2026-2027
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,An Express Agency Appointment is one in which the principal outlines the terms of the relationship, indicating the
exact nature of the appointment, giving specific authority and instructions regarding
the matters for which the agent is authorized to act on behalf of the principal.
Implied authority occurs when the agent must act without having been given specific express
authority. The agent's actions will be implied from the customs and business
practices prevailing at the port. An example of this would be an agent applying for,
and purchasing a customs bond, or hiring pilots, tugs, or linesmen.
Authority By Necessity is different from express or implied authority; it is derived from the need to take
urgent and immediate action to protect the principal's interest. May seek authority
from the Master for actions taken when unable to contact principal.
Authority by Ratification granted only for the actions taken without prior authority, not other actions taken by
the agent, and may be given orally but should be confirmed in writing to principal.
General Agent acts on behalf of ships employed in the liner trades. Can expand authority from the
principals to perform all acts in connection with a particular business
Special Agent services ships employed in the general steamship market. Only perform a certain
act or series of acts. services are required for one vessel calling at a named port
with a specific cargo under a distinct charter for one voyage.
Linear Agents Book the cargo, announcing/advertising sailing schedules, quoting freight rates,
arranging loading/discharging, advising vessel arrival, hiring stevedores, attending
ship husbandry, attending to passengers
Sub Agent has a fiduciary duty to both the general agent and the principal. The head agent
remains responsible for the performance and compensation of the sub agent.
Operation of Law termination of relationship with agency due to death, insanity, bankruptcy, outbreak
of war, or cancellation of time charter with vessel owners.
Disclosed Principal one whose identity is known either at or before the time of the agents transaction
with a third party.
Partly Disclosed Principal one whose identity has not been disclosed to service provider at the time of the
transaction.
Undisclosed Principal is one whose existence is either not known or not disclosed to the third party at the
time of the transaction.
The Agency Appointment grants authority to the agent and is handled by the party who will be responsible for
expenses incurred by the agent as well as the agency fee.
Charterers Nominated Agent When the owner agrees to allow charterers to select the agents
Owners Agent Charterers give owners the right to choose and appoint their agents at
load/discharge ports. They handle husbandry, arranging bunkers, spare parts,
stores, charts, crew changes, etc.
, Time Charterers Agent when a vessel is on time charter, then arrangements for port calls are made by the
charterer, who appoints the agent and is responsible for the agency fee and normal
port disbursements.
Husbandry Agent The owner may prefer to appoint a separate agent to attend to matters related to
the crew, repairs, supplies, provisions, and classification society surveys.
Protective Agent A protective agent is appointed to protect the owners interests when they are
unfamiliar with a new appointed agent. Therefore, the owner has to pay for two
agency fees.
Hub Agent Used as a third party service for account management, port cost analysis, agency
networking and supervision. The hub agent is not the principal and has limited
authority to give to local agents.
Outsourced Accounting Firms Requests and receives authority from the principal to remit funds to the agent.
Duties of Agents to Principals: Law of Agency Duty of loyalty and secrecy, duty of notification, duty to act within scope of authority,
duty to perform all duties personally, duty of accounting,
Duty of Loyalty and Secrecy Confidentiality are paramount, agents cannot share details of principals business
with others, avoid conflict of interests.
Duty of Notification The agent must keep the principal informed on berthing prospects,
loading/discharging prospects, completion of cargo operations, and estimated
departure info. Must immediately notify principal of any changes impacting cargo or
vessel operations.
Duty to Act within Scope of Authority The agent must follow the lawful instructions and directions of the principal. The
agent has a duty to act within the scope of authority. A special agent has limited
authority. If an unusual or extraordinary event occurs, the agent is required to seek
additional instructions from principal.
Duty to Perform all Duties Personally the appointed agent remains ultimately responsible to the principal for the
completion of all matters they have been granted authority to perform.
Duty of Accounting must keep accurate financial records, invoices and comply with accepted business
practices. Port expenses, ship expenses, and cargo expenses. Agent has a duty to
filly account for the principals funds as soon as possible after the vessel sails.
Principals Duties and Liabilities to Agent Duty of Good Conduct, Duty of Indemnification, Duty of Compensation
(Reimbursement)
Duty of Good Conduct the principal has a duty to conduct themselves in a manner that does not discredit
the reputation of the agent. The agent can terminated the contract or cease service
if there are illegal activities, and they must corporate with the agent.
Duty of Indemnification The principal must indemnify the agent for any loss or liability incurred as a result of
following the principal's instructions.
Duty of Compensation The principal must compensate the agent for their services, unless the agent
performs a service with the principals knowledge or authority.