ATS INTERMODAL, LLC

 

MOTOR CARRIER/SHIPPER AGREEMENT

 

THIS MOTOR CARRIER/SHIPPER AGREEMENT (this "Agreement"), is made and entered into as of the date and time the "Rate Confirmation" is properly executed and received by ATS Intermodal, LLC.  The "Rate Confirmation" is a portion of and included within this written agreement.  The customer listed within the Rate Confirmation is referred further as ("Shipper"), and ATS Intermodal, LLC, a South Carolina corporation ("Carrier").  Shipper and Carrier are sometimes individually referred to herein as a "Party" and together as the "Parties."

 

WHEREAS, Shipper desires to hire Carrier to perform motor carrier transportation service for Shipper in accordance with the terms and subject to the conditions of this Agreement; and

 

WHEREAS, Carrier desires to perform motor carrier transportation service for Shipper in accordance with the terms and subject to the conditions of this Agreement;

 

NOW, THEREFORE, for and in consideration of the foregoing premises and the mutual agreements and provisions hereinafter set forth, the Parties hereby mutually agree as follows:

 

1.     Term.  This Agreement shall remain in full force and effect for a one (1) year period                                                                                        

        beginning on the date first written above and continuing thereafter on a year-to year basis. 

        Either Party may terminate this Agreement at any time, with or without cause, upon thirty

        (30) days' written notice to the other party, unless otherwise specified in this Agreement.

 

2.     Scope of Agreement.  Carrier  is  a  motor  carrier  under  49  U.S.C.  13102(12), is  duly

        registered with the Department of Transportation pursuant to 49 U.S.C. 13902 and 13905

        and will provide lawful and responsible transportation service to Shipper  under  contract.

        Shipper  will  tender  Carrier  freight for  transportation.   The  scope  of  the  service

        contemplated  by  the  Parties  is  set forth in Appendix A.  Carrier shall be an independent

        contractor of Shipper.  As between the Parties, Carrier shall have the sole and exclusive

        responsibility for the costs and over the manner in which its employees and/or

        independent contractors perform the transportation service, including the equipment

        provided.

 

3.     Rates, Charges, and Payment Terms.               

 

        (a)       Shipper shall pay Carrier, within twenty (20) days of the invoice date, the

                  amounts  calculated  in accordance with the schedule of  rates  and  charges

                  attached hereto as Appendix B, including any written supplements thereto, and

                  as otherwise  set forth  in this Agreement.  No offsets  may  be  taken  against

                  invoiced charges.  Carrier shall apply Shipper's payment to the amount due for

                  the specified  invoice, regardless  whether there are earlier unpaid invoices.

                  Carrier may assess a service charge 1% per month (or the highest lawful rate,

                  if less) for any delayed payments.

      

       (b)      On billings to third parties, Shipper, as the contracting party with Carrier will

                  be responsible for all freight and related charges for transportation under this

                  Agreement.  As an accommodation to Shipper, Carrier shall bill a third party

                  upon notice on the freight documentation the Parties utilize, but Shipper agrees

                to guarantee payment and stand as primary debtor.  Carrier shall:  (i) advise

                  Shipper if third party payment is not made within thirty (30) days of billing;

                  (ii) assign to Shipper any rights Carrier may have to collect freight charges

                  from  the  third  party; and  (iii)  cooperate  with  Shipper  in any collection

                  proceeding instituted by Shipper, with the understanding that Carrier will be

                  reimbursed reasonable expenses of so doing.  Shipper will pay the third party

                  freight bill within thirty (30) days of the assignment provided above.

 

        (c)     If Shipper does not pay the invoiced amounts, Carrier must commence civil action

                  to  recover  such  invoiced  amounts  within eighteen (18) months of delivery or

                  tender of delivery of the shipments involved.  If Carrier alleges undercharges, or

                  Shipper alleges overcharges, duplicate payment, or over collection, notice of such

                  claims or unidentified payments must be given within 180 days of receipt of the 

                  invoice and a civil action or arbitration proceeding must be filed with eighteen

                  (18) months of delivery or tender of delivery of the shipments involved.  The

                  processing, investigation, and disposition of overcharge, unidentified payment,

                  duplicate payment, or over collection claims shall be governed by present federal

                  regulations codified at 49 C.F.R. Part 378.

