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Sri Lanka PA 1C 5001
Award
ON BEHALF OF THE PRIMA CEYLON LTD,
WE ARE PLEASED TO CONFIRM THE FOLLOWING FIXTURE SUBJECT USDA APPROVAL:
OWNERS: LIBERTY MARITIME CORPORATION AS AGENTY ONLY FOR LIBERTY SHIPPING GROUP
LIMITED PARTNERSHIP.
VESSEL’S NAME: M/V LIBERTY SEA, U.S. FLAG GEARLESS BULK CARRIER BUILT 1984
DWAT 63,739 MT ON 13.12 M DRAFT
LOA 225M BEAM 32.2 M 7 HO/7HA EACH HATCH 14.4 M X 15 M
SPEED 15 KNOTS
CLASSED HIGHEST ABS
COMMODITY: WHEAT IN BULK
QUANTITY 53,261 MT 5% MOLOO
LAYDAYS: AUGUST 25-SEPTEMBER 5, 2002
LOADPORT: ½ SB 1 SP COLUMBIA RIVER DISTRICT INCLUDING PORTLAND, OREGON
DISCHARGE PORT: ONE SILO BERTH AT PRIMA JETTY, TRINCOMALEE, SRI LANKA
TERMS: AS PER TERMS OF FREIGHT IFB, GROSS LOAD/FREE DISCHARGE
DEMURRAGE/DES: USD 10,000/5,000
FREIGHT RATE: USD 57.78 PMT
COMMISSION: 2.5% TO STAR TRADING & MARINE, INC.
ALL OTHER TERMS AND CONDITIONS AS PER FREIGHT IFB AND SRI LANKA PRFORMA C/P.
BEST REGARDS
STAR TRADING & MARINE, INC.
AS AGENTS ON BEHALF OF
PRIMA CEYLON LTD
Tender
FREIGHT INVITATION FOR OCEAN TRANSPORTATION OF UP TO 60,000 METRIC TONS
OF WHEAT GRAIN IN BULK FROM UNITED STATES PORTS, INCLUDING CANADIAN TRANSSHIPMENT POINTS
TO SILO BERTHS AT TRINCOMALEE, SRI LANKA
Star Trading & Marine, Inc. as agents for and on behalf of Prima Ceylon Limited, solicits freight offers IN DUPLICATE for U.S. flag and non-U.S. flag vessels: bulk carriers, tweendeckers, tankers, push-mode ITB’S and Lash/Seabee barges (ocean going tug/barges are excluded), for the transportation of the following quantity of wheat, subject to PL-480 Title I Regulations and Purchase Authorization
1C-5001-:
A. Commodity: Wheat in bulk.
B. Details:
Quantity
Type of Wheat
Delivery Period
Laydays
Approximately
60,000 MT
5% MOLOO
U.S. No. 2 or better Dark Northern Spring Wheat in Bulk
August 20-Sept 10, 2002
August 25-Sept 5, 2002 Basis Usnorpac
August 20-30, 2002
Basis Usgulf
Vessels offered with cancelling date beyond the laydays specified above will not be considered. Owners should ensure that the laydays stipulated are strictly adhered to.
C. Loading:
One (1) to two (2) safe berths each port, one (1) to two (2) safe U.S. ports or Canadian transshipment points. Cost of shifting between loading berths at the same port and all other port expenses, including bunker fuel used, to be for Owners’ account, time not to count. The Owners must quote in their offer the additional freight per metric ton for additional loadport(s), if used. Premiums for additional loadport(s) will be considered in determining lowest landed cost in those situations when commodities are likely to be loaded at more than one port.D. Discharging:
One silo berth at Prima Jetty, Trincomalee, Sri Lanka. The limitations at the Prima Jetty are as follows:
MAX DISPLACEMENT : 80,000 M/T
MAX DRAFT : 14 Meters
MAX LOA : 240 meters
(vessel with LOA longer than 240 meters will be considered on a case to case basis. Time and cost of shifting will be for Owner’s account)
MAX BEAM : 34 Meters
MAX BREADTH : 36 Meters
MAX HATCH DEPTH : 22.5 Meters
MAX HEIGHT OR WATER LEVEL TO TOP OF HATCH COMING : 17.4 Meters
MAX DISTANCE FROM SHIPSIDE TO HATCH COMING : 10 Meters
Vessels deviating from the above limitations may be considered, provided vessels either lighten or Owners have obtained clearance that such vessels could be berthed for discharge at the Prima Jetty, Trincomalee. This clearance could be obtained from Prima Ltd., telex: PRIMA RS 21407/21003 who act as buyer/receivers of cargo.. The aforesaid clearance must be produced with offer of vessel(s).
