration between port agents, vendors, and principals, we can enhance transparency and streamline operations, ensuring that all stakeholders benefit from improved decision-making capabilities.
As we look to partner with the maritime community in Singapore, we see tremendous potential for further advancements which align with our vision of a transparent and efficient maritime ecosystem.
What are the factors which cause port call cost discrepancies?
Port call cost discrepancies primarily arise from a lack of transparency and ineffective communication. Variations between submitted expenses by agents and the actual amounts based on the latest official port tariffs can lead to significant financial impacts. With port call costs being the second-largest expense for commercial vessels after fuel, even minor discrepancies can accumulate quickly.
Discrepancies for HarborLab are the differences between submitted port expenses by the agents and the approved amounts by the platform’s algorithms. These run calculations at the back-end and give to the end user – the vessel operator – an indication of whether a port cost is correctly charged and should be paid, according to the latest official port tariffs issued by the port authorities.
Factors such as mistakes from a manual repeated process, improper parameter settings in calculations, outdated tariff data, and unclaimed possible rebates contribute to discrepancies. For example, if a vessel calls the same port in India within 30 days, light dues may not need to be repaid.
Also, the charge if one tugboat is used to tow the vessel at or from the port is much less than the cost if two tugboats are used for the same operations. HarborLab’s platform ensures users have access to the most accurate and current information, allowing for informed decision-making and fostering trust among stakeholders.
Many shipping companies still rely on outdated manual accounting methods, leading to errors, inflated costs, and disputes. The resolution created at HarborLab is to tackle these issues by providing real-time calculations, instant information and intelligence which help vessel operators identify discrepancies early, facilitating better financial decisions.
HarborLab recently completed a study which found a tanker operator saved US$1.26 million in two years by switching from manual to digital processes. Tell us more.
One of our recent studies found that a tanker operator with a fleet of about 20 tanker vessels saved about $1.26 million in two years by cooperating with HarborLab. That is because we provide shipping players with the solutions for managing port expenses, with quick and accurate estimates, reliable validation of actuals, efficient payments, and expedited claims process.
Cutting-edge technology, automation, repeatable & reliable processes are employed, and that is how HarborLab ensures that vessel managers pay what they should pay without any surprises or hidden costs.
The $1.26 million savings equate to roughly $1,085 saving per port call. This was done through a combination of discrepancies spotted by the platform’s algorithms and HarborLab securing agreements with port agents. We have also run similar studies which showed thousands of dollars’ worth of savings for users of our platform which operate in the dry bulk and gas sectors.
One of the reasons why these discrepancies arise is due to lack of standardization, lack of transparency and the complexity of port cost calculation across different ports worldwide. Expenses can vary drastically for the same vessel at the same port as each terminal and berth within the port has its own pricing policy.
Thus, the goal of HarborLab’s platform is to enable shipping operators to navigate these complexities more effectively, ensuring they benefit from the most accurate financial data and maximizing their savings during each port call.
How to leverage digitalization for port calls?
Digitalization is reshaping the maritime landscape, and there is a need for platforms to leverage automation and AI to simplify and enhance the port cost management process for all stakeholders. With over four million port calls made annually at more than 4,000 ports, the potential for cost savings is immense.
Digital processes reduce the margin of error from approximately 20 percent to just three percent per port call, enabling a single vessel operator to oversee disbursements for up to 50 vessels via a single platform. This is a significant improvement over the traditional methods.
By facilitating transparency and providing access to real-time data, that is how HarborLab strives to help shipping companies make informed decisions and identify potential savings.
As the maritime industry continues to evolve, we envision a future where digitalization not only improves efficiency but also drives innovation. Automated processes can streamline transactions, and advanced analytics empower stakeholders to optimize their port call strategies.
All photos credit: HarborLab
