Sale and purchase brokers specialize in ship broking and their clients and customers are usually ship owners. As middlemen in the business of buying and selling ships, shipbrokers play a major role. They deal with ships that are a technically complex commodity and in an international market it is extremely volatile and subject to incredible swings. The brokers should have good knowledge of ships and their owners along with particular information of each individual ship and the existing market scenario as this helps them in advising their clients on its probable direction.
Dealing with New or ‘used’ Vessels
Building a new vessel is normally handled by a broker who specializes in contracting of new ships. These professionals have good acquaintances with the shipyards worldwide. They also know where to find yards with vacant building capacity and to acquire the best prices. Used or second hand vessels are usually marketed for sale through the ship brokering channels. Thus, highly specialized ship brokers within the market segment buyers seeking for tonnage can guide clients to get the best deal.
Prices vary with Ships Changing Hands
A ship broker may deal with new or “used” vessels, communicating between the shipyard and the purchaser in the former case, and between two owners in the later on. Since, ships change hands¸ the price may affect their profitability during their lives and it is here the responsibility of the broker is considerable. Ships are assets with asset and ship brokers know that they play a vital part in the business. During a ship’s life time, it can be sold several times. The value of a ship is determined by its condition, quality and market conditions. Ships are being sold almost every day and normally the ship brokers remain responsible for handling ship sales.
Professionalism Required for Getting the Best Price for Clients
In a ship sale transaction huge sums can be involved. Hence, expertise and great professionalism are required in this important business. The negotiation of price as well as any sale conditions is a crucial part of the broker’s remit. A broker can be instructed by either a seller of a vessel or a would-be buyer. At the time of representing a seller, the broker may seek customers either from his own contacts, in both the broking community, or among ship owners who operate same types of ship and may be looking to purchase.
The primary objective of shipbrokers is to get the best price for clients. The world of any ship sale and purchase broker quickens once a potential deal is in sight. The price and terms can be negotiated, and the contract prepared. Leading ship broking companies in Norway or elsewhere in the world always have a large number of ships on its books and satisfying the needs of the seller is relatively easy.
