What brokers provide
A broker's product is market access and information: knowing who is a genuine buyer or seller at a given level, what has traded, and where a counterparty's flexibility lies. In markets without a central exchange, that knowledge is the liquidity.
Brokers also provide anonymity during negotiation, which matters when a large position would move the market if the principal were identified.
Physical broking
Physical brokers match cargoes with buyers and manage the negotiation through to a recap. Value is added in structuring — matching quality, timing and delivery terms that neither side would have found independently.
Freight and chartering broking
Chartering brokers connect cargo with tonnage, advise on rate levels and manage the fixture process. Their market picture across open positions and forthcoming requirements is difficult for any single principal to replicate.
Derivatives broking
Derivatives brokers intermediate swaps and futures business, including fuel oil and freight instruments. Deeper broker liquidity narrows bid-offer spreads and makes hedging cheaper for the whole market.
Evaluating a broker
The useful tests are coverage of the specific market and route you trade, the quality and timeliness of market colour, discretion, execution reliability, and whether the broker declines business that is not right for you.