THE CARGO LETTER 
Air & Ocean Freight Forwarder - Customs Broker News
7 October 1997
Good Tuesday Morning from our Observation Deck...... overlooking the
officially designated "Cargo City" area and....... Runway 25-Right at
Los Angeles International Airport. This month in transportation has cost many
Contribute your knowledge & information ........ by e-mail to The
Cargo Letter. We strive to bring you useful information which is timely
& topical. Be sure to visit our web site .......... http://www.interpool.com/cargo.shtml
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hours of our professional work. NOTE: There have been isolated reports of our
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Michael S. McDaniel, Editor & Publisher
NOTE: The Cargo Letter is designed to be read using a 12 point Geneva font on
a standard 6 inch e-mail field. Our TECHNICOLOR edition requires AOL v3.0 or
INDEX to The Cargo Letter:
OUR "A" Section: Trade, Financial & Inland News
-- by Warren S. Levine, for The Cargo Letter
SEATTLE, Oct. 5 -- Their 15th Communist Party Congress successfully
completed, Beijing is now preparing for the October 28th summit between Jiang
Zemin and Bill Clinton in Washington, D.C.
Chinese Vice-Premier and Foreign Minister Qian Qichen met with U.S. Secretary
of State Madeleine Albright last week in Washington, and Commerce Secretary
William Daley is on the way to Beijing for meetings with the Chinese Ministry of
In a sharp precursor to the meetings, Foreign Trade Minister Wu Yi called on
the United States to grant China permanent MFN status in an article published by
Xinhua News Agency.
China greatly resents the annual public debate in Congress regarding the
renewal of their trading status with the United States.
Last week Communist China celebrated their 48th birthday. For the first time,
the occasion was officially marked in Hong Kong. In China, the mood was still
high after the announcements of continued economic reforms in Beijing.
But in Hong Kong the responses differed. One woman said that she was sick of
seeing the Chinese flag -- she said it reminded her of the 1989 crackdown in
Tiananmen Square. A father was anxious to experience the patriotic mood with his
son, for the first time, "...as a Chinese."
Half a world away, in Panama, Taiwan's President, Lee Teng-hui was attending
a conference on the future of the Panama Canal. The administration of the canal
will be taken over by Panama on December 31, 1999.
Of significance to China and the rest of the world is the fact that Panama
has official diplomatic ties with Taiwan. One of only thirty nations which
recognizes the Republic of China, Panama is a beneficiary of valuable Taiwanese
investment and capital.
Taiwan contributed US$800,000 towards the Canal conferences, an amount which
pales compared to the US$120 million in loans and US$300 million in investments
the ROC made in Panama last year.
China, however, is the third largest user of the Panama Canal, and it too is
heavily invested in the Central American country.
Although China boycotted the "Canal Congress" because of the
inclusion of Taiwan's Lee, Transportation Secretary Rodney Slater and
presidential advisor Thomas "Mack" McLarty represented the United
- "The Future Of Transportation" .......... is the single
topic in a special issue of Scientific American magazine. The October 1997
issue, on newsstands now, features interesting charts, graphics & photos
to provide a thrilling preview to "The Future Of Mobility" for
air, ocean & inland modes. Christened as "the Boeing 707 of the
seas", you will be introduced to "FastShips" which will use
new propulsion systems and hull design to speed container freight at over 40
knots. The FastShips will slash container transit times and thus may restore
ships to their former status as the driving force in world trade. The
benefits for perishable & other "hot" commodity shipments are
obvious as is a new competition factor for the air mode. Even loading will
be simplified. Gantry cranes will be replaced by a RO/RO system, allowing
the vessel to be loaded lengthwise along rails into the stern. Such new
procedures will reduce turn around time, speed door delivery and create a
more seamless service. Experts see the vessels making only one port call per
voyage, with the result being that all containers will be replaced at once.
Because containers will no longer be lifted & lowered (and sometimes
dropped) into open top holds, both shock & water damage loss should be
greatly reduced. When will this futuristic system debut? The first FastShips
may appear by the year 2000. NOTE: You will find the FastShip article at
- World Bank Names "Big 5" ............ with a Sept. report
predicting that China, India, Indonesia, Brazil & Russia will
"redraw the economic map of the world" in the next 25 years. The
report, "1997 Global Economic Prospects And The Developing
Countries," claims that the "Big 5," which now account for
only 8-9% of international trade, will by 2020 soar to 22% of world trade
.......... with a growth rate of 5.8% a year for the Big 5, compared to a
2.5% rate forecasted for developed nations. Developing nations as a group
are expected to double their share of trade, from 15.7% in 1992 to 29.1% by
2020. The Middle East, North Africa, sub-Saharan Africa & Latin America
are seen to benefit from the emergence of the Big 5, as demand for primary
commodities increases in the 5 nations.
