THE CARGO LETTER 
Air & Ocean Freight Forwarder - Customs Broker News
11 December 1997
Happy Holidays from our Observation Deck...... Overlooking the officially
designated "Cargo City" area and....... Runway 25-Right at Los Angeles
International Airport. Our Tom Bradely Int'l Terminal, called the "Ellis
Island Of The Air", will take on a dazzling new look as the Board of
Airport Commissioners has approved a resolution which will lead to an US$80
million expansion of the world famous facility during the next 3 years. Learn
more about our home at the "2015 The Future of LAX' web site: http://www.lax2015.org/links.htm
Contribute your knowledge & information ........ by e-mail to The
Cargo Letter. We strive to bring you useful information which is timely
Our  edition is a week late, but we have a Holiday gift to you: Ocean
Rates Are Rising !
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:
- Prankster Parody Replaces Special Section
-- by Warren S. Levine, for The Cargo Letter
VANCOUVER, BC -- A creative band of anti-APEC (Asia Pacific Economic
Conference) protesters apparently obtained a number of bales of The Province, a
Vancouver daily newspaper, and replaced the special APEC section with a version
of their own. A reported five hundred copies were distributed.
The front page featured the daily weather prediction "Heavy
surveillance, chance of snipers," rather than the usual damp prediction for
Vancouver at this time of year.
The "lead story" was highlighted by the banner headline
"Dictator Dream Team Knighted at APEC!" The subhead read, "Nike
boss signs APEC strongmen to high-profile endorsement contract."
The writers referred to Indonesian President Suharto as "The Sultan of
Sweat," to Korean President Kim as "Kim Young 'Yosemite' Sam" in
addition to slamming Chinese President Jiang Zemin, Fidel Ramos of The
Philippines and Ernesto Zedillo of Mexico.
They also called APEC "the NBA of sweatshop leagues" for continuing
to ignore repeated charges of inhuman conditions at many Asian shoe factories
and announced a new fictional style, the Air Oppressor.
In a sidebar, Jean Chretien, the Canadian Prime Minister, received his share
of the protesters' ire when they "quoted" him phonetically in broken
French-Canadian English: "We will matchin' dem low wage to wage and strong
arm tactic to tactoe in battles for de Stanley Sweatshops Cup."
The protesters also included factual material in their parody section,
quoting the Canadian Centre for Policy Alternatives and the Christian Science
Monitor. Streetcorners in Vancouver were spray-stenciled with anti-APEC slogans,
and dozens of protesters were arrested in various incidents during the
As the global economy has progressed, global work standards and employee
welfare have suffered, the protesters claim. Free-trading organizations such as
APEC and NAFTA tend to standardize practices at the lowest common denominator,
and have been cited as a cause of additional pollution, global warming and
increased hunger and poverty.
Reporters Note: From this reporter's personal observations of working
conditions in shoe factories in China and Indonesia, I must agree that the
working conditions are substandard, that the actual cost of a pair of shoes is
probably a smaller part of the landed cost than the advertising, and that most
of the people who work on the assembly lines are young women. I have been to a
factory where infants sit in their carriers under sewing machine tables while
their young mothers stitch away. Levine.
-- by Michael S. McDaniel for The Cargo Letter
The agony is now said to be over according to the Union Pacific Railroad.
Indeed, thousands of rail cars were stalled for days & weeks as the nations
largest Ports of Long Beach & Los Angeles felt the grip of a very different
holiday season ........ that period when merchandise is supposed to reach the
stores for Christmas. For some months now our Great American World Port L.A. has
been stuck in the glue of a rail line unable to perform the simple task of
moving forty foot containers off the dock and to destination without significant
delay. As vessels have diverted to other ports, as merchants have "made
do", and as an entire supply chain has re-invented itself ........ the cost
to world commerce has been too great to measure.
The U.S. Government imposed both investigations & sanctions, and then
went to the point of ordering UP track open to other operators who might better
do the job. Even military traffic chiefs told the railroad in October that it
would use other sources because of unreliable service on Union Pacific's
network, saying that the railroad was late delivering tanks & other
shipments & failed to operate a proper security service.
This said, on 4 Dec. 1997, Union Pacific Railroad told Federal Regulators
that its system is operating more effectively than at any time since mid-summer.
"The serious congestion of recent months is gone," the railroad said
in a filing with the Surface Transportation Board (STB). "As of this
morning, there is no reason to believe that the remaining pockets of congestion
on the system are any more extensive than those one would find on any of the
nation's major railroads."
The Union Pacific reports that it has now cleared the backlog at West Coast
intermodal facilities & has recovered from a late October blizzard that
crippled its key central corridor. The UP wants YOU to know that 1.] its system
wide freight car inventory fell to 331,000 cars on November 27, a decline of
26,000 cars since the Service Recovery Plan was implemented October 1; 2.[ that
the number of cars spotted at customer facilities has increased by nearly 14%
since early October, a sign of dramatically improved operations; 3.] that system
velocity rose to its highest level in nearly 3 months, a development that will
continue to generate more locomotives across the network; 4.] that intermodal
freight in the U.S. increased by over 7% for the first 10 months of this year
compared to 1996. More than 7,300,000 trailers &containers moved across US
railroads, while carload traffic reached 15,065,882 units.
This said, the Union Pacific asks us all to believe that the service we have
all come to expect & rely upon is now restored. We will see.
- U.S. Import Price Drop - 4th In A Row ...... as The Wall Street
Journal reports that prices on imported goods, other than oil, fell for the
4th consecutive month, in part due to the continued strength of the U.S.
dollar. According to The Journal, excluding petroleum, prices of imports
fell 0.3% in October 1997 and declined 2.3% for the 12 months ended in
- A Pacific Bail Out? ......... as leaders of the Asia Pacific
Economic Cooperation (APEC) forum agreed on November 25, 1997 to endorse a
framework that would require financially ailing countries to submit to the
discipline of the International Monetary Fund (IMF) in exchange for billions
of dollars in assistance, the Washington Post reports.
- Look For 10% China Tariff Cut .......... as China has privately
told the U.S. that it is willing to cut its average tariff on imported goods
to 10% from the current average rate of 23% to 26%, according to a Wall
Street Journal article. The reductions would be done in the context of
negotiations over China's entry into the World Trade Organization (WTO), the
article states, and would be effective by 2005.
- Reforms To Shipping Act Over To New Year .............. as Congress
recessed without acting upon changes to the Shipping Act of 1984 which have
been agreed by senate republican and democratic leaders. Shippers' contracts
with conferences & individual lines will be confidentially filed with
the Federal Maritime Commission as part of the new legislation. The public
would still have access to files that record commodities shipped, minimum
volumes, the line-haul rate, contract duration and service commitments,
among other things. Continued FMC funding is provided under the new bill.
The October/November version of the bill states that agreement service
contracts (with exceptions) shall be filed confidentially with the FMC, and
at the same time, a concise statement of its essential terms (e.g.,
commodities involved, minimum volume or portion, line-haul rate, service
commitments, etc.) shall be published and made available to the general
public in tariff format by the common carrier. >>> While in favor
of deregulation, APL President Tim Rhein observed last week that the reform
act has little chance of becoming law.
