Industry News
From The Cargo Letter


Air & Ocean Freight Forwarder - Customs Broker News
15 October 1996

Good Monday Tuesday from our Observation Deck...... overlooking the officially designated "Cargo City" area and....... Runway 25-Right at Los Angeles International Airport. Often we bring you news of recent cargo vessel mishaps.........but in recent weeks they are too numerous to list. Encourage your customers to buy marine cargo insurance.

In Breaking News: Masked gunmen storm the U.S. President's Air Force One in wild airport runway chase ! ............... over & over & over again on 9 & 10 & 11 Oct 1996.......with camera trucks in tow ! It's just another day in our Observation Deck Conference Room at "Port Hollywood" .......aka L.A. Int'l Airport! Many of YOU have taken advantage of our courtesy conference facilities and discount lodging at the LAX Sheraton Gateway Hotel.....near your own LA offices. For arrangements contact The Cargo Letter.

Contribute your knowledge & e-mail to The Cargo Letter. McD

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INDEX to The Cargo Letter:

  1. Our Top Story:
  2. TAIWAN CELEBRATES THEIR 85TH NATIONAL DAY OUR "A" Section: FF World Trade, Financial & Inland News
  3. Overweight Container Rules To Take Effect
  4. Freight Forwarder Trade Briefs
    OUR "B" Section: FF World Air News
  5. Boeing Issues 20 Year Air Cargo Report
  6. FF World Air Briefs
    OUR "C" Section: FF World Ocean News
  7. FF World Ocean Briefs
    OUR "D" Section: FF in Cyberspace
  8. Virtual Reality Tour of M/V Nedlloyd Hong Kong


Our Top Story:


--- by Warren S. Levine, for The Cargo Letter

October 10 -- In a speech given in the rain today, Taiwan President Lee Teng-Hui addressed a crowd which included delegations from 24 countries on The Republic of China's 85th National Day.

Lee called for increased dialogue between Taipei and Beijing, but said, "Nonetheless, the Chinese communist authorities remain unable to set aside their prejudices and face the fact that both sides co-exist, thus preventing cross-straits relations from moving ahead.

"We sincerely hope that the Peking authorities can get in line with world trends, maintain good will ... ensure the security and well-being of people on both sides of the straits, and promote Asian-Pacific regional prosperity and world peace. This would genuinely launch a new era when all Chinese could hold their heads high!"

Beijing responded via Foreign Ministry Spokesman Shen Guofang, who asserted to the press that "The Chinese (communist) government represents all of China...."

In Hong Kong Thursday night, a group of Taiwanese and Taiwan supporters placed a 15-by-30-foot ROC flag atop Tai Mo Shan, Hong Kong's highest mountain, in defiance of the colony's official wishes.

An organizer of the celebration said, "We believe this is the last time we can publicly display Taiwan's flag in Hong Kong before 1997 (when the territory reverts to Mainland control)."

Two Taiwan flags were reportedly torn down Thursday on Nathan Road, in an incident which police were said to have been investigating.

In Manila, newspapers heralded Taiwan's economic and political success even though the government officially recognizes Beijing and not Taipei.


OUR "A" Section: FF World Trade, Financial & Inland News

2. Overweight Container Rules To Take Effect

Los Angeles -- Four years after its inception both houses of the U.S. Congress have passed the Overweight Container legislation. If President Clinton signs the act into law this October, as expected, implementation is mandated to occur six months April 1997. Major changes to the Overweight Container Rules include 29,000 lbs. as the jurisdictional threshold, not 10,000 lbs. as under the prior version.

It comes as good news that forwarders & brokers will be exempt from the new regulations.............unless YOU do the loading. It is the loading party who will be responsible for 1) weight and 2) contents.

If the motor carrier is fined for an overweight container, it will have the right to seek indemnity (reimbursement) from the party who is ultimately responsible. In order to enforce these rights, the motor carrier shall have a lien against the freight for ALL CHARGES INCURRED........ including the fine and the truckers attorney fees.

