THE CARGO LETTER 
Air & Ocean Freight Forwarder - Customs Broker News
25 April 1997
Good Friday Morning from our Observation Deck...... overlooking the
officially designated "Cargo City" area and....... Runway 25-Right at
Los Angeles International Airport.
NOTE: After many years of publishing The Cargo Letter as a service to the
industry, today marks our first "Double Issue"!. There is so much news
and excitement in our industry that a single Internet mailing is not sufficient
to contain all the news you need to know. Today you will receive two mailings of
The Cargo Letter, Part 1 and Part 2. We welcome your comments, but ask you to
bear in mind the many hours of work contributed by our staff in assembling the
information and writing the articles featured below.
Because we know that many of our members are located in very remote regions
of the world and have limited internet ability, this experiment is designed to
determine if problems might be created by this extended format. McD
Contribute your knowledge, articles & information ........by e-mail to The
Michael S. McDaniel, Editor
INDEX to The Cargo Letter:
- Our Top Story
- APL Line Passes The Flag
OUR "A" Section: Trade, Financial & Inland
- First U.S. Far East Carrier Is Sold
- The Passing Of U.S. Tradition
- World Trade Week Approaches
- The Cargo Letter Financial Page
- Freight Forwarder Trade Briefs
OUR "B" Section: FF World Air News
- Freight Forwarder World Air Briefs
OUR "C" Section: FF World Ocean News
- FF World Ocean Briefs
- The Cargo Letter Cargo Damage Dispatches
OUR "D" Section: FF in Cyberspace
- The Cargo Letter "Cyber Ports Of Call"
OUR "E" Section: The Forwarder/Broker World
Our Top Story
- First U.S. Far East Carrier Is Sold
- The Passing Of U.S. Tradition
-- by Michael S. McDaniel for The Cargo Letter
Oakland - 14 April - It was announced today that Neptune Orient Lines LTD (NOL)
and American President Lines will merge, to become a wholly owned subsidiary of
NOL. Singapore's NOL will acquire all 24.6M outstanding shares of APL stock at
US$33.50 per share in a transaction valued at approximately US$825M.
"The future of the shipping industry belongs to those who have a global
vision, and the strategy and critical mass to realize that vision," sai d
Mr.Timothy J. Rhein, Pres. & CEO of APL. "Moreover," he added,
"this merger in no way lessens APL's commitment to the U.S. flag and
American seafaring labor as part of our commitment to the Maritime Security
Program (MSP) and the VISA program. Consistent with U.S. maritime policy, we
fully ex pect to ensure the continued availability of U.S.-flagged and crewed
ships as well as all the network resources of APL for participation in these
programs. We expect both companies to realize significant cost savings of at
least $130 million annually from the consolidation."
NOL & APL will operate a total fleet of 113 vessels, including 76
container ships with about 200,000 TEUs in total capacity. APL is a leader in
the transpacific and intra-Asia trades (approx. 10% of trade), while NOL is very
strong in the Europe-Far East trade, as well as the Far East to U.S. trade via
the Atlantic. Combined revenues will exceed US$4.0B, ranking NOL/APL among the
world's largest carriers.
Following the merger, APL will retain its name and brand in the industry. It
and some 4,000 employees will continue transportation operations, headed by its
existing management at the Port of Oakland, Calif.
Mr. Lua Cheng Eng, Deputy Chairman & CEO of NOL noted that close economic
& security relations have long existed between Singapore and the United
States. Under a 1990 Memorandum of Understanding (MOU), Singapore prov ides
important support, including major facilities to U.S. forces in the region
(after the close of Subic). Several of NOL's vessels were chartered to the U.S.
Navy for sealift support during Operation Desert Storm. The Board of Directors
of APL will recommend approval of the acquisition at a shareholder meeting to be
As with the earlier P&O-Nedlloyd merger, NOL and APL are in different
alliances. NOL is in the Grand Alliance, while APL is in the Global Alliance.
NOL says alliance commitments will be honored but it is widely expected that
both NOL-APL and P&O Nedlloyd [P &O Container Lines] will have to decide
between the two groups. [Ed Note: Indeed, it was learned last week that the
P&O-Nedlloyd group had also been set to bid for APL.]
APL is the oldest continuously operating U.S. carrier, carrying the U.S. flag
to the Far East in the late 1860's and serving her country in times of crisis
for over 100 years. Other APL accomplishments include:
1848 - The Pacific Mail Steamship Company starts mail service between
Panama and U.S. Pacific Coast. To China in 1867.
1938 - Company renamed American President Lines to celebrate its tradition of
naming ships after U.S. Presidents.
1951 - APL acquires 1000 small containers and introduces them into
1973 - First fully containerized vessels enter the APL fleet.
1975 - APL establishes subsidiary to offer international cargo consolidation
1979 - APL starts first dedicated express container train across the U.S.
1982 - 45-foot container first introduced by APL, followed shortly by the
first 48', 53' and first microprocessor reefer containers.
1984 - APL inaugurates first scheduled double-stack rail (StackTrain) service
and introduces worldwide on-line cargo tracing for customers.
