Common use of Overview of Agreement Authority Clause in Contracts

Overview of Agreement Authority. 5.1 The parties, or any of them, are authorized, but not required, to meet, exchange and discuss and reach consensus or agreement upon uniform or differential transportation rates, charges, classifications, rules, service items including arranging or not arranging inland transport, freight compensation, credit and per diem terms and conditions, rates and terms of service contracts, practices and any other term or condition relating without limitation to any aspect of ocean transportation or common carrier in the Trade, whether or not such rates, charges, classifications, etc. are required to be included in a or a contract. Matters subject to this authority include, but are not limited to, port-to-port rates, overland rates, volume rates, port area rates, through rates, interior point intermodal rates and minilandbridge rates for service in the Trade. The parties are not authorized to publish a Pacific Islands Discussion Agreement FMC Agreement No. 000-000000-000 Original Page No. 3 common tariff. The parties shall have no obligation to adhere, other than voluntarily, to any consensus or agreement reached under the authority of this Article 5.1. If any party shall decide not to adhere to any such consensus or agreement, it shall endeavor to promptly notify each other party of such decision. 5.2 The parties, or any of them, are authorized to meet, exchange information, and to discuss, negotiate and agree upon the formulation of any lawful agreement permitting the rationalization of service, equipment or capacity in all or any part of the Trade, by joint service, or otherwise; provided that no such agreement may become effective until all governmental conditions required to be fulfilled prior to its effectiveness have been fulfilled. 5.3 The parties, or any of them, are authorized to charter space on their respective vessels in the Trade each other at such rates as may be agreed to from time to time by a two-thirds vote of all parties. Other terms and conditions of such space charter arrangements shall be determined by the parties involved, unless two thirds of the parties vote to establish such terms and conditions, in which case they shall govern any such arrangements. The parties may also exchange, interchange and lease empty containers, chassis and other like equipment among themselves, at rates, terms and conditions as may be agreed to by the parties involved, unless two thirds of the parties vote to establish such terms and conditions, in which case they shall govern such arrangements. Provided, however, that nothing in this Agreement shall be construed to prohibit any party or parties from chartering space or exchanging equipment among themselves or with other parties under rates, terms, and conditions established pursuant to the Shipping Act of 1984, even if such rates, terms and conditions are different from those established pursuant to this Article 5.3. A maximum of six vessels, each with a capacity of up to 1200 shall be utilized under this Agreement. 5.4 In furtherance of the foregoing, parties may meet together; may adopt administrative rules (including procedures for the conduct of meetings and the sharing of expenses incurred hereunder); may appoint committees with such authority as the parties shall delegate to them; may retain consultants or other third parties, may compile and . ,, . , . . . , , , , , , . , , , , . Pacific Islands Discussion Agreement FMC Agreement No. 000-000000-000 Substitute First Revised Page No. 4 exchange information relating to trade conditions, costs or revenues of the parties of other persons, or any other matter pertaining to the Trade; and may meet with shippers, shipper groups or other persons. Action under this Agreement (includingadoption of any modification to this Agreement) may be taken at any meeting or by written or oral approval, but no modification of this Agreement may be adopted unless approval by the parties hereto. 5.5 The parties are authorized to discuss and agree upon voluntary guidelines relating to the terms and procedures of their individual service contracts. Any such guidelines shall explicitly state the right of the parties to not follow the guidelines. Any such guidelines shall be confidentially submitted to the Commission.