THE CARGO LETTER [316]
Air & Ocean Freight Forwarder - Customs Broker News
12 May 1997
Good Monday Morning and the kick off of World Trade Week from our Observation
Deck...... overlooking the officially designated "Cargo City" area
and....... Runway 25-Right at Los Angeles International Airport. And, yes, we
have Pirate news!
Contribute your knowledge & information ........ by e-mail to The Cargo
Letter. We strive to bring you useful information which is timely & topical.
Michael S. McDaniel, Editor
INDEX to The Cargo Letter:
- Our Top Story
- Burlington & American Mount Rescue Effort
- Answering A Presidential Call
- A Needed Assist To The Wildlife Waystation
OUR "A" Section: Trade, Financial & Inland
News
- Freight Forwarder Trade Briefs
- The Cargo Letter Financial Page
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
- Forwarder/Broker Law Firm Expands
Our Top Story
- Answering A Presidential Call
- A Needed Assist To The Wildlife Waystation
-- by Michael S. McDaniel for The Cargo Letter
LAX - 9 May -- Late last month the "National Summit on
Volunteerism" was conducted during week long ceremonies at Philadelphia,
featuring speeches by U.S. leaders on the subject of our citizen duty to improve
America by taking a little time to "give back" to the community. But
even as President Clinton was speaking, Burlington Air Express & American
Airlines were high overhead and meeting the President's challenge at 30,000 feet
in a dramatic way.
On that 26 April day Burlington & American moved precious cargo, an
endangered, 8 month old Siberian tiger cub headed for LAX on Flight 137 and the
promise of life at California's unique The Wildlife Waystation. The story
received wide coverage in the national press, but there is more to be told.
The baby tiger, named "Jodie," taken as a cub from its natural
habitat and smuggled to Ireland, is reportedly one of only 470 Siberian tigers
remaining in the wild. The cub was originally unscrupulously traded on the black
market to a family in Fingal, Ireland. As is always the case, this family
quickly realized it could not care for the growing tiger and sought out help
from the nearby Irish Seal Sanctuary. "Jodie" had rickets, pleurisy
and a serious leg injury when she was first brought to the attention of
Ireland's wildlife authorities, but has been brought back to full health over
the last 2 months. After the seal sanctuary contacted the well-known large cat
& wild animal experts at The Wildlife Waystation, both Burlington &
American donated their services to move the animal to its new U.S. home.
"Jodie's" new home for the foreseeable future will now be at The
Wildlife Waystation, founded by Martine Colette, the leading expert for the care
of wild tigers, lions, rare large cats and abused or endangered species (great
apes, cats, and species of all kinds) throughout the world. But while
"Jodie" as one of the last of her kind has now been saved for future
generations, The Wildlife Waystation has much work left undone .......... and
needs your help.
With world habitats shrinking and zoo closures reaching a shocking level, The
Wildlife Waystation continues to follow its proud 25 year history of arranging
to rescue, rehabilitate, and provide refuge & placement for native &
exotic wild animals throughout the world. Funded only by public donation, the
famed organization operates a 167 acre facility in the Angeles National Forest
and even features the only 24 hour emergency veterinary hospital in the world
which is free to the public. Around the clock, when an animal emergency occurs,
officers & skilled volunteers of The Wildlife Waystation roll into the night
with the special equipment & experience often relied upon by law
enforcement, civilian government and U.S. Customs for the solving of animal
emergencies. Just one example, the 1995 "Ligertown" rescue in Idaho
saved both human lives and some 27 abused lions & tigers which had escaped
into the streets of a small town, but at a cost to date of US$703,000. The
animals are thriving, but not The Wildlife Waystation bank account.
Unfortunately, animal emergencies will sometimes arise which require prompt
logistical assistance of the sort rendered for "Jodie" by Burlington
& American. In the past this assistance has been provided to The Wildlife
Waystation by industry leaders such as Fritz Companies, Air Lingus and others,
but more help will be needed from time to time. The need is occasional, but
desperate when it arises.
The Cargo Letter has decided to promote the organization of an industry group
to coordinate the valuable work of The Wildlife Waystation for its logistics
needs. International forwarders & carriers have played a central role in the
life of The Wildlife Waystation and for the international animal effort in
general, but this effort needs coordination to achieve necessary service goals
and to arrange proper media recognition for the participants as well. The
Wildlife Waystation, an official animal charity of the freight carrier &
forwarder community.
We ask that you take a minute to visit The Wildlife Waystation web site, http://www.Waystation.org/,
and then e-mail The Cargo Letter with
ideas to coordinate this important effort or contribute financially to its
continued success. The need is great. While the efforts will only be occasional,
remember that you are following the likes of American, Burlington and Fritz in
answering your nations call. Last, the involvement of ocean forwarders &
carriers is certainly needed. We plan a suitable transportation industry
remembrance at The Wildlife Waystation.
OUR "A" Section: Trade, Financial & Inland News
- Amertranz Worldwide & Target Airfreight Unite ......... as this
first day of World Trade Week sees an announcement by company president
Stewart Hettleman today that Amertranz has finalized a merger process to
acquire Target Airfreight and its 18 domestic stations & network of
overseas agents. Target president Christopher A. Coppersmith will now become
presient of the new Amertranz subsidiary, Target International.
