- Ocean Network Express (ONE) is joining the New York Shipping Exchange (NYSHEX), a digital freight marketplace for ocean shipping, according to a press release on Thursday. It becomes the latest container line to join the digital contract platform New York Shipping Exchange.
- With seven of the leading global ocean carriers are now on board, over 60% of global capacity is represented. NYSHEX -already includes CMA CGM, COSCO, Hapag-Lloyd, HMM, Maersk Line and OOCL- is providing his shipper members a broad array of service options to choose from.
- Digital contracts made through NYSHEX have achieved a fulfillment rate of 98.4%, substantially improving reliability for both shippers as well as carriers. Furthermore, ONE’s membership comes at a time when NYSHEX is expanding the services it offers.
“NYSHEX enables us to offer our customers an additional platform to contract with us, whereby the agreed terms are mutually enforceable. The guaranteed equipment, space and price that we offer through NYSHEX will help our customers to plan their supply chain and to lock in their transport costs up front. Having our customer’s commitment to show up with their cargo as contracted, allows us to optimize our network and more accurately plan our vessels, which in turn provides more cost effective and reliable services,” said Sundeep Sibal, Senior Vice President of Trans Pacific and Trans Atlantic trade at ONE.
ONE will initially begin posting selective offers for the Transpacific Eastbound trade on the exchange from mid-December 2019 for January sailings.
For shippers that overbook, NYSHEX helps sell the excess containers in a secondary market. “Let’s say a shipper has contracted for 100 containers for a particular week and then, as the sail date approaches, they realize they only need 80. That shipper can re-post the 20 containers they don’t need anonymously back onto NYSHEX,” Cockrell writes. Once the transaction is finalized, the original shipper can earn a profit and is released from the original contract without negatively impacting the carrier.
“We are thrilled to welcome ONE as a carrier member of the exchange. The ONE approach to container shipping today is refreshing and relevant, we look forward to the continued collaboration and innovation,” added Gordon Downes, CEO of NYSHEX.
Digital contracts made through NYSHEX have achieved a fulfillment rate of 98.4%, substantially improving reliability for both shippers as well as carriers. Furthermore, ONE’s membership comes at a time when NYSHEX is expanding the services it offers. From early 2020 the NYSHEX system will support more customizable terms that form part of the digital and enforceable contracts. For example, where the shipper and carrier agree, contracts will be able to cater for multiple origins and destinations, as well as longer validities.