E. Terms and Conditions:(1) Load Terms: Cargo to be loaded according to berth terms with customary despatch at the average rate as delineated below on vessel’s contracted quantity. The rates are basis tons of 2,204.6 pounds per weather working day, Sundays and holidays excepted, even if used.Vessel
Contracted Quantity
Loading Guarantee
Bulk Carriers:
0 – 9,999.99 M/T4,000 M/T Per Day
10,000 – 19,999.99 M/T5,000 M/T Per Day
20,000 – 29,999.99 M/T6,000 M/T Per Day
30,000 – 39,999.99 M/T7,500 M/T Per Day
40,000 – 49,999.99 M/T10,000 M/T Per Day
50,000 M/T and above
12,000 M/T Per Day
Tankers:
0 – 9,999.99 M/T4,000 M/T Per Day
10,000 – 19,999.99 M/T5,000 M/T Per Day
20,000 – 29,999.99 M/T6,000 M/T Per Day
30,000 M/T and above
7,500 M/T Per Day
Tweendeckers:
3,000 M/T Per Day
Lash/Seabee Barges:
Load guarantee not to apply. (No demurrage/no despatch at either end.
Cargo to be loaded, stowed, and trimmed at Owners’ expense. Service and facility charges at loading, if any, are for the Owners’ account.
(2) The Greater New Orleans Area, including but not North of Baton Rouge; all Mississippi River ports north Baton Rouge; the San Francisco Bay Area, including
Stockton and Sacramento; the Columbia River District including Portland, Oregon; and
also Puget Sound, shall be considered respectively as one loading port.
(3) Owners to give Charterers or their Agents minimum ten (10) days’ pre-advice of vessel’sestimated time of arrival at loadport. Pre-advice must be received at the office of Star Trading & Marine, Inc., prior to 1100 hours, Washington, D. C., time, on a regular
business day to be considered received on that day. If the pre-advice is received after 1100 hours, Washington, D. C., time, on any business day, or weekend or holiday, the pre-advice will be considered received on the next business day.
(4) Owners/Agents to give Notice of Readiness to Charterers/Agents during normal working hours on business days. Vessels not to tender on Saturdays, Sundays and holidays. Notice to be tendered/accepted only after the vessel has been entered to the Custom Ho
use, accompanied by NCB surveyor and USDA grain inspector passes of vessel’s readinessin all compartments to load.
5) Laytime at first loading and discharging port to commence at 0800 hours the next regular working day after vessel tenders, during regular business hours, whether in berth or not. Prior time, if used, not count. Laytime at second or subsequent ports of loading or
discharging to commence on arrival.
6) Loading laytime accounts to be settled directly between Owners and commodity supplier(s). Laytime calculation, overtime and trimming to be accordance with A Addendum No. 1 of the North American Grain Export Association’s F.O.B. Contract No. 2(revised August 1, 1988), Clauses 1-10, inclusive, (hereinafter N.A.E.G.A.), regardless of the type of vessel.
Further, the following modification to N.A.E.G.A. 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 commodity supplier(s). Any and all disputes 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.
7) Vessels to discharge at grain berth at a rate of 4,000 metric tons for bulk carriers and 2,000 metric tons for multi-deckers (including liners) per weather working day of twenty- four (24) consecutive hours, Saturdays, Sundays and Charter Party and local holidays
excepted, even if used. Lash/Seabee vessel load/free out terms to discharge at the rate of 1,500 metric tons per weather working day of twenty-four (24) consecutive hours, Saturdays, Sundays and Charter Party and local holidays excepted, even if used. Tow
barges are excluded. Push-mode integrated tug/barge (ITB) units will be considered.
