=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+
Law
Offices of Countryman & McDaniel
THE CARGO L
Air & Ocean Logistics - Customs Broker News
=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+
Good Wednesday Evening from our Observation Deck......overlooking
the officially designated "
The Cargo Letter is now perfectly designed to be enjoyed
on your iPad. Access all our internet links directly
from your device.
Here
is what happened in our industry during the Month of April 2014. There was no The Cargo Letter for March as we travdeled
to
To help you find what you need --
Contribute your knowledge, stories &
company information.......by e-mail to The Cargo Letter. We strive to bring you useful
information which is timely & topical. Be sure to visit our
website.......http://cargolaw.
Archive of The Cargo Letter ....... www.cargolaw.com/cl-archives.
Michael S. McDaniel,
Editor, Countryman & McDaniel, forwarder/broker, hull & machinery
attorneys at LAX.
I
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs ______________
2.
3. Freight Forwarder World Air Briefs ____________
4. FF World Ocean Briefs _____________________
5.
**Back By Popular Demand**
OUR "D" Section: FF in Cyberspace***
6. The Cargo Letter "Cyber Ports of Call" _________
OUR "E" Section: The Forwarder/Broker World***
7. New
==============================
******************************
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs _____________
***Modest Cross-Border Trade Increase ...... as the truck mode carried
more U.S.-NAFTA trade in February 2014 than in February 2013, according to the TransBorder freight data released today by the U.S. Dept.
of Transportation's Bureau of Transportation Statistics (BTS). Trade using
truck grew the most of any mode, 2.6%, as the value of overall U.S. trade with
its North American Free Trade Agreement (NAFTA) partners Canada and Mexico rose
1.3% from year to year. While trade by truck rose 2.6%, trade
using other modes declined 0.6% from year to year. Air declined 3.1%,
rail declined 2.5% and vessel declined 0.3%. ruck carries nearly three-fifths of U.S.-NAFTA trade
and is the most heavily utilized mode for moving goods to and from both
U.S.-NAFTA partners. Truck carried 59.8% of the US$89.6Bn of U.S.-NAFTA trade
in February 2014, accounting for US$27.8Bn of exports and US$25.8Bn of imports.
The value of freight carried by rail decreased from year to year, but rail was
still the second largest mode, at 14.7%, followed by vessel at 9.6% and air at
3.5%.
***Obama Administration Fails To Acheive Trade Deal With Japan ...... as talks between the
leaders of the U.S. and Japan in Tokyo have failed to narrow the gap in
on-going trade talks concerning the Trans-Pacific Partnership (TPP) free-trade
initiative for 12 economies, as significant differences remain on key issues.
The two sides, barring their leaders, were said to have been negotiating into
the night in an attempt to reach a deal before President Barack
Obama's departure on 25 April. Prime Minister Shinzo Abe said in a news conference after the summit that
the two heads of state had instructed their chief trade negotiators, US Trade
Representative Michael Froman and Economy Minister
Akira Amari, to bridge the gap on a trade agreement
that is crucial to the TPP. Mr Abe said the two sides
wouldn't issue a joint statement until after the trade negotiators had
concluded their talks, sparking speculation that a deal was imminent because
such statements are commonly issued after summit meetings, reported The Wall
Street Journal.
***Japan &
Australia Announce New Trade Deal .......
as clinched a bilateral trade pact this month,
agreeing to slash import tariffs on a series of products, including beef,
dairy, and automobiles. The news has sparked questions over what impact the
deal might have on the pace - and outcome - of the 12-country Trans-Pacific
Partnership (TPP) negotiations, of which both countries are members. The
Economic Partnership Agreement (EPA) was announced during Australian Prime
Minister Tony Abbott's much-touted visit to
***China
Transport Growth Continues .......
as llatest figures posted by the China Federation of
Logistics and Purchasing (CFLP) show that the China's Logistics Prosperity
Index (LPI) climbed 1.1 percentage points to 53% in March compared to February,
indicating a positive trend of steady growth, reports Xinhua.
