I have had numerous requests from people asking for more information about the 'actual markets'.
With that in mind, i'm working on a new project that will help readers better understand the different market segements. It will also help readers better identify the major palyers in each market segement. There may also be some crystal ball gazing looking at how these markets may play out over the next 12 months.
Keep an eye out
Cheers
VS
Tuesday, July 13, 2010
Thursday, July 8, 2010
The markets have tanked!
Yes the markets have dropped for 30 consecutive days. Check out the bdi index Here
The extended supply of new ships is starting to make a difference, China's steel industry is in go slow and maintenenace mode and the overall mood is a tad gloomy.
The good news is that we are still nowhere near the lows from 2 years ago and in truth the market now has renewed optimism that any drop no longer means catastrophe. Righty or wrongly scribes are still predicting a rebound in the 3rd and 4th Quarters.
I blame the workd cup. Too much watching not enough doing PEOPLE!
I also blame the great China Currency debate.
I blame to builders of ships. You guys are the only ones who should be sitting on your hands watching the football.
Finally I also blame George Bush - because, well.......... I just like blaming George Bush.
So keep your heads up. Im prediciting that by 2020 the markets will be double what they are now.
I also predicted that in 2010 an African Nation will win the world cup so take from that what you will.
Cheers
VS
The extended supply of new ships is starting to make a difference, China's steel industry is in go slow and maintenenace mode and the overall mood is a tad gloomy.
The good news is that we are still nowhere near the lows from 2 years ago and in truth the market now has renewed optimism that any drop no longer means catastrophe. Righty or wrongly scribes are still predicting a rebound in the 3rd and 4th Quarters.
I blame the workd cup. Too much watching not enough doing PEOPLE!
I also blame the great China Currency debate.
I blame to builders of ships. You guys are the only ones who should be sitting on your hands watching the football.
Finally I also blame George Bush - because, well.......... I just like blaming George Bush.
So keep your heads up. Im prediciting that by 2020 the markets will be double what they are now.
I also predicted that in 2010 an African Nation will win the world cup so take from that what you will.
Cheers
VS
Shipbroker Resume's and Cover Letters
Over the last 12 months I have enjoyed helping out many of you with getting your resumes and cover letters right. Apart from having these two things in perfect working order it is also essential you have a plan of attack. No point in sending out emails in cyberspace hoping and praying for a reply.
Anyway...with all the requests I have (coupled with all my other commitments) I need to be a little more time savvy so that i can reply to those who really need my help. So from now on for those of you wanting help with resume's, letters and a plan of attack I will be asking that you make a donation of USD 20.00 by pressing the donation button at the bottom right hand corner of the blog. That will then allow me to prioritise my time in a more efficient manner and help out those who really do need some assistance getting this important facet right. I once paid someone 75 bucks for the same privilege so its still a good deal.
Thanks for your understanding.
VS
Anyway...with all the requests I have (coupled with all my other commitments) I need to be a little more time savvy so that i can reply to those who really need my help. So from now on for those of you wanting help with resume's, letters and a plan of attack I will be asking that you make a donation of USD 20.00 by pressing the donation button at the bottom right hand corner of the blog. That will then allow me to prioritise my time in a more efficient manner and help out those who really do need some assistance getting this important facet right. I once paid someone 75 bucks for the same privilege so its still a good deal.
Thanks for your understanding.
VS
Wednesday, July 7, 2010
Travel and Shipbroking
This message gets it own posting for two reasons. Firstly its a good question and secondly the poster has said something nice about my blog. That will do it everytime...
Qte
Anonymous has left a new comment on your post "Why Shipbroking":
Hi Virtual Shipbroker
I am not going to sound very original based on the comments that I read but anyway I'd like to congratulate you on your blog which is very well written and even a bit captivating. I can't really remember how i ended up here but I've stayed much longer that I usually do on such websites. I don't know if it's the casual but insightful way you write or the feeling i had that all my questions were answered before I can clearly formulate them in my mind, but there is something which makes this site difficult to leave.
However there was one question that I asked myself and that I havn't seen yet (well I havn t read aaaaaalll the posts on the other hand but well..): I for one am lucky enough on the money front, my job pays well and is even kind of exciting to some extent, so among the good points that you listed about shipbroking the one that struck me was travel (ranked 2nd in the list!). Because that's what i m missing in my job! but as a shipbroker why, when and where do you travel?? for how long? is it kind of adventurous, do you go to original places, or is it just the usual business trip?
This is what would make a difference with most jobs in my humble opinion.
