Shipbroking Practice and Procedure

Affreightment (Time/Voyage) #

**Affreightment (Time/Voyage)**

* Relates to the hiring of a vessel for the transport of cargo #

* Relates to the hiring of a vessel for the transport of cargo.

* Time charter #

the shipowner rents out the use of the ship for a specific period.

* Voyage charter #

the shipowner rents out the ship's cargo space for a single voyage.

Agency Agreement #

**Agency Agreement**

* A contract between a shipowner and a shipbroker, where the broker acts as the… #

* A contract between a shipowner and a shipbroker, where the broker acts as the owner's agent for specific tasks.

* Can include tasks such as negotiating freight rates, arranging cargo, or organ… #

* Can include tasks such as negotiating freight rates, arranging cargo, or organizing repairs.

Agency Fees #

**Agency Fees**

* Fees charged by a shipbroker for their services as an agent #

* Fees charged by a shipbroker for their services as an agent.

* Typically calculated as a percentage of the freight rate or a fixed fee per se… #

* Typically calculated as a percentage of the freight rate or a fixed fee per service.

BIMCO (Baltic and International Maritime Council) #

**BIMCO (Baltic and International Maritime Council)**

* An international shipping organization that develops standard contracts and cl… #

* An international shipping organization that develops standard contracts and clauses for the shipping industry.

* Provides guidance on various aspects of shipbroking, such as freight rates, ch… #

* Provides guidance on various aspects of shipbroking, such as freight rates, charter parties, and ship sale & purchase.

Brokerage Commission #

**Brokerage Commission**

* The fee earned by a shipbroker for their services #

* The fee earned by a shipbroker for their services.

* Usually calculated as a percentage of the freight rate or the value of the shi… #

* Usually calculated as a percentage of the freight rate or the value of the ship or cargo.

Charter Party #

**Charter Party**

* A contract between a shipowner and a charterer for the use of a ship #

* A contract between a shipowner and a charterer for the use of a ship.

* Outlines the terms and conditions of the charter, including the freight rate,… #

* Outlines the terms and conditions of the charter, including the freight rate, route, and cargo details.

COA (Contract of Affreightment) #

**COA (Contract of Affreightment)**

* A long #

term agreement between a shipowner and a charterer for the transportation of cargo.

* Specifies the terms and conditions for multiple shipments over a defined perio… #

* Specifies the terms and conditions for multiple shipments over a defined period.

Draft #

**Draft**

* The vertical distance between the waterline and the bottom of the ship's keel #

* The vertical distance between the waterline and the bottom of the ship's keel.

* Indicates the amount of cargo that can be loaded on a ship, as deeper drafts l… #

* Indicates the amount of cargo that can be loaded on a ship, as deeper drafts limit the ship's ability to enter shallow ports.

Fixture #

**Fixture**

* The completion of a deal between a shipowner and a charterer #

* The completion of a deal between a shipowner and a charterer.

* Once a fixture is agreed upon, the terms and conditions are binding for both p… #

* Once a fixture is agreed upon, the terms and conditions are binding for both parties.

Freight Forwarder #

**Freight Forwarder**

* A company that organizes the transportation of goods on behalf of shippers #

* A company that organizes the transportation of goods on behalf of shippers.

* Works closely with shipbrokers, shipowners, and charterers to ensure smooth ca… #

* Works closely with shipbrokers, shipowners, and charterers to ensure smooth cargo movement.

Freight Rate #

**Freight Rate**

* The cost of transporting cargo from one point to another #

* The cost of transporting cargo from one point to another.

* Can be negotiated between the shipowner and charterer, and is often influenced… #

* Can be negotiated between the shipowner and charterer, and is often influenced by market conditions, such as supply and demand.

GOO (Gas Oil Online) #

**GOO (Gas Oil Online)**

* A pricing benchmark for marine gas oil #

* A pricing benchmark for marine gas oil.