1988 - World's first "post-Panamax" containerships enter
trans-Pacific service for APL.
1995 - APL enters into Global Alliance agreement, expands into Asia-Europe and
Asia-Latin America trades.
April 1997 - In an ironic and historic move, APL "returns to its 1848
roots" with announcement this week of direct container service between
the U.S. East Coast and Panama, with connecting services to/from Costa Rica,
Colombia and Venezuela ......... its first service in modern times to link
North America with a trading region other than Asia.
Thus APL is once again a North/South carrier ......... but under whose flag?
OUR "A" Section: Trade, Financial & Inland News
-- by Michael S. McDaniel for The Cargo Letter
LAX - 22 April -- When World Trade Week kicks off on 1 May, it will mark 71
years since the observance was "invented" at Los Angeles in 1926. At
the time it would have been difficult to predict that:
- LAX would become the world's No. 2 air cargo port and No. 3 world
airport over all with 58 million annual passengers;
- LAX would for an unprecedented fourth consecutive year, earn the top
rating as ``Best Cargo Airport in North America'' through an audited
survey conducted among 13,000 readers of Cargo News Asia.
- Port of Long Beach would become the busiest U.S. ocean port, with next
door neighbor Port of Los Angeles rankig No. 2 ..... forming a true
MEGAPORT for the world.
Although World Trade Week went nationwide in 1935, it still finds it's home
in The City of Angels. An impressive range of events for 1997 will span the
entire month of May as participants gather in Southern California from around
the globe. Full details are now available at "TradePort", the greatly
enhanced web site of the Los Angeles Area Chamber of Commerce. This is "The
Premier" international trade website with over 150,000 guest visits each
month ... http://tradeport.org
Now available is the "1997-1998 World Trade Information Guide" with
listings of all organizations, current world trade stats and info on World Trade
Week's activities. "This is the most comprehensive guide for the small
business person and a great asset to larger companies who are now considering
the international market," according to organizers. Your free guide is
available, by sending a self-addressed business sized envelope with $US0.78
cents in U.S. postage affixed to:
World Trade Week - Southern California
c/o L. A. Area Chamber of Commerce
350 S. Bixel Street
Los Angeles, California 90017
Given that this is "First Quarter Earnings Season", we present a
new feature which provides you with the highlights of "who is doing
what" in our industry.
- Aer Lingus made a pre-tax profit of US$65.8M in 1996, with gross on
these activities increasing by 9% to US$1.233B.
- Air France freight ton kilometers (FTKs) worldwide for March 1997
in creased 3.4% to 435 million.
- Alaska Airlines has a 1st quarter net loss of US$5.7M, an
improvement over the net loss of US$7.2M for 1996 1st quarter. Operating
revenues for the quarter rose to US$380M, an 8.3% increase, while operating
expenses increased to US$386M, up 8.2%. Operating loss for the quarter was
US$5.4M compared to US$5.2M for 1996.
- America West Airlines reported record 1st quarter 1997 net income
of US$14.0M, up 15%.
- Caliber System (Roberts & Viking Freight) reported a net loss
for the 1st quarter ended March 29, 1997 of US$49.2M.
- Continental Airlines reports record 1st quarter pre-tax income of
US$124M, a 51% improvement from 1st quarter 1996 pre-tax income of US$82M,
exclusive of last year's US$13M gain on the sale of America West stock. This
is the 8th consecutive period Continental has reported record quarterly
earnings. After taxes, the company reported net income of US$74M.
- Conrail has reported 1st quarter net income of US$6M, compared to
net income of $31M for 1st quarter of 1996. Excluding merger-related costs
of US$22M ($14 million after taxes), net income for the current quarter
would have been US$75M.
- Continental Airlines reports record 1st quarter pre-tax income of
US$124M a 51 percent improvement from 1st quarter 1996 pre-tax income of
US$82M, exclusive of last year's US$13M gain on the sale of America West
stock. This is the 8th consecutive period Continental has reported record
quarterly earnings. After taxes, the company reported net income of US$74M.
- Covenant Transport (Long haul U.S. trucker) reports 1st quarter
revenue increased 26.5% to US$62.6M in 1997 from US$49.5M in 1996. Net
income increased 281.1% to US$1.8M in 1997 from US$482,000 in 1996.
Operating ratio decreased to 93.2% in 1997 from 95.7% in 1996.
- CNF Transportation reports record 1st quarter net income of US$20M
compared with net income of US$11.5M in the first quarter of 1996. Operating
income for 1st quarter was US$50.4 M, up 43%.
- Fritz Companies reports that quarter revenue increased 12.1% to
US$270.3M from US$241.1M for the comparable prior year period and net
revenue increased 13.6% to US$118.0M from US$103.5M for the same prior year
The fiscal third quarter represents the seasonally weakest quarter of the
year. Increased revenue and net revenue was primarily due to warehousing and
distribution, customs brokerage and airfreight. Revenue for the nine months
ended Feb. 28, 1997 increased 8% to US$847.3M from US$783.6M for the
comparable 1996 period.
