Tekst referatu należy pisać w edytorze Word for Windows na ... · Web viewAll the processes maintained over the supply of high quality and quantity of information are tightened

ANALYSIS ON EFFICIENCY … E. PERDIAN

ANALYSIS ON EFFICIENCY OF INTERNET TECHNOLOGY ON

MARITIME CHARTERING MARKET

EWELINA PERDIAN

STANISŁAW IWAN, Ph. D.

Maritime University of Szczecin

Faculty of Transport Engineering and Economics

[email protected]

Maritime University of Szczecin

Faculty of Transport Engineering and Economics

[email protected]

ABSTRACT

Information and Communication Technology provides access to wide-spread,

easy accessible and low-cost information. It functions as well good enough as a

helpful tool that facilitates business processes. There exists a very controversial

aspect of Internet technology becoming a leader of business processes on maritime

market. What position has currently Internet technology according to maritime

market? How it affects information flow on maritime chartering services? This article

is focused on maritime chartering market reactions on introducing Internet

technology through its processes and between its employees.

Keywords: maritime market, chartering services, e-chartering, Internet

technology, ICT.

1. Description of maritime chartering market and the role of shipbroker

We define maritime chartering market as system that contains:

charterers, who enquiry information regarding market and vessels;

1

ANALYSIS ON EFFICIENCY… E. Perdian

ship owners, who offer their price;

shipbrokers, who negotiate chartering conditions.

When the terms are agreed upon, the main term fixture is prepared and contract

under negotiated freight rates must be finalized. Gorton defines shipbrokers as

people, who have informative, intermediary and coordinating functions along the

above-described procedure [1]. Information, that is exchanged, concerns matters such

as ships’ and cargo’s demands. Relevant meaning has sort of communication, that

professionals from shipping field have. It definitely determines quality and the

quantity of information exchanged.

E-business technologies have introduced new models of accessing information,

therefore several changes have been introduced. Behavior of maritime chartering

market, particularly influence on shipbroker’s services has been researched with help

of online questionnaire around representatives of maritime chartering market. Target

of the survey was to analyze information flow on maritime chartering market in

relation to information and communication technology, particularly e-chartering

systems. At the same time, another aim was to look into aspect of changing

communication patterns between participants of maritime chartering market.

2. Level of adapting information and communication technology on maritime

chartering market

In order to follow information flow on maritime chartering market, it is

necessary to answer the question: what is the level of adapting Internet technologies

in maritime world? According to the respondents of the questionnaire, adaptation of

ICT is handled in a rather average, optimal way, as seen below – figure 1.

2


Figure 1. Degree of adapting ICT and e-commerce on maritime market (A – the lowest,

E – the highest)

Source: own work

Why is that result average? In general maritime market might be seen as a

conservative one, with its own rules depending mostly on traditional forms of doing

business. All the processes maintained over the supply of high quality and quantity of

information are tightened to personal business contacts. However Paul Østergaard,

CEO of ShipServ, believes that e-commerce in ship supply is now a reality [7]: "Our

business is mostly about changing the process rather than changing relationships. In

most cases the ship owner continues to order direct or seek quotes from his usual

suppliers”.

Moreover, amount of information that is provided is massive. Respondents of

the questionnaire believe that there is general need for creating platforms, that collect

all the information, filter it and provide the principals with the most important

information (figure 2).

3


Figure 2. The answers for the question: should resources of low-cost and wide-range

available market information be filtered by specific Internet platforms?

Source: own work

More than 50% of respondents have admitted that creating online platforms for

filtering information is very useful. Particular networks in that case shipbrokers and

participants of maritime chartering market are supplied with up to date and relevant

information that represents value for the intermediaries, stakeholders, so in fact end-

users. Furthermore, users are not over-supplied with information and can easily sort

out, what are the major elements they need.

3. Online chartering platforms, E-Chartering systems

Without doubt a reliable information is an essential basic element of well-

functioning chartering market. Popularization of electronically guided

communication and implementation of electronically supported business processes is

a background of integration of Internet technology on maritime chartering market.

First step of adapting has affected communication tools, but because of massive

correspondence, it occurred that Internet platforms under the name e-chartering

should be involved to handle the problem.

4


E-chartering system is seen as a possibility for participants of maritime market

to maintain business processes on line. It's based on access to information, real-time

communication and virtually provided transactions. Auh, explains e-chartering as the

latest service concept that provides Internet based trading platforms for chartering

ships between ship owners and charterers [1].

Figure 3. Schema of e-chartering system

Source: own work

One of such online auctioning systems is ShipIQ – a company with an

electronic chartering platform that connects the oil chartering community and the

tanker owning community. Bob Conley, product development manager for

Massachusetts-based ShipIQ, says [7]: "ShipIQ provides its users with the

information, tools and the platform to complete complex transactions online.

