Can digitization speed ocean carrier recovery?

Since its governance model has won the approval of the Federal Maritime Commission at this time last year, The New York Shipping Exchange (NYSHEX) has helped the ocean carrier industry move to a collaborative platform.

The latest development was when the alliance, ONE, joined the other groups of carriers who use NYSHEX to offer shippers the ability to enter digital and mutually enforceable contracts. 

With seven of the leading global ocean carriers on NYSHEX, over 60% of global capacity is represented. The member carriers also represent all three container shipping alliances: 2M, Ocean Alliance and THE Alliance, providing NYSHEX shipper members a broad array of service options to choose from. 

Sundeep Sibal, Senior Vice President of Trans Pacific and Trans Atlantic trade at ONE, says NYSHEX will enable them to offer shippers an additional point of contact, whereby the agreed rates and service terms are mutually enforceable. 

“The guaranteed equipment, space and price that we offer through NYSHEX will help our shippers to plan their supply chain and to lock in their transport costs up front,” he adds. 

According to spokesmen, 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.”