USC-8_PWS_Att_3_Rate_Rules_DRAFT_Dec_14.pdf

Attachment 3

1. Rate Rules

1.1. Application of Freight Rates – Containers

All rates included herein are based on Liner Terms and include all costs for normal services from gate to gate.

Except as otherwise provided, all basic ocean freight rates are stated in U.S. dollars and cents per manifested type/size container and apply between cContractor’s terminal at the loading port and the cContractor’s terminal at the discharge port. Basic ocean freight rates shall be applicable to all categories of cargo except as specified below.

1.1.1. Equipment Charges

1.1.1.1. Cargo shipped in flatrack containers shall be freighted at the General Cargo container rate. In addition, the cContractor’s lumpsum flatrack surcharge shall be added to the total for this cargo. The flatrack surcharge applies by route, size of container, and direction of movement. Direction is outbound, inbound, or interport as described in the Carrier Analysis and Rate Evaluation System (CARE II). For outbound identified routes, the first geographic area is the origin. For inbound identified routes, the first geographic area is the destination. Rates for Interport identified routes are the same in all directions. For cargo moving under single factor rates, the flatrack surcharge applicable to the specific route, size and direction is applicable and is in addition to the single factor rate. For shipments that include a port arbitrary, the route used to pay ocean freight shall be used to determine the flatrack surcharge.

This provision is not applicable to excepted commodities.

1.1.1.2. Movement of Empty, U.S. Government-Owned or Leased Containers The basic rate for empty, U.S. Government furnished containers accepted on a space available basis shall be fifty percent (50%) of the general cargo container rate that would apply for the size container. The general cargo container rate shall apply for shipments of two or more collapsed flatrack containers shipped together.

1.1.1.2.1. The Contractor’s contractor’s charges for drayage or inland linehaul of empty U.S. Government containers shall be the same as the Contractor contractor rates contained in the Schedule of Rates (CARE II).

1.1.1.2.2. Accessorial services provided by the Contractorcontractor, in connection with service provided to U.S.

Government containers, shall be at the rates contained in the Schedule of Rates (CARE II).

1.1.1.3. Hazardous Cargo On-Deck Surcharge

The lumpsum surcharge shall only apply, per container, to hazardous cargo requiring on-deck stowage per Coast Guard Regulations. The surcharge shall be in addition to the general cargo container rate. This charge does not apply to excepted commodities.

1.1.1.4. Small Arms Ammunition

Small Arms Ammunition (International Marine Organization (IMO) Class 1.4) is moved at the same rate as general cargo plus a surcharge of $1,000 per container or, for breakbulk shipments, $50 per measurement ton.

1.1.1.5. Twenty Foot Container Formula

1.1.1.5.1. For routes where 20 foot rates are not on contract, 20 foot container ocean rates shall be calculated at 75% of the applicable 40 foot and over dry or reefer rates and rounded to the nearest dollar. If all carriers with rates on contract reject a booking, the 20 foot differential may be used. This formula is not applicable to single factor rates or linehaul rates.

1.1.1.5.2. Rates for drayage or inland service for 20 foot containers may be applied at 85% of the 40 foot drayage, inland, or mileage rate only for locations where 20 foot rates are not on contract. If all carriers with rates on contract reject a booking, the 20 foot differential may be used.

1.1.1.6. Forty Five Foot and Greater Containers

A surcharge of 12.5% of the basic rate for a 40 foot container shall be applied for use of any 45 foot (or greater) container.

1.1.1.7. High-Cube Containers

A container (dry or reefer) in excess of 8’6” in height shall be paid at the same rate as an 8’6” container.

1.1.1.8. Open-Top Containers

Contractor contractor shall be paid a surcharge of $300.00 for the use of Contractor contractor provided, open-top containers.

1.1.1.9. Commingling of U.S. Government Less-than-Container load and Commercial Cargo Government cargo commingled with commercial cargo shall be freighted in accordance with the following formula:

Contractor’s contractor’s basic ocean rate for a 40’ container divided by 59 multiplied by manifested cargo measurement tons; a 20’ container is divided by 29 multiplied by manifested cargo measurement tons.