- Circle International Has Turkey Focus ............ with
announcement of a new joint venture agreement with Esin International
Transport, one of the largest diversified transportation companies in
Turkey. The new joint venture is to be called Circle Esin. Esin has been
Circle's independent agent in Turkey since 1995, and was founded in 1974.
Its Int'l surface network focuses on line hauling cargo to/from Russia, the
CIS nations and eastern Europe. In addition to 38 full service locations in
Turkey, Esin recently completed a 65,000 sq. ft. logistics center in
- Fritz Starber Certified ............ as the Canadian subsidiary of
Fritz Companies, Inc. attaining ISO 9002 certification in 44 locations
across Canada. Fritz offices in Rochester, JFK, and San Francisco have
already been ISO 9000 certified in addition to the offices in Taiwan, Hong
Kong, the United Kingdom, the Netherlands, Sweden, Finland, Switzerland,
Germany, &Ireland. Implementation is under way in Houston, Atlanta,
Orlando, Tampa, Huntsville, Jacksonville, Dallas, Austin, Indonesia, the
Philippines, France, Belgium, Austria, Italy, & Norway.
- China Gets Unlikely WTO Support ........... as Japan has signaled
that it is ready to agree to China's long sought WTO accession, but without
China significantly reducing many of its import barriers. Western officials
accuse Japan of looking for a free-ride from the EU & U.S. who are now
left to push China for trade concessions which will benefit many of Japan's
main exports. The U.S. & EU want China to lower car tariffs to below
10%, and to eliminate tariffs on technology products. The Japan-China
bilateral understanding may be setback for the U.S. and EU in their efforts
to pressure China towards these concessions. Commerce Dept. officials are
skeptical that any major trade pact will result from the U.S.-China summit
this month. Despite lowering tariffs on over 4800 products in Sept. from 23%
to 17%, China has been reluctant to make any major trade concessions.
However, China's top economic official Zhu Rongji last week announced a 3
year target for turning around state-owned enterprises, saying that China
has identified "an urgent need to set up a new investment system in
which the roles of government and enterprises are separated."
- Newsletter On Customs' Web Site ............... has information
about U.S. Customs initiatives & the trade community. Check U.S.
Customs' Web site by searching on key words: Importing and Exporting;
Automated Systems; Trade Compliance Redesign/ACE Updates; ACE Redesign
- Exxon Hit By Guerillas ............ as its Colombian unit Intercor
was forced to suspend its coal exports after Marxist rebels dynamited a rail
line and derailed 18 coal carriers in the north of the country a week ago.
Intercor terms the situation "extremely grave" because the
Colombian gov't is unable to guarantee minimum security conditions for its
operations. The Cuban-inspired National Liberation Army (ELN) is said to
blame. Two ships had been standing by to transport a total of about 300,000
tons of coal to Europe. As an aid to the situation President Clinton has
issued a Presidential Determination which authorizes the making of sales
& credits to Colombia of up to US$30M in Foreign Military Financing
under the Arms Export Control Act. Be warned.
- Bridge of the Americas Made "Wider" .......... as the
existing Bridge of the Americas cargo facility at El Paso, Texas, will be
expanded to include a new truck x-ray building, a cargo operations building,
cargo bulk storage/inspection bins, and a HAZMAT staging area.
- USFreightways Gets SEKO ............... with purchase of SEKO
Worldwide and subsidiary companies. SEKO Worldwide is a domestic and
international air freight forwarder with 48 facilities in the United States
an d provides service to 70 countries through both exclusive and
non-exclusive agent facilities. Consolidated revenue for SEKO Worldwide for
1996 amounted to US$105M and for the 1997 year is currently annualizing at
approximately US$120M. Cam Carruth, President & CEO of USFreightways
Corp., said, "We are enthusiastic about the acquisition of SEKO
Worldwide, which will permit us to accelerate our 1998 growth rate, and
provide both international & domestic freight forwarding services to our
- NCBFAA Supports EEEP .......... as the National Customs Brokers
&Forwarders Association of America, Inc. (NCBFAA) has voted to support
the Enhanced Electronic Entry Program (EEEP), which was developed by the
NCBFAA Customs Committee. EEEP would enable every broker to send an
electronic invoice to Customs at minimal cost and grew out of Customs' and
NCBFAA's concern over the lack of brokerage community support of either the
United Nations Electronic Data Interchange for Administration, Commerce
& Transport (EDIFACT) or the Automated Invoice Interface (AII), due
mainly to the cost of the software necessary to prepare and transmit
invoices in these formats. Under EEEP, the invoice info is included in the
ACS summary transmission. It builds upon the CF 7501 information and adds
only those invoice details required under the law. It permits a broker to
program for the transmission of a totally paperless entry, at an estimated
cost of less than $1,000.
