Philippines Award05-083B

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Award Jan. 10, 2006
Philippines 05-083B

Owner: OSG Ship Management, Inc. on behalf of Ocean Bulkships, Inc.
Vessel: OVERSEAS HARRIETTE . US Flag, Built 1978; Geared Bulk Carrier
25,541 LT DWT on 33ft 8 9/16 in; Cubic Cap: 1,188, 707 cft at 100%
LOA: 567.2 ft; Beam: 74.94 ft; Classed ABS
5 Holds/ 5 Hatches , SWL Derricks 10 X 9.8 Tons.
Cargo: 9,300 Metric Tons Min/Max HWW wheat in bulk as part cargo. In combination with 10,450 MT of Soybean meal for Vietnam under USDA FFE program for ARC.
Load Port: 1 to 3 safe berths, 1 to 2 safe ports USGulf.
Laydays: Jan 20-30, 2006. Vessel ETA load range about Jan 29, 2006.
Discharge Port: 1 to 2 safe berths Manila, Philippines. Vessel ETA appx. 34 days direct from completion of loading/sailing last US load port, WP/AGW/UCE.
Terms: Berth terms load basis 4,000 MT per WWDSHEX EIU, BFC Sat Clause applies.
Free Out at 400 MT per working hatch per day but a maximum of 2,000 MT basis WWDSATSHEXEIU.
Freight rate: US $188.62 per MT. Add US$ 3.00 PMT on entire quantity for 2nd load port if used.
One way rate : US$ 153.69 PMT. No Lightening.
Demurrage/Despatch: At Load Port : US$ 19,500/ Half Despatch PDPR
At Discharge Port: US$ 17,500/ Half Despatch PDPR.

Tender December 28, 2005
Philippines 05-083B

Freight Tender: Philippines Food for Progress Program 2005 Wheat in Bulk
IFB Number: Philippines(NAFC)-FFP-05-083B
Date: December 28, 2005

Trans Global Services L.LC. on behalf of the Embassy of the Philippines for the National Fishery and Agricultural Council (NAFC), Department of Agriculture, Govt. of the Philippines, as Charterers, requests offers of U.S. flag vessels geared or gearless and non-U.S. flag geared vessels (towed tug barge arrangements are not acceptable) for transportation of approximately 9,300 MT bulk wheat, full or part cargo, financed under Food for Progress Program. Vessel owners and brokers should consider offering vessels to carry a range of tonnage in the event the quantity purchased is more or less than the quantity stated in this tender.

Cargo to be contracted on a minimum/maximum basis. If offer is basis part cargo then ship owner to certify that any additional cargo will be duly separated and must be compatible and non-injurious to the Philippine wheat. Further this completion cargo is subject to USDA and Charterers approval. If completion cargo contracted after the fixture of the NAFC Philippine cargo , the vessel itinerary and geographic proximity of the completion cargo(s) will be taken into consideration by the Charterer and USDA for approval of such part cargo(s), in order not to unduly impede the delivery of the NAFC cargo to the discharge port.

Grade Quantity Laydays
#2 HWW 9,300 MT Jan 20-30, 2006

Load Port: 1 to 3 safe berths each 1 to 2 safe U.S. port(s). The greater new Orleans areas, including but not North of Baton Rouge, LA., the Columbia River District including Portland; San Francisco Bay area, including Sacramento and Stockton, to be considered respectively as one port.

Owners to provide 14 day pre-advice of vessel readiness to load. Pre-advice notice must be received at the office of Trans Global Services, L.L.C. prior to 11:00 A.M. Washington, DC time on regular business to be considered received on that day. If pre-advice is received later than 11:00 A.M. Washington, DC time on regular business day or on weekends/holidays, pre-advice notice will be considered received only on next business day.
1. Loading terms: Cargo to be loaded according to berth terms with customary despatch at the average rate per chart below based on contracted quantity 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.
A) Bulk carriers/contracted quantity in MT Load guarantee in MT
0 - 9,999.99 4,000

B) Tankers/contracted quantity in MT Load guarantee in MT
0 - 9,999.99 4,000

C) Load guarantee for tween-decker: 3,000 MT
D) No load guarantee for lash/seabee barges
Any stowing and /or trimming to be for owners account.