- J.B. Hunt Transport Services (U.S. long haul trucker) reported 1st
quarter 1997 net earnings of US$0.6M compared with 1996 1st quarter earnings
of US$2.8M. Revenue for the 1st quarter of 1997 increased 3% to US$364M from
US$354M in 1996.
- National Shipping Company of Saudi Arabia (NSCSA) has 1996 losses
of US$29.6M, worst in it's history.
- Northwest Airlines reports net income of US$64.6M for the 1st
quarter of 1997, a 21.0% increase over 1996.
- Old Dominion Freight Line (U.S. long haul trucker) reported revenue
from operations for the quarter ended March 31, 1997 at US$73.6M, an
increase of 7.8% from the 1st quarter of 1996. Net income rose 112.9% to
US$1.4M. The Company's operating ratio improved for the quarter to 95.6%
from 97.5% for the comparable quarter in 1996.
- Roadway Express (U.S. long haul trucker) reported net income of
US$5.5 for the quarter ending March 29, 1997, compared with net income of
US$2.6M in the 1st quarter of 1996. Revenues were US$590.7M for the 1997 1st
quarter and US$517M for the 1st quarter of last year.
- United Air Lines reported 1997 1st quarter net earnings of US$105M.
Operating earnings also set a 1st quarter record at US$194M. In comparison,
1st quarter 1996 net earnings before an extraordinary item were $6 million
on operating earnings of US$62M. At US$215M, 1st quarter 1997 fully
distributed net earnings more than doubled those of first quarter 1996.
- ValuJet's chief financial officer said the 3rd quarter of 1997 will
be the earliest that the discount airline could expect to return to
- U.S. Customs Commissioner To Resign .................. as
Commissioner G eorge J. Weise has announced plans to depart sometime this
summer after 4 years in the post. He has denied a CBS Television report on
the show "60 Minutes" that he is being forced to leave due to
allegations of corruption within the U.S. Customs Service. Citing possible
bribes to Customs officials which could run as high as US$1M, U.S. Senator
Diane Feinstein (D.- Ca.) has d emanded both an investigation and that the
new Commissioner have a proper law enforcement background. Breaking with the
traditions of over 200 years in faithful service, it seems there are
problems for this once uncorruptable branch of the U.S. Department of the
Treasury. Indeed, it was U.S. Treasury Special Agent Elliot Ness who in the
1930's gave rise to the notion that his agents of the Department were
"Untouchables" where the forces of organized crime were concerned.
Times well should not have changed.
- Deepest Trade Deficit Since Ever ............ or at least since the
U.S. Dept. of Commerce began keeping monthly records in 1992 as the
expanding trade deficit with China helped push the U.S. trade gap in January
1997 to US$3.72B. This is seen as a "bad thing" for President
Clinton, as the White House is being hit with press accounts suggesting
efforts by the Chinese government to influence U.S. trade policy through
- Driving The "Fritz Information Highway" ............ is
what customers of industry leader Fritz Companies will do with the offering
of automated foreign customs duty data over the Internet. Using what is
called the "Fritz I-Way",
up-to-date duty & tax information is available to customers/subscribers
thru the Fritz web site. Instead of waiting several days for information or
placing telephone calls to foreign countries, Fritz clients can access
current customs tariff information 24 hours a day, 7 days a week through the
Fritz I-Way. This is the world's first web site to provide such
comprehensive commodity duty and tax information. The new service also
provides customized preference duty tables which assist in navigation
through customs unions and free trade areas, such as NAFTA. This ground
breaking Fritz Web Site was made possible
by joint efforts of Fritz, Sun Microsystems, and SeaLink Information
- Parle Vous "Expeditors"? .......... as the logistics
giant this week announced the opening of four new offices in France to
support its operations there. The 4 are: Paris, Lille, Lyon and Epinal.
- U.S. Customs Has Style .......... and has announced it will no
longer require a visa for textile & apparel articles described as
"fashion samples" which are entered for U.S. consumption. In turn,
these textile and apparel articles will not be subject to existing quota
requirements. Entry will still be required.
- U.S. Customs & The Bonded Warehouse ............ is now better
defined as Customs has recently established a section on its Web site which
provides basic information on Customs bonded warehouses, to include basic
guidelines, rules & regs (19 CFR), how to treat various cargo types and
instructions for establishing a bonded warehouse.
- You Thought An Asian Country Was The Textile Leader .............
but Mexico was the leading supplier of textiles and apparel to the U.S. in
1996, with Canada No. 2, leaving the 10 year leader, China as only 3rd.
- Calling All Independent States Trade Partners ...........as the
Business Information Service for the Newly Independent States (BISNIS) has
created the "Search for Partners" program to help U.S. companies
find investment opportunities in expanding markets of the Newly Independent
States (NIS) of the former Soviet Union. Business contacts are provided
solely as an informational service and do not represent an endorsement by
the U.S. Department of Commerce, business lead verification being the
responsibility of the reader. Searchable reports are available on the BISNIS
- Hasta La Vista Mr. Roebuck ......... as the retail giant will sell
most of its stake in its Mexican Subsidiary, Sears, Roebuck de Mexico SA de
C.V. effectively endings a half-century of doing business south of the
border, and regardless of NAFTA.
