The duties of a freight broker are numerous functions in relation to the client. There may be no contract with the principal, because traditional norms are in force, supported by a competitive way. The brokerage firm achieves an excellent business reputation, which helps to realize the terms of business. Freight broker surety bond cost can be 75,000 USD.
The main provisions of the guarantee of a freight broker
The maximum number of services is provided to customers. By traditional standards, the broker in negotiations achieves the best conditions for the guarantor, the service is provided within the limits of authority. The conclusion of the transaction leads to the execution of the necessary documentation by the broker. Making a freight broker bond application is quite simple, you just need to follow a certain algorithm of actions.
Chartering confirmations are exchanged. The original charters are made and signed by the parties. Copies are made for distribution to interested parties. The charter is made by a charterer broker. The specifics of cargo transportation are studied in detail. Proforma charters of principals are available. The broker must be fully aware of:
- the latest trends in shipping;
- in commercial documentation.
He needs to know the level of insurance premiums and restrictions on navigation areas, legal issues of maritime transportation, judicial and arbitration precedents, restrictive and discriminatory measures that affect shipping.
Assistance is provided to charterers, ship owners in the event of fulfillment of the terms of the transaction, if there are questions, the parties resolve through negotiations. Submission of notices, nomination of ports, options, etc. is carried out under the close supervision of the broker, ensuring the reliability and functionality of the transaction.
The order of collection, payment of freight, regulation of claims occurs through the exchange of information. The broker works at his own expense, receiving a commission when concluding a transaction. The brokerage percentage is subject to consideration and deduction from it of own expenses and telephone expenses, fax expenses. Email usage is enabled.
With a charter order for chartering, on behalf of the shipowner, the broker carefully studies the situation in the freight services market. Assistance was provided to the charterer, ship owner in an acceptable freight rate option. The use of information from printed publications is not prohibited.
With the help of circular letters, communication with other brokers, business contacts are supported. Requires knowledge of universal values in merchant shipping. The broker has comprehensive data on the procedure. This is the market conjuncture of the freight space. Trends, directions, level of freight rates, location of the free fleet in the right area, demand tonnage, source, way to get freight quotations. All stages are legal and justified. there are no claims to the broker.