Here's the story, adapted from the NYSHEX case study.
The Challenge
Asia-based boutique OW Logistics (OWL) built its reputation, and its leading international network, on two things. First, it offers “extra mile” service that people love. Second, it invests in new solutions that give its customers an edge.
It might be a container of swimsuits that has to arrive in time for summer. Or it might be 8-ton buoys that keep a whole region’s water supply afloat. Either way, OWL is known for solving customers’ problems with a smile.
Because OWL focuses on retail, it works closely with small and mid-sized U.S. importers and Asia-based exporters. Many of them face tight delivery dates, often in peak season. That’s when OWL puts on its problem-solver hat. Then it gets to work, using its connections, its creativity and a growing set of technologies.
One sunny day this summer, a global e-commerce retailer came to OWL with a container of toys from Shanghai. The deadline was tight and the cargo was bound for California. Securing space in peak season was hard enough. On top of that, this cargo could not afford to get rolled.
For OWL, it was the perfect chance to tackle an age-old problem with the newest solution on the block, NYSHEX. As Eric Seamon, President of OWL, explains 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
A NYSHEX Forward contract guarantees ocean space, so it naturally appealed to OWL. As tech-savvy early adopters, the team was keen to try it. However, until this summer, every transpacific eastbound offer on the exchange was for U.S.-based importers.
As luck would have it, NYSHEX opened its Asia operation in early summer, just in time. So the toy shipment gave OWL the chance to try a new answer to a common problem. As Seamon puts 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.”
Once OWL decided, the rest was history. According to NYSHEX’s first official Asia CIF shipper, joining was super easy. For its first voyage, OWL chose an offer from Hapag-Lloyd. It also reported that confirmation and booking went smoothly.
OWL also gave valuable feedback on SI processing and customs manifest filing. As a result, its suggestions should help other TPEB shippers on the exchange.
“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.”
Ocean Wide’s Results
Thanks to its successful trial on NYSHEX, OWL now has more than a cool new piece of tech. In fact, it has found a powerful tool for solving customers’ problems in new ways and keeping service excellent.
Already, the tool has found a home in OWL’s 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.”
OWL never stops innovating, so it 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.
