Large long-term contracts (tonnage charter transactions) in the freight market are usually concluded as a result of direct negotiations between the shipowner and the charterer or international bidding. However, most transactions are made through special intermediary firms, ship brokers.
They differ by field of activity freight brokers, booking agents in liner shipping and ship brokers.
Freight Brokers specialize in fleet types - tankers, bulk carriers, brokers for chartering vessels for the transport of heavy cargo, brokers operating in the market of refrigerated fleet, timber transportation, tween-deck multi-purpose vessels, ships of mixed and coastal navigation. However, this division is conditional and reflects only the main specialization of this broker.
In relation to the principal-owner or charterer, a distinction is made between an exclusive broker and a market broker.
An exclusive broker has a framework agreement with the principal, who, for all his charterings, applies first of all to this broker, granting him, for a certain period of time, the exclusive right to search for a partner.
The principal-charterer requires his broker to carry out transportation at the minimum market rates, that the cargo be exported in accordance with the terms provided for in the sale contract, so that he does not incur extra costs - for storing cargo in the port after the expiration grace period, for extra insurance of cargo due to the use of a vessel over 20-25 years old, in the form of payment for demurrage or dead freight to the shipowner. An exclusive broker must give its principal a forecast of the freight market, which he takes into account when concluding trade contracts (charterer) or when planning ship repairs and putting ships on a time charter (ship owner).
A market broker works on one-time orders from various principals (ship owners and charterers) or on offers received from other brokers.
In practice, there is no strict boundary between the two groups of brokers: an exclusive broker, in addition to the freight orders of its principal, executes separate orders of other clients or brokers.
In each specific transaction, two brokers usually participate - from the side of the charterer and from the side of the shipowner. Large shipowners and industrial companies (oil, timber, coal) have charter departments, the so-called "house broker", and enter the market on their own, without intermediaries.
The broker receives two types of orders from the principal: for a market quote (indication) and a freight order. A market quote is usually requested 3-5 weeks in advance. The Charterer Principal requests a market quote regarding the rates and conditions for the carriage of a specific cargo to a specific country or several countries before signing a trade contract or wishing to choose best option transportation.
The principal-owner requests a quotation in order to determine the possibility and efficiency of chartering his vessel after the completion of the current voyage, time charter or repair.
To prepare a response, it is necessary to ask the shipowner what cargoes and in what directions he may be interested in, as well as to receive from him data about the vessel (carrying capacity, capacity, number of decks, age).
Market quotation (indication) based on own experience brokerage company, information received by it from partner companies, and on major international transportation routes - from publications in special reference publications and on the Internet - "Indications of large brokerage companies".
A charter order is a firm instruction from the principal to the broker to conclude a transaction on chartering (chartering) of a vessel on the conditions set forth in the order. In order for the broker to negotiate with a partner, the freight order must contain a number of mandatory information.
- charterer's warrant: type of cargo, its transport characteristics, quantity, margin; whether this shipment is a one-time or part of a long-term contract; loading and unloading ports; date of cargo readiness for loading; cargo handling standards; the idea of the rate and the terms of payment of the freight; special requirements for the vessel (age, availability of cargo facilities, etc.).
- shipowner's warrant: name of the ship, its technical and operational characteristics, flag and age of the ship (for ships older than 20 years - the period of validity of the Register documents), port or area of release of the ship for the intended voyage, date of release of the ship, list of unwanted cargo and directions of transportation (voyages through the Suez canal, scrap metal, coal).
Having received a charter order, the broker starts chartering (chartering) of the vessel. This work can be conditionally divided into three stages: preparation of negotiations; conduct of negotiations; registration and control of the transaction.
Trading companies of medium size and poorly familiar with the freight market in their charter order to the broker stipulate only those charter conditions that follow from the contract for the sale of goods: the type and quantity of cargo, the period of its readiness for shipment, ports of loading and unloading, cargo handling rates.
