Award October 8, 2004



USDA NO. 04-072B-01


LAYCAN: OCTOBER 15-25, 2004


Tender September 23, 2004

Freight Tender: Uzbekistan, Food for Progress, Soybeans in Bulk 
IFB: 04-072B
Date: September 23, 2004

International Services Corp., Wash., D.C. on behalf of the Embassy of Republic of Uzbekistan request offers of U.S. and non-U.S. flag vessels geared or gearless vessels (towed tug barge arrangements are not acceptable) for transportation of approximately 10,000 MT bulk soybeans, full or part cargo, financed under the Food for Progress Program. Cargo to be contracted on a minimum/maximum basis. 

1. Load Port: 1/3 SB, each 1/3 Safe US Port(s), including Great Lakes Ports.
Offerors should specify U.S. Coastal Range or ranges and/or load ports which are 
applicable to their offer. For offers basis U.S. Great Lakes utilizing feeder vessels, offer is to include name and description of feeder vessels. (See Proforma C/P clause 47 for load ranges considered as one port)

2. Laydays: October 15-25, 2004 

3. Owners to provide 14 day pre-advice of vessel readiness to load. Pre-advice notice must be received at the office of International Services Corp. 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. 

4. 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 M/T 4,000 M/T per day
10,000 - 19,999.99 M/T 5,000 M/T per day
20,000 - 29,999.99 M/T 6,000M/T per day
30,000 - 39,999.99 M/T 7,500M/T per day
40,000 - 49,999.99 M/T 10,000M/T per day
50,000 - and above 12,000M/T per day

B) Tankers/contracted quantity in MT Load guarantee in MT
0 - 9,999.99 M/T 4,000 M/T per day
10,000 - 19,999.99 M/T 5,000 M/T per day
20,000 - 29,999,99 M/T 6,000 M/T per day
30,000 M/T- and above 7,500 M/T per day

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 owner’s account. All service and facility charges at load port on owner’s account.

5. 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 Association’s 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 shall be arbitrated in New York subject to the rules of the Society of Maritime Arbitrators, Inc.

6. Any additional completion cargo(es) must be duly segregated by vessel holds and/or compartments, must be compatible and non-injurious to Uzbekistan cargo, and must be approved by charterers/USDA. Cost of separations, if any, for account of owner.

7. 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 carrying charges covering interest, 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 the supplier(s) for carrying charges or a certification from supplier(s) that carrying charges did not accrue.

8. At load port vessel’s agent will be appointed and paid for by owners. Charterer’s to appoint load port protective agents, owner to pay a fee to said load port agent of $1,500 as load port protective agency fee.

9. Discharge port and initial point(s) of discharge: The initial point(s) of discharge in Uzbekistan will be advised. Discharge (transit) port in Baltic Sea range is at ship owner’s option but must be specified in the offer. Owners are to guarantee that the vessels offered are in full compliance with the discharge ports/berth limitations and to bear the full responsibility for such guarantee. 
Lightening, whether full or partial, if required and duly authorized by the port authority, due to mother vessel exceeding the restrictions of discharge port, will be at owners’ account, time, risk, and expense and in accordance with requirement stated below. 
Full or Partial lightening: in the event of full or partial lightening, the lighter vessel(s) must be inspected by Lloyds or equivalent certified surveyor and the certificate of cargo holds inspection will be required for freight payment and to be submitted to CCC for payment. The certificate to state that the lighter vessel(s) holds are dry, clean and, ready and suitable in all respects to receive the bulk cargo. Said inspection to be arranged and paid for by owners. If discharging port is iced, vessels must be able to navigate icy waters in the wake of some icebreakers. If icebreakers are required, owner must arrange and pay for same.

10. Delivery terms: Owners to deliver cargo on a through Bill(s) of Lading to Free On Rail (FOR) at initial point(s) of discharge in Uzbekistan at owner’s time, risk and expense. The initial point(s) of discharge in Uzbekistan are as follows:

5,000 MT to Kasan, Uzbekistan (rail station code 733000) via point of entry of Beyneu and 5,000 MT to Kokand-1, Uzbekistan (rail station code 740004) via point of entry Saragach (formerly Chengeldy). The cargo to Kokand-1 is usually routed to pass through portion of Tadjikistan. 

Receivers for Kasan cargo: Koson Yog Extract, 1, S. Umarov Street, Kasan, Kashkadarya Reg. 731100, Republic of Uzbekistan, Contact: M. Bozorov, Tel (99875) 593-1915, Commercial Code: OKOHX 18121.

Receivers for Kokand-1 cargo: Effective Oil Foreign Enterprise, 94 Usta Bazar Street, Kokand, Ferghana Region, Republic of Uzbekistan, Contact: Yu. Sultanov, Tel (99873) 552-1383.

General Point of Contact for Uzbekistan Government: 
Uzmaslojirtabakprom JSC
POC: Sanjar Rasulov
Tel (99871) 152-6083 / 152-3831
Fax (99871) 152-7857
Email: sanjar@uzpak.uz or sanjar2003uzb@hotmail.com

At the discharge port the cargo will be discharged at a berth arranged by the owner basis full liner terms at owner’s risk, time and expense. Cargo to be discharged into rail wagons and or into shore silo facilities, arranged for and paid by owner. Rail wagons and or shore storage facilities must be clean, dry and capable of receiving charterer’s cargo without contaminating of said cargo. Owner will be fully responsible for any contamination of cargo while cargo in storage or in transit until delivered to Receiver’s agents at named destination point. Rail wagons must be clean, dry and free of any residual materials to receive charterer’s cargo. Any contamination to charterer’s cargo caused by loading into rail wagons arranged for by the owner will be at owner’s liability. Upon completion of loading rail wagons, owner is responsible for assuring that seals are placed on all openings to cargo spaces on rail wagons including but not limited to openings on the top of the rail wagons for inland transport to destination point(s). The cargo to be delivered at initial point(s) of discharge to charterer’s/receiver’s agents named in the Charter Party. Charterer’s/Receiver’s agents will then take cargo in the rail wagons for distribution within the territory of the Republic of Uzbekistan free of cost to the owner. Successful bidder is to provide name of inland freight contractor / point of contact / communication numbers, as well as transportation routing prior to USDA final approval of fixture. Only named inland freight contractor will be acceptable.

