David Clay, group information systems manager with shipmanagers Wallem Group, provided his perspective on linking together shipping computer systems.

Wallem has over 100 vessels in full management, which are all different and have different IT requirements. "It is quite a challenge on the IT side to develop applications that can be deployed on all vessels in our fleet," he said.

Requisitions for spares and stores are initiated onboard the vessel, and sent to shore over a data link, and then go directly into Wallem's purchasing system. Data is only entered once. Data can be shared across different departments at Wallem as necessary, but only sent from the ship to shore once.

Wallem also has an extranet for shipowners. They can log on and see accounts information, as well as data about deck and engine performance for the vessels.

There is a shipboard reporting mechanism, where seafarers enter into data about what is going on onboard into report templates. On shore, the data is analysed and trends are looked for. Wallem can look at fuel consumption and try to identify problems in ship operations before they become serious and lead to vessels being taken out of service.

Wallem can send the ship control information and request which reports it wants, also depending on what the client is looking for. Engine data is entered manually by seafarers; there is no direct interface between the reporting system onboard and the engine itself.

Whilst Wallem trains its seafarers to a high level of technical expertise, it is maybe not as high as shore-based people, he says, which means that it makes sense to involve shore staff in decisions about running the ship.

Wallem has calculated that through its digital infrastructure it has reduced direct processing costs by 20 per cent, reduced process cycle times by 80 per cent and reduced telecommunications costs by 30 per cent.

The company is continuously redeveloping and redeploying all of its ship-based systems, he said. It has placed a limit of 400K on the size of data component which ever needs to be transferred between ship and shore.

Mr Clay is very enthusiastic about the packet data aspects of Inmarsat Fleet, due to be introduced early next year. "We have been waiting for 2 years for mobile packet data service (MPDS) to come about," he said. "It looks as though it's going to happen. MPDS is the obvious way to go at the moment. But I don't know what the impact on the maritime industry will be."

Wallem is trailing Iridium satellite communications, primarily for voice calls, attracted by its prices of under $1 a minute for calls from one Iridium handset to another. "So far the results are very good, the voice communication is very clear and it's almost like a GSM phone. I think that we'll be taking that a bit further," he said.

Another initiative is an electronic seamen's book, to help manage its relationship with seafarers. It will use this tool to help schedule renewal of certificates for crew, or to manage payment seafarers make for telephone calls and e-mailing from the vessel.

Wallem is currently looking for a better system for crew e-mail and voice calls than the one it currently has. "We have capability on our vessels but I'm certainly not happy with it and I'm looking for a better solution," he said. "We want something that's economical for the crew and economical for Wallem. We're hoping to have a system by the first quarter of next year."

The main impetus in using technology, he said, is on keeping the costs down. "We recognise what's around the corner and try to be in a position to make most effective use of the technology when it appears," he said. "We are always looking ahead."

An important criteria is that the technology must be simple. "Simple means we can afford it and manage it," he said. "If we try to introduce complex solutions its very difficult to manage."

Wallem has a big training centre in Bombay; most of its crew come from India and the Philippines. Seafarers are given training in how to use Wallem's systems, although not so much in support and maintenance. If the computer crashes, the system can be rebooted directly from a CD. "That makes it a lot easier to manage and control," he said.

Andrew Craig-Bennett, Wallem Shipmanagement

Andrew Craig-Bennett, marketing director of Wallem Shipmanagement, talked about what he sees as the most useful applications for a ship-shore communications. "Ship-shore e-mail is now a charterer's requirement," he said. "Its much easier for a charterer to talk to the ship."

Mr Craig-Bennett expressed doubts about the usefulness of receiving electronic chart corrections at sea, sent over a ship-shore communications link. "The weekly Notices to Mariners are contained in the weekly correction CD," he said. "There should never be a need to download a chart correction off a satellite."

"Procurement amounts to a maximum of 30-35% of a ship's operating cost, as compared to 70%+ of a shipyard's operations," he said. "Manning is roughly 50% of a ship's operating cost and insurance and dry docking are not procured over e-procurement systems. Therefore e-procurement is relatively less important in shipowning as compared to shipbuilding."

A major new application for ship-shore communications is telemetry, allowing shipping companies to monitor what is happening onboard vessels, particularly with regard to the ship engine. "There has not been a new design for 2 stroke engines since the 1980s," he said. "In order to add value, engine companies need to add to the parts they've got."