Charterers can search for vessels meeting their criteria while tanker owners can

identify cargo matches for their vessels. After a negotiation is initiated on ShipIQ, the

parties are able to complete the deal online, leaving a clear, well-organized audit trail

and documentation”.

Other, typically recognizable online working systems are LevelSeas,

subsidiary of Clarksons, AXS Marine, Steminorder, Strategic Software, Go Refeers

and Chartering Solutions. All of them have few things in common. The main idea of

functioning these systems is data registration, data analysis and electronically

5


supported transactions. The target is to achieve a shipping contract under adequately

fixed freight rates.

Advantageous objectives of these platforms are real-time interactive

environment and integration of internal and external processes. Elements and

functionality of e-chartering system is presented on figure 3.

4. Efficiency of E-Chartering systems – questionnaire analysis

4.1. Analysis on impact of e-chartering systems on shipbroker’s services

Introduction of Internet technology, e-chartering systems has changed the

working patterns of shipbrokers. First of all they have glorified e-mails, as a tool of a

constant possibility for communication. The next step was unfortunately the fact that

shipbrokers have been loaded with hundreds of e-mails. That has become quite

uncomfortable so people from Internet technology departments become to search

other ways to cope with the problem. The results of their actions were online

platforms for e-chartering, having specific functionality.

E-chartering systems definitely have various usability dimensions for

shipbrokers that have been researched as well in online questionnaire (figure 4).

Figure 4. The most essential component of e-chartering systems

Source: own work

6


The respondents have stressed that the fundamental component of functioning

e-chartering systems is constant access to maritime market information and real time

communication, less important occurred to be functionality of these systems.

Participants of maritime chartering would be rather happy to be quickly, fully

supplied with up to date information concerning ship owner’s and charterer’s

description, than have a possibility to maintain negotiating process online.

Information, that creates value in its pure form, sounds interesting but only when the

number of users is appropriate. Value of chartering network is directly tied to the

number of its users. Bob Metcalf, inventor of Ethernet, is credited with the following

scaling law named after him [9]: “the total value of communication network grows

with the square of the number of devices or people it connects”. Essential information

such as price of various ships and ship specification can be reached easier and wider

only with convenient engagement of users. Therefore, the amount of users create

highly value of the system, which is very significant in short-term.

Auh claims that e-chartering can have positive network externality in short-run.

More ship owners users join the service, charterers more easily find suitable vessels.

However, the users would not be increased sharply in the sort-run. In the long-run,

the network eternality of e-chartering will be saturated over time. The marginal

benefits from the additional users will be offset by the increasing costs of finding the

right trading partners [1].

Reflection on a fact, how e-chartering systems and communities add value to

their users brings above results of the questionnaire.

7


Figure 5. The most important benefit from using e-chartering system

Source: own work

The most relevant feature occurred to be higher transparency of the market. It

leads us to a conclusion that it’s hard to provide clear information about the

transactions handled on maritime chartering market. On the other hand, it is claimed

that such transparency gives charterers the ability to push rates down. Next element

in the hierarchy is more strategic competition. Internet technology has become an

important point for shipping companies to gain a competitive level over their rivals

on the arena of globalization. Closer collaboration with partners all over the world

generates significant values that can have a huge impact on efficiency of provided

tasks. Relevant tend to be as well productivity of the system, operations, which it

fulfils, as a value itself. Platform provides objectives as: data registration, data

analysis, electronic negotiations over the freight rates, electronic finalization of the

contract. Timeliness of operations is a standard on virtual market, that generates quite

expenses, but its aim is to make customers satisfied with services such as timely

feedback and real time vessel tracking services. After completion of each voyage,

charterers and owners can have the opportunity to give a rating. The last element is

feedback – typically informational part of a market and should in fact be placed a

little bit up in the hierarchy.

8


4.2. Quality of shipbroker’s services in relation to e-chartering systems

Brokers feel that technological developments have enhanced the quality of

theirs services. It has definitely changed the working patterns, but what’s the direct

influence on quality of these services? This question has been answered in the next

questionnaire problem.

According to the questionnaire’s results, Internet technology as a provider of

an unlimited, massive formation, allows brokers to provide better quality job. That

empowers their expert knowledge of the market. Zolkos admits that value of the

broker is recognized by the consumers of their service [10]. Worldwide and online

access to the market improves sales and continuous customer assistance improves

customer support. The indicator of a well-maintained relationships is without doubt a

reliable, timeliness service. Partners of the network can only come closer together if

they are fully satisfied with provided operations. Might it be as close that the two

principals (ship owners and charterers) deal directly with each other without the

involvement of intermediaries? The respondents of the survey admit that this

possibility is balancing on the border of average and relevant meaning (figure 6).

