SHIP BROKERS

WHO ARE SHIP BROKERS?

• Ship brokers are specialist intermediaries/negotiators between ship owners and charterers who use ships to transport cargo, or between buyers and sellers of vessels.
• Primarily, a ship broker’s job is to fix ships (match a cargo to a ship or vice versa, match a buyer/seller with a ship, so on and so forth depending on the nature of broking an individual specializes in).

CHARACTERISTICS OF SHIPBROKER?

• This is a very competitive profession. It provides the best environment for learning about business.
• The pressure in the shipbroker industry is also very high, so it is not healthy if you do not know how to relieve stress, and because brokerage is a very personal job, sometimes applying for leave is difficult to find a replacement, even when you are sick, you still have to take medicine when writing emails to answer customers.
• In particular, the shipbroker profession is between the ship owner and the charterer, so they known about the tricks of both partners. Therefore, a characteristic to be noted in the shipbroker profession is the honesty and responsibility of the shipowner and charterer towards the broker.
• Qualities A Ship Broker Must Have:
  • • Hard-working
    • PR skills
    • Time management
    • Communication skills
    • Proactive and initiative taker
    • Keen interest and knowledge about the industry

• Shipbrokers work on a commission structure wherein a percentage of the total worth of the deal (e.g. 1.25% on freight, dead-freight and demurrage in case of tankers, 1% in case of S&P) is what they take to the bank.

CLASSIFICATION OF SHIPBROKERS?

In fact, there is not a single clear classifications in chartering, because the course of action is often the same.

However, we can be classified into two main categories:

1. Owner’s Broker: Shipowners entrust the broker to find cargo for the ship to carry. The broker must try to fix it to the vessel owner's benefit by negotiating for the highest freight rates, fastest port handling times and other favorable terms for the shipowner.
2. Charterering Agent: Shippers entrust the brokers to find ship for goods to carry. The broker must strive to have the lowest freight rates, the condition of the age of the ship, the type of ship appropriate to the type of cargo being transported, and the terms of the contract in favor of the charterer.

Thanks for your watching!

*Writting by Mr. Liem/TTS