The New York Shipping Exchange (NYSHEX) has completed its series A round of funding with big name containerlines signing up. NYSHEX is promoting its digital forward freight contract for container shipping, a world first.
Hapag-Lloyd and CMA CGM joined the investment round, along with additional investments from GE Ventures and Goldman Sachs, bringing in a total of $13m.
Hapag-Lloyd, CMA CGM, MOL and OOCL are currently working with NYSHEX with additional carriers likely to join soon.
NYSHEX provides the global shipping industry with a simplified and standardised over-the-counter exchange for entering enforceable freight contracts.
Buyers of container shipping services: shippers and NVOCCs, use NYSHEX at no cost. Initially, they must be pre-accredited with NYSHEX to get started. Ocean carriers pay a transaction fee of $5 per teu.
“NYSHEX is addressing some of the most fundamental problems facing the ocean shipping industry today – uncertainty and inefficiency,” said Mark Chadwick, executive sourcing leader at GE.
“Hapag-Lloyd invested because we believe NYSHEX can help solve the challenge of unreliability and unpredictability that affects everyone in the container shipping industry, by ensuring commitments are met by both sides,” added Thorsten Haeser, chief commercial officer of Hapag-Lloyd.