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23-673: Sir John Pirie, 1st Baronet (1781 – 26 February 1851), was a British shipbroker and Lord Mayor of London . He was the largest shipbroker in London. In the 1830s he started to uphold Wakefield 's principles and became a founding director, and one of the largest financiers, of the South Australian Company . He was also a director of the New Zealand Company , and the East India Company . One of

46-826: A different set of skills and contacts. Dry Cargo brokers are typically specialists in the chartering of Bulk carriers , and are engaged to act either for a shipowner looking for employment for a ship, or a charterer with a cargo to be shipped. Dry Cargo brokers maintain large databases of vessel positions, cargoes, and rates, paying constant attention to the direction of the markets so as to advise their clients accurately as to how to maximize profits or minimize expenses. Dry Cargo shipping can, in general terms, be categorized by Vessel size: namely, Bulkers such as Capesizes , Panamaxes , and Handysize . Each size of vessel suits different types of cargo and trade routes/ports. Many owners, charterers, and brokers tend to specialize in one or other of these sectors. Tanker brokers specialize in

69-400: A shipowner has a vessel to sell or is looking for a vessel to acquire, the shipbroker will scour the market for buyers, or for suitable sales candidates, discuss with potential counterparties or their broker the main points of the sale transaction and eventually negotiate all of the details, usually based on a standard contract. During such proceedings, shipbrokers not only negotiate the price of

92-485: Is a non-maritime contract and not within the Admiralty jurisdiction because it is insufficiently related to any rights and duties pertaining to sea commerce and/or navigation. The property passes to the buyer when the ship has been completed. To avoid difficulties, provision can be made for the property to pass in stage in the process of development and construction. It is different from most hire-purchase agreements where

115-797: The Worldscale Index ; the Worldscale Association publishes flat rates annually. For some specific voyages, such as named voyages ( i.e. from A to B) and for specialist ships, like LNG tankers (a highly specialized sector of the tanker market), freight rates can be agreed on a lumpsum (or dollar per ton) fixed rate between both parties. Container brokers specialize in the chartering of container ships and provide container shipowners and charterers with market-related information and opportunities. Shipping Futures brokers specialise in negotiating maritime futures contracts . Shipbuilding contract Shipbuilding contract

138-457: The chartering of tankers , which requires a different set of skills, knowledge and contacts from dry cargo broking. Tanker brokers may specialize in crude oil, gas, oil products or chemical tankers. Tanker brokers similarly negotiate maritime contracts, known as charter parties . The main terms of negotiation are freight / hire and demurrage . Oil being a fast moving trade, freight rates for crude oil tanker charters are most commonly based on

161-483: The first three ships despatched in 1836 to found the new colony of South Australia was the 105-ton two-masted schooner named John Pirie . Pirie was elected Sheriff of London for 1831–32 and Lord Mayor for 1841–42. He was created a baronet, of Camberwell in the County of Surrey, in 1842 on his retirement as Lord Mayor. Pirie had no children and died at Champion Hill, Camberwell on 26 February 1851. Although he

184-689: The Lord Mountevans . The Institute of Chartered Shipbrokers sets educational standards throughout the industry worldwide, whose Fellows are accorded the privilege of using the post-nominal letters FICS. Sale & Purchase ("S&P") brokers handle the buying and selling of existing vessels in the secondhand market or contract new ships (called newbuildings in industry parlance ) from shipbuilding yards . S&P brokers promote opportunities and discuss market trends with shipowners, charterers, investors and bankers, as well as reporting on market sales, vessel values, market trends and activity. When

207-407: The agreed place of delivery. The buyer may choose any place to take the delivery and the costs are for his account. The time of delivery is normally stated and treated as an essential term of the contract. If it is not mentioned or it is not an essential term, the builder should deliver the completed ship within a reasonable time . “Reasonable” will be determined case by case. Shipbuilding contract

230-413: The buyer has the right to reject the ship if it fails to meet up with the required standard. The buyer has the right to examine the complete property before he is obliged to signify acceptance. He has no right to reject after accepting the delivery, but only to redress if he discovers fault is by way of damage. The builder must notify the buyer the ship’s readiness for trials which will be taken place at

253-412: The completed ship. It is suggested that builder should take out an insurance cover before the delivery of ship. If the buyer cannot fulfill the payment, the builder may: The buyer may want to exit from the contract due to change in market situation or financial situation. When the builder had made use of his contractual remedy to cancel the contract for the future, the buyer’s default indeed will trigger

