There are about six hundred or so shipbroking companies all over the world professionally and regularly involved in sale or purchase of ships. These are highly specialized entities, whose main clients tend to be shipowners, as well as traders, chartering brokers, maritime industry professionals and those, who are looking to become the shipowning companies, investors interested in entering shipping business or banks involved in ship finance. Well, we are one of them, but somewhat different.
The ship is a commodity which is technically complex and international shipping market is sometimes extraordinarily volatile and subject to amazing swings. Our task is, therefore, to study the market on a daily basis, to know its players, to talk regularly with an amazing number of shipowners, charterers, bankers, investment funds, potential buyers and other brokers around the world. We are keeping and updating our huge database of various vessels ready for sale, inquiries to be covered, as well deals record lists for the ships reported as sold worldwide and prices achieved.
As our fellow shipbrokers, we are working for commission, which is decently small amount compared to the deal value. Industry accepted a standard of 1% of sold ship price, however on certain occasions fixed lumpsum remuneration is agreed. Our commission usually paid by sellers after delivery of the ship and collection of the full purchase price. We are paid on "no cure - no pay" principle, i.e. if and when the deal is fixed and completed, thus, we are always bargaining for the deal to come through and making sure the smoothest delivery of the vessel between the buyers and sellers is achieved. Shipbroking is about finding the compromise and offering solutions to oil the deal for common success of buyers and sellers. It is important for us to have wide knowledge and daily use the negotiation skills, to know specifics of shipowning and ship management, chartering for various types of ships, shipping law, maritime economics, ship building and ship repair peculiarities, and most importantly, the right people within the industry. In fact, we tend to be small encyclopedias of shipping business and always ready to share this knowledge with our customers if they need our expertise and advise.