8) Notice of Readiness to discharge to be tendered to Charterers/Charterers’Agents/Elevators at Trincomalee during normal office hours (0830 to 1615 hours Mondays to Fridays) only after the vessel has passed the Customs House and obtained free pratique.Laytime is non reversible for U.S. flag vessels and non-U.S. flag vessels
(10) 9) laytime is non reversible for U.S. flag vessels and non-U.S. flag vessels.
10) Tankers accepted only on full lightening basis, see Clause E(28). Provisions of Clause
E(28) also to apply to bulk carriers that fully lighten.
11) Transshipment is not allowed.
12) Stowage in deep tanks is prohibited.
13) Stowage and trimming at Owners’ risk and expense.
14) Dunnage and separations where necessary should be used and will be for Owners’account. Owners should ensure that different grades of wheat are stowed in separate holds. Grades of wheat per shipment may not exceed three (3).
15) Substitution of vessels not allowed unless caused by force majeure or agreed to by the
Charterers and subject to approval by USDA.
16) Freight rate to be quoted per metric ton basis gross load free discharge with demurrage/despatch. Demurrage and despatch at discharge port to be settled directly between the Owners and Charterers.
Under no circumstances shall CCC be responsible for resolving disputes involving calculation of laytime or payment of demurrage or despatch between Charterers and the vessel Owner. Any and all disputes between Charterers 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.
17) Owners are encouraged to include in their offers the following information: vessel name, name and address of registered Owners and/or disponent owners and/or managers, vessel’s flag and type, year built, maximum deadweight, number of holds and hatches(sizes), gears, LOA, beam, air draft, SWAD, itinerary, ETA loadport, probable ETA discharge port (transit time), commissions, terms, etc.
18) Owners guarantee that this vessel complies fully with the International Safety Management (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 to provide Charterers with satisfactory evidence of compliance if required to do so and to remain fully responsible for any and all consequences resulting directly or indirectly from any matter arising in
connection with this vessel and the ISM Code.
Section 408 of the Coast Guard Authorization Act of 1998, Public Law 105-385 (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 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 owners/operators are not disqualified to carry such government impelled (Preference) cargo(es).
19) The vessel offered shall not be older than 15 years but up to 20 years will be considered, provided such vessels have obtained waiver from Lloyd’s Underwriters or the Institute ofLondon Underwriters. (The provision of this clause will not apply to U.S. flag vessels.)
20) U.S. flag vessels offered subject to U.S. Maritime Administration (MARAD) approval will not be considered. If MARAD approval of vessel is required, same must be obtained before submission of offer.
21) One-way rate must be quoted in addition to round-trip rate for U.S. non-liner vessels whose date of original construction exceeds 15 years from the date of fixture.
22) U.S. flag approved rate will be reduced to no higher than the Maritime Administration’sfair and reasonable rate in the event that the approved vessel (including tug barge) is substituted by a lower-cost vessel.
23) Offers of U.S. flag vessels will not be considered if the vessel operator has not provided the Maritime Administration with the vessel costs prior to submission of the offer.
24) At the discharge port and upon inspection by government, if cargo and/or vessel is found to be infested and provided clean bills of lading were issued, fumigation costs, if any, are for Owners’ account. For U.S. flag vessels, time used for fumigation is to count. Fornon-U.S. flag vessels, time used for fumigation is not to count.
25) Extra insurance on cargo and freight by reason of vessel’s age, classification, flag,registry, ownership, etc., if any, to be for Owners’ account at the rate not exceeding theprevailing New York market rate for U.S. flag vessels, and the London market rate for
non-U.S. flag vessels. Payment of such extra insurance to be made against receipted invoice.
26) Freight offers should not contain a "detention rate". Freight offers will not be considered non responsible solely because a detention rate was given, however, the related charter parties and liner booking contracts may not contain a detention rate.
