RE: Cost impact on transportation due to KSA customs regulations.
Our Ref: xxx
Date:
To
xxx Contracting LLC
P. O. Box xxx
Dubai, U.A.E.
Attention : Mr. xxx, Group Procurement Manager
Project : Design and Build of Coastal Village Residential Building.
Subject : RE: Cost impact on transportation due to KSA customs regulations.
Dear Sir,
In response to your letter Ref: xxx dated 2-May-xxx, we would like to inform the following:
- M/s xxx (Contractor Name) is already exerting all the effort to remain on track with the project schedule. For that and due to KSA customs regulations which none of the UAE transport companies was able to comply with as we previously informed in our letter ref: xxx dated 21-April-xxx, we involved a Saudi transport company (FTE Logistics) at inflated rates for dispatching the pods and avoid any delay in deliveries.
- We have so far dispatched two trailers with FTE Logistics which we expect to be arriving to site as scheduled.
- We are monitoring closely any update from the KSA customs regulations that will enable us to use the standard transportation and avoid such additional cost but as of today the customs regulations in fight of Covid-19 are still implemented as per the attached latest communications with supply chain.
Along with copies of our detailed communications with our transport companies, we are attaching the current KSA customs regulations for your reference.
At the same time, we again urge you to approve within two days the rate increase during this period as requested in our letter ref: xxx dated 26-April-xxx to allow us to maintain deliveries with FTE Logistics until such time as the current custom regulations are waived and we are able to use standard transportation at normal rates.
Yours faithfully,
On behalf of xxx LLC
xxx
project Manager