Maersk Line has supported shippers with a digital alternative to booking on the spot market by becoming a New York Shipping Exchange (NYSHEX) investor.
By investing in the platform, the world's largest container shipping company has now joined many other carriers that are taking advantage of what NYSHEX has stated is a $23 billion economic opportunity that exists for the shipping industry each year.
Along with Hapag Lloyd, CMA CGM, MOL, OOCL, and COSCO, Maersk Line will begin posting digital contract offers for the Transpacific Westbound trade on the exchange as early as March of this year.
NYSHEX is addressing the historic inefficiencies in ocean freight contracting with two innovations; a new standard forward freight contract and a new way to trade ocean freight digitally.
The exchange is providing a forward market that gives shippers more guarantees that bookings will be accepted and their cargo will be loaded onto the ship.
This will also prevent disruption for carriers such as Maersk as the exchange will provide more assurance that cargo will reach the vessels on the day of the booking.
In an interview with CNBC (below), Gordon Downes, CEO of NYSHEX, said: “One of the key value propositions of the exchange is that when you make a contract on the exchange it’s secured, so both parties have an incentive to fulfil that contract.
“Contracts on the exchange have about a 99.6% uptake rate, or fulfilment rate, which might not sound that great but if you compare it to the spot market where sometimes the fulfilment rate can be as low as 48%.”
In an announcement about Maersk Line joining the exchange, NYSHEX stated: “We are pleased to add Maersk Line as an investor in NYSHEX. With this, Maersk Line joins both CMA CGM and Hapag-Lloyd as carrier founding members.
“This marks a significant milestone for us as we now have added six of the top global ocean carriers as members in the last nine months.
“These carrier members represent a combined 52% of global capacity (source: Alphaliner) and all three of the alliances: 2M, Ocean Alliance and THE Alliance.
“Maersk Line has been one of the leaders in digitization of shipping processes for many years.
“We will now be working together in digitizing the freight contracting process, as well as improving shipment reliability.
“Maersk Line, as with our other carrier members, will offer a product for customers who want to agree and control their costs upfront while receiving a commitment that their shipment will sail as contracted.
“With each additional carrier that joins the exchange, our members benefit from more offerings and services to choose from.”