- Both ABF & Roadway To Hold Rates ............. ABF Freight
System & Roadway Express have just announced that they do not plan to
implement a general freight rate increase this fall. Both will adjust
generally applicable prices no earlier than January 1998.
- Clipper Worldwide To Reorganize ......... into 3 specialized
business units, being Global Air and Sea Transportation, Domestic LTL Land
Transportation & Domestic Truckload. Clipper is owned by Arkansas Best
- CWX Has Great Chance Of Getting There ........... as Con-Way
Western Express (CWX), a regional LTL motor carrier, has been named one of
California's safest trucking companies in an annual competition sponsored by
the California Trucking Assn. (CTA). This is the 2nd consecutive year the
CTA has recognized CWX for exemplary safety performance.
- How The Internet Has Grown ............... as latest results from
the Internet's most basic measurement of it's size were just released by
Network Wizards of Menlo Park, CA . The Domain Survey attempts to discover
every host on the Internet by doing a complete search of the Domain Name
System. The data is available at http://www.nw.com/
and shows that the Internet currently consists of countless autonomous
networks, representing 1,301,000 domains, with 19,540,000
"advertised" connected computers in 214 countries. Because of the
unknown & potentially unlimited numbers of multiuser computers and
network or application gateways, it is not possible to correlate any of this
information with the number of end users.
- Alitalia. UP with net profit of US$94.9M in the first half of 1997
after losing 310 billion lire in the first six months of 1996. The company
has not made a full-year profit since 1988.
- Amertranz Worldwide Holding Corp. DOWN with announcement that for
the fiscal year ended June 30, 1997, operating revenues were US$75.4M, and a
net loss of US$10.5M or $1.74 per share. The loss includes a restructuring
charge of US$3.4M in connection with the closing of its Amertranz Worldwide,
Inc. subsidiary which incurred significant losses. Following the
restructuring, the company was marginally profitable for the first 2 months
of the September 1997 quarter. President & CEO Stuart Hettleman stated,
"We believe we have stabilized operations and our two remaining
subsidiaries, Caribbean Air Services and Target AirFreight, will continue to
perform well during the remainder of fiscal 1998."
- China Airlines. UP with tripled pre-tax profit for the 6 months
ended June 30 to US$61M. Down sizing of the work force along with a 7.9%
increase in capacity led to a decline in costs.
- FedEx. UP more than double with net income of US$143.3M for the
quarter ended Aug. 31, compared with US$62Mfor the same period last year.
Per share earnings increased to $1.22 from 54 cents. Revenues rose 22% to
US$3.30B from $2.69B. NOTE: FedEx delivered more than 9.5 million extra
packages during the UPS strike.
- Fritz Companies. UP for the 1st quarter of its fiscal 1998 year
increased to US $326.7M, up 20.8% from US$270.5M in the comparable period
last year. Net Revenue (which represents revenue less direct transportation
costs) increased to US$139.2M a 7.3% improvement. The increases in revenue
and net revenue were primarily due to the warehousing and distribution, and
the ocean & air freight forwarding businesses.
- Qantas. UP as profit for the 1997 fiscal year rose 5.6% to US$190M.
Operating revenue only increased 3.1% to US$5.7B, compared to 1996.
- Union-Transport. UP 34% over 1996 with gross revenues of
US$256.4M,operating profits of US$7M and net income of US$4.1M for the six
months ended July 31, 1997. The air & ocean forwarder has 138
company-owned offices in 34 countries.
