Philippines Award09-030B

IFB #:
Tender Date:
Award Date:
Award Flag:
Muller Shipping Corporation
Food for Progress


09-030B Philippines Award
November 30, 2009

Cargo: 13,200 MT Min/Max Soybean Meal in bulk
Loading: 1SB 1SP Mississippi River
Delivery: 1-2SB 1SP Subic Bay, Philippines
Vessel: MV Harriette, U.S. Flag
Owner: Sealift, LLC
Freight: USD 268.85/MT
LP: USD 15,000/HD PDPR
Laytime is non-reversible

09-030B Philippines Tender
November 19, 2009

Freight Tender
Philippines Food for Progress Program
Invitation for Bid 09-030B
November 19, 2009

Muller Shipping Corporation, New York, for and on behalf of ACDI/VOCA, 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 as needed) for the carriage of Food for Progress program cargoes as per the following.

Cargo: Up to approximately 13,200 metric tons Soybean Meal in bulk
Laycan: December 16-26, 2009
Loading: 1-2SB, 1-2SP, All USA Port Ranges
Discharging: 1-2SB 1-2SP Subic Bay, Philippines
Load Terms: Scale Gross Load (see below)
Discharge: Free Out with Demurrage/Despatch (details below)

Offerors should consider offering vessels to carry a range of tonnages in the event that the quantity purchased is more or less than the quantity stated in this tender. Contracted quantity will be on Min/Max basis.

For offers basis U.S. Great Lakes utilizing feeder vessels, offer to include name and details of feeder vessels.

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 pre-advice of vessel's readiness to load. Pre-advice 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 pre-advice is received after 1100 New York time on a regular business day or on a weekend/holiday, pre-advice will be considered received on the next business day.


1. Vessel Restrictions:
- Tankers and Towed Barges not workable. Tweens/multi-deckers and ITBs will be considered. Vessel must be classed highest in Lloyd's Register or its' equivalent.

- Non-U.S. flag vessels must not be older than twenty (20) years.  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. Any documentary evidence of overage premium waivers or reductions is to be furnished with offer.

- Cargo shall not be loaded into deep/wing holds or tanks and other spaces which are not bleedable or directly accessible to grab discharge.

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.

Vessel's itinerary from day of offer to first or sole discharge port under this tender is to be submitted with offer and be incorporated into the CP.

3. Vessel Gear Requirements: Cargo discharge will be by grabs or via marine legs. Vacuvators are not acceptable (including for lightering, if applicable).  Owners to supply grabs and all other necessary discharging gear in good working order and in sufficient number to permit charterers/receivers to effect discharge of the vessel at the guaranteed rate of discharge.  Owner to provide at their expense all necessary motive power/fuel to operate all discharge gear.  Discharge via marine legs will be acceptable provided vessel owners provide all necessary equipment at their time, risk and expense, including any technicians, supplemental labor, bobcats or similar equipment for use in vessel holds, shore-side cranes, hoppers, supports or other related equipment.  Time used for assembling or preparing Owner-supplied equipment, or any time lost as a result of insufficiencies of gear or breakdown of gear not to count as Laytime or time on demurrage.  Gear provided by vessel must also be capable of lifting equipment necessary for trimming and breaking up any caked cargo in/out of all holds.  Any shore gear required for discharge or lifting in/out of equipment must be furnished at owners risk and expense.

- Discharging equipment must meet all requirements and regulations of the applicable port authorities.

- Opening and closing of hatches at loading and discharging ports shall be performed by the Vessel's crew at the Owners' expense.  If Vessel is not equipped with hydraulic or mechanical hatch covers, Owners are to provide rain tents for all hatches.

4. Freight rate to be quoted per MT, basis one loading port/one discharge port, plus additional freight per MT for additional load/discharge ports, if used.  Freight rate quotations must provide per metric ton breakdown of rates (as applicable) for:  a) Ocean transportation; b) Cost of lightening.

5. The commodities covered by this tender must be fully segregated from any other part cargoes by natural separations only. Any part cargo(es) shall be non-injurious to ACDI cargo and detailed in offer or approved by Charterers/USDA if contracted after fixture of ACDI cargo.  Vessel itinerary and geographic proximity of completion cargoes will be taken into consideration.

