The New York Shipping Exchange (NYSHEX) said it has added Maersk Line as an investor, bringing the number of major carriers involved in the online marketplace to six.
The world’s largest carrier joins CMA CGM, MOL, OOCL, Cosco and Hapag-Lloyd on the list of members of the exchange, which uses a contract system to try to reduce the uncertainty for shippers and carriers in the process of making and fulfilling global cargo bookings.
Maersk will begin using the exchange for its trans-Pacific export agriculture market, exporting goods from the United States to Asia, in March 2018, NYSHEX said, in a statement. The exchange did not say how much Maersk would invest. In August, the exchange said it had raised $13 million in venture capital, including $4.5 million from Hapag-Lloyd, CMA CGM, and other investors.
“With each additional carrier that joins the exchange, our members benefit from more offerings and services to choose from,” said Gordon Downes, CEO of NYSHEX.
Peter Hildebrandt, head of revenue management for Maersk Line, who will sit on the NYSHEX Member Council, said the investment “is another example of our commitment to be a key player in the industry’s digital transformation.”
NYSHEX seeks to solve the much-discussed, longstanding uncertainty in the supply chain created by shippers that often fail to deliver the amount of cargo that they have committed to send, and carriers that often do not ship cargo when they say they will, and instead leave it on the dock.
Shippers can book cargo space through the portal, which also monitors whether the booking is fulfilled by shipper and carrier. Shippers and carriers sign a contract, and if either party fails to fulfill its obligation, it forfeits between 30 to 40 percent of the agreed shipping cost, depending on the route.
Carriers pay a $5 per TEU transaction fee and shippers and non-vessel-operating common carriers use NYSHEX at no cost, although they must be pre-accredited with NYSHEX to get started.
“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 adding that it will “increase visibility and certainty for shippers which we hope will result in a better end-to-end experience for our customers.”