In response to such a firm offer, the shipowner sends the charterer a detailed counter within the established timeframe, which contains all the commercial conditions of the charter: the shipowner, operator, name, type and technical and operational characteristics of the vessel; the amount of cargo; ports of loading (unloading); the number of berths in each port that the charterer can use; requirements for them; norms of cargo operations or length of lay time in ports of loading and unloading; the procedure for accounting for lay time; demurrage and dispatch rates and the procedure for their calculation; freight rates and basic conditions for payment for cargo work, etc.
The shipowner (his broker) also sets a response time - by a certain hour of the date indicated by him, according to Greenwich Mean Time or another time zone. For urgent transactions, or in order to put pressure on the partner, the response time can be set in hours after receiving the offer.
The exchange between the charterer and the shipowner of firm detailed proposals completes the first stage of negotiations. As a result, his partners clearly stated their initial positions to each other and identified differences between them.
The next stage is the "negotiation" of the deal, the joint search for a compromise that satisfies both parties. These negotiations can be quite lengthy and are conditionally called accept/except.
If the shipowner's proposal is acceptable in principle to the charterer, he sends him a response, which begins with the words: "the charterer accepts the shipowner's proposal, except for ...". The charterer's comments may include:
The requirement to clarify or supplement the information given in the shipowner's proposal.
New wording for those conditions that are unacceptable to the charterer.
New conditions not provided for in the shipowner's proposal, which the charterer deems necessary to include in the contract.
Having received the charterer's response, the shipowner, in turn, may not accept part of his proposals and send his comments, and this cycle may be repeated several times. The subject of multiple discussions are: the freight rate; the form of specifying in the charter the amount of cargo, the norm of cargo work, etc. Each counter-proposal is given with an indication of the response time, which at this stage, as the disputed positions decrease, is gradually reduced from 3 hours to 1 hour or even to 15-30 minutes.
Each of the parties at any stage may refuse further negotiations. However, brokerage ethics requires you to declare this to the partner and indicate which of its conditions are unacceptable. In this case, the partner may repeat his proposal, replacing the corresponding article in it.
The last stage of the negotiation process is that the charterer or his broker must, in minimum term draw up and send to the shipowner (his broker) a complete fixture recapitulation (i.e. “fixed without the right to change”), including all the conditions that were agreed upon during the negotiation process.
Postfixing is a special set of operations that brokers perform after a deal is made.
The broker of the charterer, in full accordance with the recap, prepares the charter and the addendum to it; signs two original charters with both partners. If there is a power of attorney, each of the brokers can sign the charter on behalf of their principal. It is desirable to have signatures and seals of the parties on each page of the charter and addendum to it. Sometimes one of the partners requires the charter to be sealed with a wax seal.
The broker of the shipowner, on his behalf, at the appropriate stages of the ship's voyage, draws up an invoice for the payment of freight, calculates and invoices the charterer for demurrage and dead freight, evaluates the effectiveness of the voyage (calculation of the time charter equivalent).
A broker is one of the leading professions in the maritime business. It requires deep and versatile knowledge, a high sense of responsibility, good business skills, and the ability to negotiate. The broker must know the features of various types of ships, the transport characteristics of cargo, the conditions for handling ships in ports; be able to negotiate concisely and clearly, without wasting either your time or your partner's time unnecessarily.
The broker must be as punctual as possible, contact, negotiate in a respectful and friendly manner, without pressure on the partner. You should always try to answer the partner's questions, give him the necessary information. It is obligatory to know each partner by name, to remember the content of previous negotiations, not to confuse partners with each other.
The broker must know all the abbreviations used in freight correspondence, freely use them, but without deliberateness, without inventing new abbreviations.
"Golden Rules" of the broker:
1. Act only within the powers received from the principal. Never give or accept offers without confirmation from the principal, unless the principal has been given full authority to enter into the transaction.
2. Send all information received from the partner in writing (by fax or telex) to the principal. All instructions of the principal to accept from him also in writing. This has a very importance in the event of further claims from the principal.