OUR "B" Section: FF World Air News
Next year's important event will be held in Oakland on March 29-31. Michal
Douglas email@example.com of
the Air Cargo Newsgroup misc.transport.air-industry.cargo
welcomes your comments & suggestions. The program will feature: Internet
Basics (hands-on session for air cargo Internet users), a Air Cargo Shippers'
Forum, a High Tech Shippers Forum, an Air Carrier Forum, an Air Freight
Forwarders seminar on use of the Internet to increase &improve customer
services, workshops on Electronic Commerce for the Air Cargo Sector, and
demonstrations by Internet Service Providers such as IBM, SITA, Worldcom
(AOL/Compuserve), AT&T, British Telecom/MCI and BBN Planet with focus on
Internet Telephony. Speakers will include experts from The Journal of Commerce
Print Group, Oakland Int'l Airport, Port of Oakland, Netscape Communications
Corp., Lands End, the Gap, Levi's, Dell, Compaq, Intel, IBM, Apple, AEI,
Expeditors International, Emery Worldwide, Danzas, Nippon Express, British Air,
Qantas, Lufthansa, KLM, JAL, U.S. Customs, FedEx, UPS and more. Full details and
proposed schedule are at the web site...... http://www.concentric.net/~aircargo
- Happy Birthday USAF ............ as the Department of the Air Force
was established when President Truman signed the National Security Act of
1947 and the U.S. Army Air Corps became the U.S. Air Force on 18 September
.... and into the wild blue yonder.
- Boeing Cargo Report Continues Positive ........... with expected
expansion by as much as 40% between 1996 and 2016 in the US domestic express
market. Inter-Asia air freight traffic is expected to grow by 9%, according
to Boeing Commercial Airplane Group. The International Air Cargo Assn.
(Tiaca) believes the cargo market will grow far more quickly than passenger
- MIA Named For New FedEx Hub ........... as Miami Int'l Airport will
be the site for a new US$50M facility to serve as FedEx's Hub for Latin
America and the Caribbean. Set for groundbreaking in March 1998, the new Hub
will create 400 new high skilled jobs in a facility that will be on a
31-acre site at the north side of the airport along N.W. 36th Street.
The189,000 sq. ft. facility will include reefer storage space, 15 truck
docks, package sort capabilities for 12,000 pieces per hour and dedicated
parking for 11 wide body aircraft.
- Fine Air To Fly .......... as the MIA based cargo carrier has
agreed to improve cargo handling procedures and pay US$1.5M for
"inspection &review" by the Federal Aviation Administration
following the 7 Aug. crash. Company operations were voluntarily suspended on
4 Sept. amid the investigation into the crash of a Fine Air DC-8F that
stalled after takeoff from Miami International Airport. The FAA had accused
Fine Air of ``inadequate control over its cargo operation.'' The agency also
said Fine Air improperly labeled hazardous materials and loaded them on
planes without pilots' knowledge. For details see The Cargo Letter .
- U.S. - Japan "Open Skies" Talks ........... will continue
in Washington beginning October 20, the September, discussions having failed
to result in an accord. Japan refuses U.S. demands to increase flights by
ines other than the four official carriers (Northwest, UAL, FedEx &
JAL). to between 200 and 300, instead suggesting an extra 21 flights. There
are currently no resolution deadlines set, but both sides are impatient. The
subject of flights to 3rd countries via Japan was discussed in working group
meetings on October 2 & 3.
- But UK "Open Skies" Hold BA/AA Union Hostage ............
as the U.S. will not grant approval of anti-trust immunity for the proposed
alliance of American Air & British Air before an "Open Skies"
agreement is reached with the UK. This according to US Asst. Transportation
Secretary Charles Hunnicutt speaking at the International Federation of
Freight Forwarders' world congress in Vienna.
- Say Good Bye To Burlington Air Express ........... as it changed
its name and became BAX Global on 1 Oct. 1997. Visit "BAXWorld"
- Lufthansa Finishes Going Public ............. on 10 Oct. 1997 when
143 million shares, the governments remaining 35% stake, will be offered to
the public for about US$21.00.
- Polar Takes Top Spot ........... as the U.S. Department of
Transportation reports that Polar Air Cargo ranked No. 1 among U.S. carriers
for cargo flown in the first half of 1997. A total of 946,247,000 freight
ton kilometers (FTKs) of cargo were uplifted, placing Polar Air Cargo ahead
of Emery which until 1996 held the top spot.
- DHL1st To Africa & Gets More "Rocky" .......... with
the first African flight of any express shipment company, linking Brussels
& Zimbabwe 5 x week with a DC-8F and a B-737F connection to
Johannesburg, Zambia & Angola. There are also two new DC-9F flight
routes from LAX, connecting cities west of the Rocky Mountains.
