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Thursday, September 9, 2010

Shipbrokers and the law

I am consulting for a trading company. Part of my job is to help negotiate but also a huge aspect is to educate the chartering person so that one day he can fly alone. This process can take years because their is alot to learn. I am still learning and I still have a mentor to help me with the occassional thing that needs clarification (yes even VS continues to learn).

Last week we were discussing recaps and charterparties. The discussion made me realise that many new people to shipping do not realise the significance of every paragraph, every word, every full stop, every comma and every verbal conversation that takes place during a formal negotiation (offers, counter offers etc)

The brokers job is to account for all these aspects of the comminucation process. That is why one needs to be organised and also to have an understanding that just about everything CAN be significant. Not ALWAYS significant.....but sometimes.

No need to remind those that have been around for a while that many things can and will go wrong during the course of a day. When they go horribly wrong things get ugly very quickly. And guess what? if there is an area of 'legal contention' highly paid lawyers will be sifting through the brokers notes and emails looking for 'negligent' work in the hope of pushing responsibility out of the laps of their clients and into yours.

Moral here is

DURING A FORMAL NEGOTIATION
- know your stuff
- keep good records
- never assume that you can change things / omit things / add things without checking and reconfirming
- always get your principals to check your work and sign of on it (through the process)
- have professional indemity insurance


Onwards and Upwards
The Virtual Shipbroker

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