Shipbrokers are intermediaries working between two parties either during sale and purchase or charter of vessels. Usually they work on behalf of an Owner, liaising with the broker from the other party in the transaction, however occasionally they work as sole brokers.
Specialists, such as ACL Shipbrokers, tend to deal with technical vessels which fulfil specific roles. For example, port tugs assist large, less manoeuvrable vessels entering or leaving port. Broking such vessels requires a good level of technical knowledge so as to advise both Buyers or Charterers on the right vessel for their requirements.
Why use a Shipbroker?
As the value of transactions in shipping are relatively high, negotiations in shipping inevitably tend to be pressurised. Shipbrokers take the sting out of these negotiations. It is much easier to represent a Client’s interests when you are not emotionally or financially attached to the vessel or project in question.
Brokers can overcome linguistic and cultural barriers either through working with their broking colleagues or their own specific market knowledge. This gives Owners and Charterers access to markets which they would not otherwise been able to access.
Second hand vessel sales
The majority of second hand vessel sales are conducted through shipbrokers. As a Charterer, working through a broker naturally creates a competitive market which ultimately is in your favour.
It is standard practice in the industry that Broker’s commission is paid by Sellers in a sale and Owners in a charter or tow.