Chapter 12. Logistics

For passenger short-term air charters, only Air Operator Vendor Registration vendors are eligible to participate in solicitation exercises.

A separate vendor list is maintained for cargo AOC holders. These carriers, plus brokers and freight forwarders, are invited to participate in solicitations for cargo air charter services.

A standing REOI for both air passenger and cargo requirements should be maintained publicly (e.g. on the PD website and UNGM).

12.1.4 Long-Term Air Charter

Field missions conduct day-to-day air operations using a wide range of fixed-wing and rotary-wing aircraft operated by civil air operators under commercial contracts. These commercially chartered planes and helicopters (complemented by military aircraft under Letters of Assist) make up an extensive long-term fleet of aircraft continuously supporting UN operations worldwide.

12.1.5 Military Aviation

In achieving their mandates, UN peacekeeping missions may require military aviation support, provided by Troop Contributing Countries (TCCs) under LOAs. Military aviation units include light-armed helicopters, light, medium, or heavy utility helicopters, as well as attack helicopters and tactical transport fixed-wing aircraft.

LOA terms and conditions shall be based on a reasonable and justifiable reimbursement for the use of the military aircraft, to be agreed upon between the UN and the TCC, which are intended to cover the direct operating costs (i.e., excluding capital investment or expenses that would be incurred regardless of the contribution to UN peacekeeping). PD shall always be involved in negotiating the financial terms and conditions of LOAs.

Aviation LOA reimbursement is normally on a per-flight-hour basis with no minimum guaranteed hours. As an exception, attack helicopters are reimbursed on a monthly rental basis, due to the unique role of such aircraft whose availability alone serves as deterrence and show of force and, as such, benefits UN peacekeeping operations with specialized military mandates. Aviation LOAs may include ancillary reimbursement items to cover other costs incurred by the TCC that are not covered by the related Memorandum of Understanding (MOU).

12.2 Freight Forwarding & Third-Party Logistics (3PL)

The UN Secretariat procures a wide range of freight forwarding services in support of UN operations worldwide. These services include, inter alia, multimodal freight of United Nations Owned Equipment (UNOE) and Contingent Owned Equipment (COE). Generally, shipments are conducted via multimodal sea/surface freight, airfreight, or air cargo charters.

Multimodal Sea/Surface freight forwarding services are further defined as the movement of UNOE or COE from Origin (Door or Port) to Destination (Door or Port) via sea/surface freight. This may include full vessel charter, part cargo, liner service, etc., as well as inland transportation, inland ground waterway transportation, etc., as needed.

Air Cargo Charters are further defined as the movement of UNOE or COE from Origin to Destination via full aircraft charter. 

Airfreight is defined as follows as the booking of UNOE freight on commercial or freighter aircraft.

12.3 Strategic Movements – Contingent Owned Equipment (COE)

COE refers to the actual equipment provided by the troop-contributing countries to carry out their day- to-day peacekeeping operations. It includes vehicles (trucks, trailers, armored vehicles, etc.), dangerous cargo of various classes, generators, road-making equipment, drilling equipment, etc. The nature and configuration of the COE dictate the type of vessel required. Most ships are designed to carry specific cargo and to load and unload in a particular way. For example, a Roll-On/Roll-Off is required to transport large numbers of vehicles. In addition, due to the military nature of COE and its political considerations, direct sailing without transshipment is usually required.

The COE Manual and the Movement Control Manual regulate requirements for Strategic Movements of COE and passengers. Strategic Movements include shipments of COE by surface transport (road, sea, and river) and air (short-term air charter), plus short-term transportation of passengers by air and road. Requirements for Strategic Movements are generally time-sensitive and are based on the tempo of the peacekeeping operations.

RFPs are typically used for the procurement of movement services for COE. As process turnaround times (and validities of vendors’ proposals) can be as short as 24 hours, technical and financial proposals are opened simultaneously, as an exception to the Opening procedures for RFPs. In addition, the Director, PD has special approval authority for these procurement cases.

Movement of COE and passengers are critical strategic components necessary for the successful execution of UN Peacekeeping operations, as both operations entail the transportation of peacekeepers (troops) and their equipment into the theatre of operations.

12.4 Strategic Movements – UN Owned Equipment (UNOE)

UNOE is defined as commercial goods that are either purchased from a UN commodity vendor for delivery to a UN entity or goods that are already in the possession of the UN (e.g., mission-to-mission cargo transfers). The Incoterm indicated in the commodity Purchase Order shall guide the procurement of freight services for UNOE commodities (see Chapter 12.5, below).

Procurement of freight-forwarding services for shipment of UNOE can be undertaken either on an individual shipment basis or through the establishment of non-exclusive freight forwarding systems contracts with a select number of freight forwarders.

12.5 Incoterms

International Commercial Terms (Incoterms) are prepared by the International Chamber of Commerce and are standardized, widely recognized trade terms to be included, by agreement of the parties, in contracts for the sale of goods. Their objective is to provide standard contractual provisions for contracts for the sale of goods by clarifying the costs, risks, and responsibilities of the parties to the contract, particularly in relation to the shipment and delivery of the goods from sellers to buyers. Incoterms do not apply to the contracts of carriage (e.g freight forwarding) but only to the delivery of goods under a sales contract.

12.6 Global Cargo Insurance

The UN Secretariat maintains a global cargo insurance policy that covers organizational shipments of UNOE and COE up to the limits set forth in the policy. For information regarding coverage limitations, PD’s Freight Forwarding experts can be consulted at forwarding@un.org.

Due to the existence of this global cargo insurance policy, it is generally not necessary to purchase additional insurance from a freight forwarder, except in the rare instances whereby the value of the cargo exceeds the coverage outlined in the global cargo insurance policy. As such, solicitations for freight forwarding services shall not request additional insurance. However, any UN-appointed freight forwarder must maintain their own liability insurance to cover losses/damages due to their negligence. A copy of the insurance policy/certificate to cover the loss and/or damage of the contracted cargo in accordance with Clause 6 of the UNGCC shall be kept in the case file by the UN entity ordering the freight forwarding services.

In the event that an insurance claim is necessary, all relevant shipping documentation (airway bill, bill of lading, packing list, UN freight, and commodity purchase orders, etc.) shall be maintained in the case file by the UN entity ordering the freight forwarding services. Procedures for Filing Cargo Claims for Organizational Shipments are attached in Annex 21.