   

4.     Freight Documentation.  The  terms and conditions of this Agreement shall prevail over

        those appearing on any form (s) used by the Parties for the delivery of freight.  Any

        form(s) used by the Parties shall only be used for the purpose of documenting the pick-up

        and delivery of freight.  Either Party, at its option, may supply any document required by

        or referenced in this Agreement in either paper or electronic form (including, but not

        limited to, an electronically imaged, faxed, photocopied, or online posted version), and

        any such version shall be sufficient for all purposes under this Agreement.  Unless

        specifically agreed to by the Parties, any joint movement involving another transportation

        entity to or from a point outside the U.S. shall not be considered as moving on a "through"

        bill of lading.

 

5.     Insurance.   Carrier shall maintain during the term of this Agreement (a) workers'

        compensation  insurance on all employees, as required  by  applicable state law, (b)

        automobile and property damage liability insurance with limits of liability of not less than

        $1,000,000.00 per occurrence, (c) cargo insurance to cover damage to or loss of cargo in

        the amount of $1,000,000.00 per occurrence, and (d) general liability insurance with limits

        of liability of not less than $1,000,000.00 per occurrence.  The required insurance shall

        cover the entire geographic scope in which the Carrier will operate under this Agreement

        and, as applicable, be "Broad Form."  Upon request, Carrier will furnish Shipper with a

        certificate of insurance from a reputable insurance company evidencing such insurance.

        Carrier will request that its insurance company provide 30 days' advance notice to

        Shipper prior to cancellation of such insurance.   Neither Party  waives  any  right  to

        subrogation it or its insurers may have arising out of service provided pursuant to this

        Agreement.

 

6.      Refused Shipment-Warehouseman Liability.  If the consignee refuses the lading tendered

        by  Carrier  or  if  Carrier  is  unable  to  deliver  the  lading because of fault or mistake of

        Shipper or the consignee, or if Shipper advises and instructs Carrier to stop movement of

        The  lading  and  to hold it in transit, Carrier's liability thereafter immediately shall be that

        of  a  warehouseman.  The  procedures  which  Carrier  agrees  to  and  will  take  as  a

        warehouseman involve the use of ordinary care to keep the lading in a safe or suitable

        place or to store the lading properly.  Carrier shall (a) attempt to give Shipper notice as

        soon as possible to the fax listed on this Contract if the foregoing occurs, (b) place the

        lading  in  public  storage,  if  available,  unless Carrier  receives  contrary  disposition

        instructions  from  Shipper  within  twenty-four  (24)   hours,  and (c) if  disposition

        instructions  are  not  given by Shipper within ten (10) days of Carrier's initial notification

        to Shipper, Carrier  may  offer  the lading for public sale.  In the case of perishable lading,

        Carrier may dispose of the lading  at  a time  and  in  a  manner Carrier deems appropriate.

        Shipper will be responsible for storage costs and reasonable costs Carrier incurs in acting

        as a warehouseman.  To the extent any sale or disposal revenues exceed the storage costs                    

        and  the  costs  Carrier  incurs  as  a  warehouseman,  Carrier  shall remit  the  balance to

        Shipper.  If  Shipper  gives  Carrier  timely  disposition instruction, Carrier shall use any 

        commercially reasonable  steps  to  abide with  such instructions.  Shipper will pay Carrier's

        costs and any additional transportation costs Carrier incurs in doing so.

 

7.      Cargo Liability.

 

        (a)      Carrier shall be liable to Shipper for loss or damage to lading occurring while it is

                  in Carrier's possession, except to the extent such loss of damage is caused by an act

                  of God or a public enemy, a public authority, an act of Shipper, or the inherent vice

                  or nature of the lading.  Carrier's possession of  lading  under  this  Agreement  shall

                  begin when Carrier has executed  the  freight  documentation  form  for  such  lading

                  and  shall  terminate  upon  the  lading  being  tendered  for  delivery  to  Shipper's

                  consignee.