3. In the absence of a second broker, clearly define your status and strictly adhere to it.
4. Don't fight the market. If the current situation is in favor of the partner, do not try to impose your terms of the contract on him.
5. Do not give a firm offer to more than one partner and do not agree to conditions that you cannot fulfill. This will lead to the failure of the transaction and the loss of reputation.
A broker is not only an intermediary, but also an adviser to the principal. This is especially true for the broker of the charterer, since many trading companies are not familiar with the carriage of goods by sea. Broker's advice will allow the charterer to more competently conclude trade contracts and avoid extra costs.
The shipowner is usually quite well versed in all matters related to the carriage of goods by sea, and the duties of his broker are to inform the principal about the situation on the market and to negotiate a charter.
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broker acting as an intermediary between the shipowner and the charterer in the conclusion
charter contracts.
The right of the broker to receive commission and its
the size is specified in
charter.
Freight- freight, freight (sea trade). App. to freight; cargo. the contract is concluded by the charterer with the charterer.
Explanatory Dictionary of Ushakov
Broker M.- 1. An intermediary (person or firm) at the conclusion of various transactions, acting on behalf of and at the expense of clients.
Explanatory Dictionary of Efremova
Freight App.- 1. Corresponding in value. with noun: the freight associated with it. 2. Peculiar to freight, characteristic of it.
Explanatory Dictionary of Efremova
Broker- -a; m. broker] A firm or person acting as an intermediary in the conclusion of transactions on the stock exchange, acting on behalf of its clients; broker. Auction, insurance b.
◁........
Explanatory Dictionary of Kuznetsov
bill broker- - a person who professionally mediates in the purchase and sale of bills of exchange (usually foreign) on currency and stock exchanges.
Law Dictionary
Stock Broker— -1) an employee or representative of a legal entity - a member of an exchange and an exchange intermediary; 2) an independent broker.
Law Dictionary
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Broker Trading — Job Responsibilities. Performs civil transactions with various kinds of goods on its own behalf or on behalf of clients on the basis of an agreement concluded with them........
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Bill Broker- - an intermediary in transactions for the accounting of bills and their rediscounting. The greatest distribution of V. b. received in the UK, however, even there their role is significantly reduced, because. functions........
Law Dictionary
Vice Broker- - on the stock exchange: broker's assistant.
Law Dictionary
Freight- see Freight.
Explanatory Dictionary of Kuznetsov
Discount Broker- a brokerage firm that offers a minimum of services in transactions with securities for its clients (for example, only registration of accounts, without legal and other services), ........
Law Dictionary
Investment Broker- - physical or entity, which has the right to perform intermediary operations in the securities market, at the expense of the client and on his behalf.
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Marine Broker- - see Maritime mediation.
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stock broker- (English, stock broker) - a person acting on his own behalf, selling shares or shares of his clients.
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Insurance Broker- - legal or individual, duly registered as an entrepreneur, carrying out insurance intermediary activities ........
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Customs Broker- - an intermediary who has the right on his own behalf to perform any operations on customs clearance and perform other intermediary functions in the field of customs ........
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Customs Broker (intermediary)- - an enterprise created in accordance with the legislation of the Russian Federation, which has the status of a legal entity and has received a license from the State Customs Committee of the Russian Federation for the right to customs clearance .........
Law Dictionary
Freight Broker- - a broker acting as an intermediary between the shipowner and the charterer when concluding a commission agreement. The right of the broker to receive a commission and its amount are stipulated in the charter.
Law Dictionary
Freight Contract- - a contract under which the charterer receives at his disposal a vessel for the carriage of goods along a certain route or for a certain period; such a contract can...
Law Dictionary
Freight Order- - an order for the chartering of tonnage issued by the charterer to his broker. F. o. contains all the information necessary to conclude a transaction.
Law Dictionary
Freight Market- - the market where transactions on chartering and chartering of tonnage are made. Monetary value of services on F.r. is the price of transportation, which has two forms: freight........