- Japan Customs Sees The Way .......... and has begun moves to allow
temporary unloading of LCL cargo for transshipment to 3rd countries. Under
previous law temporary unloading of LCL cargo has not been permitted in
Japan. Forwarders have had to struggle through considerable red tape in
order to transship their freight, or declare the cargo as an import. The
action of Tokyo Customs House permits temporary landing of cargo, cutting
out the time- consuming customs procedures.
- U.S. Customs Becoming More Remote ........... as the Remote
Location Filing (RLF) prototype is now on Customs' world wide web site. Get
the details regarding availability, operational notes, eligibility, training
and more. http://www.customs.treas.gov/imp-exp/comm-imp/
- It's Still Made In The USA ...... as the Federal Trade Commission
(FTC) has issued a notice stating that it has decided not to adopt its
proposed "Guides for the Use of U.S. Origin Claims", which
included a 'substantially all' standard (and two alternative 'safe
harbors'), that would have liberalized the use of unqualified 'Made in USA'
claims. Instead, the FTC states that it will continue to enforce the FTC's
traditional 'all or virtually all' standard for unqualified 'Made in USA'
advertising and labeling claims.
- Maersk Becomes Customs "Super Carrier" ............ in a
closer working relationship with the U.S. Customs Service as Maersk
President Tommy Thomsen has signed a "Super Carrier Initiative
Agreement" with U.S. Customs. Program goals are to establish a
drug-free work place, to prevent illegal drugs from being placed aboard
commercial conveyances, and to limit carriers' vulnerability to drug related
penalties. Customs will determine a carrier's eligibility to participate in
"Super Carrier" based on service of high-risk routes,
participation in the standard Carrier Initiative agreement, and U.S.
Customs' ability to provide training & site surveys at the carrier's
foreign and domestic locations.
- A German - Swedish Marriage ............ as German forwarder
Schenker- Rhenus and the Swedish transport group BTL will integrate their
land transport activities in Europe within one overall organization. As the
parent company of Schenker-Rhenus, Stinnes will take a 35% equity in BTL in
which Stinnes will have 51% of the voting rights. Co-operation in ocean
& air cargo between Schenker Int'l and BTL's Wilson Group is also
possible in latter time.
- Roehlig & FW Meyers Join For UK ............ with an agreement
to improve forwarding services between the U.S. & the UK. "The
US-UK trade has been targeted as one of our most important areas of growth.
Roehlig's network will help us to achieve that objective," said Maria
Dempsey, of FW Myers. FW Myers was founded in 1860.
- Wilson UTC Names New Chief .......... as Arnold K Goldstein becomes
president & CEO. Mr Goldstein, previously held a string of appointments
at Danzas Corp. & Air Express Int'l. Wilson UTC has 96 offices in 17
countries around the world.
- Danzas Eyes Central Eastern Europe ............ with establishment
of a new regional division named "Central Eastern Europe" (CEE).
Covering the Czech Republic, Poland & Hungary, it will be headed by
Lucius Jenal, 47.
- JFK Customs CGNEE Reminder ............ regarding the requirement
to record all pertinent consignee information, such as name & address,
on all entry documents, including air/ocean manifests, HB/L, HAWBs, cargo
transfers, delivery tickets, etc. Among other things the info is required in
order to timely notify all parties concerned on shipment arrival; and in the
event of general order, the final disposition of merchandise.
- DHL & TNT Open North Korea ........... as service has begun to
one of the world's last untapped markets for Int'l courier companies. DHL
has been running an experimental delivery service in North Korea since
August, thru a Pyongyang office with 1 manager & 6 locally hired
workers. TNT is also trying a hand with limited operations .........
carefully watched & controlled by the government.
- Prediction Of Brazilian Currency Devaluation ......... as the U.S.
economist credited with predicting the Mexican peso crisis is now predicting
that Brazil will soon be forced to devalue its currency, according to the
Journal of Commerce.
- Is MIA On Its Own? .......... as a Journal of Commerce article
reports that cargo theft rings in south Florida with ties to gangs in Latin
America and the Caribbean have become so pervasive that insurance brokers in
many cases will no longer underwrite inland moves in the area. The article
notes that computers are often the prime target of such thievery .........
as if we didn't know.
- Con-Way Said The Safest .......... as the American Trucking
Association (ATA) in its annual National Truck Safety Contest has named
Con-Way Western Express (CWX) as the nation's safest large fleet trucking
company that operates over 20 million miles annually
- Rethinking The UPS Delivery Van? ............. as a bold robber
with a sharp saw carved a hole in the roof of a Copenhagen postal van and
stole $400,000 last week. The suspect apparently cut the hole while the van
was in its usual parking spot at the Viborg post office in western Denmark.
Then somewhere along the van's 47-mile journey from Viborg to Aarhus, he
entered the back of the van, collected the cash and climbed out through the
hole in the roof. Both the Postal Service & UPS use clear plastic roofs
on some vehicles to improve cargo area lighting. Watch those roofs!
- ALL Nippon Airways (ANA). DOWN as pre-tax revenue for the quarter
plunged 24.4% to 13.54 billion yen. Net profits were down 28.9% from 5.81
yen in the first half of the previous financial year to 5.96 billion yen for
the same period in 1997. The company blames a decrease in April-September
profits on intense competition following 1996 deregulation which permitted
fare reductions & new market entries.
- Atlas Air. UP with net earnings for the quarter ended September 30,
1997 of US$6.2M, or US$.28 per share, compared with net income of US$8.2M,
or US$.37 per share, for the year-earlier period. Revenues for the quarter
increased 31%, to US$104.2M. Operating income was US$21.7M for the quarter,
an increase of 8%. Net income for the first 9 months of 1997 was US$14.3M.
Revenues for the first 9 months of 1997 rose by 33%, to US$280.1M.
- C.H. Robinson Worldwide. UP with announcement of a quarterly cash
dividend of 6 cents per share payable on December 30, 1997. This is the 1st
quarterly dividend since 15 October when the company completed an initial
public offering of approximately 10.6M shares. Founded in 1905, C.H.
Robinson Worldwide is the largest 3rd party logistics company in North
America, with 1996 gross revenues of US$1.6B.
- Eagle USA Airfreight. UP for the freight forwarder as revenues for
the 4th quarter increased 59% to US$91.4M. Net income for the quarter
totaled US$5.2M, a 41% increase over US$3.7M in the 4th quarter of fiscal
1996. Earnings per share of $0.28 for the quarter increased 40% The Company
estimates that impact of the UPS strike on the quarter resulted in
approximately US$6M in incremental revenue which generate approximately 5%
after tax profit for the quarter.
- Expeditors Int'l. UP for the 3rd quarter ending on 30 Sept. as
revenue increased by 28% to US$262.3M, while revenue for the first 9 months
increased by 34% to US$683.9M. Operating income rose 57% to US$19M. Third
quarter net earnings rose to US$11.8 million, up 53%; up 52% to US$25.5 for
the 1st nine months.
- Interpool (NYSE: IPX) UP with 3rd quarter revenues US$40,962,000,
up 9% from 3rd quarter of 1996. Revenues for the 9 months ended September
30, rose to $118,922,000, up 9% same period 1996. Interpool is the leading
international container leasing company and sponsor of The Cargo Letter web
page & showcase.
