ABSTRACT
This chapter discusses the substantial subject of shipbroking and chartering practice; namely the chartering negotiations. Some examples of special chartering routines are mentioned, while finally, the principles of chartering negotiations are introduced as guided by the Baltic Code of Ethics and Market Practice. A charterparty is a contract which is negotiated in a free market, subject only to the laws of supply and demand. The practice of negotiation in dry cargo and tanker chartering is similar, the main difference being the speed with which the offers and counter-offers are exchanged. The chartering negotiations in tanker market are speedier compared to those in the dry market. The investigation stage commences when a charterer directly or through a broker enters the market with an order. Furthermore, the charterer can compare the freight quoted with his own opinion about the proper freight level and can also compare it with suggestions made by other owners.
