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Rule # Description Effective Expiry

6

Payment of Freight

1-May-2006

 


When cargo is moving at a rate that is filed on an all-in basis in the tariff, payment of base ocean or Intermodal freight charges and/or surcharges under a single bill of lading or waybill, must all be on either a prepaid or collect basis, and no part of such all-in rate may be split between a prepaid portion and a collect basis.

All Outport Arbitraries listed in this tariff can be either prepaid or collect. When cargo is moving under a through rate filed from an outport, payment of the outport arbitrary cannot be split from the ocean freight.

Payment of base ocean or intermodal freight under a single Bill of Lading cannot be split between a prepaid portion and a collect portion. Similarly, payment of any accessorials and/or surcharges under a single Bill of Lading may not be split between a prepaid portion and a collect portion.

When cargo is moving under a Sea Waybill freight and charges must be paid in full prior to release of cargo at destination irrespective of whether the cargo is moving on a "prepaid" or "collect" basis. However, in cases where the cargo is moving on a "prepaid" basis, the location, method, and timing of exchange rate etc. to be used for payment, are governed by, and must be in accordance with, the respective "prepaid" freight rule from the origin country involved.

For the purposes of this rule, the term "Freight Monies" when used in this rule shall refer to commodity freight rates and all other charges and rates set forth in the commodity items or rules of this tariff, or tariffs governed by this tariff. However, the term "Freight Monies" shall exclude CY receiving charges and CFS receiving charges as set forth in this tariff, which shall be referred to as "Charges" or "Freight Charges".

Bills of Lading for Partial Collect and Prepaid Shipments

Carrier may, at its option, upon shippers written request, issue Bills of Lading with a portion of total freight and charges prepaid, and the balance of the freight and charges collect. Carrier provides this procedure as a service and shall be held harmless in any disputes that may arise between Shippers and Consignee, relative to the apportionment of freight and charges in accordance with Shipper's instructions. Any Bills of Lading which are apportioned between Shipper and Consignee, the portion prepaid shall be subject to all other provisions of this Rule. The release of the Bill of Lading by the Carrier under any credit provisions or after payment of the prepaid portion of freight and charges due does not obligate the Carrier to deliver the cargo to the consignee until the collect portion has been paid.

Notwithstanding any other provisions of this tariff, for payment of local surcharges on prepaid basis, the Carrier reserves the exclusive right to determine payment arrangements with any shipper or shippers, and this decision will be rendered in its sole discretion. If payment arrangements are offered, the Carrier also retains complete discretion as to the form and content of a duly executed Shipper's Payment Agreement which it may require. The Carrier is mindful that it is required by law to collect freight and all other charges in a timely manner, consistent with this tariff.



 

6.1 Prepaid & Collect Freight

Except as otherwise provided herein, freight charges must be prepaid according to the following.

Prepaid at   Prepaid Collect Destination Prepaid at
Prepaid Collect Destination
General Cargo Yes Yes Yes
Household Goods & Personal Effects Yes No No
Reefer Cargo Yes No No
All other Cargo Yes No No

Freight may be payable at destination at the option of the Carrier.



 

6.2 Prepaid Freight

When freight monies and charges are prepaid, such payment shall be made not later than the time of release of any original Ocean Bill of Lading by the Carrier to the shipper or his duly authorized licensed freight forwarder or agent acting in his behalf.

Release of Original Bills of Lading on Credit

Carrier may extend credit to a shipper designated on the Bill of Lading for freight monies or charges to be paid at origin.

Ocean Carrier reserves the right to suspend the privilege of credit for any delinquent account, thereby placing such account on a cash basis.

Period of Credit for Government and Relief Agencies

The period of credit, which may be extended pursuant to this rule shall not restrict regular procedures of payment on shipments made by any government or agency thereof on which such government or agency is the shipper or consignee, nor for shipments made by voluntary relief agencies.

Shipper's Credit Agreement

Carrier may require a duly executed Shipper's Credit Agreement to extend the credit provisions of this tariff rule. It is the responsibility of Carrier to take prompt measures to collect freight moneys and/or charges unpaid after the period specified in this Rule.

Carrier's Due Bills and Shipper's Responsibility for Payment

Carrier who release prepaid bills of lading to a shipper or his authorized representative may require the shipper or his authorized representative to acknowledge the receipt of the bill of lading in writing by the execution of a carrier's due bill. In all cases the shipper shall be responsible for payment when a bill of lading is released to the shipper's freight forwarder or agent acting on his behalf.

