This weekend concluded the Nobel festivities here in Stockholm. Among the usual grandeur of Swedish royalty and distinguished members of the scientific community, this year also included a subject very close to us; Contracts.
The recipients of the Nobel Prize in Economic Sciences, Bengt Holmström of MIT and Oliver Hart of Harvard University, was granted this honour for their defining work into Contract Theory. Their work will help communities, companies and nations evaluate contracts and incentives. The importance of contracts, and especially properly drafted contracts, in all facets of life, makes them a cornerstone of any transaction.
We’re happy that this subject is brought up at this prestigious event. We believe strongly that contracts are a vital part of any trade and aim to be the facilitator of better contracts for the freight and commodity industries. But while Oliver Hart and Bengt Holmström could dedicate their careers studying contracts, this is not a luxury we can all freely partake in. Shipping and commodity trading do not leave much room for reflection. That is why we believe that to be able to practice good Contract Theory, you must have the appropriate tools to do so in a timely and efficient manner.
Chinsay has for many years helped global businesses save time producing contracts and mitigate risks of making mistakes.
If you, like us, believe that a modern trade requires modern contract tools, please contact us for a call here: +46 8 611 14 20 or send an e-mail to firstname.lastname@example.org
We are glad to be sponsoring this great event in benefit of Seafarers across the globe. We look forward to meeting fellow shipping professionals on the 18th of November at the InterContinentental Hotel in Geneva.
This event directly helps fund the Sailor’s Society work in improving the lives and education of seafarers in the shipping industry. Seafarers are a huge part of the enormous machinery that is global shipping, and their well-being is something we as part of this industry must endeavour to improve.
The Sailor’s Society supports and helps seafarers across the world. To read more about their great work and how you can get involved, follow this link: https://www.sailors-society.org/get-involved/ and you can read more about this event in the attached PDF.
We hope to see you there!
Chinsay is proud to be a supporting organisation of the Singapore Chamber of Maritime Arbitration’s event of speeches and discussions regarding the importance of standardised forms and clauses in maritime arbitration. This year’s Distinguished Speaker is Søren Larsen, Deputy Secretary General of BIMCO. His speech will focus on the importance of using forms that contain standardised arbitration clauses. The following panel discussion features leading practitioners and legal counsel from major industry companies like Rio Tinto, BW Group and SwissMarine.
We are excited to join this event in our continuous efforts to help the industry standardise and simplify their contracting process to save time and mitigate risks. Our extensive library of standard forms and clauses from our partners at BIMCO and SCMA provide the industry with tools to accomplish this.
We look forward to seeing you there,
SCMA Distinguished Speaker Series 2016
BIMCO and Maritime Arbitration in the Asia Pacific
– with Søren Larsen, Deputy Secretary General, BIMCO
Date: 4 November 2016, Friday
Time: 1030 – 1400 (lunch is provided)
Venue: Maxwell Chambers, Singapore
Find out more about the event and the panellists in the official flyer here.
The latest iteration of the NYPE Time Charter Party is jointly authored by BIMCO, ASBA and the SMF. Clauses are reviewed and revised to reflect the commercial and legal developments in the dry bulk sector and the shipping industry in general. Please read BIMCO’s Explanatory Notes here if you are interested to know more about these changes.
We are continually working to provide our clients with the largest online library of authorized and original Charter Party forms. As a proud partner of ASBA and BIMCO, we ensure that our clients have access to the most updated and current standard forms used across the industry. We welcome comments and questions about the NYPE 2015 or any other Charter Party form available on the Recap Manager to: email@example.com
We at Chinsay pride ourselves at being at the forefront of technological development for contract management. We want to provide the best solutions that help our clients take their real life workflow to a more secure and more efficient online platform. We have recently taken steps to more acutely listen to our clients and the current market conditions which has lead us to reassess our current validation process.
This weekend we have launched a new update to the system that, among many other updates, provides a recap on subjects option. The system now offers our users the option to either enter a clean fixed recap or an on subject’s recap.