The business volume index in the month was up 0.3 percentage point from last
month to 55.8%, reflecting that logistics activities are becoming more active
after Chinese Spring Festival. Employee index and facility utilisation
rate index both increased. The former went up 2.3 to 50.1%, while the latter
increased 1.5 to 51.9%. Logistics service price index picked up 0.2 percentage
point to 52.7%, while the core business cost index slipped 0.3 to 58.5%, which
brought 0.3 percentage point gain in core business profit index to 52%.
***Made In The Ukraine ....... as on
Read The Directive
http://apps.cbp.gov/csms/
***More
Further Details From
www.treasury.gov/resource-
***
www.omnimoving.com/about/
***"Defered" Under Valuation Expense ......as on April 21, 2014, it was
announced that Otter Products LLC (operating as OtterBox)
has paid US$4.3M to settle a whistle-blower suit alleging that its import
practice violated the False Claims Act ("FCA") and the Tariff Act of
1930.1 OtterBox is a U.S. company which imports and
sells protective cases for phones, tablets and similar products. It allegedly
underpaid customs duties owed to the
www.otterbox.com
***Amazon's Last Mile ....... as it is in the process of
testing its own delivery network to help complete the last stage of delivery in
a package's trip from factory to buyer, the Wall Street Journal reports. The
e-commerce giant is using
***FMCSA Wants Higher Liability Coverage ...... as the current US$750,000
minimum liability insurance required to be held by carriers is too low, said
the Federal Motor Carrier Safety Administration last week, and the agency plans
to create a rule upping that minimum. In an agency report to Congress
released this week, FMCSA concludes the US$750,000 liability limit set in 1985
does not "adequately cover catastrophic crashes" today, due chiefly
to inflation and increased medical costs, the agency says. The minimum
required insurance would be US$1.62M, FMCSA says, but if the number had kept up
with the medical consumer price index, which measures the increase annually in
medical costs, carriers would be required to have US$3.18M in liability
insurance.
***Union Pacific
Railroad's Steam Giant .......
as it began the final phase of the momentous move of Big Boy No. 4014 to Union
Pacific's Heritage Fleet Steam Operations headquarters in
Union Pacific Steam & Big Boy Schedule
www.up.com/aboutup/special_
Policy Statement for Taking Pictures/Videos of Union Pacific Trains or
Structures (interesting)
www.uprr.com/she/policy/index.
***FMCSA Shut Down ......
as the Federal Motor Carrier Safety Administration declared a Texas trucking
company an imminent hazard to public safety and revoked the operating authority
of two Massachusetts-based bus companies. The trucking company ordered shut
down by FMCSA is FTW Transport LLC of Forest Hill, Texas. Federal investigators
found that the company "failed to require its drivers to comply with
federal limitations on driving and on-duty requirements," according to a
news release announcing the shutdown.
What Happens If A FedEx Driver Forgets to Apply Parking Brake?
www.youtube.com/watch?v=
==============================
2.
**Canada's Pacific Railway Ltd. UP with a 17% higher first quarter net
income of US$230.34M.
**Delta Air Lines. UP with a 3.2% increase in first quarter
net profit year on year to US$213M, drawn on revenues of US$8.9Bn, up 5%
boosted by robust passenger growth, but first quarter cargo operating revenue
fell 9% year on year to $217 million, a decline attributed to weak yields and
volume.
**
**Landstar System. UP as 1st-quarter net income rose to
US$27.6M, or 61 cents per share, from US$26.7M, or 57 cents, a year ago.
**Old Dominion. UP as net income rose
to US$45.9M, or 53 cents a share, from US$40.6M, or 47 cents, a year ago.
**Swift Transportation Co. UP as 1st-quarter net income fell 59% to
US$12.3M.
**Union Pacific (
**
==============================
******************************
3. Freight Forwarder World Air Briefs __________
***IATA
Calls For Global Aircraft Tracking .......
as it has called on the aviation industry to
"make a safe industry even safer" by developing a better way to track
aircraft following the disappearance of Malaysia Airlines flight MH370 March 8.