- JAPAN Airlines (JAL). UP with a sharp rise in revenue for the 1st
half of this financial year of 21.48 billion yen, up 322.4% from 5.09
billion yen in 1996.. The news comes after the airline suffered pre-tax
losses of 16.97 billion yen and a net loss of 9.23 billion yen in the
previous financial year, ending March 31,1997. Net returns reached 20.11
billion yen on a 5.5% increase in operating capital to 633.12 billion yen.
- Pan Am Corp. DOWN with a reported net loss of $21.M for the 3rd
quarter of 1997, which represents a net loss of US$1.83 per share. Total
operating revenues were US$37.3M and total operating expenses were US$53.9M,
resulting in an operating loss of US$16.6M. For the 9 months ended Sept.
30,1997, Pan Am reported a net loss of US$52.7M. The carrier has removed the
majority of its A-300's from scheduled service and suspended its JFK/LAX
- The Freight Connection. UP with record revenues for the quarter
ended Sept. 30, 1997, at US$6.83M, an increase of 10%. For the 9 months,
revenue hit US$19.89M, up 21%.
- Transportacion Maritima Mexicana (TMM). UP with a rise in 3rd
quarter profits for its liner division. However, continuing losses suffered
by the rail operations have depressed its overall results, resulting in a
net loss of US$6.2M.
- Trans World Airlines. UP with improved 3rd quarter results,
including its best quarterly operating income since 1989 and its best
quarterly pre-tax income since 1990. The company reported a quarterly
operating income of US$63.8M, compared to an operating income of US$26.0M
for the 3rd quarter 1996.
- Lufthansa Cargo Unites With 4 Forwarders ............ with
confirmation last week that cooperation talks are taking place with German
agent Hellmann Int'l Forwarders, U.S. firms Air Express Int'l &
Expeditors Int'l, and Hong Kong forwarder Jet Speed. Reports are that under
a new Business Partnership Program, Lufthansa Cargo will develop close
partnerships with selected forwarders & deals with the 4 firms could be
signed this month. Lufthansa Cargo has said publicly several times over the
last year that the airline wanted to forge closer links to selected
forwarders to develop joint products & improved services.
- Cargo Week Approaches .............. as IATA's premier gathering of
the world Cargo Community goes to Beijing the week of 1 - 6 March 1998. Mark
it on your calendars. The 98 event will see the IATA Dangerous Goods &
Live Animals Boards meeting at the same time in addition to the Cargo
Committee, the Cargo Agency Conference and the Cargo Services Conference. A
slate of well focussed seminars and workshops will make this year's Cargo
Week a full featured affair for any cargo specialists with the airlines. The
program, to be updated regularly can be found at: http://www.iata.org/cargo/beijing98
- FedEx Raises The Bar ...... as on 6 March 1998, FedEx Priority
Overnight service will start to provide delivery by 3 p.m. on Sunday to
select zip codes in 50 top U.S. metro areas. The small package industry is
now a 7 day per week business.
- U.S. & Japan: More Talk - No Action ........ as negotiators
have ended a 5th round of market-opening talks in San Francisco without
reaching any conclusions, the Journal of Commerce reports.
- Three Tigers Headed For Crash Landing? ................. as at
least 3 Asian airlines could collapse during an expected downturn in the
region's economic climate, according to an aviation consulting group. The
Melbourne, Australia, based Center for Asia Pacific Aviation says airlines
will be aversely affected by the recent fall out in Asia's financial centers
and by national governments less likely or less able to support them in
turbulent times. The 3 most vulnerable airlines in the region are said to be
Australia's Ansett International, Asiana Airlines of S. Korea & Taiwan's
second largest carrier, Eva Air (currently expanding it's MD-11 freighter
fleet). Australian regional airline National Jet Systems managing director
Warren Seymour said "any airline that is not government-owned is
potentially in jeopardy," not just three. He identified the
predominance of the U.S. dollar in transactions as one of the main factors
in this predicted downturn, hitting especially hard airlines in Asian
countries whose currencies have recently suffered sharp falls. Indeed, with
recent devaluation of the Korean Won, Korean Air & Asiana Airlines are
forecast to record big deficits, expected by some to almost double the
figures recorded in the first 6 months of the year. Worse, the 2 carriers
have to bear a heavier burden on paying more interest on money they borrowed
- Asia Financial Crises Could Shift U.S.-Asia Air Cargo ....... as a
Journal of Commerce article reports forecasts that air freight in S. E. Asia
will grow nearly 10% a year have been shaken since financial crises hit
Thailand, Indonesia, Malaysia, the Philippines, Korea & other Asian
nations this year. The article states that already the growth of U.S. air
freight exports to the region has slowed by as much as 50%, though that has
been partially offset by increased imports from Asia proper.
- China Air Cargo Continues Surge .......... with escalation at a
rate of 25% annually. Cargo transport is over 30% of all air transport in
China and is expected to climb up to 50% of the total in air transport by
2010. China's aviation industry carried 1.15M tons of cargo & mail in
1996, accounting for some 15% of total cargo. This year could see an
increase of as much as 1.3M tons. If so, China will rank 10th in the world
for cargo transportation. Recently predictions are that Far East ground
service capacity is reaching maximum capacity.
- Taipei & Japan Reunited ......... as a 23-year freeze on
aviation ties between the destinations is ended with an aviation agreement
between the Assn. of East Asian Relations (AEAR) & the Japan
Interexchange Assn. When Japan switched recognition from Taiwan to the
People's Republic of China in 1972, the aviation ties were severed in 1974.
Direct flights between Taipei & Osaka will resume in March next year.
Eva Air & All Nippon Air will operate new the flight routes.
- FedEx Flies Goes Strait ........... with operations from within the
2nd cargo terminal in Taiwan's Chiang Kai-shek Airport, after 5 years of
negotiation. FedEx is the only operator permitted to provide flight services
between Taipei & Kaohsiung, in the south where it also hopes to expand.
With the additional space in the new terminal, the company hopes to shift a
larger volume of goods and reduce costs per unit.
- NTSB Findings Are "Fine" ......... as National
Transportation Safety Board investigative material is released concerning
the Fine Air DC-8 crash at MIA in September which killed the crew of 4 and
one person on the ground. Focus continues to be on whether the plane's
45-ton cargo of denim may have shifted. According to the report, witnesses
saw the plane roll from side to side, pitching upward before it crashed. One
witness said the plane was at an 80-degree angle to the ground.
Investigators found only 2 of the 55 cargo pallet locks aboard the doomed
flight were in closed positions, indicating the load might have shifted
during takeoff. It appears the plane was not overloaded, and the NTSB report
included information about 1,000 pounds of cargo being withdrawn from the
flight because of a late plane change. Newly released cockpit voice tapes
recorded ......``Easy, easy, easy,'' from Capt. Dale Patrick Thompson
seconds after the plane took off on Aug. 7 en route to the Dominican
Republic. One second later, 1st Officer Steven Petrosky asked, ``What's
going on?'' ``Oh no, (expletive), no,'' Thompson said. ``Hold on! Hold on!
