CMA CGM and Hapag-Lloyd join NYSHEX's Series A investment round
- Author:Alex
- Source:Sunny worldwide logistics
- Release Date:2017-08-23
THE New York Shipping Exchange (NYSHEX) has finalised a US$13 million Series A round of funding with ocean carriers CMA CGM of France and Hapag-Lloyd of Germany joining the investment round, along with additional investments from GE Ventures and Goldman Sachs.
The NYSHEX is a digital exchange that allows shippers, freight forwarders and ocean carriers to engage in the consummation of forward freight contracts, American Shipper reported.
The overall goal of the NYSHEX is to get both parties in a transaction to agree to mutually enforceable contracts that penalise either side for failing to live up to the terms of the contract, while still using the industry's standard contract format.
Buyers pay liquidated damages for no-show containers, which enable carriers to improve vessel planning and utilisation, while carriers pay liquidated damages when the contract is not operationally fulfiled, the NYSHEX explained.
In addition, rates are "all-in" meaning there are no general rate increases or surcharges tacked onto offers on the NYSHEX.
Buyers of container shipping services, such as shippers and non-vessel-operating common carriers, use the NYSHEX at no cost, and just have to initially be pre-accredited with the exchange to get started, while ocean carriers pay a $5 per TEU transaction fee.
CMA CGM, Hapag-Lloyd, MOL and OOCL are currently working with the NYSHEX. Looking ahead, the NYSHEX said it "will continue to bring on additional carriers to grow its service offerings and pursue future funding to build a comprehensive global exchange."
The NYSHEX is a digital exchange that allows shippers, freight forwarders and ocean carriers to engage in the consummation of forward freight contracts, American Shipper reported.
The overall goal of the NYSHEX is to get both parties in a transaction to agree to mutually enforceable contracts that penalise either side for failing to live up to the terms of the contract, while still using the industry's standard contract format.
Buyers pay liquidated damages for no-show containers, which enable carriers to improve vessel planning and utilisation, while carriers pay liquidated damages when the contract is not operationally fulfiled, the NYSHEX explained.
In addition, rates are "all-in" meaning there are no general rate increases or surcharges tacked onto offers on the NYSHEX.
Buyers of container shipping services, such as shippers and non-vessel-operating common carriers, use the NYSHEX at no cost, and just have to initially be pre-accredited with the exchange to get started, while ocean carriers pay a $5 per TEU transaction fee.
CMA CGM, Hapag-Lloyd, MOL and OOCL are currently working with the NYSHEX. Looking ahead, the NYSHEX said it "will continue to bring on additional carriers to grow its service offerings and pursue future funding to build a comprehensive global exchange."