Section 20.4 Communication with Charterers, Owners, Agents, and Brokers

Effective and professional communication is the lifeblood of successful commercial ship operations. The Master is a key node in this communication network, interacting regularly with various stakeholders who have different interests and information needs. Clear, concise, timely, and well-documented communication can prevent misunderstandings, resolve issues efficiently, and protect the owner’s interests.

1. Shipowners (or Ship Management Company):

Primary Reporting Line: The Master’s primary line of communication and reporting is to the shipowner or the designated ship management company (representing the owner’s interests). This includes the Designated Person Ashore (DPA) for safety matters and the relevant operations or commercial department for other issues.

Types of Communication:

Regular Updates: Noon reports (position, speed, consumption, weather), arrival/departure reports, cargo operation progress reports.

Incident Reporting: Immediate reporting of any accidents, incidents, equipment failures, potential off-hire events, PSC/Class deficiencies, or situations affecting safety, pollution, or the commercial schedule.

Requests for Instructions/Guidance: Seeking clarification on C/P terms, advice on handling difficult situations (e.g., unsafe port, cargo disputes, pressure from charterers), or approval for deviations or significant expenditures.

Maintenance and Requisition Reports: Reporting defects, planned maintenance progress, and requisitioning spares and stores.

Crew Matters: Reporting on crew welfare, changes, or disciplinary issues.

Key Principles:

Timeliness: Report important matters promptly.

Accuracy and Objectivity: Provide factual and unbiased information.

Completeness: Include all relevant details.

Formality: Use official channels (email, telex, company reporting forms) and maintain a professional tone.

Follow Company Procedures: Adhere to the company’s established communication protocols and reporting formats.

Keep Records: Retain copies of all significant communications.

2. Charterers:

Direct vs. Indirect Communication:

Time Charters: Direct communication between Master and charterers (or their operations department) regarding voyage orders, cargo stowage planning (charterer’s responsibility but Master’s approval for safety), bunker planning, and performance monitoring is common and often stipulated in the C/P.

Voyage Charters: Communication is often routed through owners or agents, though direct contact on operational matters in port (e.g., cargo operations, NOR) may occur.

Nature of Communication:

Voyage Instructions: Receiving and acknowledging voyage orders.

Performance Updates: Providing information on vessel speed, consumption, and ETA.

Cargo Operations: Liaising on stowage, readiness, and progress.

Responding to Queries: Answering charterers’ questions regarding the vessel’s capabilities or voyage progress.

Key Principles:

Professionalism and Courtesy: Even if disagreements arise, maintain a professional demeanor.

Adherence to C/P: Ensure all communications and actions are consistent with the charter party terms.

Protect Owner’s Interests: While cooperating with charterers, always prioritize the safety of the vessel and crew, and protect the owner’s interests. If a charterer’s request conflicts with these, consult owners.

Written Confirmation: For important instructions or agreements, seek written confirmation (e.g., via email).

LOPs when Necessary: If charterers’ actions or inactions cause delays or potential prejudice to owners, issue an LOP.

Keep Owners Informed: Copy owners on significant communications with charterers, or keep them fully appraised.

3. Ship’s Agents (Port Agents):

Role of the Agent: Ship’s agents are appointed in port to represent the interests of either the owner or the charterer (depending on the C/P terms and who appoints them – Owner’s Agent or Charterer’s Agent). They handle port entry/clearance formalities, liaise with local authorities, arrange port services (pilots, tugs, linesmen, provisions, crew changes, medical), and facilitate communication between the ship and shore parties.

Master’s Interaction: The Master works very closely with the appointed agent.

Pre-Arrival Information: Provide the agent with all required pre-arrival information and documents in a timely manner.

Operational Coordination: Liaise on berthing prospects, cargo operations schedule, pilotage, towage, and other port services.

Documentation: Work with the agent on preparing and signing documents like the NOR, SOF, and Bills of Lading.

Local Knowledge: Rely on the agent for local information, regulations, and customs.

Problem Solving: The agent can often assist in resolving local issues or disputes.

Key Principles:

Clear Instructions: Provide clear instructions to the agent regarding the vessel’s needs and owner’s requirements.

Verify Agent’s Appointment: Understand whether the agent is appointed by owners or charterers, as this can influence their primary allegiance. Even a charterer’s agent has a duty to assist the vessel with routine port matters.

Monitor Performance: While relying on the agent, the Master should still monitor that services are being provided efficiently and cost-effectively (especially if costs are for owner’s account).

Report Issues: If the agent is not performing satisfactorily, inform the owners.

Financial Matters: Be clear on disbursement accounts and any cash advances.

4. Brokers:

Role of Brokers: Shipbrokers act as intermediaries in negotiating charter parties between shipowners and charterers. They may also be involved in Sale & Purchase (S&P) transactions.

Master’s Interaction: The Master typically has limited direct contact with brokers once a C/P is fixed. Most communication with brokers will be handled by the owners or the company’s chartering department.

Potential Contact:

During C/P negotiations, the company might seek technical or operational information about the vessel from the Master via the brokers.

In some cases, particularly with smaller owning companies, brokers might be a channel for relaying messages between owners and charterers.

Key Principle: If contacted by brokers, the Master should generally refer them to the owners/company unless specifically authorized to deal with them directly on certain matters. All information provided should be accurate and consistent with company policy.

General Best Practices for Commercial Communication:

Be Proactive: Anticipate information needs and provide updates before being asked.

Use Appropriate Channels: Email is common for formal communication and record-keeping. VHF radio is for immediate operational matters. Phone calls should be followed up with an email summary for important issues.

Maintain a Communication Log: For significant verbal instructions or agreements (e.g., via VHF or phone), make a note in the relevant logbook or a dedicated communications log.

Be Aware of Time Zones and Working Hours: Be considerate when communicating with parties in different time zones.

Cultural Sensitivity: Be mindful of cultural differences in communication styles, especially with multinational crews and international stakeholders.

Confidentiality: Treat commercially sensitive information with discretion.

Follow Company Policy: Always adhere to the company’s specific policies and procedures regarding external communications.

Effective communication is a skill that enhances the Master’s professionalism and contributes significantly to the smooth and profitable operation of the vessel. It helps build good working relationships, avoids disputes, and ensures all parties are aligned.