Speaking at the IATA OPS conference in Kuala Lumpur, IATA DG and CEO Tony Tyler
said governments and industry should focus on partnerships, data analysis and
runway safety. He also committed IATA to formulating a unified industry
position on global tracking of aircraft.
***Inmarsat PLC Wants To Avoid Mystery ...... as the satellite
communications company plans to offer basic tracking services free of charge to
airlines, its chairman said, in the strongest sign yet of the aerospace
industry's intentions to enhance monitoring abilities for commercial jets after
the disappearance of Malaysia Airlines Flight 370.
Learn More About Inmarsat
In Aviation Tracking
www.inmarsat.com/aviation/
***Why Is It
Taking So Long To Find MH370? ...........
from the Malaysian Chronicle
www.malaysia-chronicle.com/
***Why Are Americans Obsessed With Missing Flight MH370?
http://m.apnews.com/ap/db_
***Airports Council International (ACI) Cargo Update ...... as the worldwide association
of airports with 592 member airport authorities, reports air freight volumes at
the world's airports stayed positive for a fifth month in a row, with
February's throughput rising 2.6% year on year. The growth in air freight
traffic was primarily fuelled by strong recovery in
Learn More About The ACI
www.aci-na.org/
www.aci.aero/
***Licking The
Lithium Problem ....... as on April 12th, 2014, The I
***
***Boeing Ends Aircraft Construction For Long
Beach ....... as it
has brought forward the closure of its C-17 Globemaster
III production line in
Learn More About The C-17 Globemast III
www.boeing.com/boeing/defense-
ttp://en.wikipedia.org/wiki/
***Boeing Takes Private Transport To The MAX ...... as it announced on Apr. 2
the launch of the Boeing Business Jet (BBJ) MAX family of airplanes after
receiving the first order from an undisclosed customer. The order is for a
737-8 BBJ MAX, which is based on the 737-8 MAX and the newest business jet to
join the BBJ family. The 737-8 BBJ MAX will have a range of 6,325 nautical
miles (11,713 km), an increase of more than 800 nautical miles (1,482 km) over
the BBJ2. It will share the same cabin size with today's BBJ2, offering
customers a 19-foot (5.8 meter) longer cabin and three times the cargo space of
today's BBJ, while improving on its market-leading range capability and
maintaining the BBJ advantages of lower cabin altitude, unmatched reliability
and outstanding product support around the globe.
Read More About The BBJ
http://en.wikipedia.org/wiki/
***Stanford-IATA Aviation Strategy Program .........16-27 June at
http://aviation.stanford.edu/
***Volumes >>> Amsterdam Airport Schiphol volume ballooned by 7.3% in the first
quarter of 2014 compared to the same period in 2013, moving 392,990 tons
during the first quarter of 2014. >>>
***The Road To
Cargo Drones Begins ...... as
the first of six test sites that will perform unmanned aircraft systems (UAS)
research has begun operations, after the U.S. Federal Aviation Administration
(FAA) granted the North Dakota Department of Commerce authorization. The
Learn More About The Dragonflyer
www.draganfly.com/uav-
==============================
******************************
4. FF World Ocean Briefs
***So. Cal. Port
Stoppage Causes Minor Problems .......
as truck drivers at the
Learn More About TTSI
www.tts-i.com/
Read More About Justice for Port Truck Drivers
www.justice4ladrivers.net/
***Panama Canal
Woes Continue ....... as work
on the expansion has stopped again after the construction union Suntracs went on strike for an immediate 20% pay increase
while management held out for 20% over four years, reported Lloyd's List. The
canal expansion to be completed by the end of 2015 has already been set back
this year when work stopped for two weeks due to a dispute between the Panama
Canal Authority and the contractors over US$1.6Bn in cost overruns. Contractors
Grupo Unidos por el Canal said Suntrac's unionised workers' strike would result in delays in the
canal expansion's completion.
