20th August 2018

OW Logistics becomes first Asia CIF shipper to make the TPEB journey on NYSHEX.

Company News

OW Logistics recently became the first Asia CIF shipper to make the Trans Pacific East Bound journey using NYSHEX Forward contract that guarantees ocean space. We look forward to continue using this technology for our customers to confidently offer our ‘no-rollover’ guarantee.

Below is the full text from the article.

The Challenge

Asia-based boutique, OW Logistics (OWL) built its reputation—and leading-edge international network—on two things: 1) Offering “extra mile” service that people love and 2) committed investment in innovative solutions that give their customers an advantage.

Whether it’s delivering a container of bathing suits in time for bikini season or transporting 8-ton buoys that keep an entire region’s water supply afloat—OWL is known for delivering solutions to customers’ challenges with a smile.

Their retail focus brings them into constant contact with small to medium-sized U.S. importers and Asia-based exporters with tight, unforgiving delivery dates often during peak season. That’s when OWL puts on their problem-solver hats and get to work by leveraging their connections, creativity and constantly-expanding array of technologies at hand.

Such was the case one sunny day this summer when a global Ecomm retailer came to OWL with a container of toys from Shanghai, a hot timeline and a California destination. Not only was it a challenge to secure space during peak, it was very important for this cargo not to get rolled.

For OWL, it sounded like the perfect opportunity to try solving an age-old challenge with the latest technological solution on the block, NYSHEX. As Eric Seamon, President of OWL describes it, “Even when the carriers offer fixed space with a space commitment, the truth is the carrier may not accommodate the requested space if there is a great difference between the fixed rates and the market floating rates. As a result, we may pay premium in order to secure the spaces, or risk getting rolled.”

The NYSHEX Solution

The ability to guarantee ocean space with the NYSHEX Forward contract had natural appeal to OWL. As technologically-savvy early adopters, they were keen to try it—the only problem was that until this summer, the only transpacific eastbound offers on the exchange were for U.S.-based importers.

As luck would have it, NYSHEX opened their Asia operation in early summer at just the right time. The toy shipment gave OWL the opportunity to try a totally new solution to a problem that often comes up. As Seamon describes it, “A late or rolled PO often means missed Advert dates and could lead to air freight. Also, we work in fashion and if there is a delay of even a week, the cost of obsolescence can become a factor.”

After they made their decision, the rest was history. According to NYSHEX’s first official Asia CIF shipper, joining was super easy. For their maiden voyage, they chose an offer from Hapag-Lloyd and reported that the confirmation and booking processes were smooth.

OWL provided some valuable feedback regarding SI processing and customs manifest submission, too. Their suggestions will surely benefit other TPEB shippers on the exchange in the future.

 

“We see this as a way to protect our customer relationships by minimizing the interruption in their supply chains due to rolls during times when capacity is tight.”

 

Eric Seamon
President, OW Logistics

Ocean Wide’s Results

As a result of OWL’s successful trial run on NYSHEX, they now have more than a cool new technological toy to play with—they’ve discovered a powerful tool they can use to solve customers’ challenges in new ways and continue to provide excellent service.

Already, it appears to have found a home in their mix of solutions. “We see it as a protection mechanism for when either space or equipment gets tight for specific weeks when customers cannot afford a roll.” Seamon says. “We also offer ‘no roll’ guarantees, and we will use NYSHEX as insurance during peak times.”

Never one to stop innovating and imagining opportunities and possibilities, OWL believes this is just the beginning. “We also see it as a way to potentially secure fixed pricing in the future for a committed set of volume knowing what that lane and market looks like historically,” Seamon says.