 

        (b)      Carrier's liability for cargo loss and damage will be as described in the provisions

                  of 49 U.S.C.  14706.  The Parties agree to a released value rate of $0.50 per cargo

                  pound (freight only) as included within Appendix B to this Agreement.  In no event

                  shall carrier be liable in an amount greater than the limits of the cargo insurance

                  required herein.

 

        (c)      Claims for loss or damage to lading must be filed in writing by Shipper within nine

                  (9) months from date of delivery, or scheduled date of delivery of lost lading, or in

                  the  absence  of  a  scheduled  delivery  date, the  filing  period  shall  begin  after a

                  reasonable  time has elapsed for delivery, and a civil suit shall be commenced  by

                  Shipper within two (2) years from the date Carrier gives Shipper written notice     

                  Carrier is disallowing the claim or any part of it.  Claims will be filed and resolved

                  in accordance with federal regulations codified at 49 C.F.R. Part 370.   

        (d)      The measure of damages for loss of or physical damage to the cargo shall be the

                  shipper's replacement cost.  Carrier also shall be liable for the reasonable costs of

                  the Shipper to mitigate its damages, but in no event shall carrier be liable in an

                  amount greater than $0.50 per pound or the limits of the cargo insurance required

                  herein, whichever is less.

 

        (e)      In no event shall Carrier be liable to shipper or anyone else for special, incidental,

                  or consequential damages that relate to loss, damage or delay to a shipment, unless

                  Shipper has informed Carrier in written or electronic form, prior to or when

                  tendering a shipment or series of shipment to Carrier, of the potential nature and

                  type of such damages, and Carrier specifically agrees in written or electronic form

                  to accept responsibility for such damages.  In no event shall Carrier be liable to

                  Shipper or anyone else for punitive or exemplary damages that relate to loss, damage 

                  or delay to a shipment.

 

8.      Sealed Shipment.   If Shipper loads and seals the lading in or on the trailer and Carrier does

         not have the opportunity to count the lading  being  loaded  and the seal is intact upon                                             

        delivery,  Carrier shall be absolved from any liability for shortages or any damage to the

        lading except when proximately caused by independent action of Carrier.  Such absolution

        of  liability  will  also occur if  (i)  the  seal  is  broken  at  the  direction  and  under  the

        supervision of an agent of a body politic, or (ii) trailers are preloaded and the adequacy of

        loading or count of such trailer is not practical by a  representative of Carrier.  Carrier

        agrees that if a seal is broken and an inspection made by an agent of a body politic, its

        operator or other representative  will  take  all reasonable steps to secure  the count, safety,

        and integrity of the lading.  These steps will include requesting that the body politic reseal

        the trailer and/or make appropriate notation on the freight documentation form.  Carrier

        may break the seal on a trailer if, upon Carrier's determination or that of its operator or

        other  representative, it becomes reasonably necessary to do so to inspect, reposition, or

        protect the lading or Carrier's equipment or to comply with federal, state, municipal, or                          

        provincial laws, rules and regulations.   Shipper's consignee may not refuse delivery of a

        shipment solely because the seal on a trailer is broken.

 

9.      Salvage.  Shipper  will  have  the  right  reasonably  to  determine to repair, repackage,

        salvage, or scrap damaged lading. If Shipper elects to salvage lading, Shipper shall notify

        Carrier to return the lading to Shipper or allow Carrier to dispose of the lading.  If salvage

        is sought, at  least  two independent bids shall be obtained, and the highest  bid accepted.  

        Any monies  received in salvage, whether  accomplished by Carrier or Shipper, will be

        credited, if applicable, against any amount Carrier may otherwise be responsible for in

        terms of the damages.  Shipper may condition salvage upon the removal of all identifying

        marks or labels or the lading being permanently marked as "damaged" or with a similar

        notation.  If Carrier is retained by Shipper to return the damaged lading for repair, salvage,

        or scrapping, Shipper agrees to pay Carrier freight charges otherwise provided in this

        Agreement, or at a negotiated rate to be reduced to writing, without prejudice to recovery

        of such freight charges as damages.  Damaged lading will not be scrapped unless repair

        and/or salvage is not feasible.  If Carrier salvages the lading, Carrier may bill a reasonable

        charge for doing so against salvage receipts.

