BIMCO Centenary General Meeting

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BIMCO Centenary General Meeting Copenhagen 23
25 May 2005 The Market Situation Track 2
Shipbroking Chartering Panellist Jørn
Steen Nielsen, President, Maersk Broker
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• With the market place for shipping
• being truly global and increasingly transparent,
• what does it take for the shipbroker of the
  future
• to add tangible value to their clients business
• and thereby be successful ?

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Old-fashioned shipbroking...

• Very young people taken on for on-the-job
  training
• Training concentrated within one single business
  segment with the rookie acting as assistant /
  water-boy to a more senior broker
• Throughout their career most brokers remain
  active within one specific business segment often
  working in the same office except maybe for a
  single posting abroad in their younger years
• Business achievements often relative to extent of
  old friends network

Continued...
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• Brokers working on first come, first serve
  basis
• Often 2, even sometimes 3 different brokers being
  involved in one transaction
• Value addition mostly limited to 1) identifying
  the Principals to each other, 2) negotiation of
  mainterms and 3) subsequent physical paperwork
  etc.

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The more modern world of shipbroking...

• Brokers are well educated and capable to act as
  qualified business consultants understanding
  their clients needs, strategic options and risk
  management profile
• Personal capabilities, experience and
  qualifications enable the broker to intelligently
  promote business opportunities and ideas or
  to discourage clients from pursuing potential
  opportunities
• Ability to effectively cover the global market
  via own networks and on selective basis identify
  business of specific interest to their clients

Continued...
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• 1, maximum 2 brokers involved in each transaction
• Brokers individually having a solid base of
  professional knowledge comprising asset
  management, financing, operational and technical
  issues respectively financial implications of
  selecting alternative employment scenarios

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The future will demand...

• Shipbrokers in all contexts offering tangible
  value adding services to the business of their
  clients
• In addition to being active in respect of
  specific business vis-à-vis, their clients,
  brokers and their companies must offer a
  variety of integrated services including
  research, e-business, etc.
• Only one broker (one commission) for each
  transaction

Continued...
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• Shipbrokers competently being able to manage
  their key-clients outsourcing of tasks, which
  these do not consider core competencies
• Shipbroking companies simultaneously with a
  boutique attitude towards customers must be
  able to build up and maintain an efficient,
  global organisation with ability to generate
  substantial business volume in all main segments.
  This is necessary to facilitate long-term
  success in an increasingly transparent and
  competitive market
• Leading broking houses to offer one-stop-broking
  services tailor made to cater for all needs and
  requirements of their key-clients

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Shipbrokers of the future...

• Extended theoretical education, f.ins. within
  financing, shipowning, ship operation or areas of
  technical excellence, etc.
• Must be exposed to structured training over time
  within as many areas of shipbroking as possible
  in order to decide where he / she on a long-term
  basis proves most talented
• Focus on team work and entrepreneurial spirit
  with good analytical and commercial
  qualifications
• Basic training to include overseas postings in
  different geographical and cultural environments
  with a variety of business challenges to achieve
  local knowledge and understanding and develop
  team-management skills

Continued...
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• Have to demonstrate flexibility and adaptability
  enabling efficient and focussed business
  development within a dynamic, fast moving market
• Need to possess solid intellectual skills to
  identify and form qualified opinions as to what
  is considered most advantageous business
  solutions for their clients rather than just
  pushing the opportunities at hand
• Well versed with the newbuilding, second-hand
  tonnage and chartering market for the type(s) of
  tonnage the broker specializes in and not only
  one of the business segments

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Shipbroking houses of the future...

• Substantial activities within all main segments
  of the shipping markets and large business volume
  within all areas
• Simultaneously successfully controlling
  various niche business
• Full global reach with a high degree of local
  knowledge and strong local presence in all
  shipping centres
• Global internally collected and controlled
  information flows
• Global customer network comprising reliable / top
  class shipowners, charterers, shipyards and
  financial institutions
• Customer-driven approach, providing tailor-made
  services reflecting the individual clients
  needs, strategic options and risk management
  profile

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• Ability to 1) attract top class young people with
  a personal profile matching the basic success
  criteria for education within shipbroking and to
  2) retain such brokers after the initial period
  of training
• Dedicated creation of work environments, which
  simultaneously encourages entrepreneurship,
  individual star performance and team work

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BIMCO Centenary General Meeting Copenhagen 23
25 May 2005 The Market Situation Track 2
Shipbroking Chartering