The New York Shipping Exchange (NYSHEX), a digital forward freight contracting platform for container shipping, reports that it has raised $13.5 million in additional growth financing to support further expansion of the business.
NYSHEX says that it intends to use the proceeds of the funding round, led by NewRoad Capital Partners and including a number of existing investors, to move into new shipper segments and grow its geographic footprint, starting with Europe in 2020.
The company’s technology is used by shippers and carriers to digitally establish customised bilateral contracts, including processes to facilitate the enforcement of performance commitments on both sides. Shippers can use the platform for free, with carriers paying $5 per TEU.
Starting in 2015, the firm has had six global ocean carriers join the platform, including Maersk and CMA CGM, in addition to approximately 1,500 shipper and NVOCC members. With an average contract size approaching 1,000 TEUs, NYSHEX says that it consistently provides better than 99% compliance to contract via its platform, versus the industry average of 67%.
“As a founding carrier, we are pleased with the positive impact and growth that NYSHEX has demonstrated,” said Peter Hildebrandt, Head of Transformation at A.P. Moller-Maersk.
“We continue to support the goal of NYSHEX of incorporating two-way commitments that are transparent, standardised, and enforceable for all parties involved. We look forward to partnering and growing with NYSHEX on new trade lanes going forward.”