TTM15240 - Background material: Brokers and agents for shipping companies

Shipping brokers and agents may perform one or more of the functions below, the smaller firms tending to specialise in a particular function. The larger liner companies often develop in-house capabilities with world-wide computer systems booking cargo and tracking ships. Many independent agents have become more specialised or have merged to form larger national or international groups.

Owner’s broker

Appointed by shipowner to find and negotiate fixtures (contracts) with potential shippers of cargo.

Charterer’s (cargo) broker

Appointed by shipper to seek a vessel and negotiate with owner’s broker.

Tanker broker

In tanker trades it was customary for a single broker to act as an intermediary between charterer (oil company) and shipowner. More recently the oil majors use their own shipbroking departments to negotiate with owner’s broker.

Sale and purchase (SP) broker

Specialist SP brokers deal with the sale and purchase of ships. The standard contract adopted by BIMCO, see TTM15200, is called ‘Saleform1993’. There is a similar form for sale of a ship for scrap.

Port agent

A port agent attends to the owner’s and ship’s business of husbandry, port services, such as repairs, victualling and bunkering, and assists the master with the organisation of cargo handling. There are companies specialising in world-wide services, providing co-ordination between ports, standardised fees and financial reporting.

Husbandry agent (ship manager)

A husbandry agent attends to the non-cargo matters of the ship, its crew, repairs, provisioning and supplies, classification surveys, and so forth.

Specialised service agent

Various agencies specialise in the provision of tugs, supplies and spare parts, bunkers, receiving their commission from the sellers of such services.

General agent

A general agent may have authority to seek cargo, disburse funds, select and appoint sub-agents and make operational decisions. It may also conclude charterparty negotiations, acting as ship operator in place of the owner.

References

Appointment of brokers and agents – TTM15250

Commission to brokers and agents – TTM15260