 

10.     Indemnification

 

        (a)      Carrier shall defend, indemnify, and hold Shipper and its employees and agents                                                                

                  harmless from and against all claims, liabilities, losses, damages, fines, penalties

                  payments, costs, and expenses (including, without limitation, reasonable legal fees)         

                  caused by and resulting from (i) the negligence or intentional misconduct of Carrier

                  or its employees or agents, or (ii) Carrier's or it employees' or agents' violation of

                  applicable laws or regulations.   

 

        (b)      Shipper shall defend, indemnify, and hold Carrier and its employees and agents

                  harmless from and against all claims, liabilities, losses, damages, fines, penalties,

                  payments, costs, and expenses (including, without limitation, reasonable legal fees)

                  caused by and resulting from (i) the negligence or intentional misconduct of Shipper,

                  its employees, or agents, or (ii)  Shipper's or its employees' or agents' violation of

                  applicable laws or regulations.

 

        (c)      In the events such claims, liabilities, losses, damages, fines, penalties, payment

                  costs, and expenses (including, without limitation, reasonable legal fees)  are

                  caused by the joint and concurrent negligence of the Parties, or the Parties and a

                  third party, the indemnity obligations for such claims, liabilities, losses, damages,

                  fines,  penalties,  payments, costs,  and expenses  (including,  without limitation,

                  reasonable legal fees)  shall be borne by each Party in proportion to its degree of

                  fault.

 

        (d)      In no event shall either Party be liable to the other under this Section 10 to the extent

                  damages are incidental, consequential, special, punitive, or exemplary.  Any

                  indemnified party under this Section 10 shall promptly tender the defense of any

                  claim to the indemnifying Party.  Carrier's liability for cargo damage shall be

                  governed by Section 7 above.               

 

 

11.     Hazardous Materials.  No shipments containing hazardous materials shall be tendered for

        transportation  unless  approved  by  ATS  Management.  Contact  K.C.  Sanders  at 

        800-968-8546 or 843-308-6121 for approval.

 

12.     Legal Restraint of Force Majeure.  In the event performance by one Party is affected by

        any cause beyond the reasonable control of such Party, including without limitation, fire,

        labor strife, riot, war, weather conditions, acts of the public enemy, acts of God, acts of

        terrorism, local or national disruptions to transportation networks or operations, material,

        equipment repairs, fuel shortages, governmental regulations, or governmental request or

        requisition for national defense, and provided that the applicable cause is not attributable

        to the acts or omissions of such Party, and such Party is taking reasonable measures to

        remove or mitigate the effects of the applicable cause, then the running of all periods of

        time mentioned herein and the performance of all obligations required herein shall be

        suspended during the continuance of such interruption, and such Party shall promptly

        notify the other Party of such interruption.  Such period of suspension shall not in any way

        invalidate this Agreement, but on resumption of operations, any affected performance by

        such Party shall be resumed.  Carrier shall be permitted an extension period equal to the

        period of suspension to complete shipments adversely affected by the suspension.  No

        liability shall be incurred by either Party for damages resulting from such suspensions.

 

13.   Business and Employment Opportunity.  Shipper agrees to notify Carrier forty-eight (48)

        hours before tendering any load that would subject Carrier to regulation under any non-

        discrimination laws, rules, orders, and regulations of governmental authorities, including,

        but not limited to, Title VII of the Civil Rights Act of 1964, as amended, Executive Order

        11246, and the rules and regulations promulgated thereunder, the Rehabilitation Act of  

        1973,  and the Vietnam Era Veterans Readjustment Act of 1974.  If Carrier accepts such a   

        load, the Parties agree to comply with any applicable non-discrimination laws, rules,

        orders, and regulations.

 

14.    Notices.  Any notice required or permitted to be given under this Agreement, unless

        otherwise indicated, shall be deemed sufficiently given if it is delivered by hand or sent by

        prepaid mail, registered or certified, return receipt requested, by a nationally recognized

        overnight courier, or facsimile transmission (with confirming copy sent first class mail) if

        sent to the address or fax number and to the attention of the individual noted in the

        signatory provision hereof.

