Industry News
From The Cargo Letter


THE CARGO LETTER [322]
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 lives

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

For your information, this edition of The Cargo Letter has required over 70 hours of our professional work. NOTE: There have been isolated reports of our color edition failing to open on AOL systems. Should the problem be encountered, open The Cargo Letter while on-line.

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 better.

INDEX to The Cargo Letter:

OUR "A" Section: Trade, Financial & Inland News
1. U.S., China Exchange Official Visits - Beijing Boycotts Canal Conf. - Taiwan Shows
2. Freight Forwarder Trade Briefs
3. The Cargo Letter Financial Page
OUR "B" Section: FF World Air News
4. 1998 Air Cargo Internet Symposium
5. Freight Forwarder World Air Briefs
OUR "C" Section: FF World Ocean News
6. FF World Ocean Briefs
7. The Cargo Letter Cargo Damage Dispatches
8. And The Matter Of Poor Malaysia
OUR "D" Section: FF in Cyberspace
9. The Cargo Letter "Cyber Ports Of Call"

OUR "A" Section: Trade, Financial & Inland News


1. U.S., China Exchange Official Visits in Preparation for Summit, Beijing Boycotts Canal Conference, But Taiwan Shows

-- 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 Foreign Trade.

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 States.

2. Freight Forwarder Briefs

3. The Cargo Letter Financial Page


OUR "B" Section: FF World Air News


4. 1998 Air Cargo Internet Symposium

Next year's important event will be held in Oakland on March 29-31. Michal Douglas aircargo@concentric.net 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

5. Freight Forwarder World Air Briefs


OUR "C" Section: FF World Ocean News


6. Freight Forwarder World Ocean Briefs

7. The Cargo Letter Cargo Damage Dispatches

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 Mykonos, Greece;
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.

8. And The Matter Of Poor Malaysia

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 crippled freighter.

``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


9. The Cargo Letter "Cyber Ports Of Call"

Here are our suggested world wide web sites of the week for your business, your information and your amusement ...............

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