Thanks in advance and keep on the good work :)
Clement
Unqte
Well Clement first let me say thank you for your perceptive comments about said blog. Truth is I try and make it captivating by including interesting topics. And yes I have only recently realised that I write in an informal yet informative style that people seem to enjoy. So I’m running with it...
Travel is an important part of a chartering executives’ job. I reckon I travelled around 8 weeks per year when first starting out. I’m a little jaded these days and it takes something special to get me moving. Something special is a close client, a million dollar deal (commission wise) or an exotic destination.
Mostly be expected to travel regularly for conferences (shipping and commodity), to geographical regions to market your services, occasionally to a ship loading or discharging and if you are lucky to when a "new ship" is being launched. If you are really fortunate they may even name the ship after your good self (or your better half). All ships are feminine remember (referred to as she). I think the names of quite a few mistresses also adorn the hulls of certain huge bulk ships.
Once you create a name for yourself expect to be invited to 'social events' that will require business class travel. Anyone for skiing in Canada, fishing in New Zealand, Horse racing in the Middle East, getting smashed in Vegas, Rugby in Hong Kong, Formula One in Mongolia....I mean Monaco?
Where ever there is a world event expect to find shipping people hogging some of the collective limelight.
Who I wonder is at the world cup....
Cheers
VS
Qte
Anonymous has left a new comment on your post "Why Shipbroking":
Hi Virtual Shipbroker
I am not going to sound very original based on the comments that I read but anyway I'd like to congratulate you on your blog which is very well written and even a bit captivating. I can't really remember how i ended up here but I've stayed much longer that I usually do on such websites. I don't know if it's the casual but insightful way you write or the feeling i had that all my questions were answered before I can clearly formulate them in my mind, but there is something which makes this site difficult to leave.
However there was one question that I asked myself and that I havn't seen yet (well I havn t read aaaaaalll the posts on the other hand but well..): I for one am lucky enough on the money front, my job pays well and is even kind of exciting to some extent, so among the good points that you listed about shipbroking the one that struck me was travel (ranked 2nd in the list!). Because that's what i m missing in my job! but as a shipbroker why, when and where do you travel?? for how long? is it kind of adventurous, do you go to original places, or is it just the usual business trip?
This is what would make a difference with most jobs in my humble opinion.
Thanks in advance and keep on the good work :)
Clement
Unqte
Well Clement first let me say thank you for your perceptive comments about said blog. Truth is I try and make it captivating by including interesting topics. And yes I have only recently realised that I write in an informal yet informative style that people seem to enjoy. So I’m running with it...
Travel is an important part of a chartering executives’ job. I reckon I travelled around 8 weeks per year when first starting out. I’m a little jaded these days and it takes something special to get me moving. Something special is a close client, a million dollar deal (commission wise) or an exotic destination.
Mostly be expected to travel regularly for conferences (shipping and commodity), to geographical regions to market your services, occasionally to a ship loading or discharging and if you are lucky to when a "new ship" is being launched. If you are really fortunate they may even name the ship after your good self (or your better half). All ships are feminine remember (referred to as she). I think the names of quite a few mistresses also adorn the hulls of certain huge bulk ships.
Once you create a name for yourself expect to be invited to 'social events' that will require business class travel. Anyone for skiing in Canada, fishing in New Zealand, Horse racing in the Middle East, getting smashed in Vegas, Rugby in Hong Kong, Formula One in Mongolia....I mean Monaco?
Where ever there is a world event expect to find shipping people hogging some of the collective limelight.
Who I wonder is at the world cup....
Cheers
VS
Tuesday, July 6, 2010
World Cup
I see that l'Orange is the new black!
Imo not as great as some of the recent dutch teams. No Davids, Van basten, Gullits etc
Total futball it isnt but maybe thats a good thing - It is afterall about winning. Look at Italy and some of the German teams over the years. Not exciting but they win..
Having said that - the Germans are playing incredible attractive football which is a pleasant change. To score 4 goals against three good teams is a huge effort.
It seems to me that the underachievers are Serbia. The first team to beat Germany ever in the first round of a world cup final campaign. Full of young (and old) stars Serbia is a great team. Lets hope that in four years time they can go further.
Great to see the USA do well. Lots of guys playing good football in top European Leagues.
Also impressed by Japan.
England, Italy and France....one to forget!
My pick for the final....Netherlands over Spain 3-2.
(Im often wrong but its good to have a guess)
VS
(football tragic)
Imo not as great as some of the recent dutch teams. No Davids, Van basten, Gullits etc
Total futball it isnt but maybe thats a good thing - It is afterall about winning. Look at Italy and some of the German teams over the years. Not exciting but they win..
Having said that - the Germans are playing incredible attractive football which is a pleasant change. To score 4 goals against three good teams is a huge effort.
