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

[Michelle O'Daniels]

Acknowledged with thanks.

Looking forward to input from all regarding facts and implications/business
impact prior to the Board meeting.

Best regards,

Michelle ODaniels

On Friday, February 28, 2020, Paul Clancey <p.clancey at transmarine.com>
wrote:

> 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
> <p.clancey at transmarine.com>]
> *Sent:* Tuesday, February 25, 2020 10:07 PM
> *To:* Roy Gonzalez <Roy.Gonzalez at biehlco.com>; Mike Maloz <
> mmaloz at gmtnola.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
>
>
>
> 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
> <Roy.Gonzalez at biehlco.com>]
> *Sent:* Monday, February 24, 2020 10:02
> *To:* Mike Maloz <mmaloz at gmtnola.com>
> *Cc:* Paul Clancey <p.clancey at transmarine.com>; 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
>
>
>
> 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> 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>
> 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 <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>; LAMA BOARD <
> lama-board at listserve.louisianamaritime.org>
> *Cc:* Michelle O'Daniels <modlegal at gmail.com>; Gonzalez Roy <
> 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
> <ron.branch at louisianamaritime.org>]
> *Sent:* Saturday, February 22, 2020 9:48 AM
> *To:* LAMA BOARD <lama-board at listserve.louisianamaritime.org>
> *Cc:* Mike Maloz <mmaloz at gmtnola.com>; Gonzalez Roy <
> roy.gonzalez at biehlco.com>; Michelle O'Daniels <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)
>
>
>
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>
>
>
> *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* <Fredrik.Knutsen at tparkerhost.com>
>
>  *T. Parker Host        *
>
> 150 West Main Street, Suite 1600
> <https://www.google.com/maps/search/150+West+Main+Street,+Suite+1600+%0D%0A+Norfolk,+VA+23510+%0D%0A+Office:+757?entry=gmail&source=g>
>
> Norfolk, VA 23510
> <https://www.google.com/maps/search/150+West+Main+Street,+Suite+1600+%0D%0A+Norfolk,+VA+23510+%0D%0A+Office:+757?entry=gmail&source=g>
>
> Office: 757
> <https://www.google.com/maps/search/150+West+Main+Street,+Suite+1600+%0D%0A+Norfolk,+VA+23510+%0D%0A+Office:+757?entry=gmail&source=g>
> .627.6286
>
> Mobile: 281.928.0070
>
> *www.tparkerhost.com* <http://www.tparkerhost.com/>
>
>
>
>
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