06_USC-9_PWS_Att_3_Rate_RulesDRAFT.pdf

DRAFT

Universal Service Contract - 9 Exhibit 3, Performance Work Statement, Attachment 3

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 contractor’s terminal at the loading port and the contractor’s terminal at the discharge port. Basic ocean freight rates shall be applicable to all categories of cargo except as specified below.

1.1 Equipment Charges

1.1.1 Cargo shipped in flatrack containers shall be freighted at the General Cargo container rate. In addition, the contractor’s lump sum 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.

1.1.2 Movement of Empty, Government-Owned or Leased Containers

The ocean rate for empty, 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.

1.1.2.1 The contractor’s charges for drayage or inland linehaul of empty Government containers shall be the same as the contractor rates contained in the Rate Guide.

1.1.2.2 Accessorial services provided by the contractor, in connection with service provided to Government containers, shall be at the rates contained in the Rate Guide.

1.1.3 Hazardous Cargo On-Deck Surcharge

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

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 (MTON).

1.1.5 Twenty Foot Container Formula

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.

1.1.5.2 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.

1.1.6 Five Foot and Greater Containers

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

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.

1.1.8 Open Top Containers

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

1.1.9 Bulk liquid commodities containerized in Government owned or leased 20 foot Tank Containers

1.1.9.1 The 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 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 20 foot general cargo dry container rate, without the surcharge for the ocean segment. (This includes transportation of Helium Tanks).

1.1.9.2 Contractor provided tank container service is described in Exhibit 3, Performance Work Statement (PWS), Paragraph6.H.

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

1.2 Application of Drayage and Inland Rates

1.2.1 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 in conjunction with basic ocean services. All drayage and inland rates apply in either direction. 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.

1.2.2 Linehaul and drayage rates apply to points specifically named and to other points, places, ports, and cities as described in Exhibit 3, PWS, Attachment 4. Linehaul and drayage rates within the United States also apply to points that are within the Commercial Zone of the named point as described by 49 CFR Ch. III Part 372, and to points (even if not named in Exhibit 3, PWS, Attachment 4) that are within 10 miles of the city limits of any location named in the rightmost column (labeled Locality) of Exhibit 3, PWS, Attachment 4. Linehaul and drayage rates outside the United States also apply to points that (even if not named in Exhibit 3, PWS, Attachment 4) are within 10 miles of the city limits of any location named in the column labeled Locality of Exhibit 3, PWS, Attachment 4.

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

1.2.4 In the absence of specific container linehaul rates between points, inland charges are computed using mileage band rates, multiplied by the one-way mileage per mileage bands greater than 50 miles. Mileage rates apply by commodity/container size. Rates for mileage bands up to 50 miles are per container for container shipments and per conveyance for breakbulk shipments. Mileage calculation between bands will be calculated using the rate from the next higher band (i.e. 75.3 miles will use the rate from mileage band 76-100). Using the rate from the next higher mileage band only applies when the actual mileage falls between bands, and the actual mileage will still be used in the calculation (i.e. 75.3 miles will use the rate for band 76-100, but the cost will be calculated as 75.3 x rate).

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

1.2.5.1 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.

1.2.5.2 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.

1.2.6 Application of Breakbulk and Out-Of-Gauge Container Linehaul to and from Afghanistan and Iraq.

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

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

1.2.6.3 Port transload. The 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 rates contained in the Rate Guide.

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

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

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

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

1.2.7.1.3 Between ports in mainland Greece and ports in Crete.

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

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

1.2.8 Grouping of certain Ports, Cities, and Places

1.2.8.1 In order to avoid proliferation of rates, certain ports and inland points have been grouped together as described in Exhibit 3, PWS, Attachment 4.

1.2.8.2 The ports listed below have been grouped. For routings via below listed ports, Contractors should only offer routings that use the port group for drayage, linehaul, and single factor rates.

Port Group (CONUS) Ports 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-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

Port Group (OCONUS)

Accra Calcutta/Kolkata

Accra, Tema Calcutta,/Kolkata Haldia

Dammam Dharan, Dammam Manama Karachi

Khalifa Bin Salman, Manama Karachi, Port Qasim

Maputo Maputo, Lourenco Marques Muscat Muscat, Sultan Qaboos Naha Naha, Aja Naples Naples, Salerno Thamesport Thamesport, Isle of Grain Jebel Ali Umm Said

Dubai, Jebel Ali Umm Said, Hamad

1.2.9 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.

1.2.10 For linehaul rate calculation purposes, three Tricons or four Quadcons linked in a 20 foot container configuration shall be considered equivalent to one TEU. If booked as breakbulk, the applicable accessorial rates will be applied.

1.3 Over dimensional Cargo

1.3.1 Selection of the equipment used for ocean transportation shall not result in over length dimensions when the cargo is loaded on the container unless the contractor and the. 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.

1.3.2 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):

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

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.

1.3.2.2 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.

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

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

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.

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

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

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.

1.3.7 The over dimensional formula is limited to port-to-port terms only. Basic ocean freight (BOF) is the General Cargo ocean container rate in the Rate Guide.

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

1.4 Single Factor Rates

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.

1.4.2 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.

