Hapag-Lloyd and CMA CGM invest in freight guarantee operation


New York Shipping Exchange has raised $13m from its latest fundraising operation following investments from carriers Hapag-Lloyd and CMA CGM, as well as GE Ventures and Goldman Sachs.

Hapag-Lloyd and CMA CGM are already working with NYSHEX, along with MOL and OOCL, as NYSHEX continues to bring on additional carriers to pursue future funding to build a global exchange.

NYSHEX provides a standardised “over-the-counter” exchange for entering enforceable freight contracts, based on principles from the New York Stock Exchange, Chicago Mercantile Exchange, and the London Metals exchange.

NYSHEX chief executive Gordon Downes said: “It is best practice for participants of an exchange to also be investors in the exchange, and we are delighted to have CMA CGM and Hapag-Lloyd as shareholders, along with GE Ventures, Goldman Sachs and our other strategic investors.

“This demonstrates the industry’s confidence in the role that NYSHEX is playing in global shipping.”

CMA CGM chairman Rodolphe Saadé said the French line welcomed the digital innovation that NYSHEX had brought to container shipping.

He said: “Digitalisation is essential to offering our customers new and differentiated products. This partnership is one more step in CMA CGM’s digital transformation.”

Hapag-Lloyd chief commercial officer Thorsten Haeser said the Hamburg-based carrier had invested because it believed NYSHEX could help solve issues of unreliability and unpredictability that affected the container shipping industry by ensuring commitments were met by both sides.

The NYSHEX model uses enforceable financial guarantees that mean cargo owners pay damages if they book cargoes that they do not deliver to the carrier. Carriers will also pay damages to the shipper if they roll over cargo or blank sailings.