- Customs Revokes Broker License .......... of Arthur Anderson at
Portland, ME. "With Prejudice".
OUR "B" Section: FF World Air News
- New Cargo Security Rules Due? ................ as the FAA expects
to release new cargo security measures this week, including requirements for
more intense screening of 'unknown shippers' and explosives screening for
unaccompanied belly freight shipments. Since February 5, 1997 the FAA has
begun to enforce the 1996 regulations by adding 118 new inspectors and 12
lawyers dedicated to looking at dangerous goods & cargo security beyond
carrier operations, focusing on forwarders, aircraft maintenance stations,
and shippers. This month's announcement comes as Mary Schiavo, former
Inspector General for the U.S. Department of Transportation (DOT), has
launched her new best seller book "Flying Blind, Flying Safe",
which is highly critical of the FAA.
- Northwest Air To The Rescue? ................. as rumors circulate
that the giant is a potential suitor of Trans World Airlines. Timing may be
right as TWA faced dismal news this month from its auditors which issued a
"qualifie d" review of the airlines ability to continue as a going
concern. Indeed, at a time when the industry is reporting the strongest
earnings in years .....TWA lost US$285M in 1996. TWA ticket counters are
lonely. In a vote of confidence, Saudi Arabian Prince Al Waheed Bin Talal
Bin Abdulaziz Al-Saud announced in March that he had acquired 4% of TWA's
stock, but other help would clearly be needed to save the line. Meanwhile,
Northwest has agreed to purchase regional carrier Express Airlines I
(operates from Minneapolis & Memphis) and its affiliated management
company, Phoenix Airlines Services Inc. [Ed Note: In an annual survey this
week, passengers rated TWA last in service of the major U.S. carriers.]
- Polar Air Cargo To Osaka .............. as the cargo line launched
service for Kansai International Airport on 15 April. The cargo specialist
also inaugurated its B-747F all-cargo service to Manchester, U.K., on
Thursday, April 17, 1997
- Korean Air Adds 15th Americas Gateway .............. as on May 23,
the 747-400 flight KE012 will depart Denver International Airport for Seoul,
service every Monday, Friday & Sunday at 10:15 p.m., with an additional
passenger pickup at LAX. The flight departs LAX at 1:20 a.m. and arrives in
Seoul 12 hours later at 6:35 a.m. (two days later Seoul time). Other KAL
gateways in the Americas include New York, Newark, Washington, D.C.,
Atlanta, Boston, Chicago, Dallas/Ft. Worth, San Francisco, Los Angeles,
Honolulu, Anchorage, Toronto, Vancouver and Sao Paulo. Aggesssive expansion,
- Tower Air Adds SFO ........ with an increased level of direct
service from Babylon By The Bay starting 1 April.
- Atlas Air Is Extended ............... on two current air cargo
contracts with China Airlines, one to October 2001 and on a second to
February 2001 with an option to extend to 2003. The value of the combined
contracts to Atlas is approximately US$150M.
- Hawaiian Airlines Is Up ............ as cargo ton miles (CTMs, or
one ton of revenue cargo transported one mile) for 1997 to date are
13,499,000, an increase of 15.4% over same period 1996, and a full 22% for
- So Is Western Pacific Airlines ............. as the carrier
(NASDAQ: WPAC) announced this week a year-over-year increase in the volume
of mail and cargo transported for its 18 U.S. cities, totaling a full 126%.
In March 1997, Western Pacific carried 615,384 pounds of mail & cargo,
up from 272,560 pounds in March 1996.
- Didn't Want ANZ? ........... as Qantas Airways has sold its19%
stake in Air New Zealand for US$296M at a pre-tax profit of US$78M, to ANZ
- Once Weak Continental, Now The Lion ........ as now successful
Continental Airlines has confirmed its interest to acquire 20% of Aerolineas
Argentinas. Its woes in the past, this is a line to watch. Indeed, the line
has received final approval from the U.S. Department of Transportation to
begin daily nonstop flights between New York/Newark and Sao Paulo & Rio
de Janeiro, Brazil. Continental (once promoted as "The Proud Bird With
The Golden Tail") will inaugurate daily nonstop service between New
York/Newark and Brazil on 10 July.
- Boeing Hits The Ceiling ............... as its new 737-700 flew to
a record altitude for the 737 of 41,000 feet last month. While current
generation 737s (300/-400/- 500) fly no higher than 37,000 feet, the
additional operating envelope will enable "next generation" 737s
to avoid weather & traffic, thus saving up to1.5% in operating costs by
- Stepping Stone Of The Pan Am Clippers ............ Midway Island
was dedicated as a U.S. National Wildlife Refuge at 1600 hrs. on 3 April.
The island, 1,250 miles northwest of Honolulu, is best known for the Battle
of Midway in World War II and has been administered by the U.S. Navy since
1903. Now under the U.S. Fish and Wildlife Service, for the first time in
over 50 years, it is open to the public. Millions of migratory birds use
Midway as a nesting site, but never used by the forces who south conquest of
this tiny U.S. outpost which paved the way for air service across the
Pacific in the 1930's and for victory in the 1940's.
