Bangladesh CARE 416b 01-008
Commodity: Crude Degummed Soybean Oil
MT : 20,000
Pack Size: Bulk
Load Port: U.S. Gulf
Date at US Port: June 2, 2002
Discharge Port: Chittagong, Bangladesh
Owner/Carrier: August Trading, Inc.
Vessel/Flag: MT Sabine Eagle U.S. Flag
Booked Rate/GMT: $ 161.72/GMT Ocean
Government of Bangladesh Freight Tender
Invitation for Bid BG-CARE-416(b)-01-008
Date: April 29, 2002
Muller Shipping Corporation, New York, for and on behalf of Government of
Bangladesh ("GOB"), requests offers of U.S. and non-U.S. Flag tankers, for the
carriage of Section 416(b) program commodities on the following basis. ITBs
will be considered. Towed barges will NOT be considered.
1. Cargo/Quantity - Approximately 20,000 metric tons Crude Degummed Soybean
Oil (CDSO) in bulk. Offerors should consider offering vessels to carry a
range of tonnages in the event that the quantity purchased in is more or less
than the quantity stated in this tender. Contracted quantity to be on a
2. Load port/range - one to three safe berths each one to three safe U.S.
ports. Offers will be considered from all U.S. coastal ranges, including U.S.
Great Lakes ports. For offers basis U.S. Great Lakes utilizing feeder vessels,
offer is to include name and description of feeder vessels. If Mississippi
River District, not north of but including Baton Rouge, LA to be considered
one port. Puget Sound area, including Tacoma, to be considered as one port.
Columbia River District, including Portland, to be considered as one port.
San Francisco Bay area, including Sacramento and Stockton, to be considered
3. Discharge port(s) - one to three safe berths, one safe port Chittagong,
Bangladesh. Transhipment is not permitted.
4. Loading/Discharging terms:
(a) Loading terms: Free in at the average rate of 150 metric tons per running
hour, WWDSHINC, with demurrage, no despatch.
Notice of Vessel's readiness to load must be tendered and accepted at the
office of Commodity Suppliers (loading facility's office) or their agents and
at the office of the Charterers or their agents between the hours of 0900 and
1600 hours local time on a business day (Monday through Friday, holidays
excepted), or between the hours of 0900 and 1200 noon if on Saturday (provided
not a holiday). Laytime at load port to commence at six (6) hours after
vessel's Master or Agent files the Notice of Readiness and all required
inspection certificates to the declared loading terminal. If second or more
load berth(s) or port(s) are used Laytime at the second or subsequent load
berth(s) and/or port(s) shall commence six (6) hours after Vessel Notice of
Readiness is filed at that berth and/or port and Vessel being ready to
commence loading at said subsequent berth and/or port. Prior time, if used,
not to count as Laytime. Demurrage to be stated in the offer. Demurrage to
be settled directly between vessel owner and the supplier(s) of the CDSO.
Under no circumstances shall CCC or Charterer be responsible for resolving any
disputes involving the calculation of Laytime or the payment of demurrage
between vessel owner and the supplier(s). Any and all disputes between vessel
owner and the commodity supplier(s) arising out of this contract relating to
settlement of Laytime issues shall be arbitrated in New York subject to the
rules of the Societe of Maritime Arbitrators, Inc.
(b) Discharging terms: Cargo to be discharged at the Owner's time, risk and
expense. Cargo is to be discharged at the average rate of 200 tons of 2,204.6
pounds per running hour, weather working days of 24 consecutive hours,
Fridays, Saturdays, and Holidays included, on quantity contracted under this
tender only. Any time used for shifting or connecting or disconnecting pumps
or hoses not to count, even if vessel is otherwise on demurrage.
Notice of Vessel's readiness to discharge must be tendered and accepted at the
office of the Receivers or their agents between the hours of 0900 and 1600
hours local time on a business day (Sunday through Thursday, holidays
excepted), Vessel having been entered at the custom house, accompanied by all
necessary passes, and with any and all required lightering completed. Laytime
will then commence at 0800 hours on the next business day, whether in berth or
Vessel to provide all necessary equipment (including main/ stripping pumps and
hoses in good working order) to effect discharge of the cargo into shore tanks
and/or trucks. Pumps must have a minimum pressure of 50 psi with pumping
capacity of at least 250 MT per hour and able to pump water with adequate
pressure to clean hoses and pipes at the discharge terminal.
