shipbroking & chartering practices•αρινός Κύκλος... · chartering through the...
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SHIPBROKING &
CHARTERING PRACTICES
AN INDUSTRY PERSPECTIVE
FOR UNIVERSITY OF PIRAEUS
SPRING 2013
Vasilis Mouyis
Doric Shipbrokers S.A.
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What is Chartering?
• Transactions between Ship and Cargo Owners
• Shipowner
– Employment type and duration
– Counter-party assessment
– Prevailing market conditions…
• Charterer
– Freighting of cargo
– Vessel and Owner evaluation
– Optimal freight execution considering the
market…
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And Shipbroking?
• The intermediation medium that
consummates transactions.
• Shipbrokers are employed by
shipowners and charterers
respectively to undertake
negotiations.
• Post fixture servicing and charter-
party drafting
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Chartering through the Ages to
Present
• Transformation through the early days of commerce
• Baltic Exchange the former common denominator of chartering transactions.
• Efficient communications and chartering expertise dispersed across the globe
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• Market the vessel to their contacts
inviting offers (circular)
• Collect and evaluate cargo
requirement workability for ship
• Calculate earnings – Net Time
Charter Equivalent (TCE)
Shipbroking Role in the Chartering Domain As Owners Representative
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• Recommend / guide shipowner as to
the pertinent potential employment
• Upon Shipowner’s decision evaluate
standing/reliability of Charterer
• Initiate Negotiations
Shipbroking Role in the Chartering Domain As Owners Representative
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• Market the Cargo
• Collect proposed ships & check their
suitability in commercial and
technical terms
• Screening of Owners / Vessels
• Calculate the cost of freight – Net
Voyage Equivalent
• Initiate Negotiations
Shipbroking Role in the Chartering Domain As Charterers Representative
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Shipbroking Role in the Chartering
Domain – Negotiations
• Indication
• Firm Offer
• Counter Offer
• Fixing on subjects including details
• Recapitulation of Main Terms Fixture
(Recap)
• Negotiation/Agreement of details
• Final Recap
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Trends in the Field of Chartering
• Voyage Chartering
– Single voyage & COA’s
• Time Chartering (TC)
– Single trips and period charters
– Profit Sharing Agreements
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Trends in the Field of Chartering
• Role of operators
– Booking cargoes (COA’s)
– Service Traders for forward sales
– Chartering-in ships on long period
– Speculators or service providers?
– Expertise and reputation paramount to
their success
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Trends in the Field of Chartering
• Derivatives (FFA’s)
– Hedging or Speculation
– Over-The-Counter or Cleared
– “Paper Trading” relevance to the
physical world
– Psychology and the forward curve
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Trends in the Field of Chartering
• Baltic Exchange Indices
– Baltic Dry Index (BDI)
• BCI / BPI / BSI / BHSI
– Settlement of FFA’s
– Chartering Tools (index linked) and
challenges ahead
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BDI CURVE 1985 TO PRESENT
GOES INTO
TAILSPIN
HITTING A LOW
OF 647 IN FEB
‘12…
2003 – 2008 THE SUPER
CYCLE PEAKS AT
11,793!!! STARTS AT 1000 POINTS IN 1985 BDI YESTERDAY
08TH APRIL 2013 :
858
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Chartering the Human Touch
• Skills to be developed and nurtured
– Information seeking: out of the box
– Analytical: collate and analyze market
data and trends
– Relevant legal and regulatory
developments: sharpening C/P technical
proficiency
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Chartering the Human Touch
• People Skills
– Emotional Intelligence (EQ)
– Communication & negotiating
– Networking
• Reputation
– Integrity: “Our word is our bond”
• A combination of Science and Art: the
difference man makes to ship and cargo
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From Desk to Ground
What they Don’t Teach You at
Harvard Nor
University of Piraeus …
Thanks for your Time & Attention!