Shipbrokers

Shipbrokers are intermediaries in the international shipping market who facilitate the chartering, sale, and purchase of ships and the carriage of goods by sea. They connect shipowners, charterers, operators, and financiers, helping to determine the terms under which vessels are hired or sold and cargoes moved.

There are two main specializations: chartering brokers, who fix vessels for cargoes or time charters, and sale and purchase brokers, who negotiate the sale and purchase of ships. Both provide market intelligence, price guidance, and arrange contractual documentation. Chartering brokers negotiate charter party terms such as freight rates, laycan and vessel eligibility, arrange fixtures, and supervise execution. S&P brokers advise on vessel values, coordinate inspections, and oversee ownership transfer and registration.

Brokers earn commissions, typically calculated as a share of the charter hire, freight, or sale price. Commissions are usually paid by the party engaging the broker and can be shared with co-brokers. Rates vary by market, contract type, and jurisdiction.

Industry structure includes large shipbroking houses and independent brokers. Prominent firms such as Clarksons and Fearnleys are well known, alongside many regional and specialized outfits. Professional standards are promoted by bodies such as the Institute of Chartered Shipbrokers, and brokers commonly participate in market networks and publications.

Contracts are documented in charter parties or sale and purchase agreements, with terms covering risk, liability, and insurance. The practice blends traditional negotiation with market data, analytics, and increasingly digital platforms for information and deal execution.