What Are Freight Brokers?---Freight Forwarders & Ship Insurance Broker(III)



Shipping market segmentation has created professional brokers in different professional fields who are mainly divided into the following categories:chartering broker, sale&purchase broker, freight forwarders (agent), insurance broker.
Freight broker refers to third-party professionals who specialize in ship sale, leasing, financing, and consulting services on behalf of others. As the technical and legal requirements for shipping transactions are far more complex than those of other industries, it is difficult for both parties to successfully complete the transaction. There are professional brokers to provide services, just as ordinary people must hire a lawyer to fight a lawsuit. 

Shipping market segmentation has created professional brokers in different professional fields who are mainly divided into the following categories:chartering broker, sale&purchase broker, freight forwarders (agent), insurance broker.The last blog we introduced Sale&Purchase broker,today it is about freight forwarder and insurance broker.

Freight Forwarders

Freight forwarders are generally not called "brokers" in industry, and freight forwarders generally serve the regular shipping (liner) market. Almost all international freight forwarders' business scope is "sea and land international freight forwarders, booking space, warehousing, and it is an intermediary behavior that booking space on behalf of their customers. Many freight forwarders use logistics network service to do marketing and develop customers.There are about 2000 global freight forwarders customers in JCtrans Logistics Network,they can cooperate with each other in better conditions.What is different from typical charter brokers is their usual cargo volume is not enough to book the entire ship, only certain seats.

The regular shipping (liner) market, is dominated by container ships, composed of less suppliers (liner companies or liner alliances) with large pricing power and thousands of shippers who lack bargaining power. In order to prevent liner alliances or liner companies from monopolizing the shipping market, governments of various countries have a certain degree of intervention in the international liner market. The United Nations also has international conventions to restrict the pricing behavior of international liner conferences. 

In the liner shipping market, shippers generally cannot afford to rent an entire container ship. Most of them may need to LCL to complete the cargo transportation, and then integrate the entire ship's volume through the freight forwarders in every level. Each liner company through its freight forwarder to publish the freight rate table, and the shipper or the freight forwarder selects the liner company and uses the liner company’s B/L to rent a small part of the space. The freight forwarder integrates the cargo volume of each cargo owner to form a joint force to negotiate a relatively favorable freight rate from the liner company, and then rely on their industry experience and knowledge to deal with the import and export of goods, such as land trailer transportation, Customs clearance and other related work.

Ship Insurance Broker
Ship insurance brokers are brokers who specialize in providing maritime cargo and ship insurance services. They are reviewed and supervised by the government commission. Once the license is obtained, maritime cargo and ship insurance are only part of their business scope.

The ship insurance market is a branch of the shipping market, which can be subdivided into property insurance and liability insurance. The largest and most concentrated marine insurance market in the world is in London, which is the global marine insurance information center. Lloyd's in London is called the World Insurance Aircraft Carrier. It has a history of more than 300 years and is the most influential insurance organization with a long history in the international insurance industry. It is not an insurance company, but the world's largest shipping insurance trading market composed of more than one hundred insurance consortia. The members of Lloyd's are not only insurers, but also a considerable number of insurance brokers. Relying on these insurance brokers linked to the interests of Lloyd's, Lloyd's insurance market can obtain high-quality insurance contracts.
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