Sept 11, 2006
Philippines PL 480 Title 1

Subject: Freight Tender Philippines PL 480 Title I Bagged Rice RP-5027
Freight Tender - Philippines PL 480, Title I, FY2006 - bagged rice to Philippines . P.A. No.: RP-5027
Date: September 8, 2006.

Trans Global Services LLC on behalf of the National Food Authority, Government of The Philippines requests offers of U.S. and Non-U.S. flag geared vessel(s) to transport rice in bags to Philippines under the P.L. 480, Title I, program, P.A. No. RP-5027 as follows: Towed barges are excluded. Integrated tug/barge (ITB) units will be considered. Container carriers will be considered basis delivery to the named discharge port for containers.



1. Cargo / Quantity: Approx. 50,000 NMT US No. 2 Medium Grain rice and or long grain rice at charterer’s option, in new polypropylene bags of 50 kg. net each, plus 2 % extra empty bags, needle and twine freight free. Owners should consider offering a range of quantities to accommodate the quantity of commodity actually purchased. Vessel(s) to be fixed basis minimum/maximum quantities on gross metric tons basis (conversion factor of net to gross weight for 50 kg net bags being 1.0022).



2. Laydays: december 1-25, 2006 and or January 1-25, 2007 at charterer’s option.

Quantity at charterer’s option to be declared on min./max. basis upon fixing. charterers will consider rice in containers up to a maximum of 10,000 MT.

NB: Total quantity estimated approx. 50,000 NMT not to exceed $20 million FAS value.

Owners to state any 10 day period within the above stated laydays in their offer. charterer retains the option to contract in any one or more of above stated layday periods.

Offers giving a canceling date beyond last date of laydays specified will not be considered.



3. Owners to provide minimum Ten (10) days pre-advice of vessel's ETA at load port. Pre-advice received by charterers after 1530 hours Washington , DC time will be considered as received on the following business day.



4. Loading: one to three safe berth(s) each, one to three safe US port(s). The greater New Orleans/Mississippi River area, including, but not north of Baton Rouge, to be considered as one port. Columbia River District, including Portland , Oregon , to be considered as one port. San Francisco Bay area, including Sacramento , Oakland and Stockton , to be considered as one port. Container carriers to stipulate their FAS load ports (port(s) where the bagged rice in containers will be loaded onto the ocean going vessel) in their offer. In accordance with the Purchase Authorization, containers may be loaded at the rice mill(s)or at a sellers’ trans loading facility, seller(s) arranging and paying for the pick up of empty containers from carriers yard/terminal, drayage to their mill or trans loading facility, stuffing the containers and returning same to carriers terminal at the named FAS port. Load terms, other than as stated in this freight tender will not be considered.



5. Load terms: For break bulk cargo: Vessel Load, the bagged rice being delivered to the load port at average rate of 1,500 MT per Weather Working Day, Saturdays, Sundays and Holidays except unless used, actual time used to count (WWDSSHEXUU, ATUC). Service and facility charges, if any, to be for owners' account. Vessel load to include moving bagged rice from ship's side warehouse to vessel. any load port requirements to palletize the bagged rice or place loose bags in slings shall be for owner’s account. For lash/seabee barges, no load rate guaranteed, no demurrage, no despatch and detention charges to be applied and same to be loaded in regular turn and without undue delay. Cargo shall not be loaded into deep wing/wing tanks and other spaces, which are not directly accessible to discharging equipment. Container carriers to make available to seller(s), containers that will be certified a federal or federal cooperator inspector, are wind tight and water tight, acceptable for long term storage and are not more than 10 years old and are not salvaged and have not been mustered out of regular service. There is no load rate guarantee applicable to container service and same will be loaded in regular turn for delivery of stuffed containers by seller(s) in sufficient time for loading onto the ocean going vessel within the contracted delivery period. In event carrier’s container is rejected by the inspector at the mill or at the trans loading facility then carrier is responsible for replacing the rejected container at carriers expense and time.



