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

 

An answer for Ben!

Ben has left a new comment on your post "Inside Ship broking and Ship broker Fast Track.":

Hi VS,

Wonderful website and book. Congratulations! I have finished your book in a day and it has been a pleasure.

I have a question on a typical day for a shipbroker. While I understand every company organises their staff differently, I would like your opinion to reconcile my observations with what I have gathered from your book.

In the latter chapter on 'Orlando', it appears to imply a shipbroker's main task is a fixing machine. During my interview with company B, I saw how fixing a deal is just the start of a long process of servicing the clients.

The shipbrokers (not the operation executive) were in close contact with the charterers to resolve problems such as delays, cargo problems, and ensuring the goods arrive in good condition.

Have the roles of operations and shipbrokers become convergent? Or does the job of the shipbroker continues until the goods get delivered?

Thank you!
Ben

Posted by Ben to The Virtual Shipbrokers Books and Information at January 27, 2013 at 6:05 AM

Unquote

Ben - thanks for a great question. For most of my career as a shipbroker (remember i was also a shipowner and a charterer) I pretty much handled everything from fixing the deals right down to invoicing for payment. This also included doing 90 pct of the postfixture work along the way.

infact for most of the shipbroking fraternity they do not have the luxury of a 'post fixture' department. Most shops are quintessential small business's employing 2 or 3 brokers and one admin staff. So for many doing a full service job is necessity rather than choice. The middle to larger shipbroking companies do have extra staff to help with post fixture and this can be a godsend when time are busy.

The interesting point though is that I know many brokers who work for larger firms who refuse to hand over the post fixture duties to designated post fixture staff. This can be for a variety of reasons but suffice to say that if you have a usd 1 million dollar per year client in your pocket you are loathed to pass any responsibility to anyone else.

So i reckon the circumstances should dictate the systems. It also depends on the client (they may be happy dealing with different people) and depends alot on the quality of the post fix and operational staff. Who would you prefer trying to sort out a complicated stowage problem - a young aggressive dude with nice hair (read shipbroker) or a experienced old master mariner with no hair (postfix boss)?

Pretty easy answer that one!

Thanks for stopping by

yours
VS

Be kind to shipowners week!

A client recently said to me that one of his trusty shipowners seems to be in a bad mood recently and wondered if he (the charterer) may have done something to upset the gentleman.

Possibly.....was my reply. Shipping people are historically a grumpy bunch. long hours, stressful negotiations, deals falling over at the last moment, brokers not returning phone calls - maketh for a grumpieth shipowner.

Having said that I said a far more likely reason for a less than happy shipowner is simple - the CRAP state of the markets. Rates are so low just about every deal is a loser...which isn't good for most.

I'm not saying that no shipowners are happy - I am just pointing out that in historically low markets it would seem logical that the losers are the shipowners! Just like in historically high markets charterers would seem to be the losers..........Losers in this game we call dry bulk shipping.

But alas things in shipping are never that cut and dry. Shipowners with high costs and high debt and large new building order books have every right to be stressed. Their are shipowners however who have managed assets in a better way and infact now have huge competitive advantages with low costs, low debt and low new building exposure. The truth for the majority is probably somewhere in between...

One thing for sure is that the longer the markets stay in the doldrums - the less likely you will hear a cheery shipowner voice on the other side of the phone.

Good time to to be a commodity exporter or importer. As a percentage of the overall landed price of most bulk commodities - freight now plays less of a role (in percentage terms). There was a time not too long ago that the freight price for many commodities exceeded the commodity price (in certain markets)

So I reckon we should have the inaugural "be kind to a shipowner week" starting this Monday....

Maybe take your local shipowner pout for a boozy lunch or a game of golf. Sounds like a good excuse to celebrate 2013 to me...

Keep rocking
the Virtual Shipbroker

Happy New Year All

Happy Christian New Year to all the readers. What have i been upto over the last 3 weeks?

In no particular order

• Eating
• Drinking
• Recovering
• Exercising
• Fixing Ships (one or two)
• Helping people with Cover letters and CV's (many over the Christmas and new year period)
• Selling Books
• Lecturing
• Renovating/Building my house (yes I am helping)
• Short Vacation to find some elusive 'SUN"
• Saw 2 Rock Bands (Its true that I try and feel young even though i am not anymore)
• Played football with my son
• Watched my daughter try and do the splits (ballet)
• Wined and dined my wife

Thats about it........not a bad list...