(c) Lightering, if necessary, is for owners time, risk and expense.
(d) Demurrage/despatch is applicable at discharge port(s). Owners are to
specify demurrage/despatch rates in their offer. Despatch rates must be one-
half of demurrage rates quoted.
(e) Discharge port Laytime accounts are to be settled directly between owners
and Receivers. Vessel owner is to prepare and submit signed discharge port
Laytime statement to Receivers for approval within thirty days of completion
of discharge. Discharge port Notice of Readiness and discharge port Statement
of Facts, both signed on behalf of Receivers and Owners are to be presented
with signed discharge port Laytime statement. Under no circumstances shall
CCC be responsible for resolving disputes involving the calculation of Laytime
or the payment of demurrage or despatch between the vessel owners and the
Charterers or Receivers. Any/all disputes between vessel owners and the
Charterers or Receivers arising out of this contract relating to the
settlement of Laytime issues shall be arbitrated in New York, subject to the
rules of the Society of Maritime Arbitrators, Inc.
(f) Laytime is non-reversible.
5. Laydays: June 1/10, 2002
Fourteen (14) day load port preadvice required. Preadvice notice must be
received at office of Muller Shipping Corp. prior to 1100 New York time on a
regular business day to be considered received on that day and must be sent
via fax (email not acceptable). If preadvice is received after 1100 New York
time on a regular business day or on a weekend/holiday, preadvice will be
considered received on the next business day.
Prior to tendering notice of readiness (NOR) at first load port, owners to
provide all necessary inspection.
Owners/agents are required to continuously provide Charterers or their agent
with vessel ETA and vessel position including latitude and longitude up to
U.S. load port and discharge port.
6. Offers submitted under this invitation are required to have a canceling
date no later than the last contract Layday. Vessels which are offered with a
canceling date beyond the Laydays specified above will not be considered.
7. Only clean offers of named vessels with full particulars will be
considered. The performing vessel and any lighterage vessels utilized must
comply with the Federation of Oils, Seeds and Fats Association Ltd. (FOSFA)
"Operational Procedures for All Ships Engaged in the Ocean and Short Sea
Carriage and Transhipment of Oils and Fats for Edible and Oleo-Chemical Use",
hereinafter "FOSFA OPS" except as modified elsewhere herein and in the
Proforma charter party. Offerors are encouraged to include the following
information: Name of vessel and flag / Full style vessel owner/operator /
Year built / Length overall / Beam / Classification / Type / Vessel's actual
warranted service speed / Number of tanks / Number of pumps/systems, capacity
/ Current employment and cargo, contracted or anticipated / Current position
of vessel including latitude/longitude / Laydays / Vessel ETA at load port and
proposed itinerary / Maximum fully loaded draft of vessel.
Any or additional certifications on the vessel if needed, shall be furnished
by owners upon request.
8. Foreign flag vessels must not be older than twenty (20) years and must be
classed highest in Lloyd's register or its equivalent. Date of original
construction, not rebuilt date, to govern.
9. No substitution of vessels allowed unless approved by all parties
concerned. Substitution requests must be presented within a reasonable time
for consideration by GOB/USDA.
10. Non-vessel Operating Common Carriers (NVOCC) may not be employed to carry
U.S. or Foreign Flag shipments.
11. Cargo covered under this contract may not be relet to another carrier or
operator without the written authorization of Charterers and USDA.
12. Owners to list the last three cargoes carried (for both vessel and
lighterage vessel, if applicable) in cargo tanks and the last three cargoes
pumped through the cargo pumps and lines (if different) and certify in their
offer that the last three cargoes were clean, unleaded and non-toxic.
Further, owners to certify that the immediate previous cargo for tanks, lines
and pump systems (for both ocean vessel and lighterage vessels, if applicable)
designated to load the oils must be in compliance with the NIOP/FOSFA list of
acceptable previous cargoes. Owners must stipulate exactly the last three
cargoes carried, without statements of "and or" or "will be". Further, cargo
names must be spelled out without abbreviations.
