THE CARGO LETTER 
Air & Ocean Freight Forwarder - Customs Broker News
12 August 1997
Good Tuesday Morning from our Observation Deck...... Overlooking the
officially designated "Cargo City" area and....... Runway 25-Right at
Los Angeles International Airport. It has been a tragic & troubled period
for our air cargo industry.
The thousands of Forwarders & Brokers who read this publication around
the world need to learn about YOUR experiences and what YOU learned today.
Contribute your knowledge & information ........ by e-mail to The
Cargo Letter. We strive to bring you useful information which is timely
Michael S. McDaniel, Editor
INDEX to The Cargo Letter:
- OUR "A" Section: Trade, Financial & Inland News
- CHINA NEEDS WTO MEMBERSHIP
- U.S. SAYS CHINA IS NON-RESPONSIVE
- 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
- Who Is Your Cargo Sleeping With?
- Negotiating Your FF/CHB Liability
OUR "A" Section: Trade, Financial & Inland News
- U.S. SAYS CHINA IS NON-RESPONSIVE
-- By Warren S. Levine, for The Cargo Letter
AUG. 10 -- Although the state-run Chinese media have enthusiastically jumped
on President Jiang Zemin's idea of totally revamping that country's economy, it
will have a hard time selling amongst the old-guard seniors of the Chinese
Jiang's plans for the modernization of the Chinese economy, which includes
public stock issues and a truer free-market economy, diametrically oppose the
Marxist-Leninist ideals of the CCP. However, major publications in China have
published editorials in the past few days praising Jiang's idea of issuing
shares of some state-run companies to workers and the listing of Chinese
companies on foreign stock exchanges. The China Securities News called the
concept of shareholding "the realization of socialism,'' and a front-page
editorial in The People's Daily said, "Poverty is not a characteristic of
socialism. The development of productive forces should be the sole criterion for
judging success in building socialism.''
The characterizations in the editorial were obviously designed to make the
radical economic changes more palatable to the old-school leftists from
generations past who still hold a degree of power within the Party structure.
Traditional Maoist thought has been enjoying a resurgence over the past few
But even these changes would not be sufficient to gain WTO acceptance for
China, according to the U.S. and the European Union. U.S. Trade Representative
Charlene Barshefsky called China "essentially non-responsive" to U.S.
requirements for their support for China's membership.
In order to gain U.S. support, Beijing will have to abandon their subsidizing
of factories and drop their restrictive quota and punitive tariff systems. To do
that, however, China would be forced to adopt all of Jiang's proposed economic
changes and more.
This would, of course, open China's vast consumer base to American goods and
agricultural products, positively affecting the balance of U.S. trade with
resultant credit going to the very government which China is being accused of
illegally supporting. Mainstream American media, quick to point accusing fingers
at China for allegedly interfering with American politics, have been
uncharacteristically slow to pick up on American efforts to influence Chinese
However, all eyes should be on the People's Congress this fall, the first one
since the death of Deng Xiaoping.
- NCBFAA Government Affairs Conference ............ will be September
21-23, 1997 in Washington, D.C.. All members of the National Customs Brokers
& Forwarders Association of America are urged to attend and to address
the NCBFAA's policy and legislative agenda. For info, call (202) 466-0222 .
- Customs Top Spot Open .............. as George Weise will be
stepping down from his position as Customs Commissioner this Thursday. Weise
has held the position of Commissioner since 1993. The Journal of Commerce
reports that Weise will be joining the consulting firm Washington Counsel as
a principal. Customs sources state that a successor has not yet been
announced, but that President Clinton is under pressure to name a law
- Intercargo Seeks FMC Order ........... with petition for a
declaratory order of the Federal Maritime Commission (FMC) in which it seeks
that the FMC terminate a controversy and remove any uncertainty which may
exist with respect to: A.] whether a non-vessel-operating common carrier (NVOCC)
surety bond covers claims for unpaid freight charges on a shipment when the
NVOCC principal to an NVOCC bond acts as a mere forwarding agent (shipper's
agent only, no HB/L) on behalf of a disclosed shipper, and not as a shipper
or common carrier, and; B.] whether a surety such as Intercargo Insurance
Company is entitled to review a default judgment (or any judgment not
defended by the NVOCC or its surety) to determine whether a claim is within
the scope of the bond. Replies to the petition of Intercargo Insurance
Company are due to the FMC by August 25, 1997.
