MOT

General Information

Ocean Break Bulk

Rates are per metric ton for all big bagged or palletized chemicals and all regular cargo up to 1.8 CBM. This implies that provided the volume of a piece (mainly chemicals) remains under 1.8 CBM, the weight in tonnes (1 ton=1000KG) will be used to calculate cost. Beyond that the Revenue Ton logic will apply so either weight or volume in cubic meters, the greater of the two to be used to calculate cost.

Pre-Carriage

The Pre-carriage is a mandatory cost component. Pre-carriage is aimed at covering the cost of moving the goods (usually trucking) from indicated origin base to participant chosen port of departure. However, SLB reserves the right to use pre-carrriage services of another provider in case those are more competetive.

On-Carriage

The On-carriage is a mandatory cost component where scope of work involves last mile transportation (PTD, DTD). On-carriage is aimed at covering the cost of moving the goods (usually trucking) from destination port of entry to destination base city (SLB facility or warehouse location). Note that scope covered in this project is door-to-port, however quotation of on-Carriage services is mandatory.

Drayage

NOTE that the concept of drayage is no longer in use and has been replaced with pre/on-carriage quotes directly on each lane.

Important Concepts

Definitions & Rules

Concept "PAYANT POUR"

The “Payant pour” concept applies for all weight breaks, i.e. SLB will not accept to pay more for a shipment in a particular weight break than the minimum shipment price of the next weight break.

Maximum Permissible Transit Time

SLB will define a Maximum Permissible Transit Time ("MPTT") for lanes it deems critical. Transit time criteria is critical for proposal scoring; the better transit time the more points supplier receives. Supplier is not allowed to quote transit times which are worse than the MPTT. Supplier is allowed to quote better transit times.

Actual weight

The actual weight of a shipment is the sum of all gross weight of each piece that is part of the shipment, as measured in KG.

Chargeable weight

For break bulk, chargeable weight corresponds to actual weight

Rules about Rate and Pre-Carriage / On-Carriage

Participant must quote for origin and destination pick-up & delivery services. The origin trucking route will consist of the origin base city named by SLB and participant's chosen port of departure. The destination trucking route will consist of destination base city named by SLB and participant's chosen destination port.

Pre-Carriage/ On-carriage Truck Type

When quoting Full Truck Load (FTL) pre-carriage/on-carriage, Supplier should ensure that the quote covers the costs for heavy trucks that can carry up to 24 metric tons (or more in certain countries); FTL prices must include Chassis rental fee per container, where and when applicable. No extra costs shall be accepted. For cases where Supplier must utilize a DG certified truck, SLB allows for a 20% fixed surcharge of the FTL price. LTL maximum cost is CAPPED at the value of an FTL.

Currency Exchange Rate Mechanism

For the exceptional cases where SLB decides to pay the freight in a currency that is different than the one quoted in the RFP, Supplier shall observe the currency exchange rates published by OANDA at https://www.oanda.com/currency/live-exchange-rates/. Currency conversion shall be performed based on the Bill of lading issuance date and reflected in the appropriate Work Orders, Delivery orders etc. No spread % will be acceptable.

Handover fees

No handover fees or document transfer charges between exporting agent and importing agent will be accepted by SLB.

Surcharges

Definitions

Applicable Mandatory Surcharges included in All-in rates for OCEAN FREIGHT (restricted to these only, will remain fixed for the duration of the contract award)

AGS

Aden Gulf Surcharge the increasing activity from African pirates has led to the carriers on the Asia-Europe trades to impose this surcharge.

BAF

Bunker Adjustment Factor - surcharge added to compensate for fluctuations in fuel costs. No BAF adjustments are allowed during contract period.

IMO - MARPOL LSS

IMO 2020 Low Sulphur Surcharge - additional costs added by carriers to their rates starting with January 2020, in order to comply with new IMO pollution regulations by purchasing low sulphur fuel. LSS charges must be included in the "All-in" rate.

BL

Bill of Lading issuance costs, as applicable for house Bill of Lading or TELEX/express release; Not to be confused with OBL issuance and courier process, which can be charged as an accesorial cost upon confirmation from SLB logistics.

RSC

Seal Handling Charge, as applicable to seal the container prior to shipping

DHC

Depot Handling Charge, as charged by carrier

LoLo

Lift-on-Lift-Off (LoLo), as applicable for export containers offloaded to yard during gate-in awaiting vessel ATB.

CAF

Currency Adjustment Factor, applied in % and over freight component only

PLA

Port Loading Approvals, as charged in some international ports prior to loading cargo

THS/THC

Terminal handling charge as applicable per Weight and Measure

GRI

General Rate Increase quotes are fixed during the entire period of the contract, so any eventual GRIs should already be part of the all-in price

PCS

Panama Canal Surcharge applied to cargo transiting through the Panama Canal

SCS

Suez Canal Surcharge the charge associated with costs to transit through the Suez Canal

CGSD

Congestion Surcharges reflecting the additional expenses that the ship lines incur when calling at congested ports.

PRS

Piracy Risk Surcharge the charge assessed to compensate shipping companies for increased costs associated with avoiding piracy

ISPS

Charge to cover International Ship and Port Security code compliance costs.