11. At discharge (transit) port and at initial point(s) of discharge in Uzbekistan, Charterers/Receivers will arrange an independent survey of the cargo in accordance with their insurance company’s requirements. Owner is to provide full cooperation in this survey and to keep Charterers/Receivers fully informed on vessel’s / rail wagons ETAs so that arrangements for these surveys can be coordinated properly.

12. Freight rates to be quoted basis delivery under through Bill of Ladings to 
Initial Point(s) of Discharge in the Republic of Uzbekistan. The Freight rates to be broken down as follows: :
a) Ocean Freight per Metric Ton port to port.
b) Bulk Discharge cost per Metric Ton.
c) Inland transportation to named initial point(s) of discharge.
d) Cost of full or partial lightening if applicable, to be specified in the offer. In event the said lightening is not performed and vessel discharges directly at berth, USDA/CCC will deduct the cost of lightening from the freight due.
Additional freight per MT on entire cargo for each additional load port used. Premiums for additional load port(s) will be considered in determining lowest landed cost when commodities are likely to be loaded at more than one (1) port. 
Freight offers not to contain DETENTION rate. Offers will not be considered non-responsive because a DETENTION rate was given, however, the related C/P and liner booking contracts may not contain a DETENTION rate. 

13. 65 % freight payment for vessel’s on arrival at first or sole discharge port and remaining 35 % upon arrival at the point(s) of initial discharge. Refer payment clause 46 of proforma charter party (Uzbekistan/FFP/2004).

14. Demurrage/Despatch rate at loading to be stipulated in offer with despatch rate to be one-half of demurrage rate. Vessels offered with layday canceling later than the dates stipulated above will not be considered responsive to this tender.

15. Extra insurance: a) Any extra insurance on cargo and/or freight for U.S. flag vessels due to age or type to be for owner’s account basis New York Market rate. b) Non-U.S. flag vessel to be maximum ten (10) years of age and classed 100A1 Lloyds Register or equivalent. Charterers may accept older vessels up to 20 years old provided any extra insurance premium due to vessel’s age to be for owner’s account. Any extra insurance premium on cargo and freight due to vessel’s age (over 10 years) or type to be for owner’s account basis Lloyds of London.

16. Vessel must be able to be fumigated with an aluminum phosphide preparatioin-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 ITB’s), the re-circulation method of fumigation will be used. For tankers and tug barges other than push mode ITB’s surface application will be used. Tween-deck vessel’s 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.

17. At discharge port and/or at initial point(s) of discharge and upon inspection by Government’s inspectors, 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. 

18. 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.

19. U.S. flag offers will not be considered if vessel operator has not provided MARAD with the vessel costs prior to submission of offer.

20. 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.

21. 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. 

22. ISM and ISPS Code requirements are incorporated into this charter party.

23. 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).

24. Successful bidders must post a performance bond within five (5) working days from date of freight contract award in the form of a cashier’s 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 Embassy of Republic of Uzbekistan c/o International Services Corp., Wash., D.C. as agents for charterers. Performance bond to be valid for 30 days beyond the canceling date of the relevant charter party, however, International Services Corp., as charterer’s agent, will release said performance bond upon vessel’s 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 shipowner.

25. Offers must be submitted basis this IFB and the proforma charter party of Uzbekistan. A copy of the proforma charter party (Uzbekistan/Norgrain/FFP/2004) is available from International Services Corp upon request.

26. Offers must be in writing and may be hand delivered in sealed envelopes, or submitted by fax and must be in accordance with charterer’s proforma C/P and this freight IFB. Verbal or telephone offers will not be considered.

27. Offers are to include ETAs at load port , discharge (transit) port, and initial point(s) of discharge in Uzbekistan. Offers are also to provide full description of vessel offered including vessel’s flag, type, DWT, draft, LOA, Beam, holds/hatches, speed, gear, and all other relevant particulars.

28. All offers are to be received at International Services Corp., 1629 K Street, N.W., Suite 700, Washington, D.C. 20006, Fax: 202/296-1160. All offers must be received by no later than 1100 hours Washington, DC time on September 27, 2004 and are to remain valid through 1700 hours Washington, DC time on September 29, 2004. If a fax offer begins to print before 1100 hours Washington, DC time and continues past that time, charterers will consider the offer as received on time. For “subject open” offers to be considered by Charterers, the “subject open” must be lifted by 1100 hours Washington, DC time on September 28, 2004. 

29. Charterers reserve the right to accept or reject any or all offers.

30. 2.5 % brokerage commission is payable by owners on gross freight / deadfreight to International Services Corp. on U.S. and on non-U.S. flag fixtures if offered direct. If a broker is involved 2/3 of 2.5 % to International Services Corp. and 1/3 of 2.5 % to broker on U.S. and non-U.S. flag fixtures.

31. All offers and awards will be subject to the provisions of the Food for Progress Program rules and regulations. 

For further information please contact International Services Corp. Washington, D.C. Tel. (202) 785-3400, Fax (202) 296-1160, Email: mail@isc-pci.com. Our web site is www.isc-pci.com.