Entering a clean fixed recap functions like the current process but the new option adds an additional validation and editing step. When choosing that the recap is on subjects you first edit the on subjects recap and then validate that. After lifting subjects you get to edit and validate the clean fixed recap as well.
To facilitate your need for control and risk mitigation we have also added functionality to easily compare the different recaps. You can quickly compare the clean fixed recap to the on subjects recap and the charter party to the clean fixed main recap. This makes sure that you can keep on top of the different versions and progress of your fixture.
If you have any further questions regarding this new functionality, or any of the other developments, please consult our release notes attached to this article or contact us at firstname.lastname@example.org or +46 8 611 14 20.
In the article published in ComTechAlert, Colin Hayward is asked about Chinsay and our view on the markets current state of contract management. The rate of adoption of contract management technology in trading firms is slow but harder times are bringing on a need for change. The future holds great things for those willing to use technology for their contract management, minimizing risks, increasing speed and ensuring stricter compliance.
Read the whole piece in the PDF attached below.
Chinsay’s Product Manager, Colin Hayward, is featured in the latest BIMCO Bulletin. The piece covers the risks with contract management and the dangers of relying on out-dated processes and solutions. Innovative solutions that drive corporate learning and applies them to the processes are the key to solving these issues.
Chinsay has decided to reduce transaction fees and re-structure the current pricing model. Transaction fees are initially reduced by more than 20% on average (for some fixtures up to 66%).
The pricing model is changing in two ways; the pricing tiers are being simplified and the pricing formula is being amended to become easier, more accurate and a better reflection of market conditions. The simplification also unifies the different tiers for Time Charter and Voyage Charter fixtures.
Please also note that our volume discount model, enabling discount up to 30%, still applies after this price change. In addition, fixtures where none of the counterparties are subscribing Chinsay members (“standalone fixtures”) will still be free of charge.
a = Baltic Exchange Handysize Index (BHSI) quarterly change
b = Baltic Exchange Supramax Index (BSI) quarterly change
c = Baltic Exchange Panamax Index (BPI) quarterly change
d = Baltic Exchange Capesize Index (BCI) quarterly change
The pricing formulas consist of one fixed part (the base price) and one variable part which is index-linked. This means that if the indices go down, the transaction fees go down with them and vice versa. The variable part, calculated at the beginning of each calendar quarter, is equal to the index change multiplied by a constant of 0.05. Transaction fees will therefore change quarterly where each index change will be calculated as the:
(quarterly average index level for the previous quarter) – (Index Starting Level)
Index starting levels are set to the respective index level on the last published index day of 2015 (24-Dec-2015).
Transaction fees for the period 01-Feb-2016 to 31-Mar-2016 will equal the base prices. Thereafter, transaction fees for subsequent quarters will be adjusted relative to the average index levels over the immediately preceding quarter compared to the index starting levels of 24-Dec-2015.
New TC Pricing – Examples (for illustrative purposes):
New VC Pricing – Examples (for illustrative purposes):
For further information or questions, please contact Chinsay Support on +46 8611 1420 or email@example.com.
Article updated 2016-04-01
11 February 2016, Stockholm & London: Chinsay, the global standard for physical freight and commodities contract management, is pleased to announce several milestone developments for the company as it prepares for the next stage of growth.
During 2015, 10 new global corporations, including Anangel, South32, NYK Line and Noble Chartering, decided to move their contract management to Chinsay’s platform, joining existing clients including ADM, BHP Billiton, Cargill and Rio Tinto. This is a clear testament to the benefits of Chinsay’s Recap Manager (RM), a secure online platform for freight contracts management. The RM enables easy management of contracts; from document creation, time-saving change logs to contract repository and statistics. It captures information at source and makes it securely available to all parties in the trade, enhancing contract-related collaboration and creating an audit trail. This makes the process of contract creation faster and much more efficient whilst reducing risks, including those related to manual errors.
