eeSea is building a platform for the global shipping container industry that provides transparency for its primary stakeholders such as carriers, port operators and cargo owners.
Containershipping is an industry that generates trillions of dollars and is an important part of global trade. 95% of all manufactured goods are transported on container ships through container ports. The industry deploys assets in the hundreds of trillion dollars, such as vessels, ports and containers, and represents about 3% of global man-made greenhouse gas emissions. Industry margins in the low single digits are caused by inefficiencies, low utilization and fragmentation. One of the main culprits of this is a lack of transparency; vessels sail too fast, burning excessive fuel, only to arrive at a congested port; supply chains incorporate 5-10% buffers to account for delays; billion-dollar port assets, like the Port of Aarhus, are generally considered fully utilized at 80%; ocean freight rates are extremely volatile and can drop or increase by 50% in the space of three months due to a lack of understanding of the supply and demand balance (vessel utilization).
eeSea sells access to the industry intelligence platform and data feeds, through a subscription model. Lead generation and deal closing entails a B2B solution sales process, and MRRs range from USD 2,500 – 15,000, depending on the solution sold and the scope/size of the client. The business model is scalable; the same data and insights can be sold multiple times at no extra production cost. While the solution sales model does require a sales force, CAC will drop as the product catalogue is streamlined and the eeSea name recognition improves. Barriers to entry (inability to copy) are significant; on the sales side, word of mouth and reputation are important, and as more clients and data sources are onboarded, the robustness and accuracy of our algorithm improves. There are significant network effects in establishing eeSea as the single version of the data; ports and cargo owners see the same vessel ETA; and carriers and cargo and ports can build contractual performance obligations (on-time performance, efficiency) based on on-time performance metrics from eeSea.
Combining multiple data sources, eeSea has mapped the global industry, bottom up. Adding elements of machine learning and AI through a proprietary algorithm allow their platform to offer real-time vessel tracking and forecasting, carrier reliability and transit time analytics, liner schedule normalization as well as strategic market intelligence on global liner services and ports and terminals. Customers log on to the eeSea web app or access the data through an API. The elementary use case is that transparency and confidence in the forecasted vessel ETAs allow port communities and cargo owners alike to properly plan assets and supply chains, avoid costly incidents and reduce buffers and cargo transit times. Vessel forecasting, while only a component, is at the heart of full end-to-end supply chain visibility. The savings and optimization potential for each of these stakeholders amounts to millions of dollars annually; not to mention the savings in vessel and port equipment GHG emissions.
The addressable market consists in the first wave of about 2,500 medium and large ports and 2,500 medium sized cargo owners; next some 10,000 smaller ports, and 50,000 small to medium sized cargo owners. Carriers, service providers (such as rail operators), consultancies and research project groups add another 10,000 medium to large size potential clients.
What has been accomplished?
eeSea is currently in the early-revenue stages. They serve several of the industry’s biggest names, launched their Vessel Forecasting module in early 2019 and have already sold it to 5 clients, at ARRs ranging between USD 25,000 and 80,000.
A group of Danish and international Business Angels
Founded in 2015
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