- June Marks Customs SED Enforcement ............. as years of
indifference will end soon end for the lowly "Shippers Export
Declaration" (SED). While today some 30% of SEDs are either not filed
or inaccurate, U.S. Customs will lower the boom next month. Accurate SEDs
will need to be in carrier hands before loading. The Journal of Commerce
reports that when Customs begins enforced compliance for SEDs and Outbound
Manifests next month, ocean carriers are planning to pass along any fines
they incur as a result to exporters (i.e., the forwarders). This appears to
be yet another problem for Forwarders (NVOCCs & Indirect Air Carriers)
......there is always your bond. Still, the U.S. is serious because the SED
problem is said to overstate the U.S. trade deficit by some 50%. The U.S.
Census Bureau says US$564B worth of goods is involved. The new program will
impact us all and likely rocket the U.S. stock market forward once true
trade figures are known.
[Ed Note: We suggest you issue a written warning to your customers as soon
as possible. Protect your company from the fines and from the customer
allegations that its "expert" forwarder failed to notify that the
SED is now a CRITICAL document when it never was before.]
- NCBFAA - The First 100 Years! ............... as The National
Customs Brokers and Forwarders Association of America (NCBFAA) celebrates
its important birthday by offering audio tapes of presentations given at its
centennial conference, as well as mugs, pins, shirts, and bags.
Congratulation s to our senior association!! Your NCBFAA has now relocated
to 1200 18th St., NW, #901, Washington, DC 20036, Tel: (202) 466-0222, Fax:
(202) 466-0226.
http://www.tradecompass.com/ncbfaa/index.html
- Fritz Automates Puerto Rico Tax System ............ with a new,
automated tax reporting system at its San Juan, Puerto Rico station to
calculate & track excise tax on all air freight moves. Says Gary
Friedman, Sr. Director, Fritz Domestic Services, "This system enables
us to function with added speed & accuracy, by partnering with Puerto
Rico's government tax bureau, Hacienda. Clients expect time-sensitive
business solutions in Puerto Rico just as with all domestic door-to-door
services presently offered within the U.S.." The enormous system
capacity handles shipments in less than 2 hours, replacing a lengthy 4-step
manual process. The excise tax system allows for Fritz service during
holidays, after hours, and on weekends. Automating this procedure will bring
Hacienda on-site to the San Juan Fritz warehouse. Fritz's San Juan Desk is
based at Miami
- The "FAKE" Customs Auction Problem ......... has recently
been covered at length by NBC News as to slick operators who trick consumers
into believing they are bidding on government seized goods. All
"real" U.S. Customs Service auctions are managed by a single,
verifiable government contractor: EG&G Dynatrend of Wellesley, Mass. The
true auctions seem to include some fairly unusual items such as 24-karat
gold bars, Russian motorcycles w/ sidecars, red English phone booths, dried
shark cartilage, palace-size Persian carpets, disco balls, works by famous
artists, military gas masks, frozen ostrich eggs, dried horse sperm,
tombstones, and vintage wines. You can get on a mailing list for legitimate
U.S. Treasury Department auctions by calling 703-273-7373, or by visiting:
http://www.ustreas.gov/treasury/bureaus/customs/general.html.
- Expeditors Gives Birth To Octuplets ................ with the
opening of 8 new, well placed offices around the globe. In the U.S.,
Expeditors has opened Norfolk (near 2nd largest East Coast container
operation, Port of Virginia) and at the Indianapolis International Airport.
For service to England's "silicon corridor" along the M4 motor
way, west of London, there is a new station at Swindon. Africa's
"Mother City" of Cape Town is the 4th new addition to Expeditor's
family. The "final four" new Expeditors stations will expand its
Asia network with the addition of Indonesia (Jakarta & Surabaya),
Nanjing (the Company's 10th China office), Mumbai (formerly Bombay), and Sri
Lanka's capitol, Columbo.
- Intercargo Continues International Expansion ................with
appointment of Joellen Hillberry as Director of International Market
Development. Ms. Hillberry has been central to recent company expansions to
Singapore and Hong Kong. Intercargo Corporation is the leading supplier of
specialized insurance coverages for companies involved in international
trade, serving importers & exporters, customs brokers & freight
forwarders, and other companies involved in the trade and transportation
industry.
- Mexican Trucks Still Risky ............. as the U.S. General
Accounting Office (GAO) reports that some 45% of Mexican trucks inspected in
1996 had serious safety violations. Still, reports are the U.S. & Mexico
may be on the verge of a breakthrough in the opening of the U.S.-Mexican
border to long-haul trucking, a step the two countries agreed to under NAFTA.
- U.S. & 33 Countries Enter FTAA Negotiations ........... as a
Journal of Commerce article states that trade ministers from the U.S. and 33
other Western Hemisphere countries will meet this week to recommend the
start of hemispheric free trade negotiations by early 1998. The article
suggests that under the present plan, negotiations for a Free Trade Area of
the Americas (FTAA) would be completed by 2005.
