Why you should have a quality shipping agent when your vessel calling international ports

 

Prepared by:

Ashan Silva

AFNI (UK), CMILT (UK), ACIM (UK),

                                   Ex. MSc (Strategic Marketing), Ex. MBA, MBA, Reading for DBA

The main role of the ship agent is to represent the interest of ship owners, operators, or charterers when the vessel approach to respective port.

Captain is not much aware about the local conditions so, he himself can’t perform all bureaucratic operations alone. Hence, he needs some assistance from a specialized person called local agent who is well familiar to local conditions, rules, regulations, procedures, processes, etc.

Such agent should be able to represent said vessel owners, operators, charters, effectively and efficiently since the shipping company doesn’t have its own office in that port.

As a result, When the shipping company secured their voyage towards a particular port, they are nominating their agent to that port to represent them in that port.

Agent does all the communication with related local authorities and other private parties within that port to birth the vessel and to execute their desired operation until the vessel sail out from that port.

Agents dealing mainly with following authorities to handle their vessel. Authorities involved will differ according to legislation of that country. Generally, agents are involved with following authorities to clear the vessel for that port,

·         Port control – Vessel related documents, port clearance

·         Customs – cargo documents (cargo manifest, stores, etc.)

·         Immigration – Shore passes / Passport controls

·         Port health – Crew list / Crew health declarations if necessary

In addition, they are communicating with local shippers or consignees to arrange their cargo related documents which they need to load or clear after discharging (Arrival notices / Delivery orders / Freight certificates / Manifest reporting / Terminal system updates / etc.).   

Same time local agent should closely work with local terminals where said vessel supposed to berth.

·         Berth booking.

·         Regular Vessel ETA updates.

·         Updating terminal operating systems (cargo details).

·         Equipment booking and equipment allocation.

·         Monitoring of discharging / loading operation and reporting any mishandling timely.

·         Communication between terminal and vessel for any LOI (letter of protest), etc.

 

Meantime principals are also expecting, quality data from their nominated agent to safeguard their interest and operate their vessel effectively and efficiently within that port.

Specially covering areas such as

·         Quality statement of facts.

·         Reporting of cargo damages timely.

·         Cargo loading/discharging as per load or discharge list/plan.

·         Timely reporting of any cargo damage.

·         When necessary required advice (local conditions) to master to protect principals’ interest (Issuing of LOP’s (letter of protest) timely.

·         Daily cargo operation (Loading/discharging) updates.

·         Cargo operation completion updates with relevant documents.

·         Husbandry support if any.

·         Arrangement of Supplies (fresh water/ Fuel / Provisions / spares / etc.)

·         Arrangement of port clearances.

·         Pilots and other departure formalities to the vessel to depart the port without any delays, etc.

In addition, principals will have some other added benefits through a quality agent. Such as,

·         Advance notice about berthing delays (Due to port congestions / Delays in cargo readiness etc.).

·         Weather disturbances.

·         Delays due to labor issues.

·         Upcoming holiday notices. 

·         How to avoid additional cost towards the vessel (overtime hours / gang idling charges / etc.).

·         Special tariff discount rates in place (ESI discounts applicable for port cost), etc.

Through such advice vessel operators can save a lot and in addition it will help operators to plan their vessel more effectively and efficiently within their rotation.  

To achieve their desired target, principals should identify the most suitable agent in the market among lot of mush room agents those who doesn’t have even basic idea about their responsibilities.

Some agents are operating with minimal infrastructure facilities, unqualified staff, etc. to maintain their operating cost at the bare minimal level. Such agents are not bothered even to visit the vessel while the vessel at berth.

Due to vessel operating cost KPI’s or targets most of the principals are also mainly focusing upon their agency fee. So, as I explain above, agents those who are operating with minimal facilities only can offer this bare minimal agency fee.

With such agency operators, Quality of service is always a question mark now a days. Due to this principal, consignees, authorities, terminal, etc. are suffering in various ways. So, we came across incidents sometimes said entities are involving and advising such agents to clear their bottlenecks. Similarly, we came across instances where principals paid heavy penalties, vessel delays, arresting of vessels, etc.   

This is mainly because of inexperience or unprofessional agents those who are not capable or incompetent to safeguard their principal’s interest.

Most of such agents are just going for an on the spot solutions to mitigate the impact of that incident for that moment without identifying the rout cause for it.

But some principals are maintaining their standard and seeking for quality agency service for their vessel calls. They are not bothered to pay few dollars more to meet their standard. Such principals are aware this small additional agency fee can easily compensate by

·         Cost saving tips

·         Quick port rotations

·         No customer complains

·         Efficient terminal arrangements

·         No cargo short landing or over carriage

·         No cargo damages

·         Quality SOF reports

·         Timely advice to master and principals about the local conditions

·         Etc.

In addition, professional agent will commercially support through their international and local network to secure any available cargo towards their vessel or fleet which will be an added advantage to the principal concern.

So, by considering all above in my opinion professional agent is a must to any vessel owner or operator to safeguard their interest and to maintain their precious customer base & reputation in that port.       

                              

 

 

 

 

 

 

 

 

 

 

THANK YOU

18^th July 2021

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