Time management is an important part of any shipbrokers life. So anytime used not trying to 'close deals' can be a moment wasted.
Here's a cool way I like to think about the negotiation process - and thus manage my time better.
You can use it too
Lets say you have a close client who is a charterer and this charterer uses 5 shipbrokers.
When you receive a new charter order you have
1. A 20 percent chance of doing a FIXTURE (one out of five brokers)
2. When you receive an indication from an owner this percentage (i reckon) goes up to 30 percent chance of doing a FIXTURE. (an Indication is a big deal. But other brokers will also be bringing in a few indications)
3. If you receive an offer from a shipowner I suggest that your chances of doing this FIXTURE go up to say 40 percent. (A broker needs to treat offers very seriously. This means you are getting closer to being in the money!)
4. If you get a counter offer (from the charterer) - then this percentage goes up again to say 70 percent. (yes a counter offer improves your chances by a huge percentage. It means the two parties are now actively involved in a trade and have invested time and effort to take this further).
5. You are fixed on "main terms" (yahooooooooooo!!!!!!!). This means that you have agreed all the main points - but is this time to start popping the champagne? No you are still only 90 percent there.
6. Main terms subjects are lifted (Yahoo.!!!!!!!!!!!!!!!!!) - 98 percent (you still have the charterparty to negotiate!)
7. Fixed clean - now you can relax - the deal is complete - well almost anyway. Even when you are fixed clean there is a 1 percent chance that the shipment will not happen. Force Majeur, counterparties walking away from contracts, ships sinking, companies going bankrupt, collissions etc etc - all can happen.
- 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 © 2009-17 by Virtualshipbroker