Why use a vessel broker to charter a ship? Anne Hall, shipbroker at Douglas Maritime has the answers – and provides valuable guidance to businesses…

Whether you are a seasoned shipper or a newcomer to the industry, the assistance and insight of an experienced shipbroker can be invaluable – and be much more cost effective in the long run – than going it alone.

Shipbrokers can help mitigate risks and reduce the risk of unexpected costs, and ensure the whole chartering process runs smoothly.

Expertise and market knowledge

With their expertise and in-depth knowledge of the shipping industry, shipbrokers can provide valuable insights – and enable you to make better, informed decisions.

And shipbrokers don’t stand still.

We keep abreast of key industry trends and changes, including new operators in the market and fleet expansion. This deep, up-to-the minute understanding of the shipping industry is applied by shipbrokers every day when working with clients.

Access to owners across the market… and to a diverse fleet

At Douglas Maritime, we have extensive networks and relationships with shipowners and operates worldwide, providing charterers with access to a diverse fleet of vessels. We can source vessels for every requirement, from small coasters to Panamax vessels, to more specialised ships for unique cargo requirements.

Owners and operators can change, with new organisations entering the market and companies merging. Shipbrokers stay up to date with what is happening in the maritime industry and will  identify the best carriers for your route and project… and the most cost effective solution. If you are not involved in the market regularly, it may be difficult to access all solutions available.

Just one call or email to an experienced shipbroker will open up access to a wide range of shipowners, right across the market!

Negotiations

Successful chartering involves intricate negotiations between charterers and shipowners, to ensure that favourable terms are reached for both parties. Vessel brokers serve as skilled negotiators – we leverage our industry knowledge and experience to secure advantageous agreements.

Whether negotiating charter rates, the terms of the charter party or additional services, the expertise of a vessel broker ensures that charterers achieve favourable outcomes while maintaining positive relationships with shipowners.

A shipbroker can lead the negotiation on your behalf and will work to secure favourable terms overall – and the best available rate. Shipbrokers understand the detailed contract terms and will talk these through with you, ensuring that roles and obligations are understood… in other words, what you are committing to (and when).

It’s important to note that a contract can be entered into and a fixture made binding without a document being signed. This is something we occasionally come across with clients who are new to shipping. Getting advice from a shipbroker at the start of the process is therefore crucial. 

Risk mitigation

Shipping carries with it a number of risks, from unpredictable weather to geopolitical challenges.

Shipbrokers play a vital role in risk mitigation by advising charterers on the potential risks associated with specific routes, vessels or cargoes. Our insight allows charterers to make informed decisions that minimize the likelihood of disruption and unforeseen challenges, safeguarding the success of their shipping operations. We work to plan the project and tailor the charter party accordingly, considering factors such as laycan and notice period. And we’ll provide advice on working with insurers, surveyors and other parties.

Shipbrokers will work with you to ‘design out’ as much risk in the planning phase as possible. However, things might still run as smoothly as you would like. Sometimes weather delays vessel movements, ships run late and cargo can be delayed. We have good relations with shipowners and we’ll work with all parties to find solutions quickly and effectively.

Demurrage

If cargo operations take longer than allowed in the contract, the charterer will be likely to pay the shipowner’s demurrage. A shipbroker can check these claims and work to minimise the costs.

Time and cost efficiencies

Chartering a ship involves many time-consuming tasks, including negotiations and achieving compliance. Brokers can streamline the process, doing much of the legwork and taking the strain for charterers: this means that charterers have more time to focus on their core business.

Want to discuss how we can support your project? Get in touch with Douglas Maritime here.