Law Offices of Countryman & McDaniel
THE CARGO L
Air & Ocean Logistics - Customs Broker News
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Michael S. McDaniel, Editor, Countryman & McDaniel, forwarder/broker, hull & machinery attorneys at LAX.
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs ______________
3. Freight Forwarder World Air Briefs ____________
4. FF World Ocean Briefs _____________________
**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***
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
Further Details From
***"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
***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
Policy Statement for Taking Pictures/Videos of Union Pacific Trains or Structures (interesting)
***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?
**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
***Why Is It Taking So Long To Find MH370? ........... from the Malaysian Chronicle
***Why Are Americans Obsessed With Missing Flight MH370?
***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
***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
***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
***Stanford-IATA Aviation Strategy Program .........16-27 June at
***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
4. FF World Ocean Briefs
***So. Cal. Port Stoppage Causes Minor Problems ....... as truck drivers at the
Learn More About TTSI
Read More About Justice for Port Truck Drivers
***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
***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
***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
***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
**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.
See our new feature for June 2008: "Too Little Runway - Too Much Plane"
See our newest photo feature "Singles Only" - Transportation Disasters Told In A Single Photo!
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.
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!
Awesome Vids by the Slow Mo Guys
International Convention for Safe Containers
Maritime TV: Piracy Mitigation Strategies – A Video Webcast Series
Six Signs Your Cargo is a Big Target To Thieves ....... sponsored by C.H. Robinson
Somalia: Inside The Pirates' Prison
Super-Sized Cargo Plane Carries NASA's Biggest Loads
Top Notch Logistics & Work Crews !!!
UPS Logistics: A Masterpiece of Streamlined Supply Chain Management
Warehouse Disasters On Video
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.
Vehicle Asset Communicator
Trade Shows, Exhibitions, Conferences & Business Events Worldwide
World Trade Organization Events
11th Annual International Trade Symposium -- "It's All About Bigger Ships"........ May 8, Norfolk
2014 IANA Intermodal EXPO ....... 21-23 Sept. 2014, Long Beach, CA
Africa Ports and Harbours 2014 .........1-2 July 2014, Johannesburg
Africa Rail 2014 .........1-2 July 2014, Johannesburg, South Africa
CNS Partnership Conference 2014 .........4-6 May 2014, San Antonio, Texas
FNC International Freight Conference 2014 Singapore ........12-14 June 2014, Singapore
"Go Global" Conference ..............7 May 2014, Rockford, IL
LAX Air Cargo Day 2014 .......10 am - 2 pm, 8 May 2014, The Proud Bird Restaurant
Maritime Innovation and Technology ........ 16-17 Oct. 2014, Malta
The Cargo Show Africa 2014 ......... 30 June - 3 July 2014, Johannesburg
Why A Boeing 777 Costs US$320M
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
Air India Scraps Its Newest Boeing 777-200LR - amazing photos
Cuba Travel Services
Day In The Life of a Southwest 737
Harley-Davidson Riding Academy
Grear Rail Journeys: Around the World in 53 Days 2015
If History Were In Color
Old Time Auto Racing
Parking a Lamborghini at a Sky Garage in Singapore
Photos of Vintaje Los Angeles
Rare Historical Photos - Part 3
Train Engineer Kicks Selfie In The Head
U-Haul -- Ice Berg Aircraft Carrier
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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Michael S. McDaniel, Editor.
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_The Cargo Letter_ is published by The Law Offices of Countryman & McDaniel: Legal, Business, 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
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