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  

 

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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)

My latest market commentary

Reuters latest with some spice from yours truely

Qte

Nov 27 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, rose on Tuesday helped by slightly higher rates for panamax ships.
The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, rose 0.27 percent to 1,097 points.

The panamax index rose 0.2 percent, with average daily earnings up $10 at $8,163.
Panamaxes typically transport 60,000-70,000 tonne cargoes of coal or grain.

Sentiment for panamax vessels remains positive overall for the next few weeks but could change if we do not see any new shipments hit the market, said Andy Jamison, shipping blogger and owner of the Virtual Shipbroker.

Pre-winter stocking has taken place and coal inventories are up in China, Jamison said.
After a positive couple of weeks there seems to be a softer feeling to the Atlantic market, Jamison said.

However, he expects the panamax market to hold up a little longer as there is still a plenty of operators in the market for coal stems.

The Baltic's capesize index fell two points to 2,275 points.

Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were down $66 at $16,291.

Shanghai steel futures touched two-month lows on Tuesday as winter reduced demand from the construction sector in top consumer China and sent spot prices for raw material iron ore to their weakest since October.

Iron ore shipments account for around a third of seaborne volumes on the larger capesizes, and brokers said price developments remained a key factor for dry freight.
Average daily earnings for handysize ships were up $70 at $6,468, while those of supramax ships were up $102 at $7760.

 Unqte

The Virtual Shipbroker

VS and Reuters update on the markets

Thu Nov 8, 2012 10:19am EST

Nov 8 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, remained flat on Thursday as capesize rates recovered and panamax rates slipped further.

The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, remained at 916 points from Wednesday.

The Baltic's capesize index rose 1 percent to 2,119 points.

Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were up $140 at $13,685. Capesize rates recovered after falling for six straight sessions.

Iron ore rose to its highest in more than three months and traders upped offers on Thursday for cargoes for sale to top buyer China, hoping to sustain what has been a gradual increase in prices, with steel demand largely stable.

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

The panamax index fell 1.49 percent, with average daily earnings down $84 at $5,820.

Panamaxes typically transport 60,000-70,000 tonne cargoes of coal or grain.

"The Atlantic market is horrible and holding the indices back," Andy Jamison, shipping blogger and owner of the Virtual Shipbroker, said.

The outlook does not look great in the mid-term with crop estimates slashed in the U.S and the Black Sea, Jamison added.

Average daily earnings for handysize ships were down $44 at$6,045, while those of supramax ships were down $26 at $6,735. (Reporting by NR Sethuraman in Bangalore; editing by Keiron Henderson)

White men cannot shipbroke?

From a reader of the blog (i have changed one or two items to protect the identity)

 

 

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Dear Sir,

How are you? Last time we did communicate via mail regarding my traineeship and I have another question to ask you.

Just want to share with you the company is good and the people is nice. I really enjoy working there and they currently assign me to the operation desk and hopefully will move to chartering desk in the future.

However, I faced a big barrier in this field, I can drink and social but just can't dance in the nightclub with my colleagues. I found my body is too stiff to move with the music and the way they dance looks quite stupid and silly. Two of my male colleagues seem to not so respect me due to my inability to dance.

My doubt is does dancing is one of the social skill that a successful shipbroker must possessed?

Please sir shred some light or opinion on my doubt. I trying my very best in this field but I feel it is like a dead end for me.

Thanks and good day.

Yours faithfully,
Twoleftfeet

Unquote

My father once said "Son - if you are crap at something - do something else"...

Alternative strategies I recommend

1. Do not even attempt to dance. Tell your colleagues that you have lower back problems, or you have a pulled hamstring from playing football.

2. Tell them that only sissies dance and then over compensate by drinking more beer than all the others put together.

3. Don't let your lack of coordination worry you. No one really cares if you can or cannot dance. Be content to sit at the table and smile at everyone else making fools of themselves. This is my modus operandi and I am sure it will work for you!

4. Watch this video and learn some moves

Yours
The Virtual Shipbroker

Time charter equivalent

Hi All - sorry for my Slackness - been on a family vacation. Lots of sun, surf and seafood....

For all those who have sent me messages I am wading through those now. Expect a reply soon

otherwise here is a good post from a reader

AnonymousOctober 5, 2012 5:28 AM

Excellent blog - will definitely get the ebooks - in the meantime, can you define clarify the terms "Worldscale" and "Time Charter Equivalent" and how shipping companies derive/arrive at these figures when they report their financial results.....?

ReplyDelete

The Virtual ShipbrokerOctober 7, 2012 8:19 PM

Hi - Worldscale is a tanker ship term. Not my gig! Basically its a way of pricing the ships. Time charter equivalent refers to price of a ship on a daily basis. So if a ship charged say 50 bucks per metric tonne to carry 50,000 mt of coal - that will have some kind of time charter equivalent - whihc means an equivalent daily rate which could be for example USD 10,000 per day.

There is no way you can figure out if the Time charter equivalent rates are kosher without knowing how to do a voyage calculation and without having all the cargo and ship details. So bottom line is you need to accept what the reports are telling you.

Hope this helps - and yes do buy my books! Keeps my children in food and clothing for another week.

VS

Update - check out my voyage estimation Tutorial - the best in the business for explaining these concepts

Click here

A word or two about CARGO TOLERENCE

In bulk shipping we try and avoid absolutes. Cargoes come in so many different shapes and sizes as do the ships that carry them.

Think about this....

You sell a very large amount of wheat to the middle east.....but when you sell it you have no idea at this early stage which ship will be carrying this wheat. Infact the shipment may not take place for 2 or 3 months so in reality it could be one of hundreds if not 1,000's of ship in the world fleet that could potentially carry this cargo.

So the problem arises.....If you do not know which ship will carry your cargo how then can you be sure that you will find the perfect ship in 2 months time? What if the only ship available is a little too big or a little too small?

Solution - when you sell the cargo allow for a TOLERENCE in the amount sold.

Eg Instead of selling exactly 20,000 mt of wheat to the middle east let the contract say 20,000 mt with a tolerence of 10 pct more or less.....depending on the ship that is nominated.

That way you can solicit offers from ships that can carry anything bewteen 18,000 and 22,000 mt.

You can see that this offers far more flexibility than trying to find the perfect ship that will carry exactly 20,000 mt...

This is an interesting area of bulk shipping....one that isn't understood by all. I reckon I'll do another post or two on this topic and highlight a grey area that you may find interesting.

Geez sorry for the boring 'shipping only' post...

Anyone got any good jokes?

VS