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Rule 06 - Payment of Freight
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Rule # Description Effective Expiry

6

Payment of Freight

1-May-2006

31-Oct-2016

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

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


Prepaid Collect Prepaid at Destination
Reefer Cargo Yes No Yes

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

<Effective till Mar 9th 2013>

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.

<Effective from Mar 10th 2013>

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, 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, Bahrain, Kuwait, Saudi Arabia, Iran. Algeria, the Commonwealth of Independent States and Myanmar (Burma) .

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)

Carrier may accept payment in US Dollars or the local currency of OOCL’s payment collection office. Meanwhile, with advanced agreement with carrier, payment may also be accepted in other freely convertible currencies.Payment of any freight and charge for Iran import and export shipment must be in non-US Dollar currency.

Unless otherwise required by local regulatory authorities, the Rate of exchanges (ROE) between US Dollar and other currencies should be based on the daily OOCL.COM ROE table summarized from the highest (numerical) telegraphic transfer selling rate of exchanges in reputable local sources .

For prepaid freight and charges, ROE on 10 calendar days prior to the vessel’s scheduled departure date at port of loading would be adopted.

For collect freight and charges, ROE on 10 calendar days prior to the vessel's scheduled arrival date at port of discharge would be adopted.


(Exceptions:

For shipment from Mexico,Canada, Panama or Colombia, rate of exchange will be based on 10 calendar days prior to the vessel's scheduled departure date of the first load port in this country group for prepaid freight and charges. And its collect freight and charges would follow general rule.


For shipment to Mexico, Canada, Panama or Colombia, rate of exchange will be based on 10 calendar days prior to the vessel’s scheduled arrival date of the first discharge port in this country group for collect freight and charges. And its prepaid freight and charges would follow general rule or other applicable exception rule.

For shipments from Taiwan, Australia or New Zealand, rate of exchange will be based on 10 calendar days prior to the vessel's scheduled departure date of the first load port in respective country/area for prepaid freight and charges. And its collect freight and charges would follow general rule or other applicable exception rule.


For shipments to Taiwan, Australia or New Zealand, rate of exchange will be based on 10 calendar days prior to the vessel’s scheduled arrival date of the first discharge port in respective country/area for collect freight and charges. And its prepaid freight and charges would follow general rule or other applicable exception rule.)
 

For shipments from Thailand, rate of exchange will be base on 4 calendar days prior to the vessel's scheduled arrival date at loading port in Thailand. And its collect freight and charges would follow general rule or other applicable exception rule.

For shipments to Thailand, rate of exchange will be base on 4 calendar days prior to the vessel's scheduled arrival date at  discharge port in Thailand. And its prepaid freight and charges would follow general rule or other applicable exception rule.

 <Effective from 24 OCT 2014>


For shipments from Pakistan, rate of exchange will be based on 3 calendar days prior to the vessel's scheduled arrival date at first loading port in Pakistan for prepaid freight and charges at origin.

For shipments to Pakistan, rate of exchange will be based on 3 calendar days prior to the vessel's scheduled arrival date at the last discharge port in Pakistan for collect freight and charges at destination.

<Effective from 30 NOV 2015>


For shipments from Latvia, rate of exchange will be based on the vessel's departure date at first loading port in Latvia for prepaid freight and charges at origin.

For shipments to Latvia, rate of exchange will be based on the vessel's arrival date at the last discharge port in Latvia for collect freight and charges at destination.


<Effective from 15 FEB 2016>

For shipments from Tunisia, rate of exchange will be based on one working day prior to the vessel's arrival date at first loading port in Tunisia for prepaid freight and charges at origin.

For shipments to Tunisia, rate of exchange will be based on one working day prior to the vessel's arrival date at the last discharge port in Tunisia for collect freight and charges at destination.