- UPS Braces - AGAIN ........... as on 1 Oct. pilots overwhelmingly
rejected what the company termed its ``last, best and final offer'' for a 5
year contract. Still, both sides agreed there will be no strike during the
busy holiday season. Only 39 of the 1,900 pilots are said to have voted to
accept the UPS proposal which would have increased salaries by 19.8%
(Captains would be earning an average US$202,000, co-pilots US$132,000 &
flight engineers US$94,000 by 2002.) over the life of the contract. The
pilots previously said they would reject any proposal lass than 21%. UPS
estimates it lost 5% of its customers and US$600Min revenue during the
strike. NOTE: FedEx has announced that it retained about 15% of the extra
9.5 millions packages the company carried during the August strike
- UPS Gets Ready For The Cold .......... as with 130 days to the
start of the Olympic Winter Games in Nagano, Japan, UPS Worldwide Express
envelopes with Winter Olympic images are rolling off the presses. Some 80
million commemorative Olympic-themed envelopes are available to UPS
customers as part of UPS's worldwide sponsorship. They haven't told the UPS
- UPS To Saudi Arabia ......... by adding Riyadh, Jeddah and Al
Khobar to its service to/from the UAE, Bahrain, Qatar, Kuwait, Oman, Jordan,
Lebanon, Syria, Yemen & Israel.
- UAL Furthers Freighter Force ......... with a new Int'l cargo
center at Douglas/Charlotte Int'l Airport. Set to open in November the new
cargo consolidation center will provide 26,000 sq. feet of space in service
to the Colombia, Charleston, Greenville, Raleigh/Durham & Greensborough
areas. Two additional DC-10-30Fs are coming on line this month to extend
services for JFK, SFO, NRT & Kimpo. UAL began Int'l freighter service in
March, moving via Anchorage (proposed new hub) between Chicago & LAX
& Osaka, Taipei &Manila. Total cargo ton miles for August were
246,821,000, up 24.0% from198,977,000 a year ago.
- Arrow Air Puts New Services In Its Quiver ......... with weekly
nonstop flight to Iquitos, Peru, the only all cargo service, continuing on
to Lima. Arrow will increase its Paraguay & Ecuador services from 2 to 3
- And Soon The Kid Will Learn To Walk! .......... as Delta Express
marked its FIRST birthday on 1 October with a celebration at Orlando Int'l
Airport. As part of the festivities Delta Express showcased a vintage 1929
Travel Air, the first passenger aircraft of its grown up parent Delta Air.
Newborn Delta Express added cargo services in February and flew its
millionth passenger in March. Delta Express utilizes a dedicated fleet of 25
Boeing 737s. Parent Delta Air carries more passengers worldwide than any
other airline. Delta, Delta Express, the Delta Shuttle, the Delta Connection
carriers and Delta's partners operate more than 5,090 flights each day to
320 cities in 42 countries.
- Boeing Gives Birth ......... as its Commercial Airplane Group began
building the largest member of its 757 airplane family -- the 757-300 last
month. The airplane will be similar to the 757-200, but the fuselage is
extended 13 feet, 4 inches in front of the wing and 10 feet behind it. In
comparison, the 757-200 is 155 feet, 3 inches. The 727-200 is 153 feet, 2
inches and the venerable 707-300 is 157 feet, 11 inches. Because of its
greater length, the 757-300 has nearly 50% more cargo volume than the
757-200. The overall benefit for the airlines is cash operating costs 1/3
below the early model 747s. Meanwhile, Boeing is studying several new wing
designs for the 747 with an eye to increase volume & fuel capacity. A
first stretch 747 version could be launched next year and enter service in
2001, two years before Airbus's proposed Super-Jumbo A3XX will begin
commercial operations. Last, Boeing recently joined the fuselage sections of
the 100th 7 77 airplane.
- Gender Change Operation For China Air ........ as Boeing has
announced that it will modify an additional two 747-200 passenger airplanes
into freighter configuration for China Airlines of Taiwan. Under the
contract, the 1st aircraft is scheduled for induction into Wichita's
Commercial Modification Responsibility Center in July '98. With these
modifications, the planes will be capable of carrying 120 tons of cargo
distances of 4,000 air miles. China Air continues its cargo focus.
- EVA Air Adds Freighters ........... as the Taiwan carrier has
ordered two Boeing MD-11F planes for delivery in 1998. The MD-11F can carry
more than 90 tons of payload on nonstop flights exceeding 4,300 nautical
miles or more than 100 tons on shorter routes. With 15,500 cubic feet of
main deck space, the plane accommodates up to 26 standard 96-inch x 125-inch
freight pallets. Three lower deck compartments provide an additional 5,566
cubic feet of cargo space.
