a shipbroker 24 hours after learning of the BDI's rapid recent decline. Giddy Up!
At Virtual Shipbroker we dont condone this type of behaviour.
Tuesday, December 15, 2009
Friday, December 11, 2009
Late for laycan? Charterers happy - why?
In response to the previous thread find my answer below
Hi guys
Good answers everyone.
Unfortunatley the shipowners cannot walk away if they are missing cancelling. Only the charterers can. So 99 percent of the time the owners "dont want to be late". They lose all power.
Plus if the market does rise - why would the charterer not accept the ship a little late? 99 percent of the time they will.
In the above situation the charterers could be happy for a number of reasons...
1. The market has dropped. But alas - this is not enough. For this to be good for the charterers we need the market to drop but we also need another ship! On many occassions when a ship does miss cnacelling - there are no alternative ships due to the prompt nature of the situation.
2. Maybe the charterer has had trouble accumulating cargo at the loadport. There may also be congestion at the loadport...for all these reasons it is advantageous for the charterer is the ship runs late. They will still accept the ship but they will limit possible demurrage claims due to making the ship wait before loading.
Hope this makes sense. Any questions just shoot (from the hip)!
Thanks to all for the contributions.
Brgds
VS
Hi guys
Good answers everyone.
Unfortunatley the shipowners cannot walk away if they are missing cancelling. Only the charterers can. So 99 percent of the time the owners "dont want to be late". They lose all power.
Plus if the market does rise - why would the charterer not accept the ship a little late? 99 percent of the time they will.
In the above situation the charterers could be happy for a number of reasons...
1. The market has dropped. But alas - this is not enough. For this to be good for the charterers we need the market to drop but we also need another ship! On many occassions when a ship does miss cnacelling - there are no alternative ships due to the prompt nature of the situation.
2. Maybe the charterer has had trouble accumulating cargo at the loadport. There may also be congestion at the loadport...for all these reasons it is advantageous for the charterer is the ship runs late. They will still accept the ship but they will limit possible demurrage claims due to making the ship wait before loading.
Hope this makes sense. Any questions just shoot (from the hip)!
Thanks to all for the contributions.
Brgds
VS
Thursday, December 10, 2009
Another interactive chartering question!
A laycan is the window of time, allocated by the charterer to the shipowner, for the arrival of a ship.
So if an agreed laycan is 01-10 December then the ship must arrive within these dates in order to avoid a possible penalty.
Consider this:
The ship in question is missing the cancelling date and looks like arriving on the 11th of December. But far from being mad the charterer is very happy...
Why?
Cheers
VS
So if an agreed laycan is 01-10 December then the ship must arrive within these dates in order to avoid a possible penalty.
Consider this:
The ship in question is missing the cancelling date and looks like arriving on the 11th of December. But far from being mad the charterer is very happy...
Why?
Cheers
VS
Thursday, December 3, 2009
Why do many shipowners selectively circulate open positions? Answer...
I have bumper the answer from the previous post so that everyone can read.
Quote
Nice feedback everyone.
Gregocebr, Gary and Varun - all spot on.
The main reason is simple supply and demand.
If a shipowner has 20 ships and 7 of his ships are open over the next month in Singapore / Japan range for example - then he / she would being doing themselves a disservice telling the world that they have 7 ships open around the same time in the same place.
Makes more sense to say you have 2 ships open. That way charterers think there are less ships (supply side economics) to choose from then there actually are. "Shipowners hat" - Less tonnage supply means better bargaining position -means higher price.
(same reason in really low market shipowners layup some vessels. Ie to reduce overall supply in the market and thus keep overall prices high)
And as Gary quite rightly points out - charterers can play the same game. Many charterers have more than one cargo but you would never know. They tell the market there is one cargo, quickly fix one ships and abracadbra 2 days later they take a second ship for what looks like the same requirement. Funny that.
