• Diploma in Shipping Operations and Management (Level 5)

Shipbroking Principles and Practice

Main aims of the Unit

The main aim of this unit is to introduce learners to the work and practice of the shipbroker with particular emphasis on developing a clear knowledge and understanding of the activities of the chartering broker.

Learning Outcomes for the Unit

Upon successful completion of the course students will be able to:

  • Identify and describe the work, types and functions of a shipbroker.
  • Distinguish between different charter parties
  • Describe chartering procedures and be able to understand selected chartering terms and abbreviations.
  • Understand relevant clauses of voyage and time charter documents.
  • Comprehend the purpose and role of selected shipping organisations
  • Appreciate the need to calculate voyages estimates
  • Undertake simple laytime calculations and understand laytime procedures

Learning and teaching methods/strategies used to enable the achievement of learning outcomes:

Learning takes place on a number of levels through lectures, class discussion including problem review and analysis. Formal lectures provide a foundation of information on which the student builds through directed learning and self managed learning outside of the class. The students are actively encouraged to form study groups to discuss course material which fosters a greater depth learning experience.

Entry Requirements

  • Certificate in Shipping Operations and Practice
  • An approved Certificate or Diploma in a relevant area of study

Relevant experience is taken into consideration for students 21 years of age and over who have not completed any formal qualifications.

Main Topics of Study

  • Definition of a shipbroker
  • Functions of a shipbroker
  • Types of shipbrokers
  • Chartering brokers and principals
  • Types of charter party
  • Voyage and time charters.
  • Chartering procedure: investigation, negotiation, post-fixture work.
  • Key elements in negotiations.
  • Ethics and market practices
  • The Baltic Code
  • Elements and relevant clauses of charter parties
  • Firm offer for a voyage charter
  • Voyage charter fixture reportage and interpretation.
  • The Time Charter party
  • Documents
  • Elements and relevant clauses of charter parties
  • Firm offer for a time charter
  • Time charter fixture reportage and interpretation
  • The Baltic Exchange
  • BIMCO
  • FONASBA
  • The Institute of Chartered Shipbrokers
  • Elements of a voyage estimate
  • Reasons for calculation of voyage estimates
  • Use of voyage estimates
  • Laytime definitions
  • Time sheets
  • Statement of Facts
  • Laytime calculations

Indicative Reading for this Unit

Main Text

Shipbroking and Chartering Practice Gorton/Hillenius/Ihre/Sandevam Lloyd’s of London Press, London.

Alternative Text and further reading

Bes’ Chartering and Shipping Terms Lopez, Norman J. Barker & Howard Ltd., London.
Lloyd’s List (Market Reports)

Guideline for Teaching and learning time
(10 hours per credit)

50 Hours - Lectures / Seminars / Tutorials / Workshops:

Tutorial support includes feedback on assignments and may vary by college according to local needs and wishes.

50 Hours - Directed learning:

Advance reading and preparation / Class preparation / Background reading / Group study / Portfolio / Diary etc

100 Hours - Self managed learning:

Working through the course text and completing assignments as required will take up the bulk of the learning time. In addition students are expected to engage with the tutor and other students and to undertake further reading using the web and/or libraries.

Assessment methods

Final Examination: 70%
Coursework: 30%