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A charterer's offer lands in your mailbox, and you carefully read the clauses to prepare your counter. One clause reads “CHABE SUB D/A,” meaning: Charterer’s agents both ends provided competitive disbursement account. Should you accept or ask for the Owner’s agent? While you can try to request your own agents, it's almost always challenging to get approval. But why do charterers insist on their own agents, and what does this entail?   The rationale begins with the commodity sale and purchase agreement, where shippers and receivers typically prefer their own agents at the ports to control cargo operations and protect their interests. Charterers incorporate this clause in the charter party on a back-to-back basis. In a voyage charter, the agent is usually nominated by the charterer and appointed by the ship-owner, who pays for the services. In a time charter, the charterer nominates and appoints the agent, also covering the relevant port expenses.   The agent’s role is crucial, serving as an intermediary between the ship-owner, the charterer, and the cargo owners. Therefore, fairness is vital. Favoring one party can damage the agent’s reputation and create further issues. For instance, if a vessel loads nickel ore and the Master suspects the cargo’s moisture content is unsafe, the agent must communicate with stevedores to halt loading and arrange tests. A “charterer’s agent” might downplay concerns to expedite operations, whereas an Owner’s agent would prioritize safety.   Similarly, during iron ore loading with cranes, a breakdown might prompt shippers/charterers to push for a shore crane to minimize costs. A charterer’s agent might pressure the ship-owner by threatening higher costs if the port shifts the vessel to anchorage. Conversely, an Owner’s agent would negotiate alternative solutions, balancing efficiency and cost-effectiveness.   Sometimes, shippers or receivers have their own companies act as port agents, indifferent to reputation since contracts are take-it-or-leave-it. When the charter is fixed with the charterer’s agent, you proceed with the appointment by requesting proforma D/As and comparing them with other agents to ensure competitiveness. Be cautious, as an agent might offer a cheaper proforma but inflate the final invoice. If it’s your first time with a significantly cheaper agent, a thorough review is essential. Port expenses are generally standard, regulated by authorities, with agency fees being a small part of the total cost.   Additionally, a principal should perform a background check to ensure the agency’s capability in caring for the ship. A shipping agent acts as the principal’s local representative, providing necessary local knowledge and expertise. The agent must be familiar with port regulations, have a wide range of contacts, and be well-established to deliver required services. Both small local companies and large multinationals operate at ports. While major agencies might offer consistent global service and payment terms, small local companies often provide more accurate local service, beneficial for short-sea shipping.   What if you don’t trust the charterer-nominated agent? If you need the business but can’t cooperate with the charterer’s agent, consider appointing a protective agent to act on the Owner’s behalf. P&I Clubs can assist, offering lists of correspondents in major ports to support Owners, masters, or the club in case of claims. It’s prudent to check this list before each call and appoint a reputable agent if needed.   For companies frequently visiting the same ports, building relationships with reliable agencies from past interactions can yield higher quality service and discounts. Sometimes, charterers accept Owner’s agents if they have proven reputations in particular areas. Long-term relationships with agents can also help ship-owners reach charterers and source cargoes, although bypassing ship brokers for chartering can harm reputations.   At OpenSea, we value the reputation of all parties in the ship chartering process by allowing companies to leave feedback on their counterparts for every fixed charter and performed voyage. We aim to make the freight market more transparent, friendly, and safe.