6. Vessels must be able to be fumigated with an aluminum phosphide preparation in-transit and vessels that cannot be so fumigated will not be considered.  At final loading port, commodity supplier will arrange and pay for in-transit fumigation performed by a certified applicator.  Fumigation must be witnessed by FGIS, USDA. Dust retainers must be used.  For tweendeckers and bulk carriers (including push-mode ITB), the recirculation method of fumigation will be used. Tween-deck vessels are acceptable only when a certified applicator states that the vessel has been inspected and found to be suitable for in-transit fumigation and such written statement from certified applicator should be submitted with offer

7. Lightering at Disport: The Owners are responsible for the performing Vessel to be of a suitable size and for arriving at discharge port and berth(s) with an acceptable safe arrival draft.  If Vessels' size or draft exceeds the acceptable safe arrival draft or size limitations, 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 and that all winches/cranes are in good working order.  Laytime allowed, whether full or partial lightering, shall be based on the bills(s) of lading weight. In the event of partial lightering, vessel will not be considered ready until owners have arranged lightering and vessel has reached a safe draft for berthing.  All time lost before vessel reaches said draft is not to count as Laytime used.  Laytime is not to commence prior 0800 on the next working day following completion of lightering and presentation of valid notice of readiness.  In the event of full lightering Laytime shall commence at 0800 on the next working day after daughter vessel(s) have presented their notice(s) of readiness to discharge and demurrage/despatch rate shall apply only to the daughter vessel(s).  Mother vessel (partial lightering) and daughter vessels (full or partial lightering) to take turns at discharge and time on second and subsequent vessels not to count until previous vessel completes discharge and has vacated the berth. Time for shifting into berth not to count as Laytime or time on demurrage.

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.

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.

8. Owners to provide for vessel hold inspection certificate by the Federal Grain Inspection Service/USDA (FGIS).

9. 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.

10. 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
Bulk carriers:
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 and discharge port(s). Owners are to specify demurrage/
despatch rates in their offer, but demurrage at discharge port not to exceed USD 12,000 per day. 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.

(d) Discharge port Laytime accounts are to be settled directly between owners and Charterers. Vessel owner is to prepare and submit signed discharge port Laytime statement to Muller Shipping Corporation, New York, Fax: 516-256-7701/email within twenty (20) days of completion of discharge. Discharge port Notice of Readiness and discharge port Statement of Facts, both signed on behalf of Receivers and vessel owner 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. Any/all disputes between vessel owners and the Charterers 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.

11. Discharge Terms: Cargo to be discharged free of risk and expense to the vessel (Free Out discharge) at the average rate of 500 MT (in tons of 2,204.6 pounds) per working hatch, maximum
2,500 MT, for bulkers, or 200 MT per hatch/max 1,000 MT for tweens/multi-deckers, per weather working day of 24 consecutive hours on the basis of the bill of lading quantity. Time from 1700 hours Friday or on a day preceding a holiday until 0800 hours Monday or the next working day following such a holiday not to count even if used. The discharge guarantee shall not apply for LASH/Seabee barges. Any shifting necessary due to the vessel’s size or configuration to be at Owner’s time, risk and expense.

Charterers/Receivers reserve the right to nominate agents at the load and discharge port(s) to be appointed by Owners, with agency fees for Owner’s account, but not to exceed customary applicable fees.

12. Ship owners and/or their agents to release original and non-negotiable bills of lading to Charterer immediately upon completion of loading and without any undue delays.

13. Freight Payment: In accordance with Food for Progress Program regulations, freight will be paid by CCC/USDA on submission by owner of required documents and Notice of vessel’s safe arrival at discharge port issued by Charterers or their agents. In event owner has not paid the carrying/interest charges if any, CCC/USDA will have the right deduct same from the ocean freight.

14. On completion of Loading Master and or owner and or agent to send a Sailing Notice to Charterer’s agent, Muller Shipping Corporation, New York, Fax: 516-256-7701/email Said notice to state vessel name, flag, quantity on board in Metric Tons, stowed in hold numbers, Bill of lading date, ETA Subic Bay and any ports of call en route, and loaded draft of vessel ETA Subic Bay.

15. Transshipment is not permitted.

16. 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.

17. Both U.S. and foreign flag offers that are responsive to this tender will be considered, with no negotiation permitted.

18. Non-vessel Operating Common Carriers (NVOCC) may not be employed to carry U.S. or Foreign Flag shipments.

19. Payment of one-hundred percent (100%) of freight will be paid directly to the carrier by the USDA upon confirmation by the cooperating sponsor of vessel arrival at the first or sole discharge port, subject to terms and conditions of governing charter party clause 27.

20. 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.

21. 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).

22. Owners warrant that vessel offered is free from any liens and/or encumbrances.

23. Substitution of Vessel is not permitted without Charterers-USDA prior approval. Any vessel substituted shall be of the similar type, class, approximate size and with same Laydays.

24. Commission: 2.50 percent on gross freight, deadfreight and demurrage 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.

25. 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.

26. All other terms and conditions as per Proforma Charter Party, available upon request.

27.Offers to be received by Muller Shipping Corporation by sealed letter, telex or telefax not later than 1100 hours New York Time November 23, 2009 for validity 1700 hours New York Time November 24, 2009. No phone or verbal offers will be accepted. ACDI reserves the right to accept or reject any and all offers.

If telex or telefax offers start printing prior to 1100 hours November 23, 2009 and continue printing past that time, offer will be considered as having been received on time. Late offers will not be considered.

Firm offers only. Offers 'subject open' will NOT repeat NOT be considered.

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)


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