Four Leading Shipper Members on Four Important Things Every Shipper Should Know About NYSHEX
Date: 27 April 2018
As a proverbial new kid on the “dock” it can be challenging to know exactly how to share who and what you are in an industry littered with globally recognized brands and many new tech start-ups.
One of the best things about operating a membership driven organization is that the members themselves are the one’s who have the say in the future of that organization. They have a tremendous impact on the processes, future development, governance – and they also happen to be the authoritative voice for an entire industry seeking to understand “how” and “why” NYSHEX could work for them.
So, here are the top things four of our members want you to know about NYSHEX:
- The industry has embraced the exchange. At TPM 2018, we won the first ever JOC Innovation Jam for being the best innovative solution to solve shipper pain points. We also heard multiple industry leaders across several different panels publicly endorse the exchange. But, could any endorsement beat this one that Michael Bauer, International Transportation and Customs Manager at Moen offered, “NYSHEX is a very innovative, but simple concept. I would recommend that any shipper seeking true visibility should take a long look at how NYSHEX could work for them.” It can work for anyone, because…
- NYSHEX is a not a one-size fits all, rigid solution. Every shipper’s supply chain strategy is personal to that respective shipper and what our members have discovered is that NYSHEX is flexible and can serve a multitude of different strategic options. “I was incredibly reluctant to get on board with NYSHEX at first, but when I started looking at NYSHEX as a tool to complement to my existing strategies and not as a replacement I found real solutions for our supply chain,” said April Zobel, Logistics and Export Manager for Lansing Trade Group. What our members have learned is that more than the obvious use cases, NYSHEX has hidden value which can be customized to match their specific needs.
- None of our members have ever been heard saying, to digitally contract on NYSHEX you’ll be paying a premium. What members have learned is that they are paying for a guaranteed service at fair market value. Take the example of Tin Box, a Transpacific Importer providing product to retail leaders like WalMart and Target. Michael Siegel, Vice President of Imports, has been able to save $300-$400 per container compared to their service contract rate – and now Siegel estimates Tin Box will move 11% of their ocean freight on a NYSHEX Forward Contract this year.
- Last, it seems like many shippers raise a concern about the risk of liability should their cargo not be able to be delivered to the carrier as contracted. The numbers don’t lie, over 99.8% of all NYSHEX contracted volumes have sailed as contracted. This means that only 42 containers have not been fulfilled as contracted out of thousands. And, only 14 of those were caused by a shipper’s inability to deliver. When it comes down to it, doesn’t the very slim chance of not fulfilling a NYSHEX contract outweigh the full impact of rollings or blanked sailings? According to Jon Miller, Director Export Division at Northwest Grains, “It’s likely that everyone in the shipping industry would say that they have been impacted by a canceled booking, no containers, blanked sailing, or the surprise surcharge. NYSHEX practically eliminates those impacts and others.”