1.1.1.10. Bulk liquid commodities containerized in U.S. Government owned or leased 20 foot Tank Containers

1.1.1.10.1. The U.S. Government shall pay for bulk liquid containerized service at the rates for each overland linehaul segment; the ocean segment shall be paid at the Contractor’s contractor’s 20 foot general cargo dry container rate, plus a surcharge of $500.00 for each loaded tank container or empty tank container that is not cleaned, sealed and certified. Clean and empty tank containers shall be paid at the Contractor’s contractor’s 20 foot general cargo dry container rate, without the surcharge for the ocean segment. (This includes transportation of Helium Tanks).

1.1.1.10.2. Contractor Contractor provided tank container service is described in PWS, Section 3.A.19 of the performance work statement.

1.1.1.11. Ocean and single factor rates shall be in whole dollars. Any calculated rate shall be rounded to the nearest whole dollar.

1.1.2. Application of Drayage and Inland Rates

All drayage or inland services rates are stated in whole dollars per manifested container size/type and are applicable for drayage or inland services furnished by the Contractor contractor in conjunction with basic ocean services. All drayage and inland rates are for between service.apply in either direction. No directional rates shall apply under this contract. When there is no drayage, inland or mileage rate that would apply for a shipment, charges shall be negotiated with the Contracting Officer (CO) prior to booking. Drayage and inland rates apply for tank open top and flatrack containers unless specifically provided herein. Mileage rates shall be calculated to dollars and cents.

1.1.2.1. Inland Rate Application

1.1.2.1.1. Linehaul and drayage rates apply to points specifically named and to other points, places, ports, and cities as described in Attachment 4. Linehaul and drayage rates also apply to points that (in the United States) are within the Commercial Zone of the named point as described by the 49 CFR Ch. III Part 372, and for points that (in foreign countries) are within 10 miles of the city limits of any location in Attachment 4. .

1.1.2.1.1.1. As an exception to the application of the linehaul rates, service to points identifieds as "Via Inland Customs" include delivery to a specified customs clearance facility, and after customs clearance is completed, delivery to destination.

1.1.2.1.2. In the absence of specific container linehaul rates between points, or if the linehaul or drayage rate exceeds the mileage rate, inland charges are computed using mileage band rates, multiplied by the one-way mileage.

Mileage rates apply by container size. Rates for mileage bands under 51 miles are per container.

1.1.2.1.2.1. Mileage rates apply between points and ports in the country named in the rate table, except,

1.1.2.1.2.1.1. The U.S. mileage rate table shall also apply from/to points in Canada and include ports in the U.S. and Canada. U.S mileage rates apply to CONUS and Canada, not Alaska.

1.1.2.1.2.1.2. European mileage rates apply between ports and points in Germany, Belgium, Luxembourg, Italy, and the Netherlands. These rates apply between points in Italy and ports in Germany, /Belgium,/ and Netherlands and points in Germany/, Belgium/, and Netherlands and ports in Italy, even though the routing is through other countries.

1.1.2.1.3. Application of breakbulk and out-of-gauge container linehaul for shipments to and from Afghanistan and Iraq.

1.1.2.1.3.1. The Contractor contractor shall be paid for service actually provided for multiple pieces where more than one breakbulk piece can be loaded to a conveyance.

1.1.2.1.3.2. The breakbulk linehaul rates and terms shall apply for breakbulk cargo if a Contractor contractor offers both container and breakbulk linehaul rates.

1.1.2.1.3.3. Port transload. The Contractor contractor shall be paid the transload surcharge for Karachi to transfer cargo from flatrack to truck and to flatrack from truck at the Contractor’s contractor’s rates contained in the Schedule of Rates (CARE II).

1.1.2.1.3.4. Super Load Shipments. Rates for super load shall apply to cargo that exceeds 140 inches high but less than or equal to 156 inches high or exceeds 132 inches wide but does not exceed 144 inches wide, or both. The charge shall apply per conveyance at the Contractor’s contractor’s rates contained in the Schedule of Rates (CARE II). Applies to breakbulk shipments only.

