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Gents,
<div><br>
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<div>Fully agree with your comments. </div>
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<div>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. </div>
<div><br>
</div>
<div>Best regards,</div>
<div>Roy</div>
<div><br>
<br>
<div dir="ltr">Sent from my iPhone</div>
<div dir="ltr"><br>
<blockquote type="cite">On Feb 24, 2020, at 9:36 AM, Mike Maloz <mmaloz@gmtnola.com> wrote:<br>
<br>
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<blockquote type="cite">
<div dir="ltr"> .... 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 ....<br>
<br>
<div dir="ltr">Sent from my iPhone</div>
<div dir="ltr"><br>
<blockquote type="cite">On Feb 24, 2020, at 9:24 AM, Paul Clancey <p.clancey@transmarine.com> wrote:<br>
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<div class="WordSection1">
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Gents,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">So as I’m reading this, they will have Host Agencies as their exclusive Terminal Agents and owners can incur<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">the additional cost, should they desire, to appoint a protective agency.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">This is what happens when you have a company that owns Terminals and Agencies. In my opinion, it is<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">a very bad precedent to allow to be set.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">As a thought, maybe we can reach to ASBA and see what their thoughts are on this.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Either way I think we need to explore if there is any way to fight this.<o:p></o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:#1F497D">Regards,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:#1F497D">Paul Clancey<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:#1F497D">Transmarine Navigation<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:#1F497D">504/529-4646 (O) 24 hrs<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:#1F497D">504/529-3466 (F)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:#1F497D">504/416-2866 (M)<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
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<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> Lama-board [mailto:lama-board-bounces@listserve.louisianamaritime.org]
<b>On Behalf Of </b>Mike Maloz<br>
<b>Sent:</b> Saturday, February 22, 2020 12:07<br>
<b>To:</b> Ronald Branch <ron.branch@louisianamaritime.org>; LAMA BOARD <lama-board@listserve.louisianamaritime.org><br>
<b>Cc:</b> Michelle O'Daniels <modlegal@gmail.com>; Gonzalez Roy <roy.gonzalez@biehlco.com><br>
<b>Subject:</b> Re: [Lama-board] UBT Davant - 2020 Terminal Rules & Regulations<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Not necessarily fees … VESSEL AGENCY / VESSEL AGENTS … see page 17 and below highlighted.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> Ronald Branch [<a href="mailto:ron.branch@louisianamaritime.org">mailto:ron.branch@louisianamaritime.org</a>]
<br>
<b>Sent:</b> Saturday, February 22, 2020 9:48 AM<br>
<b>To:</b> LAMA BOARD <<a href="mailto:lama-board@listserve.louisianamaritime.org">lama-board@listserve.louisianamaritime.org</a>><br>
<b>Cc:</b> Mike Maloz <<a href="mailto:mmaloz@gmtnola.com">mmaloz@gmtnola.com</a>>; Gonzalez Roy <<a href="mailto:roy.gonzalez@biehlco.com">roy.gonzalez@biehlco.com</a>>; Michelle O'Daniels <<a href="mailto:modlegal@gmail.com">modlegal@gmail.com</a>><br>
<b>Subject:</b> Fwd: UBT Davant - 2020 Terminal Rules & Regulations<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<p class="MsoNormal">LAMA Board <o:p></o:p></p>
<div>
<p class="MsoNormal">LAMA Advisory Committee <o:p></o:p></p>
</div>
<div>
<p class="MsoNormal">LAMA Counsel,<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<p class="MsoNormal">See below and attached for changes. Page 17 of the attachment discusses fees.