- Cargolux Adds Freighters ........... with delivery of its 4th
Boeing 747-400F freighter, 8th in the fleet. Another new 747F for this cargo
carrier of the Grand Dutchy of Luxembourg is scheduled for delivery in
November. The 5 plane deal is valued at US$825M. But ownership interests are
changing as SAir Logistics division will acquire a 24.5% equity stake in
Cargolux from Lufthansa AG .
- Tower Air Extends With Affiliated ........... on the cargo
agreement with Affiliated Freighters Ltd., exclusive sales & marketing
agent for Tower Air's freighter service between the US & Hong Kong, to
include addition of a second B-747-200 starting in March 1998.
- Air New Zealand Becomes Dedicated ........... with dedicated
all-cargo service from Atlanta Int'l to Aukland & Sydney, Australia, via
LAX. The new service operates on Saturday utilizing B-747F freighter
aircraft. There are now 17 all-cargo airlines operating at Hartsfield.
- Lan Chile & American Wed ........ with agreement to form a
cooperative alliance that includes reciprocal code-sharing between the U.S.,
Chile &other destinations. The move is considered strategic, given that
Chilean air traffic grew 25.6% in the first 7 months of 1997. Lan Chile
captured 42.6% of the domestic flight market followed by Ladeco with a 32.3%
share and Nation al Airlines with a 16.3% slice.
- Northwest & Asiana Airlines Divorce ......... and will end
their code share agreement Oct. 30.
- KLM & Northwest Dating Again ......... with a 10-year joint
venture agreement singed on 29 Sept. The agreement puts an end to 2 years of
legal battles in which Northwest feared it was being targeted for a takeover
by KLM. The two carriers currently have 30 global partners and operate
nearly 60,000 code share flights each month to 249 cities in the US.,
Europe, Middle East, Africa &India. The airlines said they will now
expand the joint alliance, to include a common cargo booking system.
- Burlington Gets ......... the remaining 50% shareholding of its
South African partner, making this another fully owned subsidiary in the
company's growing international network.
- Virgin In Africa ? ......... as Virgin Atlantic Airways wants to
start services to Nigeria, Kenya, Ghana and 4 or 5 other cities in Africa,''
says Chairman Richard Branson. Meanwhile Virgin Atlantic Cargo &
Malaysia Air have new, joint service to Malaysia, Australia & Japan,
starting last week with MD-11F freighter service from London to Kuala Lumpur
on Wed. & Sat., via Melbourne to Osaka.
- Pan Am Plans A Carnival ............ as its stockholders voted to
approve the carrier's US$62M acquisition of Carnival Air Lines Inc.
- Qatar Airways To Go Public............ in 2 years by offering its
shares to private investors. The line is 70% owned by the Qatar ruling
- ValuJet Flies Again ......... as it began operating last month as
AirTran Airlines and along with its merger partner, Orlando-based AirTran
- Hawaiian Volume Way Up ........... as Cargo Ton Miles (CTMs) flown
in August were 4,387,000, an increase of 19.8% from 3,662,000 flown in
August 1996. CTM's through August were 38,196,000, an increase of 16.9% from
32,663,000 for the first 8 months of 1996. The company will benefit from a 2
year moratorium on State of Hawaii landing fees effective September 1, 1997,
which accounts for 1.6% of overhead expense.
OUR "C" Section: FF World Ocean News
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.
THIS WAS A BAD MONTH as ............
1.] On 5 Sept. an engine room explosion and major fire aboard the M/V Western
(St. Vincent) killed one crew member and injured 5 others;
2.] On 7 Sept. M/V North Islands (Cypriot) lost a propeller and ran aground near
Llolleo, Chile, at the mouth of the Maipo River. Battered by heavy seas, a bow
storage area filled with water and the ship broke in half;
3.] On 8 Sept. the log carrier M/V Haida Monarch (Canadian) ran aground near
Ramsbotham Island in British Columbia, Canada;
4.] On 9 Sept. M/V Cordiality (Panamanian, operated by COSCO.) was attacked by
members of the Liberation Tigers of Tamil Eelam off Sri Lanka. An ensuing fire
severely damaged the ship's accommodations & engine room. Sri Lanka Navy
vessels battled about 15 LTTE boats for 3 hours following the attack. Two Sri
Lanka Army soldiers & 5 civilian workers were killed along with 25
guerrillas who lost 5 boats. Five crew of the 32 aboard are missing;
5.] 9 Sept. M/T Presidente Arturo Umberto Illia (Liberian) had an explosion at
Argentine Navy's Puerto Belgrano Naval Base near Bahia Blanca, Argentina.