Keep it light, easy, (expletive).''
- UPS & Downs Of The Strike ........... as the 2 week strike
against United Parcel Service cost the company US$775M in sales for the
third quarter, a $350 million swing in net profit. The competition faired
quite nicely, however. During the 15-day walk out, the U.S. Postal Service
led the pack with a US$450M revenue increase from the flood of business that
UPS was unable to handle.
- MIA Expansion Eyes Pacific .......... as the substantial increase
in US-Latin American-Asian trade prompts Miami to expand and modernize its
facilities at a cost of US$550M over the next 4 years. There will be 18 new
buildings for cargo, giving 3 million square feet of land for warehousing
and offices. When complete, the airport will cover three times the land it
currently occupies. While MIA has drawn little attention as an important
Asian-Latin American cargo hub, a significant amount of Asian-Latin American
goods are currently moved across the U.S. by motor carrier. Moving goods by
air freight direct to MIA instead of, for example LAX, will minimize
transportation times and reduce shipping costs. The Asian-Latin trade has
more than doubled since 1988, when it was valued at US$22.5B, rising to
$51.1B in 1994. Some experts predict that MIA may to go from being the 3rd
busiest Int'l airport, to rank #1 by 2000. MIA is expected to handle around
2M tons of air cargo in 1997, including 90% of fresh flowers and 50% of
fruits &vegetables imported by the U.S. from Latin America. Watch for
Tampa to take the overflow.
- MSAS Follows MIA Beat ............ as the logistics provider has
opened a 65,000 square-foot logistics center at MIA, its gateway to Latin
America. The new MSAS Miami Logistics Center will employ 90 people and
combines 15,000 sq. ft. of office space and 50,000 ft. of warehouse space
with state-of-the- art logistics & inventory control capabilities,
operating a proprietary AS 400 computer system to handle inventory control,
and more than 9 miles of voice &data communications cabling.
- UAL & TWA Join "Cargo Community" ........... as TWA
joins United [the largest passenger/cargo airline in the world] in speeding
up the pace of electronic commerce in the global cargo industry by linking
in-house computer systems to the "Cargo Community System" (CCS)
and Internet tracking service, CargoConnect. UAL & TWA cargo customers
are now able to efficiently access tracking and status information on their
products in transit through a simple Internet connection. Syntegra, a unit
of British Telecom, has developed &linked this system. http://www.ccx.com
or reach UAL directly ......... http://www.ual.com.
- AirNet To Be The Night Stalker ......... as a long-time leader in
the overnight delivery of canceled checks, the company sees great market
potential with those companies & individuals working into the wee hours
of the night with small packages when FedEx & UPS are not available for
pick-ups &deliveries. The company offers next-day & same-night
services. AirNet, a publicly traded company since May 1996, turned in record
earnings of $3.6M for the 3rd quarter ended Sept. 30.
- Delta Files For Latin America Expansion ............. with an
application today with the U.S. Dept. of Transportation seeking authority
for daily nonstop service from JFK to Sao Paulo & Rio de Janeiro, as of
October 1, 1998, pending government approvals. The move follows an agreement
reached last month between the U.S. & Brazil allowing 7 additional
weekly frequencies for U.S. carrier service to Brazil. More to it's
"Worldport Atlanta hub concept, Delta proposes to operate daily nonstop
service between Atlanta &Lima, 90 days after governmental approvals are
received. Delta recently inaugurated Cincinnati-Atlanta to Brazil, received
authority to operate daily from Atlanta to Caracas, and has requested
authority for service between Atlanta & Santiago, Chile.
- Mexicana On Target ............... as recent stats show that
Mexicana has a 45% share of the Mexican air freight market and a 30%
penetration in the U.S.-Mexican air cargo market. Mexicana is close to
joining the Star Alliance.
- Tampa Could Crash .......... as the Colombian all-cargo carrier
announced at the Air Cargo Americas Conference held October 29, that it is
experiencing difficulties that threaten operations. This despite the fact
that Martinair took a 40% stake in the airline last year, looking to connect
the flower markets of the two countries. Tampa's once protected position of
being state owned is over, with deregulation imposed by the government.
- Philippines Opens Chile Route .............. as the 2 countries
sign a 10 Nov. agreement allowing dedicated freighter service between them.
Other terms in the agreement give China carriers landing rights in Manila
& other Philippine destinations. Philippine carriers GrandAir & PAL
will serve Beijing, Shanghai & Xiamen, in addition to the present cities
of Guangzhou &Shenzhen.
- Iran Scores "Prized" Uganda Route ............ as Iran
Air has announced its start of weekly cargo flights on the fabled cargo
route between Iran & Uganda, due to large exports of Ugandan fruits and
sizeable imports of manufactured goods from Iran. Iran Air also maintains
its presence in India &Pakistan.
- Dutch Cargo Market Grows ........ with a 10.9% int'l cargo
throughput increase via the Dutch airport, Schiphol in 3rd quarter 1997.
First 9 month performance was up 8%, at 850,000 tons.
- Will Seats Require An Extra Charge? .............. as United Air
decided to get tough on bargain flyers out of Des Moines, Iowa in a test it
hopes to expand to its entire network. Starting this month, passengers
paying the lowest fare out of Des Moines will be limited to only one
carry-on bag instead of the customary two, in addition to being forced to
use electronic paperless ticketing and to buy their ticket immediately at
the time of reservation. The move is an attempt to cut costs on low revenue
passengers and to please business travelers complaining that they often
cannot find storage space for their carry-on luggage. Further punishments
for Iowa residents traveling on UAL have not been announced. But on 28 Nov.
Northwest Air adopted the "one bag" rule for low fare passengers
- Back To The Future ........... as long distance flyers could enjoy
added comforts aboard future Boeing 777 flights. Designers are trying to fit
in bunk beds, mini-gyms & compact casinos. By removing some of the
cargo- handling equipment in a longer-range version of the 777 now being
considered, comforts of the 1950's such as stacks of double bunks or even
small bedrooms could be installed. One airline is discussing a small casino,
according to Boeing Commercial Airplane Group. Others are considering
conference or work centers, lounges, workout rooms & children's areas.
- Qantas Increases LAX Cargo Frequency ........... with more DC-10
freighters per week from Sydney to LAX on Mon. & Thurs., and from LAX on
Tues. & Sat.
- UAL Cargo Across The Pacific ......... as United Airlines Worldwide
Cargo began construction on a US$7.8M cargo transfer facility in Honolulu
this week. The facility, which will include a perishables unit and 58,000
square feet of warehouse space, is part of a US$1B facility investment
system wide for UAL. The transfer facility will serve as a connecting point
between Japan & the U.S. mainland and for local cargo traffic in &
out of Hawaii.
- NCBFAA Taps Fritz ............... as the National Customs Brokers
and Forwarders Association of America (NCBFAA) selected Fritz Companies,
Inc. to conduct the "Cargo Network Services' (CNS) 1997 IATA/FIATA
Introductory Air Cargo Training Program" at DFW Airport last month.
- Northwest Volume Continues Climb ........... as cargo ton miles
(CTM) systemwide were up 6.8% in November 1997 to 216.5 million CTM, a
increase of 13.8M CTM from 1996. The increase was 9.8% in October.
