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What is a Minimum Quantity Commitment (MQC)?

 1 year ago
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What is a Minimum Quantity Commitment (MQC)?


A service contract between a BCO and VOCC where both parties agree to ship a specified volume of cargo at a specified and mutually agreed freight rate over a fixed period at a defined level of service.BCO和VOCC之间的服务合同,双方同意在一个固定的时期内,以规定的和双方同意的运费,在规定的服务水平上运输特定数量的货物

This commitment from the BCO to ship the specified and mutually agreed volume is known as a Minimum Quantity Commitment (MQC).BCO承诺运输指定的和共同商定的数量,被称为最低数量承诺(MQC)。

The Minimum Quantity Commitment generally forms the basis for determining the freight rate and providing carriers with the necessary information to reserve cargo space over the contractual period.最低数量承诺通常构成确定运费的基础,并为承运人提供必要的信息,以便在合同期内保留货物空间。

Due to the unpredictability of the business, more often than not, the BCO may be unable to predict the volume that they can commit to. However, a tolerance level may be set based on the mutual discussions between the carrier and the BCO.由于业务的不可预测性,更多时候,BCO可能无法预测他们可以承诺的数量。然而,根据承运人和BCO之间的相互讨论,可以设定一个容忍度。

A service contract is a legally enforceable agreement between the parties concerned with mutual obligations and specific terms. The MQC is essential to this contract, and both parties must adhere to the deal.服务合同是有关各方之间具有相互义务和具体条款的法律上可执行的协议。MQC对这份合同至关重要,双方都必须遵守交易。

The service contract may have many conditions attached to this MQC. The service contract may require this MQC to be evenly distributed throughout the contractual period. The BCO may not insist on as much space as they want on a particular vessel based on this MQC and contract.服务合同可能有许多条件附加在这个MQC上。服务合同可能要求这个MQC在整个合同期内平均分配。BCO可能不会根据这个MQC和合同坚持要求在某艘船上有他们想要的那么多空间。

The rates and MQC are specific to a contract, and a BCO cannot use this MQC or contract to claim any concessions on any other contractual arrangements with the same VOCC.费率和MQC是特定于一个合同的,BCO不能利用这个MQC或合同在与同一VOCC的任何其他合同安排上要求任何优惠。

From the BCO side, they must provide the agreed MQC volume to the VOCC. From the VOCC’s side, they must provide the required space and service for the agreed MQC.从BCO方面来说,他们必须向VOCC提供商定的MQC数量。从VOCC方面来说,他们必须为商定的MQC提供所需的空间和服务。

If the BCO fails to provide the minimum quantity committed, the space set aside by the carrier for the BCO may go unutilized. As per the service contract, the carrier may be eligible to claim compensation for these unused slots.如果BCO未能提供承诺的最低数量,承运人为BCO预留的空间可能无法使用。根据服务合同,承运人可能有资格为这些未使用的机位要求赔偿。

On the other hand, if the VOCC fails to provide the space required for the BCO to ship their cargo, the BCO might incur extra costs and expenses through higher freight with other carriers. The BCO may be eligible to claim against the carrier for this per the contract.另一方面,如果VOCC不能为BCO提供运输货物所需的空间,BCO可能会因为与其他承运人的运费增加而产生额外的成本和费用。根据合同,BCO可能有资格就此向承运人索赔。

But a service contract based on an MQC may not be the best solution for all parties. In a few cases, BCOs may be the primary beneficiaries of such agreements.但是,基于MQC的服务合同不一定是所有各方的最佳解决方案。在少数情况下,BCO可能是这种协议的主要受益者。

When spot rates in the market go up, the BCO may ship at lower contracted rates based on the agreement with the carrier, which also guarantees space on the ship for the BCO.当市场上的现货价格上涨时,BCO可以根据与承运人的协议以较低的合同价格发货,这也保证了BCO在船上的空间。

On the other side, when spot rates go down, shippers may use the lower spot rates because, well, truth to be told, carriers might not seek legal recourse because of their dependence on these volume customers.另一方面,当即期费率下降时,托运人可能会使用较低的即期费率,因为,说实话,承运人可能不会因为依赖这些大客户而寻求法律追索。

According to industry sources, carriers have never been able to claim charges from a BCO for failing to fulfill a minimum quantity commitment because of the competitive nature of this business.据业内人士透露,承运人从未因未能履行最低数量承诺而向BCO索取费用,因为这一业务具有竞争性。

Whether in the future, these penalties may be enforceable in one way or the other remains to be seen.未来,这些处罚是否可以以某种方式强制执行,还有待观察。

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