That Shipping is an extremely important part of global trade and the world economy is self-evident, and whilst it is obvious that large volumes of various commodities are transported every day from country to country, few people know what happens to enable these cargoes to be moved. How do you find a ship to carry the cargo you have just sold to an overseas buyer or how do you buy a vessel if you want to be a ship owner? The answer is to talk to your shipbroker. Ship broking is an activity which forms part of the international shipping industry. The role of shipbrokers is to act as specialist intermediaries between ship-owners and the charterers who use ships to transport cargo, or between buyers and sellers of ships.
The broker may be acting particularly for one principal or perhaps is the sole broker between the two contracting parties. He or she will be involved in many stages of the deal presenting the business to potential clients, negotiating the main terms of the fixture or sale, finalizing the details of the contract and following the deal through to its conclusion. Brokers discuss opportunities and market trends with ship-owners, report on sales, value vessels, calculate freight earnings, advise on finance and try to find ships for specific employment opportunities. When a ship is sold, brokers usually negotiate on behalf of the buyer and seller on price and terms and also provide a route to resolving any disputes which might arise. Some brokers specialize in the sale of ships for scrapping, which requires a different set of skills.