Page 10: of Maritime Logistics Professional Magazine (Nov/Dec 2017)

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INSIGHTS

FMC Approves Filings by the New

York Shipping Exchange (NYSHEX) n December 2017, the U.S. Federal Maritime Commis- Commissioners and staff as it was building out its program. I sion voted to allow the New York Shipping Exchange like the idea and concept of the NYSHEX. The system places

I(NYSHEX) to move forward with two agreements it fled responsibility on both ends – with the ocean carrier and the ship- pursuant to the Shipping Act. per (i.e., benefcial cargo owner (BCO)). In January of 2017,

The frst fling is based on an agreement by ocean com- NYSHEX completed its pilot program for digital bookings. mon carriers to participate on the NYSHEX Exchange Board. NYSHEX shipped over 500 TEU’s under a pilot and beta test-

This authorizes the parties to develop, manage, market and ing program with a select group of ocean carriers and shippers.

operate a digital freight contracting process, called the New

York Shipping Exchange, through participation on the Board • How it Works of NYSHEX. Parties to the agreement are CMA CGM SA; The way the exchange works is there would be a fxed “all-

Hapag Lloyd AG; Mitsui O.S.K. Lines, Ltd.; COSCO Ship- inclusive” rate for a guaranteed number of slots and contain- ping Lines Co., Ltd; and COSCO Shipping Co., Ltd. ers. The shipper would collect a penalty if the carrier does not

The other fling is an agreement by ocean common carriers meet its contractual obligation. A penalty also exists for the authorizing the parties to agree on language and terms to be shipper if the shipper cancels the booking. Each booking is its included in the NYSHEX Forward Contract, which shall be own service contract agreement that would automatically be used by a carrier party when contracting with a shipper via the fled with the Federal Maritime Commission.

NYSHEX Exchange. Ocean carriers would pay a $5 per twenty-foot-equivalent

I have been following NYSHEX for several years. NYSHEX (TEU) transaction fee. The shippers and non-vessel-operat- offcials have visited the Commission from time to time to brief ing common carriers (NVOCC) would use NYSHEX free of © AdobeStock CREDIT Hedgehog 10 Maritime Logistics Professional November/December 2017 | |