ACE

Automated Commercial Environment the system used by U.S. exporters to electronically declare their international exports (same as AMS,ACS,AES)

ACI

Advance Commercial Information, Canada Border require that some key data elements to be transmitted electronically 24 hours before loading at the foreign port

PSS

Peak Season Surcharge the charge associated with incremental operational costs incurred during the peak season

WSC

Winter Surcharge the surcharge associated with extra transport cost of cargo during winter seasonal conditions

ISF

Importer Security Filling is composed of 10 data elements which are required to be sent to US Customs on all import shipments arriving via sea-freight into the United States. This information is in addition to and distinct from the AMS data elements that the Steamship lines are required to file with US Customs.

ETS

EU Emissions Trading System Surcharge applicable to shipments inbound / outbound EU countries subject to surcharge

Applicable Ad Hoc Optional Surcharges for OCEAN FREIGHT (restricted to these only)

Export Clearance

Export Clearance surcharges per BL. Number of HS codes per Export clearance is not restricted. For US outbound shipments, it refers to Automated Export System ("AES"). AES is the system used by U.S. exporters to electronically declare their international exports, known as Electronic Export Information (EEI)

Certificate of Origin

Fee to issue the COO (incl. by Chamber of Commerce). Courier charges are excluded.

Original Bill of Lading

Fee associated for the creation of three Original Bills of Lading and inclusive of courier costs associated with sending originals to final destination. The 3rd original is to be retained by agent. For the cases service is based on express release, supplier should consider that this filed equals "0", and do not account for this value for your quote as no OBL fee will be accepted.

IMO DG Surcharge

Surcharge per Container to cover for additional costs incurred due to shipping DG goods for SLB (excl. class 1 & 7). SLB has the right to make DG movements mandatory for some lanes and these will be marked accordingly. Supplier will have the right to indicate if DG goods can be moved on the lane but will not have the right to adjust the DG surcharge., except if above requirement is present.

Red Sea Emergency Surcharge

Surcharge introduced by carriers to offset higher operating costs due to divertion of vessels via Cape of Good Hope instead of traditional passage via Red Sea. Only applicable to trade lanes impacted by Red Sea Crisis

Waiver Certificate Fee

Waiver certificates (also known as ECTN – Electronic Cargo Tracking Note) are required by certain African countries to effectively control, supervise and manage import / export traffic to the country. Applicable when shipping to: Senegal, Guinea, Cote D'Ivoire, Burkina Faso, Togo, Benin, Mali, Niger, Nigeria, Cameroon, Central African Republic, Gabon, Congo, Democratic Republic of Congo, Angola, Tanzania, Madagascar

Waiver Certificate Fee per W/M

Waiver Certificate Fees only applicable to Break Bulk movements. Only applicable when shipping to: Angola and Ghana

Applicable Ad Hoc Optional Surcharges for Pre-Carriage & On-Carriage (restricted to these only)

Truck Detention Fee & Free Time

Supplier must quote the detention fee per hour and specify the number of free detention hours. Quoted must be submitted in the currency indicated for each lane. Minimum free number of detention hours is set at 4 hours.

Dangerous Goods Surcharge

SLB shall allow suppliers to charge a fixed surcharge of 30% from FTL/LTL price for movements of Dangerous Goods. This applies to all DG classes except 1 (Explosives) and 7 (Radioactive Materials)

Applicable Ad Hoc Optional Surcharges for OCEAN FREIGHT (restricted to these only)

Import Customs Clearance

Fee payable to compensate for preparation and filing of customs documentation needed in order to import goods into destination country. Should include all applicable fees that derive from using state-imposed systems for completing the process. Duties will be paid separately by SLB and should not be included in this fee.

Free Demurrage & Detention Time

Specifies number of free demurrage & detention days offered by Participant. Free days can be used interchangeably by SLB. This term refers to the allotted time frame during which cargo can be stored at the loading port without incurring extra charges for storage or demurrage

Demurrage & Detention

Charges incurred when break bulk cargo remains at the loading or unloading port beyond the pre-agreed free free demurrage time period

Destination THC

Destination Terminal handling charge as applicable per Weight and Measure

Delivery Order Fee

A fee charged for preparing a delivery order on behalf of a customer. A delivery order is defined as a document issued by a carrier, carrier’s agent, or breakbulk agent authorizing or ordering its terminal or another carrier or terminal operator to release cargo to a named party, or another agent or carrier on behalf of the named party. Delivery orders are typically issued only after the consignee named on the delivery order has surrendered a properly endorsed B/L (when required, and/or has been verified to be the correct party to receive the cargo, and has paid any charges due the carrier or carrier’s agent.) In the U.S., a delivery order document, when properly annotated, may also be used for Customs purposes as a carrier’s release order.

Dimensional Metric for business

Logic

Ocean volume ratio

1 CBM = 1,000 KG

Ocean freight ton

One freight ton is defined as either one cubic meter (CBM) of cargo volume or one metric ton (1,000 kilograms) of cargo weight, whichever is greater'

Inland pick up and delivery: Ocean

1 CBM = 333 KG

Road volume ratio

1 CBM = 333 KG

Road volume ratio

1 LDM = 1,500 KG

Metric ton (MT)

1 MT = 1,000 KG

Revenue ton (RT)

1 RT = 1 MT or 1 CBM

Pound (LBS)

1 LB = 0.454 KG 1 KG = 2.205 LBS

Inch (IN)

1 IN = 2.54 cm 1 cm = 0.3937 IN

Foot (FT)

1 FT = 0.3048 m

Short Ton (ST)

1 ST = 907.18 KG