How thinking outside the box with NYSHEX is saving one midsized importer big time.
Time is always of the essence for The Tin Box Company. The licensed and seasonal products they craft from tin are hot-sellers with a short shelf life. Any delays in getting the goods to retailers like Target, Walmart, and Michaels bring heavy penalties.
Regardless of their careful planning and the “cushions” they build into their supply chain, Tin Box risks delays when their containers get bumped off ships. When this happens, Tin Box is reminded that even the world’s largest tin manufacturer with its less than 250 containers a year can’t compete for space with the biggest shippers.
Guaranteed vessel space initially drew Tin Box to check out NYSHEX. The fact that they can enter into a binding contract with carriers that all parties will honor or pay a penalty solves their bumping problem. At present, Tin Box is supplementing their yearly contracts with NYSHEX Forward™ contracts.
It’s been an easy transition according to Tin Box’s Vice President of Imports, Michael Siegel, “The process to sign up was very smooth and easy. It took about 10-15 minutes to start and then another day to get approved and start searching and viewing carrier offers. I had my first container booked within 2 weeks of starting. And sending the deposit was really easy via wire transfer.”
In a very short period of time, NYSHEX has become part of their routine. “It’s nice to be able to go online and just see everything listed there for you—what your different options
Thinking outside the “annual contract box” has added new reliability to Tin Box’s supply chain—but the savings they’ve encountered are the real story.
Tin Box has been able to save $300-$400 per container when compared to previous container pricing options. If this keeps up, Siegel estimates they’ll save close to 11% on ocean freight this year. The ability to lock in rates and guarantee vessel space on NYSHEX led Tin Box to allocate half of next year’s containers to NYSHEX Forward™ contracts.
According to Siegel, “Overall, my experience so far has been great. I will continue to use NYSHEX for my container shipping needs.”
And with less risk of being bumped thanks to NYSHEX, the company is also considering reducing the time cushion they’ve built into their process. That will enable Tin Box to get trending products onto shelves quicker—for better profits and happier customers.
“Binding contracts were the biggest selling point of NYSHEX to me. The fact that they are guaranteeing a certain amount of space during a certain amount of time…and the rates are good That’s a win-win-win.”
Enforceable contracts add reliability to supply chain
Digital contracting enables shippers to view multiple carrier offers instantly and simultaneously
Email alerts notify shippers the moment carriers post new offers to the exchange