Today, the rise in international trade is driving more businesses into importing and exporting trade. This has led to the rise of shipping businesses around the world.
They play a crucial role in moving cargo. To facilitate businesses with trade, shipping companies provide vessels to transport the cargo.
Ship chartering companies are playing an increasing role. Ship chartering has become one of the fastest-growing business models, due to its higher success rate.
Ship chartering is all about chartering ships from shipping owners and using them to move cargo for other businesses.
Chartering is a complex business. In case you wish to start a ship chartering business you need to be aware of a few things:
Write a detailed business plan
You cannot start your business without a proper plan. You need to think about partners as well as the source of funds you will need to succeed.
A clear business plan is needed to progress. When writing your business plan, include your strategy, facts and figures.
The individual or the company planning to invest in your business will want to know how you are planning to run things and how you plan to make profits.
Your business plan should include your target market, selling proposition, financial plans, skills, core competencies and costs. This will help to secure a loan from a bank or satisfy the questions of a potential investor.
Cost to build a startup
Money issues are the prime reason for the failure of more than 82% of businesses in the US. So, consider the cost of your startup first.
You may need significant capital to run a ship chartering business. This does not come cheap. Wait until you have sufficient capital to establish the business
Choose a location for the office
Think about why people should trust your business and trade with you.
When choosing a location for your office, choose a location where you will not have to face competition. Understand the areas of high demand but fewer shipping companies. Make sure you are not violating anything while doing business.
Marketing
Your business will not be able to survive if you cannot market it effectively. This business will require a bespoke marketing strategy.
You need to work towards building a strong market presence. The right marketing measures can make all the difference.
Staff
You may have to hire technical staff as this is a highly technical business. You will need to have an experienced captain on-board.
As the ship needs constant maintenance you will have to hire technicians with the right skills and expertise. Apart from that, you will also need people to take care of inventory, accounts, customers and products.
It can be difficult to find the right people for the job. You may even need the help of experts to hire the best talent for the job.
Final thoughts
Ship chartering is all about achieving smoother transportation of the cargo while balancing the demands of the ship owners and cargo owners equally.
When done correctly, this can be profitable. To have a successful ship chartering business, it may be wise to consider the suggestions above.