OIL FIRMS, CARGILL AND CLARKSONS TO LAUNCH BULK SHIPPING ELECTRONIC VENTURE

OIL FIRMS, CARGILL AND CLARKSONS TO LAUNCH BULK SHIPPING ELECTRONIC
VENTURE

OIL FIRMS, CARGILL AND CLARKSONS TO LAUNCH BULK SHIPPING ELECTRONIC
VENTURE

   The oil majors BP Amoco, Royal Dutch/Shell Group, the global commodities trader Cargill and the shipbroker Clarksons have announced that they are jointly setting up an Internet-based on-line exchange for the bulk shipping market.

   In a joint release, the partners said that the new company, LevelSeas.com, will be launched during the third quarter of this year.

   The electronic venture will “revolutionize the traditional marketplace where ship owners, shipbrokers and cargo owners conduct business,” the companies said.

   LevelSeas.com will provide on-line chartering, pre- and post-fixture activities, market intelligence, and risk management tools, including freight derivatives. It will offer a comprehensive “life-of-the-voyage” solution for all seaborne wet and dry bulk commodity shipping, they added.

   The venture has the backing of investors who represent significant volume in the $100 billion-a-year global bulk shipping market. BP Amoco and Royal Dutch/Shell are major petroleum and petrochemicals groups. BP Amoco Shipping owns or operates an international fleet of crude and product tankers carrying cargoes for the group and for third parties. Through its affiliate Shell International Trading and Shipping Company Ltd., Shell runs a fleet of 53 ocean going vessels, plus a further 13 vessels on

time charter.

   Cargill is a global charterer of primarily dry bulk commodities and owns and operates vessels. Clarksons is the world’s largest shipbroking group.

   The companies said that LevelSeas.com will provide greater market access, lower costs and greater efficiencies.

   Initially the company will be based in Europe, the companies said.