To sustain their value to their clients brokers must be seen as a vital part of their client's business. This requires a proactive attitude that transcends just the transportation aspect of the client's business. Shipping has always been a pricing and marketing tool, and a commodity in itself, and now this is recognized. This presents the broker the opportunity to offer a wide range of value-added services. Ensure smooth operation of the contract Mediate any disputes before they get out of hand Bear witness to the above events in cases where the principal's personnel are no longer available to describe the intent of the contract Supply an arm's length link to a customer's competitors and to other industries so that they can compare and analyze how others view freight at any point in time.
Brokers come in three basic models.
The broker who is solely involved in the Owner's affairs is under attack now. The broker who looks after the transportation needs of his cargo interest client seems to be flourishing. Look for more synergies here though. Instead of teaching your cargo client the shipping business, or your friendly ship owner the freight market, you will have to learn their business. Always remember the principal is continually competing with someone.