What is Shipbroking?

What is Shipbroking?

A ship broker is an individual who is responsible for organizing the transport of merchandise by sea. This is also an individual who is responsible for employing the vessel and purchasing or selling ships for their client. They are more or less a middle man between individuals who own ships and individuals who want to buy ships. There are actually several stages to brokering a deal between a ship owner and the broker’s clients. This includes presenting the business to their clients, working out the terms of the sale, finalizing the deal, and following the deal through until it has been closed. Hiring a professional in the ship Shipbroking industry is extremely beneficial as they can provide you with a lot of knowledge and advice that you might not have.

You have to understand there are several different kinds of ship brokering including: dry cargo brokering, tanker brokering, and container brokering. What kind of deal is being brokered and what is being paid for determined what kind of deal you are dealing with. Tanker brokers, for example, usually deal with gas, crude oil, chemicals, and other oil products. They deal with chartering tankers just as their name suggests.

A charter party is the name of a legal documentation that is a contract between a ship owner and a customer. The contract states what the ship was hired to transport, how much it was hired to transport, how long it was supposed to take, and what it is supposed to go with the goods. This is a situation where you would want to hire a ship broker. A ship broker is going to be able to review the contract to make sure there are not any problems or loopholes. The ship broker is going to make sure that both the ship owner and the merchant end up getting a fair deal. Ship owners have plenty of experience drawing up these contracts in most cases; however, for a lot of obvious reasons they are going to draw one up to favor their needs. You want to hire a ship broker to make sure you are not getting the raw end of the deal.