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Identifying Deceptive Ship Sales and Purchase Brokers: 4 Warning Signs 

By badmin
8 Nov, 2023
Cargo Security

Let me guess: you have probably fallen victim to a deceptive ship vessel transaction or just don't want to be one in the near future; you're not alone on this. 

In recent times, most people have been the victim of these crimes just by not doing their due diligence or by going for deals that are too good to be true, all in the name of getting the best offers. 

However, this fraud can be avoided by observing signs like extremely low industry prices by the broker company, the company not having a physical address that can be verified, and so on. 

In this guide, we will be walking you through who a sales and purchase broker is and the four signs you can use in identifying a deceptive one. 

Let's get started.

Who are the Sales and purchase brokers?

A sales and purchase broker is a person or firm primarily responsible for overseeing the activities involving the sale of a shipping vessel from the seller to the buyer, after which a commission from the sale is due to the broker for successfully closing the deal.

Sales and purchase brokerage has turned out to be a very lucrative business. The global shipbroking market will be worth around USD 600 million by 2026.

Because of these benefits, many fraudsters disguised as sales and purchase brokers have invaded the business. And this has been a setback in the industry.

Identifying a Deceptive Ship Sales & Purchase Broker

Here are the various and most important signs you should look for in a deceptive ship sales and purchase broker;

1. Unwilling to abide by the law.

Every nation in the world has laws that guide the sale and purchase of ships. 

The policies under these laws require that providing certain documents is mandatory to make the transaction legal.

When dealing with a broker who always wants to cut corners or give excuses in providing the necessary legal documents, this is a sign that you are most likely dealing with a fraudster.

So make sure that you research to find out the necessary legal documents that guide the purchase and sale of shipping vessels in your country before negotiations with any broker.

2. No physical or online address

Most brokers or brokerage firms usually have a verifiable physical office, a website, or a social media address that you can reach out to for information, assistance, or even follow-up proceedings concerning ship vessel brokerage.

Should you come across a broker who possesses none of these addresses, you should be very careful because you are probably dealing with a fraudster.

Make sure you find out their address and check if they are registered and known by the government.

3. Selling Way below the original price tag

As the saying goes, "Good ain't cheap, cheap work ain't good." when these prices become way too low, it becomes too good to be true. 

Interestingly, some scam brokers can be fond of doing this because of their desperation to make quick money. 

They try as much as they can to bring the price tag down to a level that looks very attractive and shocking, all in a bid to defraud people.

In order not to fall victim to this scam, you must research the generally accepted price range before going ahead.

4. Constantly pushing to quicken the transaction process.

Most times, the broker may want to run through the inspection process of the ship, want you to pay as quickly as possible before or immediately after the inspection, and provide fake documents with ease and in a surprisingly short period.

If you realize the broker is always seeking to quicken the process by portraying any of these features, you should be cautious because you are likely dealing with a fraudster.

They do this to close the deal fast because of fear of being caught. If you feel negative about it, ensure the right thing is done by calling it off or cross-checking everything carefully by comparing it with the original.

Final Thoughts.

So far, we've been able to establish that it is of utmost importance for every business to be able to identify deceptive ship sales and purchase brokers amidst the rise of fraud in recent times. 

Not falling victim to these crimes can be made possible by carefully observing the signs discussed above, such as those unwilling to abide by the law and brokers without a single verifiable physical and online address. 

Getting a trusted broker or brokerage company can sometimes be overwhelming and takes a lot of time; that's why we've got you covered. 

Kindly reach out to us at the contact page for quality service and information on the sales and purchase of shipping vessels. 


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