For the first time..........Good Friday Morning from our new offices & "The Observation Deck".....overlooking Runway 25-Right and air cargo operations at Los Angeles International Airport! After 17 years, we've got a new home!!
It's time to celebrate EDITION No. 300 of The Cargo Letter.........our new LAX home..........and World Trade Week!!
What began years ago as an occasional, paper, client newsletter........The Cargo Letter has become an accredited forwarding industry periodical read by over 950 companies & individuals world-wide! Forwarder/Brokers from Iceland to Bolivia to the P.R.C. subscribe to The Cargo Letter. Our other courtesy services to the forwarder/broker industry include The Cargo Letter-Interpool Trade & Transportation International Resource site on the World Wide Web which is relied upon 24 hours a day for industry research & communications by over 430 users each day from around the world. Our recent on-scene China reports from Sr. Correspondent Warren Levine gained international acclaim and were reported by the international press! More, in the last twelve months alone, The Cargo Letter has provided courtesy assistance, consultation or expert witness service in numerous lawsuits across the country where FF/CHB rights were involved. All of this........for FREE.
We're very proud of these accomplishments, but they come at a tremendous cost to us each year. For this reason we say THANK YOU to the many volunteers whose contributions of information assist this effort. Thanks also to continuing assistance from our friends at Fritz Co's, Circle Int'l, Panalpina, Expeditors, Intercargo Insurance Co. and so many others who appreciate the value of a voice for the Forwarder/Broker. Special thanks to our computer whiz....Webmaster Ed Graham of Interpool-IPX......our valued corporate sponsor! Indeed, your e-mail contributions are the KEY to this effort. Please keep the e-mail coming ............all "info tips" and company news are important! Indeed, only YOU can keep The Cargo Letter fresh and topical.
While industry news plays an important role, today we return to our more modest roots by celebrating Edition No. 300 with the original premise of The Cargo Letter......... Forwarder/Broker operational support. PLEASE report back to us on the value of this information for YOU and YOUR staff. E-mail allows you to respond/contribute with ease......do it!
OUR "A" Section: Forwarder/Broker News
by Warren S. Levine, for The Cargo Letter
Denver-30 May 1996-In what has already been a difficult shipping year, the Clinton Administration this month has taken steps to further muddy the waters of international trade by, on the one hand, publishing a list of Chinese goods on which US$3 billion in punitive duties will be imposed, and on the other renewing Most Favored Nation status for China for another year.
In a statement issued on May 15, Acting U.S. Trade Representative Charlene Barshefsky announced a list of goods on which these duties will be imposed, "...as a result of China's failure to satisfactorily implement the 1995 Intellectual Property Rights Agreement." She called China "the largest pirate of U.S. intellectual property."
The list of goods includes surgical and medical gloves; woodenware; stationery; jewelry; iron and steel kitchen, cooking and tableware; electrical heating apparatus and appliances; telephones, accessories and parts; fax machines; cellular phones; bicycles; and a wide range of sporting and outdoor goods, in addition to 26 quota categories of textile products.
The final list of commodities will be revised after a period of public comment and opportunity for the Chinese to cave in, which expires on June 17. The original US$3 billion will be reduced to US$2 billion at that time. The threatened sanctions, if they are indeed followed up on, will affect less than 2% of U.S. imports from China. In 1995, China exported US$45.6 billion in goods to the United States.
Beijing is clearly not adhering to its pledge last year to shut down factories which produce pirated software, music and video CDs, making public only a few factory closures and merchandise seizures over the past year.
When this reporter visited China in March it was easy to obtain rentals of uncensored American movies such as "Basic Instinct" and "Fatal Attraction," which would be considered pornographic by the Chinese government, except they were black-market versions, smuggled into China, copied and easily available to the public. In the Tsim Sha Tsui section of Hong Kong, virtually every street corner is crammed with tables of pirated music CDs, brought down from Guangdong Province.
Earlier this month, Secretary of State Warren Christopher refused to impose sanctions on China for shipping nuclear-related materials to Pakistan. The reason for his leniency was that he believed the Chinese leadership might not have been aware of the shipment.
Christopher's definition of "leadership" was not specified, but it is widely believed that the titular leader of the People's Republic of China, Deng Xiaoping, is not fully functional. Various factions are jockeying for control in anticipation of Deng's demise. That someone in a position of power in China would be aware of the international sale of nuclear-related material is almost assured.
