American Shipper

HMM to join New York Shipping Exchange

At the same time, MOL has left the carriers group.

   Hyundai Merchant Marine (HMM) will join the New York Shipping Exchange (NYSHEX), according to a filing made with the the Federal Maritime Commission that will not become effective until July 23.
   In the same filing NYSHEX revealed Japan’s MOL has left the exchange. MOL recently combined its container liner business with that of NYK and “K” Line to form Ocean Network Express or ONE.
   HMM becomes one of the carriers that are eligible to serve on the board of NYSHEX. The other NYSHEX carrier members are CMA CGM, Hapag-Lloyd, Maersk, COSCO Shipping/OOCL and Maersk.
   The current NYSHEX board members consists of four members, two representatives from the carriers of CMA CGM and Hapag-Lloyd and two representatives from the shippers Electrolux and Nestle.
    NYSHEX was created to solve the problem of shippers booking space on ships and then not showing up with cargo and carriers overbooking ships (because they anticipate a certain amount of cargo not showing up) and then having to roll cargo to subsequent voyages or other ships if more containers arrive than were forecast.
    The exchange offers a digital contracting technology that enables shippers and NVOCCs (acting as shippers) to search for ocean rates and services and enter into binding service contracts with carriers up to six months in advance
   Other shipper members of the exchange include companies such as General Electric, Restoration Hardware, Damco, Flexport and Hecny Group.