- ExportAmerica Shows Hit West Coast ..........and are set for Los
Angeles, May 20th, and San Francisco, May 22nd. Microsoft, GTE, Fed-Ex,
Sterling Commerce, Thomas Cook, Export Today Magazine and Trade Compass have
teamed for this Internet and International Trade Conference Series. Future
cities include Boston (June 10) & New York (June 12). For information on
attending or exhibiting at ExportAmerica, call 1-800-505-4676, or visit the
website at:
http://www.exportamerica.org
- State Of California Bullish On NAFTA ........... as public hearings
have resulted in a recent California World Trade Commission report on NAFTA
and its impact on the California economy, and the US$6B in increased
California exports to Mexico & Canada under NAFTA. Last month the Los
Angeles Times reported, "the Commission's conclusions, based on
hearings in 1995 and 1996 and on research by its own staff, sharply
contradict contentions by NAFTA opponents that the pact, which also includes
Canada, has been draining jobs from the United States." Where the
public is concerned, 43% of Americans believe that NAFTA has had a negative
impact on the U.S., compared with 28% who believe it has had a positive
impact. Read this important & timely new report (including a section on
Duty Drawback and case studies), "NAFTA: A Preliminary Assessment of
the Agreement's Impact on California" at .............
http://www.commerce.ca.gov/international/nafta/
[Ed Note : The World Trade Organization (WTO) has issued on its Web site (http://www.wto.org)
an overview of world trade in 1996, stating that the volume of world
merchandise trade increased by 4% in 1996].
- China Seen To Remain "Favored" .......... as a Wall
Street Journal article discussing China's "Most Favored Nation"
(MFN) trading status renewal quotes U.S. Treasury Secretary Robert Rubin as
stating that "it's going to be a more difficult process this time than
it was last time." However, the article also states that for all the
uncertainty surrounding renewal, it is unlikely that Congress will block
renewal of China's MFN status as it would force huge tariff increases on
Chinese goods and create massive trade and economic dislocation. Hearings
begin in about 1 month.
- Korean Underwriters Pursue China Market ............ as Samsung
Life Insurance and LG Fire & Marine Insurance Co. (Lucky Goldstar) want
their offices in Beijing elevated to the status of branches, while Kyobo
Life Insurance and Hyundai Marine & Fire Insurance seek to join the
mainland's profitable marine insurance market. After 2 day Korea-China
insurance talks in Beijing this month, South Korea's Finance and Economy
Ministry says China is seriously considering the request.
- Hyundai To Build Huge Myanmar Port Facility ............... an
int'l industrial complex and port in Myanmar, covering 12.3 million square
meters of land at Thanlyin and Kyauktan, 18 kilometers southeast of
Myanmar's capital, Yangon.
- U.S. Mounts "Operation Counter Copy" ............... as a
nationwide crackdown on counterfeit Nike shoes, Calvin Klein clothes,
popular videos and computer memory has resulted in 35 indictments and three
convictions in just 6 months, led by the FBI. The movie, sound recording,
computer software & clothing industries lose about US$2.8B in the U.S.
alone to scam artists yearly, while Internationally, the cost is US$20B.
When moving freight, bear in mind that jail time awaits those who have
knowledge of counterfeiting.
- U.S. Customs Is "Smokin'" ............. as a group
smuggling thousands of Cuban cigars into California was charged on 18 April
with illegally trading with an enemy of the U.S. government (i.e. Cuba). The
arrests ended an investigation code named "Operation Smoke Ring"
which began in 1996 after 900 Cuban cigars worth US$10K were seized from an
importer who agreed to cooperate with the U.S. in return for immunity. The
cigars mainly entered through Mexico and were sold in California and Nevada
to restaurants, clubs & shops where some customers spent as much as
US$70K for the forbidden fruit. Given that the suspects face 15 years in
prison, U.S. Customs quite clearly remains very serious about the crime of
trade with Cuba.
- Informal Entry Limit To Raise ......as it is said U.S. Customs will
raise the informal entry dollar limit to US$2,000 from the current US$1,250
limit.
- No Rest For Indian Customs ............ as efforts to boost exports
have resulted in a government decision to allow clearance of export
consignments on all days, including Sundays & holidays. Computerized
processing of bills is also being added. The daily clearance is to be
immediately available at the air cargo complex & inland container depots
in the capital.
- Mongolia Expects Import RUSH (?) ........... as The Journal of
Commerce reports approved revisions to tax laws that scrap virtually all
import duties, slash taxes on businesses, offer incentives to foreign
investors, & raise the income tax threshold. Still, we suspect it could
be some months before we see Fritz, Circle or Expeditors open new stations.
- U.S. Customs Revokes Broker Licenses (without prejudice)
New York Joss International
New York Carlsson International Cargo, Inc.
New York N.Y. Redbird, Inc.
New York Meadows Wye Cardinal Air Services
New York Roberts, Reilly & Son, Inc.
Seattle Charles Klingforth
Seattle Marilyn Jill Michel
Pembina J.W. Kramer
Pembina Frank Moll
New York J & A Shipping Co., Inc.
Detroit Donald M. Stern
San Diego Eric Swadell, CHB
With Prejudice Revocations are:
San Francisco David E. Mangus
San Francisco Priority Customs Service
For 1ST Quarter 1997 Results
- Air Canada. Up on earnings of US$81M as compared to a loss of
US$92M for same quarter 1996. This represents an improvement of US$173M
compared to 1st quarter of 1996.
