I have written previously about shipbroker commissions, especially for dry cargo specialists.
Shipbokers usually earn 1.25 percent of the total freight bill. So if 50,000 mt of steels from the black sea to china gets fixed at usd 35 per tonne the total freight bill = usd 1.75 million. 1.25 percent of 1.75 mill = usd 21,875 dollars in commission to the broker.
So the next question is how much does the average shipbroker earn for his / her company in a year?
Its very difficult to be specific because of the diverse nature of the industry and its particpants. A perfectly good broker in a small market segement may earn USD 150,000 for his firm over a 12 month period. In a more liquid segement of the market an average broker may earn 150,000 for his firm.
But I am prepared to make a few generalisations - why - because I can!
Here is what I think are the benchmarks for brokers in your major, liquid markets. For all those brokers out there who beg to differ send feel free to send me an email.
Young / junior / break even broker - generate bwteen usd 75,000 and 175,000 per year in revenues for the company.
Medium performer - generate between USD 175,000 and 350,000 per year.
Good performer - Genrate between USD 350 and 600,000 per year.
Star (fixing machine) - USD 600,000 plus!
Want to work out how much each shipbroker should be getting paid? For many years there was an unwitten rule. Take the brokers revenue and divide by three. This should roughly equate to the shipbrokers salary and commissions at the end of each financial year.
BTW - I am busy trying to write 'how to start your own shipbroking business'. Should be available over the next one or two weeks'. For those of you interested on starting a shipbroking business there are a few revelations in their that i am sure you will more than interesting.
So keep an eye out!
- The Virtual Shipbroker
- Hi. I am a shipping company director, transport academic, author, family man and all round nice guy. I have worked as shipbroker, shipowner, freight trader and bulk charterer, in senior positions, with some of the largest and most disrespected (joke) companies in the world. Ask my advice on all things shipping and you will receive my blunt and always honest answer. Hang around to learn more about chartering and ship broker salaries, chartering and ship broker jobs, chartering and shipbroker recruitment agencies, cheap freight, maritime education, chartering and ship broker qualifications, become a ship broker, tips on how to be a successful bulk shipping executive, philosophy, Zen and the art of shipbroking, and much more. Yours The Virtual Shipbroker (recently proclaimed the guru of shipbroking) Copyright © 2009-12 by Virtualshipbroker