NCLH Has Retooled Its Fuel Purchasing Program

Norwegian Prima in Azores

A completely rethought fuel purchasing program at Norwegian Cruise Line Holdings (NCLH) is delivering cost savings, according to Patrik Dahlgren, executive vice president vessel operations.

“Fuel is a big portion of our expenses,” he said, speaking at the company’s investor day event held in New York on May 20.

Dahlgren explained that historically, the three-brand cruise company bought fuel from one company despite calling in over 700 ports globally.

That has now changed significantly.

“In the new model, we have over 40 different vendors and significantly lower costs across the globe,” he said. “We have implemented an advanced bunker optimization tool for our shoreside procurement team and onboard team to utilize to make sure we bunker when we should in the most optimized way.”

Other fuel savings have come from operational refinements, as Dahlgren said the company is helping captains and chief engineers with the tools they need to be more efficient in their decision-making processes.

Previously, some ships would start engines some two hours before leaving port, Dahlgren explained.

“In the new model, its about 15 minutes. That is a significant savings in terms of energy.”

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