- The Final Air Cargo Frontier ........... is not unlike a script in
``Star Trek'' for creator Gene Roddenberry and for LSD guru Timothy Leary
(his strangest "trip") as their ashes were loaded aboard a rocket
and launched into space on 21 April. Their remains were among those of 24
people packed in lipstick-sized capsules at a price of US$5,000 and placed
into a metal canister within a working satellite by the newly formed
Houston-based Celestis Inc. Now in earth orbit, the "travelers"
will burn up during re-entry in about 4 years. Indeed ........"Live
Long And Prosper". (McD)
OUR "C" Section: FF World Ocean News
- U.S. & Japan Stand Down ............. as the Federal Maritime
Commission (FMC) is suspending until September 4, 1997 (from April 14, 1997)
its "final rule" which would have levied a fee of $100,000 each
time a container-carrying vessel operated by "K" Line, Mitsui
O.S.K., or NYK Line ent ered a U.S. port from abroad. The lines had filed a
petition on 28 March at the U.S. Court of Appeals in Washington, requesting
review of the FMC decision. However, the FMC now states that it is
suspending its penalty in light of recent commitments made by the Government
of Japan, addressing restrictive & unfavorable conditions for use of
Japanese ports. It is understood that Japan & the U.S. have reached
agreement on their dispute over alleged discrimination against U.S.
companies in Japanese ports. The Japanese have agreed to allow U.S. lines
the same freedom of operation enjoyed by Japanese lines in the U.S. Port
operation licenses will be granted to U.S. carriers which will not have to
join the Japan Harbor Transport Assn. The Japanese promise not to intervene
in port services pricing as long as prices are related to costs. [Ed Note:
The night lights will now again burn at Japan Ports.]
- 48 Year China Ban Ends ............ as the first Chinese ship to
sail directly to Taiwan arrived in the southern port of Kaohsiung last week,
breaking a trade barrier between the island and the communist mainland. The
5,000 ton M/V Sheng Da docked after a 16-hour, 162-mile trip from the
southern Chinese port of Xiamen, Kaohsiung Harbor. ``It's a historic
moment'' for the thousands of Taiwanese companies that have invested in
China, Chu Chih-yang, chairman of the Taiwan Business Association, said.
- U.S. Bankruptcy Court Sustains Lykes ........ with approval of the
reorganization plan for the U.S. flagged Lykes Bros.. Steamship Co., thus
endorsing sale of most of the company's assets. Judge Alexander Paskay has
confirmed a plan that turns over most of the company's assets to Canadian
Pacific Ltd. (CP) and extinguishes the interest of the Lykes family in the
company. CP will pay US$34M for Lykes' cargo operations in exchange for all
of Lykes' assets except 11 ships. Money from the sale will be distributed
among 17 different classes of creditors. Depending on the class, creditors
will receive from zero to 'substantial discounts' on their claims. [Ed Note:
While Howell T. Lykes started the shipping operation prior to 1900 as an
extension of his cattle business, the proud name will not now be abandoned.
CP has formed Lykes Lines Ltd. to continue the Int'l cargo operations under
the proud U.S. name. The new company is expected to keep headquarters in
Tampa. The reorganization creates a new company, SEA CRUISE II, to manage
former Lykes ships. Equity interest in the new company has been assigned to
ship lien-holders, effectively leaving stockholders in the original company
- Lykes family members - with nothing from the deal. This was NOT a perfect
deal, but it will keep the great Lykes name in business. Indeed, that once
proud animal of an American steamship line ......... is now, sadly, an
- The "Battle Of Long Beach" Continues ........... as the
Long Beach Harbor Commission voted 14 April to reverse its earlier decision
and cancel a deal to lease the former 145 acre U.S. Naval Station Long
Beach, Calif., to Ch ina Ocean Shipping Co. (COSCO) for use as a container
terminal. The decision was made after California Superior Court Judge Robert
H. O'Brien issued an injunction for reconsideration of the plan. A further
court hearing will be held 13 May. The decision will likely delay rather
than stop the agreement with COSCO. The impact of a further decision to be
made by the Pentagon is unknown. Even in its Navy days .......Long Beach has
never seen so much shooting!
- Expanding Fleet, Negative For Rates ............. as the Journal of
Commerce predicts that trouble is looming in the form of an unprecedented
surge in new ships set to arrive on the world market between now and the end
of the year 2000, such that even if optimistic projections for trade growth
materialize, ships on the world's major trade lanes still would be sailing
with much of their space unfilled through the end of the decade, pressuring
container freight rates further.
- Evergreen Summons The Giants ........... as the Tiawan flag line
has ordered eight 5,364 TEU containerships from Japan's Mitsubishi Heavy
Industries. The new ships will follow a series of 4,227 TEU vessels from the
same builder and are reportedly due for delivery in 1999 at a cost of US$70M
each. The rush to over capacity.