2. Loading laytime accounts to be settled directly between owners and commodity supplier(s). Laytime calculation, overtime and trimming to be in accordance with addendum No. 1 of the North American Grain Export Associations F.O.B. contract No. 2 (revised August 1, 1998) clauses 1-10, (hereinafter NAEGA) regardless of the type of vessel. Further, the following modification to NAEGA will apply: anywhere the word buyer appears, the words vessel owners shall be substituted in its place. Under no circumstances shall CCC or charterers be responsible for resolving disputes involving calculation of laytime or payment of demurrage or despatch between the vessel owners and the commodity supplier(s). Any and all disputes arising out of this contract relating to the settlement of laytime issues at load port shall be arbitrated in New York subject to the rules of the Society of Maritime Arbitrators, Inc.
3. Section 408 of the Coast Guard Authorization Act of 1998, Public Law 105-383 {46 U.S.C. paragraph 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, offeror must warrant that vessel(s) and owner/operator are not disqualified to carry such government impelled (preference) cargo(es).
4. If owners fail to tender vessel within the laydays, whether or not the option to cancel C/P is exercised, the owners are to be fully responsible for all charges attributable to the failure to tender before the canceling date of the C/P, whether accruing to charterer or to the U.S. Government as donor, including, but not limited to the grain storage, insurance and fumigation. In which case it will be a condition of payment of freight that the owners submit as part of their documentation a paid invoice from CCC/Supplier for storage charges or a certification from CCC/Supplier that storage charges did not accrue.
5. Discharge port:1 or 2 safe berths each Manila where the maximum arrival draft of vessel not to exceed 10 M SW .
6. Discharge terms: The cargo to be discharged, free of risk and expense to the vessel (free out discharge), at the rate of 300 MT per working hatch per day but not a maximum rate of 1,500 tons for multi-deckers; 400 MT per working hatch per day but a maximum of 2,000 MT for bulk carriers per weather working day of 24 consecutive hours, Saturdays, Sunday and holidays excepted, even if used wwwdsatshex,eiu, on the basis of the bill of lading quantity. Discharge guarantee shall not apply on lash/seabee barges, but, same to be discharged in regular turn without undue delay. Charterer to appoint and pay for stevedores at port of discharge.
7. All non US Flag vessels must be geared and suitable for clamshell discharge and capable of discharging from all hatches simultaneously. US Flag tankers and gearless US flag vessels will only be considered provided they provide all necessary vacuvators, fuel, pipes, pipe supports, labor and technicians for vacuvators to discharge.
8. Tanker discharge clause: U.S. flag tankers will be considered basis full lightening into bulk carrier(s) in the discharge port. Lightening, if required at discharge, to be at Owners time, risk and expense. Laytime shall commence at 0800 hours next working day after bulk carrier daughter vessel(s) have presented their notice(s) of readiness to discharge. Discharge rate of the daughter vessel(s) shall be at the rate for bulk carriers as per clause no. 6 above.
9. Upon completion of loading and prior to sailing owners to arrange and pay for sealing of all hatch covers and other openings to prevent any outside water from entering cargo compartments. National Cargo Bureau certificate stating same is required by Charterers. Vessel to have mechanical or hydraulic hatch covers.
10. Lightening clause at discharge port(s): In the event vessel arrives at the discharge port(s) with an arrival draft exceeding the permissible drafts as stated in clause 5 above.. Lightening, if required at discharge, to be at Owners time, risk and expense. In the event of full lightening, laytime shall commence at 0800 hours on the next working day after daughter vessel(s) have presented their notice(s) of readiness to discharge. Discharge rate of daughter vessel(s) shall be at the rate for bulk carriers as stated in clause 6. In the event of partial lightening, vessel will not be considered ready until owners have arranged lightening and vessel has reached said draft. All time lost before vessel reaches said draft is not to count as laytime used. Laytime is not to commence prior to 0800 on the next working day following completion of lightening and presentation of valid notice of readiness. Laytime allowed, whether full or partial lightening, shall be based on the bill(s) of lading weight.
11. Discharge port laytime accounts to be settled directly between Charterer and vessel owner. Vessel owner is to prepare and submit signed discharge port laytime statement to Charterers agent for approval within thirty (30) days of completion of discharge. Discharge port notice of readiness and discharge port statement of facts, both signed on behalf of Charterers and vessel owners, are to be presented with signed discharge port laytime statement. USDA/CCC shall not be responsible for resolving disputes involving calculation of laytime or the payment of demurrage of dispatch between charter and vessel owners. Any/all disputes between Charterer and vessel owner 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.
12. Freight rate will to be quoted per MT basis 1 load port to 1 discharge port. Additional freight per MT on entire cargo for each additional load port used to be stated separately. If owners intend to lighten, the offer should specify the cost of lightening, whether partial or full lightening. If lightening is not performed at discharge port, and vessel directly discharges at berth, USDA will deduct the lightening cost from the ocean freight.
