No Aussie grains - what never?
Not all errors lead to a financial loss although the broker may lose the principal’s business.
A recent “near miss” involved a broker fixing the time charter of a bulk carrier. The owner specified that he wanted the agreement to be “no Aussie grains” reflecting the high costs of complying with Australian regulations. The charterer countered on the telephone “no Aussie grains as first cargo”.
The broker failed to pass this qualification on. When the error was discovered both owners and charterers reserved their right to claim against the broker, although the fixture was for a six month period. The charterers did not ultimately have an Australian cargo and so no claim materialised. The principals opinion of the broker may have taken longer to repair.