Chinsay continues to innovate and recently launched an improved interface for the Recap Manager. The updated interface improves the system speed and workflow efficient by up to 100 per cent. In addition, new server capacity and speed have been increased by 300 per cent to enable slower computers and platforms to function more smoothly with the RM platform. Further, introducing new features and improving the existing ones will help to reduce the time needed for the contract process, e.g. simplified fixture overview, an improved navigation bar and a new online help centre. The upgrade also provides easier mobile access to the system, thanks to its smartphone and tablet compatibility.
Furthermore, to position the company for growth in 2016, Chinsay has made a number of prominent hires and welcomes seven new additions to the team in both the Stockholm and Singapore offices. Senior hires joins with experience from BHP Billiton, Vale, the Maersk group and Merrill Lynch. These senior executives will be supported by graduate hires. In addition, Anthony Kokkinis, Chinsay’s Head of Support, has relocated to Singapore to strengthen the company’s presence and provide a better service to clients in Asia.
Dag Sundén-Cullberg, founder and CEO of Chinsay, commented: “At the beginning of 2016, we are excited to welcome some fantastic new clients and colleagues and to present the new Recap Manager. User experience is our number one priority and this upgraded platform demonstrates this commitment. Our goal is to encourage the global commodity trading community – be it commodity traders, ship operators or ship brokers – to embrace technology and this recent upgrade will make this transition even easier. We are very pleased with last year’s growth, a testament to the fact that the industry wants and needs proper contract management throughout the commodity cycle. Despite the challenging market conditions, we look forward to taking the business to the next level in 2016 and to continue working with clients through these turbulent times.”
The China Iron Ore 2016 conference is the premier conference for the iron ore industry and this year it is held on 2-3 March at Beijing’s Grand Millennium Hotel. In 2015 it was attended by over 230 executives from 160 companies hailing from 24 countries. The conference is host to various roundtables and guest speakers and provide a platform to discuss the key market trends and the future of the iron ore industry.
Chinsay will be a corporate sponsor of the event alongside major industry players such as Cargill and Anglo American. We will join the debate on the ongoing efforts to improve the industry’s contract management.
Please join Chinsay’s representatives Karen Li and Andre Herrera at our booth in the Main Conference Hall, where we will be showcasing our award-nominated Commodity Contracts Management (CCM) platform.
With its unique Cloud-based, collaborative platform, Chinsay is committed to bringing the industry’s contract management into the 21st century for the benefit of the whole industry, making it more efficient, reducing costs and improving risk management.
If you have any enquiries or would like to schedule a meeting at the event, please contact our representatives: firstname.lastname@example.org or email@example.com. You are always welcome to give us a call on +46 86 11 14 20.
12 January 2016, Stockholm & London: Chinsay announced today that its latest online Commodities Contract Management system, CCM, has been shortlisted for Risk Management Software of the Year in this year’s FStech awards. Chinsay is the global standard for online freight and commodities contract management in the physical markets.
“This is excellent news for Chinsay,” commented Dag Sundén-Cullberg, founder and CEO of Chinsay. “Risk exposure in the commodities trading sector is enormous yet a majority of traders rely on paper-based systems, which means that manual errors are still a reality. These errors can have significant financial impacts and we are working hard with the global trading community to help companies move forward and embrace technology which will enable them to remain competitive. The acknowledgement of our system by the FStech awards is a great achievement and we look forward to working with many more companies this year as the industry continues its transition to technological solutions.”
Now in their 16th year, the FStech Awards recognise excellence and innovation in the field of information technology within the UK and EMEA financial services sector. Winning entries will come from financial services institutions and technology suppliers who are leading the way in such areas as compliance, systems integration, outsourcing, data governance, online, mobile, social media and customer service.
The awards are independently judged and the winners will be announced at the FStech Awards Gala Dinner & Ceremony on 17 March 2016 at the London Marriott Hotel, Grosvenor Square.
