The Federation of National Associations of Ship Brokers and Agents (FONASBA) has created a General Agency Agreement (GAA) that is widely used in the shipping industry as a standard contract between shipowners and agents.
The purpose of the GAA is to establish the terms and conditions of the agency relationship between the shipowner and the agent. It covers a range of issues, such as the scope of the agent`s authority, the agreed commission rate, and the obligations of both parties in relation to the services provided.
One of the key benefits of using the FONASBA GAA is that it is a standardized contract that has been developed with input from industry experts. This means that it is comprehensive and covers all the necessary elements of the agency relationship, which helps to reduce the risk of disputes and misunderstandings.
The GAA also provides clarity on the role of the agent in the shipping process. For example, it outlines the agent`s authority to act on behalf of the shipowner in relation to matters such as loading and discharge of cargo, customs clearance, and vessel positioning. This helps to ensure that the agent is empowered to perform their duties effectively and efficiently.
Another important aspect of the GAA is the commission rate. The agreement specifies the percentage of the freight or other fees that the agent is entitled to receive as commission for their services. This helps to avoid confusion or disagreements about the payment of commission, and ensures that both parties are clear on the financial arrangements.
Overall, the FONASBA General Agency Agreement is an essential tool for the shipping industry. By providing a standardized contract that covers all the key elements of the agency relationship, it helps to promote transparency, clarity, and efficiency in the shipping process. If you are involved in the shipping industry, it is important to ensure that you are familiar with the GAA and that you use it in your agency relationships to minimize the risk of disputes and maximize the effectiveness of your operations.