- American President Lines (APL) DOWN, losing US$9.8M, less than 2
weeks after announcing acquisition by Neptune Orient Lines, compared to a
US$3.9M profit during 1st quarter 1996. Explains merger?
- Amertranz Worldwide (freight forwarding services & Caribbean
Air Services Inc.) Up 19% to US$18.5M over 3rd quarter 1996. For the fiscal
9 month period ended March 31, 1997, the company had revenues of US$53.3M, a
loss from operations of $2.9M, and a net loss of US$3.9M. Says Amertranz,
"The freight forwarder industry is ripe for consolidation and we intend
to take advantage of this consolidation by concluding strategic acquisitions
over the next several months."
- Burlington Air Express Inc. Up with net income of US$5.1M, or $.26
per share, a 34% increase over the US$3.8M for 1st quarter 1996. Worldwide
revenues totaled US$371.4M, up 7%. Operating profits were US$10.8M in the
1st quarter compared to US$8.7M the prior year. Domestic expedited freight
service revenues increased 6% to US$136.7M. 1st quarter domestic weight
shipped per day increased by 2% over same period in 1996 while average yield
per pound increased 5%.
- Delta Air Lines. UP with operating income of US$398M, an increase
of 136% over the March 1996 quarter operating income of US$169M. Net income
totaled US$221M, up 250%.
- Expeditors. UP with net earnings of US$5.6M, up from the $3.8M in
net earnings for the same quarter in 1996 and an increase of 48%. Net
revenues increased 42% to US$57.7M as compared with US$40.7M for the first
quarter of 1996. Total revenues and operating income for 1st quarter 1997
were US$196M and US$8.6M compared with US$138M and US$5.6M for the same
period of 1996, increases of 42% and 55% respectively. Net earnings per
share for the quarter increased 47%.
- Harper Group (Circle International) Up with revenue of US$155.5M
compared to US$132.4M in the same 1996 period. Net revenue, which represents
the gross profit of the business, was up 12% to $61.7M compared to US$54.9M
for 1st quarter 1996. Income from operations increased to US$5.9M from US
$4.9M, a 21% increase over 1st quarter 1996. Net income rose 22% to US$4.6M
compared to US$3.8M for the same period of 1996, while earnings per share
rose 21% to $0.29 per share. The company has completed its joint venture
partnership in Thailand, creating Circle Worldbridge International, and now
has 350 offices in 96 countries.
- Interpool, Inc.. Up with revenues of US$38.2M, up 9% from US$35.2M
in 1996. Income per share rose 15% to US$0.31 per share. The company added
approximately 11,000 TEUs (twenty-foot-equivalent units) to its container
fleet during the quarter, bringing the total container fleet to
approximately 312,000 TEUs, in addition to the chassis fleet of 57,000
units, while maintaining equipment utilization of 97%.
- Southwest Airlines. UP as net income increased 54.2% to US$50.9M
($.34 per share), compared to US$33.0 million ($.22 per share) in 1st
quarter 1996. Total operating revenues for 1st quarter 1997 increased 14.8%
to US$887M, compared to US$72.5M for 1st quarter 1996. Revenue passenger
miles (RPMs) increased 11.9% in the period.
- Trans World Airlines Inc. DOWN with a loss of US$71.6M, or $1.54 a
share, compared with a year-earlier 1st quarter loss of $37.1M.
- United Airlines. UP with record net earnings of US$105M. Operating
earnings also set a first-quarter record at US$194M.
- US Airways Group, Inc. Up a record US$152.7M profit on revenues of
US$2.1B. This compares to a loss of US$32.3M on revenues of US$1.9B in the
first quarter of 1996, an improvement of US$185M on a year-over-year basis.
- ValuJet, Inc. Down on a net loss of US$18.5M, or $.34 per share,
compared to net income of US$10.7M, or $.18 per share for 1st quarter 1996.
Total operating revenues were US$36.9M compared to US$110.0M reported for
1st quarter 1996.
- China's Economy Up, But Slowed .............. with 9.4% 1st quarter
improvement and GDP at 1,468.6B yuan. The growth margin is 0.8% lower than
the same period of 1996.
OUR "B" Section: FF World Air News
- Happy 50th Birthday U.S. Air Force!! ............ as the event is
marked with dedication of its newest C-17 Globemaster III cargo aircraft in
the name of entertainer Bob Hope for his contributions over the years. The
ceremony took place on 22 April 22 at the McDonnell Douglas Long Beach
facility. The C-17 improves total airlift capability to serve the worldwide
air mobility requirements of the U.S..
[Ed Note: Prior to Oct. 1947, the U.S. Air Force was the U.S. Army Air
Corps.] For more information about the C-17 Globemaster III, visit:
http://www.af.mil/news/factsheets/C-17-Globemaster-III.html
- You Should Be Reading FORWARD ........... it's the official
magazine of the Airforwarders Association and is available FREE to any
forwarder at their home office address. Just write on your company
letterhead, including the name of your President (or CEO) & your FAA
Security Agreement Number. You will receive a free subscription to this
fabulous publication. Subscriptions are available to others at a nominal
fee. Contact our Jim Foster: AIRFWDRASN@aol.com
- UPS Has Dramatic 1st Quarter ......... with domestic &
international express up 9.6% over 1996 levels, an average daily volume of
1,783,000 express packages and documents. UPS announced plans to expand the
South American services through a series of agreements for the lease of
aircraft to Challenge Air, creating a seamless transportation link between
Central & South America. More, UPS officially opened its main Asia hub
at Taiwan's Chiang Kai Shek (CKS) International Airport on 30 April. The
Asia hub in Taiwan is UPS's third major international air hub and the
cornerstone of a US$400 million, multiyear investment strategy in Asia. UPS
revenues for 1996 were $22.4B on volume of 3.15 billion packages.
