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May 28 2018

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6 The Journal of Commerce | May 28 2018 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, Executive Editor, The Journal of Commerce and Mark Szakonyi 202 872 1234, Managing Editor: Barbara Wyker 908 777 3217, Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202 872 1228, Bill Mongelluzzo West Coast 562 428 5999, Hugh Morley Northeast, Mexico 646 679 3475, Eric Johnson Technology 213 444 9326, Greg Knowler Europe Editor, Maritime & Trade, IHS Markit +44 7976798770, Turloch Mooney Global Ports, Maritime & Trade, IHS Markit +852 9011 9109, Associate Editor: Ari Ashe Southeast Ports, Intermodal Rail 202 548 7895, Web Editor: Joseph Lazzaro 917 309 0148, Data Analyst: Dustin Braden 646 679 3450, Senior Content Editor: Alessandra Gregory Barrett, 860 248 5238 Senior Designer: Sue Abt, 862 371 3534, Designer: Bryan Boyd, 908 910 7849, Publisher: Tony Stein, 770 295 8809, Sales: Cindy Cronin, Strategic Account Manager Southeast, Gulf, Canada sales, 954 551 8305 Zachary Gorman, Account Executive Northeast, Illinois sales 646 679 3466 Jean Gibbons, Senior Sales Executive West Coast, Midwest sales, 706 469 7160 Ria Van den Bogaert, Sales Representative Europe, Middle East sales, +32 2 569 8905 Alex Remstein, Associate Sales Specialist Reprints/Classifieds/Copyrights, 646 679 3418 For Magazine Subscription Customer Service: 450 West 33rd St., 5th Floor, New York, N.Y. 10001 973 776 8660 • 800 952 3839 Managing Director, Media and Events, Maritime & Trade, IHS Markit, Rhiannon James Senior Director, Content, Maritime & Trade, IHS Markit, Peter Tirschwell Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Marketing Programs Manager, JOC, Jesse Case ©2018 The Journal of Commerce — All Rights Reserved For more information, visit our website, 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. 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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