Freight exchange rules

THE RULES AND TRADING PROCEDURE OF SEA FREIGHT RATE QUOTATIONS ON «SEARATES.COM»

Edition 1.4, December 14, 2009
GENERAL PROVISIONS
The given Rules are a basic document that regulates trading operations between Brokers participating in the trading and the order of holding the trading session in the SeaRates.com system.

The Rules are obligatory for all exchange members. The participants, who do not agree with the Rules, have no right to use SeaRates.com freight exchange. SeaRates.com reserves the right to update or change the terms without prior notice.

Section 1. TERMS
Exchange - information field for quotations of sea freight rates for containerized cargo transportation between seaports.

Broker - bids participant registered at the site, accredited by Operator as a bidder and participating in trading on behalf of his/her company.

Operator - SeaRates.com representative engaged in organization and holding the bidding on the Exchange.

Freight rate – a certain price for freight transportation offered by the brocker.

Franchisor – the enterprice who paricipates in the development of project and inits finansation. Contacts of clients who are located in the ports of franchisor are closed for other users and available only for those who cooperates with them.


Section 2. FREIGHT EXCHANGE ACCESS
2.1. Only users accredited by Exchange as Brokers have the right to participate in trading and get trading information. Brokers have to provide full reliable information on themselves and their contact details.

2.2. Brokers are strictly forbidden to disclose trading information to entities that are not SeaRates.com Brokers.

2.3. Exchange trades are admitted for:

• Brokers accredited by Operator who have paid the Exchange services.

2.4. Exchange trades are not admitted for:

• Brokers whose access is denied by the Exchange.
• Brokers with five or more negative references.

Section 3. TRADING PROCEDURE
3.1. The trading session is held on a competitive basis by putting out a freight rate for the given container type, route and shipping line according to FIFO terms.

3.2. A freight rate participating in the trading must contain:

• Type of container
• Port of loading
• Port of discharge
• Shipping line
• Sea freight cost
• Shipping line freight surcharges
• Agent’s fee (if forwarding service is rendered by another company)
• Other charges
• Rate validity (time period during which the rate is valid)
• The limitations for the monthly supply volumes or minimum B/L shipment at which the rate is valid

3.3 The rates put out on freight exchange must be complete and include all the shipping line surcharges.

3.4. The shipping line can be hidden from a rate. In this case Broker who put the rate out on the trading will not receive clients’ freight inquiries.

3.5. Broker who has quoted a freight rate with a hidden shipping line has the right to reject a freight request of another Broker made on the rate; in that case a negative reference will not be filed on Broker.

3.6. All the freight rates and surcharges are added in US Dollars (USD,EUR).

3.7. The winning rate on the client’s freight request is determined by:   

 1) The lowest total freight rate acting between ports;   

2) The shortest transit time for line vessel voyage between ports shown in the rate. The container tracking system calculates the average transit time automatically.

3.8. Any quoted freight rate increase put up after Broker has got the client’s request is valid only for a case of the general freight rate increase (if GRI, PSS, other charges are added by shipping line) to be actual for all the forwarding companies and if there’s a written confirmation from the shipping line.

3.9. Freight rates from Brokers are accepted for 24-hours on daily basis.

3.10. The quoted freight rate has effect for its validity period.

3.11. Broker can delete his valid rate offer from the trading. To this end Broker has to explain such urgency and send a canceling request to Operator.

Section 4. LIABILITY OF BROKERS
4.1. If Broker gets five or more negative references the access to SeaRates.com will be closed for 180 calendar days.

4.2. If Broker increases illegitimately the quoted freight rate, Operator creates a negative reference on Broker and deprives him access to the Exchange for 60 calendar days.

4.3. If Broker discloses the trading results or passes his User ID or password used for his identification on the Exchange to the third party who has no access to the Exchange, his access to exchange will be closed without compensation and a further right to use the Exchange.

4.4. If Broker didn't quote a freight rate on the exchange within 30 calendar days, Operator can take a decision to close the Broker's access to the Exchange.

4.6. If Broker infringes the rules his access to the Exchange could be closed.

Section 5. CONTRACT AND PAYMENT TERMS
5.1. Broker can sign a sea freight contract with another Broker with the rate quoted by him at the Exchange. All the payment terms have to be arranged between Brokers at their own discretion without Operator’s participation.

5.2. If real terms differ from quoted ones on the trading, Broker requesting the rate refers to Operator to create a negative reference on Broker.