Movement of Cargoes by Sea

The Players:

i ) Exporters-Importers (Charterers) - Those who have cargoes to be carried.
ii ) Shipbrokers - Task to find ships to carry the cargoes.
iii ) Shipowners - Providers of the ships.
iv ) Ship Agents - Attend to interests of vessels at loading and discharging ports.
v ) Forwarding Agents - Book cargoes and make necessary arrangements for shipment on Liners (Ships Trading between specified ports or a regular basis), attend to Customs requirements and distribution of cargo by required method of transport.

The Process:

Charterers advise Shipbrokers of the cargo that they want shipped, date, loading/discharging ports, the freight (payment) that they are prepared to pay and other conditions.

Shipbroker contacts Shipowners he thinks has suitable ships available and if so, obtains an offer to commence negotiations with Charterers..

If these are successful, a document called a Charter Party (Contract) is completed incorporating the agreement

Provided everything goes right the ship loads and discharges the cargo as per the contract conditions and according to the agreement reached during negotiations, owners are paid the freight (payment) due to them.

The Shipbroker usually receives from Shipowners an agreed commission on the freight as their payment.