Who is?

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

Thursday, February 21, 2013

What happens when a ship is late?

This is quite an interesting topic in the world of tramp (dry bulk) shipping because you know what ?? Ships are always dam late! Arghhhhhhhhh...

Being late in itself is ok. I am occasionally fashionably late to dinner parties - its expected. But in shipping the world of fashion (unless you are a broker from Scandinavia) has very little to do with anything.

Just on that topic - has anyone ever noticed when surfing the websites of various shipbroking firms - the ones from Scandinavia and parts of continental Europe with accompanying photos of the employees, look to have been shot by HELLO magazine. Hair and make up (tick), Tilt of head (tick) - I dont wanna name names but you know who you are!

A bit like this



Perhaps a more accurate representation would be


Director, Senior Vice President, Partner (owner of stilettos - Trixi)



Anyway

When ships are late this can cause a myriad of problems. Charterers have a laycan (a window for a ship to be delivered) for a reason. And this reason is usually because it says so in the sales contract between the buyer and the seller. So if the ship is late not only is the shipping contract put at risk but so is the sales contract.

Organising the cargo for a ship is not easy. One needs to arrange for the cargo to arrive at the port just in time (JIT) for the ship to arrive, then stevedores need to be arranged, as do the services of other ports infrastructure groups like grain elevators and the like. Permits need to arranged and all the paperwork must also be ticked off. So you can see if a ship is late - quite a few people have quite a lot to lose.

This issue is exacerbated in a very busy port that handles many ships in one day. Imagine then if this port experiences delays due to an accident or bad weather or a strike and then all of a sudden this 'late ship' has to then wait in line for 5 days before it gets loaded....



At the peak of the markets this five day wait could cost someone a million smackeroonies! not so much these days more like 50 grand....but that would still feed a small American village.

So how does this 'problem' play out in the real life cut and thrust of everyday shipping. How do charterers and shipowners alike navigate this thorny issue when it appears apparent that a ship will be late?

That will be my next post....

Yours
VS

3 comments:

  1. Interesting... It might also be interesting to know what Shipbrokers can do mitigate the impacts of such unforseeable delays on the charterers.

    Looking forward to your next post.

    ReplyDelete
  2. pls advise difference between laytime & laydays

    ReplyDelete