Smart play! If they (charterers) had told the market (shipowners) that there were two open cargo positions that would immediately lessen their bargaining positions because more cargo means more demand(for ships)and thus the propensity for higher freight prices.
That my friends is why brokering is not just about matching open ships to open cargoes.
It is also a huge reason as to why internet trading platforms will only have limited use.
And above all else its a huge reason why shipbrokers need to have close relationships with clients. The best brokers have inside information and protect/circulate that information in ways that lead to more deals now and in the future.
Many thanks for the question and the contributions.
Rgds
VS
Quote
Nice feedback everyone.
Gregocebr, Gary and Varun - all spot on.
The main reason is simple supply and demand.
If a shipowner has 20 ships and 7 of his ships are open over the next month in Singapore / Japan range for example - then he / she would being doing themselves a disservice telling the world that they have 7 ships open around the same time in the same place.
Makes more sense to say you have 2 ships open. That way charterers think there are less ships (supply side economics) to choose from then there actually are. "Shipowners hat" - Less tonnage supply means better bargaining position -means higher price.
(same reason in really low market shipowners layup some vessels. Ie to reduce overall supply in the market and thus keep overall prices high)
And as Gary quite rightly points out - charterers can play the same game. Many charterers have more than one cargo but you would never know. They tell the market there is one cargo, quickly fix one ships and abracadbra 2 days later they take a second ship for what looks like the same requirement. Funny that.
Smart play! If they (charterers) had told the market (shipowners) that there were two open cargo positions that would immediately lessen their bargaining positions because more cargo means more demand(for ships)and thus the propensity for higher freight prices.
That my friends is why brokering is not just about matching open ships to open cargoes.
It is also a huge reason as to why internet trading platforms will only have limited use.
And above all else its a huge reason why shipbrokers need to have close relationships with clients. The best brokers have inside information and protect/circulate that information in ways that lead to more deals now and in the future.
Many thanks for the question and the contributions.
Rgds
VS
Wednesday, December 2, 2009
A good question from a reader
Qte
Dear VS
Why would shipowners not want to open their fleet details to the market? In high BDI days, would this not be an advantage to them, as now they can have many brokers fighting for the business, and they can have a stronger arm to negotiate and get best deal for themselves.
Yours
Zubair
(Amano)
unqte
Good question Zubair
I might leave this one open for any readers to try and answer. Can anyone think of a reason/situation why a shipowner would not want the market to know all his open positions?
Cheers
VS
Dear VS
Why would shipowners not want to open their fleet details to the market? In high BDI days, would this not be an advantage to them, as now they can have many brokers fighting for the business, and they can have a stronger arm to negotiate and get best deal for themselves.
Yours
Zubair
(Amano)
unqte
Good question Zubair
I might leave this one open for any readers to try and answer. Can anyone think of a reason/situation why a shipowner would not want the market to know all his open positions?
Cheers
VS
Apologies
Every 6 months I will write a new post apologizing for my poor spelling throughout this blog.
I write and I press without checking.....
To all concerned - I apologize for my spelling.
Regards
VS
I write and I press without checking.....
To all concerned - I apologize for my spelling.
Regards
VS
Tuesday, December 1, 2009
Another Legal Question
Peter asks
"VS a friend of mine returned home in the evening to find his wife in bed with the neighbour. When he files for divorce can she still claim half his assets?"
Great question Peter - unfortunatley, unless the bed in question is a water bed in the shape of the "ss minow" (Gilligans Island) the topic is beyond the scope of this blog.
However...Please send our collective condolensces to your friend during this tough time.
Solemnly
VS
"VS a friend of mine returned home in the evening to find his wife in bed with the neighbour. When he files for divorce can she still claim half his assets?"
Great question Peter - unfortunatley, unless the bed in question is a water bed in the shape of the "ss minow" (Gilligans Island) the topic is beyond the scope of this blog.
However...Please send our collective condolensces to your friend during this tough time.
Solemnly
VS
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