- Grand Alliance Picks Interpool ............... with announcement
that its subsidiary, Trac Lease, Inc., has been awarded a contract by the
Grand Alliance Chassis Pool to administer a fleet of 42,000 marine shipping
container chassis and 30 pool locations throughout the U.S., making Trac one
of the largest administrators of chassis in the world. Trac will employ the
"Poolstat" system, an advanced chassis computer program from
Interpool, Inc. which features daily reporting to the steamship lines on
movement & condition of the chassis and assists in maintaining efficient
inventory levels at the chassis pools.
[ Interpool Press Release - Interpool
Announces Award of Grand Alliance Contract ]
- Hyundai's "Century" Ship ........... as M/V Asian Vision,
a 6,000-vehicle capacity ro/ro, was delivered to Hynudai Merchant Marine Co.
Ltd. on 28 March, to become the line's 100th vessel, the first South Korean
shipping line to reach this milestone. Watch Korean shipping capacity.
- China - Israel Maritime Pact ............. with a 30 March
agreement to offer each other "most favored nation" status in
maritime trade, whereby the vessels of each country will get access to ports
and use of facilities of the other and comparable fee and tax treatment.
Both countries will be able to establish representative offices in the
- Maersk Line Expands The Americas .......... with fixed-day, direct
weekly container service from Florida to Colombia & Venezuela. Using two
400-TEU vessels, calls will be at Miami; Freeport, Bahamas; the Colombian
ports of Cartagena & Barranquilla; the Venezuelan ports of Maracaibo and
Puerto Cabello; Cartagena; and Miami. Transit from Miami to Cartagena is 4
- Watch Your Cargo At Mombasa ....... as an organized cargo theft
system is operating at the Port of Mombasa, Kenya. The most often hit cargo
is clothing, electronics and grain overtly stolen in the presence of
security personnel from the Kenya Ports Authority as well as port police. In
one incident, a local newspaper said that smugglers offered money to truck
drivers who would allow them to load stolen maize.
- Great White Fleet Sails Alone ....... with announcement it is
leaving the Central American Discussion Agreement to focus on its customer
needs. The firm did not see the conference as beneficial.
- New York-New Jersey Port Cargo Output Up ............ with a 1996
rise of 14%, mainly due to increased bulk cargoes, to 51.3M tons. The port
kept its 38.8% share of US North Atlantic market, reversing a two-year
decline in market share.
- Mitsui & P&O In Asia-Africa Venture ......... with
announcement that they will combine services from Asia to western Africa on
1 May, offering 10-day frequency with calls at: Shanghai, China; Pusan,
South Korea; Keelung, Taiwan; Hong Kong; Singapore; Luanda, Angola; Apapa,
Nigeria; Cotonou, Benin; Lome, Togo; Tema, Ghana; and Abidjan, Cote
- Columbus Line Has "Maximum Cube" ....... reefer
containers for its U.S. west coast to Australia & New Zealand service.
Each has an internal capacity of 30 cubic meters, achieved by changes in
insulation that make the container walls thinner. The units can lower the
temperature to - 30 degrees C or -22 degrees F.
- Biggest Boat For Biggest Guy .......... as Sultan Sir Muda Hassanal
Bolkiah Mu'izzadin Waddaula, the Sultan of Brunei, has reportedly ordered
the largest yacht in the world from a German yard at U.S.$60 million. It
will be fitted with an interior from Hellerau in Dresden, Germany, costing
U.S.$9M. The largest yacht currently is the Abdullah Asis, a 480-foot vessel
owned by King Fahd of Saudi Arabia.
- Cargo History 50 Years Ago ............ as on April 16, 1947
explosions aboard the French freighter S.S. Grandcamp at Galveston, Texas,
loaded with 2,300 tons of ammonium nitrate fertilizer shattered windows up
to 25 miles away, blew two small planes out of the sky and became the worst
industrial disaster in U.S. history. The disaster killed at least 576 people
and injured about 5,000 - nearly a third of the population. The resulting
blast caused other explosions & fires in the huge petrochemical complex
of the Galveston Bay city. A 15-foot tidal wave threw a 150-foot-long barge
200 feet onto the land, and fire throughout the city required a week to
suppress. The cargo of ammonium nitrate is the same substance used in the
Oklahoma City bombing, but only 3 tons were involved there, in contrast to
the 2,300 tons of fertilizer carried on the S.S. Grandcamp.
- Cargo History 100 Years Ago ......... as the British Royal Naval
Station H.M.S. Tamar, the last U.K. facility in Hong Kong & the Far
East, has closed on 11 April 1997 ......... exactly 100 years after a vessel
named H.M.S. Tamar was the first to arrive at Hong Kong and give its name to
the now famous British Naval Station.. Indeed, 1 July 1997 will not be an
- FMC Revokes Ocean Freight Forwarder Licenses .........1. Amerstar
Shipping Inc.; 2. Full Service Forwarders, Inc.; 3. Mercury International,
Inc.; 4. Shaheed Rahaman d/b/a AZ Forwarding Co. [Ed Note: All resulted from
failure to maintain bond.]
Sadly, and as usual, it has been a very unfortunate 3 weeks where losses at
sea are concerned. We limit our report to cargo vessels with..........
1.] The M/V Cis Brovig (Norwegian-registry containership) collided on 25
March with M/V Oriental Bay (British-registry containership) in the Elbe River.
