Albania Award03-040B

IFB #:
03-040B
Tender Date:
Award Date:
Award Flag:
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PVO:
International Fertilizer Development Center
Agent:
Muller Shipping Corporation
Program:
Food for Progress

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Award October 27, 2003
03-040B

Notice of Award / IFB AL-IFDC-FFP-03-040B

Commodity: Soybean Meal in bulk
Quantity: 2,000 MT
Loadport: 1/2 SB Each, 1/2 SP USGulf
Disport: 1/2 SB, Durres, Albania
Laycan: September 26/October 6, 2003
Owners: Victory Maritime, Inc.
Vessel: Cleveland, U.S. Flag (P1)
Booked Rate: $131.42/MT Basis 1:1 for loading Mississippi River
Plus $40.00/MT each additional LP
Plus $10.00/MT for loading Myrtle Grove
Plus $40.00/MT if loading other than Mississippi River

Commodity: Corn in bulk
Quantity: 6,000 MT
Loadport: 1/2 SB Each, 1/2 SP USGulf
Disport: 1/2 SB, Durres, Albania
Laycan: September 26/October 6, 2003
Owners: Victory Maritime, Inc.
Vessel: Apollo Tiger, Antigua Flag (P3)
Booked Rate: $120.00/MT Basis 1:1 for loading Mississippi River
Plus $12.00/MT each additional LP
Plus $12.00/MT if loading other than Mississippi River

Commodity: 4,000 MT Soybean Meal in bulk and 4,000 MT Corn in bulk
Loadport: 1/2 SB Each, 1/2 SP USGulf
Disport: 1/2 SB, Durres, Albania
Laycan: December 10/20, 2003
Owners: Sealift Tankships, Inc.
Vessel: Noble Star, U.S. Flag (P1)
Booked Rate: $235.23/MT Basis 1:1
Plus $14.00/MT each additional LP
Plus $10.00/MT for loading Myrtle Grove



Tender 9.3.03

03-040B Albania

IFDC Albania Freight Tender
Food for Progress
Invitation for Bid AL-IFDC-FFP-03-040B
September 3, 2003

Muller Shipping Corporation, New York, for and on behalf of International Fertilizer Development Center (IFDC), 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 corn and soybean meal in bulk under the Food for Progress program on the following basis.

Cargo: Approximately 10,000 MT Corn in Bulk and 6,000 MT Soybean Meal in Bulk in two shipping periods as detailed below. 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.

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, 1 SP Durres, Albania.

AA) Shipment Period 1:
Cargo: 6,000 MT Corn plus 2,000 MT Soybean Meal.
Laydays: September 26 October 6, 2003.
A quantity of empty bags sufficient for bagging 2,000 tons of SBM are to be transported on the same vessel carrying the grain product(s) in Shipment Period 1. Empty bags are to be delivered to Owners or their appointed agents Free Along Side (F.A.S.) point of rest (under cover) at Owners' designated load berth. Owners are to nominate load berth(s) for the empty bags within forty-eight (48) hours after receipt of Charterers' nomination of load port(s) for the cargo. Owners' designated load berth must provide a point of rest with under cover protection from the weather for the empty bags. Owners will be responsible for any and all costs associated with placing the empty bags aboard the vessel from their F.A.S. point of rest (under cover). Empty bags will be loaded and transported on vessel to destination(s) freight free.

BB) Shipment Period 2:
Cargo: 4,000 MT Corn plus 4,000 MT Soybean Meal.
Laydays: December 10 - 20, 2003.

For part cargo awards or if a quantity of each commodity (Corn and SBM) is awarded to a single vessel, Owners to fully segregate, if not by natural separation, all expenses for Owners account. Horizontal separations are not permitted.

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: Tankers are excluded.

- 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. Vessel Gear Requirements: Cargo discharge is to be by grabs. Alternative discharge methods such as Vacuvators or Marine Legs are not acceptable, including to/from lighter vessels. Owners to supply at their expense grabs and all other necessary discharging gear in good working order and in sufficient number plus all necessary motive power/fuel to operate all discharge gear to permit charterers/receivers to effect discharge of the vessel at the guaranteed rate of discharge. 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.

- 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 and/or discharge ports, if used.

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

6. Lightering at Disport: 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.

The Owners are responsible for Vessel arriving at discharge port 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.

In the event vessel has to lighten at disport whether full lightering or partial lightering, all lightering operations shall be at ship owners 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. 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.

Discharge from mother vessel to lighters and from lighters to shore to be effected by grabs only. Grabs for discharge from mother vessel to lighters to be supplied by Owners.

7. If part cargo, any additional cargo shall be duly separated at Owners' expense, non-injurious to IFDC cargo and detailed in offer or approved by Charterers/USDA if contracted after fixture of IFDC 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
--------------------------------------------------
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

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 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.

11. Discharge rate:

The cargo is to be discharged, free of risk and expense to the vessel (Free Out Discharge) at the average rate of two hundred fifty (250) tons of 2,204.6 pounds per working hold per weather working day of 24 consecutive hours, with a maximum daily guarantee of 750 MT, 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, on the basis of the bill of lading quantity. Each hold to have separate working crane with minimum 8 MT safe working load. Discharge guarantee shall not apply on LASH/Seabee barges.

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

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

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 or their agents for approval within thirty days of completion of discharge. Laytime statements are to be accompanied by discharge port Notice of Readiness and Statement of Facts, both signed on behalf of Charterers/Receivers. 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.

12. 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.

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

14. 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.

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

16. 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.

17. 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).

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

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

20. Commission: 2.50 percent on 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.

21. 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 IFDC. 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.

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. All other terms and conditions as per Proforma Charter Party, as adopted August 2003 available upon request.

24.Offers to be received by Muller Shipping Corporation by sealed letter, telex or telefax not later than 1100 hours New York Time September 9, 2003 for validity 1700 hours New York Time September 12, 2003. No phone or verbal offers will be accepted. IFDC reserves the right to accept or reject any and all offers.

If telex or telefax offers start printing prior to 1100 hours Sept. 9, 2003 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 September 10, 2003.

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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