Its sometimes a little lonely reading (and writing) a blog so occasionally I check out where my audience is coming from. I occasionally let you guys know the details just so that you know you are not alone as VS avid readers. This month was a good month (readership continues to grow) and had approx. 12,000 individual page views. So who's reading?
Last Months Top 10 United States 1959 United Kingdom 1721 Singapore 1442 India 778 Greece 484 Germany 392 Australia 331 France 261 Spain 256 Turkey 253
France and Spain readership seems to be growing and for the first time they make the top 10. Usually Denmark and Norway come in between 6 and 8 but alas not this month. Must be the warmer weather.
Otherwise all the top maritime nations are there except off course our east Asian friends Japan, South Korea and China who have never been huge readers of these types of blogs (including financial ones too) for various cultural reasons.
I will take readers from anywhere - even North Korea or from my home town the tiny Himalayan Kingdom of Bhutan. I have been speaking to the king about opening a local branch of the Institute of Shipbrokers possibly in one of the local Monastery's that isn't getting much use. But the king quite wisely stated that having a group of shipbrokers regularly attend a monastery is about as likely as the Italian mafia visiting the Vatican....hang on....maybe this could happen...leave it with me.
VS
|
Sunday, June 2, 2013
So who is reading the virtual shipbroker?
Saturday, May 25, 2013
A word on shipbroking Salaries and revenues
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
VS
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
VS
Thursday, May 2, 2013
Market commentary
As many of you know I occasionally provide a bit of market commentary for various market participants and for news agencies like Reuters.
I am currently putting together a report for some clients summing up my thoughts for the remainder of the year.
Thought I would share a few of these observations
Overall the market in my opinion isnt going anywhere too fast or too soon. The biggest stumbling blocks for the shipping industry and pretty large ones. Namely the still large forward order book for new ships which is still outpacing ship scrappings 2 to 1...(in general although this varies a some when we look at specific sizes)
This will change but not just yet..2014 will see closer parity between ships coming in and ships going out!
The other issue is that much of the world is still an economic basket case. Sure Cyprus and Greece have millenia's of great contributions to the world - but in more ways than one it seems that the credit has run out.
And the economic problems in Spain have finally caught up with Barcelona and Real Madrid who have succumbed to the relentless efficiencies of the Germans giants Bayern and Dortmund...WOW 3 NIL at home.....And Messi isnt even Spanish!
Dont get me wrong I love Spain and even intend to live there for a few months next year...and in all honesty and with the greatest regard to my German friends - I dont really want to live there....hang on....good football, fast cars, schnitzel (is this Austrian?) and beer....
Actually a little known fact is that I once did live in Germany...In a place called ULM...between Stuttgart and Munich....3 of the greatest months of my life....but many moons ago...
Then theres America (USA OF) and China - out two superpowers. Mixed reports out of both in terms of the economies....but I reckon things will improve for both....
What does this all mean for the rest of 2013.....treading water...unfortunately...
Keep rocking
VS
I am currently putting together a report for some clients summing up my thoughts for the remainder of the year.
Thought I would share a few of these observations
Overall the market in my opinion isnt going anywhere too fast or too soon. The biggest stumbling blocks for the shipping industry and pretty large ones. Namely the still large forward order book for new ships which is still outpacing ship scrappings 2 to 1...(in general although this varies a some when we look at specific sizes)
This will change but not just yet..2014 will see closer parity between ships coming in and ships going out!
The other issue is that much of the world is still an economic basket case. Sure Cyprus and Greece have millenia's of great contributions to the world - but in more ways than one it seems that the credit has run out.
And the economic problems in Spain have finally caught up with Barcelona and Real Madrid who have succumbed to the relentless efficiencies of the Germans giants Bayern and Dortmund...WOW 3 NIL at home.....And Messi isnt even Spanish!
Dont get me wrong I love Spain and even intend to live there for a few months next year...and in all honesty and with the greatest regard to my German friends - I dont really want to live there....hang on....good football, fast cars, schnitzel (is this Austrian?) and beer....
Actually a little known fact is that I once did live in Germany...In a place called ULM...between Stuttgart and Munich....3 of the greatest months of my life....but many moons ago...
Then theres America (USA OF) and China - out two superpowers. Mixed reports out of both in terms of the economies....but I reckon things will improve for both....
What does this all mean for the rest of 2013.....treading water...unfortunately...