For ship's tanks that have been newly coated or fully re-coated and have not
carried at least three cargoes subsequent to the new/re-coating, owners are to
list any cargoes that have been carried in those tanks, pumps and lines after
the new/re-coating, otherwise subject to the above. In addition, owners must
furnish with their offer a copy of a survey certificate from a FOSFA-approved
surveyor, dated not more than six months prior to the offer date, attesting
that the vessel (all tanks, whether or not new/re-coated) is in compliance
with FOSFA requirements for the carriage of edible oils.
For lighterage vessels only: If owners cannot provide information on
immediate prior cargoes at the time of offer, offeror shall acknowledge that
they will not be permitted to utilize any lighterage vessel that has not been
inspected and approved prior to loading by a FOSFA-approved surveyor at the
load and/or discharge port. Any time lost at load and/or disports for
inspection or other delays in providing suitable lighterage vessel to be at
13. Freight rate to be quoted in U.S. dollars per metric ton. Ocean freight
rate to be quoted basis one loading port to one discharging port. Additional
freight per metric ton on entire cargo for each additional load or discharge
port used to be stated separately.
Offers requiring additional premium for additional load/discharge berths will
not be considered responsive to this tender.
14. Lightering for owners account. Lighter vessels (if used) must be ocean-
going vessels with all pumps, hoses, and reducers, classed highest in Lloyds
or equivalent, and certified by licensed surveyor that all cargo compartments
are clean and entirely fit to receive and carry CDSO and that pumps, hoses and
reducers are in good working order. All vessels, including mother and
daughter/lighter vessels, are subject to all relevant terms and provisions of
If owners intend to lighter, the offer should specify the cost of lightering,
whether partial or full lightering. If lightering is not performed at the
discharge port and vessel directly discharges at berth USDA will deduct the
lightering cost from the ocean freight.
15. Owners to provide vessel tank inspection certificate evidencing
cleanliness all tanks to be loaded for this fixture. Inspection to be
performed and certificate to be issued by an independent surveyor at owner's
16. Loading and stowage to be approved by National Cargo Bureau and
certificate of NCB required. Owners to provide additional NCB certification
that any other openings leading to cargo compartments have been sealed.
If owners fail to tender vessel within the laydays, and whether or not the
option to cancel the charter/booking is exercised, the owners are to be fully
responsible for all charges attributable to the failure to tender and be
accepted before the canceling date of the charter, whether accruing to
charterer or to the United States Government as donor, including but not
limited to carrying charges covering interest, storage and insurance. In which
case it will be a condition of payment of freight that owners submit as part
of their documentation "paid" invoices from the suppliers for carrying charges
or a certification from the suppliers that carrying charges did not accrue.
Ultimately, the USDA has the authority to deduct any carrying charges due from
the payment of the ocean freight.
17. In case of part cargoes, any additional completion cargo(es) must be duly
separated, must be compatible and non-injurious to GOB Section 416(b) CDSO
cargo(es), must be detailed in offer or approved by Charterers/USDA if
contracted after fixture of GOB Section 416(b) CDSO cargo(es). Vessel's
itinerary and geographic proximity of completion cargo(es) will be taken into
consideration by Charterer/USDA in approval of such cargo(es) in order not to
unduly impede delivery of GOB Section 416(b) CDSO cargo(es) to the discharge
18. Clean original bills of lading to be released immediately upon completion
of loading along with copies of all required inspection documents. "To Order"
bills of lading may be required.
19. The successful offeror(s) will post a performance bond in an amount
equivalent to five percent (5%) of the total estimated freight costs within
five (5) working days of the award in the form of a certified check drawn on a
U.S. bank, or cashiers check issued by a U.S. bank, in favor of GOB. Said
Bond is due within five (5) working days from date of freight fixture
confirmation and failure to provide such performance bond within that time
period may result in voiding of the contract. Bond will be released upon
vessel's presentation for loading within the contracted Laydays. Bond will be
liquidated if vessel fails to present within the Laydays. Under no
circumstances is the performance bond to be considered as the maximum
liability or liquidation of damages incurred due to a non-performance of the
20. Payment of one-hundred percent (100%) of freight will be paid directly to
the carrier by the USDA upon confirmation of vessel arrival at the first or
sole discharge port, subject to terms and conditions of governing charter
party clause 43.
21. Owners to be responsible for any cargo loss, shortage, or damage between
the bill of lading weight and the weight delivered at the port of discharge.
Further, the United States Department of Agriculture/Kansas City Commodity
Office's guidelines for claims for over, short and damaged cargo documentation
to be fully incorporated in contract/charter.
