Dry Cargo Markets have been pretty crap for a long time and this means a drop in revenues. I know of at least two large shipbroking companies where only half of their brokers are currently breaking even. The strange thing is that although revenues are down salaries remain firm because finding good, hard working shipbrokers is difficult.
So gimme some numbers vs!
Well in London for example I would guess there are many brokers on around $100,000 pounds a year mark in salary and would be lucky to be bringing in $200,000 in revenue. When you take into account the extra costs a large brokering shop has in terms of rent, insurances, communicatrions, travel etc then profits are slim. In the USA we are looking at similar numbers.
In Singapore where shipbrokers still push for expat packages it is not uncommon to see people earning USD 30k per month (yes that's right) and only making USD 20k per month...so many brokers are infact costing the company money.
I am not sure how long this can last. These situations rely on 'fixing machines' to help prop up the rest of the office.
IMO a current day 'fixing machine' is fixing anything more than USD 500k in any given year. Anything above 300k is a star performer and anything below that is treading water.
All we need is a modest upswing and all this can change....we are at such a low base that a USD 5,000 per day change in the price of chartering a ship can increase revenues by 25 pct.
That's my take
- The Virtual Shipbroker
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