- Study on the Operation & Effect Of NAFTA ............. as the
Office of the United States Trade Representative (USTR) has released this
study (Adobe Acrobat [.pdf] format only) assessing the effect of NAFTA on
the overall economy & on selected manufacturing sectors, agriculture,
the environment and workers' rights. The full text is available at the USTR
web site. http://www.ustr.gov/reports/
- Union-Transport (USA) Gets Randy ......... with a 21 July agreement
to merge the freight forwarding business of Randy Int'l into its operations
in New York & New Jersey. Randy Int'l's business consists of
approximately 75% in airfreight exports at JFK and 25% in ocean exports in
New Jersey. Union's site: http://www.uniontrans.com
- India Simplified .......... as importers can now file for customs
cargo clearance 30 days before the ship's ETA. It is also now possible to
present documents against cargo arriving via feeder vessels, without
specifics on the feeder ship being known. The changes allow duties to be
paid immediately upon vessel arrival
- Fritz In New Pilot Project ........... with announcement that it
will participate in the North American Trade Automation Prototype (NATAP)
project with its client Tenneco Automotive. NATAP is a demonstration project
of how the North American trade processes and systems of Canada, the U.S.
& Mexico could function more effectively through the use of common data
elements, documents and processes for commercial customs clearance.
According to the latest Customs Trade Compliance/ACE Redesign newsletter,
NATAP has demonstrated the ability to present Customs primary booth
inspectors with advisory information about the shipment being imported in a
few seconds. Secondary exams have been accomplished using full commercial
data filed by the trade securely via encrypted Internet connections.
- China To Link Guangdong & Hainan ............ as $US542.69M
will be spent on a railway trunk between these two southernmost provinces to
ease the transportation bottleneck in the booming south China region. The
Guangdong-Hainan Railway will consist of two railway sections in Guangdong
and Hainan, respectively, and a freight line crossing the Qiongzhou Strait
which separates Hainan Island from Guangdong. The project will break ground
this year, and be completed by the year 2000.
- Customs Sets Up A "Drive-Through" Window ...............
with installation of an informational kiosk at LAX to help the int'l
traveler 'Know Before You Go.' The kiosk is on the departure level of the
Tom Bradley Int'l Terminal. Customs has plans to install additional kiosks.
- Something Smelly At SFO ............ as importers bribed FDA
inspectors to allow spoiled Asian seafood & birds nests, herbs and other
items into the U.S., according to federal prosecutors last month. The
inspectors, as well as brokers contracted by U.S. Customs, allegedly
admitted food that was unsafe, filthy or produced under unsanitary
conditions. The food was apparently smuggled in over a period of 7 or 8
years, some of it in 1 x 40' containers. Most of the contraband went to
Asian markets. Arrests are expected ....... including at least one CHB yet
to be named.
- Major U.S. Union Moves On PLA .......... as the 1.4 million-member
United Food and Commercial Workers International Union (UFCW) last month
announced a nationwide campaign to "Kick the PLA Out of the USA."
The PLA is the People's Liberation Army of China. In a letter to President
Clinton, Union President Douglas H. Dority asked the president to revoke
immediately the visas of all representatives of companies in the United
States owned by the People's Liberation Army (PLA) & People's Armed
Police (PAP). "They are unwelcome guests and they should be thrown
out," Dority wrote to the president. "The bloodstained products of
the PLA & PAP should not soil the shelves of U.S. stores," Dority
wrote in his letter to all members of the U.S. Congress. Dority will likely
not vacation in the Far East this year.
- Vietnam Cools ............ with a Wall Street Journal report that
investors have found making a profit in Vietnam is difficult. The article
states that overall, foreign investment in Vietnam has dropped
precipitously, from US$1.13B in 1995 to $591M in 1996. This said, Nike Inc.
this week announced an intention to expand in the country.
- Business At The Point Of A Russian Gun ........... continues a
dangerous trend as Yevgeni Khokhlov, director of North-East Steam-Shipping
Line, & Nikolai Yevstafyev, the line's deputy head of personnel, were
shot to death on the staircase of their office in St. Petersburg, Russia, on
- Roadway Express Honored .......... by Federated Department Stores,
Inc. as its 1996 "Carrier of the Year".
- Not Sold By The Glass ........... as Customs inspectors found
liquid containing cocaine in three bottles of wine accompanying a woman
arriving at the George Bush Intercontinental Airport from Bogota, Colombia
- Customs Revokes Customs Broker Licenses
Stephen M. Winsch New York #10229
Devin M. Diran New York 9287
Michael Titone New York 9422
Thomas M. McGrath New York 9677
Nehls & O'Connell New York 3943
Francis X. Coughlin, Jr. New York 4087
F.X. Coughlin Co., Inc. New York 7171
Lo Curto & Funk Inc. New York 9914
Trans-Marine System, Inc. New York 3745
Scott D. Ogden Seattle 7404
Austen D. Hemion Seattle 2525
R.W. Smith Houston 1803
Joseph Francis Jacovina New York 3294
Wood, Niebuhr, & Co., Inc. New York 4814
Sam Martinez Houston 6282
- Air Canada. UP with earnings of US$71M or US$0.44 per share for the
quarter ended 30 June 30, the best 2nd quarter profit ever recorded by the
airline. Operating income of US$135 million also set a record with a $98
million improvement over 1996 -- more than triple last year's result. Cargo
revenues showed 11% growth.
