Broker prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates the sale of a property
Brokeras an individual or party that arranges transactions between a buyer and a seller for a commission when the deal is executed.
S&P brokers handle the buying and selling of existing vessels in the secondary market or new ships . S&P brokers discuss opportunities and market trends with shipowners, charterers, investors and bankers, report on market sales, vessel values, market trends and activity. When a shipowner has a vessel to sell or is looking for a vessel to acquire, the shipbroker will source the market for suitable tonnage, discuss with the counterparty or their broker the main points of a transaction and they eventually negotiate all the details. During the negotiations, the shipbrokers do not only negotiate the price of the vessel on behalf of the principals but also all the logistical details for the transfer of the title and the vessel herself to the buyers. During the negotiations minor disputes may have to be handled given that the market may be moving in favor of the buyer (vessel price is softening) or in favor of the seller (vessel price is strengthening) giving each party a reason to cancel the transaction. S&P brokers specialize in the sale of ships for scrapping, which requires a different set of skills.
There are advantages to using a broker. First, we know the market and have already established relations with prospective accounts. We have the tools and resources to reach the largest possible base of buyers. We screen the potential buyers for revenue that would support the potential acquisition. An individual producer, on the other hand, especially one new in the market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost—they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products