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Maritime Finance Global Leader
Bid and Performance Guarantee Program
Shipping Business Management Support
Bid and
Performance Guarantee
KOBC provides guarantees in lieu of cash deposit a shipping company is required to submit when participating in a bid (Bid Guarantee) or concluding a contract with a charterer (Performance Guarantee).
- Compensation for loss suffered by the charterer when the successful bidder fails to enter into the contract
- Compensation up to the amount of contract deposit for charterer's loss resulted from a shipping company's failure to fulfil obligations under the main contract
Features/Benefits
- Support shipping companies in earning contracts with charterers by furnishing guarantees required from bidding to contract signing and performance
Main Terms
| Classification | Details |
|---|---|
| Guarantee beneficiary | Charterer (the "Creditor") under the relevant transport services contract (the "Main Contract") |
| Guarantee period | Main contract period |
| Guaranteed amount | Amount equivalent to deposit under the main contract (Bid amount or contract amount × deposit ratio) |
| Guarantee rate | Guarantee Fee Rate = Basic Rate × (1 ± Discount/Surcharge Rate) * Basic Rate as determined by a shipping company's credit rating ** Discount/Surcharge Rate varies by guarantee period, guarantee amount, deposit ratio, etc. |
| Guarantee debt | Compensation up to the guaranteed amount for loss caused by debtor's default under the main contract |
*For details, please refer to the terms and conditions of our bidding and performance guarantee.
