Broker's responsibility to the principal

A broker has a number of responsibilities to their principal, including:

• Loyalty: The broker must act in the best interests of their principal at all times. This means avoiding any conflicts of interest and not disclosing confidential information to third parties.
• Skill and care: The broker must exercise a reasonable degree of skill and care in carrying out their duties. This includes keeping up to date with market developments and providing accurate information to their principal.
• Transparency: The broker must be transparent with their principal about their fees and any other commissions they may be earning. They must also disclose any potential conflicts of interest.
• Accountability: The broker is accountable to their principal for their actions. If the broker breaches any of their duties, their principal may be able to sue them for damages.

Here are some specific examples of the broker’s responsibilities to the principal in the context of ship chartering:

• The broker must identify and source suitable ships for the charterer that meet their specific requirements.
• The broker must negotiate the charter contract on behalf of the charterer, securing the best possible terms and conditions.
• The broker must keep the charterer informed of market developments and any potential risks to their charter.
• The broker must monitor the vessel’s performance and ensure that the shipowner is meeting their obligations under the charter contract.
• The broker must resolve any disputes that may arise between the charterer and the shipowner.

The broker’s responsibilities to the principal are governed by a number of factors, including the terms of the agency agreement between the broker and the principal, the law of the jurisdiction in which the broker is operating, and any relevant industry codes of conduct.

It is important for both the broker and the principal to be aware of their respective rights and responsibilities. This will help to ensure that the chartering process is conducted smoothly and efficiently.