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Sunday, July 31, 2011

Who pays commission?

Pasted from a previous thread example-of-difficult-client


The Virtual Shipbroker said...

I am often heard to mutter the word GOOSE when talking about principals and competing brokers but in a slightly different context to what Suraz alludes too above (but thats a whole different story).

But yes Suraz - at the end of the day the shipowner may be the one writing the checks but it is the charterer who actually pays the "price" of a commission. They pay the price in the form of a higher freight rate or higher TC rate charged by the shipowner. Its factored in the cost. So if a shipowner cries foul about paying your brokerage remind them that surely they allowed for 1.25 percent in their calculations before they quoted on the business! One thing is for sure - nothing in shipping is for FREE - the idea that shipowners would pay a brokerage (without somehow getting it back) is naive.




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