While any weight notation on the shipping docs will suffice, the motor carrier may presume an ability to handle the load if the weight is shown at less than 29,000 lbs. Both as good practice and in order to avoid liability involvement, forwarders & CHBs issuing a D.O. should pass on the ocean bill to the motor carrier to show the weight. We unfortunately see the prospect for many new lawsuits with these new rules. Protect your business.

3. Freight Forwarder/CHB Trade Briefs


OUR "B" Section: FF World Air News

4. Boeing Issues 20 Year Air Cargo Report

SEATTLE, Oct. 10 -- according to Boeing's 1996 "World Air Cargo Forecast", the future of air cargo is strong, with growth expected to out pace passenger traffic and the world's freighter fleet doubling in size over the next 20 years.

The Boeing Commercial Airplane Group report coincides with news from two major Boeing customers: 1) UPS has taken delivery of its 10th Boeing 767 Freighter......UPS was customer #1 for the 767 Freighter, putting the first all-cargo 767 into service Oct. 16, 1995, and 2) Luxembourg's Cargolux International Airlines........first ever operator of the Boeing 747-400 Freighter.........announced it will take delivery of its 4th 747-400 Freighter one year early in 1997. The 747-400F can carry up to 124 tons of cargo over more than 4,400 miles with the lowest operating costs per ton-mile and according to Cargolux is "the most economical freighter for long range markets and it has enabled us to eliminate technical stops on many routes."

Boeing notes that air-cargo revenues account for an average 16 % of total airline revenues, with some carriers deriving more than 30% of their revenues from cargo service.

In addition to projecting an annual 6.6 % growth rate in air cargo traffic over the next 20 years, as compared to 5.1 % for passenger traffic, Boeing expects a need for more than 2,000 freighters during the same time span to accommodate traffic growth and replace aging aircraft. That would increase the world's freighter fleet from 1995's year-end total of 1,219 freighters to 2,261 all-cargo aircraft by the year 2015. The forecast identifies the biggest increase in large-capacity freighters -- 767 and 747 size -- with this 50-ton-plus size accounting for 600 additional airplanes. This explains the recent United decision to convert several of its DC-10s to dedicated freighters for the Pacific trade.

Boeing sees the fastest growing cargo market within Asia, where cargo traffic is expected to grow by 9 % for each of the next 20 years. Other top growth areas and their annual growth rate projections are: Asia to North America at 8 %, Europe to Asia at 7.4 % and Europe to North America at 7 %.

A major Boeing cited trend for the next 20 years is the expected increase in international "express" service, mirroring the tremendous growth pattern of U.S. express service from 1975 to date. "We see that same type of movement in the international market, with projections for 18% annual growth," said Boeing V.P. Bruce Dennis. "By the year 2015, we believe express service could account for almost 40% of the total international cargo business." In 1995, international air-express service accounted for 5% of the total market, representing an increase of more than 22% from its 1994 level.

Boeing's wide-body 747 & 767 freighters join an all-cargo version of the 757 and what's called a "green" 737, which comes without an interior and can be modified for freighter use by outside firms. The company's Modification Responsibility Center at Wichita, KS., is capable of modifying 747-100, -200 & -300 models into freighters in as little as three months. Since 1972, Boeing Wichita has modified 72 Boeing 747s for freighter use, a further indication of our industry's focus on cargo. Two of Japan's ANA 747-200s are currently being converted.

5. FF World Air Briefs


OUR "C" Section: FF World Ocean News

6. FF World Ocean Briefs


OUR "D" Section: FF in Cyberspace

7. Virtual Reality Tour of M/V Nedlloyd Hong Kong

Treat your staff to a first hand look at cargo handling aboard a modern container vessel in full-panoramic Virtual Reality Quicktime! From the bridge to the poop, just visit...... the Nedlloyd home page.

Note: The site allows you to download special software to enhance the experience.

Here more featured internet sites from The Cargo Letter.....

Aviation Employment Listing (companies hiring)

Code of Federal Regulations (Search CFR by Keyword!)

Embassies Of The World (Index & search engine)

FedEx interNetShip (Next Version: point, click & ship)

Lufthansa German Arlines (AWB # cargo tracking) [an error occurred while processing this directive]