India Award02-046

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India CARE 416(b) 02-046

Award

Fixture Results

 
USDA Reference No: IND-CARE-416(b)-02-046

 
Charterers:  CARE

 
Commodity:  17,000 MT Refined Soybean Oil

 
Pack Size:  Bulk

 
Load Port:  1/3 SB New Orleans

 
Laydays:  Dec. 10/20, 2002

 
Discharge Port:  1/3 SB Kandla, India

 
Owner/Carrier:  Monte Rosa Ltd.

 
Vessel/Flag:  MT Monte Rosa, Lib. Flag

 
Booked Rate/GMT: $ 45.48/GMT Ocean

CARE Freight Tender
Section 416(b)
Invitation for Bid IND-CARE-416(b)-02-046
Date: September 19, 2002

Muller Shipping Corporation, New York, for and on behalf of CARE, 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 17,000 metric tons Refined Soybean Oil (RSO) 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 Kandla, India. Transhipment is not permitted. For guidance only without guarantee, Max LOA is 180 meters, Max arrival draft 7.5 meters, Max DWT 40,000 MT.

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 RSO. 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 75 tons of 2,204.6 pounds per running hour, weather working days of 24 consecutive hours, Saturdays, Sundays and Holidays excluded even if used, 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 Vessels readiness to discharge must be tendered and accepted at the office of the Receivers or their agents between the hours of 0930 and 1500 hours local time on a business day (Monday through Friday, 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) and necessary steam 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: December 10/20, 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 CARE/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 RSO 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. Owners to supply and maintain, at their expense, a nitrogen blanket in all holds containing CARE Section 416(b) RSO for the duration of the voyage.

17. 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.

18. In case of part cargoes, any additional completion cargo(es) must be duly separated, must be compatible and non-injurious to CARE Section 416(b) RSO cargo(es), must be detailed in offer or approved by Charterers/USDA if contracted after fixture of CARE Section 416(b) RSO 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 CARE Section 416(b) RSO cargo(es) to the discharge port.

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 CARE. 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.

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.

21. 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.

22. 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.

23. 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.

24. Charterers reserve the right to appoint agents at the discharge port(s), with agency fees for Owners account but not to exceed customary applicable fees.

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. 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.

34. Offers to be received by sealed letter, telex or telefax not later than 1100 hours Eastern Time September 24, 2002 for validity 1700 hours Eastern Time September 30, 2002. No phone or verbal offers will be accepted. CARE 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.

35. 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.

36. Offers from outside the United States must be made through a U.S.A. representative or broker.

37. Telex or telefax offers that start printing prior to 1100 hours September 24, 2002 and continue printing past that time until completion will be considered as having been received on time. Late offers will not be considered or accepted.

38. Offers 'subject open' will only be considered when the 'subject open' restriction is lifted prior to 1100 hours Eastern Time September 25, 2002.

39. Further details and additional terms are subject to the terms and conditions of the CARE Proforma charter party, which is available upon request from Muller Shipping Corp.

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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