Another application is cargo monitoring and tracking. "A large container ship could very well have 1000 reefer containers onboard," he said. "Providing tracking [enabling cargo owners to monitor cargo temperature from shore] is do-able, but we find that people will not pay for this service."

One of the most important uses of ship-shore communications is providing information to shipmasters about typhoons, so they can avoid them, but this is not difficult to do.

Cost drives nearly everything Wallem does with technology, he said. "We're in a very poorly paid business. If it saves pennies, then we do it. All our actions are driven by reducing the ship management operating costs."

The introduction of technology has actually caused businesses to become less integrated, rather than more integrated, he said. Wallem used to win customers on the basis of it offering a complete maritime service, including raising funds to finance ships and broking deals with charterers as well as managing them.

Now it finds itself focussing very specifically on providing technical management, crewing and procurement services, or just one of those three to a customer.

The maritime industry could benefit from taking a closer look at the documentation which is required, because some of it is outdated because of how technology has changed the industry. "I don't think we need notices of readiness and logbooks," he said. "But we need better seafarer certification systems; probably about 5 per cent of seafarers are not properly certified."

Geert Dokter, Wagenborg

Geert Dokter, fleet director of Wagenborg Shipping, a Netherlands-based company which has over 130 ships in the range from 1200 to 13000 ton deadweight, said he has become much more positive about what information technology can do over the past few months.

"One and a half years ago, for sure I would have not complied with a request to speak at a conference like this," he said. "But now we're at a stage where we can see results and be a bit more positive," he said.

The main impetus for using information technology, he said, was to cut down costs. "When we compare our operation with a captain owner, it is hard to beat him on costs," he said. "Every penny comes out of his own pocket. As our fleet is growing, processes become more complex."

The main way the company can use technology to reduce costs, he said, is by reducing the amount of spare parts it needs to keep, reducing down time and improving maintenance schedules. "This can only be achieved when data is up to date," he said. "We face unnecessary cost which could be avoided by having the right information at the right time."

Reducing the number of steps and rekeying of data involved in purchasing supplies would lead to good cost savings, he said. "I'm ashamed by how many steps it takes when a supplier purchase. But synergy between all players is crucial in order to get the maximum result."

Wagenborg first introduced software 2 years ago, which it uses for planned maintenance purchasing. The implementation was made in about 3 months, and was made easier because the company has a relatively young fleet, with all engine parts still available from manufacturers, and also because it purchased many of its vessels in series, with similar vessels having the same software requirements.

"We should have an integrated information system," he said. "It should be designed in smaller parts to let the system grow into the organisation. But it is easier to build a state of the art cable system than an information system. "

Persuading seafarers to use the technology is difficult. "It is not always easy to persuade people to change their belief and put all their effort in a new system," he said. "Until 3 years ago we were perfectly able to operate our vessels without this commercial device."

"There is an enormous shortage of qualified IT technicians," he said. "It is not easy to send of qualified people to an induction course. Seafarers like to be at home during their leisure time."

Chris Insall, Inmarsat

Chris Insall, maritime services manager with Inmarsat, talked a little more about Inmarsat Fleet. "It has been under development for 2.5 years," he said.

Inmarsat Fleet follows Inmarsat -A, first introduced in 1982 and with 13,000 installations still in service, and Inmarsat -B, the digital successor, launched in 1993.

Mr Insall admitted that Inmarsat was disappointed with how reluctant shipowners were to replace their -A terminals with -Bs. "-B never filled the reins of Inmarsat -A in a way which was expected," he said.

The main feature of Inmarsat Fleet is mobile packet data, which enables shipping companies to bring the vessel into their corporate networks, just like any other remote office.

Although pricing has not yet been announced, Mr Insall suggests that it will prove cheaper to send files which are over 100K by ISDN, and smaller files by MPDS.

Ship-shore data communications have been steadily increasing year by year, he said, and the introduction of Inmarsat Fleet should fire up the growth further. There are many possible new applications.

Remote telemedicine is thought to be a major application, with seafarers being able to talk interactively with a doctor. "Instant messaging holds a lot of potential," he said. "And we've seen a great growth in transmission of photographic messages."