Law Dictionary
Broker, Adam Fomich- - Moscow police chief; genus. about 1762, d. in 1848. Broker's father was engaged in trade in Arkhangelsk, had a large fortune and was famous in the city .........
Big biographical encyclopedia
BROKER- BROKER, -a, m. An agent who mediates in the sale and purchase of securities, goods. Exchange b. * Insurance broker (special) - a company or individual - an intermediary between insurance ........
Explanatory dictionary of Ozhegov
A freight broker is an intermediary between the shipowner and the owner of the cargo. He brings together the parties to the transaction, but he does not appear in the contract. For services, the broker receives remuneration in the form of a percentage of the freight amount.
“Why resort to the help of an intermediary? After all, you can find a ship on your own, ”thinks of people who have not previously encountered water transportation. To complete a transaction, you need to have professional knowledge and contacts.
In order to charter a ship, the broker must study the legislation of maritime transport. When it comes to international transactions, additional knowledge of regulations is required foreign states and intergovernmental agreements. In addition, such transactions are concluded in English. So, the broker must master it perfectly.
To find a ship you need to know the conditions of ship transportation. Requires flexibility and an extensive base of business contacts. The latter will help in organizing combined cargo transportation when a river-sea vessel is required.
The broker must follow the technical progress in maritime transport. It is important to know the design of ships, the possibility of transporting certain goods, the specifics of transporting various categories of goods.
The brokers are responsible for the calculation of transport costs. Intermediaries help cargo owners to charter a vessel. Captains, with the help of brokers, find goods for the available tonnage.
That's why you need to turn to professionals. The mediator will save time, nerves and take care of organizational issues. The value of the service more than justifies the fee.
Our company will act as an intermediary in concluding a charter deal and help you find a vessel. The search is based on three components:
– by type of vessel (dry cargo or tankers),
– by type of cargo (grain, building materials),
- in the direction of transportation.
An integrated approach to the selection of tonnage ensures a quick search for a vessel. We help in organizing domestic and international sea, river and combined cargo transportation. In the second case, we find the ship "river-sea".
Extensive business ties cover the ports of the Black, Azov, Baltic, Mediterranean and other seas. In the face of Inter Marine Service, you will get a reliable intermediary who will contribute to the development of your trading business. Contact us to find out the details of cooperation. Call!
Broker - an accredited (registered) person professionally engaged in intermediary activities when concluding various kinds of transactions.
The broker performs intermediary functions between the seller and the buyer, between the insurer and the insured, between the shipowner and the charterer. The broker receives remuneration in the form of commissions.
Stock brokers make transactions with goods, securities, currencies on the respective exchanges.
Legislation Russian Federation defines a stock broker in the securities market as follows: A broker in the securities market is a trade representative, a legal entity, a professional participant in the securities market, who has the right to perform operations with securities on behalf of a client and at his expense. (Federal Law No. 39-FZ of April 22, 1996 (as amended on December 6, 2007) "On the Securities Market")
Freight brokers act as intermediaries between shipowners and charterers...
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As can be judged from past experience, shippers often suffer from capacity shortages. But if you have a good freight broker, then you are knee-deep. Many shippers turn to brokers when the demand for freight transportation is significantly higher than the capacity of the carrier. With the help of a broker, shippers can increase traffic without having to deal with the problem of attracting new carriers.
According to Chip Smith, President and CEO of Twin Modal, a quality broker is one of the most important components in our trucking supplier arsenal. Here are 10 tips to help you choose the right freight broker for your needs.
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To avoid a similar fate, before starting independent trading, it is worth going through forex training, during which you can learn about the features of the market and learn how to work with trading instruments correctly. Training from brokers is a convenient opportunity to gain the necessary knowledge and trading experience without real financial risks. If you want to learn how to make money on Forex from scratch, you can find answers to all questions in the proposed lessons.
