Award August 3, 2004
Muller Shipping Corp. Notice of Award
USDA Reference No: AZ-IRC-FFP-04-031-B
Commodity: Soybean Meal
Pack Size: Bulk
Load Port: U.S. Gulf
Laydays: August 12 - 22, 2004
Date at U.S. Port: August 11, 2004
Discharge Port: Poti, Georgia
Discharge terms: via through bill of lading to inland points Chopt
Owner/Carrier: Teco Ocean Shipping
Vessel/Flag: ITB Peggy Palmer (Barge)/Nadia Ramil (Tug)
$134.17/GMT One-way Rate (inclusive of bulk discharge)
$6.00/GMT on entire quantity for second load port
For further information contact Mr. Juan Matute or Mr. Paul Blizzard at Muller Shipping Corporation
Tel. 516-256-7700, Fax 516-256-7701
Tender July 21, 2004
IRC Azerbaijan Freight Tender
Food for Progress
Invitation for Bid AZ-IRC-FFP-04-031-B
July 21, 2004
Muller Shipping Corporation, New York, for and on behalf of International Fertilizer Rescue Committee (IRC), requests offers of U.S. and non-U.S. Flag geared vessels (U.S. Flag gearless vessels will be considered provided Owners supply discharging equipment) for the carriage of wheat and soybean meal in bulk under the Food for Progress program on the following basis.
Cargo: Approximately 5,000 MT Wheat in Bulk and 6,000 MT Soybean Meal in Bulk. Offerors should consider offering vessel(s) to carry a wide range of tonnages to accommodate the program needs. Contracted quantity will be on Min/Max basis.
Load Port: 1/3 SB Each, 1/2 SP U.S. Ports. Mississippi River including but not north of Port Allen to be considered as one port; Colombia River District including Portland to be considered as one port; San Francisco Bay area including Sacramento and Stockton to be considered as one port. For offers basis U.S. Great Lakes utilizing feeder vessels, offer to include name and details of feeder vessels.
Laydays: August 12 – 22, 2004
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.
Owners to provide Fourteen (14) day load port preadvice of vessel's readiness to load. 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. 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.
Discharging/Delivery Terms: Via through bills of lading to initial point(s) of delivery in Azerbaijan as outlined elsewhere herein.
1. Vessel Restrictions:
- Towed barges are excluded. Tankers will be considered for wheat, but not for soybean meal.
- Non-U.S. flag vessels must not be older than twenty (20) years and must be classed highest in Lloyd's Register or its' equivalent. Year of original construction, not rebuilt date, to govern.
- All vessels 15 years and older and all ocean-going barges must have all openings to cargo spaces and hatches' covers tightly sealed with tape or by other means to assure watertight integrity. The sealing shall be done to the satisfaction of attending NCB surveyor as attested by a special survey. Cost of sealing hatch covers/openings to cargo spaces as well as special survey fees shall be for vessel owner's account. Special survey certificate shall in no way affect owner's liability and responsibilities toward the cargo.
- Any extra insurance on cargo and/or freight as a result of Vessel's age, class, type, flag, or ownership to be for Owners' account but not exceeding New York market rates for U.S. flag vessels or London market rates for non-U.S. flag vessels.
2. Only clean offers of named vessels with full particulars will be considered. Offerors are encouraged to include the following information: Name of vessel and flag, Year built, Type, LOA, Beam, DWT, Draft, Speed, GRT, Number of Holds/Hatches, Hatch cover type and mechanism, Current vessel position, ETA at load/discharge port, Full Style Owners, SW Arrival draft at each disport.
3. Freight rate to be quoted per MT, basis one loading port/one discharge port, plus additional freight per MT for additional load ports, if used. No additional discharge port premiums will be considered. Freight rate quotations must provide per metric ton breakdown of rates for: a) Ocean transportation; b) Bulk discharge; c) Inland transportation from the discharge (transit) port to the point(s) of initial delivery in Azerbaijan, and d) Cost of lightening if applicable to offer.
4. For part cargo awards or if a quantity of each commodity (Wheat and SBM) is awarded to a single vessel, Owners to fully segregate, if not by natural separation, all expenses for Owners account. Any additional part cargo(es) shall be non-injurious to IRC cargo and detailed in offer or approved by Charterers/USDA if contracted after fixture of IRC cargo. Vessel itinerary and geographic proximity of completion cargoes will be taken into consideration.
