When something new is introduced into an industry that has been around since…forever, there is sure to be some confusion around exactly what this new thing is. That’s understandable and completely normal. Let us take a minute to set the record straight about NYSHEX, who we are, and what we’re doing.
In this article, we’ll break down the four common misconceptions carrier reps, in particular, have about NYSHEX:
Other solutions provide no commitment that your contract will be fulfilled. With a NYSHEX contract, there is a 99% fulfillment rate leading to both the shipper and the carrier being satisfied. The terms, including how long the contract is valid for, are set by the shipper and carrier during the negotiation phase, resulting in clarity of terms for both parties. There are penalties to the defaulting party for not meeting these terms. Therefore, both the shipper and carrier benefit for seeing the contract through.
When you sign a NYSHEX contract, you can feel certain that business is committed.
NYSHEX, simply put, is a means used to facilitate terms of your contract. We have created a contracting solution that is compliant with the FMC. With a NYSHEX contract, you are creating terms that both parties (shippers and carriers) agreed upon and are bound to by the FMC. NYSHEX is not an NVOCC, and we do not own space with a carrier. We do, however, work with many NVOCCs.
NYSHEX is a neutral party. We have a member council which consists of carriers, shippers, and NVOCCs. This member council creates the rules and make the proposals to change the rules. All rule changes must be agreed upon by the members of the council.
Facilitating your contracts through a neutral 3rd party can have many benefits. For example, NYSHEX’s member council will review all exceptions when disputed and decide on the outcome. By having a neutral 3rd party resolve disputes, carriers and shippers can settle issues quickly and safeguard their relationships.
NYSHEX is a sales tool for carrier sales, not a replacement for carrier’s salespeople. Carrier salespeople are a vital part of the supply chain and maintain important relationships with their customers. They are necessary to manage additional business and value-added services that NYSHEX does not offer.
A NYSHEX two-way committed contract will allow a salesperson to focus on the fact that there is now certainty around their business, which allows them to focus on priorities of greater value for their companies.
We hope this clears up any misconceptions you may have had about NYSHEX. As a neutral software provider for shippers and carriers, we are here to provide certainty in a volatile industry.