Awesome

Received and email from a friend of the blog

quote

VS / ...........

Tks so much for your help, i've got a job as a trainee shipbroker and have gone through the cp admin and post fixture now I'm officially a shipbroker and have since fixed my first 4 fixtures.

Just wanted to let you know how much you've helped me and I wouldn't be so successful without your help back then.

When my boss actually asked me how I knew so much about chartering when i just started, I just laughed and told him to refer to virtual shipbroker.

unqte

SLAM DUNK BABY!

Yours

VS

A sad week

Our thoughts are with the Nation of Norway. A nation close to my heart in many ways. A proud and fair people...........they deserves better.

+++

On a lesser note

RIP USD! (for the time being anyway)

My books are 20 percent cheaper now then they were when they were written all due to your devaluation against most of the worlds economies.

So it was time to cut my losses. I have taken the plunge and now all my books are for sale in Euro's (at the equivalent prices).

Its a crazy economic environment out there and who knows whats in store for most of the worlds leading currencies. Just heard a fantastic speech from the French head of the IMF Christine Lagarde and she describes how the worlds growth is very patchy and disjointed at the moment. A juggling act that threatens stability should a few elements fail to fall in line.

Good SUSTAINABLE eeconomic growth across all the worlds regions is what we need.  

VS

A real example of a difficult client

(if anyone has an example of a difficult client send me the deatils and I'll post it....(change the names / places etc so you dont get shot!)

Now mine

I'll give you a condensed version

Principal is a shipowner and we have a small contract. But alas I really represent the charterer because that is where the power is (eventhough the shipowner is paying my commission).

The shipowners is doing very well from this contract but the charterer is asking for some flexibility that is technically out of the scope of the contract. There are production issues and the charterer needs some laycans to be adjusted.

The shipowner in question can sometime be a bit shortsighted and does not like to change anything from the original contract - even if the changes are not necessarily bad. He just doesn't like change. So we have been going back and forward, with raised voices, and the often reminder that he is paying my commissions...

Eventually things got sorted, and sure enough all is ok but THIS client always gets his pound of flesh.

I also win because he realises that this is a great paying client and that the charterer has my trust. The shipowner is paying my commissions BUT this charterer always chooses which broker to use - ME! WAHOO!!!!!!.

That's actually a very interesting point............who pays commissions? The shipowner or the charterer? The answer is not always as straightforward as it appears on the surface.

Stick around and I'll explain in another post

Turn a negative into a positive

Shipbrokers are in the business of providing a service and with that comes the usual ups and downs of dealing with people with varying needs and personalities.

I want to relay a common situation that I have become increasingly good at dealing with. THE DIFFICULT CLIENT!

Maybe if you had good ships I could find you a cargo!

Once upon a time, if a client seemed unreasonable for whatever reason - I took it personally. This would then manifest in negative thoughts about both the client and my ability to deliver. Here is what I do now. If a client is difficult and I mean UNREASONABLY difficult - i see this as a great opportunity. I am talking about the irrational client. The one where the PROBLEM was not your fault but somehow you have ended up taking some kind of blame.

Heres the thing. I love it when I get blamed for something that is irrational...why? Because in the cold light of day, when the sea's have calmed and even the most emotional of clients has calmed down they experience another raw emotion...GUILT! And guilt, if managed properly, can be worth alot of money. The payback may not be immediate but mark my words a broker is often on the receiving end of a guilt deal, from a principal who regularly flies of the handle with little or no cause.

So my advice with difficult clients is NOT to fight fire with fire. Act rational and measured. Don't let them walk over you - but don't mirror their behaviour either. Find that middle ground that will have you looking good and build a relationship that will stand the test of time.

Now thats good broking

Cheers
VS

A tip for shipbrokers and shipowners

Ok - in the spirit of the Tradewinds article here is a tip for shipbrokers and shipowners when dealing with SOME charterers. Not all charterers mind you. This post does not refer to experienced charterers but rather the 'less than experienced' kind.

Many importers and exporters have no idea when it comes to chartering. They may bluff a little but truth is they just don't get it - this despite spending millions on shipping. These types of charterers include mining companies, agri business's, many trading companies, importers and the like.

