What does a shipbroker do?
A shipbroker is the intermediary who brings a cargo and a ship together and negotiates the terms of the charter. The job sounds simple. In practice it is market knowledge, judgement about counterparties and a lot of careful detail, all under time pressure.
The shipbroker's job
- Understand the principal's cargo or ship, and what a good fixture looks like for them
- Find the counterparties: ships for a cargo, or cargoes for a ship
- Screen the options on fit, economics and risk
- Negotiate offers and counters until main terms are agreed
- Issue the fixture recap and help draw up the charter party
- Follow the voyage: notices, laytime, demurrage and any problems
Types of shipbroker
| Role | Works for | Typical task |
|---|---|---|
| Charterer's broker | The cargo side | Finds ships and negotiates freight and terms for the charterer |
| Owner's broker | The shipowner or operator | Finds employment for the ship |
| Competitive broker | Either side, deal by deal | Covers the open market for whoever instructs them |
| Exclusive broker | One principal only | Handles all of a principal's business in a trade |
Shipbroker vs freight forwarder vs ship agent
A shipbroker arranges the charter of a whole ship, or a large part of one, and negotiates its terms. A freight forwarder arranges the logistics of a shipment for a shipper, typically smaller consignments booked on scheduled services, plus paperwork and inland transport. A ship agent (port agent) looks after a ship during its port call: berthing, clearance, crew matters and the statement of facts. On one voyage you may deal with all three.
How shipbrokers are paid
Brokers are usually paid a commission on the freight, hire, deadfreight and demurrage the owner earns, written into the charter party. A common level is 1.25% per broker, deducted from the owner's earnings, alongside any address commission the charterer receives. See our guide to commissions for how the numbers work.
What makes a good shipbroker
- Clear about whose behalf they act on, from the start
- Knows the ports, terminals and ships in the trade
- Shows the reasons behind a recommendation, not just a rate
- Precise in the recap: tolerance, laytime terms, clauses
- Stays with the voyage after the fixture
How CharterDeck works as a shipbroker
CharterDeck is a chartering and shipbroking company based in Istanbul. Our brokers work with our own market technology, which reads cargo orders and open positions into structured records and checks fit on size, type, gear, ports and laycan. People make the commercial decisions and negotiate the fixture.
Frequently asked questions
- Is a shipbroker the same as a freight broker?
- In ocean shipping, 'shipbroker' or 'chartering broker' is the usual term for someone who negotiates ship charters. 'Freight broker' is more often used for road freight.
- Who pays the shipbroker?
- Commission is normally deducted from the owner's freight or hire under the charter party, for each broker in the chain.
- Do I need a shipbroker to charter a ship?
- Not legally, but most charters are fixed through brokers because they know which ships are open, what the market is paying and how to write the terms.