Maintenance was being done and welding is suspected as the cause of the
explosion. Twelve people were injured and several craft nearby were damaged;
6.] On 10 Sept. a CTNR loaded with 21.6 metric tons of cyanide fell into the
harbor at Algeciras, Spain, while being unloaded from a ship;
7.] 10 Sept. M/ T Sin Kriangkrai (Thai tanker) caught fire and sank in the
Andaman Sea off southern Thailand with 2 deaths;
8.] 10 Sept. M/T Sin Kriangkari (Thai tanker) caught fire, exploded and sank in
the Andaman Sea off western Thailand while lightering cargo from another tanker.
The master was killed, 2 crew are missing and 2 more were injured. There have
been rumors that the diesel was for use by a covert Bangladesh military force;
9.] On 11 Sept. a Federal Nigerian Air Force aircraft bombed the M/T Napteco 1
(Sierra Leone tanker) at Freetown, Sierra Leone, killing the chief engineer for
Sierra Leone's National Petroleum Co. and a 2nd engineer;
10.] 12 Sept. M/V Enterprise (Norwegian) had a main engine failure while sailing
to Port Kembla, Australia, and was taken in tow. Scotty is doing everything he
can to restore the warp drive;
11.] 12 Sept. M/V Hermelin (Thai) had a fire in its No. 5 cargo hold;
12.] 14 Sept. M/T Eeklo (Kerguelen Islands petroleum gas carrier built in 1995.)
ran aground in the Scheldt River near Hansweert after propulsion problems;
13.] 15 Sept. U.S. Navy's O-1-class (or Holland type) attack submarine U.S.S.
O-9 was located in 420 feet of water 17 miles off New Hampshire. The submarine
sank 20 June, 1941, with its crew of 33, on a test dive after being reactivated
to train submarine crews at New London, Conn.;
14.] 15 Sept. two are killed in an engine room fire aboard M/T Pioneer Louise
(Liberia) while sailing from Saudi Arabia to South Korea;
15.] 16 Sept. M/V Wasan (North Korean general cargo ship) ran aground on sand in
high winds off Shibushi, Japan, developed a list and was abandoned by the crew;
16.] 16 Sept. M/V ASL Sanderling (Canadian motor ro/ro) contained a fire aboard
the ship which has been escorted to St. John's, Newfoundland, Canada;
17.] 16 Sept. M/V Express Santorini (Greek ro/ro) drifted and ran aground near
18.] 17 Sept. U.S. Coast Guard personnel boarded M/V Hercegovina (Croatian) at
the Snell Lock of the St. Lawrence Seaway. Believing the bridge crew may have
been intoxicated, New York State Police officers were summoned to 3rd mate, Duro
Horvat, had a blood alcohol level above .04 percent (next stop: coma). Horvat,
who was operating the ship's throttles as it neared the lock, was arrested;
19.] 19 Sept. M/V Sunwind (St. Vincent and the Grenadines) collided with M/V
Kamagawa in the Strait of Malacca, near Port Kelang, Malaysia. The bow of
Sunwind was torn off and its forward-most cargo hold began flooding. It was
taken in tow by a tug to Singapore;
20.] 22 Sept. M/V White Angel sank in Dedermans Pond in the Quad Cities area of
the Mississippi River;
21.] 25 Sept. the crew of the Gong Bian (D 4406), a People's Liberation Army
Navy patrol boat from the Shenzhen Border Defense unit, were rescued after it
caught fire off Hong Kong;
22.] 26 Sept. M/V Magway (Myanmar) and a fishing vessel collided in the inbound
lane of the Lanma Channel in Hong Kong. Four members of the fishing vessel's
crew are missing;
23.] 27 Sept. M/V Century Highway No. 1 (Panamanian ro/ro.) and the Strawberry
(fishing vessel) collided 35 miles southeast of Cape Lookout, N.C. The bow of
the Strawberry was damaged and the vessel began to flood but the crew was able
to seal the forward compartment;
24.] 28 Sept. the U.S.tug Nestor lost its radio and was last reported drifting
from Rio Haina, Dominican Republic, to Fort Lauderdale, Fla. A search by
aircraft 28 found nothing; ............
Sadly there were many more cargo incidents and losses for other types
vessels, but we lacked the space to tell you about them. McD
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.