It seems to me that the underachievers are Serbia. The first team to beat Germany ever in the first round of a world cup final campaign. Full of young (and old) stars Serbia is a great team. Lets hope that in four years time they can go further.
Great to see the USA do well. Lots of guys playing good football in top European Leagues.
Also impressed by Japan.
England, Italy and France....one to forget!
My pick for the final....Netherlands over Spain 3-2.
(Im often wrong but its good to have a guess)
VS
(football tragic)
Tuesday, June 29, 2010
The art of War
Shipping is War. Its a friendly war of sorts, but be under no illusion it is WAR.
Its a bit like a world cup soccer match. It may seem friendly before kick off but the best players are prepared to die on the field if they have to.
So whats my point? The point is that negotiations are usually always robust and each side should do whatever they can to get an advantage.
A shipowner will use whatever he has at his disposal to get a high freight rate and favourable terms. The same goes for a charterer. The should do whatever they can to try and secure the best possible outcome (low freight rates and good terms) for their stakeholders.
How then does this manifest in a negotiation? It can get extremely willing. People get angry, People make preposterous claims, executives send letters that seem like legal threats...any advantage that can be gained will be (if the person is doing their job).
And guess what? This is expected. And the funny thing is that after days of quite stressfull rhetoric once a deal is done all parties shake proverbial hands and then get themselves prepared for the next round of negotiations to take place.
So never feel guilty about pushing your case if you feel you are in the right. The "opposition" may get upset for a period but they soon forget when the next deal arrives on their computer screens.
Its all part of the game.
VS
Its a bit like a world cup soccer match. It may seem friendly before kick off but the best players are prepared to die on the field if they have to.
So whats my point? The point is that negotiations are usually always robust and each side should do whatever they can to get an advantage.
A shipowner will use whatever he has at his disposal to get a high freight rate and favourable terms. The same goes for a charterer. The should do whatever they can to try and secure the best possible outcome (low freight rates and good terms) for their stakeholders.
How then does this manifest in a negotiation? It can get extremely willing. People get angry, People make preposterous claims, executives send letters that seem like legal threats...any advantage that can be gained will be (if the person is doing their job).
And guess what? This is expected. And the funny thing is that after days of quite stressfull rhetoric once a deal is done all parties shake proverbial hands and then get themselves prepared for the next round of negotiations to take place.
So never feel guilty about pushing your case if you feel you are in the right. The "opposition" may get upset for a period but they soon forget when the next deal arrives on their computer screens.
Its all part of the game.
VS
Monday, June 28, 2010
The VS Dry Cargo Shipbroking and Chartering Certificate
Is in full flight.
6 Students are 1 month into the 4 month program. No one pulled out after 2 weeks so this is a good sign..lol.
By all reports they are learning alot. By the end of 4 months all the little things they are learning will 'click' and their overall knowledge of how things work will be akin to many with atleast 2 years in the industry.
A great thing about the process is that new questions arise with every group of students. It allows me to get a clearer picture of the issues (blank spots) facing people wanting to enter the industry.
Which brings me too a great question.
One of the students has asked "VS - When (what time frame) do Charterers and Shipowners aim to fix their Cargoes and Ships?". He goes on to state that he heard somewhere that shipowners always try and fix ships 2 week before they are open (finished discharging the last cargo).
So whats the answer?
Is it one week before for both ships and cargoes? is it 2 weeks, one month, six months etc etc...
Some things to consider when answering this question.
1. Is the market on the move? If the market is going up then would a shipowner want to fix his ship early or late? If the market is going up will the charterer want to fix his cargo early or late?
Same vice vera - if the market is in freefall?
2. What risk profil do the shipowners and the charterers have? Low risk firms like to fix early (2-3-4 weeks prior). Firms with more higher risk profiles are more likely to wait until the last moment in search of a great deal.
The longer your wait the possiblity you may find a great deal. But it also increases the risk of default. Wait too long and you may be left with no options. This can be super costly.
3. Depends on the counterparty. In a rising market the shipowner may have every intention of waiting until the market rises further UNLESS offcourse a charterer comes to the table early and agrees to pay an attractive rate in order to lock in the ship. Same goes the other way. In a dropping market the charterer may think the best thing to do is wait for a cheap ship BUT a shipowner may see the writing on the wall and drop his rate dramatically before the market tanks altogether.
4. Depends on the loading and discharging areas. If a piece of business (ship or cargo) is open in a geographical area that has limited supply of counterparties then you will be better off to fix early. If there are lots of different opportunities then you can afford to wait!