They think (wrongly) that organising a bulk ship is like booking in a shipping container. How hard can it be... right?

Anyway - these are also the guys that many shipbrokers and shipowners fail to understand properly and this means lost opportunities. (Ignorance is a service providers best friend)

Many shipping people just can't help themselves when it comes to jargon. The quickest way to turn off a potential client is to start using terms like 'shinc', shex', 'disponent owners' etc etc. Many customers do not even realise that they are called 'charterers' in shipping speak.

So rule 1....know who you are speaking too and use appropriate language. Dumb it down. Instead of saying SHINC explain that 'the port never sleeps'. Instead of saying 'charterer' - use what how they see themselves ie either as an EXPORTER or IMPORTER. Instead of using 'charterparty' call it a 'shipping contract'.

Those kind of things go along way. Its called empathy! In my travels I organise information lunches where I would spend 1 hours talking about shipping jargon. Make it fun (over a beer and wine) explain concepts, terms and even tell them how the process works, including all the players from shipagents through to stevedores. When you open up this WORLD to non shipping people - they get hooked and you inturn hook a customer.

Rule 2. Depending on the situation don't always call yourself a broker or a shipowners. To many mining companies I refer to myself simply as a 'shipping company' or a 'shipping consultant'. The term 'broker' conjures 'commissions' and 'people of ill repute' even in Freuds day. Use when appropriate. Shipowners you should be pitching yourselves as JV business partners helping 'clients' (not charterers) build new markets. At the end of the day the shipping component can make up 15-30 percent of a clients 'landed costs'. If this isn't fodder to build a 'business relationship' then I don't know what is.

So there you have it - one for the other side (my side).

VS

This post from 4 months ago didnt get any recognition (from me)

And it deserved more!

Great post

Crowsnest said...


Dear VS, stumbled across this blog whilst googling 'address commission' and thought 'wow, now why didnt i think of doing that!'. I intend to be a regular visitor and poster!

regarding the question of timecharter versus voyage, there is no doubt that the timecharter is potentially 'leaving money on the table' - which is what permits the role of Operator who will timecharter ships and fix business on voyage and hope to make some buckaroos in the middle.


As has been mentioned above, the key element is the amount of risk involved. The voyage charterer may earn what appears to be a big juicy freight but gets penalised by rain and bad weather whilst the timecharterer just wakes up every morning to another day's hire in the bank!


The voyage charterer must pay very close attention to cash flow - his ship may be waiting one month to load yet he will only receive the freight after loading completed, and the demurrage sometime thereafter. Meanwhile he must pay hire every 15 days to the owner from whom he has timechartered the vessel - not to mention having to pay hire in advance and a very substantial lumpsum for the bunkers upon taking delivery.


A voyage charterer must have a keen understanding of all operational aspects of the trade he is involved in. This means having his own team of in-house experts and reliable locals on the ground. The Owner who deals only in timechartering out his ships can operate with just a broker and an accountant and has plenty of time on his hands to work out the best moment to buy or sell another ship.


There are also the financial animals (such as publicly quoted companies on Nasdaq) who buy ships against long term period timecharter contracts - they have little interest in the daily excitement of moving cargoes around the globe. They just want to see a good (safe) return on capital. A period timecharter (to a first class charterer) is a bankable asset.

and so on.......personally I prefer voyage business because it allows the broker to really exercise his profession and bring his skills to bear in a way which will enhance his principal's profit expectations. If we brokers just act as post boxes then our profession (like the physical postbox) is doomed to extinction !
keep up the good work VS


End qte

Great work!

My work is done - well almost!

Massive update below - The Virtual shipbrokers real identity revealed!

++

I have reached the pinnacle of my aspirations. First I can count Alain de Botton as a reader of the blog (tick) and NOW I can finally say that I have had an article dedicated to ME in none other than "Tradewinds" - the worlds number one shipping newspaper.

Here is the article from last weeks (20/05/2011) paper (notice the last line)


Quote


Blog reveals Achilles heel of shipowners


Hardcopy PDF

On the Watch has stumbled upon a frankly worded blog that offers some honest insights into an opaque business: shipbroking.

