Danish ocean carrier Maersk Line will pilot the guaranteed forward contract platform on its transpacific westbound agricultural trade starting in March.
The New York Shipping Exchange (NYSHEX) said Tuesday that Maersk Line, the biggest liner carrier in the world, has joined as an investor.
NYSHEX is a digital platform that allows shippers and non-vessel-operating common carriers (NVOs) to consummate forward contracts with shipping lines. The contracts are legally binding and guaranteed on both sides, with penalty clauses attached to inhibit overbooking by carriers and no-show cargo by shippers and intermediaries.
Adding Maersk to the platform as an investor means the NYSHEX has brought in six of the biggest carriers, representing more than half of global capacity, in fewer than nine months. Maersk joins Hapag-Lloyd, CMA CGM, MOL, OOCL and COSCO as carrier members of the exchange.
“We are very pleased to have Maersk Line join NYSHEX as a founding member,” said Gordon Downes, chief executive officer of NYSHEX. “Maersk Line has been a pioneer of many digital initiatives, and we are delighted to be working together in digitizing the freight contracting process, as well as improving shipment reliability. With each additional carrier that joins the exchange, our members benefit from more offerings and services to choose from.”
Maersk’s investment in the platform also means the NYSHEX has representation from all three major global carrier alliances: the 2M Alliance, the Ocean Alliance and “THE” Alliance.
“The time is now to create a more collaborative environment for all participants in the ocean transportation industry,” said Omar Shamsie, president of Maersk Line North America. “That is why we’re excited to begin piloting NYSHEX’s processes and technology in North America starting March 2018 to increase visibility and certainty for shippers, which we hope will result in a better end-to-end experience for our customers.”
Maersk will offer a product through the NYSHEX for customers that want to agree and control their costs upfront, and receive a commitment from the carrier for the transport of their shipment. The March pilot will begin on its transpacific export agriculture market (exports from the United States to Asia).
Buyers of container shipping services (shippers and NVOs) use the NYSHEX at no cost, while ocean carriers pay a transaction fee of $5 per TEU.
Terms of Maersk’s investment in NYSHEX were not disclosed.
Maersk joins NYSHEX platform
