Ship Parts and Equipment Brokering

Ship parts and equipment (SP&amp;E) broker is an intermediary between sellers (parts and equipment providers) and buyers (ship owners and managers). An SP&amp;E broker specializes in sourcing and procurement of wanted parts and equipment, usually negotiating on behalf of the buyer (customer). This type of brokering service assists buyers in finding replacement parts and equipment at the most agreeable price and quality match of the market. A good brokering practice can substantially lower the buyer's purchasing costs and increase work efficiency.

Suppliers
SP&amp;E brokering involves an extensive list of verified global suppliers that are evaluated and rated based on their performance. Brokers closely follow and evaluate market trends when choosing suppliers, in order to avoid costly pitfalls, since they carry the responsibility of both the buyer and the seller.

Buyers
Ship parts and equipment buyers are the customers of SP&amp;E brokers, and they range from single-ship owners to multi-vessel managing companies. It is usually the purchasing authority of a vessel who deals with a broker. After an RFQ (request for quotation) is received from a buyer, broker breaks it down to parts/equipment categories and contacts multiple suppliers based on each category.

Purchasing Process
After research and negotiation takes place, the best price-quality match, sometimes multiple matches, is presented to buyer, who then makes the final decision. Prepayment is often demanded by a broker, unless a proven on-time payment record has been established with a customer. Almost all new customers are subject to prepayment for the items once purchase order has been issued.

Shipping
Although many shipping options exist, the EX-Works method is usually the preferred shipping arrangement after parts and equipment have been purchased by buyers. In an EX-Works transaction, goods are basically made available for pickup at the shipper/seller's factory or warehouse and "delivery" is accomplished when the merchandise is released to the consignee's freight forwarder. The buyer is responsible for making arrangements with their forwarder for insurance, export clearance and handling all other paperwork.

Contributors
Senada Lulic