Chinsay is pleased to announce that the new design interface for the Recap Manager (RM) was launched on the 3rd of January, 2016. While primary functionality of the system remains the same, the new design will give some significant benefits for the users:
• Increased system speed – reduced loading times and increased responsiveness
• Leaner work flow reducing time to create a CP
• Easier mobile access to the system – improved compatibility with smart phones and tablets
Some of the main updates include:
• Clearer validation process with better overview
• New notification centre
• Decreased loading times
• Simplified fixture overview
• Improved navigation bar
• New online Help Centre
• Integrated Support widget to get in contact with support agent or access the Help Centre inside the system
Chinsay is eager to provide clients an improved Recap Manager user experience and look forward to receiving feedback or comments. Please contact firstname.lastname@example.org to submit feedback, ask any questions that you may have, or for requests to receive a demonstration of the new interface.
For a more detailed and technical explanation about the upgrade, please click here.
For more than a decade Chinsay has been setting the global standard for online freight and commodities contract management in the physical markets. We want to help and encourage the industry to move away from the significant inefficiencies and financial losses which can result from using uncontrolled documents and obsolete versions of charter parties (CPs). We believe that giving free access to the Chinsay platform is a major step forward in enabling the industry to quickly and easily see the benefits of using specialised contract management technology. Managing charter parties is such an important part of freight transactions that it is time to move CP creation and management to a 21st century platform. From September 9th we are backing this belief with the decision to remove the current price for brokers using Chinsay on fixtures where none of the counterparties are subscribing Chinsay members (“standalone fixtures”). Along with our initiative to offer free CP creation we are launching a new discount model, making it applicable for more of our clients. Standalone fixtures are included in the discount structure, which means that you can take advantage of larger discounts on your external fixtures, simply by doing more free standalones (see the examples below). The revised discount model will start at 10 fixtures/month, reduced from the current 20, allowing more of our broker clients to qualify for a discount. Every trading day across 40 countries our 3,000 unique users see the benefits and cost-savings of contract standardisation and centralisation. With a clear audit trail and full compliance clients benefit from real-time management controls and significant error and risk reduction. We provide levels of efficiency, security and accuracy which only specialist technology and a real understanding of the market can deliver to the global shipping community. Getting access to your free standalones does not require any new action from your side. This will automatically apply when you create a fixture and select that both Charterer and Owner are “not a Chinsay member”. To find out more about what this means for your organisation feel free to contact us on (+46) 8611 14 20 or email@example.com
10th September 2015, Stockholm & London: Chinsay, the global standard for online freight and commodities contract management in the physical markets, has announced today that its specialist shipping contracts technology, the Recap Manager, has been shortlisted for the prestigious International Bulk Journal Awards. The 2015 ceremony will be held at the Hilton in Antwerp on 16th November.
“It is such a great honour to be shortlisted for the International Bulk Journal Awards,” commented Dag Sundén- Cullberg, founder and CEO of Chinsay. “We are truly committed to making a difference in the freight industry and being acknowledged for the innovation and quality of our solutions is an immense achievement for us here at Chinsay.”
“We are bringing efficiency, security and new levels of risk management to a global industry,” added Sundén- Cullberg. “Much of the freight industry still uses manual contracts, making it difficult for participants dealing with thousands or tens of thousands of contracts to have an accurate view of their business. Getting a single contract wrong can be extremely expensive and damaging to a company’s reputation. Our system allows users to substantially reduce errors and increase efficiency and it is easy and fast to de-risk the business. We firmly believe that having experienced and capable staff is no longer enough for our clients to remain competitive in an environment that is becoming more and more complex. It is now time to embrace technology and we are here to help the freight industry take the next step forward.”
In 2008 Chinsay started working with a client who suspected their contract-management process was getting in the way of their overall growth strategy. Their dependence on paper had become burdensome, given increases in the volumes of information that were being provided; it would usually take brokers 9-12 months to send contracts back to them. The implementation of the Recap Manager did not only save the company a lot of time, it also significantly improved the quality of their operations. For this client, and many other freight industry professionals, access to real- time data provided by Chinsay helped transform an administrative burden into a value-driver.
Ray Girvan, publisher for the International Bulk Journal, commented: “We have had a tremendous response to this year’s call for entries and for a company to be on the shortlist is a success in itself.”
