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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 © 2009-17 by Virtualshipbroker

Friday, June 26, 2009

Fixing Machine - Tip 10

The importance of charterparties!

A charterparty is the final contract signed between the two principal parties - ie the shipowner and the cargo owner. A charterparty is a legal document, jargon heavy containing numerous clauses and it can be anywhere from 10 to 100 pages long. Most cp's (charterparties) are atleast 35 pages in length.

What is the role of a the shipbroker in charterparty negotiations and why is it significant?

Most shipbrokers care little for the contents of a charterparty aside from the main terms. Most would consider that their job is done and leave it to the respective parties to fight out the remaining charterparty details - often seen as less significant.

The truth is that a 'fixing machine' can prove his or her worth many times over by being an expert in all things charterparty. Even the most seemingly insignificany of clauses can have a deep inpact on a customers bottom line (if the circumstances assist).

We all recongnise that a charterparty clause has a significant legal role to play over the course of a voyage. What many brokers dont realise is that each clause also has a huge commercial significance - some more than others.

Many time over the years, as a broker, shipowner, and charterer I have twigged various CP clauses to my advantage (or to my customer advantage). The benefits can be huge. Adjusting a laytime clause can push a deal from a loss making to a profit making venture. Knowing the signifcance of a force majeur clause and relevant wording can mean the difference beteen bankruptsy and huge profits!

So if you want to be a truely great broker - learn about charterparties inside and out - and offer this expertise to customers. In learning about cp's never run away from taking an active part in the process, offer to draw them up and always keep an eye on chaging rules and regulations that govern the industry.

Send me the signed CP! Well done Fixing machine...

Yours

VS

3 comments:

  1. great blog and helpful insight into the industry. I am looking to enter shipbroking was wondering which area is the best paid? does it rank like sale and purchase first, dry cargo second, tankers third....?

    ReplyDelete
  2. Hi

    I have answwered this before. IMO all of these segments are very well paid. Probably fairly equally aswell. There seems to be an assumption out there that SNP brokers earn more but this is not necessarily the case. certainly for a very good sale n purchase broker the rewards can be huge but this is also the casee for the other sectors.

    SNP is an attractive market segment to get into because you hav to complete less transactions to make a buck than a competative dry cargo or wet cargo broker. Whenever you can maximise earnings by doing less work then that is a no brainer.

    On the downside is that if you are less than good then you could go years without selling a ship! That means lots of pressure.

    Good luck!

    ReplyDelete
  3. hello vs

    how do charter parties are formed if no one knows the clauses or understands just the basic
    ones.
    where does one draw clauses from to form 35 pages?

    Is shipbrokers' knowledge limited to specific

    charterparties according to the owners that

    trade with them?
    thanks

    ReplyDelete