When a ship is taken on rent, it is known as ship chartering. Just as people take an apartment or a car for rent, some people may rent a ship based on their requirements. It could be to transport passengers or cargo. Renting a ship is known as ship chartering and it begins with the shipowner and a second party entering into an agreement. In shipping parlance, this agreement is known as a charter party. The party that rents out the ship is the shipowner and the second party who is taking the ship on rent is known as the charterer. Who brings these two parties together? Shipbrokers play an important role in bringing the right shipowner and charterer together and in finalizing the terms of the agreement between them. Typically, someone who wants to take a ship on a lease would approach a shipbroker to find the right vessel that suits their purpose. As we can see here, there are three parties in the process of ship chartering: – the shipowner who owns the vessel being rented, – the charterer who requires the ship on rent, and – the shipbroker who has helped to bring them together. Let us take a quick look at the roles of each of these parties. Shipowner A shipowner may be an individual or an organization who owns merchant ships that are registered under their name with a ship registry. Merchant ships carry cargo or passengers for a charge. Shipowners are usually members of the regional chamber of shipping or the International Chamber of Shipping (ICS). This global body is responsible for all regulatory and operational issues to do with shipping. Legal issues that crop up in the shipping business are also handled by the ICS. Charterer Someone who wants to rent a ship, either to transport cargo or passengers, is called a charterer. The cargo may or may not belong to the charterer. The charterer may be transporting it on behalf of a different party. Sometimes a charterer may take a vessel on lease and re-rent it to another party for the transport of cargo or passengers, for a profit. The charterer plans the ship’s voyage and the arrangements for the handling of cargo during loading and unloading. As such, he is responsible for the safety of the ship, its crew, and the cargo. The charter party is signed between the shipowner and the charterer. Shipbroker Like all other brokers, shipbrokers also help to identify the right customer for a shipowner who wants to rent his ship or vice versa. For their services, they charge a fee or a commission to the shipowner. The commission may be a percentage of the total freight paid to the shipowner by the charterer. Sometimes, a shipowner might appoint a full-time shipbroker for getting business. In the ship chartering business, it is common to find brokers who specialize in the chartering of certain types of vessels. It could be for the transportation of goods such as dry bulk, liquid bulk, etc. A shipbroker is not liable for the ship, its operations, or the cargo that it carries. He is just the intermediary between the shipowner and the charterer. The Institute of Chartered Shipbrokers The Institute of Chartered Shipbrokers (ICS) founded in 1911 is a professional body that is recognized worldwide among the shipping fraternity. It was brought under the British Royal Charter in 1920. Based in London, the Institute of Chartered Shipbrokers is considered the representative body of the many shipbrokers and ship managers on a global level. Through its various courses, it certifies qualified and experienced indivi