- Alaska Air. UP with record 2nd quarter net income of US$20.8M, or
US$1.41 per share, compared with net income of US$18.0M, or US$1.24 per
share, for 1996 2nd quarter. Operating revenues for the quarter rose to
US$435M a 4.4% increase, while operating expenses increased to US$394M, up
- Atlas Air. DOWN with net earnings for the 2nd quarter of US$3.5M,
or US$0.16 per share, compared with US$10.0M, or US$0.47 per share, for the
year-earlier period. Revenues for the quarter increased 20%, to $93.9
million versus $72.6 million for the same quarter in 1996. Operating income,
excluding the special items, was $16.4 million for the quarter versus
US$22.7M for 1996.
- Circle International. UP with 2nd quarter revenues of US$161.8M
compared to US$146.2M in 1996, an 11% increase. Net revenue, gross profit of
the transport business, was up 8% to US$64.9M compared to US$60.3M in the
2nd quarter of 1996. Income from operations increased to US$8.8M from
US$7.6M, a 16% increase. Net income rose 24% to US$6.6M, while earnings per
share rose 21% to US$0.41 per share. Circle reports that it just concluded
negotiating a new joint venture agreement in Turkey. Obtain the full report
at Circle's Web Site: http://circleintl.com
- DAHER Golden Eagle (FF/CHB). DOWN with net income US$189,453 or
$.03 per share compared to net income of $596,404 or $.10 per share for 2nd
quarter 1996. Revenues for the quarter increased slightly to $18.5 million
compared to revenues of $17.7 million for the same period last year. NOTE:
The Golden Eagle Group (Nasdaq: GEGP) has signed a letter of intent for a
merger transaction with Columbia Shipping Group ("CSG"), a
privately held FF & CHB with fiscal 1996 revenues of approximately $33M.
- Continental Airlines. UP with record 2nd quarter pre-tax income of
US$208M, the highest quarterly profit ever in the company's 63-year history,
and the 9th consecutive quarter of record earnings. After income taxes, the
company reported net income of US$128M (US$2.01 per share).
- Delta Air Lines. DOWN with June 1997 quarter operating income of
US$519M, down US$50M, or 9%, from the June 1996 quarter results. Net income
was US$301M, down US$27M, or 8%. Mary Johnston Evans, a member of Delta's
board since 1983, has just been named acting non-executive chairman. Maurice
Worth has been named acting CEO. Worth is currently the airline's E.V.P of
customer service and acting CEO.
- Hub Group (Intermodal agent). UP with revenues of US$268.2M for the
2nd quarter, representing an increase of 28.2% over comparable 1996 period.
Net income increased to US$2.2M from US$1.7M in 1996. Earnings per share for
the quarter of 1997 was US$0.37 versus US$0.28 for 1996.
- Northwest Airlines. DOWN net income of US$136.2M compared with net
income of US$202.8M for 2nd quarter 1996. Operating income for the quarter
was US$291.1M versus US$374.7M in 2nd quarter 1996. Operating margin for the
quarter was 11.4% compared with 1996 operating margin of 14.7%. Earnings per
share was US$1.26, compared with US$1.90 per common share in the 2nd quarter
- Southwest Air. UP with net income for 2nd quarter of US$93.8M,
increased 10% ($.62 per share),over1996 net income of US$85.3M ($.56 per
share). Total operating revenues for 2nd quarter increased 5.1% to
- United Air. UP with record 2nd quarter net earnings of US$242M and
operating earnings setting a record at US$412M. In comparison, 2nd quarter
1996 net earnings, before an extraordinary item associated with early debt
retirement, were US$226M on operating earnings of US$398M. Earnings per
share were US$2.31.
- US Airways. DOWN with a net profit of US$205.6M for the 2nd
quarter, including non-recurring expenses of US$28.3M to cover costs related
to an efficiency program announced in May. Operating revenues for the
quarter were US$2.2B. The per common share for the quarter was US$2.46,
compared to US$2.71 for 1996. Excluding the non-recurring expenses, net
profit for the quarter would have been US$2.83 per share.
- ValuJet. DOWN with a net loss for the 2nd quarter of US$9.2M, or
$.17 per share, compared to a net loss of $9.6 million, or $.18 per share
for 2nd quarter 1996.
....... AND ........
- Interpool Corp. (IPX) is pleased as Standard &Poor's has
revised its outlook on the company to positive from stable due to solid
financial performance & an increasing portion of its marine cargo
container leasing business in full payout (finance) leases. Interpool's new
rating reflects the company's position as a medium-sized marine cargo
container lessor and the 2nd largest intermodal chassis lessor in the U.S.