Telemetry is expected to be a major application for Inmarsat Fleet, monitoring the vessel from shore, because it can carry short data bursts very cheaply. Various systems have already been developed, such as the Litton ISIS system, which can send operational data from the ship to shore.

Ian Canning, Iridium

Ian Canning, regional director of mobile satellite communications service Iridium, says he does not see Iridium so much as an alternative to Inmarsat in the maritime industry but a complement. People can use Inmarsat for safety critical communications and to comply with GMDSS, and use Iridium for more routine voice communications.

The current owners of Iridium purchased the company, which cost $4.5bn to set up, from its liquidators for just $25m when the company ran out of funds in December 2000. It currently burns $7m a month, just 8 per cent of the operational costs of the "old Iridium," and earns $4m a month from a contract with the US Department of Defence.

Calls cost from $1 a minute, compared to the "old Iridium" which had a complex sliding scale with charges ranging from $2/minute to $7/minute.

Iridium currently has 66 operational satellites, with a further 7 spares already in orbit. There are plans to launch a further 2 replenishment satellites in February 2002, and 2 replenishment satellites in June 2002. These new satellites, including the launch, were all included in the $25m that the new owners paid.

When originally launched, the original owners thought that the satellites would last just 5 years and then burn up. However in a recent review, consultancy Aerospace Inc said that Iridium has a totally viable constellation until 2010.

The satellites can carry voice communication and 2.4 kbps data. It has developed a special data optimisation and compression service, working together with Brand Communications, which allows the system to carry 10 kbps of normal internet data (which is compressed down to 2.4 kbps).

A shore burst data service is currently under development, which will carry messages of up to around 1,500 bytes, being charged per bit of data sent. It is expected to be released during 2002.

Paul Ashton, Xantic

Paul Ashton, VP innovations with ship-shore communications and shipboard software company Xantic, talked about the responsibility of a maritime software company to gget things right. "We have to get it as close to 100 per cent as we can," he said.

It is very important for software companies to keep in close contact with clients, to make sure the software they are developing meets the requirement. "Focus groups is the medium," he said.

The problem is that shipowners do not necessarily know what is possible with today's technology. When people talk about what shipping will be like in the future, they are often talking about what is possible with technology available today but has not yet been implemented.

Shipowners often adopt technology because they are forced to by legislation, he said. The design and development of software is often driven by the top 20 per cent of shipowners in terms of their interest in technology, including companies such as Wallem. "Wallem has specifically driven and influenced the design of software," he said.

Inmarsat Fleet is a very exciting development, he said. "I think a Fleet terminal is the obvious choice for all vessel newbuilds and retrofits. "What I find most exciting about Inmarsat Fleet is what it makes possible. It's not about doing the same things in a new way, it's about doing new things."

One example application is being able to check part numbers, before seafarers put together a requisition for supplies (to prevent the risk of them ordering the wrong thing). Systems can be put together which send files of say 50 bytes in one direction and 2/3K in the other direction, which cost only a few pence to send over mobile packet data. "We wouldn't dream of doing that before, because of the cost," he said.

Inmarsat Fleet gives shipping companies a choice of communicating data through circuit switched network (ISDN) or packet data network (MPDS). "ISDN is really for machine to machine," he said. "MPDS is for man and mouse."

Dimitris Theodossiou, Danaos

Dimitris Theodossiou, managing director of Danaos Management Consultants, talked about the difficulties of integrating systems together. "The majority of systems fail because they are too complex," he said. "Very few shipping companies have an integrated system in place."

Very few shipping companies know how to maintain an IT system and they are not used to it, he said. In future, it is likely that very few shipping companies will maintain their technology systems in house, but ask a technology company, possibly the developer of the software, to maintain it for them.

In future, the vessel would become just a node in the company corporate network, with complete integration between the ship and shore systems. "The vessel will directly upload and receive information," he said. "Systems will become more visible and more reliable."

Danaos will be releasing IP-based onboard systems, which utilise the mobile packet data elements of Inmarsat Fleet. This includes marine accounting and banking tools, integrating with Citibank.

Panteleimon Pantelis, Ulysses

Panteleimon Pantelis, director of Ulysses Systems, talked about Ulysses' task assistant for ordering and organising data onboard the vessel and helping people work together. "Every piece of information becomes immediately available to you," he said. "You can pick on whatever makes sense."

