Specific Rules for =
Future=20
Space Exchange
I.=20
Qualification Confirmation for Future Space=20
Exchanges
1. =20
Both the =
transacting=20
parties shall be legally-founded international shipping companies, or =
direct=20
cargo-owners as well as their authorized international freight =
forwarding agent,=20
or non-vessel operating common carriers with their bills of lading filed =
with=20
the Ministry of Communications and shall be members to the Shanghai =
Shipping=20
Exchange (hereinafter referred to as the Exchange) as well. The parties =
shall=20
sign the Service Contract of Future Space Exchanges with the Exchange, =
and=20
provide deposit in accordance with the relevant rules and=20
regulations.
2. =20
Where the =
transacting=20
party is not the member to the Exchange, but its qualification is =
however in=20
conformity with the conditions in the preceding paragraph, such party =
may apply=20
to the Exchange for the interim membership and conduct future space =
exchanges as=20
the interim member, or entrust members to the Exchange for=20
transaction.
3. =20
The Exchange =
shall=20
provide members qualified for future space exchange with the online=20
identification name, code and password for transactions.
=A1=A1=A2=F2. Deposit =
and=20
Bank Guarantee
1. =20
Both the =
transacting=20
parties shall, prior to participation in the future space exchanges, =
provide=20
deposit at the sum of 10% of the total value of transaction. In case of=20
infringement of agreement, the deposit made by the breaching party shall =
be paid=20
as the penalty to the other contracting party. The deposit shall be made =
in the=20
Chinese currency Renminbi at the fixed exchange rate to the designated =
bank=20
account No. ___________, and the US dollar is also available.
2. =20
The seller =
shall, prior=20
to offering the space, pay as the deposit not less than 10% of the total =
transacting value (offered space x freight rate), or provide bank =
guarantee to=20
that effect.
3. =20
The buyer =
shall, prior to=20
bidding the space, provide necessary deposit at the sum more than or =
equivalent=20
to 10% of the total transacting value (bidding space x freight =
rate).
4. =20
Conditional =
bank=20
guarantee (to be confirmed by the Exchange) shall be acceptable for the =
future=20
space exchanges.
=A1=A1III. =
Operating=20
Procedures for Future Space Exchanges
1. =20
Time for=20
Transaction
The Website (http://www.chineseshipping.co=
m.cn/)=20
offers 24-hour service, holidays included, and the day on which the =
future space=20
exchanges are completed on the website shall be deemed as the first =
working day=20
for arrangement of the trading document with the office hours running =
from 9:00=20
to 11:00 am. and 1:00 to 4:00 pm.
2. =20
Articles for =
Transaction=20
The transaction refers to the space =
exchange=20
aboard container liners plying between Shanghai and Japan (one month =
later and=20
within three months) and between Shanghai and Europe (one month later =
and within=20
six months).
Container slots for future exchange =
shall, at=20
the preliminary stage, be slots for 20ft and 40ft general dry cargo=20
containers.
The number of slots for future =
exchange=20
shall, for the Shanghai-Japan service, be not less than 30 TEU =
containers for=20
each voyage, whatever 20ft or 40ft containers.
The number of slots for future =
exchange=20
shall, for the Shanghai-Europe service, be not less 50 TEU containers =
for each=20
voyage, whatever 20ft or 40ft containers.
3. =20
Definition of =
Sellers and=20
Buyers
Sellers refer to shipping companies =
who sell=20
the space.
Buyers refer to non-vessel =
operating carriers=20
or cargo-owners who buy the space.
4. =20
Internet Items=20
(Online)
For Sellers: name of shipping =
company, port=20
of departure (Shanghai), port of destination, estimated time schedule =
for=20
sailing (two working days adjustable by the shipping company), slots for =
future=20
exchange, corresponding container variety and freight=20
rate.
For Buyers: name of shipping =
company (not=20
absolutely necessary), port of departure (Shanghai), port of =
destination,=20
estimated time schedule for sailing (subject to the sailing date =
confirmed by=20
the shipping company), required slots for future exchange, corresponding =
container variety and freight rate.
5. =20
Online Freight=20
Rate
1) =20
The online =
freight rate=20
shall include all the sea freight (including surcharges but excluding =
harbour=20
dues) paid by the shippers to the shipping company in the currency of US =
dollar.
2) =20
The online =
freight rate=20
shall be determined by the sellers or buyers independently in accordance =
with=20
the market demand, but not contrary to statutory law and the relevant =
industrial=20
rules and regulations.
6. =20
Limitation for=20
Adjustment=A1=A1
1) =20
The online =
freight rate=20
without final conclusion may be subject to adjustment.
2) =20
The online slot =
number=20
for one particular sailing date may be increased.
3) =20
Cancellation of =
online=20
slot without final conclusion shall be applied to the Exchange and be =
completed=20
by the operators after confirmation of the supervisors.
7. =20
Space Purchase =
and Sale=20
(Online)
Buyers and sellers may, after =
obtaining=20
transaction qualification from the Exchange, buy and sell the space in=20
accordance with the guidance on the website: www.=20
chineseshipping.com.cn.
