CONTAINER LEASE TERMS AND CONDITIONS
Riga 28.03.2024
Under theses business terms and conditions, we define the legal relations between our company – SIA “MCQ”, registration No 50103943101, legal address: Duntes iela 28 – 107, Rīga, LV-1005, Latvia, e-mail: export@mcqholding.eu (hereinafter – Lessor), represented by the board member Dmitrijs Krivunecs who is acting on the basis of articles of association or represented by the Lessors employee, on one side and you, our container lease customer (hereinafter – Lessee), who submits container lease request to us by phone, email, regular post or otherwise.
By submitting a contain er lease request or order you engage in legal relations with us and agree to be bound by the following terms of conditions that constitutes container lease agreement (hereinafter – Agreement).
Please read this Agreement carefully before approaching us or ordering container lease services. Contacting us with container lease inquiries, you agree to be bound by this Agreement. If you do not agree to all the terms and conditions of this Agreement, then you may not request from use the container lease services or use any services provided by us. If the Agreement is considered an offer, acceptance is expressly limited to this Agreement.
We reserve the right to update, change or replace any part of this Agreement by posting updates and/or changes to our website. It is your responsibility to check this page periodically for changes. Your continued use of our services or access to the website following the posting of any changes constitutes acceptance of those changes.
The Lessor and the Lessee both jointly referred to as the Parties, but separately as the Party, based on mutual interest and benefit conclude the following– Agreement:
SUBJECT OF THE AGREEMENT
Lessor undertakes to grant for use to the Lessee containers (hereinafter – Container) possessed by the Lessor in exchange for rent stipulated in this Agreement, but the Lessee undertakes to accept the Containers for the use subject to certain agreed order by paying the lease price for the use.
This Agreement shall be applied to multiple Container lease orders during the term of this Agreement.
ORDERING OF THE CONTAINERS
The Lessee shall submit to the Lessor certain Container lease order before scheduled acceptance for the use.
Lessor shall provide acceptance or refusal of the Lessee’s submitted order after acceptance.
The submission and acceptance or refusal of order Parties are entitled to carry out in form of electronic mail exchange (scanned *.pdf format order), by phone, by fax, post, direct delivery or in presence.
The Parties agree that the following electronic mails (hereinafter referred to as e-mail addresses) are used for electronic mail communication and all confirmations, instructions, as well as messages sent by the Parties to each other are considered an integral part of this Agreement:
of the Lessor: export@mcqholding.eu;
For the Lessee’s e-mail communication, any e-mail published on the Lessee’s website or used for communication with the Lessor can be used.
The Lessor is entitled to refuse to grant for the use the Containers and has the right to request submission of the order in original written form.
The Lessee is entitled to accept for the use the ordered Containers, when the Lessor has accepted certain Container order.
HANDOVER OF THE CONTAINERS
The Lessor shall inform the Lessee about the time for the acceptance of Containers. The Lessor shall hand over Containers and the Lessee shall accept them, based on information indicated in electronic information system of terminal which shall specify hand over/acceptance date of a Container.
During acceptance of the Containers the Lessee is obliged to inspect Container before its pick up in port Riga. All container defects and deficiencies the Lessee indicates in deed, which should submitted to the Lessor together with the photos of the defect fixation to confirm their existence before accepting the container. No deed submitted is presumed no defects.
The Lessee’s responsibility is to use a Container that is suitable for cargo transportation. Therefore, the Lessor is not responsible for the Lessee’s losses caused by the use of an unsuitable Container for the cargo.
The Lessee undertakes to inform the Lessor about the return time of the Container. The Lessee undertakes to return the Containers to the Lessor undamaged and clean. The Lessee agrees to cover expenses of the Lessor arising from cleaning, repair of the Containers, if the Container has been returned empty, partly or totally damaged.
The Lessor may carry out inspections of returned Container and submit claims and invoices on its cleanliness and conditions after the return of the Container.
LEASE TERM
Container lease term starts from the moment when the Container has been taken from the terminal and continues until this Container clean, without defects (natural wear and tear excepted) and odor-free is returned to the Lessee in the harbor terminal.
Unless Parties agree otherwise, maximum lease term shall be 30 (thirty) days.
If the Lessee has not returned the empty Container to the Lessor within the term stipulated in clause 4.2 of the Agreement, the Parties presume that the Container has been destroyed and the Lessee should immediately reimburse to the Lessor full Container value as stipulated in this Agreement.
Parties may prolong the maximum lease term in form of mutual written agreement.
RENT PAYMENT
Upon confirmation of the Container order the Lessor is entitled to grant to the Lessee free of charge usage period.
Unless it is prescribed otherwise in the order confirmation, free of charge Container use periods can be as follows:
for dry Container – up to 9 days;
hazardous cargo Container – up to 9 days;
Flat Container – up to 6 days;
Open-top container – up to 5 days;
Reefer Container – up to 9 days.
Rental fees for each type of Container are specified in Appendix No. 1 of this Agreement (“Rent Tariffs”).