1.1.2.1.4. Inland Service by Ferry or by Barge-Ship Systems.

Inland rates shall apply to inland service provided by commercial ferry or by commercial barge ship systems in the following instances:

1.1.2.1.4.1. Between ports in the United Kingdom and ports in Ireland.

1.1.2.1.4.2. Between ports on the mainland of Italy and ports of Sicily and Sardinia.

1.1.2.1.4.3. Between ports in mainland Greece and ports in Crete.

1.1.2.1.4.4. Between ports in Japan and Misawa, Iwakuni, Sasebo Japan.

1.1.2.1.4.5. Within the State of Hawaii, when the inland location is not on the same island as the port.

1.1.2.1.5. Grouping of certain Ports, Cities, and Places

1.1.2.1.5.1. In order to avoid proliferation of rates, certain ports and inland points have been grouped together as described in Attachment 4, City Groupings.

1.1.2.1.5.2. The ports listed below have been grouped. For routings via below listed ports, CARE II SM shall only accept routings that use the port group for drayage, linehaul, and single factor rates.

Port Group Port Members

CONUS

Galveston Bay Galveston, Houston Los Angeles Los Angeles, Long Beach, San Pedro, Wilmington, Terminal Island

Miami Miami, Port Everglades, Fort Lauderdale

New York New York, Bayonne, Newark, Elizabeth, Howlan Hook-

Port Group Port Members Kearney

Norfolk Norfolk, Newport News, Portsmouth, Virginia Beach, Chesapeake

Philadelphia Philadelphia, Pennsauken Puget Sound Bremerton, Seattle, Tacoma San Francisco Bay Area San Francisco, Oakland, Richmond, Mare Island, Alameda

OCONUS

Calcutta/Kolkata Calcutta,/Kolkata Haldia Dammam Dharan, Dammam Manama Karachi

Khalifa Bin Salman, Manama Karachi, Port Qasim

Maputo Maputo, Lourenco Marques Muscat Muscat, Mina Qaboos Naha Naha, Aja Naples Naples, Salerno Thamesport Thamesport, Isle of Grain Jebel Ali Dubai, Jebel Ali

1.1.2.1.6. Rates for drayage or inland service in connection with the transportation of refrigerated cargo are applied at an additional 30% of the basic dry cargo drayage, inland, or mileage rate only for locations where rates for reefer drayage, linehaul or mileage are not on contract. If all carriers with rates on contract reject a booking, the refrigerated differential may be used.

1.1.2.1.7. For linehaul rate calculation purposes, three Tricons or four Quadcons on the same conveyance shall be considered equivalent to one TEU. If booked as breakbulk, the applicable accessorial rates will be applied.

1.1.3. Over dimensional Cargo

1.1.3.1. Selection of the equipment used for ocean transportation shall not result in overlength dimensions when the cargo is loaded on the container unless the Contractor contractor and the U.S. Government mutually agree to this at the time of cargo booking. For example, cargo 24 feet in length shall be loaded on a 40 foot flatrack, not a 20 foot flatrack.

1.1.3.2. Charges for over dimensional cargo stowed on a vessel in containers shall equal the additional ocean rate for equivalent displaced standard dry container(s) by size in accordance with the following formula (which includes use of a flatrack container):

In gauge: BOF (Basic ocean freight) +FRS (Flat rack surcharge) TP (Total price)

Over height: BOF+(BOF x 65%)

+FRS

TP

Over width: B OF+((BOFx2) x 65%)

+FRS

TP

Over height and Overwidth BOF+((BOFx5) x 65%)

+FRS

TP

Formatted: Style 1

NOTE: The blocks in the above examples depict the displaced cells based on shipments being overheight, overwidth, or both overheight and overwidth. The black block is the loaded flatrack and the gray blocks are the displaced cells.

1.1.3.2.1. In-gauge cargo is defined as less than or equal to 456 inches long, 96 inches wide, and 77 inches high for a 40 foot flatrack. Out-of-gauge flatrack cargo is defined as greater than 456 inches long, greater than 96 inches but less than or equal to 132 inches wide, and greater than 77 inches but less than or equal to 115 inches high for a 40 foot flatrack.

1.1.3.2.2. For a 20 foot flatrack, in-gauge cargo is defined as less than or equal to 216 inches long, 96 inches wide, and 87 inches in height. . Out-of-gauge flatrack cargo is defined as greater than 216 inches long, greater than 96 inches but less than or equal to 132 inches wide, and greater than 87 inches but less than or equal to 125 inches high for a 20 foot flatrack.