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276-644: The contract. Shipbuilding contract are constructed within the framework of standard contract forms amended by the contractual parties to meet their particular requirements. The choice of form will be based on the influence of trade association which the builders belong to. There is no requirement that a shipbuilding contract should be concluded in writing, it will be also legally enforceable in oral provided that necessary formal elements are present. The main terms of an agreement, such as expenditure, timescale and risks involved in shipbuilding, are better to record in written form. In order to create an enforceable agreement,

299-643: The customs-house. They collected the freight on vessels brought into port and took an active hand in the management of all business matters between ship-owners and merchants, whether shippers or consignees , for which they were paid a fee. In major British ports, ship-brokers were also usually insurance-brokers. Some brokerage firms have developed into large companies, incorporating departments specialising in shipping's various sectors, e.g. Dry Cargo Chartering, Tanker Chartering, Container Chartering, Sale & Purchase, Demolition, Futures and Research; other " boutique " shipbroking firms concentrate on specific sectors of

322-418: The essential elements for an agreement to form a legally binding contract must be presented, they are: Where all these elements are present, a legally binding contract comes into effect. Otherwise, if any of the elements are missing, there is no legally binding contract. The duty of a builder is to complete the new building ship in accordance with the design and specification given by the buyer. He must ensure

345-412: The global shipping industry . Shipbrokers are specialist intermediaries/negotiators (i.e. brokers) between shipowners and charterers who use ships to transport cargo, or between buyers and sellers of vessels. In the 19th century, it was the work of ship-brokers to procure goods on freight or a charter for ships outward bound. They also went through the formalities of entering and clearing vessels at

368-449: The guarantor’s liability and make the letter of guarantee operative. Moreover, if the buyer fails to take delivery, the builder may sue him for failure to accept. The builder has remedies available when the buyer breaches the contract. If the builder fail to deliver the ship, the buyer may: There may be an express term in the contract that the property is to pass in whole or partly by stages to buyer before delivery, this does not mean that

391-550: The late 20th century, it was commonplace for shipbrokers to cover more than one discipline, although nowadays the vast majority of shipbrokers specialize in a specific sector. Like many financial services, historically shipbroking grew out of the City coffee houses, becoming established at the Baltic Exchange; among its most famous members being Ernest Simpson , ex-husband of The Duchess of Windsor (died 1972), and Alderman

414-506: The materials he uses are fit for the purpose required and must carry out the building works with general standard of skills expected for a shipbuilder since the buyers rely on the builder’s skills and judgment when contract is being performed. He should also comply with the safety requirement laid down in the Merchant Shipping Act. Within the shipbuilding contract, the risk does not pass from builder to buyer until delivery of

437-402: The seller (vessel price is strengthening) giving each party a potential reason to cancel the transaction. When shipbrokers act on behalf of passive investors or financial buyers, they may also have to find time charter employment for the vessel and assist with practical arrangements such as the appointment of ship managers. Some S&P brokers specialize in the sale of ships for scrap , requiring

460-449: The seller has ownership of the property until the payment of the final installment. Under the Sale of Goods Act 1979 , this kind of agreement to sell ‘future’ goods may be a sale either by description or by sample. The sale of new building ship, which is large manufacturing project, is obviously undertaken by description. It is a condition to comply with the agreed description when performing

483-587: The shipping market. The principal shipping and shipbroking centres worldwide are London, New York City, Singapore, and Tokyo, as well as where many shipowners are based such as Oslo and Athens. Other places continue to develop in international shipping services, such as Hong Kong and Shanghai, Delhi and Mumbai, Copenhagen, Geneva, Genoa, Hamburg and Paris in Europe; and in North America, Connecticut, Houston, and Montreal are important shipbroking centres. Until

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506-402: The vessel on behalf of their principals but also all the logistical details for the transfer of the title and the vessel itself to the buyers (new owners), including the banking arrangements. During any negotiation, minor disputes may occur, which are to be handled in accordance with market fluctuation, i.e. the market may be moving in favor of the buyer (vessel price is softening) or in favor of

529-468: Was a past director of City of London and Tower Hamlets Cemetery Co he was buried at West Norwood Cemetery . The title died with him. Pirie Street in Adelaide and the city of Port Pirie were also named after him. This article about a Lord Mayor of London is a stub . You can help Misplaced Pages by expanding it . Shipbroker Shipbroking is a financial service , which forms part of

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