Most data systems, particularly onboard, are extremely disorganised, with data thrown together all over the place. Very few shipmasters would tolerate having their offices and bridges as messy as their data systems, he said.

The Task Assistant can be used to organise the forms which every shipping company uses to manage information in the company. "Every shipping company has about 200 forms, and the data in only 30 of them is controlled," he said.

Mark Story, Maritime Systems

Mark Story, managing director of onboard software company Maritime Systems, talked about his role as a systems hitman, asking clients where their biggest problems are then solving them. "We ask, where's your biggest pain, and go after it," he said.

Most problems occur "under the hood," he said, with the aspects of managing communication which are not immediately invisible from the software user interface.

Mr Story recommended attacking problems with a "pincer movement," approaching problems from the side, rather than from the bottom up or top down. However there needs to be a top down vision as to what needs to be achieved.

Maritime Systems has developed software to improve and manage ship-shore data communications, which it is currently selling for $250 per workstation, plus installation costs (between 4 hours and 4-5 days of an engineer's time).

Software systems developed in the 1980s are often complex, rigid, expensive to maintain and difficult to modify. "All too often, businesses have to adapt themselves to fit the software," he said.

Jonathan Elder, Brand Communications

Jonathan Elder, director of mobile data specialist Brand Communications, said there can be difficulties making a packet data system work over a mobile network. "Packet data is very appealing and very flashy," he said. "But it often doesn't work first time from an application viewpoint."

Brand has developed what it terms "session management middleware," software which sits between the shipboard computer and the shipping company, managing the data transfer flow over the ship-shore communications link and making sure it works properly.

E-procurement

Donald Staffin, vice president, business strategy and development, iShipExchange, said that frequently the problem with introducing procurement technology is not the technology itself but difficult attitudes.

"If you ignore the technology, you'll never get anything done," he said. "But if you push on, you're going to meet resistance."

There are many problems with people having unrealistic expectations of what the system can achieve, or just not co-operating; most technology companies have abandoned any grandiose visions of what they can do, and instead are opting for a more piecemeal approach, installing their systems bit by bit.

"Use the right tools, look for incremental success and remember the people," he said. "Its not just pushing a button."

"Its like having children," he said. "Just because you can't get one of them to do what you want doesn't mean that you can't get any of them to do what you want."

Mr Staffin said that in three years the majority of e-procurement transactions would be made using MTML (maritime trading mark-up language), an electronic communications standard for e-procurement.

Collin Lewis, CEO, MarineProvider, said he was refreshed that there are now only four companies offering e-procurement services, and all of them actually have a product. This is a far cry from a year ago, when there were about 20 companies which just had a concept they were trying to hype up. The company began earning e-procurement revenue in June this year. "We believe in building this in incremental steps," he said.

Terry Kearney, director of operations and marketing, Seasupplier, stressed that although the attitude of the industry towards e-procurement has changed, the same challenges are still there.

62 per cent of shipping companies use e-mail or paper to manage their procurement; 20 per cent have computers they have built in-house whilst 18 per cent use commercial e-procurement systems.

Many shipping companies think that the best way to get good prices is to negotiate long-term contracts with suppliers, but actually only 17 per cent of buyers actually use contracts, he said.

Mr Kearney said that many suppliers have developed complex systems in-house, and it would be very expensive for them to change to MTML systems.

Paul Ostergaard, CEO of e-procurement company ShipServ (which he classifies as a 'ship supply management company') said that the system is currently handling 5,000 transactions a month and has 175 buyers.

He sees a major aspect of ShipServ's role as serving the suppliers, helping them market their products to buyers and avoid the expense of face-to-face meetings.

"I think one day all software systems will be MTML compliant," commented Paul Ostergaard, "But not in our lifetimes. Meanwhile, there's a huge business opportunity for us to help standardise systems. This is 20 per cent technology and 80 per cent change management.

A major issue is data quality, making sure seafarers correctly state what their purchasing requirements are and making sure that suppliers understand completely what the seafarers are asking for. Improving data quality is something everybody needs to work towards.

"If suppliers don't give the correct information electronically, they can expect badly prepared orders," commented Paul Ashton, VP of innovation with Xantic.