One recent entry on “The Virtual Shipbroker” (http://virtualshipbroker.blogspot.com) claims that when it comes to dealings with shipowners, “flattery will get you everywhere”.

The wisely anonymous scribbler claims to have recently done some consultancy work for a commodity exporter that involved running a tender and successfully negotiating the freight rate down by over $5 (generating a total saving of around $200,000).

The client was “flabbergasted” at this amazing feat given the owner had not intended to budge an inch.
However, our blogger turns out to have been an owner himself for many years, “so I know how they think”.

Then comes the juicy stuff where he details the must-know facts.

Firstly, shipowners “like to be flattered. Tell them that they have been chosen specifically and that charterers have been keen to fix with them for a long time. Massage the ego. [This is] standard across all industries!”

Next, “shipowners and ship operating is extremely competitive. Therefore they are always looking for new business. Promise the world — tell them that this is ongoing biz for the right owner!”

Thirdly, “find out who they compete with a lot and tell them that they are $2 cheaper! So if Shipowner X is always competing with shipowner Y in many markets, then play up to this. By telling them that their mortal competitive enemy is $2 cheaper, then they will surely sharpen their pencils. The other thing is this: shipowners and freight traders find comfort in numbers. If they hear that three or four other reputable shipowners are also offering on your business at these cheap rates, then somehow they can justify this internally. So play up to that! It’s not lying — it’s poker”.

So there you have it. The art of shipbroking in a nutshell. But lest our blogger be accused of partiality, he wisely wraps up with: “This post is to give one back for all the unsuspecting charterers out there who have been flummoxed by the super-clever shipowners. Sorry shipowners — next time I will let you in on a few secrets into what motivates exporters and importers.”

On the Watch has a gut feeling this anonymous broker is none other than... but you’ll have to wait until next week to find out.

Unquote

Haha - Nice try Tradewinds - trying to increase circulation through bating the reader that my true identity will be revealed the next week. Well that time has actually come (next week is here) and sure enough nadda...I am still free to walk the halls of the baltic without being mobbed by sycophants and ladies of otherwise good repute.

I actually offered my services to Tradewinds (6 months ago) as a freelance colour writer but haven't heard back. If you think that VS should write irreverent articles for Tradewinds then send a email to the editor suggesting same. Go on I dare you!

Yours
VS

(update - The Virtual shipbrokers real identity is Nick van der Hoeven) Linking with me!

Im still here - don't worry

You know how after working so hard on a project for a long period of time there comes a moment when you say 'I need a break'. It kind of creeps up on you like the flu. It reminds me of my time studying full time at University. Come the end of year, exams out of the way - you don't want to look at a book, pen or computer for 2 months. We need these breaks!

I have been blown away by the continued interest in the blog whilst taking this sabbatical. I check my emails every 2-3 days and sure enough the comments keep coming, the books keep selling and surprisingly my google analytics say that the readership numbers havent dropped at all. This is surprising because bloggers need to keep engaging their readers or the readers will get up and leave.

I think this is testament to a few things

1. There is so much 'content' on the blog that people can keep coming back and learning something new everytime. I tried to make a post every few days and I also tried to make each post interesting.
2. The general interest in shipbroking and chartering keeps growing.
3. There is no other site that tells it like it is....most other shipping websites are run by named people who have an interest in the status quo. They have reputations that involve not upsetting people. I on the other hand are anonymous and therefore provide unbiased views on the business.

A big thank you and HELLO to the new followers. Thanks for taking the plunge to show support for the blog.


To those of you who have sent me private messages checking on my wellbeing - many thanks. Im just chilling, laying low and enjoying myself on a few other projects.

To the person who offered USD 10k to have me fly out for a weekend of tutoring and a game of golf. Thanks - maybe down the track.

This blog aint going nowhere and I intend to add to it and develop it moving forward - maybe at a slower pace than previous. Blogs last forever in this modern word.....its a footprint. Probably last longer than all of us. Respect...

Geez - I should write when im feeling nostalgic.

Sincere thanks to all for your continued support

Keep Rocking

The Virtual Shipbroker