Overwhelmingly, innovative shippers and carriers have voiced their dissatisfaction with the unreliable nature of the container shipping market, while expressing their excitement for a forward market with enforceable contracts. We have collaborated with top industry leaders to create a system that leverages principles of the world’s best exchanges to answer the call of the shipping industry.
The NYSHEX Forward is exclusively bought and sold on the exchange. It caters to short and medium term contracts, which makes it the ideal alternative to the short-term spot market, and a complement to long-term service contracts. Made secure and enforceable by the exchange, The NYSHEX Forward provides space and fixed rate protection that does not exist in the spot market.
NYSHEX helps you run your business effectively, providing you with relevant and accurate market information, allowing you to make informed decisions quickly and confidently. On the exchange, shippers and forwarders can filter through carrier offers that provide important details about their service, including transit times and reliability ratios as well as their fixed rate.
NYSHEX Forward contracts specify the number and type of containers to be shipped within a specific departure window from a named origin to a named destination at a fixed price. The responsibilities and legal obligations of the carrier, shipper and forwarder are clearly set out in The NYSHEX Forward, providing clarity and reducing counter-party risk. Protected space and guaranteed equipment create certainty and improved supply chain reliability for shippers and forwarders. Carriers benefit from better utilization, network planning, and working capital. And all members achieve process efficiency gains and accurate invoices.
With The NYSHEX Forward, shippers and forwarders lock in rates for a specific week up to 6 months in the future. The locked-in rate includes all mandatory charges, and is not subject to change in any way. This ends exposure to rate volatility and improves a shippers’ or forwarders’ ability to control costs and to have a forward view to their cost picture. This also enables better vessel planning, forecasting and budgeting for carriers. Furthermore, fixed prices ensure invoice accuracy and eliminate disputed charges.
84% of shippers need to ship unplanned cargo at relatively short notice that is not covered by any existing service contract. Shipping unplanned cargo on the spot market poses a significant supply chain management challenge due to rolling risks and freight cost volatility. The ability to enter forward contracts with space protection and fixed rates provides flexibility and significantly de-risks the supply chain. This allows the shipper to hold less safety stock and to reduce contingency costs such as airfreight.
NYSHEX’s role is to ensure all parties fulfill their contractual obligations and to promptly administer payments or penalties. NYSHEX functions as the impartial 3rd party, overseeing the payment of deposits or collateral and facilitating trade finance programs. In that way, NYSHEX helps to improve working capital and eliminate unnecessary balance sheet impacts.
NYSHEX systematically tracks all shipment milestones for every contract entered on the exchange. By comparing integrated EDI data feeds with the specific contractual responsibilities and dates, NYSHEX monitors forward contracts from acceptance to fulfillment. If there is a breakdown, NYSHEX determines exactly who failed to fulfill what contractual responsibility. NYSHEX then automatically administers the payment of penalties as agreed-to in the contract.
Global supply chains are complex, and interruptions in production, or delays in shipping are a reality. In the event that a shipper or forwarder can no longer fulfill their contractual obligations, NYSHEX facilitates an exit process. The shipper or forwarder can republish the contract on the exchange. If another member accepts the contract, and thereby undertakes the responsibilities of the original shipper or forwarder, then no penalties will be incurred.