Still, last Monday President Clinton renewed China's Most-Favored Nation status for another year, stating, "We cannot walk backwards into the future. We must not seek to isolate ourselves from China." Congress has 60 days in which to attempt to overturn Clinton's MFN extension.
Domestic critics of Clinton's policy towards China have used words like "schizophrenic," "wishy-washy," "random," and "incoherent." Asians are likewise confused by Washington's hot-and-cold approach to relations with Beijing.
In defending Clinton's policy towards China, White House spokesman Mike McCurry described it as "...a multi-dimensional relationship that doesn't fit into a black-and-white box. We're not doing one thing and then another."
Our Top Story
Relocation of The Cargo Letter to Runway 25-Right at LAX will mean more than just a change of address for 950 world-wide members who subscribe to the Forwarder/Broker newsletter. This move is intended to place both The Cargo Letter and transport attorneys Countryman & McDaniel in the very center of cargo issues on the West Coast. This move is intended to provide a HOME for traveling Forwarder/Brokers and their customers.
For all The Cargo Letter subscribers we now announce COURTESY services for local and traveling Forwarders & Brokers which will include:
LAX is a crossroads of the world...........cross it with The Cargo Letter! We have moved to LAX to serve the Forwarder/Broker Industry...............................McD
OUR "B" Section: The Forwarder/Broker World
by Michael S. McDaniel, Esq. for The Cargo Letter
We first ran this "Cargo Letter Top 10" list in a July 1994 edition of The Cargo Letter. Since then these FF/CHB liability tips have become a standard training aid in many U.S. companies. Here is the 1996 version. Please send us your own comments and liability tips!
by Charles Veigel, Esq. for The Cargo Letter with Michael McDaniel Esq.
Seattle - 29 May '96 - Marine cargo insurance is a contract where the insurance company [known as the "underwriter"], undertakes for compensation the risk of loss to the insured [usually the shipper/CGNEE]. Marine cargo insurance is customarily purchased by shippers because ocean/air carriers/indirect air carriers/NVOCCs/consolidators [i.e., issuers of bills of lading] are not held to the responsibility standard of an actual insurer of goods. Carriers frequently invoke their bill of lading limitation of liability provisions (under COGSA, Warsaw, etc) and other defenses to minimize risk of responsibility for damage and loss claims.......which makes the marine cargo insurance necessary. Usually the insurance is arranged through a freight forwarder as part of the service provided. In an "all risk" marine cargo insurance policy, recovery is permissible for all losses not resulting from fraud or misconduct unless there is a specific exclusion. Shippers are often taken by surprise upon learning that their cargo insurance may not cover the incident causing the loss or damage.
Shippers must be aware of the exclusions or limiting clauses in marine cargo insurance policies. Cargo insurance policies always exclude risk of war, men of war, enemies, rebellion, piracy, seizure, arrest, restraint, confiscation, etc. Specific coverage for these special risks can be obtained through special war risk insurance.
Any loss resulting from strikes, lockouts, labor disturbances, riots & civil commotion is frequently excluded or limited. Likewise, the policies usually exclude losses due to delay. Shippers must request "delay" coverage expressly in writing if they are transporting time sensitive goods. Air/Ocean freight forwarders should instruct their customers on this important point.
Improper packaging is another classic exclusion. It is helpful for shippers to take photographs and obtain supporting documentation such as a pre-shipment survey to confirm proper packaging. Also excluded are losses caused by the inherent vice of the goods and sometime even for mysterious disappearance.
Shippers & air/ocean forwarders should be aware of the IMPORTANT duty to supply proof in claiming loss or damage under their marine cargo insurance. This is to say that the claimant/insured has certain obligations which are peculiar to marine insurance. The cargo claimant usually must prove each of the following to recover on a claim:
After the claimant supplies required proof, the underwriter has the burden of proving that damage occurred from an excluded cause. Proof that the goods were in good order upon shipment is an area in which many shippers fail to properly protect themselves. Often a shipment is rushed to the port of loading and precautions are not taken by the shipper to protect its rights. In any event, freight forwarders should instruct their clients to carefully read the Marine Cargo Insurance Certificates and keep proper documentation for all shipments. [Charles Veigel is a partner with the maritime law firm of Brusanowski & Veigel, Seattle]
OUR "C" Section: FF in Cyberspace
Air Forwarders Association
Graphic Index to The Flags of all Nations
http://www.wave.net/upg/immigration/flags.html [an error occurred while processing this directive]