***The New Number Four ...... as
***Piracy Falls To 7 Year Low ...... as it is at the lowest levels
in first quarter since 2007 with 49 piracy incidents in which two vessels were
hijacked, 37 vessels boarded, five vessels fired upon and five attempted
attacks were reported. According to the latest International Maritime Bureau
(IMB) Piracy Report, 46 crewmembers were taken hostage and two kidnapped from
their vessel.
***Arming The Merchants Continues Key ..... as
piracy attempts off the coast of
***Oil
Hijacking In The Malacca .....
as armed pirates have hijacked an oil tanker near Port Kelang
in Malaysia, the first time so far north in the Malacca Strait, kidnapping
three Indonesian crew members, including the captain and chief engineer. Eight
Indonesian pirates in a fishing vessel boarded M/T Naniwa Maru 1 and pumped out three million litres of the 4.5 million litres
of diesel carried by the tanker into two waiting vessels, the Malaysian
Maritime Enforcement Agency said. "There is a possibility that the
abducted crew was involved in the hijack based on new leads and that their
personal documents, clothes and belongings were taken along with then,"
the agency said in a statement. The
***Shanghai
Scrapping ...... as COSCO
Group announced it has scrapped 16 vessels, made up of 12 containerships from
COSCON and four bulk carriers from COSCO Bulk Carriers, in the first quarter as
part of its fleet optimization plan. COSCO earlier announced plans to scrap a
total of 41 vessels for the year. Total price for selling the 16 vessels was
US$75M.
***Loss of M/V Sewol ....... as the 16 April South Korean ferry disaster, which has
left almost 300 people dead or unaccounted for, is expected to generate a total
loss of just over US$140M. The Insurance Insider newsletter has revealed. Each
passenger is covered for up to US$337,000. In addition to passenger liability
insurance, South Korean ferry companies are required to provide compulsory
travel insurance policies that are included in the price of the ticket. These
policies provide up to US$96,000 of cover for each passenger.
Read More In The Insurance Insider
http://tinyurl.com/
***Drewy Report Highlights Panamax
Surplus Problem ......... as
the continuous cascading of surplus Panamax vessels
into North-South trades is still contributing to over-capacity, and the problem
is likely to get worse when the Panama Canal's widened locks are opened at the
end of 2015. MSC's recently announced service between
Asia and West Africa deploying 10 ships averaging 4,000 teu
underlines a growing difficulty for North-South trades. Surplus Panamax vessels between 4,000 teu
and 4,999 teu are still keeping charter rates low,
making it easier for competing carriers to penetrate the markets more deeply,
regardless of need.. Only four of the ships deployed
in MSC's Africa Express service have so far been
identified, but as they are all chartered, the inference is that this is one of
the drivers behind it. If so, others are likely to follow, and the problem will
increase dramatically once the Panama Canal's enlarged locks are opened at the
end of 2015, when many more Panamax vessels will
become surplus to requirements. In this respect, the progressively delayed
expansion of the
Read The Drewry Report
http://ciw.drewry.co.uk/
***Approaching
Storm? ..... as U.S. West coast labor contract talks will begin between
the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) on May 12 over a
two-week period in order to negotiate a new contract effective July 1. Following
delays on contract talks between the PMA and ILWU, other interested parties such as the National Retail Federation has
recommended speeding up contract negotiations in order to produce a new
contract by end of June. Lloyd's List reported the Transpacific Stabilisation Agreement, a rate setting shipping
conference, wrote to the PMA to ask for talks to be brought forward. But this
scenario looks unlikely as moves to hold talks early in the past have failed to
speed up the process. In 2008 talks started in mid-March but were still not
concluded by the time the contract expired.
