Opportunities in commercial shipping

Merchant Shipping 

Merchant shipping is the backbone of the global trade, it involves the transportation of goods on a large scale through various modes. Merchant shipping is primarily a business endeavour focused on utilizing ships effectively for profit. It includes ship owners, managers, operators, marine agencies, broking houses etc.

For ships to continue operating, ship owners and managers need to transport goods from one place to another place which can be achieved by connecting with shippers who want to ship their products. 

Within merchant shipping there are various departments which help in smooth functioning of the vessels. Some of them are:

1. Commercial Department
2. Quality and Safety
3. Technical
4. Operations
5. Crewing

And many more common like finance, HR, procurement etc.

One of the most sought after department in companies is the commercial department as they decide the cargo fixtures and where a vessel would go. The persons in this department have a lot of influence on the working of the vessels and apparently get paid handsomely which leads to a lot of professionals wanting to join this department. 

In this blog, we are trying to give a glimpse on various aspects of commercial department and how could a person join in this department. 

Commercial Department in shipping. 

The commercial shipping department plays a vital role in maritime industry. It manages the cargo fixtures, negotiate charter agreements, analyze market trends, and ensures regulatory compliance. It plays a pivotal role in optimizing operations for the vessels, maintaining customer relations, and driving profitability in the competitive world of maritime trade.

Departments in Commercial Shipping

       1. Pre-Fixtures (Deals, Negotiations and contracts)

It refers to the preliminary discussion, negotiations between the charterers (Charterers are basically the persons who are seeking to hire a ship) and the ship owners/operators (Ships owners/operators are the one who provides the vessel) before finalizing a charter agreement. Pre-Fixture also involves drafting charter party agreements, which outline terms and conditions governing the entire voyage.

Charter Party: It is a legal agreement to define the T&C’s under which the vessel is chartered for a voyage period. It includes (vessel details, charter period, charges of the freight, details for the cargo, payment terms, disputes etc.) 

      2. Operations department

The operations department in the commercial shipping industry is responsible for the practical management of vessels. They oversee voyage execution, crew management, cargo handling, safety, compliance, and maintenance. Their duties encompass budgeting, voyage planning, emergency response, and the integration of technology. This department plays a vital role in ensuring the safe, efficient, and compliant transportation of cargo by sea, while also adapting to evolving environmental regulations and industry standards.

      3. Post Fixtures (Claims, Loss, demurrage, insurance etc.) 

Post Fixture Operations refers to the activities which is done after the charter agreement has been finalized. This includes cargo planning, operations, voyage execution (planning, navigation, safety etc.), claims financial transactions, voyage analysis etc.

Various Designations in commercial shipping

While there are many designations in commercial shipping but we have highlighted some of the more common one’s 

Voyage Manager: Responsible for planning, coordinating, and overseeing specific sea voyages for various vessels. They manage various aspects, including route planning, cargo operations, crew management, safety compliance, and cost control to ensure efficient, safe, and profitable voyages. 

Associate Voyage Manager: Basically, AVM will be responsible to execute the voyages in the most optimum manner in compliance to the charter party terms, international and local regulations in close collaboration with all the stakeholders and through various modes includes pre fix, voyage fixture, execution and claims management. 

Vessel Operator: A vessel operator is responsible for the day to day planning and execution of assigned vessel voyages. Involved in various internal and external communication and overall accountable for each voyage from planning till documentation. 

Laytime Analyst/Associate/Specialist: Responsible for calculating and managing the time allocated for loading and unloading cargo, ensuring compliance with contractual agreements and minimizing demurrage or detention costs for delays. Their role is critical in resolving laytime-related disputes and ensuring the smooth execution of shipping contracts.

Ship Broker: Act as intermediaries between cargo owners and ship owners or management companies for vessel charters. They facilitate the fixing of vessels for cargo owners or the securing of cargo for ships, depending on the party they serve. Some brokers work with both cargo owners and ship-related companies simultaneously.

Trainee Broker: A trainee broker works under the supervision of the senior broker to gain knowledge and will do market analysis, interaction, assist the broker in various job role. 

CP Analyst:  He focuses on understanding and managing the terms and conditions outlined in charter party agreements, which govern vessel usage.

Claims Analyst/Specialist: Claims Analysts specialize in resolving disputes and handling claims related to the shipping operations. It can be categorised in various division like cargo claims, H&M claims, freight claims, insurance claims and general claims and disputes. 

Various Opportunities in Commercial Shipping

As discussed, many people want to enter into commercial department but are not sure how, when, where could they start their journey from. While we will discuss this in detail in another blog, we are happy to give you a glimpse of this in this blog

For Mariners: Mariners can enter in pre-fix, operations or post fix department but their skills gained serving on-board vessels are most used in operations department and hence many would get to a role of assistant voyage manager, voyage manager or operator and move up the ladder from there. 

However, there are many mariners in the pre-fixture and post-fixture department as well. In these departments, they would start as a trainee broker or broker and move up the ladder. If a senior mariner gets an entry he could also go as a charterer with principals. In post-fixture department, a mariner could also get into claims and then move up. 

Most of the times, deck officers are preferred because they also understand cargo operations but it’s not uncommon to have engineers in the commercial department. 

For Non Mariners: Like in any other department in shipping, many non-sailing personnel are welcome. There is no specific qualification required in this department however following skills are required to get an entry and more important progress further:

1. Communication
2. Negotiation
3. Networking
4. Co-ordination

And most importantly 

1. Common sense

These skills, along with a passion for the maritime industry, can lead to a successful career in Commercial shipping, even for those without a sailing background.

Conclusion:

In the vast realm of global trade, the Commercial Department of merchant shipping stands as a vital orchestrator of goods transport, offering myriad career prospects for both maritime and non-maritime enthusiasts. This industry can be a rewarding journey of growth from Junior Charterer or Operations Assistant, progress to roles like Chartering Manager, and then reaching high-level positions like Commercial Director, overseeing the strategic success of the commercial department in the merchant shipping industry. Essential skills, including communication, negotiation, and networking, pave the way for a rewarding journey in this sector, ensuring the world's continued access to essential goods. 

For further assistance or guidance related to merchant shipping or commercial shipping connect to us or visit our website 

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