Role of a Shipping Agent

Role of a Shipping Agent

In maritime logistics, shipping agents are the unsung heroes. They play a critical role in coordinating all activities, including the shipment of goods while loading and unloading it from the vessel, which most of the time go unnoticed by the shippers.  Shipping companies like Star Concord Shipping Company are mere carriers used by the freight forwarders for transporting the goods, while the shipping agent represents the shipping company at the specific port and plays a pivotal role to ensure compliance with all requirements for safe transportation of goods. Accordingly, a shipping agent must be fully conversant with all the requirements and regulations of the port, sector, or area in which they operate and have a wide range of contacts relevant to their area of work.  They must be well established and capable of providing the support and service that their principal needs.

A shipping agent at every port

Shipping companies operate through the shipping agents who are responsible for dealing with the transactions related to the cargo in every port that the ship touches. The shipping agent represents the shipping companies known as the principals and tasked with carrying out all essential duties and obligations related to the ship’s crew. As long as the ship remains at the port, the shipping agent provides all services as may be necessary by the crew and anything related to the ship’s maintenance and upkeep as well arranging for amenities like food, water, etc.

The shipping agent pays all dues on behalf of the shipping company in customs-related matters. It includes payments of the contractual workforce of the ship, especially whose contract terminates at that port.   The shipping agent acts on the ground on behalf of ship owners and shipping companies and is the actual force behind running a shipping company.

Categories of shipping agents

Shipping agents belong to some categories like Port agents, Cargo agents, Owners/ Charterers agents, and others.

The Port agent – The port agent plays a pivotal role in all trading activities and is responsible for organizing, coordinating, and overseeing all aspects of the port of call. Their duties include booking berth allocations before the vessel’s arrival and ensuring all allied services that would be required while the vessel stays at the port. After the vessel sails away, the shipping agent must settle the accounts and finalize all paper works.  The agent is the only conduit for sharing information between the vessel and the shore.

The Cargo agent – The Cargo agent operates mainly in the breakbulk and liner trades and is responsible for securing cargo for the shipowner or ship operator. The agent remains in regular touch with local shippers and ready to share information about vessel schedules, conditions of carriage and offer competitive rates. The agent might also offer services for customs clearance, inland transportation, and other services.

The Owners/Charterers agent – There may be more than one agent involved in serving the ship, depending on the circumstances at the port of call. Some shipowners might be comfortable appointing their own agent instead of using the port’s nominated agent. The role of the second agent depends on case-to-case basis.

The principal may appoint other agents to provide some specific service on behalf of the principal.