* Used as a reference for calculating bunker fuel adjustment factors in shipping… #

* Used as a reference for calculating bunker fuel adjustment factors in shipping contracts.

LOI (Letter of Indemnity) #

**LOI (Letter of Indemnity)**

* A document issued by one party to another, promising to compensate for any los… #

* A document issued by one party to another, promising to compensate for any losses or damages incurred.

* Commonly used in shipbroking to cover risks associated with delivering cargo w… #

* Commonly used in shipbroking to cover risks associated with delivering cargo without presentation of original bills of lading.

Laytime #

**Laytime**

* The amount of time allowed for loading or discharging cargo #

* The amount of time allowed for loading or discharging cargo.

* Typically specified in a charter party and can be influenced by factors such a… #

* Typically specified in a charter party and can be influenced by factors such as port congestion or adverse weather conditions.

Maritime Law #

**Maritime Law**

* The body of laws, conventions, and regulations that govern maritime activities #

* The body of laws, conventions, and regulations that govern maritime activities.

* Addresses issues such as contracts, torts, and jurisdiction related to shippin… #

* Addresses issues such as contracts, torts, and jurisdiction related to shipping and navigation.

**NVOCC (Non #

Vessel Operating Common Carrier)**

* A company that offers cargo transportation services without owning or operatin… #

* A company that offers cargo transportation services without owning or operating vessels.

* Acts as a shipper and a carrier, often working with shipbrokers to arrange tra… #

* Acts as a shipper and a carrier, often working with shipbrokers to arrange transportation.

**OBO (Ore #

Bulk-Oil)**

* A type of multipurpose vessel designed to carry dry bulk cargo, such as ore, a… #

* A type of multipurpose vessel designed to carry dry bulk cargo, such as ore, and liquid bulk, such as oil.

* Provides flexibility for shipowners and charterers in response to changing mar… #

* Provides flexibility for shipowners and charterers in response to changing market conditions.

Panamax #

**Panamax**

* A classification for ships that can pass through the Panama Canal #

* A classification for ships that can pass through the Panama Canal.

* Refers to vessels with a maximum beam (width) of 32 #

2 meters and a maximum draft of 12.04 meters.

S&P (Ship Sale & Purchase) #

**S&P (Ship Sale & Purchase)**

* The process of buying and selling ships #

* The process of buying and selling ships.

* Involves negotiations between the buyer and seller, with shipbrokers often act… #

* Involves negotiations between the buyer and seller, with shipbrokers often acting as intermediaries.

Suezmax #

**Suezmax**

* A classification for ships that can pass through the Suez Canal #

* A classification for ships that can pass through the Suez Canal.

* Refers to vessels with a maximum draft of 20 #

1 meters, allowing them to navigate the canal's shallowest points.

TCE (Time Charter Equivalent) #

**TCE (Time Charter Equivalent)**

* A measure of the earnings generated by a time chartered ship #

* A measure of the earnings generated by a time chartered ship.

* Calculated by multiplying the daily time charter rate by the number of availab… #

* Calculated by multiplying the daily time charter rate by the number of available days and then subtracting operating expenses.

**TEU (Twenty #

Foot Equivalent Unit)**

* A standard unit of measurement for containerized cargo #

* A standard unit of measurement for containerized cargo.

* Represents the volume of a 20 #

foot long container, with one TEU equal to approximately 39 cubic meters.

Voyage Estimate #

**Voyage Estimate**

* A detailed calculation of the costs and revenues associated with a specific vo… #

* A detailed calculation of the costs and revenues associated with a specific voyage.

* Includes items such as fuel, port charges, and crew wages, and is used to dete… #

* Includes items such as fuel, port charges, and crew wages, and is used to determine the viability of a voyage.

Worldscale #

**Worldscale**

* A standardized system for calculating tanker freight rates #

* A standardized system for calculating tanker freight rates.

* Provides a uniform basis for comparing freight rates, making it easier for shi… #

* Provides a uniform basis for comparing freight rates, making it easier for shipowners and charterers to negotiate deals.