Dry Bulk Physical Freight Traders / Chartering
Saw a thread from a year or two ago talking about this, but wanted to go into more detail. What do physical freight traders do? What are some big firms in this space? What do ship charters do? What is compensation like, is this a pay structure with a smaller base and large bonus (or not) based on PnL like a trading house? What are big exit opportunities in this industry? I know there are pretty basic questions, but have found it hard to find more information, so any input is appreciated.
Role is to trade freight. Simple enough? Well...
But in short, the transportation of freight (wet or dry) is a tradable product. The role of a freight trader is to optimise the seaborne transpiration of these goods. I think it is one of the hardest to describe roles (and I'm in the biz).
Big firms depends on the size of ship e.g. Teekay Tankers may be big in one size but International Seaways big in another. For wet, Shell/BP have big physical positions (own ships) and independent owners like Frontline are also big. Pool operators such as Navig8 and Tankers International are large players. Chemicals would be names like BASF, Ineos. Dry bulk would be Cargill, Oldendorff, Pacific Basin. Again, depends on size.
Comp is generally base around 150/200k for a few years of experience and bonus depends on shop. I know some guys getting % PnL payout, some not. I know some guys making a few million USD a year, some making a tenth of that. Comp on freight is GENERALLY less than the average metal trader and less than the average oil trader (in that order). But still good overall, market dependent. Around 3/400k USD in late 20s/early 30s seems to be the norm - often in lower tax jurisdictions e.g. Singapore, where 350k USD becomes something like 280k instead of 300k into 180k in NYC for example.
Exit ops aren't really a thing. People tend to be charterers as the exit op (exiting from commodity operations or shipbroking). Its a great industry with good pay, good hours, good people in the business and interesting work to do.
My assessment would be that people only tend to go into this is they are really passionate about it. I am yet to meet a chartering manager who does not love trading freight. That said, whilst you can have an extremely high quality of life, I know many , many more people who have had a fantastic year in gas/oil and retired in 30s/40s than I do in freight.