Shipping companies as every other commercial entity, target earnings and profit. This is achieved by chartering ships and by collecting the freight. The last is the job of Freight Collection Department (FCD).
The FCD’S job is not to generate profits. The FCD’s job is to calculate the freight or the hire subject to the charterparty agreement (time or voyage) and ensure that what has been agreed is collected in a timely manner.
The FCD department or function, for either ship owners or charterers, is commonly established within the company organization structure. In case they do not have such a department, it does not mean that they do not perform this function. There are many cases that subject to the size and culture of the company, freight collection is allocated to another department (as Operations or Accounts department) or it is outsourced to freight collectors.
Collecting the freight or hire is not an easy job. The vessel is chartered under a time or voyage charter party but what about off hires or demurrage? What about when an accident takes place, or it simply rains and you unload grain?
The role of the Freight Collection Officer is to ensure effectiveness and efficiency of the freight collection process. Fast collection, secure of freights, hires or claimed amounts are elements that are crucial to the smooth operation of the function and the business.
The good communication with the Operations, Accounts and Legal /Claims departments is essential. The specialized software comes handy when based on company’s needs, ensuring smooth flow of information, accuracy of task and easy follow up.
Freight collection is not a Universities taught subject. Freight collection is a combination of knowledge and skill delivered from different maritime areas (operations, carriage of goods by sea, accounting ect) and hands on knowledge. Thus, only freight collection officers and managers have this particular knowledge and skill and they are already working in shipping companies.
The qualification that are commonly required are proven knowledge and skill and specific personality aspects. For the training posts an undergraduate/postgraduate degree in maritime and /or work experience is commonly required. An MSc is required at management level along with a minimum of 5 and above years of proven work experience in a similar position, solid background in handling specific ship type claims, while knowledge/ familiarity with freight collection related software packages is essential.
We offer the Crash Course in Freight Collection. Mrs Koufopantelis who instructs the course is working as a Freight Collector for almost twenty-five years. For the last fifteen years she is working as a Freight Collector for a major Greek Shipping Company, with 187 vessels, bulk carriers, tankers and container ships. Also, takes active part in the internal training of the company.
https://e-wma.com/wma-courses/crashcourses/crash-course-in-freight-collection/
The main duties and responsibilities of the Freight forwarding team usually include:
- Handle freight collection including freight/demurrage
- Issue hire statements, freight invoices, final hire statements and other required documentation, and forwarding them to Charterers for prompt settlement.
- Prepare laytime calculation
- Follow up to ensure timely payment of receivables
- Oversee the processing of brokering commissions to brokers
- Calculate and analyze demurrage costs
- Issue and prepare claims raised during voyage execution
- Negotiate with Charterers and finalize charter party claim disputes or discrepancies by gathering all required evidence and always in close cooperation mainly with the Operations and Chartering departments.
- Provide all supporting material to Claims Department when a dispute cannot be settled amicably, or legal actions are necessary.
- Creating necessary reports for the performance monitoring of the freight department.
The personal characteristics of the ideal candidate vary to the level of the post but usually the requirements are:
- Fluency in English, both writing and verbally.
- Proficiency in MS Office, good knowledge of other professional software.
- Strong report writing skills.
- Well-developed communication, interpersonal and teamwork skills.
- High level of integrity and confidentiality.
- Strong ability to manage time efficiently and prioritize requirements to meet deadlines.
- Sound to Strong negotiation skills.
- High attention to detail.
- Requirement for fully vaccinated against COVID-19 by the first day of work, depends on the company.