 

15.   Captions.  The captions set forth in the Agreement are for convenience only and shall not

        be considered a part of this Agreement nor affect in any way the meaning of the terms

        and provisions hereof.

 

16.     Successors and Assigns; Other Parties.  This Agreement shall be binding upon and inure 

        to the benefit of the Parties hereto and their respective successors and assigns.  This

        Agreement may not be assigned by either Party without the written consent of the other

        Party, except to any wholly-owned subsidiary of such Party and, except in the case of

        Carrier, an assignment in connection with the sale of substantially all of the assets of

        Carrier or merger by Carrier with or into another entity.

 

17.     Entire Agreement.  This Agreement and the attached Appendices constitutes the entire

        agreement between the Parties hereto and supersedes all prior agreements, representations,

        warranties, statements, promises, information, arrangements, and understandings, whether

        oral, written, expressed, or implied, with respect to the subject matter hereof.

 

18.     Amendments.  No amendment or modification of the terms of this Agreement shall be

        binding unless in writing and signed by the Parties.

 

19.     Severability.  Any term or provision of this Agreement that is held to be  invalid or

        unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent

        of such invalidity or unenforceability without rendering invalid or unenforceable the

        remaining terms and provisions of the Agreement or affecting the validity or

        enforceability of any of the terms or provisions of this Agreement in any other jurisdiction.

 

 

20.     Waiver.  No waiver of any right, power, or privilege hereunder shall be binding upon any

        Party unless in writing and signed by or on behalf of the Party against which the waiver is

        asserted. 

 

21.     Counterparts.  This Agreement may be executed in one or more counterparts, any or all

        of which shall constitute one and the same instrument.

 

22.     Governing Law.   The Parties desire that the provisions of this Agreement will have

        precedence over any federal or state provisions governing or dealing with the specific

        provisions of this Agreement.  The Parties agree that pursuant to 49 U.S.C. 14104 (b) (1)

        they expressly waive any and all rights and remedies under the Interstate Commerce

        Commission Termination Act and Interstate Commerce Act as amended, and regulations

        promulgated thereunder, including Part B of Subtitle IV Interstate Transportation, 49

        U.S.C. 13101, et seq., as well as State transportation statutes (the "Acts") that are

        inconsistent with the provisions of this Agreement.  No party shall challenge any provision

        of this Agreement on the ground that any such provision or provisions violates the waived

        rights and remedies under the Acts.  To the extent no conflicts exist with this Agreement or     

        federal law, the law of the State of South Carolina shall apply.

 

23.     Dispute Resolution.  The Parties agree that this Agreement is being entered into in good

        faith and that if a dispute arises in its application or interpretation that:

 

        (a)       They shall attempt to resolve said dispute between themselves or upon mutual

                   agreement by the intervention of an experienced mediator and upon the terms

                   and cost allocation agreed upon.   

 

        (b)       If a dispute is not resolved voluntarily, good faith considerations shall be given to

                  submitting the dispute to final and binding arbitration under the Commercial Rules

                  of the American Arbitration Association before a single arbitrator at a point

                  mutually agreed upon or if no point is agreed upon at the offices of the Association

                  which is approximately equal distance from the headquarters of the Parties.

 

        (c)       If arbitration is not agreed to, or if the dispute involves a remedy not otherwise

                  available in arbitration such as, but not limited to, injunctions, criminal penalties,

                  or certain equitable relief, civil action may be pursued subject to the following: (i)

                  jury trials are waived by the Parties; (ii) service by certified mail to the persons

                  specified as being entitled to notice under this Agreement and to the address

                  shown shall constitute valid and binding service of process; and (iii) jurisdictional

                  issues as to state or federal jurisdiction and forum non-convenes are not waived.

 

 

 

24.     Venue.  Any suit relating to this contract must be filed in the state or federal courts

        governing Charleston County, South Carolina.       

 

25.     Confidentiality.    The Parties shall keep in confidence and not disclose to any third party 

        (a) the terms of this Agreement, and (b) any confidential or proprietary information either

        learns about the other Party, such as, but not limited to, the rates, value, origin, destination,     

        or consignee of any shipment made hereunder.  The Parties may disclose such terms and

        information to the extent required by law, to obtain financing, to substitute service

        providers to the extent necessary to provide such substitute service, or to auditors retained

        for the purpose of assessing the accuracy of freight bills.