27) Fumigation: Vessels 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 Handbook. Fumigation must be witnessed by FGIS, USDA, and the aluminum phosphide preparation must be contained
in packaging described in the Fumigation Handbook. Dust retainers must be used. For bulk carriers (including push-mode ITB’s), the recirculation method of fumigation will beused. For tankers and tug barges other than push-mode ITB’s, surface application willbe used. (See below regarding tweendeck vessels.)
Tweendeck vessels will be considered provided they are acceptable for in-transit fumigation in accordance with the FGIS Fumigation Handbook. Offers of such tweendeck 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 additional, tweendeck 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.
28) Special Provision Concerning Full Lightening: Owners will lighten full cargo into lighters (daughter vessels), suitable and fully complying with local regulations and restrictions, at Owners’ time, risk and expense. Such lightening vessels to be oceangoing, geared bulk carriers (minimum 20,000 DWT), clean and suitable for grain carriage. Owners undertake to comply with port and harbor authorities’ limitations,restrictions and instructions at discharge port.
If Owners intend to lighten, the offers should specify cost of lightening and whether partial or full lightening.
If lightening is not performed at the discharge port and the vessel directly discharges at berth, USDA will deduct the lightening cost from the ocean freight.
Cargo to be discharged from lightening vessel(s) by consignee or assignee, free out at the average discharge rate of 4,000 metric tons per weather working day of twentyfour (24) consecutive hours, Saturdays, Sundays and Charter Party and local holidays excepted, even if used. Time lost through breakdown of winches not to count as laytime. If the vessel(s) are detained longer, Charterers to pay demurrage in U.S. currency per day or pro rata for part of a day for all time used in excess of allowed laytime. If sooner discharged, Owners to pay despatch to Charterers in U.S. currency per day or pro rata for part of a day for laytime saved.
For laytime calculations for the laytime used at discharge port by the lightening vessel(s), the laytime used by each of these vessel(s) is to be added in order to arrive at a single figure of the time lost or saved in relation to the total time allowed for discharging such lightening vessel(s). One-third of laytime lost or saved, so computed on the lightening vessel(s) shall be utilized for determining demurrage or despatch.
No demurrage, no despatch to be considered for the time used by the mother vessel at the point of lightening to discharge into the lightening vessel(s).
Owners to provide promptly to receivers an all-risk insurance policy covering the cost of the cargo and freight from the period starting from arrival of the mother vessel in the receiving country and continuing through the lightening operation until final discharge of the whole cargo.
F. Freight Payment:
For U.S. flag vessels: one hundred percent (100%) of the freight to be paid on arrival of vessel at discharge port on loaded quantity as per bills(s) of lading.
For non-U.S. flag vessels: ninety-five percent (95%) of the total freight to be paid upon vessel’s arrival at discharge port and five percent (5%) balance of freight will be paid upon settlement of demurrage or despatch upon receipt of discharging documents.
G. The Charterers’ Agents at discharge port, the Owners paying customary fees subject to these fees being competitive with other agents, shall be the JRS Shipping (Pvt) Ltd., 308 Sea Street, Colombo-11, Sri Lanka; Tel:94-1335550, 074-718418 Fax 94-1-325937 Email jeganath@stinet.1k .
H. Other terms and conditions will be as per Baltimore Berth Grain Charter Party as adopted in July 1986 and revised in April 2002, available upon request.
G. For U.S. flag vessels loading less than a full cargo, the less-than-full-cargo freight rate will be subject to a reduction to meet any revised Maritime Administration freight rate guideline due to vessel’s loading other additional cargo. Vessels are prohibited from carrying other cargoes without specific waiver from Charterers and the approval of USDA.
J Bid Bond
Bidders’ offers must be supported by an unconditional Bid Bond in the form of a cashier’s check or certified check or irrevocable letter of credit in favor of Prima Ceylon Limited, in the amount of US$10,000, on each vessel offered, to be collectible by drafts at sight accompanied by a statementfrom Star Trading & Marine, Inc. that Owners have withdrawn their offer prior to the expiration of the validity date and time set forth in the Freight Invitation for Bids.
