TOTE Maritime Puerto Rico, LLC

FOR CONSIDERATION IN GRANTING CREDIT TO US DIRECTLY OR TO US THROUGH OUR DULY AUTHORIZED FREIGHT FORWARDER, CONSOLIDATOR OR OTHER AGENT BY THE ISSUANCE OR RELEASE OF BILLS OF LADING INDICATING THAT THE OCEAN FREIGHT, DEMURRAGE AND/OR OTHER CHARGES IS PAYABLE TO TOTE MARITIME PUERTO RICO, LLC AND/OR AFFILIATES AND AGENCIES AND OTHER PORT FACILITY OPERATED UNDER THE TARIFFS OF TOTE MARITIME PUERTO RICO, LLC OR AFFILIATED COMPANY, WE HEREBY UNDERTAKE AND AGREE AS FOLLOWS:

  1. WE UNDERSTAND AND WILL COMPLY WITH ORDERS OF THE STB OR ANY OTHER GOVERNMENT REGULATORY AGENCY MAKING IT OBLIGATORY UPON SHIPPERS, RECEIVERS AND CARRIERS, FOR PAYMENT OFCHARGES WITHIN THE PROPER STATUTORY PERIOD.
  1. WE WILL BE ABSOLUTELY, UNCONDITIONALLY RESPONSIBLE TO TOTE MARITIME PUERTO RICO, LLC OR AFFILIATE COMPANIES FOR PAYMENT OF ALL FREIGHT, DEMURRAGE AND OTHER CHARGES DUE REGARDLESS OF WHETHER OR NOT FUNDS FOR PAYMENT HAVE BEEN ADVANCED BY US TO OUR FORWARDER OR OTHER AGENT.
  1. ALL FREIGHT AND DEMURRAGE CHARGES SHALL BE DUE WITHIN THIRTY (30) DAYS FROM THE SAILING DATE FROM THE RESPECTIVE PORT OF LOADING/DISCHARGE OR AS SPECIFIED IN OUR TARIFF.
  1. NOTHING HEREIN CONTAINED SHALL LIMIT TOTE MARITIME PUERTO RICO, LLC FROM EXERCISING ABSOLUTE DISCRETION TO REFUSE TO EXTEND CREDIT OR ITS RIGHT, WHERE CREDIT HAS BEEN EXTENDED, TO COLLECT PAYMENT OF ALL FREIGHT, DEMURRAGE, AND OTHER CHARGES PRIOR TO VESSELS ARRIVAL OR DEPARTURE AT PORT.

THIS UNDERSTANDING SHALL CONTINUE IN EFFECT UNTIL TERMINATED BY WRITTEN NOTICE FROM THE SHIPPER/CONSIGNEE OR SHIPPER AS DEFINED IN THE BILL OF LADING TO THE OTHER. PROVIDED HOWEVER, THAT TERMINATION SHALL NOT RELINQUISH ANY EXISTING LIABILITIES HEREUNDER.

TERMS AND CONDITIONS

THE SHIPPER AND CONSIGNEE AND OWNER OF THE GOODS SHALL BE JOINTLY AND SEVERALLY LIABLE TO THE CARRIER FOR THE PAYMENT OF ALL FREIGHT, DEMURRAGE, AND OTHER CHARGES AND AMOUNTS DUE THE CARRIER.

THE CARRIER SHALL HAVE A LIEN ON THE GOODS, WHICH SHALL SURVIVE DELIVERY. FOR ALL FREIGHT, DEMURRAGE, AND OTHER CHARGES OR AMOUNTS DUE UNDER THIS BILL OF LADING,TOTE MARITIME PUERTO RICO, LLC,MAY ENFORCE THIS LIEN, BY ALL AVAILABLE MEANS, INCLUDING PUBLIC OR PRIVATE SALE AND WITHOUT NOTICE.

