Bangladesh Award01-008

IFB #:
01-008
Tender Date:
Award Date:
Award Flag:
---
PVO:
Gov. to Gov.
Agent:
Muller Shipping Corporation
Program:

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Bangladesh CARE 416b 01-008

Award

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

Tender

Government of Bangladesh Freight Tender
Section 416(b)
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 
Min/Max basis.

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 
one port.

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 
not.

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 
Owners expense.

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 
FOSFA OPS.

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 
expense.

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 
port.

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 
ship owner.

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 
instituted.

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 
cargo.

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 
contract.

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

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