Ghana Award02-017

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Ghana CARE 416b 02-017

Award

USDA Reference No: GHANA CARE 416(b) 02-017
Charterers: CARE
Commodity: 8,500 MT Hard Red Winter Wheat
Pack Size: Bulk
Load Port: 1/2 SP Each, 1/2 SP U.S. Gulf
Laydays: Sept. 16/26, 2002
Discharge Port: 1/2 SB Tema, Ghana
Owner/Carrier: Ocean Bulkships, Inc.
Vessel/Flag:MV Overseas Harriette, U.S. Flag
Booked Rate/GMT: $ 116.14/GMT Ocean
Plus $2.25/MT each additional load port
In combination with 8,500 MT Wheat for ADRA Ghana
Further Info: Muller Shipping Corporation, Tel 516-256-7700

CARE Ghana Freight Tender
Section 416(b)
Invitation for Bid GHA-CARE-416(b)-02-017
August 23, 2002

Muller Shipping Corporation, New York, for and on behalf of CARE, 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 bulk wheat under the Section 416(b) program on the following basis.

Cargo: Approximately 8,500 MT Bulk Northern Spring/Dark Northern Spring Wheat. Offeror should consider offering vessel to carry a wide range of tonages to accommodate the program needs. Contracted quantity will be on Min/Max basis.

This cargo may be combined with ADRA 8,500 MTS bulk wheat under Section 416(b) also for Ghana.

Loading: 1/2 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.

Discharging: 1/2 SB Tema, Ghana
Laydays: September 16 to September 26, 2002.

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.

Terms/Conditions:

1. Vessel Restrictions: Towed barges are excluded. Tankers will be considered only under full lightening basis.

- 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. Date 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 or vessel 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. and 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,
Current vessel position, ETA at load/discharge port, Full Style Owners

3. Vessel Gear Requirments: Vessel Owner to provide at their expense all 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. If vacuvators are provided by Owner, all necessary pipes, supports, as well as techinician(s) to oversee their operation are to be included for Owner's account. Any time lost as a result of insufficiencies of gear or breakdown of gear not to count as laytime or time on demurrage. Discharge method and gear is to be described in offer, and all details to be incorporated into CP requirements.

- 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 port, if used.

5. Offers requiring premium for additional load/discharge berths will not be 
considered responsive to this tender.

6. 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.

In the event vessel has to lighten at the port of Tema, Ghana whether full lightening or partial lightening, all lightening operations shall be at ship owners time, risk and expense. For all lightening (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 grain. Laytime allowed, whether full or partial lightening, shall be based on the bills(s) of lading weight. In the event of partial lightening, vessel will not be considered ready until owners have arranged lightening and vessel has reached the permissible draft of 7.6 M SW. 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 lightening and presentation of valid notice of readiness. Discharge rate applied to mother vessel will be as per discharge rate applicable to type of vessel as per freight tender Clause 11. In the event of full lightening 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). Further, laytime is to be calculated as follows: the laytime used by each of the daughter vessel(s) is to be added in order to arrive at a single figure of time lost or saved in relation to the total time allowed for discharging such lightening vessels. The time so lost or saved will then be divided by the number of lightening vessels used to arrive at net time lost or saved at discharge. Discharge rate applied for lighterage vessels will be the discharge rate applicable to a bulk carrier vessel per Clause 11.

The Owners are responsible for Vessel arriving at load/discharge ports 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. For guidance only without guarantee, Max LOA is 183 Meters, and Max Arrival Draft is 7.6 Meters.

7. If part cargo, any additional cargo shall be duly separated at owners' 
expense, non-injurious to CARE cargo and detailed in offer or approved by Charterers/USDA if contracted after fixture of CARE cargo. Vessel itinerary and geographic proximity of completion cargoes will be taken into consideration.

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
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Bulk carriers:
0 - 9,999.99 MT 4,000 MT per day
10,000 - 19,999.99 MT 5,000 MT per day

Tankers:
0 - 9,999.99 MT 4,000 MT per day
10,000 - 19,999.99 MT 5,000 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. 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 August 1, 1988) 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.

11. Discharge rate:
The cargo is to be discharged, free of risk and expense tpo the vessel (Free Out Discharge) at the average rate of 600 MTS (for tweendeckers) and/or 800 MTS (for bulkers) of 2,204.6 pounds per weather working days of 24 consecutive hours, Saturdays, Sundays and Holidays excepted, even if WWDSSHEXEIU, on the basis of the bill of lading quantity. Discharge guarantee shall not apply on lash/Seabee barges.

Charterers/ Receivers to appoint and pay for stevedores at port of discharge.

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 Charterers, for approval within thirty days of completion of discharge, with copies Charterers Agents, Muller Shipping Corporation. Laytime statements are to be accompanied by discharge port Notice of Readiness and Statement of Facts, both signed on behalf of Charterers. 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 Charterers.

12. Vessel must be able to be fumigated with an aluminum phosphide
preparation in-transit in accordance with the USDA, FGIS Fumigation Handbook. At final loading port commodity supplier will arrange and pay for in-transit fumigation performed by a certified applicator in accordance with the USDA, FGIS Fumigation Handbook. Fumigation must be witnessed by USDA, FGIS, and the aluminum phosphide preparation must be contained in packaging as described in the Fumigation Handbook. Dust retainers must be used. For tween-deckers and bulk carriers, including push-mode ITBs, the recirculation method of fumigation will be used. For tankers and tug barges other than push mode ITBs, surface application will be used. Disposal of fumigation materials is for Owners account. Tween-deck vessels will be considered provided they are acceptable for in-transit fumigation in accordance with 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. In addition, tween-deck vessels are acceptable only when a certified applicator states that the vessel has been inspected and found to be suitable for fumigation and such written statement from certified applicator should be submitted with offer.
At the discharge port and upon inspection by government inspectors, if cargo and/or vessel is found to be infested and provided clean bill(s) of lading were issued, fumigation costs if any are for owners (vessels) account, time counting for U.S. and Non-U.S. Flag vessels.

13. 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.

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

15. 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.

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

17. 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.

18. 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).

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

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

23. Commission: 2.50 percent on freight / deadfreight is payable to Muller Shipping Corporation if vessel offered direct. If broker involved then 2/3rd of 2.50 percent is payable to Muller Shipping Corporation and 1/3rd of 2.50 percent is payable to offering broker.

24.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 CARE. 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.

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, as revised July 2002 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 August 27, 2002 for validity 1700 hours New York Time August 30, 2002. No phone or verbal offers will be accepted. CARE reserves the right to accept or reject any and all offers.

If telex or telefax offers start printing prior to 1100 hours August 27, 2002 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 Wednesday August 28, 2002.

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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