The New York Shipping Exchange (NYSHEX), a platform for forward ocean contracts between shippers and carriers, has received clearance from the U.S. Federal Maritime Commission (FMC) to have two parties from each side represented on its nine-member board.
The New York Shipping Exchange (NYSHEX) on Friday received approval from the U.S. Federal Maritime Commission (FMC) for its contract structure and governance model, the company said.
NYSHEX is a platform that allows forward ocean contracts to be consummated with binding clauses for both parties. The technological solutions is designed primarily to prevent shippers from no-showing on container bookings and carriers from rolling cargo due to vessel overbooking.
The FMC approvals cover NYSHEX’s plan to structure its governing board with four parties: two representing ocean carrier interests and two representing shipper interests. Signatories to the agreement include the liner carriers Hapag Lloyd, CMA-CGM, COSCO and MOL, though representatives from only two of those carriers (or others who might join in the future) would serve on the nine-member board at any given time.
The governance model is intended, NYSHEX said, to agree on fair standards for digital freight contracting for all our members.
In terms of the parameters of contracts agreed on the platform, the NYSHEX agreement approved by the FMC specifically prohibit any discussion of rates, surcharges or accessorials by carriers.
NYSHEX gets FMC approval on governance, contracts