 

26.     No Use of Name.  Neither Party may use the other's name, trademarks, or trade names, or         

        those of its subsidiaries or affiliates, in any manner, especially advertising, without the

        other's expressed written consent, which may be withheld in such Party's sole discretion.   

 

27.     Compliance with Laws and Regulations.  The Parties shall at all times comply with all            

        applicable federal, state, municipal, and provincial laws, rules and regulations including,

        but not limited to , the federal and state safety regulations.  To the extent this Agreement or

        any services provided hereunder shall conflict with such laws, rules, and regulations, this

        Agreement and the services provided hereunder shall be modified to comply with such

        laws, rules, and regulations, and the Parties shall not be deemed in breach of this

        Agreement or suffer any liability or penalty for compliance with such laws, rules, and

        regulations.  In the event Carrier, through no fault of its own, is delayed or removed from

        service by or because of an inspection by any body politic, Carrier shall not be deemed in

        breach of this Agreement, nor shall it suffer any liability or penalty under the terms of this      

        Agreement.

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by a duly authorized officer effective as of the date first above written.

 

CARRIER: ATS Intermodal, LLC                                SHIPPER:

 

Name: _______________________________           Name: ______________________________

 

By:       _______________________________          By:       ______________________________

 

Title:     _______________________________          Title:     ______________________________

 

Dated:  _______________________________          Dated:  ______________________________

 

 

INFORMATION FOR NOTICES

 

Address:           2465 Air Park Rd.                    Address:           ______________________________

 

                      Charleston, SC 29406                               ______________________________

 

 

Phone:             843-308-6121                         Phone:             ______________________________

Fax:                  843-308-6122                         Fax:                  ______________________________

 

Attention:          _____________________      Attention:          ______________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX A

 

SCOPE OF SERVICE

 

 

1.      This Agreement for Transportation will primarily govern the transport of intermodal   

        containers.

 

2.      The equipment used in performing transportation services will be the type of equipment

        normally utilized for transporting intermodal containers or general freight.  Limited

        movement of Hazmat Material based on commodity classifications.

 

3.      Freight bills will be forwarded electronically or via regular mail to the shipper, and    

        payment will be expected within twenty (20) days of the invoice date.

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX B

 

 

FREIGHT CHARGES - CARGO LIABILITY LIMIT

ACCESSORIAL AND MISCELLANEOUS CHARGES

 

 

 

 

1.      Basic Freight Charges.  The Parties agree that Carrier shall be paid for its transportation

        services in accordance with the attached price list or individual rate sheet, which can only

        be changed by the written agreement of the Parties.  The attached price list applies only to

        the commodities identified in this Agreement and assumes that Shipper will tender and

        Carrier will transport only those commodities.  If no commodities are specifically identified

        in this Agreement, Shipper shall notify Carrier at least twenty-four (24) hours before the

        time of tendering a load that has a value exceeding the limits of cargo coverage required

        under this Agreement, and Carrier shall have the right to refuse any such load.

 

2.      Cargo Liability Limit.  Shipper/Carrier agree on a cargo released value of $0.50 (fifty

        cents) per cargo pound (freight only).  Motor Carrier, in no way, will be responsible to

        Shipper for monetary value in excess of $.050 (fifty cents) per cargo pound.  In no event

        will the carrier be liable in an amount greater than the limits of the cargo insurance

        required within the Motor Carrier/Shipper Agreement.

 

3.      Mileage Computation.  If any payment is specifically based on a mileage basis, mileage

        will be determined by the practical mileage route determined by the following software:

        PC Miler, version 18.  New versions of this software will not automatically be adopted

        under this Agreement, and must be specifically agreed to by the Parties in writing.

 

        If governmental restrictions prescribe specific routes to be used or avoided because of the

        size and/or weight of the shipment, the nature of the lading being transported, or there

        exist unusual road conditions, Shipper will pay the additional mileage required to

        complete delivery.  If freight charges are not described on a mileage basis, the following

        mileage charge may be assessed by Carrier for excess mileage:      $1.50 per mile.