Keep rocking
VS
Tuesday, April 2, 2013
Sign of the times
It made me laugh when a potential new recruit to the industry let me know that many of the largest shipbroking companies require trainees to have a minimum honours degree in something - most likely commerce, trade, law etc.
The funny thing about that is that many of the directors at these companies barely passed high school (not that there is anything wrong with that). You see entry into shipping (chartering) was for hundreds of years the domain of how can i say this without offending??? Ok I can't....Rich kids who were crap at high school.
Rich kids who are smart = Medical Doctor or Lawyer.
Rich kids who are less academic = Shipbroker, Stockbroker, Finance broker etc
(Being academic doesnt necessarily translate into shipping success. Streetsmarts, personablity, and the ability to influence people continue to be he main traits companies look for)
I admit that this old school approach has been changing for 20 or so years.....so requiring a degree, even a higher degree to enter a highly lucrative vocation should not be much of a surprise to anyone....except off course those of us who have enough grey hair to remember when a degree was viewed with suspicion...lol. BTW I have 1 undergrad degree and 2 post grad degrees...so dont shoot the messenger..........
Lots of fun and good luck with your studies
Yours VS
The funny thing about that is that many of the directors at these companies barely passed high school (not that there is anything wrong with that). You see entry into shipping (chartering) was for hundreds of years the domain of how can i say this without offending??? Ok I can't....Rich kids who were crap at high school.
Rich kids who are smart = Medical Doctor or Lawyer.
Rich kids who are less academic = Shipbroker, Stockbroker, Finance broker etc
(Being academic doesnt necessarily translate into shipping success. Streetsmarts, personablity, and the ability to influence people continue to be he main traits companies look for)
I admit that this old school approach has been changing for 20 or so years.....so requiring a degree, even a higher degree to enter a highly lucrative vocation should not be much of a surprise to anyone....except off course those of us who have enough grey hair to remember when a degree was viewed with suspicion...lol. BTW I have 1 undergrad degree and 2 post grad degrees...so dont shoot the messenger..........
Lots of fun and good luck with your studies
Yours VS
General Stuff
With the markets still at historical lows (despite the occasional upward flutter) shipowners and shipyards continue to struggle, some even going out of business.
So what happens to those ships when the companies controlling them go belly up?
They can be scrapped (if they are old), sold if the market permits or ownership is transferred to the financiers who then have the headaches of working out how to generate income with these behemoths of the sea.
The net result is that prices for ships drop (sale prices) and the markets consolidate. Once again the reputable larger companies are picking up bargains left right and center. Reputable shipping pools are being inundated with poorly clients desperate for help..
++
Interesting to see that TMT (today makes tomorrow) head honcho Nobu Su is stepping down after what can only be described as an incredible career. i can remember 10-15 years ago when his name first emerged linked to deals that seemed unbelievable in timing, scale and audacity. What a ride it has been.
And let me be the first to quash those rumours that the Virtual Shipbroker has been personally handpicked by Nabu himself to take over at TMT...
I asked my tarot card guru and he said - "VS my son keepeth doing not much as not much is plenty under the sun"
Wise words...
Yours VS
So what happens to those ships when the companies controlling them go belly up?
They can be scrapped (if they are old), sold if the market permits or ownership is transferred to the financiers who then have the headaches of working out how to generate income with these behemoths of the sea.
The net result is that prices for ships drop (sale prices) and the markets consolidate. Once again the reputable larger companies are picking up bargains left right and center. Reputable shipping pools are being inundated with poorly clients desperate for help..
++
Interesting to see that TMT (today makes tomorrow) head honcho Nobu Su is stepping down after what can only be described as an incredible career. i can remember 10-15 years ago when his name first emerged linked to deals that seemed unbelievable in timing, scale and audacity. What a ride it has been.
And let me be the first to quash those rumours that the Virtual Shipbroker has been personally handpicked by Nabu himself to take over at TMT...
I asked my tarot card guru and he said - "VS my son keepeth doing not much as not much is plenty under the sun"
Wise words...
Yours VS
Monday, March 4, 2013
Disaster - the Ships running late!
Ok - maybe 'disaster' is a slight overreaction. Having said that no-one likes a late ship..
So how does this play out in the real, cut and thrust, take no prisoners world of international shipping?
Charterers first - they need to give as wide a laycan (window for the ship to arrive) as possible. This needs to be negotiated in the sales contract and also with the port authorities and shippers in question. the greater the flexibility the less chance that a late ship will cause problems. Charterers also should insist on regular updates regarding the ships itinerary so that they can plan for the lateness (contingency planning). Sometimes shipowners are economical with the truth when there ship is running late. Charterers need to play hardball and even be in contact with ship agents at the previous ports in order to get a real idea as to the ships itinerary.