Interpool sponsors The Cargo Letter world wide web site at ........ http://www.interpool.com
OUR "B" Section: FF World Air News
- Disaster At MIA May Be Cargo Related .......... as a 29-year-old
Fine Air Services Inc DC-8-61F Dominican Republic bound freighter slammed
through a busy commercial district just after take off at lunchtime
Thursday, killing the crew of 4 and 1 person on the ground. It is now
believed that the 45 tons of denim aboard was not secured properly because
more than half of the plane's latches were found unlocked, investigators
announced Sunday. Three employees who loaded the cargo had no formal
training in loading planes, although federal regulations do not require any
special training. Cargo Shift? FRIGHTENING! The FAA also confirmed Friday it
had proposed to suspend for 60 to 90 days the certificates of 29 pilots who
fly for Fine Air in an action unrelated to the Miami crash. Fine also has
been in a dispute with the government of Peru, which alleged the company had
illegally transported arms to Ecuador. Fine Air Services Inc. said Friday it
has decided to rescind its recent public offering. Citing the belief that
the crash will not have a material adverse effect on the company, it said it
will promptly circulate an updated prospectus to investors.
- IACA Reacts To MIA Tragedy ................ with the following
statement by W.R. Christopher Foyle, President of the International Air
Cargo Association ...........
"My colleagues and I at The International Air Cargo Association
(TIACA) were shocked and sorry to hear about the crash of the Fine Air cargo
freighter near Miami International Airport Aug. 7. We extend our sympathy to
the airline and the families of the crew. We sincerely hope that, after the
NTSB & the FAA conclude their investigation, the age of the aircraft
involved is not an issue. There is a general misconception about airlines'
use of refurbished aircraft -- not just cargo airlines, but passenger
airlines as well. Most airlines use aircraft 10, 20, and even 30 years old.
When operated and maintained properly, used aircraft are dependable and
"International air cargo is a $200 billion, worldwide industry that
has a major, positive impact on most nation's economies. This industry,
which affects most everyone's life in some way, is currently growing an
average of 7-8% annually, more than 2.5 times the world's total gross
domestic product (GDP). Today, many cargo airlines fly new, state-of-the
art, purpose-built freighters made by Boeing, McDonnell Douglas, Antonov,
etc. These airlines include Cargolux, FedEx, Challenge, Atlas, Volga Dnepr,
Air Foyle and many others that are members of TIACA. In the reporting about
this incident, there have also been comments about Miami Int'l Airport's
now-gone `corrosion corner,' a former site for aircraft repair and storage.
This area has now been replaced by US$500M worth of cargo facilities using
the latest technology, part of the airport's US$4B redevelopment &
expansion program. Miami Int'l, a member of TIACA, now has one of the finest
air cargo facilities in the world." NOTE: Fine Air is not a member of
The International Air Cargo Association. TIACA World Wide Web site: http://www.tiaca.org
- The UPS Strike .......... continues and is well covered in your
local newspaper. We do understand today that UPS operations within Canada
&Mexico, and from these countries to other points, are near normal. The
following world wide web sites promise continuing coverage.
- The Burlington Response ............ to the UPS strike is 1.]
Addition al freight from existing domestic customers will be accepted as
capacity allows; 2.] Shipments of less than 25 pounds will not be accepted
unless it is freight already under contract with Burlington; 3.] No deferred
shipments or residential deliveries can be accepted; 4.] New customers
cannot be added at this time. http://www.baxworld.com
- Angels On The FedEx Manifest ................ as all 5 aboard a
MD-11F climbed through a cockpit window to safety ........ with flames
spreading around them ......... early 31 July after Flight 14, en route from
Singapore, with stops in Malaysia, Taiwan and Anchorage, carrying 145,000
pounds of revenue payload & 400 lbs. of routine hazardous materials
......... crashed, clipped its starboard wing, flipped upside down, burst
into flames and slid hundreds of feet down the runway at Newark Int'l
Airport. A Port Authority spokes person said it was "amazing"
nobody died in the crash. The aircraft was a total loss, burning down to a
pile of ash. There must have been angels aboard.
- Panic In The Streets ......... as a wobbly B-707F freighter
struggled to gain altitude and was forced to navigate the office tower
canyons of downtown Miami, just after "take off" on 25 July.
Frightened workers in office buildings watched helplessly, often from a
higher level than the plane, as it crossed the downtown area and eventually
continued on to Gander, Newfoundland. At Miami's Hard Rock Cafe, the plane
just missed the restaurant's famous 3 story sign shaped like an electric
guitar! The freighter is registered in Liberia, and operated by Jet Aviation
Components. No word on whether the company will register as an inland motor
- FedEx Extends Overnite Guarantee From Asia ............ as on 1
Sept. it will become the 1st parcel delivery carrier to provide guaranteed
overnight delivery to all of N. America from the Asia-Pacific region when it
starts a new route between Osaka, Japan & the Memphis Super Hub.