 

4.      Fuel Surcharge.  Freight charges will be subject to a fuel surcharge, which will be billed as

        a separate charge on freight bills.  The charge will be adjusted up or down each Tuesday

        by the percentage adjustment listed on the matrix attached as Appendix C.

 

5.      Payments.  All payments, whether involving a domestic or international shipment shall be

        made in U.S. currency and at U.S. rate of exchange.  Net due within twenty (20) days of

        invoice date.

 

 

6.      Detention of Trailer with Tractor.  Upon Carrier's offering of a trailer with tractor for

        loading or unloading, Shipper or Shipper's consignee, as the case may be, shall be

        allowed, without charge, two (2) hours to complete such loading or unloading and release

        the equipment for dispatch.  If Shipper or Shipper's consignee fails to complete the

        loading or unloading and release the equipment for dispatch within the two (2) hour period,

        Shipper shall pay Carrier a detention charge of $100.00 per hour for each hour or fraction

        thereof in excess of the one (1) hour period.  Shipper shall use the trailer with tractor for

        the sole purpose of loading and/or unloading the lading within the scope of this Agreement.

 

7.      Tractor Ordered and Not Used.  If Shipper requests a tractor with operator be made

        available and cancels its request prior to dispatch, Shipper shall pay Carrier a charge of

        $150.00.  Shipper is responsible for the full quoted amount on all dispatched tractors,

        regardless of notice to cancel after dispatch.

 

8.      Determination of Detention Period.  For purposes of determining the number of hours

        and/or days that a tractor, trailer, or operator is detained by Shipper or Shipper's consignee

        for loading or unloading, Carrier may use, in its reasonable discretion, any reliable method

        of determining the date and time that a tractor, trailer, or operator is offered for loading or

        unloading including, without limitation, a signed bill of lading or delivery receipt.

 

9.     Reconsignment.   If Shipper reconsigns or otherwise changes the destination of a shipment

        prior to delivery, the applicable rate shall be the rate that would be applied had Carrier

        been originally directed to deliver the shipment to the new destination via the location

        where the shipment was located at the time it was reconsigned, plus a reconsignment

        charge equal to the greater of $75.00 or $1.50 per additional mile required by virtue of

        the reconsignment.  If a shipment is reconsigned or otherwise assigned a new destination at

        the time of delivery, the applicable rate shall be the rate that would apply to a new

        shipment from the point of delivery to the new destination, and Carrier shall bill for the

        reconsigned shipment as though it were two separate deliveries.

 

10.     In-Transit Stop-Off / Drop Charges.  A single shipment may be stopped at the direction of

        Shipper for partial loading or partial unloading; provided, however, that in the event of any

        in-transit stop  at  the direction of  Shipper or  Shipper's consignee, Shipper  shall pay             

        Carrier, in addition to other freight charges due (a) $75.00 for the 1st stop-off; (b) $100.00

        for a second stop-off; (c) $150.00 for a third stop-off.

 

11.     Excess Weight Charge.  Carrier will assess a $25.00 per container additional fee for any

         local container drayage move in excess of 47,000 lbs.  (Charleston Tri-County area only)

 

12.     Scaling a Container.  Carrier will assess a $50.00 per container + Cost of Scale Tickets to

        the appropriate local drayage fee to scale a container.  

 

13.     Permits.  Carrier shall secure any permits for any over-dimensional or overweight load and

        Shipper agrees that Carrier may bill Shipper the actual cost of any permits or those costs

        for the use of any required escort vehicles.  If the over-dimensional or overweight

        movement requires the payment of tolls over normal truckload tolls, Shipper shall absorb

        the difference in charges.

 

14.     Forwarding and Documentation Services.   On any international or coastal intermodal

        service, Shipper shall be responsible for any costs involved in forwarding and

        documentation services.

 

15.     Split Pickups on Shipper Premises.   If Carrier is required to make pickups at two or more    

        sites on a premise, an additional charge of $50.00 per pickup, exclusive of the initial

        pickup will be assessed to Shipper.

