Shipping Vocab: Shipbroker vs Ship Charterer
Every industry has its own jargon. As one of the preferred providers of chandling services in Cape Town, Saldanha, Port Elizabeth, Coega, Durban and Richards Bay, the Link Ship Chandlers team has a solid handle on shipping lingo. However, we also realise that the abbreviations and technical terms that form a part of our everyday vocabulary can be quite confusing for the novice.
Today we take a look at shipbrokers vs ship charterers and everything that goes along with these titles.
What Is a Ship Charterer?
A ship charterer is an individual or entity who plans the logistics of a voyage. This includes calculating the cost of cargo handling onto and off the ship, and onshore (depending on whether the latter was included in the agreement between the shipowner and cargo owner). The charterer is also in charge of ship and crew safety by adhering to cargo operations best practices at all times. Ship charterers hail from various industries – it could be a commodity trader, an oil major, a mining company of a grain house that ships raw materials.
What Is a Shipbroker?
There are tens of thousands of ships around the world that are available for charter and as many cargo owners who need to ship their wares. A shipbroker is a person who brings these two parties together to facilitate the charter. The broker is paid a commission by the shipowner, normally a percentage of the gross freight earned.
A broker can work for a brokering department in the principal’s operation, or it could be from a completely separate company consisting of individual brokers. They deal in various types of charters depending on cargo type, which includes time charters (when the shipowner hires out the ship for a given period of time); voyage charters (when the owner hires out the ship for the carriage of an agreed quantity of cargo from a specified port/ports to another port/ports); as well as bareboat charters (when an owner leases a specific vessel and control its technical management and commercial operations).
So there you have it – a concise look at some of the most commonly-used terminology you are likely to encounter with regard to shipbrokers VS ship charterers. For more helpful tips and info from inside the Link Ship Chandlers camp, keep an eye on the blog in the coming weeks and months. We always have our ear to the ground and take pride in sharing the latest shipping news as it becomes available.