INDONESIAN SHIPBROKERS’ ASSOCIATION
ASOSIASI BROKER KAPAL INDONESIA

CODE OF ETHICS

Basic Principles

The Code is symbolized the importance of ethics in trading both for Chartering and Sale & Purchase. Members need to rely on each other and, in turn, on their principals Owners, Charterers, Sellers or Buyers for many contracts verbally expressed and only subsequently confirmed in writing. Ethical trading is regarded by ISBA as essential
Following are the basic tenets that must be obeyed by all members:

  • In the conduct of his profession a broker shall exercise great care to avoid misrepresentation and shall be guided by the principles of honesty and fair dealing.
  • No broker has authority to offer a vessel or a cargo unless duly authorized by a principal or by brokers acting on the instructions of principals. Under no circumstances may a broker avail himself of, or make use of an authority if he does not actually hold it. Neither can he alter the terms of an authority without the approval of the principal concerned.
  • An owner’s broker should offer his vessel “firm” only for one cargo at a time. A charterer’s broker should similarly offer his cargo “firm” to only one vessel at a time.
  • A broker can receive more than one firm offer for a vessel or cargo but must make it quite clear to others who wish to make him an offer that he has already received one or more firm offers for the particular vessel or order concerned. However, eventually he should not disclose other offers to third party.
  • An unsolicited offer or proposal does not necessarily establish the channel of negotiation. A broker should respect the channel or channels through which a vessel or cargo has been quoted to him but the principal may direct which of those channels to use should he enter into negotiations.
  • Before a broker quotes business from a source whose bona fides is unknown, it is expected that he makes reasonable investigations and communicates the result of those investigations to anyone considering entering
    into negotiations. If such checks have not been made or completed this fact should be conveyed clearly to the other principal or his broker.

 

Unacceptable Practices

Certain practices that are considered unacceptable among ISBA members:

  • Offering named tonnage without the authority of Owners/Disponent Owners.
  • Off-setting against hire or freight payment(s), amounts representing unspecified or vague claim.
  • Withholding payment of commission to other brokers in respect of hire/freight/dead freight/demurrage earned or paid.
  • Commission shall be agreed at the beginning by both Owners and Brokers.
  • Offering a vessel firm for business when hold a firmoffer from another charterers. The unwanted offer should be declined before make another offer.
  • Charterers fixing two vessels for one cargo and then holding both vessels over unreasonable period of time
    on “subjects”.
  • Misuse the authority to sign given by Owners to create documents for purposes of gaining profit.
  • Distributing confidential information on cargo/vessel to unauthorized party.


If a member of ISBA fails to comply with any of the above terms or practices he may be disciplined by the Committee (Dewan Pengurus ISBA) under the Rules. The Committee (Dewan Pengurus ISBA) has the power to censure, suspend or expel a member from ISBA in these circumstances.

ISBA has arrangements for investigating disputes between members, and between members and non-members, which arise from breach of these basic principles or the employment of unacceptable practices and market ethics generally. Members are encouraged to bring such instances to the attention of ISBA in writing so that they can be investigated.
ISBA shall distribute all useful information such as freight market report, bunker report and other to and for their members’ consumption only

This Code of Conduct is official principal guidelines of practice for members of Indonesian Shipbrokers’ Association only, it may not be reproduced or copied or circulated to unauthorized or third party partly or as a whole without prior permission of Indonesian Shipbrokers' Association (ISBA).