1.1.3.2.3. Cargo exceeding 90 inches in height shall be considered overheight for open tops.

1.1.3.2.4. A 35% discount off the basic ocean freight rate shall be applied for displaced slots in any configuration.

1.1.3.3. If other than flatracks are used to ship over dimensional cargo, the flatrack surcharge shall not be applied to the formula. If open top containers are used, the open top surcharge shall apply.

1.1.3.4. Flatrack surcharges shall not apply to U.S. Government owned flatracks in the rate computation for over dimensional cargo.

1.1.3.5. Displaced slots for which charges are assessed shall be counted toward the minimum cargo guarantee.

1.1.3.6. Cargo that cannot be loaded on or in an intermodal container (closed, open top, flatrack) prior to stevedoring is not covered by this formula.

1.1.3.7. The over dimensional formula is limited to port-to-port terms only. Basic ocean freight (BOF) is the General Cargo Ocean Container Rate from the Table of Rates

1.1.3.8. This formula can be applied to cargo exceeding either the weight and/or the dimensions defining over dimensional cargo when the U.S. Government and the Contractor contractor mutually agree in writing to do so prior to the cargo booking.

1.1.4. Single Factor Rates

1.1.4.1. These rates include all considerations except for Currency Adjustment Factor (CAF), Bunker Adjustment Factor (BAF), and any accessorials ordered in the booking. Single factor rates can apply to point-to-point, point-to-port, or port-to-point movements. In-gauge cargoes on flatracks can move at the single factor rate subject to the flatrack surcharge for the route.

1.1.4.2. Single factor rates apply from specified origin to specified destination via the ports specified in the single factor rate. Contractors shall designate the port of loading and port of discharge for each single factor rate. Bookings shall be made using the combination of ports designated by Contractors.

1.1.4.3. Contractors may change the ports to be used for a sSingle f Factor rRate or add new port combinations to an existing Ssingle Ffactor requirement by notifying the Contracting OfficerCO. Any change in price shall require approval by the Contracting OfficerCO.

1.1.4.4. Single Ffactor Rrates may not exceed the cost of the same booking using mMultif-Factor reRates.

1.1.5. Cargo Handling

When this service is ordered by the U.S. Government, cContractors shall be paid for each manifest MsT for providing cargo handling services at Contractorcontractor-designated facilities. The rates apply for the commodities and locations specified in the rate without regard to size container size. Cargo handling rates are for the place named in the rate guide and apply for both import and export services.

1.1.6. Guam Inspection Fee for Fruits/Vegetables

Guam Fresh Fruits & Vegetables (FFV) Inspection Fee: Assessed by Guam Customs for inspection of all fresh fruit and vegetable shipments imported into Guam. This is a government set rate at $65 per container.

1.2. Application of Freight Rates – Breakbulk RORO

All rates included herein are based on Free-In, Free-Out (FIO) terms and include all costs for normal service from port to port. Basic ocean freight rates shall be applicable, to the commodity categories as specified below:

General Cargo U.S. Government Owned/Leased Dry Containers Light Vehicles HelicoptersHelicopters Heavy Vehicles

1.2.1. Rates shall be priced based on measurement ton. Rates shall be applied based on MsT, defined as either 40 cubic feet per ton or 2,240 lbs. (long ton), whichever shall generate the highest revenue. U.S. Government owned/leased dry containers should be rated per container size. Only General Cargo shall be rated on a weight or cube basis.

1.2.2. When liner service is required for breakbulk shipments at the load port, discharge port or at both ports, the applicable liner term rate(s) in the Table of AccessorialsCARE II shall be added to the FIO ocean rate for the ports where liner service is ordered.

1.2.3. Extra length charge: For each additional 10 feet or fraction thereof in excess of 45 feet, the extra length charge shall be added to the ocean rate to calculate the total ocean freight.

1.2.4. Hazardous Cargo Surcharge: This surcharge applies to hazardous cargo requiring on-deck stowage by Coast Guard regulations and is expressed as a rate per MsT to be added to the commodity rate for the ocean transportation.

