[Lama-board] UBT Davant - 2020 Terminal Rules & Regulations

Fri Feb 28 11:27:34 CST 2020

Good morning All,

I thing we need to have a meeting asap to discuss how we plan to fight this. Also, think about appointing a committee
to handle it going forward, this way we can add any other members that this directly impacts.

One member that I have had discussions with is Robert Toups with Gensteam. Given Gensteam’s close relationship with Koch who is a big
customer of UBT’s his input into this will be invaluable. He did mention that Koch is not onboard with the new Tariff at all.

I think, as discussed, we need to look into getting other associations involved in this including ASBA and IFFCBNO. Also maybe reach out to the
Board of Trade and see where they and their membership stands on this.

Also, and Im sure that this is already being done, but we need to be talking with our Owner’s/Charterers/Suppliers and encouraging them to fight
this as well.

We have about 30 days until this Tariff goes into effect.

Regards,
Paul Clancey
Transmarine Navigation
504/529-4646 (O) 24 hrs
504/529-3466  (F)
504/416-2866  (M)

From: Mike Maloz [mailto:mmaloz at gmtnola.com]
Sent: Wednesday, February 26, 2020 06:27
To: Paul Clancey <p.clancey at transmarine.com>; Roy Gonzalez <Roy.Gonzalez at biehlco.com>
Cc: Ronald Branch <ron.branch at louisianamaritime.org>; LAMA BOARD <lama-board at listserve.louisianamaritime.org>; Michelle O'Daniels <modlegal at gmail.com>
Subject: RE: UBT Davant - 2020 Terminal Rules & Regulations

Paul –

This has no fallen on deaf ears. I know all are interested in seeing what … if anything can be done.

I also know that Michelle has done some preliminary research, but more will be needed to know what laws/acts might be applicable. Additionally I know she is looking into what …. If any …… governmental agencies might be appropriate to seek further resolution such as the Federal Maritime Commission etc.

Surely we/LaMA will need to meet or conference to discuss further at some point in the near future.

Regards to all
Mike

From: Paul Clancey [mailto:p.clancey at transmarine.com]
Sent: Tuesday, February 25, 2020 10:07 PM
To: Roy Gonzalez <Roy.Gonzalez at biehlco.com<mailto:Roy.Gonzalez at biehlco.com>>; Mike Maloz <mmaloz at gmtnola.com<mailto:mmaloz at gmtnola.com>>
Cc: Ronald Branch <ron.branch at louisianamaritime.org<mailto:ron.branch at louisianamaritime.org>>; LAMA BOARD <lama-board at listserve.louisianamaritime.org<mailto:lama-board at listserve.louisianamaritime.org>>; Michelle O'Daniels <modlegal at gmail.com<mailto:modlegal at gmail.com>>
Subject: RE: UBT Davant - 2020 Terminal Rules & Regulations

Gents,

Got this feedback. Maybe something for Michelle to look into.

“The seems to be an example of tying, an anticompetitive practice made illegal by the Sherman Antitrust Act and the Clayton Act. “

Also, Host was frozen out by KinderMorgan a while back and that was resolved. Wonder what legal argument, if any, Host used
in getting that reversed?

Regards,
Paul Clancey
Transmarine Navigation
504/529-4646 (O) 24 hrs
504/529-3466  (F)
504/416-2866  (M)

From: Roy Gonzalez [mailto:Roy.Gonzalez at biehlco.com]
Sent: Monday, February 24, 2020 10:02
To: Mike Maloz <mmaloz at gmtnola.com<mailto:mmaloz at gmtnola.com>>
Cc: Paul Clancey <p.clancey at transmarine.com<mailto:p.clancey at transmarine.com>>; Ronald Branch <ron.branch at louisianamaritime.org<mailto:ron.branch at louisianamaritime.org>>; LAMA BOARD <lama-board at listserve.louisianamaritime.org<mailto:lama-board at listserve.louisianamaritime.org>>; Michelle O'Daniels <modlegal at gmail.com<mailto:modlegal at gmail.com>>
Subject: Re: UBT Davant - 2020 Terminal Rules & Regulations

Gents,

Fully agree with your comments.