Shipowners - Need to be careful not to agree laycans that they know will be tough to meet. When it becomes obvious that a ship will be late - shipowners get scared. very scared....because the charterers now have lots of power. They can make the ship arrive at the port and then cancel the shipment if they so wish. So YES a late ship is ground for cancellation. Nothing worse for a shipowner to have a ship open Spot with no employment and the probability of no quick fix. I have seen ships miss a laycan, get cancelled and then wait 20 days (at 50 k per day thats ONE MILLION bucks) for a new cargo....Not nice!
So this is why you find that some shipowners tend to be economical with the truth when a ship is running late. They will tell you that everything is fine and then at the last moment drop the bomb that an 'unexpected' delay has occurred at the last possible moment and hence the ship is now running late.
They do this because the later it becomes apparent that a ship is running late - the less the time for the charterer to find a substitute vessel....leaving the charterer stuck and the shipowner still with a contract despite there being grounds for cancellation.
So there you have it - when a ship runs late charterers would like to know asap and shipowners just dont wanna tell them! Fun hey?
Shipowners aren't always the bad guys. i have seen charterers use 'selective' information for evil as well.
Your VS
So how does this play out in the real, cut and thrust, take no prisoners world of international shipping?
Charterers first - they need to give as wide a laycan (window for the ship to arrive) as possible. This needs to be negotiated in the sales contract and also with the port authorities and shippers in question. the greater the flexibility the less chance that a late ship will cause problems. Charterers also should insist on regular updates regarding the ships itinerary so that they can plan for the lateness (contingency planning). Sometimes shipowners are economical with the truth when there ship is running late. Charterers need to play hardball and even be in contact with ship agents at the previous ports in order to get a real idea as to the ships itinerary.
Shipowners - Need to be careful not to agree laycans that they know will be tough to meet. When it becomes obvious that a ship will be late - shipowners get scared. very scared....because the charterers now have lots of power. They can make the ship arrive at the port and then cancel the shipment if they so wish. So YES a late ship is ground for cancellation. Nothing worse for a shipowner to have a ship open Spot with no employment and the probability of no quick fix. I have seen ships miss a laycan, get cancelled and then wait 20 days (at 50 k per day thats ONE MILLION bucks) for a new cargo....Not nice!
So this is why you find that some shipowners tend to be economical with the truth when a ship is running late. They will tell you that everything is fine and then at the last moment drop the bomb that an 'unexpected' delay has occurred at the last possible moment and hence the ship is now running late.
They do this because the later it becomes apparent that a ship is running late - the less the time for the charterer to find a substitute vessel....leaving the charterer stuck and the shipowner still with a contract despite there being grounds for cancellation.
So there you have it - when a ship runs late charterers would like to know asap and shipowners just dont wanna tell them! Fun hey?
Shipowners aren't always the bad guys. i have seen charterers use 'selective' information for evil as well.
Your VS
Sunday, March 3, 2013
Saturday, March 2, 2013
By request!
By request
Very Limited Spaces (im not joking either)
THE VIRTUAL SHIPBROKER BLOG PRESENTS
A 2 day professional development course
1st day - Essential Shipbroking and Chartering (Dry Cargo)
2nd day - Fixing Machine - Shipbroking and Chartering Best Practice..
Where: Dubai and London (Venue TBA)
When: May 2013
Who for?
Trainee shipbrokers and operations department staff
Managers already in shipping and chartering to refresh on fundamentals
Ship brokers, owners, charterers, government bodies, lenders and insurers
Shipping Lawyers, Bulk commodity traders, purchasing officers for bulk commodities
Cost - USD 2,000
Expressions of interest to virtualshipbroker@yahoo.com
The Virtual Shipbroker
Very Limited Spaces (im not joking either)
THE VIRTUAL SHIPBROKER BLOG PRESENTS
A 2 day professional development course
1st day - Essential Shipbroking and Chartering (Dry Cargo)
2nd day - Fixing Machine - Shipbroking and Chartering Best Practice..
Where: Dubai and London (Venue TBA)
When: May 2013
Who for?
Cost - USD 2,000
Expressions of interest to virtualshipbroker@yahoo.com
The Virtual Shipbroker
Subscribe to:
Posts (Atom)