1.2.5. In accordance with booking terms, when the U.S. Government requests the Contractor contractor to provide loading and/or discharging service for self-propelled (operational) wheeled or tracked vehicles, and the vehicle(s) are delivered in an undriveable condition or become inoperable prior to loading or discharge, the U.S. Government shall be liable for the extra handling, such as towing, or pushing cargo incurred by the Contractor contractor at a rate of $75.00 per vehicle at origin, if applicable, and/or $75.00 at destination, if applicable, maximum not to exceed $150.00 per vehicle. The Contractor contractor shall certify that the vehicle is inoperable, stating the TCN and/or vehicle serial number, vessel name and voyage number, sailing date and port of loading/destination. These charges are exclusive of cargo handling for loading/unloading to/from trailer/lowboy or other equipment for movement of normal breakbulk cargo or unit moves.

1.2.6. When ocean service is ordered to a port subject to the Pport Aarbitrary, the Pporta Arbitrary rate in CARE IIthe Table of Accessorials applicable to the specific port is added to the FIO ocean rate for the trade route used to deliver cargo to the intermediate port for transshipment to the arbitrary port. The pPort Aarbitrary surcharge includes costs to load or discharge feeder vessels at intermediate ports.

1.2.7. Vessel Demurrage: Contractor Contractor shall be compensated for berthing delays caused by the U.S.

Government (See Performance Work Statement (PWS), pParagraph 3.I.21.3) based on demurrage rates (per vessel day) in the Schedule of Rates Table 6CCARE II. Charges are prorated for the actual period of delay.

1.2.8 Linehaul for Breakbulk and RORO cargo

Formatted Table

1.2.8.1. For breakbulk shipments requiring inland movement, linehaul rates apply to points specifically named and to other points, places, ports, and cities as described in Attachment 4.

1.2.8.2. In the absence of specific linehaul rates between points within CONUS, inland charges are computed using mileage band rates, multiplied by the one-way mileage. For mileage less that 51, the rates are per conveyance.

1.2.8.3. Mileage rates apply between ports and points in the named country, except that the U.S. mileage rate table shall also apply from/to points in Canada and include ports in the U.S. and Canada and the Northern European Mileage rates apply between ports and points in Germany, Belgium, Luxembourg, Italy, and the Netherlands.

1.3. Application of Rates – Container and Breakbulk

1.3.1. Port Arbitraries: A surcharge is applicable for selected ports designated in PWS, Section 6.7. The port arbitrary shall be in addition to the applicable ocean rate.

1.3.1.1. Port aArbitraries apply to all directions of movement.

1.3.1.2. Port aArbitraries do not apply to single factor rates.

1.3.1.3. PWS, Section 7, paragraph D6.B, identifies the ports for which port arbitraries may be established for this contract. The surcharge shall be listed in the Schedule of Rates Table 6, Accessorial Rates. CARE II.

1.3.1.4. Each pPort aArbitrary, as specified in the Schedule of Rates Table 6CARE II, names a port or zone over which the port arbitrary applies. The applicable ocean rate is the rate to/from this port or zone.

1.3.1.5. Port Arbitraries do not apply to:

Scandinavia, Baltic - Continental Europe, United Kingdom, Ireland, Kuwait - Iraq, or other routes where the ports subject to port arbitraries are named in the ocean route (PWS, Section 7.D6)

1.3.2. Mileage Source

1.3.2.1. The Defense Table of Official Distances (DTOD) is the official source of distances for payment of rates based on mileage and for calculation of standards based on overland distance from point to port and port to point combinations. City/Port groups or zip codes will not be used for mileage calculations. Contractor Contractor shall be paid in accordance with the version of DTOD used by IBS at the time of the booking. The U.S. Government shall provide notification of changes in the version of DTOD used.

1.3.2.1.1. A commercial product that is DTOD-compliant is “PC*Miler” that shall produce distance calculations identical to DTOD. Contractors who have PC*Miler shall be provided a file of the official mileages to be used by IBS for all point to port and port to point combinations using mileage based rates. Contractors should ensure that they have the same version of PC*Miler as used in IBS. Contractors who elect to use another source for computing mileages cannot be provided this file. Should there be any differences in the mileages computed by DTOD and the mileage invoiced by the Contractorcontractor, the Contractor contractor shall be paid based on the DTOD mileages.

1.4. Rate Refresh: All USC rates will be refreshed (re-priced) annually in conjunction with Exercising the Option.

Formatted: Indent: Left: 0", Hanging: 0.5"