Bills of Lading for Partial Prepaid and Collect Shipments

Carrier may, at its option, issue Bills of Lading with a portion of total freight and charges prepaid, and the balance of the freight and charges collect. Carrier provides this procedure as a service and shall be held harmless in any disputes that may arise between Shippers and Consignee, relative to the apportionment of freight and charges in accordance with Shipper's instructions. Any Bills of Lading which are apportioned between Shipper and Consignee, the portion prepaid shall be subject to the provisions of Rule 6.2, and the collect portion subject to the provisions of Rule 6.3. The release of the Bill of Lading by the carrier under its credit provisions or after payment of the prepaid portion of freight and charges due does not obligate the carrier to deliver the cargo to the consignee until the collect portion has been paid or credit granted under appropriate tariff provisions.

Applicable to AET only:

Seven (7) calendar days before the date on which the ocean vessel is advertised and scheduled to sail from the port of loading concerned.



6.2.1 Prepaid at Destination

When prepaid at destination is allowed, payment of freight moneys and charges must be made in full for the complete original Bill of Lading quantity prior to the release of any original ocean Bill of Lading by the Carrier to the shipper or his duly authorized licensed freight forwarder or his agent. Carriers may not extend credit on "Prepaid at Destination" Bill(s) of Lading. The carrier shall NOT accept freight as Prepaid At Destination to India, Pakistan, Bangladesh, Sri Lanka, Bahrain, Kuwait, Saudi Arabia, United Arab Emirates, the Commonwealth of Independent States, Myanmar (Burma), and Panama. 
 

6.2.2 Prepaid in a Third Country

Prepaid in a Third Country: Prepayment of freight moneys and charges be made in any country where the currency is readily convertible pursuant to the conditions in the tariff. The payment must be made in full for the complete original Bill of Lading quantity prior to the release of any original ocean Bill of Lading by the Carrier to the Shipper or his duly authorized licensed freight forwarder or his agent. Carrier will not extend credit on "Prepaid in a Third Country" Bill(s) of Lading.



6.3 Collect Freight

All freight and charges which are billed on a freight collect basis must be paid in full for the complete originally issued bill of lading quantity prior to release of cargo and any portion thereof.

The Carrier shall NOT accept freight collect shipments to India, Pakistan, Bangladesh, Sri Lanka, Bahrain, Kuwait, Saudi Arabia, United Arab Emirates, the Commonwealth of Independent States, Myanmar (Burma) and Panama.

EXCEPTION: Cargo consigned to Government Agencies may be released prior to freight prepayment.

At Carrier's option, collect freight and charges may be collected in any country where carrier maintains an operation, subject to above freight collection conditions.

At Carrier's option, Carrier may accept consignee's written request certifying the remittance arrangement to the Carrier's bank account for delivery order issuance and release of cargo with such certification.

6.4 Payment of Destination Charges


Except as otherwise provided, all charges at destination, except detention charges, must be collected prior to the release of the cargo. These charges include Destination Terminal, Demurrage and Diversion Charges.

Carrier reserves the exclusive right to determine payment arrangements with any shipper or shippers, and this decision will be rendered in its sole discretion. If payment arrangements are offered, the Carrier also retains complete discretion as to the form and content of a duly executed Shipper's Payment Agreement which it may require. The Carrier is mindful that it is required by law to collect freight and all other charges in a timely manner, consistent with this tariff. 

Applicable to AET only:

Seven (7) calendar days prior to the date on which the ocean vessel is advertised and scheduled to arrive at the port of discharge concerned

 

6.5 Methods of Payment

Payments for freight or charges due the carrier must be payable in legal tender or, at carrier's option, by check, bank draft or promissory note acceptable by carrier's bank for immediate credit without charges.

Electronic payment (e-payment) is also acceptable at carrier’s option.
 

6.6 Currency Conversion (Rates of Exchange)

Carriers may accept payment of tariff rates and charges in U.S. Dollars or other freely convertible currency acceptable to the Carrier which has been agreed with the Carrier in advance. Otherwise payment will be in the common currency of the payer's country.

Contingency Clause: Rates and charges are quoted in U.S. Currency and have been determined with due consideration to the relationship of U.S. Currency to other currencies involved. In the event of any material change in this relationship, carriers reserve the right to adjust the rates and charges required to remove the adverse effect.


(The following is applicable to TAG)

In case payment is effected in other than the Tariff Currency, conversion shall be calculated on the basis of the London Financial Times Closing Average as published on each Tuesday, or in the case of non-publication, for whatever reason, as published on the next available working day.

Rates of exchange as so determined apply with respect to Carriers trans-Atlantic vessels commencing their first port of loading during the week commencing the second (2nd) Sunday thereafter (Subject to the provisions of Rule 3 herein),e.g. the rate of exchange determined in week one (1) applies to trans-Atlantic vessels commencing the first port of loading in week three (3).

     
     
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