Maersk "using" LevelSeas
http://www.levelseas.com

A consortium of shipping lines AP Moller (Maersk), Coeclerici, Armada, Clipper Bulk Shipping, Fednav Ltd, Lauritzen, A M Nomikos, Norden, Torm, Transfield Shipping, Tschudi and Eitzen Bulkers and Western Bulk and  are now using LevelSeas. The companies formed a group to look into the possibilities of e-chartering and signed up as investors in March this year.

Maersk is alread using the online fixing platform LSX, with plans to use the operations system LSOps when it is "in its final version," comments Erik Graumann, a director of A P Moller's chartering department.

About 20 people in Maersk's chartering department are currently using LevelSeas. Whilst transactions have been completed as a result of using the system, no fixtures have actually been concluded online.

However Mr Graumann expects its usage to be brought in gradually. "We'll do a fixture very shortly, but the big deal is to introduce it," he says."We're still testing it. It takes some time to introduce a new system to an organisation. 

"When we decided to invest, it looked like LevelSeas would be the winner," he says. "We felt that they were the ones who thought they could actually consolidate the industry and bring that critical mass."

The additional functionality which LevelSeas has over its competitors is a major reason for using the system, he says. "Its much more than just a listing of ships and cargoes. Its your negotiation tool, you can get your charter party right away and manage your own post fixture."

Mr Graumann already has alerts popping up on his desktop computer during the day from the LevelSeas system. "When you get new alerts all the time you can see that its starting to work," he says. "With the other systems, you always had to stretch for them."

The final decision has not yet been made about how much LevelSeas is worth in financial terms and how much its customers are willing to pay. "I don't think the final pricing of LevelSeas is in place," he says. "But of course, LevelSeas can only charge the value that they add." 

Mr Graumann says that Maersk will continue to use brokers however. "LevelSeas is about streamlining communications," he says. "But brokers are not tools in communications, they are business develoeps. They broker agreements and develop new business." 

He does not believe LevelSeas makes it easier for owners to negotiate directly with charterers. "Putting a deal together is not just a matter of putting information across," he says. "It comes down to the development of new proposals." 

"A year ago, we made an analysis of what e-commerce would actually mean, and concluded that in terms of communications and streamlining the amount of information you have to deal with, the biggest benefit went to the brokers," he says. "A big part of the broker's business is being able to manage the information."