In addition to the rent, the Lessee pays the Lessor:
The Container release fee specified in Appendix No. 1 of this Agreement (“Rent Tariffs”);
The Container acceptance fee specified in Appendix No. 1 of this Agreement (“Rent Tariffs”).
rent for delay of picking up the Container within the deadline set forth by the Lessor;
port terminal fees for handling of the Container.
The Lessee shall pay to the Lessor lease price for the use of the Containers based on the invoice which shall be paid within 7 (seven) days from the day of issue.
All the payments shall be made in form of transfer to the Lessor’s account pointed out in this Agreement or invoice. All payments shall be regarded to be completed on the day when a relevant payment is received in full amount in the bank account of the receiver.
All bank commissions and other payments for the servicing of the payment shall be covered by the Lessee and these additional costs shall not be included in the invoices issued by the Lessor.
The Lessor has unilateral right to amend the lease price prescribed in this Agreement by noticing the Lessee at least 30 (thirty) days before. Amendments shall commence and be binding to the Lessee, if the Lessee does not express objections within 7 (seven) days after notice was sent.
The Lessee is entitled to request from the Lessor credit line, the amount of which shall be determined in separate agreement. Grant of the credit line is unilateral prerogative of the Lessor and the Lessor is not bound to grant it. The credit line shall not apply to the demurrage, detention, storage and other additional fees for the use of Containers.
OBLIGATIONS OF THE LESSEE
The Lessee shall pay to the Lessor the rental fee specified in this Agreement, as well as other payments for the use of Containers and, in certain cases, interest on late payment, contractual penalty, compensation for cleaning, repair and destruction of Containers.
The Lessee shall use the Containers only for the transportation of cargo permitted by the Lessor. The lessee has no right to lease, rent or sublet the Container to other persons.
The Lessee does not have the right to transport prohibited cargo in the Container, cargo subject to sanctions.
The Lessee is obliged to:
return Container without damages (natural wear and tear excepted), clean, and without odors within the terms stipulated herein;
assume responsible for not downgrading condition of Containers during the use period;
perform on own expenses actions prescribed in the Agreement (washing, cleaning and repair) which are necessary in order to return the Container clean and without damages to the Lessor;
use the Container with due care and for the prescribed purpose;
immediately inform the Lessor about damages caused to the Container, about the inability to return the Container to the Lessor in due time, and about the location of the Container;
reimburse to the Lessor any damages and harm resulted from the necessity to clean, repair or return into usable conditions in other form;
carry only such cargo in the Container which may not corrode, oxidise, dent, puncture, contaminate, stain or damage the interior or exterior of the container(s) and make no use of the Container(s) which would cause damage, natural wear and tear excepted;
pay to the Lessor compensation for full destruction of the Container, if the Container could not be repaired, it is lost or is not returned to the Lessor within the prescribed term.
The Lessee is entitled to:
use the Containers without disruptions during the term of this Agreement;
request from the Lessor grant of the credit line;
carry out maintenance, cleaning and repairs which are necessary for Container in order to use it for the transportation of cargo;
The Lessee shall pay any taxes or duties and other payments, which are subject to use of the Containers. When the Containers are returned, the Lessee shall guarantee that all mentioned payments are made for the Containers.
OBLIGATIONS OF THE LESSOR
The Lessor confirms rightful possession of Containers with the right to rent the Containers during the entire lease term, there are no disputes with other person about the Containers, there is no risk of mandatory expropriation of the Containers. The Lessee shall not obtain any title over the Containers by paying lease price, compensation, payment of Container demurrage costs, taxes and duties or as a result of maintenance of the Containers.
If the Lessee has not paid any invoice for more than 10 (ten) days which is issued pursuant to this Agreement or total debt exceeds the determined limits of the credit line, the Lessor has the rights to:
Refuse grant for the lease Containers to the Lessee or to provide other services as long as the due payment is totally reimbursed, other violation is remedied or the debt is paid up to the limit of the determined credit line;
For the time until the delayed payment is made or until the debt is paid to the amount which does not exceed the amount of credit line, the Lessor has the lawful rights to enjoy the right to retainer with regard to cargo of the Lessee, documents connected with it or other moveable property which came into possession of the Lessor in compliance with this or other agreement.
In case conditions mentioned in clause 7.2.2 are met, the Lessor has the right to use the retained property – to request a performance of the Lessee’s obligations or to sell the retained property for the free price without organizing any auction.
If the Lessee is unable or late to deliver the Container to the Lessor’s designated terminal, then the Lessor has the right to deliver such a Container to the terminal at the Lessee’s expense, invoicing the Lessee.
The Lessor is obliged to:
Ensure transfer and acceptance of the Containers to the Lessee in pre-agreed time;
Not to hamper use of the Container during the entire lease period, if the Lessee observes this Agreement.
RESPONSIBILITY OF THE PARTIES
For delay of payment the Lessee shall pay to the to the Lessor a contractual penalty in amount of 0.5% (zero point five per cent) from the delayed amount for each day of delay. Payment of the contractual penalty shall not release the Lessee from performance of obligations stipulated in this Agreement
For delay of return of the Container the Lessee shall pay to the Lessor late interest in amount of 0.5% (zero point five per cent) from the compensation for the Container loss for each calendar day of delay.