Late September was marked by a dreadful air crash which took 234 lives
followed by an earthquake that killed 14 more. Hours later on 27 Sept. two cargo
ships collided off the west coast of Malaysia, where thick smoke from forest
fires has hindered visibility. Survivors in the haze-cloaked waters off Malaysia
listened helplessly as trapped shipmates slid beneath the seas with their
``I saw the ship going down after splitting into two as a result of the
impact,'' said survivor Cartik Venghatraman. "The ship sank in less than a
minute but by the grace of God I am still alive.'', he said. The supertanker M/V
Mount 1 had rammed into the Indian-registered cargo ship M/V Vikraman in the
Strait of Malacca, where thick smoke from forest fires obscured visibility.
Officials confirm that 29 crew members of the Mount 1 are dead after the vessel
sank south of Port Dickson, about 70 miles southwest of Kuala Lumpur, the
capital. Dozens of rescue ships and more than 100 navy personnel scoured the
area but found no other survivors.
The collision happened hours after an Indonesian jetliner crashed 255 miles
away while descending through the thick haze that has choked much of Southeast
Asia, killing all 234 aboard. The freighter's 5 survivors said the impact threw
them into the sea, where they were rescued hours later by a Thai cargo vessel.
On Sept. 20, two other cargo vessels collided in the Strait, though no
casualties or major damage were reported. It was the 3rd collision this month in
the Strait, which has been enveloped in the thick haze.
OUR "D" Section: FF in Cyberspace
Here are our suggested world wide web sites of the week for your business,
your information and your amusement ...............
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- Get Your Name Off of Junk Email Lists ............ if you're tired
of receiving scores of unsolicited, commercial Email messages in your
In-boxes, a visit to these two sites promises to 'remove your name from
hundreds of such referenced lists ........... Internet Spam Control Center
No Junk E-mail
- Dooley SeaWeather Analysis ........... if you are looking for the
position of a particular vessel. This is the place. See amazing animated
maps of vessels moving around the world. World Tracking Charts of merchant
vessels. Weekly charts showing locations of the world's merchant fleet in
all oceans. Archived Tracking Charts for prior weeks (with time-animated
maps). Links to world weather, ocean wave maps & text forecasts.
- U.S. Customs ........... automated section for Import & Export.
Information about ACS, ABI and AMS can be found here plus entry information
and broker licensing.
- Council of Logistics Mgmt Conference .......... sorry, the
conference sold out, but here is the web site. Gen. Colin Powell was to be
or the CLM site
- FreightNet ......... a business-to business intranet dedicated to
tracking freight movement is said to reduce telecommunications costs as a
single connection to the SITA network.
- "Fast Track, the MAI & Sustainability"
- Connecticut Maritime Association ........... the webpage has been
- Legazpi - The World of Spanish Transportation ............. with
everything related to transportation in Spain. Excellent site.
- ANATRANS ........... Federacion Nacional de Agencias de Transporte
de Espana -- Freight Forwarders Association of Spain.
- IC-L & ShipFix .......... is one stop International trade site.
Live WBBR, New York Business Radio station, continuous audio via Netscape or
- Noha Marine Serices, India .......... includes link to India's
largest business index.
- U.S. Department of Transportation (DOT) .........consumer report on
domestic airfares, covering the 4th quarter of 1996.
- Aircraft Trans Actions from "Jetlease" ......... who
bought what commercial aircraft? What are the latest trends? Used airliner
transactions in the past 5 years involved 6,282 aircraft with 1,285 traded
in the past 12 months.
- ABC Interactive World Fact Pages ............. is home to a new
1,200 page interactive world fact book full of CIA facts on all countries
and regions recognized by the U.S. State Dept.
- "SEADATA" .......... is the Lloyds Shipping Index of
sample data bases.
- U.S. Naval Institute
- U.S. Naval & Shipbuilding Museum ............ has a new
feature, entitled "The Lifesavers", dealing with the men,
equipment and legendary figures of the U.S. Life Saving Service, its
predecessors, and its successors.
- The Maritime Arts Collection ............. rare historical maritime
memorabilia offering a unique range of authentic general design drawings of
large merchant ships throughout history. A color brochure is available on
- R.O.C. - Taiwan Government Information Office. Searchable
- Russophilia ............ Russian search engine.
- Transportation and Economic Research ......... transportation
infrastructure investment opportunities in developing countries around the
- Produce Oasis ........... with info & tips about fruits,
vegetables and other perishable commodities.