Shipping Salaries (a good question)

From a close friend of the blog (ad a new entrant)

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Hello VS,

I was just wondering, if a broker's earning potential is influenced by the country he is working in. If i remember correctly, a broker's total income (base + bonus. Correct me if im wrong) is, in general 1/3 of the commission brought in by him. If that's the case, wouldn't it be better for a broker to work from a place with a relatively low cost of living? 

Thanks,

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A good question. And generally you are correct. But there tends to be two salary rates in many developing nations. One for 'expats' and one for 'locals'. Certainly for an expat being able to earn 'western' dollars while living in a developing country is very attractive. For more established locals they too will also (probably a bit slower) start hitting pay dirt after a while but this is sometimes no always so easy. (Entry level wages for locals tends to be at local rates)

The good news for 'locals' is that this disparity is closing over the last 5 or 6 years.

Finally - probably the best way to answer your question is with a simple yes. The entire industry uses a common currency (USD) - so if you live in a developing nation with a currency that is valued much lower than the USD - when you convert you are a king!....The opposite is also the case. Currency values play an important role in the wealth of shipping companies and employees alike.

great question

VS