Peter Kitching, chairman of the Exchange says: "We have committed an investment of £1 million to the first stage of this project and we have plans to commit a further £2 million over the next few years as we add new features and enhancements to our electronic trading floor."

The key components of the first stage platform involve an electronic trading floor which will enable Exchange members and other subscribers to search for and match available ships with available cargoes on a world-wide basis. A database containing details of 40,000 bulk ships and information on 8500 ports forms a part of the electronic trading floor.

A full range of shipping freight market information will be published daily by the Exchange - embracing some 48 daily route rates for both dry bulk and oil cargoes and a list of ships for which charters have been fixed - complemented by sophisticated software to chart trends in the route rates and principal Baltic indices.

The platform also includes a 'click to trade' facility which will enable the online trading of forward freight agreements (FFAs) which has been approved by the Financial Services Authority, and a new risk management area.

The electronic platform does not include a negotiation platform and detailed negotiations will continue to be conducted by shipbrokers using traditional methods.

Members of the Exchange who have registered as users of the electronic platform will benefit from a free trial period which will run to the end of March next year; non-members will be offered a three month trial period.