BHP Billiton went direct to shipowners to book a capesize voyage for iron ore through a new online auction system.
In a statement to TradeWinds, BHP Billiton said it launched its first online auction this week for securing freight tonnage capacity. Rashpal Bhatti, vice president of freight at BHP Billiton, said the auction was limited to a pool of 13 shipowners and operators that had passed the company's vetting process.
Among the names said to have submitted bids are Japan's NYK Bulk, Mitsui OSK Lines, John Angelicoussis' bulker arm Anangel Maritime and Cargill.
The web-based auction, which has been in the works for a year, allows vessel owners and operators to compete to transport BHP Billiton commodities via a secure and confidential portal.
The first auction was held on 25 January for a cargo of 170,000 metric tonnes of iron ore from West Australia to China.
Bhatti says shipowners benefit from the platform through not having to pay commissions to brokers.
“We are very excited to bring web-based auctioning of our tonnage capacity demand to the market," Bhatti said. "This is another tool we intend to use to help drive efficiency in the industry for both vessel owner/operators and for BHP Billiton."
Other online platforms already exist for booking freight, such as the Tankers International and Ocean Freight Exchange.
One source at a tanker brokerage said the BHP move could be an "inflection point" for the brokering industry as charterers and shipowners seek to further wring out costs.
"It's only a matter of time," the source told TradeWinds.