22. In case of claims for loss, damage or shrinkage in transit, or any other
claims against the carrier, the rules and conditions governing commercial
shipments and the provisions of the Carriage of Goods by Sea Act of 1936 shall
not apply as to the period within which notice thereof shall be given to
carriers, or period within which claim therefore shall be made or suit
23. A broker's commission is payable by owners on gross freight, dead freight
and demurrage. Two-thirds (2/3) of two and one-half percent (2.5%) to be paid
to Muller Shipping Corporation and one-third (1/3) of two and one-half percent
(2.5%) to be paid to owner's broker if owner's broker involved in the fixture,
or a full two and one-half percent (2.5%) to be paid to Muller Shipping
Corporation if the vessel fixture is arranged without owner's broker.
24. Further details and additional terms are subject to the terms and
conditions of the GOB Proforma charter party dated September 2001, which is
available upon request from Muller Shipping Corp.
25. U.S. Flag approved freight rates will be reduced to a level not higher
than Maritime Administration fair and reasonable rate in the event that
originally approved vessel is substituted by a lower cost vessel (including
tug and/or barge).
26. For U.S. Flag vessels loading less than a full cargo, the less than full
cargo freight rate will be subject to reduction to meet any revised Maritime
Administration freight rate guideline due to vessel loading other additional
27. U.S. Flag offers will not be considered if the vessel operator has not
provided the Maritime Administration with the vessel costs prior to submission
of the offer.
28. U.S. Flag vessels which require approval from the Maritime Administration
to participate in preference cargoes because of Operating Differential Subsidy
(ODS), contractual constraints or because of reflagging/foreign construction
issues must obtain such MARAD approval prior to submission of bids.
29. One way rates must be quoted in addition to round trip rates for non-liner
U.S. Flag vessels whose date of original construction exceeds fifteen (15)
years from date of fixture.
30. Owners must guarantee that the performing vessel fully complies with the
new ISM Code, if required, and is in possession of a valid Document of
Compliance and Safety Management Certificate and will remain so for the
entirety of her employment under this charter party. Owners are to provide
charterers with satisfactory evidence of compliance and to remain fully
responsible for any and all consequences resulting directly or indirectly from
any matters arising in connection with this vessel and the ISM code. Non-
compliance with the requirements of the ISM code shall be deemed a breach of
31. Sub-standard vessels and operators: Section 408 of the U.S. Coast Guard
Authorization Act of 1998, Public Law 105-383 (46 U.S.C. Section 2302(E)),
establishes, effective January 1, 1999, with respect to non-U.S. Flag vessels
and operators/owners, that substandard vessels and vessels operated by
operators/owners of substandard vessels are prohibited from the carriage of
government impelled (Preference) cargo(es) for up to one year after such
substandard determination has been published electronically. As the cargo
advertised in this IFB is a government impelled (Preference) cargo, offerors
must warrant that vessel(s) and owner/operator are not disqualified to carry
such government impelled (Preference) cargo(es).
32. Owners warrant that vessel offered is free from any liens and/or
encumbrances. Owners further warrant that vessel offered is registered with
U.S. Coast Guard and classified by ABS.
33. Offers to be received by sealed letter, telex or telefax not later than
1100 hours Eastern Time Monday May 6, 2002 for validity 1700 hours Eastern
Time Thursday May 9, 2002. No phone or verbal offers will be accepted. GOB
reserves the right to accept or reject any and all offers. Only offers which
are responsive to the terms of the tender will be considered. No negotiation
will be permitted.
34. Both U.S. and foreign flag offers will be opened and read in public at the
place and time specified, and all offers that are responsive to this tender
will be considered, with no negotiation permitted.
35. Offers from outside the United States must be made through a U.S.A.
representative or broker.
36. Telex or telefax offers that start printing prior to 1100 hours Monday May
6, 2002 and continue printing past that time until completion, offer will be
considered as having been received on time. Late offers will not be
considered or accepted.
37. Offers 'subject open' will only be considered when the 'subject open'
restriction is lifted prior to 1100 hours Eastern Time May 8, 2002.
Offers to be submitted to:
Muller Shipping Corporation Fax 516-256-7701
One Industrial Plaza, Bldg. E
Valley Stream, New York 11581
For information contact Juan R. Matute or Paul Blizzard at 516-256-7700