Press Release: August 21, 2017
NYSHEX Poised for Expansion as it Finalizes Series-A Investment
- Hapag-Lloyd and CMA-CGM invest, along with GE Ventures and Goldman Sachs, resulting in total investment of $13M -
NEW YORK, NEW YORK – August 21, 2017 – The New York Shipping Exchange (NYSHEX), the innovator of the first digital forward freight contract for global container shipping, today announces the completion of its Series A round of funding.   Hapag-Lloyd and CMA-CGM joined the investment round, along with additional investments from GE Ventures and Goldman Sachs - the Series A investment totals $13 million. 
 
Hapag-Lloyd, CMA CGM, MOL and OOCL are currently working with NYSHEX.  NYSHEX will continue to bring on additional carriers to grow its service offerings and pursue future funding to build a comprehensive global exchange.  
 
NYSHEX provides the global shipping industry with a simplified and standardized “over-the-counter” exchange for entering enforceable freight contracts. NYSHEX is compliant with all U.S. regulations as well as the Federal Maritime Commission’s contract filing requirements. It is based on proven and relevant principles from the New York Stock Exchange, Chicago Mercantile Exchange, and the London Metals exchange.
 
Buyers of container shipping services: shippers and NVOCCs use NYSHEX at no cost. Initially, they must be pre-accredited with NYSHEX to get started. Ocean carriers pay a transaction fee of $5/TEU.
 
NYSHEX is different from the traditional long-term contract and spot market contract. NYSHEX offers a third option, defined by:
  • Predictable rates that lack the volatility of current rate practices
  • Rates that are all-in, no GRIs, surcharges, etc. are tacked onto offers on NYSHEX
  • Buyers pay liquidated damages for no-show containers which enable carriers to improve vessel planning and utilization
  • Equally, carriers pay liquidated damages when the contract is not operationally fulfilled
  • Shippers can receive fixed rates, enforceable contracts, accurate invoices and a significantly more reliable supply chain, with above 99 percent reliability.
  • Forwarders and NVOs create value for customers with a combination of products and services that best meet their supply chain needs.
  • Carriers now have 97 percent certainty in future cargo flows, enabling better vessel planning and uptake management, more dynamic pricing, and improved working capital.
 
“NYSHEX is addressing some of the most fundamental problems facing the ocean shipping industry today – uncertainty and inefficiency,” said Mark Chadwick, Executive Sourcing Leader, GE.
 
“CMA CGM welcomes the digital innovation that NYSHEX is bringing to the container shipping industry. Digitalisation is essential to offering our customers new and differentiated products. This partnership is one more step in CMA CGM’s digital transformation, aiming to continuously create added value for its customers,” said Rodolphe Saadé, CEO of CMA CGM.

“Hapag-Lloyd invested because we believe NYSHEX can help solve the challenge of unreliability and unpredictability that affects everyone in the container shipping industry, by ensuring commitments are met by both sides,” said Thorsten Haeser, Chief Commercial Officer of Hapag-Lloyd.
 
“It is best practice for participants of an exchange to also be investors in the exchange, and we are delighted to have CMA-CGM and Hapag-Lloyd as shareholders, along with GE Ventures, Goldman Sachs and our other strategic investors. This demonstrates the industry’s confidence in the role that NYSHEX is playing in global shipping,” said Gordon Downes, CEO of NYSHEX.


Press Release: March 21, 2017
Goldman Sachs Principal Strategic Investments and GE Ventures lead $8.5 million investment in NYSHEX
- Series A enables NYSHEX to accelerate the adoption of digital forward contracts for ocean shipping -
The New York Shipping Exchange (NYSHEX), the innovator of the first digital forward freight contract for global container shipping, today announces $8.5 million in Series A funding led by Goldman Sachs Principal Strategic Investments and GE Ventures, with participation from Blumberg Capital, Tectonic Capital and other investors.
 
Founded in 2015, NYSHEX provides the global shipping industry a standardized “over-the-counter” exchange for entering enforceable freight contracts. It is based on proven and relevant principles from the New York Stock Exchange, Chicago Mercantile Exchange and the London Metals exchange.
 
Leading shippers, carriers and freight forwarders designed NYSHEX to favor all groups equally and be impartially governed. NYSHEX is compliant with all U.S. regulations as well as the Federal Maritime Commission’s contract filing requirements. In addition, NYSHEX facilitates the freight financing and settlement through select first class banks. NYSHEX also supports the technology and maintains the standard form contracts used by the industry. Benefits include:
  • Shippers can receive fixed rates, enforceable contracts, accurate invoices and a significantly more reliable supply chain.
  • Forwarders create value for customers with a combination of products and services that best meet their supply chain needs.
  • Carriers now have 99 percent certainty in future cargo flows, enabling better vessel planning and uptake management, more dynamic pricing, and improved working capital.
 
“We are honored to have backing from such strategic investors as we work collaboratively to solve a major challenge facing the global container shipping industry,” says NYSHEX CEO Gordon Downes.
 
“As a leading global capital markets participant and active investor in the exchange space, we are pleased to partner with NYSHEX and support their efforts to innovate in the freight market," said Rana Yared, Managing Director in Goldman Sachs’ Principal Strategic Investments group.
 
As the world’s leading digital industrial company, GE is already very familiar with the global container shipping industry, being both a major customer and supplier. According to Mark Chadwick, Executive Sourcing lead at GE, “We are excited to be working with NYSHEX, and expect the exchange will create opportunity for shippers to improve supply chain planning and reliability.  Carriers will improve vessel utilization and network planning which will deliver efficiencies desperately needed in today’s challenging market environment.”

Blumberg Capital brings more than 25 years experience building high growth companies in financial services and enterprise technology. “NYSHEX is the unique combination of a veteran team, innovative technology and precise market timing,” said Matt Bornstein, principal, Blumberg Capital.  “We believe NYSHEX will create new ways of doing business and generate massive value for the $380 billion container shipping market.”
 
David Wolfson, a founding partner at Tectonic Capital adds, "One of the team’s strengths is their deeply held belief in working collaboratively with carriers, shippers and forwarders. The point here is counter to the traditional tech “disruptor”, rather NYSHEX was created by shipping people who are trying to do something good for their industry. NYSHEX will bring updated technology and digital to an industry that desperately needs stability – in these cases it's better to be collaborative than disruptive."
“Five of the top ten global ocean carriers are actively engaged on NYSHEX; and leading shippers and forwarders are joining daily. By mid-year we will be fully operational within the Transpacific trade and by end of year we intend to be working collaboratively with our members to expand into the Asia-Europe trade,” says Downes.