The Cis Broving had a steering failure. Both ships sailed to Hamburg, Germany,
2.] M/V Tayabas Bay, sailing from Dipolog to Dumaguette in the Phillipines,
was assisted by the Philippine Navy on 26 March after it developed engine
problems and began drifting near Siaton Point;
3.] also on 26 March M/V Cita (Antigua & Barbuda-registry cargo vessel)
has been declared a total constructive loss by its hull insurers, as while
sailing from Southampton, England, to Belfast, Northern Ireland, with 220
containers it ran aground early 26 March off Newfoundland Point in the Isles of
Scilly and all crew abandoned the ship (1 suffered a broken leg) with some 100
containers lost overboard, laiden with clothing, tires, tobacco & vehicle
4.] The bodies of 4 Greek Navy personnel were recovered on 29 March from the
Antipliarchos Lascos-class Guided-Missile Patrol Boat H.S. Antipliarchos
Kostakos (P 25) after its sinking at 1845 on 4 Nov. from a collision with M/V
Samaina (Greek-registry ro/ro);
5.] M/V Tanto (Norwegian-registry 1,003-gt general cargo vessel) ran aground
near Rovdeforden, Norway, on 30 March, while sailing from Kristiansund to Spain
with 600 tons of dried fish and was refloated by the salvage vessel M/V Mega
6.] M/V Tzanetis (Cypriot-registry freighter) collided with the CII Carbon
docks in Chalmette, La., late 1 April, with minimal vessel damage, and severe
7.] M/T Osung No. 3 (South Korean-registry tanker) sank the night of 3 April
after running aground on a reef off Koje Island, South Korea .......at least 27
vessels are working to contain the resulting spill;
8.] also on 3 April..... M/V Pol America (Polish-registry containership) lost
23 containers overboard in heavy winds and seas up to 30 feet off Nantucket
Island, Mass. Most of containers apparently sank, but at least one, carrying
candy, washed ashore on the eastern section of the island, including thousands
of Hershey Kisses, Tootsie Rolls and other candy;
9.] also on 3 April M/V Dennis Danielsen (Cypriot-registry cargo vessel) sent
out a broadcast that its cargo had shifted during a storm in the Cabot Strait,
resulting in a Canadian Air Command C-130E Hercules contacting the ship for
assitance off Newfoundland;
10.] on 5 April fire destroyed two vessels and damaged a third at Zamboanga
City, the Philippines. The wooden-hulled M/V Petron was destroyed when fire
began in the vessel's engine at 0530. Massive explosions were heard up to 4
miles away. Three crew members suffered serious burns and as many as 10 other
crew are missing (7 now confirmed dead). The fire was fueled by the vessel's
cargo, which included 250 tanks of liquefied petroleum gas & 13,000 gallons
each of diesel fuel, gasoline and other petroleum. A research vessel operated by
the Western Mindanao College of Fishery and Marine Sciences and the Philippine
Department of Science and Technology was destroyed by the spreading fire. Also,
a vessel owned by Fortune Navigation Lines, unloading rice, was damaged;
11.] on 6 April a fire began on the forward deck of M/V Tiger Wave
(Singaporean-registry container ship) in the southern Andaman Sea and was
brought under control;
12.] on the night of 7 April, M/V Edward L. Ryerson ( U.S.-registry 730-foot
"classic Laker"-design bulk carrier.) suffered a turbine failure due
to boiler problems five miles off shore between Milwaukee and Port Washington,
13.] M/V Woo Yang Friend (Panamanian-registry dry cargo ship) collided with
M/V TA-Explorer (Liberian-registry) off Fukuyama, Japan, at 2330 hrs. on 8
April, resulting in minor crew injuries;
14.] M/V Rinos (Cypriot-registry dry cargo ship) suffered a fire in its No. 1
cargo hold while unloading general cargo at Apapa-Lagos on 8 April;
15.] M/V Green Flake (Maltese) took on water 10 April, northwest of Scotland
while carrying frozen fish from Inverness, Scotland, to Iceland and was saved
after a helicopter dropped pumps to the ship;
16.] also on 10 April, a barge sank near Texas City, Texas, partially closing
the Houston Ship Channel;
17.] also on 10 April, a sophisticated mobile crane collapsed at the Port of
Los Angles while hoisting a 63,000 kgs Korean factory module from the No. 3 hold
of M/V National Dignity (Madregal Line), causing both crew injury and total
cargo damage into the millions of U.S. dollars. Pacific area cargo attorneys
Countryman & McDaniel of LAX are investigating the loss;
18.] M/T Formosa Six (Liberian-registry tanker), carrying ethylene
dichloride, and the bulk carrier M/V Flora, which was empty, collided 0115, 12
April in the Gulf of Mexico, 2 miles south of the Southwest Pass of the
Mississippi River. Some of the tankers cargo spilled, but evaporated quickly and
broke down in the atmosphere;
19.] M/V Toba (ro/ro operated by Wilhelmsen Lines) struck a Paceco container
crane at the White Bay wharf in Sydney, Australia, on 13 April;
20.] M/T Pampero (St. Vincent and the Grenadines-registry tanker) broke in
half and sank 6 miles off Guanabo, Cuba, at 1420 14 April. The vessel was
sailing in ballast from Matanzas, Cuba, to the Nico Lopez oil refinery in
Havana. At least 3 explosions and a fire were reported before the ship broke up.