ASBA is definitely a great organization whose support would be welcomed. We also should try to enlist/work with the freight forwarders who have strong associations both locally and nationally. Ship owners, operators  and charterers should also be very concerned since essentially UBT/Host will be in control of all vessel loading/discharge operations and decisions made, etc.

Best regards,
Roy

Sent from my iPhone

On Feb 24, 2020, at 9:36 AM, Mike Maloz <mmaloz at gmtnola.com<mailto:mmaloz at gmtnola.com>> wrote:
 .... and a quick analysis of their new dockage rates would indicate an additional $60k to each vessel. Plus 15% during “high water”.... They can certainly “absorb” an agency fee AND FREIGHT FORWARDING FEE ....
Sent from my iPhone

On Feb 24, 2020, at 9:24 AM, Paul Clancey <p.clancey at transmarine.com<mailto:p.clancey at transmarine.com>> wrote:

Gents,

So as I’m reading this, they will have Host Agencies as their exclusive Terminal Agents and owners can incur
the additional cost, should they desire, to appoint a protective agency.

This is what happens when you have a company that owns Terminals and Agencies. In my opinion, it is
a very bad precedent to allow to be set.

As a thought, maybe we can reach to ASBA and see what their thoughts are on this.

Either way I think we need to explore if there is any way to fight this.

Regards,
Paul Clancey
Transmarine Navigation
504/529-4646 (O) 24 hrs
504/529-3466  (F)
504/416-2866  (M)

From: Lama-board [mailto:lama-board-bounces at listserve.louisianamaritime.org] On Behalf Of Mike Maloz
Sent: Saturday, February 22, 2020 12:07
To: Ronald Branch <ron.branch at louisianamaritime.org<mailto:ron.branch at louisianamaritime.org>>; LAMA BOARD <lama-board at listserve.louisianamaritime.org<mailto:lama-board at listserve.louisianamaritime.org>>
Cc: Michelle O'Daniels <modlegal at gmail.com<mailto:modlegal at gmail.com>>; Gonzalez Roy <roy.gonzalez at biehlco.com<mailto:roy.gonzalez at biehlco.com>>
Subject: Re: [Lama-board] UBT Davant - 2020 Terminal Rules & Regulations

Not necessarily fees … VESSEL AGENCY / VESSEL AGENTS … see page 17 and below highlighted.

From: Ronald Branch [mailto:ron.branch at louisianamaritime.org]
Sent: Saturday, February 22, 2020 9:48 AM
To: LAMA BOARD <lama-board at listserve.louisianamaritime.org<mailto:lama-board at listserve.louisianamaritime.org>>
Cc: Mike Maloz <mmaloz at gmtnola.com<mailto:mmaloz at gmtnola.com>>; Gonzalez Roy <roy.gonzalez at biehlco.com<mailto:roy.gonzalez at biehlco.com>>; Michelle O'Daniels <modlegal at gmail.com<mailto:modlegal at gmail.com>>
Subject: Fwd: UBT Davant - 2020 Terminal Rules & Regulations

LAMA Board
LAMA Advisory Committee
LAMA Counsel,

See below and attached for changes.  Page 17 of the attachment discusses fees.
LAMA is reviewing.
CAPT Ron
Ronald W. Branch
President
Louisiana Maritime Association (LaMA)

This E-Mail transmission (and/or the documents accompanying it) may contain information belonging to the sender that is confidential, privileged and/or exempt from disclosure under applicable law.  The information is intended only for the use of the individual(s) or entity named above.  If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or action taken in reliance on the contents of this information is strictly prohibited.  If you have received this E-Mail transmission in error, please immediately notify us by return E-Mail or telephone to arrange for the return of its contents (including any documents).