13. 100 % freight payment for vessels on arrival at first or sole discharge port, consult payment clause of proforma C/P.
14. Laydays are non-reversible.
15. Demurrage/Despatch rates to be stipulated in offer with despatch rates to be one-half of demurrage rates.
16. Vessels offered with layday canceling later than the dates stipulated above will not be considered responsive to this tender.
17. Extra insurance: Any extra insurance on cargo and/or freight for U.S. flag vessels due to age or type to be for owner account basis New York Market rate. Any extra insurance premium on cargo and freight for Non-US flag vessels over 10 years or type to be for owners account basis Lloyds of London., Year of original construction and not rebuilt year to count. Non-U.S. flag vessel to be maximum 20 years of age and classed 100A1 Lloyds Register or equivalent.
18. 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 performed by a certified applicator in accordance with the USDA, FGIS fumigation handbook. Fumigation must be witnessed by FGIS, USDA, 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 re-circulation method of fumigation will be used. For tankers and tug barges other than push mode ITBs surface application will be used. Tween-deck vessels will be considered provided they are acceptable for in-transit fumigation in accordance with USDA, 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 state that the vessel has been inspected and found to be suitable for fumigation and such written statement from certified applicator must be submitted with the offer.
19. At discharge port, and up on inspection by Governments inspectors, if cargo and/or vessel is found to be infested and provided clean bills of lading were issued, fumigation cost, if any, are for owners account. Time will not count for U.S. flag or non-U.S. flag vessels.
20. One- way rate must be quoted in addition to round trip rates for U.S. non-liner vessels whose date of original construction exceed 15 years from date of fixture.
21. U.S. flag offers will not be considered if vessel operator has not provided MARAD with the vessel costs prior to submission of offer.
22. U.S. flag vessels approved rate(s) will be reduced to no higher than MARAD fair and reasonable rate in the event that approved vessel is substituted by a lower cost vessel (including tug and/or barge). For vessel loading less than a full cargo, the less cargo than full cargo freight rate will be subject to a reduction to meet revised MARAD freight rate guideline due to vessel loading other additional cargo.
23. U.S. flag vessels which require prior approval from MARAD to participate in preference cargoes because of operating differential subsidy (ODS), contractual restraints, or because of re-flagging/foreign constructions issues, must obtain such MARAD approval prior to submission of bids.
24. ISM and ISPS Code requirements are incorporated into this charter party.
25. Owners are to appoint agents at loading port(s) and Charterers are to appoint agents at discharging port(s). In all instances, agency fees shall be for Owners account, but are not exceed customary applicable fees.
26. Charterer may require the successful bidders to post a performance bond within five (5) working days from date of freight contract award in the form of a cashiers check or certified check or an irrevocable L/C issued by a first-class U.S. bank equivalent to 5% of ocean freight in favor of the Embassy of The Philippines c/o Trans Global Services L.LC., as agents for charterers. Performance bond to be valid for 30 days beyond the canceling date of the relevant charter party, however, Trans Global Services L.LC. will release said performance bond upon vessels presentation for loading within the contracted laydays. The performance bond is collectible by draft at sight accompanied by a statement from charterer that ship-owner did not perform in accordance with the charter party. Under no circumstances is the performance bond to be considered as the maximum/minimum liability or liquidation of damages incurred due to non-performance of ship owner.
27. Offers must be submitted basis this IFB and the proforma charter party. A copy of the proforma charter party is available from Trans Global Services LLC.
28. Offers must be in writing and may be hand delivered in sealed envelopes, or submitted by fax and must be in accordance with charterers proforma C/P and this freight IFB. Verbal or telephone offers will not be considered.
29. All offers are to be received at Trans Global Services LLC, 1550 Wilson Blvd. Suite 701, Arlington, Virginia 22209, FAX 703 312 0726. All offers must be received by no later than 1100 hours Washington, DC time on January 4, 2006 and are to remain valid through close of business Washington, DC time on January 6, 2006 . If a fax offer begins to print before 1100 hours Washington, DC time on January 4, 2006 and continues past that time, charterers will consider the offer as received on time. All offers will be opened and read in public at the offices of Trans Global Services, LLC.
30. Charterers reserve the right to accept or reject any or all offers.
31. 2.5 % brokerage commission is payable by owners on gross freight/deadfreight/demurrage to Trans Global Services L.LC on U.S. and on non-U.S. flag fixtures if offered direct. If a broker is involved 2/3rd of 2.5 % to Trans Global Services L.LC. and 1/3 of 2.5 % to broker on U.S. and non-U.S. flag fixtures.
32. All offers and awards will be subject to provision of Food for Progress rules and regulations. All awards are subject to approval by USDA and the charterer..
Trans Global Services LLC.
Arlington VA. Tel No. 703 312 0725/ FAX 703 312 0726