Logistics – Performance Bond

Performance bond is an amount of money, set aside in the bank, per truck totaling the value of product which the truck is capable of lifting.

The bond exists to provide additional assurance for the product transferred.

Below are the guidelines for performance bond:

1) The transporter must present a Performance Bond from a reputable Bank to be approved by our treasury unit.

2) Performance Bond from an Insurance Company is not allowed.

3) The transporter must present a Performance Bond equal to the value of the product transferred. The value of the product is the multiple of the quantity of product transferred and its cost per litre.

4) The liability under the Bond shall be limited to the amount stated therein.

5) The condition of the Bond should be such that the bank will undertake to pay upon our first written demand declaring the transporter to be in default under the transportation contract and without cavil or argument, any sum or sums within the limits of the amount stated as aforesaid without our needing to prove or show grounds for the sum specified therein.

6) The Bond shall be valid for at least a 12 months period, renewable annually by arrangement.