From: Fredrik Knutsen

Please find attached the updated Rules and Regulations for conducting business at UBT.

 There are some changes and clarifications in our policies and fee structure.

 As volatility becomes the new normal, we needed to update our rules and regulations to be able to stay competitive in to both 12 million-ton years and 3 million-ton years. These changes were not taken lightly.

  1.  Clear Notice of Readiness Acceptance requirements

 Vessels must be at the nearest available location, have passed a hold inspection, obtained US Customs and Border Protection clearance, and have cargo available onsite at UBT in order to load.  This has been our policy for some time; however, many of our customers, their customers, shipbrokers, ship owners and agents had their own interpretations. In some cases, these interpretations excluded terms from charter parties that caused an increase in demurrage exposure. In short, the Mississippi River, the vessel’s load readiness, pilots and weather conditions are outside of our control

  1.  High River surcharges

Last year, during a historic high river event, UBT incurred over $10 million in additional expenses.  We didn’t require vessel or barge owners to hire additional tugboats, we never closed the fleet, we never sought additional damages or claimed force majeure. That makes us one of the few terminals on the river

  1.  Barge Fleeting charges

We have tried to simplify the rate structure.  The most significant change is that we need empty barges to be picked up within 3 days of being unloaded or be compensated for the additional work required from our team to manage around empty barges. Our core goal remains offloading barges and loading ships as quickly as possible.

  1.  Vessel Fees

We have adopted a streamlined approach to the user fees paid by the vessel. This approach better aligns our interests with those of our customers. Instead of charging per day and per crew boat, on top of ship agency, towage, security charges, bunkering fees, freight forwarding, trimming, layberth fee, attendance fee, line handling and environmental fees, it is now consolidated into one lump sum. Instead of the need to budget for variable fees, costs are now clearly defined.

UBT’s location at mile 55 coupled with absorbing much of the risk that would normally fall to the shipper or ship operator still makes us one of the most competitive terminals on the river.

Under the previous structure, the type of ship or contract with shipper could find UBT incentivized to pay demurrage and collect dockage fees, hire additional tugs, and penalize ship owners and their agents for clerical mistakes. In short, there was no alignment of interests.

This change removes those variables.   UBT is taking on additional risk to provide alignment such that the shipper, customer, and terminal are all incentivized to turn the vessel as quickly as possible.

  1.  Vessel Agency

It is an administrative advantage for the vessel, terminal, shipper and receivers to have direct contact with the vessel’s operators to ensure: NOR requirements are met, prompt berthing and sailing, and agreement on all times in the Statement of Facts by the vessel and UBT, BEFORE the ship departs.  Further, it eliminates different agency fee structures.

In addition, it allows UBT to absorb risk that is otherwise subject to the vessel agent’s performance.  Of course, our users can continue to appoint protective agents, freight forwarders, husbandry agents or any other vendors as they desire.

We look at this as a tremendous administrative advantage for all parties concerned.  Part of our decision matrix was to absorb this cost as an included service versus passing it along to our customers or ship operators.

  1.  Industry Standard

The fee structure is common to many privately-operated terminals along the river system and the rates are in line with what those terminals charge. Further, many private terminals have preferred or exclusive Agent relationships, UBT is moving in that direction toward industry standard practice. To be clear, users can continue to appoint service providers as they see fit and as they do at other terminals. The main difference between our rate structure and other private terminals is our rates are now all inclusive.

In closing, we want to ensure alignment between our terminal, our customers, and our users. As such, we believe this is the best way to provide great service through many market cycles to come.

Kind regards,

Fredrik Knutsen

Fredrik.Knutsen at tparkerhost.com<mailto:Fredrik.Knutsen at tparkerhost.com>

 T. Parker Host

150 West Main Street, Suite 1600

Norfolk, VA 23510

Office: 757.627.6286

Mobile: 281.928.0070

www.tparkerhost.com<http://www.tparkerhost.com/>

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