The Lessor has the rights to direct all the payments received from the Lessee first to cover the contractual penalty, secondly, to cover initial debt, and, thirdly, for the payment of the interest.
If the Container is lost, totally destroyed, irreparably damages, has not been returned on time or has been expropriated by the state institutions during the usage time, the Lessee shall cover the following losses to the Lessor:
USD 3 500.00 (three thousand five hundred US dollars and 00 cents) for dry 20’ container;
USD 6 500.00 (six thousand five hundred US dollars and 00 cents) for dry 40’ container;
USD 25 000.00 (twenty five thousand US dollars and 00 cents) for 20’ refrigerator-container;
USD 25 000.00 (twenty five thousand US dollars and 00 cents) for 40’ refrigerator-container;
USD 6 500.00 (six thousand five hundred US dollars and 00 cents) for 20’ open-top container;
USD 11 000.00 (eleven thousand US dollars and 00 cents) for 40’ open-top container;
USD 11 000.00 (eleven thousand US dollars and 00 cents) for 20’ flat container;
USD 16 000.00 (sixteen thousand US dollars and 00 cents) for 40’ flat container;
If the repair is necessary for the Container after use by the Lessee, the Lessee shall pay the compensation for each day of demurrage and storage as a result of damages.
FORCE MAJEURE
The Parties shall not be responsible for non-performance of obligations if it is caused by circumstances beyond control of the Parties, which could not be reasonably forecasted, and could not be avoided with due care, for example, war, any military action, fire, floods, earthquake and other natural occurrences, then the performance period of the obligation shall be prolonged in proportion to period of these circumstances.
If the circumstances exceed three month period, any Party is entitled to waive its rights under this Agreement and in such occasion other Party has no right to bring a claim on possible recovery of damages.
Party, which is under force majeure circumstances which prevents the Party from performance of its obligations should immediately, but not later than within 5 (five) days, inform the other party on the occurrence of these circumstances and terminations thereof, which prevents the performance of the obligations.
TERM OF THE AGREEMENT
The Agreement shall commence when countersigned both Parties and shall be on force for indefinite period of time.
The Lessor is entitled to unilaterally withdraw from this Agreement, if the Lessee does not perform or violates this Agreement and does not rectify the breach within 10 (ten) days after the Lessor issued notice on the breach.
The Party has the right to unilaterally withdraw from this Agreement in any other circumstances by informing the other Party in wiring at least 30 (thirty) days before.
APPLICABLE LAW AND DISPUTE RESOLUTION ORDER
This Agreement shall be construed, performed and interpreted in accordance with the law of the Republic of Latvia.
All disputes that may arise from the performance of this Agreement, the Parties shall try to settle through negotiations. If no agreement is reached within 40 (forty) days, any dispute, disagreement or claim, which arises from this Agreement may affect it, or its violation, is concerned with its termination or validity shall be finally resolved in court of Latvia under the laws of the Republic of Latvia.
FINAL PROVISIONS
Parties guarantee that without written confirmation of the second Party no information related to this Agreement or negotiated between the Parties, substance of documents related with the execution of this Agreement, as well as information which became available to the Parties in regard to this Agreement, or information which Parties agreed to be regarded confidential shall be disclosed to any third party, unless it is required under the Agreement or law.
If any clause of the Agreement is in breach with the normative acts, it shall not affect the validity of the Agreement. Void provisions shall be substituted with the clauses in compliance with the purpose and subject matter of the Agreement.
This Agreement is prepared in Latvian and English. Each copy of the Agreement has an equal legal force. Text in Latvian is prevailing.
The Lessee has no right to transfer to the other parties obligations under this Agreement neither in part or totally without prior written approval of the Lessor.
REQUISITES
Lessor
SIA MCQ
Registration No 50103943101
VAT No LV50103943101
Duntes iela 28-107, LV-1005, Riga, Latvia
Bank: AS Swedbank
SWIFT ode: HABALV22
Account No LV17 HABA 0551 0456 5237 3
Annex 1 “Rent Tariffs”
The Parties set forth the following rent tariffs that the Lessor is entitled to unilaterally amend subject to the provisions of the Agreement:
STANDARD 20’DV 40’DV/HC 20’OT/FR 40’OT/FR
FreeTime 9 days 9 days 9 days 9 days
10th – 16th day 15 eur/day 25 eur/day 25 eur/day 45 eur/day
17th – 23rd day 25 eur/day 45 eur/day 50 eur/day 90 eur/day
Thereafter 35eur/day 55 eur/day 50 eur/day 90 eur/day
HAZARDOUS 20’DV 40’DV/HC
FreeTime 9 days 9 days
10th – 16th day 25 eur/day 45 eur/day
Thereafter 45 eur/day 85 eur/day
REEFER 20’RE 40’HR
FreeTime 3 work.days 3 work.days
Thereafter 110 eur/day 130 eur/day
FLAT RACK 20’FL 40’FL
Freetime 6 days 6 days
7th – 13th day 25 eur/day 45 eur/day
Thereafter 50 eur/day 90 eur/day