Thanks to its forward contract model, the digital booking platform offers shippers and carriers an extraordinarily high fulfillment rate over the traditional spot rate market, CEO Gordon Downes told CNBC Tuesday.
Gordon Downes, CEO of New York Shipping Exchange (NYSHEX), went on CNBC on Tuesday to share the ocean shipping contract fulfillment success rate his company’s platform offers over the traditional spot rate market.
NYSHEX offers a digital exchange on which shippers and carriers can book capacity contracts and mutually enforce those contracts to provide a higher fulfillment rate.
In addition, “If you buy a contract on NYSHEX’s exchange and for whatever reason cannot fulfill that contract, you can offer it back on the exchange – release that capacity – and get out of the contract. You can buy another contract at any time a vessel is available,” said Downes.
As a result, contracts within the exchange have a 99.6 percent fulfillment rate, while fulfillment rates on the traditional spot market are around 46 percent, said Downes.
Downes explained that such a high fulfillment rate means that shippers can better plan their supply chain and carriers can optimize their network. The exchange platform aims to eliminate multiple bookings for the same shipment and to stop no-shows that plague the supply chain.
NYSEHX recently finalized a $13 million Series A round of funding, with ocean carriers CMA CGM and Hapag-Lloyd joining in on the investment round. NYSHEX also partnered with CMA CGM in August for U.S. exports to Asia.
NYSHEX touts 99.6% fulfillment rate for ocean contracts
