E-PORTS Shipping Agency Column| Do You Have Three Misunderstandings About Shipping Agency?

Are all shipping agents called “chuandai”?

Is?it that only ship owners can hire shipping agents to serve them?

After arriving at the port, does?the ship only needs the service of one shipping agency?

Perhaps many people who are not very familiar with the shipping agents will have the above three points of view. In fact, this time in shipping agency column, we will voice for the shipping agency to correct some of the public misunderstandings of the agent. Shipping agency is just a broad definition and name for this industry. However, in the daily actual business, there will be many subdivisions. From the perspective of the principal, it is mainly divided into shipowner agent and charterer agent. With different names, there will be slight differences in each single agency business.

Usually, in one single shipping business, according to the voyage charter contract, the shipowner or charterer will appoint agents who are also known as shipowner agent and charterer agent. The biggest difference between them lies in their different principals. They need to provide different agency?services from the interests of principals.

First of all, let's look at the shipowner agent. Shipowner agent includes shipping agent in charge of ships’ entry and exit of port, normal loading and unloading operations. It also includes agents who?mainly engag in shipowner affairs, such as fuel replenishment, ship repair, crew services and other businesses, which have nothing to do with the loading and unloading of ships. When the ship operator has appointed a port agent for the ship and the shipowner has the needs of personnel, accessories and supplies related to the ship, the shipowner?will entrust a shipping management agent to do their own business.?In some cases, the resident agency?is also one of the functions of the shipowner agent. As literally, the shipowner agent also needs to arrange a person to be on board during the ship's time in port to deal with any problems that occur on the ship.

As we are familiar with, the main functions of shipowner agent and charterer agent are to handle the procedures related to the ship's entry and departure as well as goods loading and unloading. They need to plan the nodes and follow up the progress of relevant procedures according to the shipping date of the voyage from the interests of the principal, so as to speed up the turnover of the ship, reduce the transportation cost and improve the operating efficiency of the ship. In addition, although the charterer agent is appointed by the charterer, the relevant costs are paid by the shipowner.

In addition, you will hear something called “protection agency”?and "general agency", protection agency means the shipowner or charterer will entrust another agency after one party entrusted one agency?so as to protect their own interests.?For example, according to the contract, after the shipowner appoints the shipowner agent, the charterer can entrust another protection agency to follow their own interests. General agency often plays an important role in the marine insurance industry. It?will handle and follow up the progress of the case when the ship in accident is insured by the insurer, such as arranging insurance and negotiating on behalf of the insurer.

Therefore, it is arguably to say that the shipping agency industry is easy to enter but difficult to be proficient. Regardless of the diverse scope that the business involves, it requires us to directly switch our own roles and perspectives of thinking about problems frequently when we face different principals. Maybe this time you are the shipowner agency, but next time you become the charterer agency. As a result, we need to think about problems and deal with business from different standpoints to protect the interest of principals. It can be said that it is a double test of professional degrees and communication skills.