Nearly 500 guests are expected at the awards dinner to celebrate yet another year of excellence, achievement and innovation in the maritime bulk industry.
Notes to editors
Chinsay is the global standard for online freight and commodities contract management in the physical markets. The company’s technology provides 21st Century control and management to one of the most important, but historically, one of the least technologically connected areas of world trade – the trading and transportation of physical commodities. Chinsay is the only company which is completely focused on bringing control, security and real-time cost efficiencies to the trillion dollar global commodity and freight trading market.
Headquartered in Stockholm and with regional offices in Singapore and the UK, Chinsay has more than 3000 users at 270 corporate clients across 40 countries, ranging from some of the largest trading houses, commodity producers and their brokers through to cargo charterers and ship operators. Clients benefit from the cloud-based, real-time contract management and position-keeping that only Chinsay can provide.
When Chinsay launched in 2000 it was clear to the founders that a contract was at the heart of every trade. Now Chinsay is at the heart of every contract. Chinsay brings control, efficiency, accuracy and security to global trade.
With ongoing globalisation and the emergence of new markets, the shift in world trade towards East Asia and the ASEAN region, both of which have a growing middle class and surging economies, will continue apace. This changing reality of global trade flows places new demands on the shipping industry as the economics of doing business require companies to adopt better control, risk management and reporting processes to satisfy the requirements and regulations of a global marketplace. None of this can be achieved with the 20th century risk tools used by the industry today.
When referring to risk in shipping the focus is most often on price risk. While the industry has come a long way with FFAs, systems and formalised processes around managing price risk, the reality is that any physical contract for delivery is subject to many more risks than just price fluctuations. Surprisingly, there are few systems in place which give visibility to the diverse and numerous risks associated with the industry; those systems are, for the most part, not real-time, which is why companies find themselves limited in their ability to get a high-level and complete view of risk, manage it efficiently or indeed optimise the business. The management of contracts within the freight industry, by and large, relies on 20th century tools to manually create, issue and manage freight agreements. We would find this unacceptable in our personal financial management, so why do we accept it when this approach might put our business at risk?
The processes built around the creation of contracts are to a large extent manual and time-consuming. The complexity of the trade places great demands on individual employees, who need to have the ability and the up-to- date knowledge to identify risks and, more importantly, react to them.
Changing, slowly but surely
The good news is that contract management is at last changing: slowly, but surely progress is being made. When an industry is slow to adopt new ways and new technologies there is usually a surprisingly significant and positive effect on the business when it finally makes the leap to modernise. This is now beginning to happen in contract and risk management. When an industry such as banking, which prides itself on constantly implementing new technology, implements new practices or processes, the expected gain versus cost is usually minimal. But with global shipping and contract management, in particular, the benefits from implementing new technologies are significant in terms of efficiencies, risk management, dispute resolution and fraud reduction. As with any good system, the foundation of better contract management is accurate data, which is securely accessible to both parties in real-time.
When contract information is captured at the source and made securely available to parties in the trade, there is a big improvement in the management of the contract lifecycle for fixture recaps, charter parties, and other fixture-related documentation. This includes document creation, review, validation, archiving and retrieval. But where does this information come from? How accurate is it? How can you ensure that everyone who needs it has access to it – when they need it?
Organisations in the shipping industry have not historically been good at sharing information across the business; this is rarely automated and extracting useful information from a sea of data, on an ad-hoc basis, becomes very expensive and time-consuming, assuming it’s even possible. This approach is prone to errors and mistakes are easily inherited and unwittingly propagated. Resolving this is time-consuming at best, but, at worst, exposes the company to costly resolutions and various risks: contract, reputational, political, execution, etc. In an attempt to identify contractual risks and get a complete overview of these risks, companies are having to resort to multiple reporting tools, spreadsheets and manual processes, which limits the ability of these companies to proactively identify and manage risk.