- Anchorage Not Just For Fuel Anymore .............. as Lynxs Group
has won development rights for new US$25M cargo facilities at Anchorage
Int'l Airport on a 30-acre site owned by the state. The DOT awarded
Anchorage the right to become a cargo transfer point in November1996. Long a
key refueling stop because of its geographical relation to Asia, Anchorage
will now open a new page in Pacific air cargo history and improve the
routing of your freight.
- The Eye Of TWA Cast South ............. as the financially troubled
U.S. carrier is said focused on entry to the profitable South & Central
American markets where it no longer operates. Too little too late?
- Northwest Air Prepares For Possible Strike .............. with
request for federal mediation in contract talks with pilots. The Air Line
Pilots Association, representing 6,000 NWA pilots, and management exchanged
contract openers about 1 year ago. Two weeks ago the NWA pilots' Master
Executive Council approved the formation of a strike preparedness committee.
The dynamics of such negotiations are seen to be changing as the aviation
industry expands and the demand for qualified flight officers increases. U.S
. airlines are expected to hire a record 4,000 pilots this year, one third
more than in 1996. More, the industry is facing a record level of pilot
retirements as senior jumbo jet captains reach mandatory age.
- British Airways Post Strike Woes ........... may cause it to lose
more than US$100M from labor problems that include last month's 3 day strike
by the 7,500 member flight attendant union. Now the line's ground crew union
also is talking about calling a strike at Heathrow over the airline's plan
to sell off its remaining inflight-catering service. Stay tuned.
- Northwest Air & KLM Air Bury Hatchet ........ as KLM has agreed
to sell back its ownership stake in the U.S. carrier for more than US$1B,
more than doubling its initial investment. Recent difference aside, the
lines also said they will replace their partnership with long-term contracts
to keep the profitable alliance going. The alliance began in 1989, when KLM
invested US$400M in Northwest to save the carrier from bankruptcy. Relations
have been strained for the past 3.5 years over KLM's efforts to increase
ownership in Northwest to 25% ........ and fears of a possible take over.
- Polar By Popular Demand ......... has announced that on Aug. 7,
1997, it will bring back the U.S. flag to Prestwick Int'l to meet increased
U.S. shipper demand for direct air service to the burgeoning Scottish
economic center. Polar will provide service to Prestwick 3 x week with B-747
freighters, providing carriage over New York to shippers from points in the
- Austin Ready For Freight ............. with a new US$20M air cargo
facility at Austin Bergstrom International Airport, Texas. Opened 2 years
before the airport will commence passenger moves, the site is a former U.S.
Air Force base. Air cargo has been increasing in Austin an average of 16%
annually since 1992, making it the 3rd largest air cargo market in the
state. Current tenants at Austin- Bergstrom include FedEx, Burlington
Express, Airborne Express, DHL, Emery & UPS.
- Kalitta Cos. & Kitty Hawk To Wed .......... with merger of
their air cargo & air charter logistics companies. Kalitta Cos. include
American International Airways Inc., American International Freight,
American International Cargo, Kalitta Flying Service Inc., Flight One
Logistics Inc. and O.K. Turbines Inc. [AIA will continue as a separate
entity.] Kitty Hawk, operating its own and leased aircraft, provides
on-demand and contract air freight charter service throughout North America,
S. America and the Pacific Rim.
- FedEx Says B-727B Situation "No Problem" ............ as
a result of the proposed FAA airworthiness directive issued concerning B727
aircraft (for details see The Cargo Letter ). More than 90% of the
cargo containers FedEx currently uses on these aircraft weigh less than the
limits FAA has proposed. The vast majority of the company's containers
currently meet FAA weight limits, though FedEx will seek approval for
smaller "demi" containers which FAA has not addressed.
- Delta Air To Brazil .......... with application the U.S. Dept. of
Transportation (DOT) seeking authority to operate code share/blocked-space
flights with Transbrasil Airlines between the U.S. and cities in Brazil.
Pending approvals, service will begin 26 October 1997.
- Polar Air Cargo An Indian Success .........as only 6 months after
the LAX (Long Beach) based carrier's initial flight to India, Polar has
increased its frequency from 1 to 3 weekly New York-Europe-New-Delhi
- Peru Gets U.S. Approval .............. with FAA grant of a Category
I rating, meaning that the nation meets safety standards set by the
International Civil Aviation Organization (ICAO).
- KAL Opens New HQ ............ with its new US$250M Korean Air
Operations Center. Korean Airs world headquarters includes a 7 story main
building & 13 annexes which will accommodate 9,000 people. The move is
part of the carrier's long-term effort to make Seoul the aviation hub of
Northeast Asia in the 21st century.
