Unlocking Financial and Operational Efficiency in Port Calls: The Future of Port Call Payments

Managing port calls has always been hampered by various inefficiencies including tedious payment processes. The conventional payment methods require companies to prefund ship agents for the services required in the Port Call. This introduces a range of issues that can impact financial and operational efficiency, including suboptimal cash-flow management and a wide range of administrative burdens.

Current challenges in port-call payments:

• Locked working capital: Companies are typically required to pay for port-call expenses upfront, which can tie up significant working capital that could be used for other strategic needs, such as fleet expansion or technology upgrades.
• Cash-flow constraint: Prefunding can also squeeze cash flow, especially for companies with limited liquidity. This may hinder their ability to effectively manage unexpected expenses.
• Operational impact: Prefunding creates the need to manage numerous payment settlements for port calls across various locations, in turn increasing the amount of email correspondence and unnecessary admin, which increases costs and reduce overall productivity.
• Funding risk: Prefunding may also increase the risk of errors and delays in payment processing, which can disrupt operations, delay vessels itineraries and consequently have major financial implications.

What can you do to address these challenges? 

The traditional approach to port-call payment may seem unavoidable, but there are strategies to mitigate these issues, including:

• Streamline payment processes: Consolidating payments into fewer transactions can simplify and reduce admin and tracking. Outsource the transactional payment subprocess can also increase efficiency and reduce overall costs.
• Improve financial planning: Enhanced forecasting and budgeting tools can help manage expenses more effectively.
• Flexible payment: Negotiating more favorable payment terms with vendors can help ease financial strain.

Taking the pain out of port-call payments

At Wilhelmsen Port Services, we understand the difficulties associated with traditional prefunding practices and are excited to offer an innovative financial solution that streamlines payment processes and makes your life a whole lot easier. Using Port Cost Financing, you only need to pay every 90 days for all port-call expenses already realized, enabling a much more efficient admin work and cash flow management. Make the most of the following core benefits:

• Release working capital: Freeing up valuable working capital promotes flexibility and allows you to better allocate resources and invest in growth opportunities in line with strategic objectives, whether that is upgrading technology, investing in new assets, or exploring new markets.
• Reduce the number of payments: You can consolidate payments from potentially thousands every year to just four annually. This streamlined process cuts the admin burden such as having to constantly monitor floating accounts and handle a large number of unnecessary emails, and minimizes the risk of errors.
• Eliminate funding-related operational risk: Removing the need for prefunding reduces the risk of delays if ship agents have not received upfront payment before the vessel arrives.

Port Cost Financing is for everyone who pays agents for port calls and can be used for port calls globally, including canal transits. Adopting it requires no additional technology and you maintain in full control of your existing processes.

Transformative approach

In a highly dynamic industry where financial and operational flexibility are key factors in maintaining competitive advantage, it is crucial that shipping companies adopt forward-leaning strategies to make the most of new opportunities. 

As part of this winning mindset, Port Cost Financing represents a transformative approach to simplify how the industry handles port call payments. You can enhance cash flow, reduce admin, and free up valuable working capital to invest in other critical priorities. We invite you to embrace this innovative solution and unlock the door to greater operational efficiency.

Reach out to us here to find out more.