Eighteen of the crew members, some of them injured, were rescued, one was killed
and five, including three Romanian deck officers and the Romanian master, are
21.] also on 14 April, M/V Arad (Romanian- registry dry cargo ship) ran
aground at the outer entrance to the Port of Novorossiysk, Russia;
22.] M/V Pelfisher (Maltese-registry containership) collided with M/V Sun
Pegasus (Romanian-registry containership) while docking at Hayderpasa in
Istanbul, Turkey, on 16 April;
23.] also on 16 April, M/V Svendborg (Antigua and Barbuda-registry dry cargo
ship) ran aground at the approaches to the Port of Goole, England, on 16 April;
24.] M/V Algolake (Ca nadian-registry bulk carrier) ran aground the night of
17 April approaching Algoma Steel while downbound in the St. Mary's River with
taconite and is taking on water with damage to the No. 1 and 2 ballast tanks,
current condition unknown.
[Ed Note: Our international cargo industry is uncertain by nature. Protect
your business and encourage your customers to purchase quality Marine Cargo
Insurance from a quality marine underwriter such as Intercar go Insurance
Company ...... 800.338.4904]
Update on M/V Cita ....... as the Antigua & Barbuda registry 3,083-gt,
3,900-dwt, 241-TEU cargo vessel, owned & operated by Reederei Gerd A. Gorke
ran aground early 26 March west of St. Mary's off Newfoundland Point in the
Isles of Scilly, and then slipped off the rocks into deeper water on 9 April in
bad weather. The ship was carrying containers from Southampton, England, to
Belfast, Northern Ireland. The salvage vessel M/V Salvage Chief, has recovered
98% of the petroleum & paint aboard the Cita, but these salvors are now
waiting for word on what to do with the ship, which has been declared a total
constructive loss by its hull insurers.
OUR "D" Section: FF in Cyberspace
Air Cargo Page Update ........ as the MTA-IC Home Page has recently been
expanded with over 1000 air cargo related links to:
* Cargo Airlines
* Air Forwarders
* Air Cargo Organizations
* Air Cargo Services
* Air Cargo Periodicals
* Related Newsgroups
Air Cargo Lines .........searching for their web sites.
1997 Seaports of the Americas ........ annual publication of the
American Association of Port Authorities. Links to ports info.
Port of Hong Kong 1997 ........... as the latest Hong Kong port
handbook is available free from the Marine Department to companies and persons
connected with the shipping industry.
Spanish Freight Forwarders ....... ANATRANS Federacion Nacional de
Agencias de Transporte de Espana (Freight Forwarders Association Spain)
Status On UPS Pilots Strike Threat? .......try the Independent Pilot's
Association, who will be taking a strike vote starting next week.
Safcor Freight ........ one of Southern Africa's largest and longest
established freight agents.
Unisys Transport Site ........ designed to help Unisys Transportation
clients successfully implement strategies & solutions to increase
competitiveness in the world market and offering links to the Int'l Airline
Transport Association (IATA) and key organizations in the industry.
Business Seek .............. a free search engine lets you find
companies from all the world by name, country, activity, etc. Listing provides
company Web site, e-mail, postal address, fax, telephone, activities, products,
languages spoken, and description of services.
USITC Releases Confidential Trade Report ........... as the U.S.
International Trade Commission (ITC) just released a public version of its
"confidential report" to the U.S. Trade Representative (USTR) titled
Advice on Providing Additional GSP Benefits for Least Developed Countries.
FAA Air Traffic Control Training Division
Relocating Your Staff Members? ................. if so, make it easy
with the Virtual Relocation library of selected links to a wealth of great
information. Resources here include everything from real estate & relocation
to careers, education, travel, taxes, insurance, mortgage, rentals and much
more. (U.S. cities)
Good Talk On Today's Sales Call? ............ use the
"Daily-A-Day" history e-mail list which provides one memorable
historical event by each day, with a unique feature of links for further
information. To obtain a free subscription, just mention The Cargo Letter and
send e-mail to:
Search For Internet Domain Availablity ...... there are many Internet search
engines for this information, however, this is the most useful.
OUR "E" Section: The Forwarder/Broker World
[an error occurred while processing this directive]
- I'M Gonna Go Bankrupt .......... is the threat often thrust upon
U.S. Customs Brokers by importer clients who refuse to meet their obligation
to satisfy duty which has been advanced. In this context, customs duties
& penalties arising out of the importation of merchandise are generally
not dischargeable in bankruptcy, except in certain limited circumstances
which should be outlined by your company attorney. More, lawsuits for the
collection of broker advanced duty are now generally accorded increased
priority of the sort granted to U.S. Customs, as if it were seeking recovery
of the debt. Because The Cargo Letter can not provide legal advise, we
suggest you consult the company attorney before simply writing off some debt
due to a bankrupt importer. [Ed Note: These same rules apply to customs bond