And it means I am ready and refreshed for a HUGE 2013. Big things expected for the blog. I would like to thank the continued support of so many readers (over 10,000 hits per month) from around the world. Books sold into more than 70 countries and the consultancy business continues to grow providing many of you with the expertise needed to make your business a winner. Some of the client successes stories have been extraordinary.

My promise is that for 2013 I will spend a little more time writing blog posts. Shipping is so large and diverse that there are literally thousands of topics that can be covered. The problem last year was that i was so busy. This year I have deliberately allowed more room in my schedule to get the posts back on track. I will also be releasing a new book (the first in a few years) that will flesh out many of the topics I have covered in the blog - plus a few surprises. I am glad I am publishing this because it will make me keep my promise. if you do not see anything from me (by way of a book) then start hounding me!

Apart from that I want to connect a bit better with the readers so i will be looking at how better to do this. If any of you have any ideas in this regard drop me a line.

interestingly I have had a few offers to buy this blog. I rank very high on google for just about every shipping term....so people are interested. But i dont wanna lose control. You will notice that I am one of the few successful blogs that doesnt have any form of external advertising - mostly because as an avid reader of other blog - advertising annoys the hell out me.

Anywayz - I am here to stay - like it or not and i sincerely hope you all keep reading. Drop me a line and say hello occassionally, and keep replying to posts that may interest you. Also if you havent as yet maybe become a follower of the blog. All those things keep me motivated to keep providing you with content that you deserve.

Love you (man hug)

awkward

The Virtual Shipbroker

The worlds top ship broking firms

So who are the worlds best shipbroking firms? This is a subjective question and in my oinion depends on a number of different criteria. I have my own views but guess what? lloyds List (the great shipping newspaper) decided to have a crack at this thankless task earlier this year (2012). I agree with some on the list but I disagree with others........but then again they havent devulged criteria - so its meant to be fun anyway.

 

This would appear to me to be the perfect segway into 2013.....

 

Here is the what Lloyds had to say  

 

quote

Brokers by the dozen

 

It’s a tough job but someone has got to do it – here are our top 12 shipbroking companies

 

PUT simply, shipbroking is not as easy it used to be. The newbuilding boom might have seen a huge surge in the number of ships on the water needing to be chartered and sold but it has also caused a dramatic plunge in freight rates and subsequently brokers’ commissions. We have expanded our list this year to create a broker’s dozen, which is not to be confused with a baker’s dozen.

1. Clarksons – Andi Case
Regarded across the industry as the biggest shipbroker, Clarksons and its chief executive Andi Case have retained their top spot on our list in 2012. Despite the departure of the brand’s most famous spokesman Martin Stopford in May, the broker’s dominance in the global market remains due to its head count, geographical spread and coverage across all sectors.

2. RS Platou – Peter Anker
There might not have been much movement on RS Platou’s previous plans to go public but the Peter Anker-led Norwegian broking and financial services group continues to strengthen its portfolio. Positioned well for the gas and offshore boom, the group has expanded into key growth markets and building its research and equity offering.

3. Braemar Shipping Services – James Kidwell
A change at the top for Braemar Shipping Services this year, with the London-listed group now headed up by chief executive James Kidwell – formally the financial director. Former head Alan Marsh has returned to the sale and purchase desk, while the broking business is now being run by Sebastian Davenport-Thomas.

4. ICAP Shipping – Henry Liddell
Seeing the most upward movement on our list this year is ICAP Shipping, the maritime division of the world’s largest interdealer broker, due to its expansion into emerging markets through acquisitions. In 2012, chief executive Henry Liddell has led two major purchases – Singapore-based tanker specialists Island Shipbrokers and CTI Shipbrokers in India and Dubai, which focus in dry bulk , tankers, sale and purchase and offshore. Today, global staff numbers total almost 230, including 73 acquired through the two deals.

5. SSY – John Welham
Low-profile Simpson Spence & Young continues to offer strong broking and research services, particularly in its specialist area of dry bulk. SSY has made a name for itself as the go-to source for port congestion information, with its capesize and panamax data much sought after.

6. Maersk Broker – Jørn Steen Nielsen
Sticking in the middle of our list this year is Copenhagen-headquartered Maersk Broker. Despite namesake Maersk Line opening up container business to rival brokers Clarksons and Howe Robinson last year, it still has gravitas in the box broking sector as well as dry bulk and tankers.

