Executive Commentary

the relationship strain and reduce the administrative burden . These contracts also perform significantly better because they avoid situations where a carrier might be incentivized to curtail a shipper ’ s allocation when spot rates climb above contract rates , or instances where a shipper might be incentivized to shift their volumes off contract when spot rates fall below contract rates .

The main drawback of index-linked contracts is the shipper ’ s freight rate changes each week or month based on changes to the underlying index , making cost planning more difficult . Fortunately , some of the major global banks , such as Goldman Sachs , now offer hedging solutions that allow a shipper to manage the freight cost fluctuations in the same way they might manage their currency or interest rate exposures .

It ’ s super exciting to see how our industry is innovating . At NYSHEX , we ’ re fully committed to supporting our member carriers , shippers and

“ Predictive analytics allows companies to foresee demand and potential disruptions , enabling proactive risk management .”

Alan Baer

OL USA

Alan Baer

President www . ol-usa . com AI is revolutionizing container shipping by enhancing efficiency , predictive analytics , decision-making , automation , sustainability and resilience . It optimizes supply chain processes , reducing costs and improving speed by streamlining tasks such as tracking shipments and managing stock levels . Predictive analytics allows companies to foresee demand and potential disruptions , enabling proactive risk management . AI provides real-time insights and recommendations ,

aiding managers in making informed decisions . Automation of repetitive tasks frees up human workers for more complex activities , while AI-driven sustainability efforts optimize routes and reduce waste , contributing to environmentally friendly practices . Additionally , AI enhances supply chain resilience by quickly identifying alternative supplies and solutions during disruptions . Overall , AI ’ s ability to process and analyze large datasets , provide actionable insights and automate routine tasks makes it an invaluable asset in the container shipping industry .