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New York Shipping Exchange Announces Strong 2020
[ April 16, 2021 // Gary G Burrows ]The New York Shipping Exchange (NYSHEX), a neutral, container shipping contracting solution that enables two-way shipper-carrier commitments, announces that adoption of NYSHEX contracting grew over 200% in 2020 due to the evolution of its industry leading digital contract model. Growth was particularly strong in the transpacific eastbound trade with over 1,000% increase in volumes.
The NYSHEX contract is enabling +99% contract compliance providing greater supply chain reliability and planning, better cost management and forecasting, and strengthening carrier-shipper business relationships.
Significant rate volatility, equipment shortages and unpredictable service levels in today’s container shipping market environment are resulting in significant supply chain stress and tension between shippers and carriers. There’s a critical need for contracts with greater accountability and certainty which would offer the industry greater predictability and improve stakeholder collaboration across the board.
In the last year, based on member feedback, the NYSHEX exchange has evolved from supporting only single port to port transactions to enabling long term contracts that support complex multi-port networks. Carriers and shippers are now empowered to strategically align on volume commitments for specific global trade lanes over specific time frames in exchange for fixed prices, committed equipment and vessel space allocations during those defined times.
NYSHEX is able to provide this critical service because of (1) the NYSHEX contract standard that governs two-way commitments, (2) its technology that gives shippers and carriers visibility into their performance and confidence to deliver on obligations, and (3) its exception management service that resolves performance issues in a fair and amicable way that preserves carrier-shipper relationships.
NYSHEX has recently strengthened its leadership team with the addition of Adam Ferris as Vice President of Finance:
“NYSHEX is playing an important role in transforming ocean contracting as the digitization of global supply chains accelerate. We are the leading platform for reliable contracting in ocean freight with unparalleled support from shippers and carriers. As a testament to our value proposition, 100% of our BCOs, NVOs, and carriers renewed their NYSHEX contracts in Q4–2020 even in one of the most challenging environments on record. As a former investor and board observer of NYSHEX, I am privileged to have seen the company grow from its early days. I am thrilled to join a stellar team and to have a more active role in shaping the company’s strategy,” said Adam Ferris, Vice President of Finance at NYSHEX.
“Retailers must establish best-in-class supply chain capabilities to remain competitive. Supply chain complexity is growing, driven by consumer demands and competitive pressure in the marketplace. After a challenging year of disruptions that have resulted in persistent service failures, exceeding freight budgets and customer disappointments, shippers are actively seeking innovative ways to negotiate new agreements that deliver a higher degree of predictability for both cost and service,” said Bryan Most, Senior Vice President of Retail at NYSHEX.
Tags: New York Shipping Exchange