With the progression in trade occupation in shipping, the function and responsibility of ship-brokers turned out to be more pronounced. Previously, the ship-broker used to act as the intermediary who would find ships for the merchants and cargoes for the ship owners who frequently accompanied the ship during the journey. On the contrary, the modern day shipping market includes ship owners with different fleet sizes and types and features, on one side and on the other side, the prospective purchaser who wants to purchase a ship for commercial purposes. The ship broker is the intermediary between these two. Therefore, the primary role of a shipbroking company is to smooth out the process of buying and selling ships for commercial operations.
The primary role of a shipbroking company is to smooth out the process of buying and selling ships for commercial operations.
Following the rule and ethics
Buying and selling ship is getting more complex day by day with the new laws and regulations concerning all necessary procedures to combat environmental issues like global warming, lengthy process of agreement and new terminologies. Ship broking, at present, is also becoming more and more complicated with national and international legal rules in connection with documentations needed. The regulations in the business are also increasing as there are numerous countries involved in ship broking. The contract between the ship owner and the buyers is becoming a time-taking process. New terminologies for this business have also evolved. The contract usually contains the explanation of the documents, the time and the terminology that both the parties agreed to use during the agreements. The European Union Commission also put regulations while dealing with professional qualifications with respect to international market.
Right information at the right time
Shipbroking is essentially a form of exchanging right info at the right time. It is an industry where the right information at the right moment is very crucial to flourish. Everyone associated with this industry, act as judge, collector and distributor of information to a large extent. Ship broker companies in Norway can be considered as an information network; a sound and professional network of people as well as up-to-date technology that ease out the information exchange process. A great amount of the information flow depends on the details of the fixtures. This means that the parties interested in a particular sea transport reach an agreement via negotiations. The significance of time is all the very vital these days when definite segments of the market see highly unstable fluctuations.
Specialization in specific segment
Ship-brokers usually specialize in a niche segment of the market; be it ferry, passenger vessels, dry cargo, RORO vessels, etc. The different market segments have unique eccentricity and the market behavior also varies a lot. This forces the practitioners to take up specializations.
Shipbroking, is essentially an opportunity based business. When new opportunities crop up, the broker goes on its toes to assist conclude the deal.