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New York Shipping Exchange

Transportation · New York City, United States · Founded 2014

New York Shipping Exchange (NYSHEX) operates as a digital infrastructure and software provider aimed at resolving contractual inefficiencies within the global container shipping industry. Founded in 2014 by Gordon Downes, Andrew Sisto, and Mark Michaels, the company was established to address the significant economic waste, estimated at $23 billion annually, caused by poor contract fulfillment and misaligned incentives between shippers and carriers. Gordon Downes, the CEO, brought extensive industry experience to the venture, having spent 12 years at carrier Maersk and 3 years with shipper SABMiller, providing him with a well-rounded perspective on the market's challenges. The company's primary clients include beneficial cargo owners (BCOs), non-vessel operating common carriers (NVOCCs), and ocean carriers. NYSHEX's business model is centered on its digital platform that facilitates two-way commitment contracts, a mechanism that introduces mutual accountability through penalties for non-performance by either the shipper or the carrier. This structure fosters greater supply chain reliability, which has been reported to reach over 99% contract compliance. Revenue is generated through transaction and membership fees from both shippers and carriers who utilize the platform. The company also offers a subscription-based Software-as-a-Service (SaaS) product for larger enterprise accounts to manage allocations and contracts. NYSHEX's core offering is a shared digital platform that provides a single source of truth for all parties involved in a shipping contract. It integrates data from shippers and carriers to offer proactive performance management, including real-time alerts when shipments deviate from the plan. This enables users to manage allocations, bookings, and container milestones through automated workflows. In a significant strategic move, NYSHEX partnered with Intercontinental Exchange (ICE) in late 2024 to launch a new set of container freight indices in 2025. This initiative aims to increase market transparency and provide tools for managing volatility through index-linked contracts. The company has secured substantial financial backing, raising a total of $69 million over six funding rounds, with its Series C in November 2024 led by Collate Capital and including investors like Goldman Sachs Alternatives and NewRoad Capital. Keywords: ocean freight contracting, digital shipping, supply chain reliability, two-way commitment contracts, freight contract performance, maritime logistics, container shipping platform, freight technology, NVOCC, beneficial cargo owner, ocean carrier solutions, freight rate indices, digital freight marketplace, proactive performance management, shipping contract compliance, trade technology, logistics software, supply chain visibility, freight analytics, marine transport technology