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

Great news from some ex students

This from two close friends of the blog

I have changed some details to protect the identities - lots of people read this blog you know!

Quote

VS/SA

 

I hope you have been doing great.

 

It is just to let you know that last month I started as a junior broker at (name withheld but one of the larger firms) European dry cargo desk. This is the opportunity I have been fighting for. This would not have been possible without having kept fresh in my mind what I read from your e-books and learned from your great advice; therefore, I thank you.

 

Notwithstanding getting this opportunity was quite a challenge in itself, the real challenge starts now. Therefore, what I have learned from you will remain of great help and guide me forward.

Once again, thank you.

Best regards,

SA

unquote

and

quote


VS/NL

 

Hi VS! Hope all is well. So it has been almost a year since I have ended the VS course and I figured I would just let you know where I am at.

If you recall, I was able to enter the industry by getting an internship at (name with held but one of the worlds largest shipbroking firms). Well, that went well and was a great experience, but it ended up being a dead end. I No bitterness as I was fully aware some of these shops work in political ways, so when it came time to move on, I did.

I had a little bit of difficulty re-entering the industry once I left. It took some time but I barked up every single door until two great opportunities came my way.  Both offers were about equal, but I decided that I would take up the role with (name with held but one of the biggies). There were many reasons but the primary reason was that I believe to have found a mentorship type relationship with the individual who hired me.  I hope I made the right decision but I will only know in a few months. 

 

And all of this wouldn’t be possible if I hadn’t taking your course. Thanks for everything VS. I hope to be fixing soon. So be ready to receive another email once I get my first fixture.

Regards,

NL

 

unquote

 

Two very wise dudes on the path to shipping greatness....and very nice people too!

 

Those emails make this blog worthwhile

 

Yours

the Virtual Shipbroker