Claim No.3 of incurred transportation cost increase due to the 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 : Claim No.3 of incurred transportation cost increase due to the KSA customs regulations
Dear Sir,
As previously communicated in our Email dated 16th April xxx and in reference to our letters of Claim ref: xxx dated 13 May xxxx & ref: xxx dated 9June xxxx and due to the continuing closure of the KSA border to trailers and driver from the UAE resulting from the KSA customs regulations (attachment #1), we were unable to deliver our pods using the regular/standard transportation with UAE companies.
In addition to that the previously involved Saudi Transport Company (FTE logistics) who dispatched the first 8 shipments (24 pods) was unable to provide anymore trailers since 21st May as per the Email attached. (Attachment #2)
For that and in order to avoid any delay in deliveries, we have involved 3 new companies (in coordination with your team who supported us with contact details) at different inflated rates from FTE Logistics and the standard cost and these companies are providing trailers depending on availabilities.
- xxx Gulf Trans Cargo & Clearing EST provided 18 meter trailers for a rate of AED xxx/trailer
- xxx Overseas & ADSO LLC provided 12 meter trailers for a rate of AED xxx/trailer
In total 12 deliveries consisting of a total of 48 pods have reached to your Yard from these 3 new transport companies. We have attached for your reference the delivery notes of these 12 deliveries (Attachment #3) and their invoices/quotations (Attachment #4).
The cost increase is as follows:
| Description | Trailer Type | Unit Rate (AED) | Rate/Pod (AED) | No. of pods | No. of Trailers | Total Amount(AED) |
| Transportation Cost (Standard) | 12 meter | xxxx | xxx | 48 | 16 | (xxx) |
| Transportation Cost (Special as per COVID -19 requirement) –SUWAIDI Gulf Transport | 18 meter | xxxx | xxx | 30 | 6 | xxx |
| Transportation Cost (Special as per COVID -19 requirement) – Prime Overseas & ADSO LLC | 12 meter | xxxx | xxx | 18 | 6 | xxx |
| Additional Cost incurred for deliveries 9 to 20 (48 pods)à | xxx | |||||
| Previous Cost incurred for deliveries 1 to 8 (24 pods)à | xxx | |||||
| =(1) +(2) Total Cost incurred for the first 20 deliveries (72 pods)à | xxx | |||||
You are kindly requested to approve this total cost claim of AED xxx which includes our previous claims at urgent basis to avoid any disruption in the pods delivery process.
Note that there are 19 additional trailers that have left our factory as of this date dispatching a total of 57 pods and the respective cost claim will be submitted once the pods reach to your yard.
Yours faithfully,
On behalf of xxx LLC
xxx
project Manager