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Trucking plays an important role in the nation's economy - according to the American Trucking Association, these big wheels generate $346 billion in gross revenue over the last accounting year, occupy more than 9.5 million people in the workplace and transported 6.5 billion tons of cargo. And 77 percent of all American communities rely on truck trailers as their sole source of delivery. If you have experience in the industry, you probably know what a freight broker is who handles the turnover of these trucks, arranging the delivery of large and small loads. If you love the song of the free road, but you don't want to be on the road, then trucking (courtage for freight) might be the business for you.
As a freight broker, you will work with manufacturers, wholesalers and distributors who need to get their products across the city or across the country with the help of transport companies. You can specialize in LTL (i.e. loads less than freight...
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The Institute of Chartered Shipbrokers (The Institute of Chartered Shipbrokers) is a professional organization that brings together specialists in the field of maritime transport management.
The history of the Institute of Certified Ship Brokers began in 1911, when ship broker David Pinckney, a member of the Baltic Exchange, concerned about the low professional standards of London ship brokers, suggested to his colleagues that they establish the Institute of Ship Brokers. Shipbrokers and agents from London and all ports in the United Kingdom have been invited to become members. The main tasks of the established Institute were determined:
Protecting and promoting the interests and general welfare of shipbrokers by coordinating actions; discussion, consideration and reporting on issues of interest to ship brokers and exchange of information with the Chambers of Industry and other state and public bodies; support or opposition...
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Freight transactions are usually concluded with the help of intermediaries - freight brokers. The emergence of the institution of freight brokers was the result of the division of labor in shipping. Once upon a time, in the days of the sailing fleet, the captain, who sometimes was the owner of the ship, himself looked for cargo for the ship. But with the development of maritime trade and the formation of first local markets, and then the world freight market, which is subject to continuous market fluctuations, as the conditions of transportation and the technical equipment of shipping become more complicated, the shipowner (master), engaged in technical operation, was no longer able to independently find suitable cargo for the ship, nor to determine the correct level of the freight rate. The shipowner, by the will of circumstances, was forced to turn to a person who was aware of all matters relating to the availability of certain cargoes, aware of demand, supply and current freight rates, i.e. to a freight broker. In the shipping business, the freight broker acts as a trustee...
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Free training courses from leading brokers
Any broker, first of all, is interested in a constant influx of new customers. And you can attract newcomers, including high-quality training! Free brokers offer only some introductory basic things. More useful and specific information is given to listeners already in the form of paid products.
However, in order to master the “elements” of the foreign exchange market, basic training is quite enough. Therefore, in this article we will talk about which brokers offer free Forex courses to beginners.
For novice traders, Alpari has prepared a free basic online course (five lessons of approximately two hours each). Training can be completed remotely or at the company's office (for example, in Moscow, Barnaul, Krasnodar, Yekaterinburg and Omsk).
The purpose of the course is to give beginners the basic concepts of foreign exchange market, allowing you to conduct independent trading on Forex.
The first lesson is about the history...
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In order to become a securities broker, you need to take courses or prepare yourself and pass qualifying exams. Often administrative requirements are perceived as excessive bureaucracy, but on stock market this approach seems to be justified. Let's try to explain why.
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FREIGHT BROKERS AND FREIGHT TECHNIQUES
Large long-term contracts (tonnage charter transactions) in the freight market are usually concluded as a result of direct negotiations between the shipowner and the charterer or international bidding. However, most transactions are made through special intermediary firms, ship brokers.
The scope of activity includes freight brokers, booking agents in liner shipping and brokers for the sale and purchase of ships.
Freight brokers specialize in fleet types - tankers, bulk carriers, brokers for the charter of vessels for the transport of heavy cargo, brokers operating in the refrigerated fleet, timber transport, tween-deck multi-purpose vessels, ships of mixed and coastal navigation. However, this division is conditional and reflects only the main specialization of this broker.
In relation to the principal-owner or charterer, a distinction is made between an exclusive broker and a market broker.
Exclusive...
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FREIGHT BROKER
A broker acting as an intermediary between the shipowner and the charterer when concluding a commission agreement. the broker's right to receive a commission and its amount are stipulated in the charter.
One-volume large legal dictionary. 2012