PAYMENT OF FREIGHT CHARGES

THE TERM PREPAID ON CARRIERS BILL OF LADING DOES NOT INDICATE THAT FREIGHT, DEMURRAGE, AND RELATED CHARGES HAVE ACTUALLY BEEN PAID BY SHIPPER. THEY INDICATE ONLY THAT CARRIER AGREES, IN THE FIRST INSTANCE, TO SEEK PAYMENT FROM SHIPPER. IF FOR ANY REASON SHIPPER FAILS TO PAY FREIGHT AND RELATED CHARGES PROMPTLY, CARRIER WILL ALSO LOOK TO CONSIGNEE FOR PAYMENT.

THE TERM COLLECT ON CARRIERS BILL OF LADING INDICATES ONLY THAT CARRIER AGREES, IN THE FIRST INSTANCE, TO SEEK PAYMENT OF FREIGHT AND RELATED CHARGES FROM CONSIGNEE. IF, FOR ANY REASON, CONSIGNEE FAILS TO PAY FREIGHT, DEMURRAGE, AND OTHER CHARGES PROMPTLY, CARRIER WILL ALSO LOOK TO SHIPPER FOR PAYMENT.

CARRIER WILL EXTEND CREDIT FOR A PERIOD NOT TO EXCEED THIRTY (30) DAYS FROM THE DATE OF THE FREIGHT BILL TO THE PARTY BILLED WHEN THE CARRIER IS SATISFIED BY EVIDENCE OF FINANCIAL RESPONSIBILITY FURNISHED AND OTHER CREDIT INFORMATION AVAILABLE THAT SUCH CREDIT SHOULD BE EXTENDED. CREDIT MAY BE SUSPENDED AT THE SOLE DISCRETION OF THE CARRIER, IN ANY CASE WHERE AS TO ANY SHIPPER OR CONSIGNEE:

  1. FREIGHT, DEMURRAGE AND OTHER CHARGES ARE UNPAID AND OUTSTANDING, THE CREDIT PERIOD APPLICABLE THERETO HAVING EXPIRED.
  1. THE CARRIER LACKS SATISFACTORY ASSURANCE THAT FREIGHT, DEMURRAGE, AND OTHER CHARGES ON FUTURE SHIPMENTS WILL BE PAID WITHIN THE CREDIT PERIOD.

CARRIER HAS THE RIGHT TO CONSIDER CARGO AS ABANDONED IF WITHIN 25 DAYS OF ARRIVAL AT PORT OF DISCHARGE THE OBLIGOR HAS NOT YET MADE ARRANGEMENTS TO REMIT TO THE CARRIER ALL FREIGHT CHARGES DUE.

ONCE CARGO IS ABANDONED, CARRIER CAN RETURN THE CARGO BACK TO THE ORIGINATING PORT AT A COST TO THE OBLIGOR OF $400. CARRIER CAN UNLOAD THE CARGO INTO A PUBLIC WAREHOUSE FACILITY WITH ALL EXPENSES FOR THE ACCOUNT OF THE OBLIGOR OR CAN SELL THE GOODS WITHOUT PUBLIC NOTICE TO THE OBLIGOR.

WHEN CREDIT PRIVILEGES ARE SUSPENDED, ALL FREIGHT CHARGES DUE UNDER THE CREDIT RULE MUST BE PAID IMMEDIATELY AND ON ALL SHIPMENTS MADE AFTER SUSPENSION OF CREDIT, FREIGHT, DEMURRAGE AND OTHER CHARGES MUST BE PAID IN FULL PRIOR TO OR AT THE TIME SHIPMENT IS TENDERED TO THE CARRIER. IN CASE OF A PREPAID SHIPMENT AND PRIOR TO DELIVERY TO CONSIGNEE IN THE CASE OF A COLLECT SHIPMENT, AS A CONDITION TO THE REESTABLISHMENT OF CREDIT ONCE SUSPENDED, THE CARRIER MAY REQUIRE SURETY BONDS WITH AS SURETY AND IN TERMS SATISFACTORY TO CARRIER, CONDITIONED UPON THE PAYMENT OF ALL FREIGHT, DEMURRAGE, AND OTHER CHARGES WITHIN THE CREDIT PERIOD APPLICABLE THERETO.

AR 15 TOTE Maritime – Terms and Conditions – Revised 11-03-15