- First Boeing 747B Freighter Was Lufthansa ......... as aviation
history marked a milestone last month when Lufthansa Cargo AG and Boeing
celebrated the 25th anniversary of the first 747 Freighter at JFK ceremonies
to mark the aircraft's inaugural flight from Frankfurt to New York on April
19, 1972. "The City of New York" was christened to name a new 747
Freighter in honor of the carrier's most important North American gateway
and the first time an aircraft was named in honor of a city outside of
Germany. This summer, Lufthansa Cargo will operate 34 weekly Boeing 747F all
freighter flights from 10 North American Gateways as part of cargo services
to more than 450 cities in 100 countries. In 1996 the transported load was
1.6 million metric tons of freight & mail worldwide.
- Conversion Trend Continues ............. as Boeing has a new a
contract with KLM Royal Dutch Airlines to convert two 747 Stretched Upper
Deck (SUD) combi aircraft into dedicated 747F freighters.
- Hong Kong Takes Top Air Cargo Spot ............. and for the first
time becomes the world's busiest int'l air cargo port, surpassing Japan's
Narita Airport and California's LAX in 1996. Airports Council International
figures show that Hong Kong's air cargo grew by about 7% for the year to
1,563,492 tons. The result left it just 1,000 tons over Narita, which saw
cargo fall by 2.7% during the period.
- Airborne Express Chosen In New Study ...........as for the 3rd year
in a row, Business Consumer Guide has named Airborne Express its top choice
for overnight & next afternoon shipment of letters and small packages in
the U.S. The independent study of major carriers was conducted by Beacon
Research Group, Inc., an organization established to provide business
decision makers with credible information on goods, services &
operations. The Business Consumer Guide, ensures accuracy and avoids bias
with a strict policy against accepting advertising, free products or
services. Reprints of the Guide's 1997 report on overnight delivery services
are available, free of charge, by writing to Reis & Associates, Inc.,
100 West Harrison Street, South Tower, Suite 510, Seattle, WA 98119, or by
sending your E-mail request to reispr@nwlink.com
- Circle Int'l & Delta Make "Advance" Plans ........
with an agreement that Circle International, the freight forwarder giant,
may purchase capacity in advance and use selected cargo facilities to
assemble shipments for transportation to transatlantic & transpacific
destinations. Says Circle, "This type of relationship is truly
innovative and customer-driven. Traditionally air carriers & freight
forwarders have always viewed each other as critical parts of the supply
chain, though very separate entities, each with different priorities. Our
expanded relationship with Delta Air Cargo will effectively &
efficiently respond to changes in the market environment, including higher
customer service expectations, demands for shorter cycle times and the
extended global supply networks of large corporations. For the first time in
the industry, multiple hand-offs of cargo and information will be
eliminated. Circle representatives will consolidate shipments on the spot at
selected Delta Air Cargo facilities, thereby eliminating the previous need
to move the shipments back and forth between our facilities and the
customer's facilities." Circle will now offer customers guaranteed,
reserved space on Delta's flights.
- Flight Record Set ........... as a Northwest DC-10 with an
all-female flight staff arrived at Kansai International Airport on for the
airline's first transpacific crossing by an all female crew.
- Continental Airlines Direct to Brazil ........... with final DOT
approval for daily nonstop flights between New York/Newark International
Airport and Sao Paulo & Rio de Janeiro starting 10 July.
- Delta & KAL Partnership Stronger .......... with announcement
they have signed an enhanced Memorandum of Understanding restructuring their
partnership agreement which began code-sharing flights in September 1995.
The two carriers will continue to discuss plans for enhanced interlining of
passengers and freight, schedule coordination to facilitate connections
between Delta and Korean, and shared facilities and customer handling in
jointly-served cities.
- Volga-Dnepr May Cancel Small Shipments .......... due to
ever-changing Russian customs rules which have created chaos in the air
cargo market. Volga-Dnepr's heavy freighters Antonov An-124s & Ilyushin
Il-76s make regular weekly flights to 3 destinations in China to bring
mostly small consignments into Russia.
- Airborne & Senawangi Senapati Partner ............. for
Indonesian air cargo with Senawangi Senapti handling delivery of Airborne's
cargo all over Indonesia, while Airborne will handle delivery of VIP cargo
worldwide.
- Baltimore/Washington Int'l Airport (BWI) ........... plans a new
state of the art cargo facility to be constructed in the midfield area
between existing Runway 10-28 and the planned parallel 10R-28L. The current
task is to provide input from the forwarder community as to what facility
needs YOU would like to see incorporated into the design. Visit the
engineer's web site ............ and tell them what you want.
http://www.halcyon.com/keiser/
- "Generally" Speaking, Burlington Is OK ......... as
Burlington Air Express (BAX) has been awarded the contract to handle General
Instrument's domestic heavy weight air freight for an estimated US$2M annual
contract covering its North America air freight needs for the cable &
communications equipment divisions.