Figure 6. Influence of access to information and communication technology (e-mail, on-

line platforms, Internet) on a quality of brokers services

Source: own work

9


4.3. Possibility of disintermediation on maritime chartering market

It is widely discussed if Internet eliminates intermediaries from the supply

chain, but author of research concerning disintermediation of maritime market claim,

Lambrou indicates that in fact in the transformation process of the value chain new

types of intermediaries may appear [10]. In fact these new types of intermediaries

might be people with wider competencies, having operational and analytical abilities,

willing to work in constant cooperation with Internet technologies, generating such

values as better productivity and higher level of services. Bob Conley, product

development manager for Massachusetts-based ShipIQ says that one of the keys to

his company's success is not eliminating the middleman. "Our system is broker

friendly. We do not 'disintermediate' the broker from the transactions.

Results of this questions (figure 7 and 8) presents, that respondents are aware

of disintermediation possibility on maritime chartering market. They point out that it

has average meaning with a relevant tendency to become a consequence of changing

electronic environment. On contrary others believe that chartering is much to

complex to take place only over the Internet with reference to the issue, that online

systems could be easily hacked.

There exist concerns about aspects such as security, privacy, data ownership

and possibility of malfunctioning practices by some of the companies on maritime

chartering market.

10


Figure 7. The possibility of handling on-line chartering processes directly by cargo

owner and ship owner

Source: own work

Figure 8. The chance of disintermediation in maritime supply chain because of

introducing e-commerce

Source: own work

5. Conclusions

Tools and achievements of Internet technology are treated in the way, as

information is the one that points the guidelines of using and performing

development of services. E-chartering system improves quality and quantity of

information and enhances market relationships in order to get more reliable sources.

11


Current e-business model of e-chartering is mainly focused on information search and

basic communication. Typically functional aspects of e-chartering are used in less

popular extension.

An online trading environment is closely tight to changes in electronic world.

IT can help maritime market become more transparent and competitive. The

efficiency on IT might be mostly seen as the quicker access to information.

According to that, speed of doing business increases in a relevant dimension. Online

information services improve the knowledge of the market, communication with

customers and business partners with a few side effects such as more formal and task-

orientated way of maintaining negotiations. Internet technology promotes sustainable

and flexible development of maritime chartering market, moreover provided by IT

tools changes working environment and generates higher quality of service.

REFERENCES

1. Auh J. H.: Analysis of Internet-based Business Activities on the container

Shipping Industry. The system Dynamics Modeling Approach with the Frame work

of Technological Evolution, MIT University, Australia, 2003;

2. Batrina G.: E-chartering web based platforms between success and failure,

Constanta Maritime University, Constanta, Romania, 2007;

3. Dewan N., Mohamed, Baolin W., Yun Y.: Value processes and business

processes in e-business modeling, Centre for Internet Computing and e-commerce,

Swinburne University of Technology, Melbourne, Australia;

4. Hofbauer T., Wennman M.: Innovation-driven IT enablement. At the

forefront of business value creation, Accenture GmbH, 2007;

5. Lambrou M. A.: Reflections on digital, CSR-aware shipping, University of

the Aegean, Greece, 2006;

12


6. Leung W. Y.: Commercial Risks and Legal Liabilities Associated with e-

chartering opportunities and risk management, Bachelor of Science in The Hong

Kong Poltyechnic University, 2003;

7. Marine Link.com, World Maritime news, 2002

http://www.marinelink.com/Story/E-Business:

+Growing+in+Maritime+Industry-10054.html

8. Maritime e-commerce Association ‘Standards of e-chartering’:

http://www.meca.org.uk/index.php ;

9. My Media, Section 8: Laws and other codes

http://media.wikidot.com/section-8-1-laws-and-other-codes

10. Sardis S. M., Lambrou M. A.: A multi Agent System for e-chartering,

National Technical University of Athens, Greece, University of the Aegean, Greece;

11. Molkiewski J., Christina-Maria M.: Relationships, Information Technology

and the Shipping Industry – An exploratory Investigation;

12. Noori H., Lau H., Wong N. T.: A generic framework for supporting

Internet Services to achieve Customer Value Creation;

13. Sardis M., Vourous G.: Electronic infrastructure for e-chartering,

University of the Aegean, Greece.

Рецензент проф. Христова Ч.

13

Documents

Tekst referatu należy pisać w edytorze Word for Windows na ... · Web viewAll the processes maintained over the supply of high quality and quantity of information are tightened