The above-mentioned Bid Bond will be returned to the unsuccessful bidders after issuance of the Notice of Award to the successful bidders. For successful bidders, the cashier’s check or certified check shall be returned to the bidders or the letter of credit shall be automatically cancelled after presentation and acceptance by Charterers or their Agents of the Performance Bond.
K. Performance Guarantee
Successful bidders shall furnish to the Charterers or their Agents within seven (7) working days after receipt of confirmation of the fixture, a Performance Bond in form of a certified check, cashier’s check, or an irrevocable letter of credit issued by a prime U.S. bank in favor of the General Manager, Prima Ceylon Limited, P.O Box No. 1, China Bay, Trincomalee, Sri Lanka, Fax No. 026-33208, in the amount equivalent to one percent (1%) of the aggregate freight value or US$25,000, whichever is higher, collectible against a statement from Charterers or their Agents that the vessel Owners failed to perform in accordance with the provisions of the governing Charter Party or to present the vessel, passed and ready in all respects to commence loading, within the agreed laydays.
The above Performance Bond shall remain valid through completion of loading and vessel sailing, at which date the letter of credit will be automatically cancelled or the check will be returned to the Owners.
L. Charterers’ Shipping Agents in the United States is:
Star Trading & Marine, Inc.
1050 Seventeenth Street, N. W., Suite 450
Washington, D. C. 20036
Cable: TRASTAR
Fax No.: (202) 223-4680
M. Commission – U.S. Flag Vessels
For all shipments on U.S. flag vessels, total commission not exceeding 2.5% permitted by PL-480, Title I Regulations is payable to Star Trading & Marine, Inc., as follows:
(a) In case no shipowners’ broker is involved:
¨ Total commission of 2.5% is to be for Star Trading & Marine, Inc.
(b) In case a shipowners’ broker is involved:
¨ 1/3 of 2.5% commission to be for Owners’ broker¨ 2/3 of 2.5% commission to be for Star Trading & Marine, Inc.
Any brokerage commission due to a broker is to be settled directly between the owners and the
broker.
N. Commission – Non-U.S. Flag Vessels
For all shipments on Non-U.S. flag vessels, total commission not exceeding 2% is payable to Star Trading & Marine, Inc., as follows:
(b) In case no shipowners’ broker is involved:
¨ Total commission of 2% is to be for Star Trading & Marine, Inc.
(c) In case a shipowners’ broker is involved:
¨ 1/3 of 2% commission to be for Owners’ broker¨ 2/3 of 2% commission to be for Star Trading & Marine, Inc.
Any brokerage commission due to a broker is to be settled directly between the Owners and the broker.
0. Offers are to be addressed to the General Manager, Prima Ceylon Limited C/O Star Trading & Marine, Inc. 1050 Seventeenth Street, N.W. Suite 450, Washington, D. C., 20036, by sealed envelope or by Fax No. (202) 223-4680 and to be received at the above-mentioned address not later than 1100 hours Washington, D. C., time on Tuesday, June 18, 2002. If a telefax offer begins to print before 1100 hours on June 18, 2002, and continues printing past that time until completion, Charterers will consider the offer as if it had completed printing by 1100 hours. Charterers will not consider a telefax offer which begins printing after 1100 hours on June 18, 2002.
Offers will be opened and read in public at the above address immediately after closing.
Offers are to remain valid through close of business Friday, June 21, 2002.
Offers based on other than the terms of this IFB will not be considered responsive. Only offers which are responsive to this tender will be considered, and no negotiation will be permitted.
Vessel Owners and brokers should consider offering vessels to carry a range of tonnage in the event that the quantity purchased is more or less than the quantity stated in this tender.
All offers and subsequent awards of contracts and, in particular, the eventual apportionment of the cargo between U.S. and non-U.S. flag vessels will be subject to USDA approval and to the provisions of PA 1C-5001 and PL-480, Title I Regulations pursuant thereto.
Charterers reserve the right to accept or reject any or all offers.
Lin Hsin Hui
General Manager
Prima Ceylon Limited
C/O Star Trading & Marine, Inc.
1050 Seventeenth Street, N.,W. Suite 450
Washington, D.C. 2036
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