***The New Sealand ......
as a new report from the BlueWater Reporting team
suggests there is much more to Maersk's plan to
reintroduce the SeaLand brand name than simply as a vehicle
for marketing its intra-American services. "Maersk's
'SeaLand' plan to capture the Americas" reveals
the true scale of Maersk's existing penetration of
the Americas' container markets, highlighting the speed with which it is moving
to position itself with a total all-Americas strategy.The
SeaLand template is only a part of this, the report
suggests, in the run-up to the opening of a wider Panama Canal. A
two-tier service level for services from
Obtain The Report
www.bluewaterreporting.com/
***World War II Continues .......
as tjis month China's Supreme Court announced Mitsui
OSK Lines (MOL) has paid US$28.5M in fees and damages as well as US$385,000 in
legal costs to free its ship from a Shanghai Maritime Court seizure in a case
that dates back to 1937. The 226,434-dwt bulk carrier, M/V Baosteel
Emotion, has been seized in lieu of payment for two ships that were chartered
to a forerunner of the Japanese shipping giant in 1936 and disappeared in the
war that started a year later. The court also sparked a renewal of a campaign
to make
***David
Beckham Versus The Longshoremen .....
as disparate shipping interests, and a billionaire car
dealer, have started a campaign to preserve the
***West Coast
Rebounds ...... as container
traffic at the
***Throughput >>> Abu Dhabi Ports Company's (ADPC) Khalifa
Port throughput to reach 1.1 million TEU this year, a rise of 22% from 905,000
TEU in 2013, when traffic rose 17%. >>>
***This Month In U.S. Navy History
1854 - Sailors and Marines from sailing sloop, Plymouth,
protect U.S. citizens at Shanghai
1861 - Fort Sumter surrenders to Confederate forces
1950 - Unarmed Navy patrol aircraft shot down over Baltic Sea by USSR
1963 - During diving tests, USS Thresher lost with all hands (112 crew and 17
civilians) east of Cape Cod, MA
1989 - An explosion occurs in the Number Two 16" gun turret of the
battleship USS Iowa (BB-61). The explosion in the center gun
room kills 47 crewmen and severely damages the gun turret itself.
***Lost Container Crew Off Hawaii ....... as a male Japanese crewmember
was reported overboard from the container M/V Hercules Highway, 805 miles northeast of
==============================
5.
**Back By Popular Demand**
We're sorry, but there were so many sinkings,
explosions, pirate attacks, fires, cargo mishaps, battles on the water &
other disasters at sea that we do not have room to print even the highlights
this month. Many people lost their lives at sea this month!!
But you can read all this month's disaster news at our special Internet web
feature which provides full details of each event -- our Vessel Casualties & Pirate
Activity Database. Bookmark the site and visit every day! Updated twice daily.
www.cargolaw.com/gallery.html
See our new feature for
June 2008: "Too Little Runway - Too Much Plane"
www.cargolaw.com/
See our newest photo
feature "Singles Only" -
Transportation Disasters Told In A Single Photo!
www.cargolaw.com/
Daily Vessel Casualties ...... as we don't want you to miss the
excitement of our 24 hour reports of the dramatic events at sea each day --
stories of casualties & pirates --- almost none of which are carried on
your local news. Edited daily by Christoph
Wahner, Esq. of Countryman & McDaniel.
www.cargolaw.com/
NOTE: The
historic dangers of carriage by sea continue to be quite real. Shippers must be encouraged to purchase high quality marine cargo insurance from their freight forwarder or customs broker. It's dangerous out there.
==============================
******************************
OUR "D" Section: FF in Cyberspace***
6. The Cargo Letter "Cyber Ports Of Call"
Here are our suggested world wide web sites of the
week for your business, your information and your amusement..............
Cargo & Trade>>>>>>
A380 On Approach To SFO .....
control by joy stick & laptop!
www.wimp.com/approachlanding/
Awesome Vids by the Slow Mo Guys
www.youtube.com/user/
International Convention for Safe Containers
www.imo.org/Publications/
2014 Edition
www.imo.org/Publications/
Maritime TV: Piracy Mitigation Strategies – A Video Webcast
Series
www.maritimetv.com/Events/
Six Signs Your Cargo is a Big Target To Thieves ....... sponsored by C.H. Robinson
https://RapidRequest.