 

16.     Movement Under certain or Special Bonds or Special Permits.  If shipper tenders a

        shipment moving under a Custom Bond, Carrier shall charge Shipper $10.00.  If a body

        politic requires a bond or special permit, Carrier will assess the cost of such bond or

        permit to Shipper.

 

17.     Per Diem.  Carrier requires a 48-hour notice via e-mail or fax to pickup any steamship line

        equipment (whether for loading or unloading).  This means should Carrier be notified on a

        Thursday that equipment is ready for pick up, Carrier will assure its return to the port no

        later than the following Monday.  However, Carrier will not be responsible for per diem

        charges resulting from equipment sitting over a weekend or holiday period.  If Carrier has

        to drop and hook any equipment  at client's designated facility, Carrier will  monitor the

        equipment and if the equipment should go into a per deim status, the Carrier will

        immediately invoice Shipper for those charges and it will be the responsibility of the 

        Shipper to pay these charges within the agreed upon payment terms.  Per diem charges will

        be invoiced and posted separately from freight charges.

 

18.     Demurrage.  48-hour notification is required for pick up of import loads from the port or

        rail.  Notification must be in the form of a faxed delivery order or e-mail.  This notification

        must include the last day of free time.

 

19.     USDA-US Customs Live Inspection.  Carrier will assess an additional $85.00 per

        container fee, plus fuel surcharge, for draying container locally to USDA facility.

 

20.     USDA - US Customs Drop & Return Inspection.  Carrier will assess an additional

        $170.00 fee per container, plus fuel surcharge, for draying a container to USDA facility.

 

21.     Local, Container Drayage Charges.  Carrier will assess a $75.00 per container additional

        fee, plus fuel surcharge, in completing a one-way local container drayage from steamship

        line terminal yard to Carrier's container yard.

 

      

 

        Carrier will assess a $40.00 per container, per day; additional fee for each container, that

        Shipper instructs Carrier to hold in storage on the Carrier's property.  This charge will

        commence from the day of pick up until the day prior to delivery.

 

        Carrier will assess a $75.00 per container additional fee, plus fuel surcharge, for

        each one-way local container drayage move that carrier is required to bobtail in

        order to pick up an empty container at the Shipper's facility.

 

        Carrier will assess a $100.00 per container additional fee for the handling of a loaded

        or empty refrigerated container that must be picked up from the port terminal.

 

 

 

 

 

 

APPENDIX C

FUEL SURCHARGE PROGRAM

 

The fuel surcharge shall be determined by reference to (i) the U.S. Department of Energy ("DOE") diesel fuel price associated with the Lower Atlantic Region.  This rate is posted each Tuesday of the week.  Based on this average, the below chart will be used to determine the fuel surcharge applicable to any shipments completed within a given week..  The national average diesel fuel price can be found on the Internet at the web site www.eia.doe.gov.

 

The following schedule will apply:

 

 

DOE Price                                                                        Surcharge

 

Up to $1.99                                                                      None      

 

$2.00 to $2.06                                                                   13 %

 

$2.07 to $2.13                                                                   14%

 

$2.14 to $2.20                                                                   15%

 

$2.21 to $2.27                                                                   16%

 

$2.28 to $2.34                                                                   17%

 

$2.35 to $2.41                                                                   18%

 

$2.42 to $2.48                                                                   19%

 

$2.49 to $2.55                                                                   20%

 

$2.56 to $2.62                                                                   21%

 

$2.63 to $2.69                                                                   22%

 

$2.70 to $2.76                                                                   23%

 

$2.77 to $2.83                                                                   24%

 

$2.84 to $2.90                                                                   25%

 

$2.91 to $2.97                                                                   26%

 

$2.98 to $3.04                                                                   27%

 

$3.05 to $3.11                                                                   28%

 

$3.12 to $3.18                                                                   29%

 

$3.19 to $3.25                                                                   30%

 

$3.26 to $3.32                                                                   31%

 

$3.33 to $3.39                                                                   32%

 

$3.40 to $3.46                                                                   33%

 

$3.47 to $3.53                                                                   34%

 

 

The same formula will be used should the index reach or exceed $3.54.  Adjustments will be made each Tuesday based upon the weekly DOE price.