- Arrow Air Appoints New General Agencies ............. to pursue new
sources of air freight in Asia, Canada & Europe. The Miami-based
all-cargo airline, which recently appointed CIAC as its general sales agency
for 13 Midwest U.S. states, has added Pacific Express Company of Taiwan, to
develop new cargo markets in Asia, with emphasis on Taiwan and Hong Kong;
..... JAMP Interfreight, to do the same throughout Canada & Latin
America; ...... Globe Air Cargo for all of Europe except the U.K. &
Ireland, ........ and Air Marketing Associates, Ltd., (AMA) for Britain,
Ireland & Wales.
- Emery Worldwide Expands ......... with 4, L-1011 freighters to its
N. American fleet on a short-term lease basis in anticipation of strong
cargo volumes thru early 1998 in service to Dallas, Los Angeles, San Jose
&Portland, Oregon. Each L-1011 has a cargo capacity of 126,000 pounds,
replacing previously used DC-8Fs with cargo-lift capacities of 80,000 pounds
each. Three of the L-1011s are leased from American International Airways,
Inc. and the other from Arrow Air, Inc.
- Caught On Horns Of A Dilemma ............ as a Colombian man posing
as a bullfighter was arrested on 31 July at Madrid after airport police
discovered 37 pounds of cocaine sewn into the 8 matador costumes he was
carrying. ``I'm a bullfighter and I've come to tour Spain,'' he said. But
officials found his statement to be bull.
OUR "C" Section: FF World Ocean News
- LYKES Did It !!! .......... as the U.S. flag carrier emerged on
July, 29 from the protection of Chapter 11 Bankruptcy. Good luck LYKES !
- Hyundai Goes Global ............. as the South Korean carrier
Hyundai Merchant Marine (HMM) has effectively joined the Global Alliance in
a 5 year deal with the 3 Global Alliance carriers, APL, OOCL & Mitsui
OSK Lines, to share vessel space and coordinate sailings in the transpacific
and Asia-Europe trades. The 4 carriers will also discuss sharing terminal
operations and feeder services. HMM (72 vessels) should be functioning as a
full Global Alliance member in the first quarter 1998. Hyundai will be
replacing Nedlloyd in the consortium now that recently merged P&O
Nedlloyd has opted for the Grand Alliance. HMM's move will not, however,
remove all uncertainty from the future of the Global Alliance since APL is
being bought by Grand Alliance member Neptune Orient Lines. In other news
....... HMM and Shipping Corporation of India are starting a weekly
fixed-day containerized service between Singapore and Mumbai, India in
- Far East To EU CTNR Traffic Up ............. as in first quarter
1997, 589,300 TEU were shipped from the Far East to Europe, an increase of
8.2% over same period 1996.
- Vancouver Opens Deltaport ........... a new container terminal,
linked with CN's continental rail network. It is one of the most advanced
terminals of its kind in the world and effectively doubles Port of
Vancouver's container-handling capacity.
- Brazilian Pirates Have Drug Connection .............. as local
police have tied pirate attacks on 7 ships in Guanabara Bay to drug
trafficking. In all the attacks, men boarded the vessels from two small
boats at night. Six were foreign-registry.
- Antwerp Fastest Growing EU Port .......... as the Antwerp Port
Authority reports that throughput increased by 13.44% to 2.65M TEU for 1996.
Most other European ports registered slow growth due to poor economic
performance in the region. Throughput for the first 6 months of 1997 was
720,000 TEU loaded at the port and 692,000 TEU discharged.
- Panama Canal Traffic Down ........... by 4.5% to 10,017 ships (36.7
daily transits) from October 1996 to June 1997. Toll revenue for June fell
3.8%, to US$38M, compared with the same month last year. Meanwhile, U.S.
West Coast ports boom.
- OOCL To Jakarta & Manila ............ beginning this month.
- FMC Revokes FF Licenses ............. of Total Transport, Inc.
(License surrendered voluntarily) and Universal Freight Forwarders, Ltd.
d/b/a Universal Freight Forwarders & Customs Brokers, Ltd. (License
It has been another tragic month for those who risk their lives to transport
our goods by sea. When discussing the need for Marine Cargo Insurance, please
let your customers know that ................
