- New and adjusted services emerging in the shipping industry to enhance service levels and provide added value.
- Digitalization will provide the means to exchange information between the ship agent and the shipbroker in greater detail, and in real-time.
- The emerging landscape of digitalizing maritime operations is proving to be a challenge for them and therefore, must pay attention to new opportunities and ways of doing business.
- However, there lies an opportunity to also provide more enhanced and enriched information services to clients.
- Guidelines for Shipbrokers as well as ship agents include providing added value to assist the service providers in their resource optimization.
- Fulfilling a core role in contributing reliable spatial-temporal data is key to a ship agent and shipbroker’s success.
- In conclusion, ship agents and shipbrokers should both be fully connected to emerging digital communities to assure the highest possible value for their services.
Digitalization is now changing the environment in which ship agents and also shipbrokers operate, and we will see new and adjusted services emerging as ship agents and shipbrokers continue to strive to enhance service levels and provide added value to their principals, says an article published by The Maritime Executive.
Who are they?
A ship agent is the party representing the ship’s owner and/or charterer (the Principal) in port.
If so instructed, the agent is responsible to the Principal for arranging, together with the port’s operators, a berth, all relevant port, and husbandry services, tending to the requirements of the Master and crew, clearing the ship with the port and other authorities (including preparation and submission of appropriate documentation) along with releasing or receiving cargo on behalf of the Principal.
A shipbroker is a party acting as an intermediary between parties (the Principals) engaged in negotiating and accomplishing the sale and purchase or hire of a ship.
Exchanging Information made easier
The traditional role of a ship agent has thus been to arrange for the provision of services to the ship before, during, and after port visits.
The goal has been to ensure that the turn-around process for a port visit is made as fast as possible by eliminating unnecessary delays, optimizing the use of port infrastructure, and reducing the cost of operations to a minimum.
Digitalization will provide the means to exchange even more information, in greater detail, and in real-time.
The shipbroker will also benefit from new business opportunities arising from digitalization, such as having more up-to-date information about, for example, the status, position, and condition of ships to be sold and/or available for charter.
Challenges
Ship agents and shipbrokers constitute a substantial part of the workforce in the maritime sector.
A recent article by UNCTAD demonstrated how the role of the ship agent and the shipbroker is being challenged in the emerging landscape of digitalizing maritime operations.
Many other actors now seek opportunities to undertake some of the tasks that traditionally have been handled by the ship agent.
Others are establishing situational awareness capabilities to rival those that ship agents have traditionally been providing to their clients.
An urgent need, therefore, exists for ship agents and shipbrokers to pay attention to new opportunities and ways of doing business.
Opportunities
They now have an opportunity of capitalizing on the unique social capital they possess to ensure flexible and value-creating service provision and providing enhanced quality in information services, thereby attracting new clients as well as servicing their traditional ones.
The main focus for both ship agents and shipbrokers are the ships themselves.
Ship agents continually monitor how the port call and cargo movements (as well as passengers) are managed and progressed, whilst the shipbroker needs to know where the vessel is so that they can plan its next employment.
With digitalization, there is now an opportunity to also provide more enhanced and enriched information services to clients who have an interest in the status and movement of the ship and its cargo, such as carriers of on-carriage transport modes, the cargo owners, and potential charterers.
Smart Ports
As has been reported within the concept of the smart port, the port is conceived as a transshipment hub, and thereby not just a window to the sea, but also to several other related modes of transport.
Consequently, the smart port also entails the port being a provider of data to others, and thus not just a consumer of data streams.
As a result of this development, ship agents and shipbrokers can continue to have a very important role and, as a driver for change, should be asking themselves:
- Are there any other services that we may want to provide to our clients beyond those that we historically have been providing?
- Are there opportunities to expand our client base due to the additional connectivity that digitalization offers?
Guidelines for tomorrow’s ship agents and brokers
The aim is to ensure that the expectations put upon ship agents and shipbrokers by their clients can be assured through the provision of high-quality service delivered by qualified staff.
Further, special emphasis is also put on the response and responsibility of ship agents and shipbrokers to counteract maritime fraud. It is anticipated the new version of these standards will be published by UN/CEFACT in early to mid-2021.
The ship agent should continue to be the natural information source for the fleet operating center and the clients of shipping companies by providing increased transparency and predictability in the information flow associated with the plans and progress of port operations.
Similarly, the shipbroker should continue to proactively support shipping companies in identifying the immediate and long-term needs of ship capabilities by working ever closer with the cargo owners.
Key to future success
Key to the success of the maritime operations of tomorrow is that the involved actors should share situational awareness of planned and conducted operations along the maritime supply route, as part of the global transportation chain.
In a digital landscape, the ship agent and the shipbroker have a natural role in assuring quality in the information that they can provide and thereby also the services and capabilities that are delivered.
Ship agents and shipbrokers can therefore fulfill a core role in contributing reliable spatial-temporal data that will be of use for both the parties that are requiring services and capabilities and for those that provide such services and capabilities.
Conclusion
Full-blown digitalization of the maritime sector means that maritime informatics opportunities arise for every party involved.
This is both challenging and at the same time brings to the table new opportunities for traditional roles.
Further expansion of the actions of the ship agent and ship broker operations towards other means of transport would also be natural and in that way provide enhanced situational awareness for other means of transport and for the cargo owner.
Consequently, and building upon digitalization, ship agents and shipbrokers should both be fully connected to such emerging digital communities to assure the highest possible value for their services as well as becoming the drivers for establishing some of the communities that will connect the actors. This will transcend the traditional role of the ship agent and the shipbroker.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: The Maritime Executive
