Additional funding allows NYSHEX to enhance its digital contracting solutions to the benefit of all shippers and expand to the retail sector
The New York Shipping Exchange (NYSHEX), the innovator of the first digital forward freight contract for global container shipping, today announces $13.5 million in additional growth financing led by NewRoad Capital Partners along with many original investors.
NYSHEX is the only multi-carrier solution in the industry that enables clarity of terms, visibility of performance, and resolution of exceptions for ocean contracts. The NYSHEX technology empowers shippers and carriers to digitally enter the customized, bilateral contracts they desire, while its process facilitates the enforcement of transparent, two-way performance commitments.
Since 2015, over 1,500 shipper and NVOCC members and six global ocean carriers have joined NYSHEX to gain the alignment of expectations with their contract partners as well as unbiased resolution when contract exceptions arise. With enforceable contracts gaining momentum in the industry, NYSHEX is the only solution available today which is built for shippers and incorporates a standardized set of rules common across all six participating carriers.
With 374% year-on-year growth and an average contract size approaching 1,000 TEUs, NYSHEX continues to consistently provide 99%+ compliance to contract versus the industry average of 67%.
NYSHEX member benefits include:
- Shippers and NVOCCs customize enforceable contracts from one to 52 weeks in duration, fixing their rates, guaranteeing their space and equipment allocations, and mitigating their exposure to supply chain volatility.
- Carriers now have 99%+ certainty in future cargo flows, enabling better vessel planning and uptake management, more dynamic pricing, and improved working capital.
Shippers utilize NYSHEX for free as the $5/TEU cost is borne by carriers.
With the additional investment, NYSHEX intends to expand into new shipper segments, and grow its geographic footprint starting with Europe in 2020. NYSHEX reports that retailers are particularly exposed when the flow of cargo is disrupted as stockouts can lead to lost sales, diminished share price, and even insolvency. Over the coming months, NYSHEX will launch an additional solution aimed at enabling retailers to exceed their end-customers’ expectations, optimize processes, mitigate risk, and reduce costs.
“We are very excited about our partnership with NewRoad Capital Partners. Their knowledge and industry connectivity will allow us to enhance our product for shippers, and their retail expertise provides deeper insight into pain points we can resolve for retailers,” says NYSHEX CEO Gordon Downes.
“NYSHEX allows shippers to create an ecosystem with its supply chain partners to enable the reliable movement of cargo. The results are proactive and swift exception resolution, less rework, and streamlined, fluid operations, communications, and business processes. This benefits every retailer, and anyone shipping internationally. We have seen that companies built on a strong purpose with deep-rooted core values outperform the rest,” said Chris Sultemeier, Operating Partner of NewRoad Capital Partners and former Executive Vice President of Logistics for Walmart Stores, Inc.
“As a founding carrier, we are pleased with the positive impact and growth that NYSHEX has demonstrated. We continue to support the goal of NYSHEX of incorporating two-way commitments that are transparent, standardized, and enforceable for all parties involved. We look forward to partnering and growing with NYSHEX on new trade lanes going forward,” says Peter Hildebrandt, Head of Transformation at A.P. Moller-Maersk.
“The most fundamental component of a fluid supply chain is mutual trust between shipper and carrier. Using NYSHEX has enhanced the ability for us and our customers to plan and provides the highest level of assurance that both parties are committed to the contract. If mutual performance guarantees become the norm for contracting, the whole industry benefits. As a founding NYSHEX carrier, The CMA CGM Group, a world leader in shipping and logistics, is committed to playing a major role in this industry advancement. Innovation is in the Group’s DNA with the ambition to become the leader in digital shipping,” says Nick Fafoutis, Chief Commercial Officer at CMA CGM (America) LLC.
“Using NYSHEX Block Contracts has helped us mitigate our risk and many of the problems we experienced on direct contracts such as rolls, delays, and getting a booking when we needed it. It’s given us more confidence in our carriers and allowed us to grow our volumes with them,” says April Zobel, Logistics and Export Manager for The Andersons, Inc.
“With support from shippers and carriers around the globe, NYSHEX is transforming global trade by increasing transparency and minimizing supply chain disruption. Collate Capital is proud to follow-on our original investment and support NYSHEX through the next stage of their impressive growth,” says Mark Weaver, Managing Partner of Collate Capital.
“NYSHEX helps carriers and shippers manage price and service risk. This is imperative for shipping, just as it was for the many other industries that have been transformed by the introduction of an exchange. Given our focus on highly-scalable businesses and teams with strong domain knowledge, the growth that NYSHEX has been able to deliver and its positive impact to the industry, we are pleased to continue our support,” says Donna Redel, Investor/Board Member at New York Angels, and former Chair of COMEX and Managing Director of World Economic Forum.