By: Milos Pesic
There are several types of
brokerage – foreign exchange (forex) brokerage, stocks, commodity, real estate (including hotel
brokerage), mortgage, insurance, boat and yacht charter, and ship brokerage. The latter, which is
most comprehensively referred to as brokerage for international shipping or ship brokerage is
distinguishable from the other types as it is markedly categorized as part of the shipping
industry.
In the shipping industry, a ship
broker’s role is to act as a middleman between the owner of the cargo (the charterer) and the owner
of the ship (or any other means for shipment). In this kind of brokerage for international
shipping, the ship brokers are the ones responsible in assisting the two parties in negotiating all
the terms and conditions for the international shipment of the charter’s cargo. Brokerage for
international shipping then, makes it a whole lot easier for the charter or owner of cargo to
choose and close a fine deal for the shipment of his goods.
Also necessarily included in the
process of brokerage for international shipping is the broker’s sending out of a recapitulation (or
recap) of the agreement which may be accompanied by a charter party. The charter party is the legal
paper prepared by the ship broker and accomplished in duplicate (a copy for the charterer/cargo
owner and another copy for the ship owner) stating the contract by which the ship is lent or hired
for the international shipment of goods according to set conditions and either for a specific
voyage or time. The charter party used in a brokerage for international shipping may differ
according to varying specifications or preferences. One charter party is applicable only to hiring
the ship with the managing services of its owner and his crew for a fixed single shipping voyage
(called the voyage charter party).
At other times, a charter party
involves hiring the ship as well as the services of its owner with the exception that the charterer
or owner of goods controls and determines the operation i.e. destination of the ship for a specific
period of time in order to convey his goods according to his preference (called the time charter
party). Other times still, a charter party used in a brokerage for international shipping may
involve the owner or charterer’s full control of the shipping vessel yet according to his agreed on
legal and financial responsibility with the ship’s owner (called the demise or bareboat charter
party).
All these intricate specifics
may be easily and effectively possible only with the aid of a brokerage agent acting equitably for
the benefit of both parties, the cargo’s owner and the ship’s owner.
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