E-AUCTION - KEY QUESTIONS ANSWERED

Q. What is E-Auction?

A. E-Auction is a digital solution to replace the traditional shout auction process. The E-Auction system consists of a clock sales module and an online bidding module selling the lots in a catalogue to the highest bidder. It also has a report module generating reports for each type of user such as buyer, supplier, auction staff and auction management.

The E-Auction system allows users to use a smartphone, tablet, laptop or PC to follow the sale, purchase or consult sales and statistical information.

It also has an app which allows buyers to buy on the clocks and request information in a very user-friendly way by using their Android phone or iPhone. It is also possible to use the app on a tablet. In other words, it allows mobile working.

Q. What will change in the market?

A. The desire of the Board of PPA is that only essential changes are made in the Fish Market to support E-Auction, therefore there will be many aspects of the process currently experienced that will go unchanged. There will have to be changes to some practices, for example, grading, and cataloguing of fish to support online buying. There will also require to be some upgrades of the market, for example, WiFi systems. We also plan to install monitors within the current meeting room to display the digital auction live. There will be more detail available as we progress through detailed design.

Q. How many “clocks” will there be?

A. We plan to change as little as possible, therefore we are initially proposing four digital clocks to replace the four traditional shout auctions. It may be the case that we increase or decrease the number of clocks with the benefit of time and experience in the future.

Q. Will I still be able to view and purchase the products on the market floor?

A. Yes – the market will be open for viewing / taking part in the auction as is the case presently.

Q. Who will manage the auction on a daily basis?

A. It is envisaged that there will be no change – the sales offices that currently operate at Peterhead shall continue. PPA personnel shall also be on hand.

Q. Will there be an opportunity to receive training and guidance on the use of the technology employed?

A. Yes – we hope to have the system up and running in advance of an official launch date to allow training and experience of using the systems by the software provider and PPA ahead of the first E-Auction. There are many buyers that already use E-Auction in other fish markets and therefore will already be familiar with the technology.

Q. Who will populate the digital catalogue when the fish is landed?

A. At present when a vessel lands, the data input into the Port's systems is undertaken by PPA Fish Market staff. The same data we input into PPA systems is basically the same landing data required for pre-sale catalogue for E-Auction. This is a point of detail that PPA and the sales companies shall discuss and agree on during detailed design.

Q. How will the fish be weighed?

A. We do not propose to weigh all fish like some smaller E-Auction markets – this is simply not practical for the volumes and species at Peterhead Fish Market. We plan on purchasing new weighing equipment for the sample weighing as required by the Marine Directorate. This new equipment will communicate directly with the E-Auction system such that weight information can be communicated directly to the E-Auction catalogue in readiness for the auction.

Q. How will the fish be graded?

A. The grading of fish is one of the most important factors for a successful E-Auction. A simple yet effective grading table requires to be developed that suits vessels and processors alike. PPA has a number of examples of grading tables being successfully used in a number of other E-Auction markets therefore this subject will be further discussed with the relevant stakeholder groups during detailed design. Note that on agreement of a grading table, this could be implemented ahead of E-Auction becoming live to allow all to adjust accordingly.

Q. What happens if vessels don’t comply with an agreed future grading structure?

A. This is a point for consideration during detailed design of the E-Auction system. However, it seems obvious that should the grading system that has been agreed not be followed then fish would most likely be sold as “ungraded” which would in most cases attract a poorer price compared with graded fish.

Q. Will there be an additional cost to stakeholders for E-Auction?

A. PPA do not propose to adjust our fee structure in order to implement E-Auction.

Q. Will the E-Auction be slower than traditional shout auction?

A. PPA has undertaken a considerable amount of analysis on the time our current shout auction takes for every purchase. We have received time data from a number of other E-Auctions and the results of our analysis shows that the E-Auction can be quicker. We acknowledge however that in the early phase of launch, time might not be optimal as companies become more efficient in using the technology. We therefore may examine options for starting the auction earlier in the early phase of launch.

Q. Will Fish Market rules be changed?

A. Yes – it is inevitable that the rules for our Fish Market will have to adapt to cater for the new technology being used. Further details of any necessary changes shall become evident as we move through the detailed design.

Q. Who will put tallies on fish sold for remote buyers?

A. This is a matter that needs resolved between the sales companies and PPA during detailed design.

Q. Is there an opportunity to get involved in helping with detailed design of the E-Auction?

A. Yes – As PPA highlighted in the press release issued in late November 2024, we understand that it is vital for our team to engage with relevant stakeholder groups throughout the process of detailed design to ensure best practice and successful implementation of E-Auction. We have developed a stakeholder engagement matrix with a high number of specific issues that require to be resolved. We therefore encourage all market users to take the opportunity to further engage on this subject as we progress forward. PPA shall be issuing out invites in the near future to a cross section of each of the stakeholder groups using the Fish Market however any willing (and relevant) participant is welcome therefore if you don’t hear from PPA in the next few weeks then please get in touch.

Q. What happens if the buyer has an issue with quality of product?

A. Should the buyer have a quality issue then this would be managed by the respective sales office as is currently the case.

Q. What will the effect of E-Auction have on price?

A. There are many factors that can positively or negatively affect price. Shout auctions rely on buyers vocally outbidding each other, which can lead to inconsistent results. If buyers are conservate or reluctant to bid, products may or may not sell for less than their value. The E-Auction clock ensures that prices reflect the true demand and provides a transparent, impartial platform, reducing variability caused by human factors in shout auctions. By reflecting true demand, the clock system ensures a more transparent environment for pricing.

Peterhead Port Authority plans on updating this FAQs document as detailed design progresses and decisions are made on the various points that require stakeholder engagement and decision making.