Once invoiced, subsequent updates on vessels' departure date/arrival date will not be catered for this shipment’s invoice reissuance

 
Local Source List: 

Area / Country

Local Source

Europe excl. Russia & Estonia, Latvia, Lithuania, United Kingdom Europe Central Bank 
Russia  Russian Central Bank 
Estonia  Bank of Estonia
Latvia  Europe Central Bank
Lithuania  National Bank of Lithuania
United Kingdom  Bank of England
Japan Bank of Tokyo Mitsubishi
People’s Republic of China Bank of China
Hong Kong HSBC
South Korea Bank of Korea
Taiwan Bank of Taiwan
Philippines Central Bank of the Philippines
Vietnam Vietcombank (VCB)
Cambodia Phnom Penh Post
Sri Lanka Central Bank
Malaysia Malayan Banking Berhad
Myanmar Central Bank of Myanmar
Singapore Singapore Straits Time
Indonesia Central Bank of Indonesia
India HSBC 
Pakistan HSBC 
Bangladesh HSBC 
Thailand HSBC
Australia and New Zealand Oanda.com
All other countries Reuters

<The Following end till 31 Jan 2013>
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 - effective on 9 Nov 2010, end till 31 Jan 2013)

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.

For shippers with credit arrangement with the Carrier, payment of credit freight and charges must be paid in the currency set forth in the BL for each shipment. Credit payment in currency other than that has been pre-determined in the BL is prohibited.

In case payment is effected in other than the Tariff Currency, conversion shall be calculated on the following basis:

i) North America

Eastbound
Payment of freight and charges in USA, Canada and Mexico:
Payable in US Dollars based on the highest (numerical) telegraphic transfer selling rate of exchange for US Dollars as quoted in the Wall Street Journal 10 working days prior to the actual departure date of the trunk vessel in North America.

Westbound
Payment of freight and charges in USA, Canada and Mexico:
Payable in US Dollars based on the highest (numerical) telegraphic transfer selling rate of exchange for US Dollars as quoted in the Wall Street Journal on the actual departure date of the trunk vessel from the first loading port in Europe; in the case of non-publication for whatever reason on that day, the rates of exchange published the next working day shall be used.

ii) Europe

Westbound
Payment of freight and charges in Europe:
Payable in local currency based on the daily spot rates published by the European Central Bank 10 working days prior to the scheduled departure date of the trunk vessel from load port in Europe.

The following exceptions apply to the above:

a)

Russia: Payable in local currency based on the daily spot rates published by the Russian Central Bank 7 working days prior to the scheduled departure date of the vessel from load port in Russia.

b)

Estonia: Payable in local currency based on the daily spot rates published by the Bank of Estonia on date of invoice.

c)

Latvia: Payable in local currency based on the daily spot rates published by the Central Bank of Latvia on date of actual departure from load port in Latvia.

d)

Lithuania: Payable in local currency based on the daily spot rates published by the National Bank of Lithuania 5 working days prior to scheduled vessel departure from load port in Lithuania.

Where a currency is not provided by one of the sources cited above, the exchange rate site Oanda.com shall be used instead. <effective on 20 Dec 2010 ,end till 31 Jan 2013>

Eastbound
Payment of freight and charges in Europe:
Payable in local currency based on the daily spot rates published by the European Central Bank 10 working days prior to the scheduled arrival date of the trunk vessel at discharge port in Europe.

The following exceptions apply to the above:

a)

Russia: Payable in local currency based on the daily spot rates published by the Russian Central Bank 5 working days prior to the scheduled vessel arrival at discharge port in Russia.

b)

Estonia: Payable in local currency based on the daily spot rates published by the Bank of Estonia on date of invoice.

c)

Latvia: Payable in local currency based on the daily spot rates published by the Central Bank of Latvia on actual arrival date at discharge port in Latvia.

d)

Lithuania: Payable in local currency based on the daily spot rates published by the National Bank of Lithuania 5 working days before scheduled arrival date at discharge port in Lithuania.












Where a currency is not provided by one of the sources cited above, the exchange rate site Oanda.com shall be used instead. <effective on 20 Dec 2010,end till 31 Jan 2013>