Somalia: Inside The Pirates' Prison
www.twincities.com/columnists/
Super-Sized Cargo Plane Carries NASA's Biggest Loads
http://gizmodo.com/this-super-
Top Notch Logistics & Work Crews !!!
www.youtube.com/embed/
UPS Logistics: A Masterpiece of Streamlined Supply Chain Management
www.supplychain247.com/
Warehouse Disasters On Video
http://mhlnews.com/labor-
PRODUCTS>>>>>>>>>
The Nautical Institute -- "Stowaways by Sea", a new handbook in
the Maritime Security series of books. The new guide joins "Maritime
Security – a practical guide" published in 2012 and Maritime Security handbook: "Coping with Piracy"
published in 2013.
www.nautinst.org/en/shop/
Vehicle Asset Communicator
www.id-systems.com/
EVENTS>>>>>>>>>
Transport Events
www.transportevents.com/
Trade Shows, Exhibitions,
Conferences & Business Events Worldwide
www.eventseye.com/
World Trade Organization
Events
www.wto.org/english/news_e/
11th Annual International
Trade Symposium -- "It's All About Bigger Ships"........ May 8,
Norfolk
www.vamaritime.com/event/
2014 IANA Intermodal EXPO ....... 21-23 Sept. 2014, Long Beach,
CA
www.intermodal.org/events/
Africa Ports and Harbours 2014 .........1-2 July 2014, Johannesburg
www.terrapinn.com/exhibition/
Africa Rail 2014 .........1-2
July 2014, Johannesburg, South Africa
www.terrapinn.com/template/
CNS Partnership Conference 2014 .........4-6
May 2014, San Antonio, Texas
www.cnsc.net/events/Pages/cns-
FNC International Freight Conference 2014 Singapore ........12-14 June 2014, Singapore
http://fnc-group.com/Freight-
"Go Global" Conference ..............7 May 2014, Rockford, IL
www.goglobal-itc.com/attendee-
LAX Air Cargo Day 2014 .......10 am - 2 pm, 8 May 2014, The Proud Bird
Restaurant
https://events.r20.
Maritime Innovation and Technology ........
16-17 Oct. 2014, Malta
www.regonline.co.uk/register/
The Cargo Show Africa 2014 ......... 30 June - 3 July 2014,
Johannesburg
www.terrapinn.com/exhibition/
Why A Boeing 777 Costs US$320M
www.usatoday.com/story/money/
Apps For That - iPhones & Droids>>>>>>>>>
Red Rocket .......to gather the
data your car or truck won't give you. The app covers everything from 0-60
times to lateral G's and is the perfect accessory for anyone who doesn't have
ten grand to drop on a real dyno.
NRIX Traffic ......
up-to-date traffic info, accident reports, traffic forecas
-- FREE
Yale Lift Truck App
www.yale.com/north-america/en-
General Interest>>>>>>>>>
100th Supercharger
www.teslamotors.com/
Air India Scraps Its Newest Boeing 777-200LR - amazing photos
www.bangaloreaviation.com/
Cuba Travel Services
www.cubatravelservices.com/
Day In The Life of a Southwest 737
http://airchive.com/blog/2014/
Harley-Davidson Riding Academy
www.harley-davidson.com/en_US/
Golfboarding Video
www.youtube.com/watch?v=
Grear Rail Journeys: Around the World in 53 Days 2015
www.greatrail.com/tours/
If History Were In Color
www.liveleak.com/ll_embed?f=
Old Time Auto Racing
http://vimeo.com/20247765
Parking a Lamborghini at a Sky Garage in Singapore
www.chonday.com/Videos/
Photos of Vintaje Los Angeles
www.flickriver.com/photos/g_
Rare Historical Photos - Part 3
www.liveleak.com/view?i=af2_
Train Engineer Kicks Selfie In The Head
www.youtube.com/watch?v=
U-Haul SuperGraphics
www.uhaul.com/supergraphics/
U-Haul -- Ice Berg Aircraft Carrier
www.uhaul.com/SuperGraphics/
==============================
******************************
OUR "E" Section: The Forwarder/Broker World***
7. New U.S.
Transport Related Legal Cases _______
***The U.S. Ninth Circuit Court of Appeals Addresses Yet Another Montreal
Convention Issue of fFrst Impression........as the Court ruled on 19 March
2014 that the Convention's two-year time-for-suit applies even to a claim for
damages which had not yet accrued at the time that the Convention's two-year
limitations period was triggered (arrival at destination). Narayanan
v. British Airways, No.
