ZeroNorth increases customers’ net annualised value by over US$50 million during its first year as independent company
24 June 2021
Voyage optimisation platform Optimise now in use by over 1,600 vessels across the global tramp fleet
Maritime technology company ZeroNorth has today announced that its voyage optimisation platform Optimise has successfully increased customer net annualised value by a combined US$50 million.
ZeroNorth’s complex algorithms not only provide voyage optimisation, but also calculate the US dollar and CO2 impact of decisions. The combined $50m upside in net annualised value has been calculated on a rolling month-by-month basis, and is a clear indication of the potential of Optimise to increase earnings and reduce emissions.
The $50m figure is the increase in earnings realised by ZeroNorth’s customer base from using the software to optimise their voyages, above what they would have earned had they operated as before integrating the platform into their businesses.
In its first year, the company has also successfully completed its Seed and Series A Investment, securing funding of US$22 million to help advance its technological capabilities.
Now in use on over 1,600 vessels owned and operated by 13 tramp shipping companies, including Maersk Tankers, Cargill and Ultrabulk, the announcement is a clear indication of the potential of Optimise to increase earnings and reduce emissions.
As well as being a significant landmark for ZeroNorth’s first twelve months as an independent company, the news also tangibly demonstrates the significant commercial and environmental impact that data-orientated solutions can have in immediately tackling the shipping industry’s decarbonisation challenge.
Speaking on the announcement, Søren Christian Meyer, CEO, ZeroNorth, said: “We think this makes very clear the power that digital technologies have to transform the way we operate. Voyage optimisation and vessel efficiency are two central challenges facing the shipping industry. By unlocking the power of digital solutions today we can empower companies on the road to decarbonisation, improving their earnings and driving investment in other technologies that will help us to reach our sustainability goals”
The news follows an exciting first year for ZeroNorth, during which the company has marked several key milestones.
In November 2020 ZeroNorth launched BunkerAction as its first major product addition to Optimise. BunkerAction provides operators with recommendations on where, when and what to bunker, resulting in cost savings and time reduction in planning. In early 2021, the company launched VoyageOptimisation, which helps operators to assess the potential impact of weather on their routes.
ZeroNorth has also focused on building a complimentary ecosystem of data providers and other technology leaders, all of whom are integrating Optimise or providing data to the platform. Collaborations include new agreements with Veson, Monjasa, Baltic Exchange, Chartworld and WNI.
Søren Meyer added: “Our goal is to build a holistic and comprehensive digital solution with Optimise, and support with the industry’s path to decarbonisation. This first twelve months has enabled us to significantly develop our technology, our team, and our network. Our aim, as we progress, is to continue to forge an ecosystem of tech leaders that are working together to achieve our sector’s goals.”
With over 50 employees from 16 countries and a range of backgrounds and expertise, ZeroNorth is one of the fastest growing tech start-ups in Scandinavia. As its first physical expansion, the company opened an office in Greece at the start of 2021, reflecting the country’s prominent role in the tramp shipping industry.
Net annualised value can be calculated by multiplying the value ZeroNorth created for customers by the ratio of the number of months in a year, divided by the number of months for which this data is available. In this case, 1 month of data has been multiplied by 12 months.