NEW YORK, NY–(Marketwired – Aug 21, 2017) – The New York Shipping Exchange (NYSHEX), the innovator of the first digital forward freight contract for global container shipping, today announces the completion of its Series A round of funding. Hapag-Lloyd and CMA-CGM joined the investment round, along with additional investments from GE Ventures and Goldman Sachs — the Series A investment totals $13 million.
Hapag-Lloyd, CMA CGM, MOL and OOCL are currently working with NYSHEX. NYSHEX will continue to bring on additional carriers to grow its service offerings and pursue future funding to build a comprehensive global exchange.
NYSHEX provides the global shipping industry with a simplified and standardized “over-the-counter” exchange for entering enforceable freight contracts. NYSHEX is compliant with all U.S. regulations as well as the Federal Maritime Commission’s contract filing requirements. It is based on proven and relevant principles from the New York Stock Exchange, Chicago Mercantile Exchange, and the London Metals exchange.
Buyers of container shipping services: shippers and NVOCCs, use NYSHEX at no cost. Initially, they must be pre-accredited with NYSHEX to get started. Ocean carriers pay a transaction fee of $5/TEU.
NYSHEX is different from the traditional long-term contract and spot market contract. NYSHEX offers a third option, defined by:
Predictable rates that lack the volatility of current rate practices
Rates that are all-in, no GRIs, surcharges, etc. are tacked onto offers on NYSHEX
Buyers pay liquidated damages for no-show containers which enable carriers to improve vessel planning and utilization
Equally, carriers pay liquidated damages when the contract is not operationally fulfilled
Shippers can receive fixed rates, enforceable contracts, accurate invoices and a significantly more reliable supply chain, with above 99 percent reliability.
Forwarders and NVOs create value for customers with a combination of products and services that best meet their supply chain needs.
Carriers now have 97 percent certainty in future cargo flows, enabling better vessel planning and uptake management, more dynamic pricing, and improved working capital.
“NYSHEX is addressing some of the most fundamental problems facing the ocean shipping industry today — uncertainty and inefficiency,” said Mark Chadwick, Executive Sourcing Leader, GE.
“CMA CGM welcomes the digital innovation that NYSHEX is bringing to the container shipping industry. Digitalisation is essential to offering our customers new and differentiated products. This partnership is one more step in CMA CGM’s digital transformation, aiming to continuously create added value for its customers,” said Rodolphe Saadé, CEO of CMA CGM.
“Hapag-Lloyd invested because we believe NYSHEX can help solve the challenge of unreliability and unpredictability that affects everyone in the container shipping industry, by ensuring commitments are met by both sides,” said Thorsten Haeser, Chief Commercial Officer of Hapag-Lloyd.
“It is best practice for participants of an exchange to also be investors in the exchange, and we are delighted to have CMA-CGM and Hapag-Lloyd as shareholders, along with GE Ventures, Goldman Sachs and our other strategic investors. This demonstrates the industry’s confidence in the role that NYSHEX is playing in global shipping,” said Gordon Downes, CEO of NYSHEX.
About The New York Shipping Exchange (NYSHEX)
Founded in 2015, The New York Shipping Exchange (NYSHEX) is enabling the transformation of the container shipping industry through two innovations: a new standard form freight contract and new way to trade ocean freight digitally. NYSHEX is a solution developed for the industry by the industry’s leading shippers, NVOCCs and carriers. The mission of NYSHEX is to help shippers, NVOCCs and carriers overcome the historic inefficiencies in ocean freight contracting and in doing so, reveal the $23 billion economic opportunity that exists for the shipping industry each year. For more information visit: www.NYSHEX.com