New NYSHEX Enhancement Now Guarantees Direct Service Contracts
By Kimberly Cockrell
Direct carrier-shipper global ocean contracts, based on two-way enforcement commitments, are digitally monitored for performance and exceptions resolved
NEW YORK, NEW YORK – February 12, 2020, 7:30 AM EST– - The New York Shipping Exchange (NYSHEX), whose vision is to increase ocean reliability through more effective digital contracting, announces today the launch of an enhancement allowing shippers and carriers to utilize the NYSHEX framework and technology to secure, monitor and enforce ocean contracts signed outside of the Exchange.
Having secured over 90k TEUs with 98%+ contract fulfilment, NYSHEX has demonstrated that when there is accountability in contracting, reliability increases. Unlike liquidated damages clauses in contracts today, NYSHEX enables two-way performance commitments which are fully enforceable and backed by a 100% payout guarantee. The latest enhancement enables shippers to extend the guaranteed reliability of NYSHEX contracts to their own contracts and pay the carrier directly according to their credit terms.
Shippers and carriers can set the mutual performance incentives that work for their businesses within their own contract boiler plate and appoint NYSHEX to independently monitor the contract. The key advantages for shippers are:
- Clear and enforceable performance incentives and terms for the alignment of expectations.
- Access to near-real-time visibility into mutual contract compliance to keep the contract on track.
- Impartial resolution of issues in accordance with the Member Handbook which provides a comprehensive outline of exactly how each exception will be processed.
This new enhancement, as with all NYSHEX features represent no cost for BCOs and NVOCCs.
“Secure ocean contracts are a big win for both shippers and carriers. Shippers stand to improve supply chain reliability and reduce unbudgeted freight costs. With the confidence from knowing the shippers’ cargo flows are committed, carriers provide a better customer experience and avoid lost revenue from unfulfilled contracts. In addition, the NYSHEX guarantee helps to strengthen shipper – carrier business relationships by ensuring exceptions and disputes are resolved fairly and efficiently,” added Gordon Downes, CEO of NYSHEX.
“The many months of development of the innovative contract performance module has met with early success on the Transpacific Westbound trade, and Dorel is pleased to be the first BCO to partner with NYSHEX and HMM on the Transpacific Eastbound.“ - Michael A. Grier, Senior Vice President Operations at Dorel Industries Inc.
“Since joining NYSHEX in 2018, we have seen great value in terms of enhanced relationships with our customers through the ability to better plan based on committed capacity and equipment demand. Our customers are returning to do more, and larger contracts with us through NYSHEX, as they seek to ensure reliability in their overall supply chains. We see this new NYSHEX enhancement as a good way to improve this even further.” - Peter Hildebrandt, Vice President and Senior Transformation Partner at Maersk
To learn more about this new innovation for direct service contracts, visit https://www.nyshex.com/product and request your demo.