The New York Shipping Exchange (NYSHEX), a digital platform for vessel contracting, reports that it has integrated new capabilities for shippers and carriers to utilise the NYSHEX framework and technology to monitor and enforce ocean contracts signed outside of the Exchange.
Some 90,000 TEU of bookings agreed via the NYSHEX system have secured a better than 98% contract fulfilment rate, which the company cites as evidence of how increased accountability in the contracting process can lead to better reliability in services.
Unlike liquidated damages clauses in traditional contracts, the NYSHEX system creates two-way performance commitments which are fully enforceable and subject to a 100% payout guarantee. The latest addition to the system enables shippers to extend those features of NYSHEX contracts to their own contracts, and pay the carrier directly according to their credit terms.
Shippers and carriers can specify their own mutual performance incentives within their own contract boiler plate and appoint NYSHEX to independently monitor the contract. This will provide access to near-real-time visibility into mutual contract compliance and allows for impartial resolution of issues in accordance with the NYSHEX Member Handbook, the company says.
“Secure ocean contracts are a big win for both shippers and carriers. Shippers stand to improve supply chain reliability and reduce unbudgeted freight costs,” said Gordon Downes, CEO of NYSHEX.
“With the confidence from knowing the shippers’ cargo flows are committed, carriers provide a better customer experience and avoid lost revenue from unfulfilled contracts. In addition, the NYSHEX guarantee helps to strengthen shipper–carrier business relationships by ensuring exceptions and disputes are resolved fairly and efficiently.”