What do these risks amount to? Well, according to the LCIA, their caseload of contracts being referred to arbitration increased by 54% in 2013. Of those referrals which had financial settlements, and where the claimant specified an amount, more than 60% were resolved for sums in excess of $1 million; 25% of these were over $10 million.
So contractual risks alone can be very costly. As a result of the recent Qingdao Port scandal, banks, traders, lawyers and companies have been reviewing their contracts, which make up part of the $4.5tn China import/export market. Currently, according to Reuters, banks and traders are locked in $3bn of lawsuits as a result of this review. Significant to these lawsuits will be the contracts themselves and the master agreements they refer to. The recent decision involving an oil trader and a bank was for $270m, and while no payment was forced, it highlighted the size of the potential problem.
In addition, new regulations place more demands on the industry: the ICC Global Trade and Finance survey notes that 193 new trade restrictive measures were introduced by the G20 between December 2013 and November 2014. How do you ensure that your staff are aware of these new measures and understand the effects on your business? If you do manage this, how do you ensure that the information you need is available when issuing contracts?
The solution is technology. The solution is processes. The solution is to empower staff by giving them all the information they need to spot and act on risks. Companies which recognise the potential of integrating technology into their contract management process will be quick to reap the benefits across their businesses. According to PWC, companies which implement strong control systems and develop standards are in a much better position to detect and eliminate weaknesses and gaps in their businesses at an early stage. A PWC risk management report from April 2015 states that companies which put a premium on risk management see better growth than companies which do not.
Emphasising the importance of a well-structured process around the management of commercial and contractual information creates great opportunities for improvement and efficiency gains. However, the technology which is being used must be cost-effective and easily scalable. The right technology gives companies tools which help them to be more efficient, dynamic and to make better-informed business decisions by having the right information with the right people at the right time.
The solution is technology-led but it also requires having the right processes. The industry increasingly recognises that the ability to effectively manage, mitigate, and monitor risk is a source of competitive advantage.
Embedding corporate learning means incorporating the lessons learnt by the organisation into operations in order to avoid being dependent on the experience and knowledge of individual employees. When this is applied to contract creation it ensures that everyone involved in the process has real-time access to relevant, centralised information and can make an active and informed decision about any possible risks.
Risk profiles change during and after contract issuance; assessing open contracts for emerging risks can be very problematic and costly. Being able to identify contracts which have become more, or less risky, allows you to take the appropriate measures to manage emerging risks. This can give you an early warning system for all contracts against a variety of risks – even if it is just one line in one clause that causes the change.
Technology is the most effective route for companies to achieve real 21st century contract management, with all it has to offer: real-time decision-making, collaboration, connectivity and visibiility. As a wise man once said: “Knowledge is power ”.
We are glad to be sponsoring this great event in benefit of Seafarers across the globe.Read more
Come and join us at SCMA’s event featuring speeches and discussions from leading profiles of BIMCO, SCMA and the freight industry on Maritime Arbitration in the Asia Pacific.Read more
We are pleased to announce that the NYPE 2015 is now available on the Recap Manager.Read more
A new system update has been released with new functionality and also improved existing functionality for the Recap ManagerRead more
Chinsay's product manager, Colin Hayward, is featured in a Q&A regarding the present and future state of Contract ManagementRead more
Chinsay's Colin Hayward featured in BIMCO BulletinRead more
Chinsay restructures pricing model and launches new pricing formula, resulting in up to a 66 % reduction in transaction feesRead more
Chinsay reviews 2015 and looks forward into 2016Read more
We are happy to announce our sponsorship and participation in this prestigious iron ore industry conference.Read more
Chinsay announces its latest online Commodities Contract Management system: CCMRead more
We are proud to reveal the new look and structure of CHINSAY.Read more
For more than a decade Chinsay has been setting the global standard for online freight and commodities contract management in the physical markets.Read more
Chinsay shortlisted for prestigious innovation award for shipping.Read more
Christoffer Svärd, Sales Manager & Product Manager at CHINSAY considers risk and contract management issues in the shipping industry and how integrating technology can reap benefits.Read more