8 2.2 CHARTERERS In the charter market,the most important decision of a charterer is whether to go spot or buy a time charter.If the latter choice is made,the question is what is the best charter duration.Although this type of decision is tactical in nature(for it depends on expectations largely influenced by the state of the market),some charterers base it on strategic considerations and are not likely to change it significantly in view of charter market fluctuations:as an example,a particular oil company,in addition to being a ship owner, satisfies a large part of its requirements by chartering from independents mainly in the term market,and is not likely to change that philosophy as a result of the state of the market. Of course,a charterer in the term market can (if he wants)relet the vessel he has chartered,ie.Offer it in the spot market.This type of decision may make sense if the charterer has no actual other use for the ship during the period under consideration In the liner market,the spectrum of charterer decisions is usually confined to the selection of the liner company among the members of a cartel that provides better service to the shipper.The possible exception is if the scale of the shipment is large.In this case,it may make sense to "consolidate"freight and turn to the charter market as an alternative (ie. charter a whole ship if quantity warrants it). 2.3 BROKERS Ship brokers mediate between supply and demand of shipping services,fixing ships through single trip charters,time charters,contracts of affreightment and the like.They also mediate in the acts of sale and purchase of vessels,new or second hand and even in reorder deals.Such activities rely mainly on an efficient information collection process and ths modern communication media have revolutionized the business.Needless to say personal contacts play an all-important role. Efficient handling of data is of prime concern to brokers.In the process of fixing a client's ship the broker must present in an extremely short notice all available opportunities and help him select among alternative charters.The reverse process must be carried out for a charterer's demand;the available ships must be identified with all the relevant information concerning the ships'characteristics,location and other specific information,including of course the required fee. The sale of a particular ship also requires the compilation of technical data on the ship. More crucial is the identification of potential buyers.In the case of a client interested in purchasing a used ship of certain characteristics the data collection process is even more difficult.Advances in data processing allow reasonably sized brokerage houses to keep almost complete records of existing ships in CD stored databases that are compiled by specialized firms. Brokers are additionally called on to play a consultant's role for their clients.They might advise against a deal of sale,purchase or charter although this is against their short run interests,i.e.there is a loss of commission.This consulting activity is traditionally supported by the brokers'individual feel of the market,partly shaped by following the specialized literature,journals and reports.It is not often though that a shipping enconomist is employed in a brokerage house solely in a consulting capacity.As in every brokerage business,executives are valued for the business they bring and any consulting role that will only indirectly generate profits is secondary to the main profit generating function,fixing deals.8 2. 2 CHARTERERS In the charter market, the most important decision of a charterer is whether to go spot or buy a time charter. If the latter choice is made, the question is what is the best charter duration. Although this type of decision is tactical in nature (for it depends on expectations largely influenced by the state of the market), some charterers base it on strategic considerations and are not likely to change it significantly in view of charter market fluctuations: as an example, a particular oil company, in addition to being a ship owner, satisfies a large part of its requirements by chartering from independents mainly in the term market, and is not likely to change that philosophy as a result of the state of the market. Of course, a charterer in the term market can (if he wants) relet the vessel he has chartered, ie. Offer it in the spot market. This type of decision may make sense if the charterer has no actual other use for the ship during the period under consideration. In the liner market, the spectrum of charterer decisions is usually confined to the selection of the liner company among the members of a cartel that provides better service to the shipper. The possible exception is if the scale of the shipment is large. In this case, it may make sense to "consolidate" freight and turn to the charter market as an alternative (ie. charter a whole ship if quantity warrants it). 2. 3 BROKERS Ship brokers mediate between supply and demand of shipping services, fixing ships through single trip charters, time charters, contracts of affreightment and the like. They also mediate in the acts of sale and purchase of vessels, new or second hand and even in reorder deals. Such activities rely mainly on an efficient information collection process and ths modern communication media have revolutionized the business. Needless to say personal contacts play an all-important role. Efficient handling of data is of prime concern to brokers. In the process of fixing a client's ship the broker must present in an extremely short notice all available opportunities and help him select among alternative charters. The reverse process must be carried out for a charterer's demand; the available ships must be identified with all the relevant information concerning the ships' characteristics, location and other specific information, including of course the required fee. The sale of a particular ship also requires the compilation of technical data on the ship. More crucial is the identification of potential buyers. In the case of a client interested in purchasing a used ship of certain characteristics the data collection process is even more difficult. Advances in data processing allow reasonably sized brokerage houses to keep almost complete records of existing ships in CD stored databases that are compiled by specialized firms. Brokers are additionally called on to play a consultant's role for their clients. They might advise against a deal of sale, purchase or charter although this is against their short run interests, i.e. there is a loss of commission. This consulting activity is traditionally supported by the brokers' individual feel of the market, partly shaped by following the specialized literature, journals and reports. It is not often though that a shipping enconomist is employed in a brokerage house solely in a consulting capacity. As in every brokerage business, executives are valued for the business they bring - and any consulting role that will only indirectly generate profits is secondary to the main profit generating function, fixing deals