In the context of chartering, the most common “broker” is a “shipbroker”. In general, in shipping, a broker is a person who acts as a “middleman” between two parties and negotiates the terms of a contract into which the two parties enter. The broker acts as an agent and usually represents only one of the parties, negotiating with the other party directly or with another broker representing the other side. In addition to a shipbroker-who can be an owner’s broker or a charterer’s agent negotiating a charter-there are also other types of “brokers”, such as:
Sale and Purchase (S&P) brokers: negotiating contracts for the sale of a ship.
Ship’s agents: representing the shipowner and attending to the ship.
Loading brokers: finding a cargo for liner ships.
Insurance brokers: effecting insurance cover for the assured.
Brokers are remunerated by the principals either by brokerage (or commission) and/or by agreed fees.