MSC digitalises shipping contract performance with NYSHEX
PRESS RELEASE 12/06/2024 MSC is pleased to announce that it has entered into an agreement with leading ...
PRESS RELEASE
Date: 19 November 2024
New York, NY —The New York Shipping Exchange (NYSHEX), a leader in digital contracting and performance management for the container shipping industry, is excited to announce the first closing of its Series C funding round, led by Collate Capital. The round attracted significant participation from all major existing investors, including Growth Equity at Goldman Sachs Alternatives, NewRoad Capital, and Blumberg Capital. Intercontinental Exchange (NYSE:ICE), one of the world’s leading exchange operators, also participated in the round, solidifying a strategic collaboration with NYSHEX aimed at introducing freight rate indices for the shipping industry.
As part of the collaboration, NYSHEX will launch a series of freight rate indices in 2025, with ICE serving as the calculation agent for these indices. ICE’s expertise in global markets will further enhance the credibility and reliability of the NYSHEX indices.
Gordon Downes, CEO and co-founder of NYSHEX, expressed his enthusiasm for the collaboration and funding round, saying, “We are delighted to have completed the first close of our Series C and to welcome ICE as a shareholder. Our collaboration with ICE and the additional capital allows us to expand upon our services. Firstly, we will launch a new set of indices based on actual cargo moving rates, which will be transparently governed by industry representatives, and will be freely available for all carriers, shippers and NVOCCs to use for their index linked contracts. Secondly, we will launch supporting technology making it much easier for carriers, shippers and NVOCCs to administer their index linked contracts, regardless of which index their contracts are linked to.”
Zach Fields, an investor with Growth Equity at Goldman Sachs Alternatives, who led NYSHEX’s Series A and invested in NYSHEX’s Series B and C said, “as we see the container shipping industry moving toward index linked contracts, there is a growing need for ways to hedge the volatility of container spot rates. As we help our clients to manage their freight risk, we fully support NYSHEX in developing more robust indices that will benefit all shippers, carriers and NVOCCs.”
Stuart Williams, COO of ICE, echoed this sentiment, emphasizing ICE’s commitment to fostering efficiency in global markets. “The container shipping industry is vital for global trade, yet it remains an inefficient and volatile market. For over two decades, ICE has worked with our customers to develop a network of liquid and interconnected markets that provide the price transparency and risk management tools needed to manage evolving supply chain and geopolitical risks. We recently launched ICE Digital Trade (IDT) to support the global shipping industry, and our partnership with NYSHEX is a further step in that direction.”
The Series C funding round and the strategic collaboration with ICE position NYSHEX for accelerated growth and greater impact within the container shipping sector. By providing tools to manage market volatility through innovative indices, NYSHEX and ICE are poised to deliver a new level of visibility and efficiency for the industry.
Mark Weaver, Managing Partner at Collate Capital, the lead investor, commended NYSHEX’s execution and strategic vision: “We are very impressed with how NYSHEX has delivered on their strategy and with the influential role they play in the container shipping industry. The forthcoming NYSHEX indices, coupled with the involvement by ICE, mark an exciting development that will serve both NYSHEX’s members and the industry at large.”
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