The New York Shipping Exchange has modified its operating strategy, responding to a significant shift in how customers contract for container shipments, reports gcaptain.
Drafting contracts
Rather than focusing largely on drafting contracts, the over-the-counter exchange now increasingly is working to improve contract performance, hence settlement, said Gordon Downes, NYSHEX CEO.
“We are much more focused on the settlement of a contract rather than (its) origination,” he said.
Fee for TEU
NYSHEX shippers, for the first time, now pay a modest $5 fee for each TEU (twenty-foot container) covered by an exchange contract. Last year NYSHEX arranged transport for about 3.2 million boxes.
Exchange member carriers – which include CMA CGM, Hapag Lloyd, Maersk, and Mediterranean Shipping Co. – continue to pay a $1.5 million annual fee for NYSHEX contract coverage.
For shippers, vessel scheduling snafus tied to “black swan” events are a major headache. Lately, that is due to vessels sailing longer distances around the Cape of Good Hope, rather than using the Suez Canal shortcut, to avoid attacks by Houthi rebels in the nearby Red Sea.
Conversely, carriers increasingly complain about shippers failing to meet MQC or Minimum Quantity Commitment (the minimum number of containers a shipper provides to transport, via a specific carrier, during a specific period, at a defined service level), also known as its allocation.
NYSHEX’s operational shift acknowledges that it, like all competing shipping exchanges, will be subject, after June 2025, to increased oversight. The Ocean Shipping Reform Act of 2022 mandates that the Federal Maritime Commission provide additional NYSHEX scrutiny.
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Source : Gcaptain
