Aships agent is appointed by the ship owner to protectthe owners interests at the port of call, and is arguablyone of the most valuable assets available to ship own-ers or operators.

He is entrustedwith their reputation and protects theircommercial interests through his actions, negotiations,and payments for services on their behalf. His expertiseand reputation in his port as well as his relationshipwith port service providers and government officialsenable him to successfully handle any issue with min-imal loss of time. A quality ship agent enables shipowners, operators, and charterers to manage risk andrealize significant and sustainable cost savings.

40 Proceedings Summer 2011 www.uscg.mil/proceedings

For example, in the tramp trades, where the ownersvessel is not engaged in the trade from one specific portto another (which is the case in liner trade), ship agentsare even more important. The vessel may not havecalled at that port before, so the ownermust rely on theexpertise of his appointed ship agent, who needs to beintimately familiar with the services, personnel, andnational and local requirements for the arriving vessel.

Time is MoneyAmajor oil company offered the results of a study of itsinternational operations that highlighted a potentialannual savings of $5,000,000 if it could enjoy just a 30-minute reduction of theworldwide turnaround time ofvessels in port.1 Ship owners, operators, and charterers

all look to their ships agent to expe-dite the vessels port call and savethem similar important and costlyminutes.

The ship agents job begins wellbefore the vessels arrival in port.Additionally, the agent must be avail-able 24/7 and remain in constantcommunication with all concernedparties. The agent interfaces with localauthorities to ensure that all advancenotices have been received in goodorder and that the vessel has beencleared for entry. All pre-arrival andterminal information is then providedto the vessel. Ideally, the ship agentscoordination and oversight meansthat the vessel should arrive as sched-uled and docks promptly, whichequates to cost savings.

The Ships AgentThe maritime principals

eyes, ears, and hands in the port.

by MRS. JEANNE L. CARDONAExecutive Director

Association of Ship Brokers and Agents (U.S.A.), Inc.

Mr. Ned Barham, T. Parker Host, Inc., boards a vesselin port to attend to entrance formalities. All photoscourtesy of ASBA.

OceanTransportation

41Proceedings Summer 2011www.uscg.mil/proceedings

Once the vessel is in port, the ships agentarranges appropriate port-based services, and inmany cases, the agent is the first to attend thevessel upon berthing. A vessel captain relies onthe ship agent for all of his needs while in port.For example, requirements for shore leave forseamen have changed in many countries since9/11. For U.S. ports, seamen now require a visato be granted shore leave; however, shore leaveis not guaranteed. In some cases, terminals willlimit seafarer access to its facility, which needs tobe crossed to reach the port. Ship agents can as-sist in these and other areas, as they are familiarwith terminal regulations in their ports.

Raising the BarEven in this very brief review of some of thefunctions of a ships agent, it is obvious that thisis a position with a great deal of responsibilityand in which a ships owner places a commen-surate level of trust.

Think about it: The agent must have knowledge of allU.S. regulations for entering and clearing vessels andcargo, be equipped with and understand the latestcomputer technology, carry sufficient insurance cover-age, and is typically advanced an average of $50,000from ship owners to purchase the required services foreach port call. If you were a ship owner, wouldnt youwant to appoint an agent who conforms to very highstandards?

The Association of Ship Brokers and Agents (ASBA)has represented U.S. ship agent companies since 1934.Our agent members submit to a mandatory certifica-tion that requires that all member companies abide byour code of ethics, which includes a code of profes-sional conduct as well as financial and insurance re-quirements.

This certification requires our agent members to sub-mit to an annual procedural review by an outside cer-tified public accountant, who must attest that themembers accounting procedures are such that allmonies received from their principals are accounted for,supported by invoices and receipts, settled to their gen-eral ledger, and that the member utilizes generally ac-cepted accounting principles.Additionally, ship agentsemployed by member ship agency companies mustsuccessfully complete an ASBA-administered agentexam.

The Federation of National Associations of Ship Bro-kers and Agents, of which ASBA is a member, followsASBAs lead by promoting a similar quality standardfor ship agency providers around the world.

About the author:Mrs. Jeanne Cardona has served as the director of the Association of ShipBrokers and Agents since 1999. She holds a B.S. in business adminis-tration from the University of Maryland. Under her direction, ASBAhas grown its membership and as a voice in the maritime industry.

Endnote:1. Personal communication with Mr. Jason Kelly, Executive Vice President,Moran Shipping Agencies, Inc.

For more INFORMATION:

Visit the Association ofShip Brokers and Agents at

www.asba.org

or the Federation of National Associationsof Ship Brokers and Agents at

www.fonasba.com

Mr. Jonathan Foster, Amelia Maritime Services, Inc., climbs the Jacobs ladderto board a vessel.