- World's Largest Cargo Airlines ........... are 1. United Parcel
Service, 2. FedEx, 3. Airborne Air Freight, 4. Emery Air Freight, 5.
Burlington Air Express, 6. DHL, and , 7. Kitty Hawk.
- The Ultimate Overtime ........ as it is understood that
arrangements can be made for package delivery on Christmas Day by the U.S.
Postal Service to domestic locations. More "can do" info for the
- Pirate Attacks More Severe ............. as In the first 9 months
of 1997 pirates killed 45 seafarers, a 73% rise compared to the same period
last year, and injure other 28 according to the International Maritime
Bureau. It's Kuala Lumpur-based Regional Piracy Center reports: "While
the numbers of piratical attacks have reduced from the same period last
year, it should be noted that there has been an increase in the severity of
the attacks. The number of hijackings & vessels that have been fired
upon has increased. There were 142 reported incidents of pirate attacks on
ships - down 16% year-on- year. Sixty-two attacks were on vessels at anchor,
22 on ships alongside while 30 incidents involved ships underway. S.E. Asia
was a particular danger area with 61 attacks of which more than half took
place in Indonesia.
- MEDFEC Rate Increase ............ as the Mediterranean Far East
Conference (MEDFEC) agreed on 14 October to increase rates on westbound
routes. TEUs will go up US$100, while rates for FEUs will increase US$200 as
of December 1 and to remain in effect until 31 May, 1998. Member lines of
Medfec are CMA, DSR Senator, "K" Line, Lloyd Triestino di
Navigazione, Maersk, MISC, Mitsui OSK, NOL, NYK, P&O Nedlloyd, Sea-Land
& Yang Ming.
- TSA Rate Increase ............. as member carriers in the
Transpacific Stabilization Agreement (TSA) have unanimously agreed to adopt
a US$300 per FEU increase on all current tariffs & service contract
rates, to take effect May 1, 1998. The move will end severe rate cutting in
the Asia-to-U.S. trade that started in 1995 and saw rates fall from US$750
to US$1200 per FEU.. TSA's 15 members serve the trade from Asia to the U.S.,
and include APL, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine
Co., K Line, Mitsui O.S.K. Lines, A.P. Moller-Maersk Line, P&O Nedlloyd,
Neptune Orient Lines, NYK Line, OOCL, Sea-Land Services & Yang Ming. TSA
Dir. Michael Diaz says the 33% drop in ocean freight rates for the eastbound
Pacific lanes is not sustainable. "Carriers must return to pricing
their services on a more consistent and compensatory basis," Diaz said.
- Fewer Carriers Seen By Sea-Land? ........ as Sea-Land's Stehberg
told the Asia-Pacific Transport & Logistics Conference in Singapore last
month that global carriers would be reduced in number from 18 to a dozen or
less in the next 2 years due to renewed pressures from powerful shippers
& freight forwarders as well as continuing vessel overcapacity. Rothberg
predicts that the number of medium-size and or north/south carriers would
also fall to a dozen or fewer, while niche or specialized carriers would be
down to just three or four.
- Maybe Sea-Land Has A Point ............ as Taiwan's Yang Ming
Marine Transport has just postponed plans to obtain 5 new 5,000 TEU vessels.
A slow local economy and weak Taiwan dollar led the company to delay the
order, perhaps until next year. The Taiwan dollar has been devalued by 15%
in the past 2 weeks.
- The New & Improved COSCO ............. as China Ocean Shipping
Company (COSCO) will enlarge from acquisition of Shanghai Ocean Shipping
Company. The company will leave Beijing to relocate in Shanghai and will buy
the shares of COSCO's branch companies in Guangzhou, Shanghai, Tianjin &
Qingdao. The move is said designed to promote efficiency in these times of
falling rates and over capacity. Last month COSCO deployed the new &
massive 5,250-TEU container vessel M/V Chuan He on its North America route.
- Japan Port Dispute Set To Resolve ............. as the Federal
Maritime Commission (FMC) states that in recognition of the recent signing
of a comprehensive Japanese port reform agreement by U.S. & Japanese
governments, the FMC has formalized the final step of that agreement being
that it will not collect further fees assessed on ships of NYK, Mitsui OSK
and K Line in Oct. & Nov. 1997. Whether the FMC will retract its
sanctions against the 3 carriers remains to be seen.
- U.S. Unions: Cooperate Or Suffer ............ as the Int'l
Longshore & Warehouse Union (ILWU) and the Int'l Transport Workers
Federation (ITF) disrupted work on flag-of-convenience ships at Pacific Rim
ports. late last month The ILWU say vessels discovered without labor
contracts "acceptable" to the unions will face "solidarity
action" by dockworkers. The union said such vessels would find it
impossible to be loaded and unloaded. The goal is for the Unions to END
flags of convenience.
- Canal Fix Over Budget (Suprise?) ........... as the cost of
widening the most narrow part of the Panama Canal is now US$300M, up US$75M
over budgeting by the Panama Canal Commission. Today, the canal is too
narrow for vessels to pass one another, causing long delays while ships wait
in line. The widening project is part of a US$1B canal improvement &
widening program. Critics charge that the effort is not enough to make a
difference. The Commission is said considering construction of a 3rd set of
locks along the canal to accommodate larger vessels and increased traffic.
Still, as of 30 Sept., the number of ships crossing the canal was 13,700, a
drop of 563 ships from 1996. Experts claim the reduction is due to the 8.2%
increase in canal fees in January. Canal operating losses are US$2M for the
year to date.
- Taking The Detour .......... as the presidents of El Salvador &
Honduras have approved construction of a Pacific-to-Atlantic Highway to
parallel the Panama Canal. While no start up date has been set, the road
will be built between the Caribbean port of Puerto Cortes in Honduras and
the Pacific port of Cutuco in El Salvador. Reserve your office space now!
Meanwhile, Nicaragua & Mexico continue to discuss the possibility of a
railway to run across the Isthmus.
- Malaysia Welcomes You ............. with plans to change its
Merchant Shipping Ordnance of 1952 to allow foreign shipping companies to
register without having to transfer majority stakes to local firms. 30% of
company equity will need to be owned by a Malaysian citizens if the company
is listed on a Malaysian stock exchange.
- APL Now Only A "Brand Name" ............ as its
acquisition by Neptune Orient Lines Ltd. (NOL) of Singapore was completed
last month. Outstanding shares of common stock of APL have been converted
into the right to receive US$33.50 per share in cash and the company will no
longer be listed on the New York Stock Exchange or the Pacific Exchange.
"APL Limited" will continue to have its headquarters in Oakland,
California. NOL's container liner business will be combined with APL and
operate under the single brand name of "APL". The NOL name will be
used for its non-container businesses, such as chartering. NOL is now one of
the top five container shipping companies in the world.
- Evergreen Expands Southern Service ............. and will enter the
East Coast of South - America U.S. East Coast market in May 1998. The
service will use 7 vessels, operating weekly between South America, the
Caribbean, Panama & the U.S.