1.] 11 July the master of the M/V Sibirskiy-2117 (Russian) was killed in his
cabin while the ship was docked at the Port of Masan, South Korea. The whole
crew had been drinking heavily from the time it left Nakhodka. Following the
strangulation of the master, an attempt was made to set the cabin on fire;
2.] 19 July M/T PetroLab (Canadian) had an explosion and fire aboard while
preparing to load petroleum products at St. Barbe, Newfoundland, Canada. The
fire was extinguished but the wharf continued to burn. The owner was killed
& 3 injured.;
3.] 19 July Two crew members were killed, one missing and another injured
following an explosion in an empty cargo tank aboard M/T Crane North
(Philippine) The ship was anchored in an anchorage off Batangas, the
4.] 21 July M/V Andacollo (Liberian general cargo) had a gearwheel failure at 18
degrees 59 min. north, 158 degrees 39 minutes west. The ship was towed to
Honolulu by the tug Manuokekai. Andacallo was sailing from Callao, Peru, to
Kobe, Japan, and was loaded;
5.] 21 July M/V Eagle Dawn (Cypriot containership) had a fire aboard off Somalia
and the ship is being escorted to port;
6.] 23 July M/V Ibis (Antigua general cargo) sank after taking on water in a
cargo hold. The ship was sailing from Casablanca, Morocco, to Algeciras, Spain;
7.] 23 July, a woman aboard the 52-foot sailing vessel S/V Eshamy B in the
Atlantic Ocean died while sailing from Mystic, Conn., to Southampton, England.
M/V Liberty Star was diverted to assist. M/V Sea-Land Performance
(U.S.containership) was diverted to transport the body to Lands End, England;
8.] 24 July M/V Fortuna Reefer (Panamanian) ran aground on coral and sand in a
nature reserve near Mona Island, Puerto Rico. The ship has more than 100,000
gallons of fuel aboard. The ship had originally grounded 24 July on the
southeastern boundary of Mona Island. It was sailing from Mayaguez, Puerto Rico,
to Panama City.;
9.] 26 July One person was killed when M/V Mathu Bhum (Singaporean 920-TEU
containership operated by Regional Container Line) collided with one of 3
lighters under tow on the Chao Phraya River in Thailand. The ship sank the
barge, as it sailed to Bangkok, Thailand, from Singapore;
10.] 27 July M/V Thor Emilie (Danish general cargo ship) capsized near Denmark
while sailing from Klaipeda, Lithuania, to Thessaloniki, Greece;
11.] 27 July, 3 crew members were killed and 3 injured on 27 when 26 foot seas
from Typhoon Rosie broke the bridge windows of M/V Yamato Maru (Japanese car
carrier). Those killed include the master and the chief cook. The ship was
sailing from Fukuoka, Japan, to Yokohama, Japan;
12.] 28 July M/V Maersk Tacoma (Panamanian-registry.) was seriously damaged when
it was hit by a tanker on its port side, 82 feet forward of the superstructure.
It has been dry docked in Singapore;
13.] 31 July M/V Adel (Honduran general cargo ship) sank in the Gulf of Aden;
14.] 31 July M/V Goodwill (Panamanian) was reported flooding while sailing from
Dampier, Australia, to Dunkirk, France. At last report, the ship had run aground
in Australia's Cocos Islands and its 21 crew had abandoned it;
15.] 2 Aug. M/V Sea Empress (St. Vincent and the Grenadines) sank after losing
power & flooding the day before while anchored off Mumbai, India, in bad
16.] 3 Aug. M/V Golden Tiger (Taiwanese) ran aground in heavy seas near
Kaohsiung, Taiwan. Three crew members were injured;
17.] 4 Aug. tug Macedon (Greek) was engulfed in a fire while towing M/V Rothnie
(Bahamian general cargo ship) in the eastern Mediterranean;
18.] 5 Aug. M/V Leon (Panamanian) had an engine room fire off Djibouti. The tug
SB-408 has taken the ship in tow towards the Suez Canal;
19.] 7 Aug. M/V Ming Mercy (Taiwanese and operated by Yangming Marine Transport
Corp.) had a 12-hour fire while anchored off Port Kembla, New South Wales,
Australia. It reportedly began in crew quarter's 2 decks above the waterline and
quickly spread, affecting at least three decks in the accommodations area.
Damage is extensive.
............. 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. McD
OUR "D" Section: FF in Cyberspace
Our The Cargo Letter Featured Site .........
Official U.S. Trade Statistics ........ from the International Trade
Commission (ITC),1989-96. Includes values of U.S. imports for consumption
(Customs value, dutiable value, & calculated duties collected); U.S.
domestic exports; information on preferential import programs (GSP, Caribbean
Basin Initiative, Andean Trade Preference Act, NAFTA, and the U.S.-Israel Free
Trade Agreement; etc.
FF/CHB WWW Sites Of Interest ...........
AEPS Airline Employee Placement Service
Air Cargo Newsgroup
All Nippon Air
Airborne Express ....... the renewed site.
Delta Air ...... the renewed site "SkyLinks".
