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May 28 2018

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6 The Journal of Commerce | May 28 2018 www.joc.com model. He said the value of shipments trans- acted via NYSHEX will increase as the industry transforms to better address volatility and uncertainty, hurtful to both carriers and shippers; embraces digitalization; and the exchange's technology and processes evolve. "How do we overcome it? We focus on ship- pers who have reliable cargo flows and who are willing to make a commitment to their carrier," Downes said. "Of course, the shippers need to have some benefit from making commitments. For example, in peak season, shippers benefit from the carriers' space and equipment guar- antees. In slack season, shippers benefit from competitive prices, as carriers really value the commitment they receive from the shippers on NYSHEX, and they price accordingly." Downes likened NYSHEX's path to that of the adoption of cameras within smartphones. When introduced, many questioned why they would need it because the pixilation didn't com- pare well with point-and-shoot cameras. But as technology improved not just in the camera smartphones but also in the ecosystem where digital photos could be used, such as blogs and social media, the draw of cameras in smart- phones increased. It's now commonplace. NYSHEX isn't just waiting for the industry to evolve. In contrast with the "sticks," in the form of a penalty fee for carriers and shippers if they don't hold up their end of the contract, NYSHEX is exploring "carrots," or positive incentives, such as reducing or eliminating the penalties for BCOs that demonstrate reliabil- ity. "Our business model and technology are constantly improving and evolving," Downes said. "We're confident that soon NYSHEX will become relevant to many more shippers." JOC Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, chris.brooks@ihsmarkit.com Executive Editor, The Journal of Commerce and JOC.com: Mark Szakonyi 202 872 1234, mark.szakonyi@ihsmarkit.com Managing Editor: Barbara Wyker 908 777 3217, barbara.wyker@ihsmarkit.com Senior Editors: William B. 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The Journal of Commerce Continued from page 4 Letter From the Editor ¤¥¦§ JOC Top ¦¥¥ Importers and Exporters Congestion ripples through Asian ports Port congestion at some Asian ports is delaying cargo and has forced at least one carrier to launch a feeder service to transship at less-a©ected ports. Carriers said Bangkok, Chittagong, Kolkata, and Shanghai are among the hardest-hit ports, with berthing delays of about a week. Although part of the problem results from growing container volumes, carriers also point to ine©icient op- erations and inadequate infrastructure ex- acerbated by bad weather, particularly in eastern China. "The impact is huge," said Gavin To, vice president at Taiwan's TS The port of Bangkok is among the worst a•ected ports, carriers say. Shutterstock.com Lines. He said the carrier incurs extra bun- ker and hire charges and the delays create di©iculties recovering sailing sched- ules. "Congestion is a big issue at some Asian ports. Bangkok and Chittagong have some of the worst delays," said Danny Ho©mann, managing director of intra-Asia carrier Gold Star Line. An eval- uation of live ship data seems to support this, particularly at Chittagong, where seven of the 15 container ships recently at anchor waiting to berth at the port were anchored for four days or more. Five had been waiting for three days or more, and three were waiting for two days or more, according AISLive, a sister product of The Journal of Commerce within IHS Markit. Spotlight

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