Iraq Canceled05-024B

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Cancelled
August 8, 2005
IRAQ 05-024B

Cancellation of Freight Tender
August 8, 2005

Muller Shipping Corporation, New York, hereby cancels the freight tender
IQ-USGC-FFP-05-024-B issued August 2, 2005 for and on behalf of U.S. Grains
Council (USGC) covering corn and soybean meal for Iraq.

For further information contact Muller Shipping Corp. 516-256-7700 (New
York).

August  2, 2005 Tender
Iraq 05-024B

Freight Tender
USGC Iraq Food for Progress Program
Invitation for Bid IQ-USGC-FFP-05-024-B
August 2, 2005

Muller Shipping Corporation, New York, for and on behalf of U.S. Grains Council (USGC), 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 Food for Progress program cargoes as per the following.

Cargo: Up to approximately:
21,250 metric tons Min/Max Yellow Corn in bulk, and
8,750 metric tons Min/Max Soybean Meal in bulk.
Plus Empty Bags to be shipped freight free together with the above commodities on the same vessel.

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.

Load Port: 1/3 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.

Laydays: August 23/September 3, 2005.

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.

Discharge Port(s): One SB Aqaba, Jordan. Port limitations, without guarantee: 225 M LOA, 32.5 M Beam, 10.5 M Draft. Any shifting necessary due to the vessels size or configuration to be at Owners time, risk and expense.

Last In loading and First Out discharge will be required for any fixtures for cargoes covered by this freight tender.

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 transported on vessel to destination(s) freight free

Terms/Conditions:

1. Vessel Restrictions:
- Non-U.S. flag vessels must not be older than twenty-five (25) 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.

- Cargo shall not be loaded into deep/wing holds or tanks and other spaces which are not 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: Vessel(s) must be capable of self-discharge with vessels gear or Owner-supplied shore-side gear for clamshell/grab discharge. Cranes and/or swinging derricks to have minimum SWL of 15 MTs. Owners to provide at their expense all necessary motive power/fuel to operate all discharge gear and support equipment. Discharge gear provided by Owner/Vessel must be capable of maintaining the guaranteed average discharge rate as specified elsewhere herein. Any time lost as a result of insufficiencies of gear or breakdown of gear not to count as Laytime or time on demurrage. Receivers to supply 8 CBM grabs.

- 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 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 each other and from any other part cargoes. If segregation is by artificial separations, all such separations and stowage must be approved by the National Cargo Bureau (NCB) and all expenses are for Owners account. Any part cargo(es) shall be non-injurious to USGC cargo and detailed in offer or approved by Charterers/USDA if contracted after fixture of USGC cargo. Vessel itinerary and geographic proximity of completion cargoes will be taken into consideration.

6. Vessel must be able to be fumigated with an aluminum phosphide preparation in-transit in accordance with the USDA/FGIS fumigation handbook 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 (corn to be fumigated) 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 ITB), the recirculation method of fumigation will be used. 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 USDA/FGIS, 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 the certified applicator should be submitted with the 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 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.

If cargo is lightered, pneumatic discharging equipment may not be utilized.

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

Tankers:
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 MT and above 7,500 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, however, discharge port demurrage is not to exceed USD18,000 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 for approval within twenty days of completion of discharge. Discharge port Notice of Readiness and discharge port Statement of Facts, both signed on behalf of Charterers/ 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. 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 2,500 MT (in tons of 2,204.6 pounds) per weather working day of 24 consecutive hours on the basis of the bill of lading quantity, time from 1700 hours Thursday or on a day preceding a holiday until 0800 hours Saturday 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. Receivers intend to bag commodities upon discharge at their expense.

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

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

15. 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 42.

16. 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.

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 USGC-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 gross 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 USGC. 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, 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 August 8, 2005 for validity 1700 hours New York Time August 11, 2005. No phone or verbal offers will be accepted. USGC reserves the right to accept or reject any and all offers.

If telex or telefax offers start printing prior to 1100 hours August 8, 2005 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 to 1100 New York Time August 9, 2005.

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)