++
A good broker knows how all the above play into a certain equation / negotiation. Knowing the above variables and how they fit into a situation enables the broker the try and manipulate the situation in order to bring about a fixture (sooner rather than later)...
Good question...
I hope this explains the decision making process faced by shipowners and charterers alike.
VS
6 Students are 1 month into the 4 month program. No one pulled out after 2 weeks so this is a good sign..lol.
By all reports they are learning alot. By the end of 4 months all the little things they are learning will 'click' and their overall knowledge of how things work will be akin to many with atleast 2 years in the industry.
A great thing about the process is that new questions arise with every group of students. It allows me to get a clearer picture of the issues (blank spots) facing people wanting to enter the industry.
Which brings me too a great question.
One of the students has asked "VS - When (what time frame) do Charterers and Shipowners aim to fix their Cargoes and Ships?". He goes on to state that he heard somewhere that shipowners always try and fix ships 2 week before they are open (finished discharging the last cargo).
So whats the answer?
Is it one week before for both ships and cargoes? is it 2 weeks, one month, six months etc etc...
Some things to consider when answering this question.
1. Is the market on the move? If the market is going up then would a shipowner want to fix his ship early or late? If the market is going up will the charterer want to fix his cargo early or late?
Same vice vera - if the market is in freefall?
2. What risk profil do the shipowners and the charterers have? Low risk firms like to fix early (2-3-4 weeks prior). Firms with more higher risk profiles are more likely to wait until the last moment in search of a great deal.
The longer your wait the possiblity you may find a great deal. But it also increases the risk of default. Wait too long and you may be left with no options. This can be super costly.
3. Depends on the counterparty. In a rising market the shipowner may have every intention of waiting until the market rises further UNLESS offcourse a charterer comes to the table early and agrees to pay an attractive rate in order to lock in the ship. Same goes the other way. In a dropping market the charterer may think the best thing to do is wait for a cheap ship BUT a shipowner may see the writing on the wall and drop his rate dramatically before the market tanks altogether.
4. Depends on the loading and discharging areas. If a piece of business (ship or cargo) is open in a geographical area that has limited supply of counterparties then you will be better off to fix early. If there are lots of different opportunities then you can afford to wait!
++
A good broker knows how all the above play into a certain equation / negotiation. Knowing the above variables and how they fit into a situation enables the broker the try and manipulate the situation in order to bring about a fixture (sooner rather than later)...
Good question...
I hope this explains the decision making process faced by shipowners and charterers alike.
VS
Commercial vs Operational roles
Good question
qte
dear vs,
i am a graduate of maritme studies in greece.I am a really hard worker and very passionate about shipping but i believe that i lack of communication skills and i am not so much an extroverted personality.do you think tha i could succeed as a shipbroker?? would you recommend a ship operation career rather than a shipbroker? And finally,is a ship operator paid as well as a shipbroker?I am looking forward to hearing from you.
thank you in advance
unqte
Many thanks for the question. I am glad you have a level of self awareness regarding your strengths and weaknesses - that can save you years and lots of heartache!
Your thinking is very sound. It doesnt necessarily mean that quiet people dont make good commercial employees though. It takes all kinds.
My suggestion is this. Your entry level job should be in vessel operations and post fixture. Spend a few years doing it and if your confidence and communication skills improve then maybe you should then consider moving accross to a commercial role. If you love your operational role then nothing lost! Keep going.
Senior operational roles can pay handsomely. Firms NEED good operations people. The role is much more secure and less stressul (differetn stress) then commercial roles.
In general though - you will find the overall pay scales are 20-30 percent less. (still very good!)
Thanks for the message
VS
qte
dear vs,
i am a graduate of maritme studies in greece.I am a really hard worker and very passionate about shipping but i believe that i lack of communication skills and i am not so much an extroverted personality.do you think tha i could succeed as a shipbroker?? would you recommend a ship operation career rather than a shipbroker? And finally,is a ship operator paid as well as a shipbroker?I am looking forward to hearing from you.
thank you in advance
unqte
Many thanks for the question. I am glad you have a level of self awareness regarding your strengths and weaknesses - that can save you years and lots of heartache!
Your thinking is very sound. It doesnt necessarily mean that quiet people dont make good commercial employees though. It takes all kinds.
My suggestion is this. Your entry level job should be in vessel operations and post fixture. Spend a few years doing it and if your confidence and communication skills improve then maybe you should then consider moving accross to a commercial role. If you love your operational role then nothing lost! Keep going.
Senior operational roles can pay handsomely. Firms NEED good operations people. The role is much more secure and less stressul (differetn stress) then commercial roles.
In general though - you will find the overall pay scales are 20-30 percent less. (still very good!)
Thanks for the message
VS
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