- New Singapore Agent For Carotrans ........... as the major
forwarder has appointed Mac-Nels. Mac-Nels has been in operation since 1975,
operates its own fleet of vehicles, and claims an ability to strip
containers and make door delivery within 36 hours of vessel discharge.
- China's New Container Port Opens ....... as the Shantou Int'l
Container Port, begun in 1994 at a cost of US$90M, commences operations in
the south's Guangdong Province. The Beijing-Kowloon Railway will likely
terminate at the port. The port is expected to have the capacity to handle
500,000 TEUs per year.
- China Makes Intermodal Progress ............. as containers moving
on Chinese rails reached 280,000 TEUs in Oct., an increase of over 16%.
Measures taken by the Ministry of Railways to increase the speed of trains
and improve service is making rail transport in China increasingly popular
and decreasing the rate of freight damage. China has thus far resisted
asking the Union Pacific for assistance.
- Port Everglades Evergrows ............ as the Florida CTNR port
will pay US$120M for 270 acres of nearby land. New container yards will be
built on 110 acres, 40 acres will be dedicated to container transfer work,
and 97 acres wi throughput doubled since 1994 to 4.1M tons in 1996 and is
forecast to reach 4.4M tons in 1997
- Will Singapore Become #1? ........... with a throughput increase of
9% for the first 9 months of 1997. If the rate of increase continues at its
present rate, the record of 12.9M TEU will be broken and could even reach 14
million TEUs. The port has become the world's 2nd largest behind Hong Kong
which handled 13.5M TEUs in 1996.
- Hyundai At Tacoma .......... as the famous Port is building the
largest container terminal in its history for this new customer at a cost of
- Lykes Becomes More Strict .......... with announcement that there
have been several changes to the now effective North Europe Eastbound Tariff
LYKS 340: 1.] Free Time for dry containers is now 3 business days (in line
with competition) instead of 4 days; 2.] Demurrage charges have now been
added for empty shipper-owned or leased dry containers; and 3.] Rule 105.A
"Demurrage of Equipment at Loading Port", provides for billing of
demurrage where shippers request a delay in shipment.
- Los Angeles Pilot Strike Ends ........... as Pilots at the Port of
Los Angeles, who are members of Int'l Longshore & Warehouse Union Local
68, have ratified a new 4 year labor agreement with the City after they went
on strike in July. During the strike, only 4 pilots served the port, the 2nd
largest container port in the U.S. Late-night ship movements were prohibited
& daytime movements were by appointment only. Los Angeles is the only
major U.S. commercial port where pilots are civil service employees of the
City. At the time of the strike, pilots were earning U.S.$113,712 annually
compared to a U.S. average of U.S.$195,000 based on a report by Mercer
Management Consultants. Using the report, the pilots sought a wage increase
to U.S.$195,000 over 2 years but the City offered the same percentage
increase offered to other civil service employees, which would have given
the pilots a salary of U.S.$133,000 at the end of four years. Under the new
contract, wages will immediately increase to U.S.$122,376. It will then
increase 2% every 1 Jan. and 1 July for the next 3 years until it reaches
U.S.$140,600. The City also agreed, for the first time, to pay for the
pilots' U.S.$500,000 accidental death and dismemberment insurance & part
of their disability insurance. The port has also created a port pilots
service manager, which will essentially by the pilots' boss. Bill Boland, a
retired U.S. Coast Guard Capt. who handled marine safety & environmental
issues for the 11th District, has been named to the position. The 13
striking pilots will return to work after they complete at least one ride on
an incoming vessel to see changes in the port since the strike began.
- A Fatter Bunker ............ as the Far Eastern Freight Conference
(FEFC) lump sum Bunker Adjustment Factor (BAF) will be increased from
US$5.80 per TEU to $14.43 per TEU on 1 January 1998. The BAF charge
applicable to LCL cargo will be $0.72 W/M from 1 January 1998, to 31 March,
- Promote Your Ocean Work .......... as Maritime Information Systems
(MIS), has launched a free e-mail press release publication service for the
maritime industries. Companies wishing to post their releases on the MGN
website (http://www.mglobal.com) need only send an e-mail to MGN.
- There Was No EDI Record ............ as the Portuguese Institute of
Archaeology believes it has found the remains of a merchant ship that sank
in September 1606. The Nossa Senhora dos Martines sank in a storm off Sao
Juliao da Barra, Portugal, while returning from India with pepper. Everyone
aboard, more than 200 people, were killed. Those aboard included a Jesuit
priest and 2 Japanese noblemen. An astrolabe found at the shipwreck
indicates that the vessel may be the 650-metric ton Portuguese vessel.
Artifacts and information on the wreck will be exhibited at the Portuguese
Pavillon of Lisbon, Portugal's,1998 Expo World Fair.
- Customs Barks ......... as officials in Manila arrested 5 people n
4 Nov. after 2 vessels loaded with 1.5 tons of frozen dog meat were found at
the city's port. The meat was in ice chests "Said To Contain"
seafood. Dog meat is a popular dish in some Manila restaurants though
killing dogs for food is illegal. The confiscated dog meat, which was to be
sold for just over U.S.$1 per pound, was burned. The 5 were to be charged
with illegal transport, violation of meat inspection laws & cruelty to
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.
- London Reports 3rd Quarter Losses ............ as the Institute of
London Underwriters reports that 13 vessels of more than 500 gross tons were
lost worldwide during the 3rd quarter. This year, 63 vessels of 505,103
gross tons have been lost as of 30 Sept., compared to 75 of 520,626 gross
tons in the same period for 1996. Numbers are likely to change as more
vessels are declared total constructive losses. In the third quarter, 74
people were reported dead or missing at sea, but for vessels under 500 gross
tons, as many as 1,400 people were killed or are missing. Over the first 9
months of 1996, 83 people were dead or missing.
- MSC Carla In Major Container Disaster ............. as the forward
section of the 2,868-TEU motor containership [built in 1972 at Landskrona,
Sweden; operated by Mediterranean Shipping Co.], sank 30 Nov. in the
Atlantic Ocean. The forward section took as many as 1,200 to the bottom. The
ship broke into 2 pieces on early 25 Nov. during a storm 110 miles north Sao
Miguel Island in Portugal's Azores Islands. The break-up was at 39 degrees
31 minutes north, 25 degrees 01 minutes west. Weather conditions reportedly
included 30-foot seas & gale force winds. The ship broadcast a message
late 24 Nov. that its rudder had failed and 2 Portuguese from the aft
section. At least 3 crew suffered minor abrasions. The MSC Carla's stern was
taken in tow by the tug Fotiy Krylov for San Miguel Island and was still
under tow at last report at 3 knots, with a 6-degree starboard list, but was
badly sheering. The MSC Carla was sailing from Le Havre, France, to Boston
with 2,400 containers and the surviving section of the ship reportedly has
about 1,000 containers aboard, including 410 FEUs. Forty-three reefer
containers have had their reefer systems restored. More, France's Nuclear
Safety Agency said 28 Nov. that some containers aboard the MSC Carla
contained medical equipment with radioactive components. The agency said
that 3 pieces of medical equipment contained Cesium 137.
