Types of Shipbrokers:
- Exclusive Shipbrokers of Shipowners
- Exclusive Shipbrokers of Charterers
- Competitive Shipbrokers
Shipwners’ Shipbrokers work exclusively for one or possibly several tramp shipowners. Their duty is to locate the best possible cargo at the best possible freight rate for their Shipowners’ ships from a port as near as possible to the load ports, where those ships are scheduled to discharge their previous cargoes.
Shipwners’ Shipbrokers work these ships on either a voyage charter or a time charter basis, whichever is more advantageous for their owners within the constraints of the charterers’ requirements. Many shipbrokers work as Direct Shipbrokers for several owners and use broking skills in their local geographic area and time zone to cover their local market. Many Shipowners have several direct shipbrokers spread across the globe, each of whom reports directly to the owner and each of them covers a different region and market.
Exclusive Shipbrokers have a luxury in this respect, as nobody can bypass them theoretically.
Shipbroker should never forget to add his or her own commission before submitting any buyers’ or owners’ offer and likewise deducting own commission when passing back any counter-offer to the buyers or owners. It is most important for a broker to build up a network with other brokers who will give support when dealing with clients. This is very much a ‘people’ business and good contacts (whom you know) are often more important than what you know. Brokers should try not to rely on ‘screen trading’: make those phone calls and, whenever possible, meet your contacts.
Shipbroker Companies Post-fixture Departments:
Shipbroker Companies Post-fixture departments: These departments are staffed with experts in the different aspects of chartering. Their function is to resolve disputes between owners and charterers and, if possible, eliminate the need to resort to arbitration or the courts.
Shipbroker Companies Research Departments:
Shipbroker Companies Research Departments: In order to provide the sort of information needed by both owners and charterers, many shipbrokers operate research departments to keep up to date with the latest developments in world trade. Many of these departments have a world-wide reputation for their publications.