- Lucent Technologies Picks Skyway Freight Systems ........to provide
its logistics & transportation management services in North America.
Lucent is the successor company to Bell Labs.
OUR "C" Section World Ocean News
- Port Of Oakland Will Have Its Day ............... as this year's
Port Day Celebration is scheduled for Saturday, May 17 with tours, maritime
industry exhibits, visits abroad classic yachts, races, music & dance.
Oakland, the 4th largest U.S. container port, currently is in the midst of
an ambitious Vision 2000 program, designed to triple ocean cargo handling
capacity. For information about Port Day, call (510) 272-1568.
- Yearly Figures Point To Overcapacity ........... as the world fleet
grew rapidly in 1996, by 17.2M gross tons (GT) to 507.9M GT according to
Lloyd's Register's annual statistics. There are now a total of 84,264
vessels over 100 tons in the world (an increase of 17.2M gross tons in one
year), 45,097 of which are cargo ships. Panama remains the largest flag
state with 6,105 ships with an average age of 18 years(82M GT), followed by
Liberia with 1,684 ships with an average age of 12 years (60M GT). The U.S.
fleet was old est in 1996, at 470 ships of 10.5M gross tons with an age of
28 years. Annual ship building reached its highest point since the 1970's
with 25.9M GT launched in 1996. Japan & South Korea accounted for almost
68% of the total. The aggregate age of the world fleet is 19 years and 18
for cargo carrying vessels.
- Nippon Express Cuts Rates ........... and has discounted its rates
for consolidation services 20% to 30%. As of last month, the rates applied
to export cargo, but imports will get the same rate soon. Not good news for
NVOCCs.
- NYK Line Entering Potato Trade? ............. might be an
explanation for its 5 May action in opening a western U.S. cargo service
center at Boise, Idaho. The facility will handle customer service, equipment
control, documentation and operations.
- Experts Call For HKG Expansion ........... as despite the current
slow down, Hong Kong will handle 8.2M teu of South China containerized cargo
by the year 2000, according to latest estimates from the Hong Kong and
Shenzen authorities. Port Cargo Forecasts, which have taken into account a
slowdown of container traffic, indicate that containerized cargo in So.
China alone will grow to over 21M TEU by 2010.
- Stop The Pirates! .......... as the International Maritime
Organization (IMO) is being urged by the Int'l Shipping Federation (ISF)
& the Int'l Confederation of Free Trade Unions (ICFTU) to help stamp out
the sharp increase in armed attacks on shipping by sending missions to the
affected regions as was done in 1993 and 1994. The upsurge of piracy is
occurring in South America, West Africa and South East Asia, particularly
Indonesia which accounts for 30% of the world total. The ISF and the ICFTU
believe that IMO action would encourage governments to put pressure on local
authorities whose own security officials have been sighted taking part in
the attacks. The IMO's Regional Piracy Center announced 22 April that in 1st
quarter 1997, there were 34 acts of piracy worldwide. This is down from 62
for the same period 1996, but the bureau said that attacks, especially in
Asia, are often not reported or are delayed. There were 224 incidents in
1996 compared to 187 in 1995.
- FMC Levies US$650K NVOCC Fine ............. against Comm-Sino Ltd.
of Hong Kong for filing false descriptions of cargo sent from Hong Kong to
Florida from Dec. 1995 to April 1996. Comm-Sino had declared footwear, but
the freight was furniture & kitchenware, which has a lower rate.
- COSCO Bonds With Singapore ..........as The Port of Singapore
Authority signed a long-term agreement with China Ocean Shipping Co. on 28
April. The deal will provide stable prices & dedicated terminal services
to COSCO, in return for COSCO using the port as its regional hub. COSCOs
already has a new transshipment hub at Naples, Italy, whch is operating. The
hub is for the Black Sea and the eastern Mediterranean.
- APL - NOL Insider Trading? ........... as the U.S. Securities and
Exchange Commission is now investigating 3 people for possible insider
trading of APL Ltd. shares following recent announcement of the Neptune
Orient Lines Ltd. merger. A civil suit has been filed against Raymond Lum
Kwan Sung in Singapore who is said to have made U.S.$1.2M in the deal by
purchasing 190,100 APL shares. The others are identified as Abdul Ismail of
London. Ismail, and Bobby Ong Congqin, suspected of making U.S.$1M APL on
options ...... before the 13 April merger announcement, but after the deal
was made. APL stock increased 39%. Worse, the options entitled these two to
buy APL shares at a deep discount.
- Tianjin gets E.D.I. ....... as an electronic data interchange
facility began operations 25 April at Tianjin, China and is the first
Chinese port to be equipped with an E.D.I. system for int'l containers. Some
U.S.$1.21 million was spent on the system, using software from Sweden.
- China Takes A Short Cut ............ and has reportedly agreed with
Myanmar to jointly develop the Irrawaddy River as a channel to the Indian
Ocean, from Kunming, Yunnan Province, China, along the No. 320 National
Road, to Ruili,Yunnan. It then would reach Bhamo, Myanmar.