<o:p></o:p></p>
<div>
<p class="MsoNormal" style="margin-bottom:12.0pt">LAMA is reviewing. <o:p></o:p></p>
<div>
<div>
<p class="MsoNormal">CAPT Ron<o:p></o:p></p>
</div>
<p class="MsoNormal">Ronald W. Branch <o:p></o:p></p>
<div>
<p class="MsoNormal">President<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal">Louisiana Maritime Association (LaMA)<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<div>
<div>
<p class="MsoNormal">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).<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:21.0pt;font-family:UICTFontTextStyleBody"><o:p> </o:p></span></p>
</div>
</div>
</div>
</div>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
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<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
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<div>
<p class="xmsonormal"><b>From:</b> Fredrik Knutsen<o:p></o:p></p>
</div>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
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<div>
<p class="xxmsonormal">Please find attached the updated Rules and Regulations for conducting business at UBT.<o:p></o:p></p>
<p class="xxmsonormal"> There are some changes and clarifications in our policies and fee structure. <o:p></o:p></p>
<p class="xxmsonormal"> 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.<o:p></o:p></p>
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Clear Notice of Readiness Acceptance requirements<o:p></o:p></li></ol>
<p class="xxmsonormal"> 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 interpretatio<a name="x_x__Hlk32482255">ns. In some cases, these interpretations excluded terms from charter parties that caused an increase in demurrage exposure.</a>
In short, the Mississippi River, the vessel’s load readiness, pilots and weather conditions are outside of our control <o:p></o:p></p>
<ol start="2" type="A">
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High River surcharges<o:p></o:p></li></ol>
<p class="xxmsonormal" style="margin-left:40.5pt">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<o:p></o:p></p>
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Barge Fleeting charges<o:p></o:p></li></ol>
<p class="xxmsonormal" style="margin-left:40.5pt">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.<o:p></o:p></p>
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Vessel Fees<o:p></o:p></li></ol>
<p class="xxmsonormal" style="margin-left:40.5pt">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. <o:p></o:p></p>
<p class="xxmsonormal" style="margin-left:40.5pt">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.<o:p></o:p></p>
<p class="xxmsonormal" style="margin-left:40.5pt">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. <o:p></o:p></p>
<p class="xxmsonormal" style="margin-left:40.5pt">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. <o:p></o:p></p>
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<span style="background:yellow;mso-highlight:yellow">Vessel Agency<o:p></o:p></span></li></ol>
<p class="xxmsonormal" style="margin-left:40.5pt"><span style="background:yellow;mso-highlight:yellow">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.<o:p></o:p></span></p>
<p class="xxmsonormal" style="margin-left:40.5pt"><span style="background:yellow;mso-highlight:yellow">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.<o:p></o:p></span></p>
<p class="xxmsonormal" style="margin-left:40.5pt"><span style="background:yellow;mso-highlight:yellow">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.</span><o:p></o:p></p>
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Industry Standard<o:p></o:p></li></ol>
<p class="xxmsonormal" style="margin-left:40.5pt">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.<o:p></o:p></p>
<p class="xxmsonormal">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.<o:p></o:p></p>
<p class="xmsonormal"><span lang="NO-BOK">Kind regards,</span><o:p></o:p></p>
<p class="xmsonormal"><b><span lang="NO-BOK" style="font-size:16.0pt;font-family:"Georgia",serif;color:#003087">Fredrik Knutsen</span></b><o:p></o:p></p>
<p class="xmsonormal"><a href="mailto:Fredrik.Knutsen@tparkerhost.com"><b><span lang="NO-BOK" style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Fredrik.Knutsen@tparkerhost.com</span></b></a><o:p></o:p></p>
<p class="xmsonormal"><span lang="NO-BOK" style="color:#003087"> </span><b><span style="font-family:"Georgia",serif;color:#003087">T. Parker Host
</span></b><span style="font-size:9.0pt;font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">150 West Main Street, Suite 1600</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Norfolk, VA 23510</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Office: 757.627.6286</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Mobile: 281.928.0070</span><o:p></o:p></p>
<p class="xmsonormal"><a href="http://www.tparkerhost.com/"><b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">www.tparkerhost.com</span></b></a><o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
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