6. Laytime at load port (s) are to be settled directly between vessel owners and commodity suppliers at load port. Under no circumstances shall CCC or charterers be responsible for resolving disputes involving the calculations of load port laytime or the payment of demurrage or despatch between vessel owners and the commodity suppliers. Any/all disputes between owners and commodity suppliers arising out of this contract relating settlement of laytime issues shall be arbitrated in New York subject to the rules of the Society of Maritime Arbitrators, Inc.



7. Discharge: one (1) to two (2) safe berths each Manila and/or Subic at charterer’s option where following vessel restrictions apply: Max.arrival draft at Manila is 8 M. SW, and at Subic 12 M SW. Container carriers to deliver cargo in the containers to receiver’s agents at the container terminal at the port of discharge as declared by charterer from above named ports.



8. Discharge terms: For all ports: Free Discharge at the average rate of 200 MT per working hatch per day but maximum 1,000 MT per WWDSSHEXEIU, provided vessel IS EQUIPPED WITH FIVE (5)HOLDS WITH INDIVIDUAL BOOM/DERRICK TO EFFECT DISCHARGE at this rate. ACTUAL TIME USED PRIOR COMMENCEMENT OF OFFICIAL LAYTIME SHALL NOT COUNT.

No discharge rate guaranteed for LASH barges. LASH barges to be discharged basis customary quick despatch. Container carrier to deliver the cargo to charterer’s agents at port of Manila and or Subic in containers CY (Container Yard) basis. Charterer’s agents will receive the cargo from container carriers at the rate of 500 MT per day WWDSSHEX EIU. Offers that have discharge terms other than so stated in this tender shall be considered as non responsive to this tender.



9. Geared vessel(s) must be fully geared with minimum capacity of 8 tons each hatch. Gearless vessel(s) to supply and operate sufficient discharging equipment to enable the vessel to discharge at the rate provided as per Cl. 8 above at owners' expense and risk.



10.Vessels 15 years or older and push-mode ITBs must have all openings to cargo spaces and hatch covers suitably sealed with tape or by other means to assure watertight integrity. The sealing shall be done to the satisfaction of NCB surveyor as attested by certification of special survey. All of the above to be performed at vessel’s time, risk and expense. Special survey certificate will be required as a condition of freight payment. Sealing of hatches/openings and special NCB certificate in no way diminishes the owner’s responsibility and liability towards the cargo.



11. Owners are to appoint and pay for agents at load port (s). Charterer to appoint a protective agent at load port(s), owner paying a fee of $1,500.00 per load port to charterer’s agent trans global services, llc. at discharge port , agent to be nominated by the charterer with owner paying customary agency fees provided those fees are competitive. container liner carriers to appoint their own agent at load and discharge port and there will be no charterer’s protective agent at load port.



12. Dues and Taxes: Any taxes/dues/wharfage on cargo at load and discharge ports will be for charterer’s account. any taxes/dues/wharfage on vessel including container cleaning charges at load and discharge ports will be for owner’s account. service and facility charges, if any, at u.s. ports to be for owner’s account. ship agency fees at load and discharge ports shall be owner’s account.



13. Laytime at discharge port to be settled directly between owners and charterers. Owners to prepare and submit within 30 days of completion of discharge a signed laytime statement to TRANS GLOBAL SERVICES LLC. for approval including copies of the statement of fact and notice of readiness duly signed by the master/owners, or owner's agent and charterers / receivers or their agent.