7. Poten & Partners - Michael Tusiani
Well-positioned for the North America oil and gas boom is New York-headquartered Poten & Partners, headed up by Michael Tusiani, which has moved up our list this year. The company has built up a reputation for top quality broking and research on the energy sectors, particularly with regard to tankers and gas carriers. The employee-owned company known for its leading presence in the asphalt market.

8. Gibson – Nigel Richardson
Managing director Nigel Richardson continues to head up the private broking arm of publicly-listed energy services provider Hunting. Strong on tankers, specialist cargoes and gas, Gibson is on speed-dial for many people in the shipping industry looking for energy expertise. Its strong research team, sale and purchase desk and dry bulk business compliment

9. BRS – Tim Jones
Barry Rogliano Salles chief executive Tim Jones looks after almost 200 employees across its headquarters in France as well as other offices around the world. Well-positioned, the Neuilly-based company works across the eight main areas of broking – newbuilding, offshore, sale and purchase, dry bulk, containerships, tankers, chemicals and gas.

10. ACM Shipping – Johnny Plumbe and James Gundy
Johnny Plumbe has recently passed on the chief executive baton to James Gundy, who has been with London-listed ACM for 18 years and has headed up its very large crude carrier desk. Plumbe has not left the building though, and is now executive chairman, ensuring that his 37 years of broking experience is still put to good use.

11. McQuilling Partners – John Schmidt
Just a look at the US-headquartered McQuilling group’s office locations hints at where the broking services group sees growth opportunities – its Singapore-based business has rapidly grown over the last two years and four of its nine global offices are located in Central or South America, including Caracas, Lima, Mexico City and Rio de Janeiro.

12. Howe Robinson – Daniel Lewis & Peter Kerr Dineen
Maintaining a low profile is dry bulk and container specialist Howe Robinson. Well known for their boxship expertise and also knowledge in the grains market, this global company has a great reputation.

Unquote

Article here http://www.lloydslist.com/ll/news/top100/brokers/


Yours
The Virtual Shipbroker

(VS and Andy Jamison are the pen names, and creation, of ex shipbroker Nick van der Hoeven)

Happy Festive Season to All

To all the supporters of the blog - here is wishing you all a Merry Christmas, a safe New year and best wishes for 2013.

Lets hope I am not 12 hours too early and we all survive armaggedon. I am not panicking but as a precaution I have moved myself and the family to a small French Village, we have stocked up on baked beans, candles and batteries. I started building an arc but my wife reminded me that I have trouble changing a lightbulb - so I was being a little presumptious.

Im relaxed leading upto the 21st of DEC.

It has been a interesting year for shippng - low markets, consolidation, world recessions.....and probably more of the same for 2013. But guess what??? Most of us are still here. The Blog readership continues to grow, and I have a few exciting projects that you will be made aware of as the new year unfolds.

Thanks again to everyone

Time to PARTY!

The Virtual Shipbroker

This weeks market

 

Dec 13 (Reuters) - The Baltic Exchange's main sea freight
index, which tracks rates for ships carrying dry
commodities, fell on Thursday as capesize rates extended a drop
the previous day.

The overall index, which reflects daily freight market
prices for capesize, panamax, supramax and handysize dry bulk
transport vessels, fell 3.27 percent to 799 points.

The Baltic's capesize index fell 2.47 percent to
1,407 points.

Average daily earnings for capesizes, which usually
transport 150,000 tonne cargoes such as iron ore and coal, were
down $731 at $6,893.

Capesize rates plunged on Wednesday by about 12.4 percent,
driven by a dip in transatlantic round voyage rates. Vessels
ballasting into the Atlantic have been putting severe pressure
on round voyage rates.

Iron ore prices reached their highest since July as
steelmakers replenish stocks in the world's top consumer, China,
but weak steel prices are likely to limit gains in the raw
material.

Iron ore shipments account for about a third of seaborne
volumes on the larger capesize vessels, and brokers said that
price developments remained a key factor for dry freight.

The panamax index fell 2.57 percent, with average
daily earnings down $181 at $6,919.

The Pacific market has been weak for panamax vessels, Andy
Jamison, shipping blogger and owner of the Virtual Shipbroker,
said. 'Shipowners face uncertain questions with regard to where
they should ballast their ships,' Jamison said.

Average daily earnings for handysize ships were down $14
$6,542, while those of supramax ships were down $27 at $7,795.

(Reporting by NR Sethuraman in Bangalore; editing by Jane
Baird)