With the upcoming November-December usual slack season only a couple of weeks away and the start of 2019, when U.S.-China tariffs go into effect and Chinese New Year (CNY) follows shortly after, U.S. shippers are faced with a new level of uncertainty and concern around their container supply chains.

The challenges are adding up as container import volume projections remain strong.  For import shippers, the impact of these events and how ocean carrier partners will manage capacity, services and pricing is a major focal point for import supply chains.  Import shipments that need to be placed on a vessel last minute may be out of luck as January 1st and pre-CNY gets closer.  It’s now time to prepare before factories close and workers take off to enjoy the CNY holiday on February 5th and tariffs go into effect.

November-December, normally slack season, is now becoming a key planning time for the secure and reliable movement of import shipments.

Business challenge

How do shippers address the uncertainty of the pre-CNY shipping period to ensure the integrity of their supply chains?  Reliability is more important than ever during these challenging times when negotiated service contracts don’t hold, spot pricing is at its highest level and cargo rollings are common place.  Freight left on terminals in China can mean empty shelves, lost sales and angry customers.  All this adds up to higher and higher costs for shippers.

Solution

The uncertainty of last-minute container freight planning is similar to riding to the top of a black diamond ski run and heading down the slope without the proper training.  Container shipping reliability during challenging times, especially, is needed to bring stability to supply chains. 

Over a year ago, NYSHEX (New York Shipping Exchange) was created precisely for this reason, to bring stability to the container shipping industry so shippers and carriers know what they’re getting – freight delivered as booked by the shipper and carriers providing space and equipment as promised.

This win-win-win solution from NYSHEX, a fixed price, digital ocean freight rate resource and contracting alternative that’s fully enforceable for all parties to a shipment, creates an efficient, fair solution, especially critical during periods of uncertainty such as this pre-CNY period.

With NYSHEX, enforceable contracts create a healthy relationship for both shippers and carriers that delivers predictability, enhanced planning, cost control, and improved communication.  Shippers are able to secure a Forward contract up to 6 months in advance and ocean carriers improve vessel planning and optimize their cargo mix. 

Chief commercial officer for Damco Americas, David Newton, said “This model establishes a firm agreement with the carrier who accepts the booking. It is highly unlikely that a NYSHEX box will be rolled because of the financial penalties in place. It’s far more likely that (the carrier) will roll a container where there is no binding financial commitment.”

To date, 99.8% of all contracts made on NYSHEX have been fulfilled exactly as committed.  This means shippers reduce supply chain risk and are confident their freight moves as scheduled.

“NYSHEX is a collaborative solution that works for everyone,” said Gordon Downes, CEO of NYSHEX. “It addresses and overcomes the lack of cooperation that has long characterized shipper-carrier relations. NYSHEX is an impartial third party that exists to ensure mutual commitments and obligations are met, simultaneously building trust among all the players.”

The NYSHEX shipper – carrier relationship is exhilarating, like skiing down the most challenging ski run successfully.  Shippers win by adding certainty to their supply chains, improving planning and delivering to customers as expected.