1.4.3 Contractors may change the ports to be used for a single factor rate or add new port combinations to an existing single factor requirement by notifying the Contracting Officer. Any change in price shall require approval by the Contracting Officer.

1.4.4 Single factor rates may not exceed the cost of the same booking using multifactor rates.

1.4.5 Unless specified elsewhere in the contract, Single-Factor Rates apply only to container rates, and may be either from port or from door, and to either to port or to door. Rates to or from Door are based on city groups, not on drayage zones. For those city groups with multiple drayage zones, door rates shall apply to all locations within the city group.

1.4.6 Single factor rates for the shipment of tobacco products from CONUS to Italy are inclusive of armed security escorts and additional insurance required to move this commodity from POD to destination IAW Italian law, as well as any host-nation directed stops for customs clearance. Any fines assessed by the Italian Government for instances of missing tobacco will be for the account of the carrier.

1.5 Cargo Handling

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

2. APPLICATION OF BREAKBULK AND RORO RATES

2.1 Breakbulk Freight Rates

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:

2.1.1 Rates shall be priced per MTON for Heavy Vehicles, Light Vehicles, and Helicopters. For General Cargo, rates shall be priced per MTON except in cases where Long Tons (2,240 lbs) will generate the highest revenue. In these cases, the MTON rate shall be applied per Long Ton. Government owned/leased dry containers should be rated by container size. If a government owned container rate is not available, the Ordering Officer may use the General Cargo Rate for Government Owned/Leased Dry Containers.

2.1.2 When liner service is required for breakbulk shipments at the POE, POD, or both, the applicable liner term rate in the Rate Guide shall be ordered in the booking for the ports where liner service is required.

2.1.3 Extra length charge: For each piece of cargo in excess of 45 feet, the extra length charge shall apply. The surcharge shall only apply once per piece of cargo and shall be priced on a per measurement ton basis. When applicable, the rate specified in CARE will be multiplied by the total MTONs of the piece to obtain the total cost for this accessorial. The extra length charge is only applicable on the General cargo commodity and only applies to the ocean portion of the move.

General Cargo Government Owned/Leased Dry Containers Light Vehicles Helicopters Heavy Vehicles

Sample calculation: Cargo is 60’ in length and 55 MTONs; $25 per MTON (extra length charge) x 55 MTONs = $1,375 total extra length charge

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

2.1.5 When ocean service is ordered to a port subject to the port arbitrary, the port arbitrary rate in the Rate Guide 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 port arbitrary surcharge includes costs to load or discharge feeder vessels at intermediate ports.

2.2 Linehaul Rates for Breakbulk and RORO cargo

2.2.1 For breakbulk shipments requiring inland movement, linehaul rates apply to points specifically named and to other points, places, ports, and cities as described in Exhibit 3, PWS, Attachment 4, and to any point located within 10 miles of the city limits of any location in Exhibit 3, PWS, Attachment 4.

2.2.2 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 up to 50 miles, the rates are per conveyance.

2.2.3 Mileage rates apply between ports and points in the named country only. Exceptions: the U.S. mileage rate table shall also apply from/to points in Canada as well as to/from ports in both countries. The Northern European Mileage rates apply between ports and points in Germany, Belgium, Luxembourg, Italy, and the Netherlands.

3. APPLICATION OF RATES – CONTAINER AND BREAKBULK

3.1 Port Arbitraries:

3.1.1 A surcharge is applicable for selected ports designated in Exhibit 3, PWS Attachment 12. The port arbitrary shall be in addition to the applicable ocean rate.

3.1.2 Port arbitraries apply to all directions of movement.

3.1.3 Port arbitraries do not apply to single factor rates.

3.1.4 Exhibit 3, PWS, Attachment 12 identifies the ports for which port arbitraries may be established for this contract. The surcharge shall be listed in the Rate Guide.

3.1.5 Each port arbitrary, as specified in the Rate Guide, names a port or zone over which the port arbitrary applies. The applicable ocean rate is the rate to/from this port or zone.

3.1.6 Port Arbitraries do not apply to:

3.1.6.1 Scandinavia, Baltic - Continental Europe, United Kingdom, Ireland

3.1.6.2 Kuwait - Iraq,

3.1.6.3 Other routes where the ports subject to port arbitraries are named in the ocean route (Exhibit 3, PWS, Attachment 12)

3.2 Mileage Source

3.2.1 The Defense Table of Official Distances (DTOD) is the source of worldwide overland distances calculations, and shall be used when calculating the number of miles for overland moves (e.g. point to port and/or port to point) with rates based on the number of miles or mileage band. Contractor shall invoice and be paid in accordance with the current version of DTOD at the time of the booking.

Example of DTOD use:

1. Mileage calculation to obtain relevant mileage band for mileage rates

2. Mileage calculation for the 10-mile rule for Drayage and Linehaul rates as described in paragraph 1.2.2 of this attachment.

3.3 Rate Refresh

All USC rates will be refreshed (re-priced) annually in conjunction with Exercising the Option. Rates will be applied based on the vessel sail date at the time of initial offer. If cargo rolls from one contract year to the next, the rates would remain for the contract year under which the cargo was initially offered.

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

1.5 Cargo Handling

3.3 Rate Refresh