5. Fumigation will be required for wheat only (soybean meal does not require fumigation) upon completion of loading as per PFA CP 23. Tween-deck vessels will be considered provided they are acceptable for in-transit in accordance with the USDA, FGIS fumigation handbook. Offers of such tween-deck vessels must be accompanied by a copy of a letter from FGIS, USDA, stating that the vessel can be fumigated under the FGIS in-transit fumigation procedures and a letter from a certified applicator stating that the vessel has been inspected and found to be suitable for in-transit fumigation.
6. Lightering at Disport: The Owners are responsible for Vessel arriving at discharge port and berth(s) with an acceptable safe arrival draft. If Vessels' draft exceeds the acceptable safe arrival draft, Owner to be fully responsible for any and all costs in reaching such safe draft and/or all costs for lightering the cargo into suitable size vessels.
In the event vessel has to lighten at disport whether full lightering or partial lightering, all lightering operations shall be at ship owner’s time, risk and expense. For all lightering (full or partial) the lighterage vessels, must be geared ocean-going bulk carrier vessel, classed highest in Lloyds or equivalent, certified by a licensed surveyor that all cargo compartments are clean and entirely fit to receive and carry contracted cargo.
If owners intend to lighten, the offer should specify the cost of lightering, whether full or partial 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.
If cargo is lightered, pneumatic discharging equipment may be utilized for wheat cargo only for transfer from mother to daughter vessel(s) or for discharge from daughter vessel(s) to shore, but may not be utilized for both operations.
Any lighterage is to be accomplished within the territorial waters of the country of the named discharge port(s) unless otherwise approved by Charterers and USDA.
7. Owners to provide for vessel hold inspection certificate by the Federal Grain Inspection Service/USDA (FGIS).
8. Loading and stowage to be approved by National Cargo Bureau and certificate of NCB required at Owners expense. Owners to provide additional NCB certification that vessel hatch covers and any other openings leading to cargo compartments have been sealed to prevent any outside water from entering the cargo compartments.
9. Loading rate:
(a) Cargo to be loaded according to berth terms with customary despatch at the average rate as delineated below based on vessel's contracted quantity. The rates are basis tons of 2,204.6 pounds per weather working day of 24 consecutive hours. Sundays and holidays excepted, even if used. Saturdays per BFC Saturday clause.
Vessel Contracted Quantity Loading Guarantee
0 - 9,999.99 MT 4,000 MT per day
10,000 - 19,999.99 MT 5,000 MT per day
20,000 - 29,999.99 MT 6,000 MT per day
30,000 - 39,999.99 MT 7,500 MT per day
40,000 - 49,999.99 MT 10,000 MT per day
50,000 MT and above 12,000 MT per day
Tween-deckers and Multi-deckers, including liners: the load guarantee shall be 3,000 MT per day.
LASH/SEABEE barges: the load/discharge guarantees shall not apply. No demurrage/no despatch/no detention to be applied and same to be loaded/discharged in regular turn without undue delay.
(b) Demurrage/despatch is applicable at load port(s) only. Owners are to specify demurrage/despatch rates in their offer. Despatch rates must be one-half of demurrage rates quoted. Laytime is non-reversible.
(c) Laytime accounts are to be settled directly between owners and commodity supplier(s) at load port(s). Laytime calculation, overtime and trimming to be in accordance to Addendum No. 1 of the North American Export Grain Association, Inc. F.O.B. Contract No. 2 (revised as of May 1, 2000) Clauses nos. 1-10 inclusive (hereinafter "N.A.E.G.A."), regardless of type of vessel. Further, the following modifications to N.A.E.G.A. will apply: anywhere the word "buyer" appears, the words "vessel owner" should be substituted in its place. Under no circumstances shall Charterers or CCC be responsible for resolving disputes involving the calculation of Laytime or the payment of demurrage or despatch between the vessel owners and the commodity supplier(s). Any/all disputes between vessel owners and the commodity supplier(s) 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.
10. Discharging/Delivery Terms: Berth terms with no demurrage, no despatch, no detention on vessel, rail cars/wagons, trucks and/or trailers. Carrier is to deliver cargo(es) in bulk under through bills of lading via (transit) port and thereafter via rail to point(s) of initial discharge (rail terminals and/or sidings as designated by receiver) Free On Rail (FOR) Baku, Azerbaijan or any of the following alternate delivery points in Azerbaijan:
Wheat: Zih and/or Canja
SBM: Devechi and/or Siyazan and/or Mardakan and/or Hajicabul and/or Goradil
Evaluation of offers will be based on cost of delivery to Baku, but carriers are requested to include rates and offers of service for partial lots to each of the alternative points named above.