14. Full or partial lightening at discharge port if required, to be at Owners’ risk, time and expense. Lightening to be performed at the territorial water of the Philippines . Owners to remain fully responsible for cargo during the lightening operation. Cost of lightening to be quoted in the offer. If full lightening, laytime at discharge port to commence at 0800 hours next working day after daughter vessel(s) have presented their notice(s) of readiness to discharge. In the event of partial, vessel will not be considered ready until Owners have arranged lightening and vessel has reached the stipulated draft. All time lost before vessel reaches said draft is not to count as laytime used. Laytime is not to commence prior to 0800 hours on the next working day following completion of lightening and presentation of valid notice of readiness. Laytime allowed for full lightening, shall be calculated upon the Bill(s) of Lading gross weight, based upon the discharge Statement of Facts of the daughter vessel(s). Laytime allowed for partial lightening shall be calculated upon the Bill of Lading gross weight based upon the discharge Statement of Facts of both the daughter vessel(s) and the mother vessel. In the event the daughter vessel(s) Statement of Facts are not available then laytime shall be based upon the weight of cargo on board the mother vessel after completion of partial lightening.



15. Freight rate to be quoted for a) Break bulk cargo freight rates to be quoted in U.S. dollars per gross metric ton FAS US Port, basis one loading port and one discharge port. Extra empty bags with needle and twine, to be carried freight free. Additional freight, if any, to be stated for additional load and/or additional load range (s). Premiums for additional load port (s) / ranges will considered in determining lowest landed costs in situations where the commodity is likely to be loaded at more than one port / range. Cost of lightening to be stipulated in the offer. In the event lightening is not performed at the discharge port (s) and vessel discharges directly at discharge berth, said lightening costs shall be deducted from the freight. B) Bagged Rice delivered in Containers FAS container terminal/yard, container carriers to offer freight basis FAS US Load port (named) to the named discharge port and terminal, basis CY terms with demurrage rate applicable after allowed laytime expires at the discharge port. Extra empty bags with needle and twine, to be carried freight free.



16. Laytime will be non-reversible.



17. Demurrage / despatch to be stipulated in offer with despatch rate to be one half of demurrage rate. Freight offers not to contain detention rate. container carriers to stipulate demurrage rate per container per day with no despatch. freight offers not to contain detention rate. Offers will not be considered non-responsive because a detention rate was given, however the related charter party and/or liner booking contracts may not contain a detention rate.



18. At discharge port, on inspection by receivers' inspectors, if cargo and/or vessel or cargo and/or container is found to be infested, and provided clean B/L was issued, cargo and/or vessel or cargo and/or container to be fumigated by owners at their risk/expense, with time counting for U.S. flag and not to count on non-U.S. flag vessels. Fumigation time used for containers will not count as laytime at discharge port.



19. Any additional/completion cargoes must be duly separated and must be compatible and non-injurious to the Philippines PL 480 Title I cargo and must be detailed in the offer or approved by Charterer and USDA if contracted after the Philippines PL 480 Title I cargo. Vessels’ itinerary and geographic proximity of completion cargo(es) will be taken into consideration by Philippines/USDA in approval of such part cargo(es) in order not to impede delivery of cargo to Philippines .



20. If vessel presents after laydays canceling time and date, owners shall be fully responsible for any and all charges including carrying charges (storage, interest, insurance and fumigation charges) that may be assessed by the supplier of the commodity against the charterers.



21. Foreign flag vessel(s) should not be older than 20 years and must be classed highest in the Lloyd's Register or its equivalent. Date of original construction not rebuilt date to govern. Extra Insurance for US flag or Non US Flag on cargo incurred due to vessel's age/type (incl. tug and barge) class/flag/ownership for owner's account. US Flag vessels extra insurance shall be based on New York Market rate and Non US Flag vessel extra insurance premium shall be based on London Market rates.



22. Offers of U.S. flag vessels will not be considered if the vessel operator has not provided the Maritime Administration (MARAD) with the vessel costs prior to submission of the offer.U.S. flag vessel which require prior approval from MARAD to participate in preference cargoes because of Operational Differential Subsidy (ODS) contract constraints, or because of reflagging / foreign construction eligibility issues must obtain such MARAD approval prior to submission of bids. U.S. flag vessel offered subject to MARAD approval will not be considered.



23. U.S. flag vessel(s) 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).

Offers of U.S. flag vessel older than 15 years must indicate an alternate freight rate to be applicable in the event the vessel is either scrapped or vessel is transferred to another owner after discharge at destination but prior to her return to the United States.



