Kiev Shipping Ltd considers it necessary to publicly record its position regarding the dispute connected with Varamar DMCC, Alexander Varvarenko and the unpaid brokerage commission under the relevant chartering arrangement.

This publication concerns a specific commercial issue: payment of the brokerage commission which, according to Kiev Shipping Ltd’s position, was earned under the agreed commercial framework and became payable after freight was received.

Brokerage Commission in Ship Chartering

In international ship chartering practice, brokerage commission is a normal and recognized element of a fixture.

A broker performs commercial work, supports communication between the parties, assists with fixture negotiations and helps move the transaction toward an agreed chartering arrangement.

If the agreed terms provide that brokerage commission is payable after freight is received, the commission should be paid after the relevant triggering event occurs.

Kiev Shipping Ltd’s Position

Kiev Shipping Ltd’s position is that the brokerage commission under the relevant chartering arrangement was earned and became payable.

Kiev Shipping Ltd repeatedly requested a clear explanation regarding the timing and grounds for non-payment of the brokerage commission.

In Kiev Shipping Ltd’s view, the matter should have been resolved in the ordinary commercial manner: by providing a clear answer, confirming the payment status and paying the earned brokerage commission.

Varamar DMCC and Alexander Varvarenko

In this dispute, Kiev Shipping Ltd connects the issue of the unpaid brokerage commission with Varamar DMCC and Alexander Varvarenko as a representative of the relevant commercial side.

For Kiev Shipping Ltd, this is not an emotional or personal matter. It is a matter of performance of agreed commercial obligations in the shipping business.

Why This Matters

Brokerage commission in ship chartering cannot be treated as an optional payment.

If the broker performed the work and the commission terms were agreed, the commission should be paid in accordance with the agreed commercial framework.

Otherwise, a dangerous approach appears: the broker is useful before the fixture, but the broker’s role is ignored after funds have been received by other participants in the transaction.

Such an approach damages trust in the international freight market.

Performance of Charter Party Obligations

In the shipping business, all parties must respect their obligations.

Freight, demurrage, brokerage commission, charter party terms and other agreed payments cannot be treated selectively.

If parties expect others to comply with their obligations, they must also comply with their own obligations.

Public Position of Kiev Shipping Ltd

Kiev Shipping Ltd publicly states:

  • brokerage commission in ship chartering is a full commercial obligation;
  • commission agreed within a fixture must be paid according to the agreed terms;
  • receipt of freight is an important event for commission payment if such condition was agreed;
  • delay or refusal to pay earned brokerage commission is unacceptable commercial practice;
  • Kiev Shipping Ltd reserves the right to continue publicly stating its position regarding this dispute.

Kiev Shipping Ltd

Kiev Shipping Ltd has worked in ship chartering and sea freight brokerage since 2000.

The company is involved in vessel chartering, sea freight brokerage, charter party support, bulk cargo, dry bulk cargo, breakbulk cargo, project cargo, tanker brokerage and commercial matters connected with sea transportation.

Kiev Shipping Ltd does not own vessels. The company works as a shipbroker and charters suitable tonnage through the international freight market.

Kiev Shipping Ltd — Ship Chartering with Precision Since 2000

Other languages: Русская версия · Українська версія