Shipping firms Hapag-Lloyd and CMA CGM joined GE Ventures and Goldman Sachs to add $4.5m to the freight contract platform's series A round, which now stands at $13m.
US-based freight contract platform New York Shipping Exchange (NYSHEX) closed a series A round featuring power and automation equipment manufacturer General Electric and shipping firms Hapag-Lloyd and CMA CGM at $13m yesterday.
General Electric’s GE Ventures subsidiary and investment banking firm Goldman Sachs’ Principle Strategic Investments co-led the round’s $8.5m first tranche in March this year, investing together with participants including Blumberg Capital and Tectonic Capital.
Hapag-Lloyd and CMA CGM, both of which use NYSHEX’s platform, added the extra money along with GE Ventures and Goldman Sachs, which upped their investments to help the company close the round.
NYSHEX has built an over-the-counter online exchange for enforceable freight shipping contracts that is based on existing trading exchanges such as the New York Stock Exchange and London Metals Exchange.
Shippers receive fixed rates, enforceable contracts and accurate invoices through the platform while container carriers can access dynamic pricing and secure more reliable cargo flows. The platform offers a different model to the long-term or spot market contracts traditionally used.
Rodolphe Saadé, chief executive of CMA CGM, said: “CMA CGM welcomes the digital innovation that NYSHEX is bringing to the container shipping industry. Digitalisation is essential to offering our customers new and differentiated products.
“This partnership is one more step in CMA CGM’s digital transformation, aiming to continuously create added value for its customers.”