- The 2nd Vietnam War .......... as hundreds of fishermen are among
as many as 2,500 unaccounted for after Typhoon Linda hit four provinces of
Vietnam on 2 and 3 Nov. About 455 people were killed and 2,450 boats &
142,000 structures were destroyed. At least 1,132 small boats were missing
off the provinces of Ba Ria-Vung, Ben Tre, Ca Mau, Kien Giang and Tra Vinh.
At Con Dao, some 160 vessels sank.
As to the other disasters of the month, there were so many disasters that we
had no space to report groundings, engine failures, barge losses, fire and
similar incidents ...........
1.] 1 Nov. M/V NOL Amber (Singaporean-registry 38,541-dwt, 2,308-TEU
containership.) ran aground off Goods Island in Queensland, Australia. The ship,
fully loaded, was sailing from Singapore to Brisbane, Australia as part of the
Australia Asia Express;
2.] 2 Nov. as 1 crewmember was killed and 2 are missing after an explosion
aboard the M/T Han Chang No. 5 (South Korean) while anchored at Ulsan, South
Korea, waiting to load cargo;
3.] 4 Nov. Three people of 10 that hid in a container loaded with clothing from
the Dominican Republic were found dead the after the container was unloaded from
M/V Pampero (5,660-dwt containership) at the Port of Palm Beach, Fla. It is
believed they entered the tainer where it was loaded before being taken to the
port. Investigators found bread, biscuits, crackers & jugs of water. A hole
was drilled in to let in air but the hole was blocked by another container;
4.] 4 Nov. a cargo of steel aboard M/V King Ace (Panamanian.) shifted while the
ship was southeast of Kagoshima, Japan. After developing a list, the vessel was
towed the next day to Naha, Japan;
5.] 10 Nov. M/V Bandura-1 sank after it was in a collision with M/V Kota Bintang
(Singaporean-registry) at Chittagong, Bangladesh. Eight of the 9 crew of the
sunken vessel were rescued and 1 is missing;
6.] 11 Nov. M/V Chu Hai (Chinese-registry cargo ship) sank after colliding at
2340 with M/V Asian Hibiscus (Panamanian-registry). The ship sank in the Kammon
Strait off Kitakyushu, Japan;
7.] 15 Nov. M/V Seiun Maru No. 20 (Japanese) capsized and sank at 0200 after
colliding with M/V Sumiho Maru No. 75 off Iwate prefecture, Japan, leaving 1
dead and 3 missing;
8.] 12 Nov. five crew are missing after the sinking of M/V Don Ricardo (Antigua
and Barbuda-registry general cargo) in the western Aegean Sea between the Greek
islands of Kea &Macronissos. The Don Ricardo collided with M/V Muhieddine
VII (Syrian-registry.) in heavy fog;
9.] 19 Nov. M/V Green Lily (Bahamian refrigerated), sailing from Lerwick,
Scotland, to Las Palmas in the Canary Islands with frozen fish, had engine
problems off the Shetland Islands of Scotland. It was taken in tow by the
Gargano (Italian tug) but the tow parted and the Green Lily ran aground.
Battered by high winds and heavy seas, the ship broke up 20 Nov. with 1 dead;
10.] 21 Nov. M/V Kate Maersk (Danish-registry containership operated by Maersk
Line) lost 26 containers in the Bay of Biscay. Weather conditions included high
winds. An investigation has reportedly shown that the containers were improperly
stowed and lashings were too slack;
11.] 21 Nov. M/V Nadine (Syrian registry) sank after a collision with M/T
Fiandra (Greek) in the Aegean Sea;
12.] 22 Nov. M/T Apanchanit No. 5 y) sank 14 miles off Japan's Nagasaki
13.] 24 Nov. M/V An Tai (Belize-registry general cargo ship) sank at Wharf 14 in
the North Port of Port Klang, Malaysia, after it began to flood at near the No.
3 cargo hold;
14.] 26 Nov. M/V Kuroshima (Panamanian motor refrigerated ship) has leaked about
100,000 gallons of fuel that came ashore in Summer Bay, Alaska, polluting 2,400
feet of the shoreine and another 1.6 miles of Summer Bay Lake. The ship ran
aground in high winds off Dutch Harbor, Alaska. Water depth in the area is at
most 7 feet and weather included winds of about 90 knots and seas of 20 feet.
Three crew & the chief officer were killed while the 16 other crew members
were rescued after a lifeboat was pulled to shore by a line fired to the ship.
M/V Kuroshima had arrived to load frozen seafood and had been anchored offshore
but its anchor chain snapped and it drifted;
15.] 26 Nov. M/V Hoegh Mistral & M/T Nordfarer (Bahamian) collided in French
territorial waters south of the Isle of Wight, suffering heavy damage;
16.] 27 Nov. fire began near the engine room of M/T Sansen Maru
(Japanese-registry) 11 miles north- northwest of Masuda, Japan. Sansen Maru is
carrying 780,000 gallons of gasoline & light oil;
17.] 30 Nov. a French Dauphin helicopter & a British Coast Guard Sea King
helicopter rescued the crew of the MSC Rosa M (1,050-TEU containership operated
by Mediterranean Shipping Co.) after they abandoned the ship in the English
Channel. Weather included Beaufort Force 5 or 6 conditions. The crew boarded
lifeboats after the vessel began listing off Cherbourg, France, after its cargo
shifted. The master attempted to return to the ship but abandoned the effort due
to the MSC Rosa M's 38-degree starboard list. The ship is to be beached so that
pumping operations can continue. The vessel had been denied permission to enter
18.] 30 Nov. M/V Clipper Skagen (Norwegian tanker) rammed the F/V Peder Wessel
(Danish) in the Oresund sound between Denmark & Sweden, killing 2 crewmembe
19.] 2 Dec. M/T Flanders Gloria (Liberian) collided with M/T Mundogas Orinoco
(COSCO.) near Kaohsiung, Taiwan;
20.] 3 Dec. four people were injured, 2 seriously, after a fire inside a cargo
tank aboard M/T Mosqueen (Bahamian VLCC) off Dubai, UAE;
21.] 4 Dec. M/V St. Jude Express (Belize dry cargo ship) caught fire and later
had an explosion off eastern Cuba. The ship drifted and the 7 crew were rescued
by M/V Bremen Senator (46,490-dwt containership);
22.] 7 Dec. M/V Celtic Warrior sunk after a collision with M/V Anagret off
Greece. Details are few, but there are no reports of lives lost. HMS Invincible
is on scene.
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.
Here are our suggested world wide web sites of the week for your business,
your information and your amusement ...............
- LAX Gateway To The Americas ......... 2015 The Future of LAX and
the Master Plan for historic expansion. A must!
- APEC Web Site ....... as the U.S. State Department has posted to
its Web site a 'Fact Sheet' on the Asia-Pacific Economic Cooperation (APEC)
which includes information on U.S.-APEC relations, APEC progress, APEC
- Int'l Air Transport Assn's Cargo Services .......... an IATA site
for us!!! Learn about bar coding, dangerous goods, live animals,
perishables, ULD's, automation & EDI.
- Office of Textiles & Apparel ....... U.S. Dept. Of Commerce.
Read the new "Major Shippers Report.
- Holiday Travel Warnings ......... as your staff can protect itself
by reading the WARNINGS from the U.S. State Department. Note: the web he CNN
network is incorrect.)