- Panama Canal Controversy Continues ............ as the
International Chamber of Shipping has bitterly complained at Panama's
two-stage increase of canal fees and also its new method of calculating deck
cargo. The increase is 8.2% this year and 7.5% next, "flung at an
unsuspecting industry". Panamanian authorities have hit back saying the
increases are essential to maintain the canal. Canal traffic is currently
being disrupted by the wreck of a tug which sank last week partly blocking a
channel near the Miraflores locks.
[Editor Note: For the full story, see The Cargo Letter edition [307]
& [308] where career Canal executives reveal
secrets of the Panama Canal .........at our world wide web site.]
- Evergreen To Build In China ......... with approval for the Taiwan
flag carrier to spend U.S.$5.5M on an inland container depot at Shenzhen,
China.
- Hyundai & NYK Add Manila ..... to there service between Japan
and Bangkok, Thailand.
- Contship Containerlines Ltd. Is HOT ............ actually hot pink,
the unusual color of its M/V Contship Germany. In an attempt to raise
company pride, the fleet sports new colors ranging from bright yellow to
turquoise.
- Federal Maritime Commission Revocations ............ of freight
forwarder licenses:
1. Celadon-Jacky Maeder Company. Surrendered license voluntarily.
2. International U.T.S., Ltd. Failed to maintain a valid surety bond.
3. Kyung H. (Harry) Oh d/b/a ITL Shipping Company. Failed to maintain a
valid surety bond.
4. Pan Am Cargo. Failed to maintain a valid surety bond.
The usual chaos at sea this month, although we have not listed the bulk of
disasters, just those pertaining to cargo (and 2 out of the many naval
incidents).
1.] on 10 April, The tug Eastern Star capsized and sank near the entrance to
the Wicomico River in Maryland;
2.] on 16 April, M/V Mediterranea (Cypriot cargo) had an engine room fire while
docking at the Port of Luanda, Angola. The No. 2 generator caught fire, and the
fire spread. . The engine room was flooded with carbon dioxide to extinguish the
fire;
3.] on 17 April, M/T Velebit ran aground in the Lake Maracaibo Channel in
Venezuela after snagging fishing net;
4.] on 18 April, M/T Perwira (Indonesian) sank in Jakarta Bay near Tanjung
Priok, Indonesia;
5.] on 20 April, M/T Gulf Stream (Belize) sank north of La Tortuga Island,
Venezuela while sailing from Havana to the Corpoven facility at Puerto La Cruz,
Venezuela, when the ship's central cargo tank ruptured.;
6.] on 22 April, Vittorio Veneto (C 550), an Italian Navy guided-missile
cruiser, ran aground in sand off Vlore, Albania (this is not a good career move
for the Capt.);
7.] on 22 April, fires aboard 2 separate ships at a shipyard near Perama,
Greece, killed 1 person. Fire on M/V Ionian Bridge (Cypriot) killed an employee
of the yard. Another fire began aboard the M/V Minoan Hill (Panamanian) moored
at a quay at nearby Drapetsona;
8.] on 23 April, 4 died as a result of a fire aboard the M/T Ocean Trader
(Singaporean.) at Berth 7 of Mobil Corp.'s terminal at Pulau Pesek near
Singapore;
9.] on 27 April the French naval ship La Fidele preparing to destroy explosives
in the Atlantic blew up and sank off the Normandy coast killing at least two,
with 3 missing;
10.] on 27 April, M/T Shoei Maru No. 7 (Japanese chemical carrier) capsized
shortly after leaving Kobe, Japan. Japanese Maritime Safety Agency divers found
the bodies of 2 crew trapped in the vessel;
11.] on 27 April, M/T Cheuk Yang (South Korean) ran aground & capsized early
off Chindo Island, South Korea. The ship is now partially submerged. One person
was killed and 9 are missing.
12.] on 28 April, 18 were killed and many more injured by a vessel explosion at
a ship breaking site at Alang, northern India;
13.] on 29 April, 2 were killed after being overcome by toxic fumes aboard the
M/V Blue Bird (St. Vincent & the Grenadines), off Wladyslawowo, Poland;
14.] on 29 April the container ship M/V City of London (Cypriot) ran aground
after leaving Hamburg, Germany;
15.] on 1 May M/V Silver Sky (Bahamian containership built in 1992) was attacked
by pirates using fishing vessels while moored at Xingang, China. The chief
engineer was seriously injured but the port reportedly offered little
assistance. The ship left the area to seek medical aid;.
16.] on 2 May M/V Song Do Ho (North Korean) collided with the M/V Eiryu Maru
(Japanese) in the Kurushima Channel off Imabari, Japan;
17.] on 3 May M/V Tomis Future (Malte se bulk carrier) rammed the former U.S.
