Japan’s Ocean Network Express (ONE) has become the latest carrier to sign up to the online booking platform, the New York Shipping Exchange (NYSHEX). The news means now more than 60% of all global liner capacity is on the Gordon Downes-led platform.
“NYSHEX enables us to offer our customers an additional platform to contract with us, whereby the agreed terms are mutually enforceable. The guaranteed equipment, space and price that we offer through NYSHEX will help our customers to plan their supply chain and to lock in their transport costs up front. Having our customer’s commitment to show up with their cargo as contracted, allows us to optimise our network and more accurately plan our vessels, which in turn provides more cost effective and reliable services,” said Sundeep Sibal, a senior vice president at ONE.
ONE will initially begin posting selective offers for the transpacific eastbound trade on the exchange from mid-December 2019 for January sailings.
“We are thrilled to welcome ONE as a carrier member of the exchange. The ONE approach to container shipping today is refreshing and relevant, we look forward to the continued collaboration and innovation,” said Downes, the CEO of NYSHEX.
Digital contracts made through NYSHEX have achieved a fulfillment rate of 98.4%.
From early 2020 the NYSHEX system will support more customisable terms that form part of the digital and enforceable contracts. For example, where the shipper and carrier agree, contracts will be able to cater for multiple origins and destinations, as well as longer validities.
An unfortunate decision for ONE. I wonder what happens to NYSHEX contracts if the company fails to secure its next round of funding. Is this method of contracting sustainable?