1) =20
The minimum =
slot number=20
for the buyers shall be 1TEU slot while the maximum not to exceed the =
online=20
number.
2) =20
The seller =
shall, upon=20
transaction, sell the slots once the buyers have bought.
8. =20
Transaction=20
Completion
Once the transaction is made, the =
deposit=20
made by the transacting parties shall be frozen. The transaction sheet =
shall be=20
completed by the trading representatives in the Exchange between the =
first=20
working day after the completion of the transaction and the deadline for =
space=20
booking. The agent may, prior to completion of the transaction sheet, =
make=20
change of the name of the entrusted party, and no change shall be made =
once the=20
transaction is completed.=A1=A1=20
9. =20
Both the =
sellers and=20
buyers may conduct online inquiry about the counter-party seven days =
prior to=20
the estimated sailing day of the carrying vessel.
10. Space Booking and=20
Shipment
1) =
The buyers =
shall book the=20
space with such documents as the booking note, future space exchange =
transaction=20
sheet exclusively made by the Exchange and the operation arrangement at =
the=20
place of the sellers and their agents prior to the deadline for space =
booking=20
(usually five working days prior to sailing of the carrying =
vessel).
2) =
The sellers =
shall, after=20
space booking by the buyers, fill up the operation arrangement and the =
buyer=20
shall, after confirmation thereof, take delivery of the empty containers =
in=20
accordance with the operation agreement, stuff the containers with =
cargo, make=20
customs declaration, arrange inspections, dispatch the loaded containers =
to the=20
harbour and send back (the shipping order) released by the =
Customs.
3) =
Matters with =
respect to=20
space booking and shipment not covered by these Rules shall be subject =
to=20
customary practice applicable at the port of Shanghai.
11. The Exchange shall not be =
responsible for=20
the payment mode, which shall be otherwise negotiated between the =
sellers and=20
buyers. However, where the space has been fixed through future space =
exchange=20
and no agreement has been made on payment between the transacting =
parties, the=20
buyer shall effect the payment prior to issuance of the bill of=20
lading.
12. =
In case of =
breach of the=20
agreement, the party fulfilling the agreement shall provide the Exchange =
with=20
evidence of infringement within five working days after sailing of the =
carrying=20
vessel. The Exchange shall identify the breaching party in accordance =
with these=20
Rules, the Regulations on Future Space Exchanges, the Operation =
Agreement as=20
well as other relevant evidences.
13. =
Settlement
The agreement shall be deemed =
fulfilled when=20
no written objection has been made to the Exchange by either party =
within five=20
working days after sailing of the carrying vessel, and the deposit shall =
be=20
refunded to the transacting parties. When either of the transacting =
parties=20
requires the deposit to be refunded after shipment of the goods, the =
parties=20
demanding such refund shall provide the Exchange with the evidence =
proving the=20
fulfillment by the transacting parties and the Exchange shall refund the =
deposit=20
accordingly.
=A1=A1=A1=A1 =
=A2=F4=20
Exemptions
1. Where the loaded containers =
could not be=20
loaded on board the carrying vessel due to causes such as customs =
clearance not=20
attributable to the shipping company, the buyers may use the =
sellers=A1=AF equivalent=20
space for the following voyage of the same shipping line at the same =
freight=20
rate. This rule will be cancelled once the future market conditions are=20
matured.=A1=A1=A1=A1 =
2. Where the goods have been =
normally shipped=20
through coordination by both parties notwithstanding the fact that =
either party,=20
or even both parties have breached the agreement once or frequently, =
both=20
parties may get themselves exempted from liability and neither shall be =
deemed=20
to have breached the agreement.
V. Recognition of =
Breach in=20
Space Booking and Shipment
1. =20
Where the =
seller refuses=20
the space booking by the buyers or the space could not be properly =
booked by the=20
buyers at the time the buyers buy the space prior to the deadline for =
space=20
booking or at the time when the sellers sell the space, the sellers =
shall be=20
deemed to have breached the agreement, and the buyers shall provide the =
Exchange=20
with the relevant evidence to prove such breach by the shipping company. =
2. =20
Where the =
buyers fail to=20
book space prior to the deadline for space booking, the buyers shall be =
deemed=20
to have breached the agreement, and the sellers may, after application =
and=20
confirmation, have the right to make the space under future exchange =
otherwise=20
booked, and shall advise the Exchange of such occurrence in due time.=20
3. =20
The operation =
agreement=20
shall be signed by both the transacting parties upon space booking, =
failing=20
which breach of agreement occurs.
4. =20
Infringement of =
agreement=20
occurs in case any of the processes during space booking or shipment =
could not=20
be conducted in accordance with the operation agreement.
=A2=F6=20
Others
The method of=20
whole-purchase of space shall, at the demand of both parties, be =
applicable=20
during the online future space exchanges and the transacting rules for =
this=20
method shall be otherwise made by the Exchange.