Navy Independence-class Light Aircraft Carrier Cabot;
18.] on 5 May M/V Carl Metz (St. Vincent & the Grenadines general cargo )
ran aground on an island off Dragonera with 149 containers, sailing from
Istanbul, Turkey, to the Italian island of Sicily;
19.] on 6 May the M/V Veni (Cypriot-registry bulker.) was damaged when it rammed
the northern quay of a lock entering the Berendrechtsluis at Antwerp, Belgium;
20.] on 7 May M/T Ichiyo Maru No. 21 (Japanese product tanker) collided with the
M/T Izumi Maru No. 60 (Japanese liquefied petroleum gas carrier) off the
Kunisaki Peninsula of Kyushu, Japan. The No. 1 port cargo tank aboard the Ichiyo
Maru No. 21 ruptured, spilling 13,000 gallons of gasoline;
21.] on 7 May M/V Xin Kang (Chinese cargo ship operated by COSCO Container
Lines) ran aground early 7 May off Shikoku Island, Japan, while sailing through
a waterway in the Inland Sea National Park;
22.] on 8 May the M/T Kipper (Maltese) took on water in its engine room at 40
degrees 11.8 minutes north, 17 degrees 02.3 minutes east and crew of 22 is being
assisted by an Italian aircraft and 2 tugs in stabilizing the flooding;
23.] on 8 May M/V Crane Hope (Panamanian bulk carrier.) ran aground early off
southwestern Yanashima Island, Japan; but refloated the next day;
24.] 9 May, the M/V Danica Sunrise (Danish general cargo) suffered a generator
fire near the Channel Islands of the United Kingdom. The ship was carrying
marble from Malaga, Spain, to Shoreham, England, when the fire began. Two French
firefighters were taken to the M/V Danica Sunrise by helicopter.
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.
OUR "D" Section: FF in Cyberspace
Airforwarders Association. Show your support for the organization which
supports our industry. JOIN TODAY! Goals of the Airforwarders Association are:
1. To promote a positive image and prominent position for all airfreight
forwarders;
2. To raise the consciousness of the role that forwarders play in air
transportation;
3. To study and facilitate ways in which the forwarding industry can improve
and expand services to shippers;
4. To provide a forum for improved communication among the forwarding industry
and with airlines, trucking companies and government agencies.
http://www.logcity.com/airfwdrasn/
- Air Cargo Internet Symposium Highlights [If you missed the real
thing.]
http://www.coastalair.com/acis/index.html
http://www.coastalair.com
- Coastal Air Transport ......... provides online tracking of cargo
anywhere they fly and free web pages for their customers. Try the
interactive Q+A for shipping questions.
http://www.coastalair.com
- Internet Airlines Addresses List ........... e-mail addresses,
sorted by region., with airline codes, frequent flyer schemes, inflight
magazines, etc.
http://www.geocities.com/TheTropics/3742/index.html
- Internet Tariff Service ............... where subscribers now have
the ability to download their complete, up-to-date tariff information each
day from the Dart Maritime Service, Inc. web site. Contact:
info@dartmaritime.com
http://www.dartmaritime.com
- Moscow Business Directory .......... a searchable online business
telephone directory includes: Moscow City Center Map, photo tour of the city
& Electronic NewsStand (w/ direct links).
http://www.moscow.net/
- Newseum .......... the world's 'only interactive museum of news,
lets you take a virtual walk around the past, present, and future of news.
http://www.newseum.org
- Travel Medicine On-Line Clinic ............ shows how to minimize
health risks overseas, featuring regularly updated travel health news &
updates, including int'l travel alerts & advice. A country by country
listing of where vaccines are compulsory or highly recommended and where
malaria is present. Detailed medical information on how to protect health
while away, from home.
http://www.tmvc.com.au/
- U.S. Army Aviation Technical Test Center
http://www.attc.army.mil
- WhoWhere? EDGAR ........... access and search corporate & EDGAR
filings for all U.S. public companies. Featuring EDGARAlert!, an E-mail
notification service that lets you know when companies you're tracking have
filed new documents [requires free WhoWhere? registration].
http://edgar.whowhere.com
- Ship Broker Sites From U.K.s FAIRPLAY:
-
OUR "E" Section: The Forwarder/Broker World
A normal progression in our industry is for attorneys to first pass the bar
examination and then learn the dynamics of transportation while working on
client cases. The forwarder/broker lawyers of Countryman & McDaniel have now
reversed this process with addition of Cameron Roberts, Esq. to their ranks.
Roberts is a licensed U.S. Customs Broker and honed his forwarder/broker skills
in such varied positions as Import Supervisor & Customer Service Manager. He
is a former manager at the Harper Group and most recently served as Executive
Vice President for Federated Transportation Systems International Division.
These industry accomplishments are matched by a Cume Laude law degree from the
University of Washington and several successful trials to date.
While there are only a handful of attorneys who focus on the forwarder/broker
industry to begin with, how many have ever actually moved international freight
.......... much less posses a Dangerous Goods Certification? Cameron Roberts is
uniquely qualified to further the Countrym an & McDaniel mission of service
to the international forwarder/broker community. Licensed in both California
& Washington, Mr. Roberts will be based at LAX but also support the law
firms continuing representations in the greater Seattle area.
Where's The Warren Levine Articles? ........ is a question several
readers have asked concerning our Senior Correspondent for International
Affairs. Mr. Warren S. Levine has relocated from Denver to assume duties as
General Manager of Charles M. Schayer & Co. at Seattle, WA. Warren's
insightful articles will return to The Cargo Letter shortly.
[an error occurred while processing this directive]