11-55870 (9th Cir. 2014). Under the facts of the case, the limitations
period began running six months before the claim even accrued. In making
its decision, however, the Court reaffirmed its 2011 ruling that third-party
claims for indemnity and contribution are beyond the reach of the Convention's
two year time-for-suit, which applies only to claims for damages. That
case, Chubb Insurance Co. of Europe S.A. v. Menlo Worldwide Forwarding, Inc., 634 F.3d 1023, 1027 (9th Cir. 2011),
was a groundbreaking victory for the forwarding industry successfully argued by
the Countryman & McDaniel attorneys.
Ventress v. Japan Airlines
U.S. 9th Circuit Court of Appeals
28 March 2014, No. 12-15066
Circuit Judge McKeown for the court, Circuit Judge
Hawkins; Concurrence by Circuit Judge Be
Federal Preemption: The
Federal Aviation Act impliedly field preempts state whistleblower and
employment law claims regarding pilot qualifications and medical standards.
Martin Ventress claimed that Japan Airlines and Jalways Co., Ltd. (collectively "JAL") retaliated
against Ventress for raising safety concerns and
submitting safety reports regarding a fellow pilot's fitness to operate an
aircraft in June 2001. Ventress claims JAL retaliated
against him because JAL made Ventress undergo
unnecessary psychiatric evaluations and prevented him from working in violation
of
Read The Full Opinion: http://cdn.ca9.uscourts.gov/
Northwest, Inc. v.
Ginsberg
United States Supreme Court of The United States
Alito, J., delivered the Court's unanimous opinion.
Federal Preemption: The Airline Deregulation Act of 1978 preempts state
common law provisions that expand the scope of the contract rights between
airlines and air passengers.
Respondent was a member of Petitioner's frequent flyer program. Petitioner has
sole discretion to terminate a membership if it believed that a passenger
abused the program, and did terminate Respondent's membership based upon that
belief. Respondent brought a state common law claim against Petitioner for
breach of the implied covenant of good faith and fair dealing. The district
court dismissed the implied covenant complaint upon the grounds that the
Airline Deregulation Act of 1978 ("ADA") preempts application of
state contract law, including those implied covenants that would expand the
scope of the relationship between the contracting parties beyond the program
contract provided by Petitioner. The Ninth Circuit reversed the district
court's ruling and found the connection between airline regulation and state
contract law was insufficient to invoke preemption under the
The Supreme Court reversed, holding that the regulation of Petitioner's rates,
services, and frequent flyer program are sufficiently related to invoke the
Read The Full Opinion: www.supremecourt.gov/opinions/
==============================
Written from wire stories, the Associated Press, Reuters, Hong Kong Shipping
News Lloyds & other world sources.
******************************
Michael S. McDaniel, Esq. Editor (Countryman & McDaniel)
Christoph M. Wahner, Esq. (Countryman & McDaniel) Daily Vessel Casualties
Bruce Lindsay, Esq.
(Countryman & McDaniel)
Maria Jackson (Countryman & McDaniel)
=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+
_The Cargo Letter_
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Marine Insurance and Claims representation of Air/Ocean Freight Forwarders, NVOCC's, Indirect Air Carriers, Shipper's Agents, Inland
Carriers and Customs Brokers......and Liability & Marine insurance
Underwriters since 1978 in the United States & world-wide via The Cargo Law Network. Member, Maritime Law Association of the
Our Home Page Of Forwarder/Broker Services
Cargo Law
www.cargolaw.com
&
TRANS-CAMS
www.cargolaw.com/cameras.html
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