In this issue...

Interview
	Michael Drayton
State of the market
	Tanker update
	BIMCO update
	Dry bulk
	S&P
FFAs & FSA
	A new angle on FFAs?
	Oxford Analytica
Ice Class
	The ice ship cometh Will shipping’s ice age start to thaw, asks Clive Woodbridge
	Class societies Providing training for companies – and even competitors – is becoming a way of expanding services and winning new business
Cargo focus
	In short supply Oil demand growth is not enough to allay short-term tanker fears
	Doing business in the United Arab Emirates A thriving economy and well-regulation commercial environment make the United Arab Emirates an increasing popular choice for business
Regional focus
	South America The fast-developing oil and biofuel industries are driving the renewal of South America’s shipbuilding industry, but ports need to keep apace
Port focus
	Rotterdam Construction delays on the Maasvlakte expansion programme have finally been overcome. But will it be enough?
IT
	Getting into the flow A new computer application aims to streamline short sea supply chains and cut congestion throughout Europe
Maritime City
	Dublin Vision Coordination, determination and ambition will ensure Dublin’s success
Insurance news
	Insurance parlance ITIC
	Ship valuations
Out to lunch
	On the river The Baltic watches the Master Shipbroker take on the Thames Waterman in The port of London Challenge

Getting into the flow

A new computer application aims to streamline shortsea supply chains and cut congestion throughout Europe

Paper jams lead to traffic jams

Europe’s creaking road infrastructure is facing increasing pressure as heavier trucks in ever-growing numbers are causing congestion, environmental pollution and physical damage. To help tackle the over-use of our roads, the EU has implemented a funding programme – Marco Polo – which allocates cash to projects that demonstrably take goods off the roads and onto the more environmentally friendly and uncongested mode of maritime transport.

The data jam

Shortsea XML won almost €1 million under Marco Polo’s third call last year to operate under the “common learning” section of the programme. It aims to make shortsea liner shipping more attractive to shippers by reducing the administrative processes inherent within a shortsea-based logistics chain. Its thesis is based on a recent Norwegian study which concluded that the many players involved in a shortsea logistics chain are responsible for exchanging large quantities of data, often in non-standard formats. This results in much re-typing of information and manual intervention to input data into local systems which, according to the study, accounts for some 20-30 per cent of the total supply chain costs. Shortsea XML sets out to reduce this administrative burden, making shortsea shipping more competitive with road and removing price as a barrier to effective modal shift from road to sea.

Faster data exchange

At the heart of the project is the creation of a series of standardised messages covering the four core areas of scheduling, booking, operations and invoicing. Established by a team of leading experts from the ports, carriers, logistics and IT sectors, these messages aim to establish a set of data formats containing the required information in a logical and definitive structure. The new message formats will be exchanged between the many players participating in the supply chain using XML technology.

XML is widely accepted as the new-generation technology platform for information exchange and can be found within most new software applications. It is also cheaper and more flexible than the older platforms. These new message formats, based on XML technology, will allow information to be streamlined and to flow freely between the many supply chain participants. Mindful that a number of shortsea players operate their own internal systems based on other technology platforms, Shortsea XML will also create a series of translation hubs allowing full integration between its message format and other bespoke systems.

When introducing new standards it is important that they are accepted internationally. Shortsea XML is registered with the United Nations standards organisation UN/CEFACT which approves all new standards on a global basis. Recognising that UN approval takes time, and that the new standards will require to be maintained when the project ends in September 2008, Shortsea XML has an arrangement with Dutch-based maritime standards organisation SMDG to take over and continue the project work at the end of next year.

But does it work?

Shortsea XML also has a remit to prove that its standards work using real industry players in live situations. To achieve that a range of project participants have agreed to take the new message formats and implement them in their working environments. Currently, shortsea carrier SeaCargo and logistics company VCK are proving the viability of the newly created bookings messages and the Port of Marseilles is assisting with the shore-side reporting element.

Other proof-of-concept scenarios will follow. The project’s main deliverable is the creation of a series of standardised messages which have been proved to work. When implemented and adopted, they will streamline administrative processes, lower costs, reduce errors, improve transparency, free up staff and improve customer service. They will also assist with the ever-increasing requirement to report to shore-side authorities.

Overseeing the project is an advisory board comprising leading industry figures from the ports, liner, shipper and IT sectors and leading the project on a day-to-day basis is a small team headed by Norwegian-based standards organisation NorStella. Around 30 companies are participating in the project but there is always room for more. The message standards are free and open and the project team is actively encouraging more participation from all sectors of the supply chain.

 

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