OOCL .......... is claiming a first ever ability to book Far
East cargo from a web site with its Internet Cargo Booking system
Capt. Bernard Wormgoor ......... Naticus Marine Surveyors,
Cubaweb ............ everything you want to know about doing business
in Cuba, especially in a post-embargo or post-Castro Cuba. Business Library for
information on US laws & legislation dealing with Cuba, investment laws,
news, financial and trade information. Classified ads. http://www.cubaweb.com/eng/index.html
Ocean Maine Shipping Co. (An arrival notice &
transshipment agent for Egypt & Suez) [Note: The Cargo Letter does not
charge for ads. We do bring new services to your attention.]
International Signal Flag Index ...... learn the hoists.
Independent States in the World .......... US State
Department listing of current country names. Includes: short & long form
name, country code, name of capital and more.
Preserved Ships Of The United Kingdom
The Cargo Letter Tools For YOUR FF/CHB Business
Asian Financial News From India to Japan
EU Directories ............ over 100M residential &
business listings from The U.K., Germany, The Netherlands, Belgium, Luxembourg,
Italy, Switzerland &Austria. Includes address, phone & fax.
The I Find Engine ........ a parallel search, which searches
all the search engines, merges the results, removes redundancies, clusters the
hits into neat understandable groupings, and returns it all in a quick search.
Big Charts .............. free & unlimited access to
charts, reports, indicators and quotes on 22,700 US stocks, mutual funds and
major market indices. Excellent financial/investment research tool! http://www.bigcharts.com
Data Grabber ............ a free desktop search tool which
comes stocked with 200 public databases ready to mine for information. The 1.1
MB program quietly resides in the background until you're ready to find specific
information on the Internet. Simply enter your search word(s), select a database
and go grab that data! Requires: Windows 95 or Windows NT 4.0; Netscape or IE
Internet Explorer 4.0 (Preview 2) ........... fresh from the
gates of Microsoft. Including all the refined features & technology you've
read about, like dynamic HTML, Webcasting, and the ever popular Active Desktop.
Closer to Microsoft's vision of complete Internet integration with your PC--a
vision that is rumored to figure heavily into Windows 98.
Online Manuals ........ Links to 365 online manuals
pertaining to: Dos/Windows, Internet, networking, Unix, programming, Archie,
FTP, IRC, Moos/Muds, Telnet, Usenet, Listserv, etc.
Internet Spam Control Center ........ get your name of the
junk mail lists. http://drsvcs.com/nospam/ or No More Junk Mail ...........
OUR "E" Section: The Forwarder/Broker World
- Negotiating Your FF/CHB Liability
-- By Michael S. McDaniel, Esq. for The Cargo Letter
YOUR cargo is sent every day to a trusted CFS, CY or trucker for final
disposition or door delivery. What happens when there is a loss or theft?
Unfortunately, we see legal cases almost every week where the
"trusted" CFS or other cargo handler YOU hired informs that its
contractual damage limitation is drastically lower than the US$500 per package
limit provided for Int'l ocean cargo under the Carriage of Goods By Sea Act
(COGSA, Title 46 U.S.C.) or the US$9.07 per pound limit for Int'l air moves
under the Warsaw Convention. In other words, as an NVOCC or Airforwarder YOUR
responsibility for cargo loss or damage is well defined under the house bill
........... but the cargo handler WHO WORKS FOR YOU may attempt to claim
protection under a much lower level of financial responsibility. The argument
will be that YOU agreed to this lower damage limit for the CFS, CY, or trucker.
The damage limitation which the CFS, CY or trucker will attempt to thrust
upon you is usually contained in its invoice for services rendered which YOU
receive. Often the CFS damage limit can be as low as US$100 per package or even
US$1000 for the entire service, regardless of how much freight was involved. A
trucker's limit can be as low as US$0.25 per pound. Such damage limits are
obviously well below the responsibility YOU have agreed to assume for freight
belonging to the shipper/cgnee. In a high value cargo loss situation, what would
Experience has shown that the time to arrange YOUR affairs for dealing with
the potential shortfall between YOUR damage limitation and that of the cargo
handling vendor .......... is before any loss occurs. The consequences of
considering this problem "after the fact" can be disastrous. Indeed,
just how many cargo handling vendors are you using? What is the value of freight
YOU should recognize that in most cases the NVOCC or Airforwarder has the
power to negotiate service provider damage limitations which are equal to those
YOU have assumed under the house bill. If YOUR business is not important enough
for the CFS or trucker to make such an arrangement .......... look elsewhere.
YOUR service provider may be able to build the cost of additional insurance into
its rate in order to equalize the level of loss & damage responsibility.
There are many creative approaches available to the NVOCC &Airforwarder
for protection when YOUR cargo is lost, misdelivered, stolen, or damaged by the
hired cargo handler. We advise YOU to consult with a legal or insurance expert
before discovering that YOUR cargo was sleeping with the wrong crowd. McD [an error occurred while processing this directive]