The discharge (transit) port(s) to be used are at the discretion of the Vessel Owner, who is responsible for assuring that the vessels offered are in compliance with the discharge port/berth limitations and requirements. Discharge (transit) port(s) to be used are to be identified in the offer.
Offeror should include full particulars on inland transport, including routing and approximate transit time from discharge port(s) to each point of initial discharge. Offeror is to provide name of inland transportation contractor prior to Charterer’s/USDA final approval of freight fixture. The inland contractor shall provide 72, 48 and 24 hours advance notice of the arrival of each delivery to IRC Azerbaijan and their buyer(s).
11. Provisions applicable to U.S. Flag vessels
(a) 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).
(b) 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 cargo.
(c) 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.
(d) 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.
(e) 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 years from date of fixture.
12. Both U.S. and foreign flag offers that are responsive to this tender will be considered, with no negotiation permitted.
13. Payment of freight will be made directly to the carrier by the USDA. CCC will pay, not later than 30 days after receipt in good order of the required documentation, 65 percent of the total freight charges. CCC will pay the remaining 35 percent balance not later than 30 days after receipt of notification from the Cooperating Sponsor confirming arrival at final delivery point(s); except that CCC will not pay any remaining balance where the GSM determines that the vessel's arrival at first port of discharge was prevented by force majeure.
14. Non-vessel Operating Common Carriers (NVOCC) may not be employed to carry U.S. or Foreign Flag shipments.
15. Owners must guarantee that the performing vessel fully complies with the International Safety Management (ISM) Code and the International Ship and Port Facilities Security (ISPS) Code issued in accordance with International Convention for the Safety of Life at Sea (1974) as amended (SOLAS) and will remain compliant for the entirety of her employment under this charter party. Upon request, Owners are to provide Charterers with a copy of the relevant document of compliance (DOC) and Safety Management Certificate (SMC) in regard to the ISM Code and the International Ship Security Certificate (ISSC) in regard to the ISPS Code, or other evidence satisfactory to Charterers. Owners are 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 and/or ISPS code(s). Non-compliance with the requirements of the ISM code or ISPS code shall be deemed a breach of contract. Submission of an offer against this RFP will be deemed an acknowledgement by vessel Owner/Operator that these cargoes are to be discharged at port(s) and/or terminals/berths that may not be in compliance with ISPS requirements, and Owner will have no recourse against Charterers or Receivers for subsequent inspections, delays, deviations or other security-related requirements or expenses resulting from calling at such port(s) and/or terminals/berths.
16. 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).
17. Owners warrant that vessel offered is free from any liens and/or encumbrances.
18. Substitution of Vessel is not permitted without IRC/USDA prior approval. Any vessel substituted shall be of the similar type, class, approximate size and with same Laydays.
19. Commission: 2.50 percent on gross freight / deadfreight is payable to Muller Shipping Corporation if vessel offered direct. If broker involved then 2/3 of 2.50 percent is payable to Muller Shipping Corporation and 1/3 of 2.50 percent is payable to offering broker.
20. 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 IRC. 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 ship owner.
21. 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 instituted.
22. All other terms and conditions as per Proforma Charter Party, as adopted June 2004 available upon request.
23.Offers to be received by Muller Shipping Corporation by sealed letter, telex or telefax not later than 1100 hours New York Time Monday July 26, 2004 for validity 1700 hours New York Time Friday July 30, 2004. No phone or verbal offers will be accepted. IRC reserves the right to accept or reject any and all offers.
If telex or telefax offers start printing prior to 1100 hours July 26, 2004 and continue printing past that time, offer will be considered as having been received on time. Late offers will not be considered.
Offers 'subject open' will only be considered when the 'subject open' restriction is lifted prior 1100 New York Time July 27, 2004.
Both U.S. and foreign flag offers will be opened and read in public at the place and time specified.
Offers to be submitted to:
Muller Shipping Corporation Fax 516-256-7701
One Industrial Plaza, Bldg. E
Valley Stream, New York 11581
For further information contact Muller Shipping Corp. 516-256-7700 (New York)