- EU-US Forum On Intermodal Freight Policies ........... conducted at
Washington, D.C. by the U.S. Dept. of Transportation last month. Highlights.
- Lloyd's Register ......... a new site.
- Airline Fleets Of The World .............. is a comprehensive list
of tail numbers for over15,000 aircraft worldwide, from turboprops to jumbo
jets. The index is broken down into sections of the world, listing all the
operating carriers in that section of the world. Incredible site!
- AirTran ............ used to be ValuJet (reported a net loss of
$5,397,000 or $0.60 per share in the 2ndquarter ended September 30, 1997).
The company's HQ will be relocated from Atlanta to Orlando.
- Eagle USA Air Freight ......... has on-line tracking and a fresh
site from its office right INSIDE Denver Int'l Airport (DIA).
- FlightMasters/SeaMasters ......... rolls out it's new on-line
tracking & tracing site.
- Container Security Seals ...... go high tech as the Vulnerability
Assessment Team at Los Alamos National Laboratory has conducted an extensive
analysis of the considerable vulnerabilities of widely used tags and seals.
Also contains links to other sites related to tags & seals.
- LOGcity ......... announces its new search engine and the ability
to search for Airforwarders Assn. member companies. Categories for all modes
available and searching can be indexed on many criteria..
- I-Maritime ........... the Indian maritime industry.
- Hong Kong Container Port
- WhatSpace ............. allows distributors & warehouses to
maintain their own dynamic stock lists on a secure database that can be
viewed by other authorized parti the WhatSpace web site. Rates start at
$500. There is no charge for siter use.
- Softshare Information Services ............ is the site of a
software company with resources & services for anyone needing help with
electronic data interchange (EDI). U.S. Government EDI links.
- Cargo-L ......... the popular internet discussion group for ocean
cargo. Links to EDI sites.
- Panama Maritime Registrations:
- S.S. United States Preservation Society ........ the auction took
less than 30 seconds and the ship sold for US$6M. There is some flooding on
B Deck, a few puddles of water here and there, but overall the ship is still
in excellent condition, very solid. A developer is said in negotiations to
bring the "The Big U" to NYC for use as a
hotel/museum/entertainment complex near the Jacob Javits Convention Center.
.......and for the kids:
- Santa's Secret Village ......... this year's updated version of the
site is aimed at taking the magic of a traditional Christmas on-line to
youngsters & grown-ups alike. Last year this site had over 15,000,000
- Use Of A Customs Consultant
--by Dave Jordan for The Cargo Letter
On Thursday, December 4, U.S. Customs published in the Federal Register its
"final" version of a "Reasonable Care Checklist".
Notwithstanding its use of the word "final", the U.S. Customs Service
is reserving its privilege to expand the format of the checklist "to suit
the changing nature of Int'l trade, without resort to statutory or regulatory
amendment." The move is in keeping with Customs consistent position to the
effect that it is impossible to devise will comprehensively articulate what
would constitute "reasonable care" for every conceivable customs
transaction. Customs' position is essentially summarized in their statement
that: "Despite the seemingly simple connotation of the term ``reasonable
care,'' this explicit responsibility defies easy explanation. The facts and
circumstances surrounding every import transaction differ--from the experience
of the importer to the nature of the imported articles. Consequently, neither
the Customs Service nor the importing community can develop a foolproof
"Reasonable Care Checklist'' which would cover every import
It is only proper that, in an environment of "informed compliance",
Customs would reserve the right to attempt to improve upon the guidance that it
gives the importing public.
Although, in the words of Customs, the checklist and similar guidelines have
"no legal, binding or precedential effect on Customs or the importing
community", the publication of this "Final Checklist" is
nevertheless of notable significance in view of the emphasis which Customs and
the law place upon the importerís duty to exercise "reasonable
care", and upon the consequences of an importerís failure to do so.
Importers would be ill advised to remain ignorant of material that has been made
available by Customs to "educate, inform and provide guidance (to)"
the importing public.
The controversy regarding "customs business" and who may legally
engage in it has not been put to rest by publication of the "Reasonable
Care Checklist". There continues to be a fundamental difference of opinion
between Customs & trade groups over the activities of "unlicensed"
consultants or other "experts". It is therefore interesting to note a
Customsí comment which reads: "In Customs view, the importer who retains
the services of an ``expert'' bears some responsibility in ensuring that the
party is qualified to render advice on the Customs matter at issue. In Customs
view, it is not unreasonable to expect that a part credentials of an expert.
Customs believes this responsibility to be particularly important in cases
involving selection of unlicensed experts such as consultants. The existence of
experienced Customs lawyers and licensed brokers makes fulfillment of this
responsibility an easier task--but in Customs view, to limit the selection of an
expert to these individuals runs contrary to the language of the congressional
Importers & CHBs should obtain a full copy of the text of the Reasonable
Care Checklist. Obtain it from the Federal Register, or contact me and I will be
happy to provide you information on how to gain access, free of charge, over the
Internet ........... DAFRJORDAN@aol.com [Dave Jordan is a CHB & consultant
on customs matters at LAX.]
-- by Jim Powell for The Cargo Letter
In the wake of the ValuJet crash, this issue has become very misunderstood by
Airforwarders. The surprising answer is yes, you can ship oxygen generators on a
cargo aircraft under certain VERY strict conditions, such as U.S. Government
approval of the packaging. Sending "spent" generators or those past
their expiration date (service date) is prohibited.
This now infamous commodity can be shipped, but you must ensure you have the
1998 edition of IATA Regulations if you are going to ship by an IATA air carrier
(which is just about everyone), and that you either have the current CFR-49, or
the latest U.S. Federal Register outlining new rules for the Oxygen Generators.
As with all shipping of potential HAZMAT commodities, regulations may change on
a daily basis, there is no margin for error and training of Airforwarder
personnel is a primary goal.
Send your E-mail address to receive a free .PDF copy of the Federal Registers
and other necessary info .......... http:/www.logisticstraining.com/hazmat
[Jim Powell is a noted HAZMAT consultant with Transportation Development
Whether filming the Games of the XVIII Olympiad or taking samples to show a
prospective customer, you'll need a "Carnet" to clear Japanese customs
in order to leave Japan with the goods at a later time. ATA Carnets allow for
the duty-free, but temporary importation of goods into that country. Japanese
customs inspectors are already gearing up for the Olympic Games and have
indicated an intention to enforce Customs regulations.
A "Carnet" is an international customs document, "A
Merchandise Passport" for duty-free, temporary customs clearance. After
visiting Japan, U.S. exporters may go on to use the ATA Carnet for unlimited
trips to any (and all) of the other 50 Carnet countries, for example, Korea,
Australia, Singapore, Malaysia, as well as Europe & Canada. For full
information ...... see your U.S. Customs Broker.
For you ocean folks, "ULD" is an air term for "Unit Load
Device", the cargo container of the air industry. The LD3 container is a
standard workhorse. It is, in fact, a baggage container used for cargo with an
internal water volume of 3.4M3. It can be carried by most airlines & most
aircraft on the lowerdeck. Maximum gross weight is approx. 1400 kgs.
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