The Practioners in the Shipping Buisness

Principal

• Owns the cargo or the asset, or

• Takes commercial risk, and

• Is directly a party to the contract of carriage

Intermediary

• Acts on behalf of a principal, and

• Facilitates or arranges services, but

• Does NOT usually take primary commercial risk

6 Disciplines of Brokerage

-        Sale and purchase

-        Dry cargo chartering

-        Tanker chartering

-        Port agency

-        Liner agency

-        Freight forwarder slash operator

Sale and Purchase Broker responsibilities and setup

• works for either buyer or seller

• has to know about registration, classification, and sources of finance

• specialise in areas, new build, second-hand

What are the methods of Ship management

• Outsourced to a company

• Shipowner company

Main areas of management

• crewing

• storage

• technical

• insurance

• operations

• commercial

what is involved in crewing

• take care of crew and insure leave is given

• flagging ship in certain countries and outsource crewing to save costs

What are the two types of Storing

• items concerned with the crew

• Items concerned with the operation

Crew Items included in storage

food, clothing and bed materials

Types of item in operations

• deck materials

• engine materials

Deck Materials

Ropes, Mooring, Lashing , Timber

Engine Materials

lubricants and oils (spare parts are part of technical)

What are two departments in technical

Marine superintendent department: Responsible for the fabric of the ship and keeping the certification valid

Engineering Superintendent department: responsible for engineering and ship machinery can be electric devices and cargo handling devices

Types of Insurance

• Ship’s own insurance (hull and machinery) (provided by Lloyds of London)

• Protection and Indemnity cover

Operations duties

• communicate with all departments and plan voyage , responsible for appointing the port agent

• One Member must stay active on 24/7 if port agent has issues

Duties of Liner Agent

• Marketing and Sales

• Documentation

• Attending the Ship

• Accounting and Finance

• Control of Equipment

What is a hinterland agent

only involved in marketing and sales not in the others

What is an independent agent

Agent who is only paid for the deals that they do

What is a Exclusive Broker

All their business regarding a ship or multiple ships goes trhough a particular broker,

Can be exclusive for an area

Competitive Broker

Many Brokers and one principal

Intermediate Broker

A broker between two brokers (less common now)

Commission structure for Dry Cargo Chartering

1.25% Commission for each broker involved

Tanker Chartering differences to Dry Bulk

• More specialized

• normally only one broker

• Same Commission

What is Port Agency

Owner far away from port so outsources oversight of ship to a port agent

Responsibility of Port Agent

• Meet the ship and meets the master

• pays all of the suppliers and compiles a disbursement account for submission to owner

• may need to use soft skills to handle disputes with customs

Who appoints port agent on ship

operations

who apart from operations can appoint port agent

Charterer can insist on owner appointing an agent that they trust

What if owner does not like port agent appointed by charterer

• he can appoint a supervisory agent who carries out the tasks that the owner doesn’t trust original agent with and provides oversight

What is a Ship Manager

A ship manager is an entity responsible for the day-to-day technical and operational management of a vessel on behalf of the shipowner.

What is a Freight Forwarder

A freight forwarder is a logistics intermediary that arranges and coordinates the shipment of cargo from origin to destination on behalf of cargo owners.