Time is always of the essence for The Tin Box Company. The licensed and seasonal products they craft from tin are hot-sellers with a short shelf life. Any delays in getting the goods to retailers like Target, Walmart, and Michaels bring heavy penalties.
Regardless of their careful planning and the “cushions” they build into their supply chain, Tin Box risks delays when their containers get bumped off ships. When this happens, Tin Box is reminded that even the world’s largest tin manufacturer with its less than 250 containers a year can’t compete for space with the biggest shippers.
Guaranteed vessel space drew Tin Box to check out NYSHEX. The fact that they can enter into a binding contract with carriers that all parties will honor or pay a penalty gets them space on the vessel. Tin Box began supplementing its annual contracts with NYSHEX contracts to ensure they got the same service and commitment a much larger shipper would receive.
In a very short period of time, NYSHEX became part of their strategy. With less risk of being bumped, the company is considering reducing the cushion they’ve built into their lead time. That will enable Tin Box to get trending products onto shelves quicker—for better profits and happier customers.
Tin Box has been able to save $300-$400 per container. If this keeps up, Siegel estimates they’ll save close to 11% on ocean freight this year. The ability to lock in rates and guarantee vessel space on NYSHEX led Tin Box to allocate half of next year’s containers to NYSHEX contracts.
Siegel said, “Overall, my experience so far has been great. I will continue to use NYSHEX for my container shipping needs.”
“Binding contracts were the biggest selling point of NYSHEX to me. The fact that they are guaranteeing a certain amount of space during a certain amount of time. That’s a win-win-win.”- Michael Siegel, Vice President of Imports