24. Offers received shall be considered to warrant that the offered vessel is free from any lien and fully insured and entered in a P and I club.



25. 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).



26. Owners to 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 are 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 matters arising in connection with this vessel and the ISM Code.



27. ISM AND ISPS CODE COMPLIANCE: OWNER GUARANTEES THAT THIS

VESSEL, IF REQUIRED BY THE ISM (NON SELF-PROPELLED BARGES ARE EXEMPT), AND ISPS CODE ISSUED IN ACCORDANCE WITH INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA (1974) AS AMENDED (SOLAS) COMPLIES FULLY WITH THE INTERNATIONAL SAFETY MANAGEMENT (ISM) CODE AND THE INTERNATIONAL SHIP AND PORT FACILITIES SECURITY (ISPS) CODE AND WILL REMAIN SO FOR THE ENTIRETY OF HER EMPLOYMENT UNDER THIS CHARTER PARTY. UPON REQUEST, OWNERS 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. OWNERS ARE TO REMAIN FULLY RESPONSIBLE FOR ANY AND ALL CONSEQUENCES FROM MATTERS ARISING AS A RESULT OF THE OWNER OR THE VESSEL BEING OUT OF COMPLIANCE WITH THE ISM AND ISPS CODE.



28. For US Flag Payment of (one hundred) 100 % of ocean freight, shall be made in accordance with terms of the charter party upon satisfactory notice of vessel’s arrival at the first or sole discharge port as stated in the Charter Party. USDA/CCC will pay the US flag owner the Ocean Freight Differential directly. Charterer will open an irrevocable letter of credit to US flag owner’s favor, confirmed by a prime U S bank. Payment against said letter of credit will be made upon owner submitting the required documents. For NON US flag , charterer will issue an irrevocable letter of credit in favor of the ship owner, confirmed by a prime US bank. Payment of 95 percent of the ocean freight earned shall be payable on vessel’s arrival at the discharge port and against submission of documents as required by the letter of credit. Balance 5 pct of the ocean freight shall be payable upon settlement of demurrage/despatch at discharge port as mutually agreed upon between owners or master or their agent and by charterers or consignee or their agent, Trans Global Services LLC. Any despatch earned shall be deductible from the balance freight. In case of any extra insurance premium due charterer shall also be deducted from the balance ocean freight.



29. All other items and conditions are as per C/P Norgrain as adapted FY 2006 for bagged rice and which is available from TRANS GLOBAL SERVICES LLC.



30. All offers must be received at the offices of Trans Global Services, LLC, 1550, wilson blvd. suite 701 , FAX No: 703 312 0726, no later than 1000 hours, Washington DC time, Sept. 18_, 2006, and offers must remain valid through 1700 hours, Washington DC time, Sept. 22, 2006. Offers may be submitted by letter or fax. No telephone offers will be accepted. Charterers will not consider any fax offers which have not started printing by 1000 hours Washington , DC time sept. 18, 2006. Offers submitted basis “subject open” must lift their subjects by 11.00 AM, Washington , DC time, sept. 20, 2006. Offers received after the time stipulated above or based on other than the terms of this IFB will not be considered responsive to this tender. Only offers which are responsive to this tender will be considered and no negotiation for US Flag offers shall be permitted. Charterers reserve the right to accept or reject any or all offers. Only US flag offers will be opened and read in public.



31. Commissions: For U.S. flag offers, if owners offers are made directly to charterers, a commission of 2.5 % on freight, deadfreight and demurrage is payable to Trans Global Services LLC, vessel lost or not lost. If U.S. flag offers are made through a broker, the commission payable to Trans Global Services LLC is 2/3 of 2.5%. For all Non US Flag offers a commission of 2.5% on freight, deadfreight and demurrage is payable to Trans Global Services LLC. vessel lost or not lost.



For Further information call Trans Global services at 703 312-0725.

End.