Ship's Agents and Agency

Ship’s agents and
agency
Capt. Amin Al Qawasmeh
Title and Content Layout
• Definitions of agent
• Responsibilities of agent
• Duties of agent:
• Agent authority:
• Types of agents:
• UNCTAD
Definitions of agent
 Agent:
Any person (Natural or legal) engaged on behalf
of the owner, charterer, or the operator of the
ship per the owner of the cargo in providing
shipping services including but not limited to:
1. Negotiating and completing the sale or purchase of the ship.
2. Negotiating and supervising the charterer of the ship.
3. Collection of freight/hire and all related matters.
4. Arrangements for custom and cargo documentation and forwarding of

the cargo.
5. Arrangements for processing, procuring the documents and

performing all activities required to dispatch the cargo.
6. Organization arrival or departure arrangements of the ship
7. Arranging for supplies and services to ships while in port.
Purchase:‫مشتريات‬ , Procuring: ‫انجاز‬-‫ت دبير‬ Dispatch: ‫ ب سرعة وفاعلية‬, Frigate:‫ش حنة – اجور ا لشحن‬
Agent Responsibilities
• Drawing up the documents for the
custom and harbor services.
• Arranging the necessary fresh water

and provision.
• Arranging the necessary doctors for the

crew and medical assistant.
• Arranging for the bunker if needed.
• Arranging for necessary repairs.

• Conveying instruction to and from ship owners.
• Organization necessary contracts with stevedores.
• Collect frigate, cargo.
• Contracting shippers and receivers of the goods.
• In case of damaged cargo, or ship, arrange (at master request)

with insurance company survivors, workshop.
• Conveying: ‫ت حويل‬
Agent Duties
1. To perform his duties in person using skill and diligence
Diligence: ‫حذر‬
2. To use his special skills also. Disclose:‫ي كشف‬

Principal:‫ا لرئيس‬
3. To obey lawful instructions of his principal and to act in his principal interests. Profits: ‫ارباح‬
4. To disclose all information relevant to the agency to the principal avoiding any conflict of interest. Confidentiality:
‫س رية ت امة‬
5. To maintain confidentiality about matters communicated to his principal on requested.
6. To keep proper account of all matters and render them to his principal on request.
7. Not to make extra profits from the agency without disclosing them to his principal.
Ship’s agents
authority
 Agent authority:
• Actual Authority:
a. expressed – principal – agent
b. Implied
• Apparent authority:- principal- third party
1. Actual Authority:
Depends upon an agreement between principal and agent.

a. expressed actual authority:
If the authority actually confided in an agency by agreement (spoken/written) to execute a deed. (need
power of attorney). Power of attorney:‫وكا لة ت فويض‬
Deed:‫ف علي‬
a. Implied actual authority:
To do everything necessary for and reasonably incidental to the effective

execution of his duties.

• Apparent authority (ostensible authority):
Depends upon the representation made by the principal and third party.
Type of agents
Type of agents
1. Insurance agent, broker agent, purchasing agent, cargo agent….etc
2. General agents: Has the authority to represent his principal in all business
matters of all kinds.
3. Special agents:
Someone has authority to act only on a particular occasion or for a

particular purpose (for a particular time)
 A special agent can bind his principal if he acts within the expressed instructions of the
principal. (master and port agent).
 Port agent: ( chartered agent (owner agent, husbandry agent, protecting agent)
 Obligation: it’s as a recommendation not mandatory:

 The shipping agent must:
1. Discharge his duties to his principal with honesty, integrity, and importantly.
2. Apply a standard of competence in order to perform in a conscious diligent and efficient

manner all services undertaken as a shipping agent.
3. Observe all national laws and other regulations relevant to the duties he undertakes.
4. Exercise due diligence to guard against fraud practices.
5. Exercise due care when handling monies on behalf of his principal.
Conscious:‫وعي‬ fraud:‫احتيا ل‬
UNCTAD: United Nation Conference on
Trading Development.
 Objective of minimum standard for shipping agency as UNCTAD:
1. To prorate a high-level professional education and experience, essential to provide

efficient services.
2. To encourage the operation of a financially sound (good) and stable shipping agency.
3. To uphold a high standard of business ethics and professional conduct among shipping
agencies.
4. To contribute to combating maritime fraud by ensuring improved services by better-

Uphold:
qualified shipping agencies.
contribute:
5. To provide guidelines for national authorities, and professional associations in
Combating: ‫ي قاوم‬
establishing and maintaining a sound shipping agency.
ethics:‫الق‬
 UNCTAD deals with:
- FONASBA: Federation of National Association of Ship Brokers and Agencies.
- ICB: Institute of Chartered Ship Broker.
- BIMCO: BIMCO stands for “The Baltic and International Maritime Council”
- Multi Shipping Agencies Network.

 Professional Qualification:
• Professionally qualified shipping agency must:
a. Have obtained necessary experience in profession by working 3 years in responsible capacity

with a qualified shipping agent.
b. Be of good standing and be able to demonstrate his reputation and competence, for example
by positive of at least two agents of good repute who are also in his business and his
geographical area of activities.
c. Have passed such professional examination.
• In case of a corporate entity employ such persons professionally qualified as above to ensure
the proper performance of the entity function as agent.
 Financially sound shipping agent must:
1. Have financial resources adequate to its business evidenced be references.
2. Have adequate liability insurance through an internationally recognized insurance company or mutual club
to cover all professional liability.
3. Ensure that the above financial standards continue to be met (this is achieved through annual scrutiny of
shipping agents by national authority/ Professional association).
Reverenced: mutual: ‫مشترك‬
Achieved: scrutiny:‫مق ّيمون‬

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Ship’s agents and

2. Negotiating and supervising the charterer of the ship.

3. Collection of freight/hire and all related matters.

4. Arrangements for custom and cargo documentation and forwarding of

5. Arrangements for processing, procuring the documents and

6. Organization arrival or departure arrangements of the ship

7. Arranging for supplies and services to ships while in port.

• Arranging the necessary fresh water

• Arranging the necessary doctors for the

• Arranging for the bunker if needed.

• Arranging for necessary repairs.

• Organization necessary contracts with stevedores.

• Collect frigate, cargo.

• Contracting shippers and receivers of the goods.

• In case of damaged cargo, or ship, arrange (at master request)

2. To use his special skills also. Disclose:‫ي كشف‬

a. expressed – principal – agent

• Apparent authority:- principal- third party

Depends upon an agreement between principal and agent.

To do everything necessary for and reasonably incidental to the effective

• Apparent authority (ostensible authority):

1. Insurance agent, broker agent, purchasing agent, cargo agent….etc

Someone has authority to act only on a particular occasion or for a

 Obligation: it’s as a recommendation not mandatory:

2. Apply a standard of competence in order to perform in a conscious diligent and efficient

4. Exercise due diligence to guard against fraud practices.

5. Exercise due care when handling monies on behalf of his principal.

1. To prorate a high-level professional education and experience, essential to provide

4. To contribute to combating maritime fraud by ensuring improved services by better-

- ICB: Institute of Chartered Ship Broker.

- Multi Shipping Agencies Network.

• Professionally qualified shipping agency must:

a. Have obtained necessary experience in profession by working 3 years in responsible capacity

c. Have passed such professional examination.

Reverenced: mutual: ‫مشترك‬

Achieved: scrutiny:‫مق ّيمون‬

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