The Cargo Letter
THE CARGO LETTER 
Air & Ocean Freight Forwarder - Customs Broker News
28 May 1998
Good Thursday Morning from our Observation Deck...... overlooking the
officially designated "Cargo City" area and....... Runway 25-Right, at
Los Angeles International Airport. Its official! We've been named one of the
"Top 10 Air Cargo Web Sites" as voted by readers of misc.transport.air-
industry.cargo and the AIRCARGO Mailing List.
Contribute your knowledge, stories & company 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://cargolaw.com
To post comments or discuss articles, go to ....... http://www.interpool.com/tcl/disc1_frm.htm
Michael S. McDaniel, Editor & Publisher, Countryman & McDaniel,
forwarder/broker attorneys at LAX.
INDEX to The Cargo Letter:
OUR "A" Section: Trade, Financial & Inland News
1. The Warren Levine Chronicles
* India-Pakistan-Indonesia-China -
Our Sr. Correspondent On The Region
* What We Face?
2. "CargoLaw.com" Internet Service Honored
* Top 10 Air Cargo Web Site
3. Freight Forwarder Trade Briefs
4. The Cargo Letter Financial Page
OUR "B" Section: FF World Air News
5. CARGO 2000 Reports Significant Developments
* New Members & Progress Towards a
New Air Cargo Product
6. New FAA Security Regulations
* The Crack Down
7. Freight Forwarder World Air Briefs
OUR "C" Section: FF World Ocean News
8. FF World Ocean Briefs
9. The Cargo Letter Cargo Damage Dispatches
OUR "D" Section: FF in Cyberspace
10. Top 10 Air Cargo Sites
11. The Cargo Letter "Cyber Ports Of Call"
OUR "E" Section: The Forwarder/Broker World
12. New Int'l Transport Cases At U.S. Supreme Court
13. 1997 NVOCC Top Ten List
14. US Customs Pipeline Re Manifest Submittal
- Our Sr. Correspondent On The Region
India, Pakistan Ready To Erupt As Harsh Words And Bullets Transit Border
-- by Warren S. Levine for The Cargo Letter
SEATTLE, May 27 -- In response to India's five underground nuclear weapons
tests earlier this month, Pakistan is reported by US intelligence sources to be
readying themselves to conduct similar tests. Washington, in an attempt to
dissuade Pakistan from continuing their preparatory measures, has offered an aid
package to that country, reportedly consisting of 28 F-16 fighter jets which
have been on hold due to US sanctions.
Over the past two days there have been bullets, mortar fire and artillery
shells fired by both sides, however there have been no confirmed reports of any
casualties. Fighting has centered around Kashmir, an area which has been the
scene of a number of battles and skirmishes over the past 50 years.
India has reportedly moved troops toward their border with Pakistan, while
Pakistan is said to be arming civilians along their side of the disputed
Kashmiri border. India's Prime Minister Atal Vajpayee has rationalized India's
nuclear test as being necessary due to a perceived nuclear threat from both
Pakistan and China. However, he did attempt to ensure the press that India would
never use nuclear weapons.
Suharto Steps Down And Habibie Assumes Presidency During Increasingly Tenuous
Times In Indonesia
-- by Warren S. Levine for The Cargo Letter
SEATTLE, May 27 -- Vice-President B.J. Habibie was handed the reins of this
economically ravaged country as President Suharto bowed to increasing public
pressure and resigned his position of 32 years last week. Habibie has promised
to hold elections, but has not announced any time frame.
Indonesia, a country of 300 million, has suffered through increasingly bad
economic times of late, and there have been many reported incidents of secular
violence in the capital and even in remote cities. Ethnic Chinese have been the
targets of an escalating and almost organized campaign of terror -- Buddhist
temples and long-established Chinese-owned business in this multi- ethnic
country have been the targets of arsonists and masses of stone-throwing
Indonesians. More than a hundred branches of Bank Central Asia, a Chinese- owned
bank were damaged in the recent riots.
The United States has urged Habibie to release political prisoners from
Indonesian jails, and the citizenry have demonstrated daily against the
government as a result of the severe economic problems which have befallen the
formerly flourishing economy. During one short period, the Rupiah declined from
3400 to the Dollar to over 12000.
On May 20, the U.S. State Department issued a Travel Warning to all U.S.
citizens, asking that they defer travel to that country, stating, "The U.S.
Embassy in Jakarta has confirmed two separate incidents on May 14 in which two
British citizens were killed in Jakarta after entering a taxi."
Citizens traveling to Indonesia are urged to get updated information from the
U.S. Embassy in Jakarta via their website: http://www.usembassyjakarta.org.
Further information can be obtained from the State Department's home page.
The Cargo Letter suggests all foreigners who must visit Indonesia register
with their country's Embassy in Jakarta before departing their native countries.
Information for the Embassy should include a copy of your passport's data and
picture pages, and a full itinerary, with all contact numbers and dates. This
information can be faxed to most embassies.
Clinton Draws Bilateral Criticism On His June Trip to China & Visit to
Tiananmen Square; Hong Kong Democrats Sweep, Shun Beijing Loyalists -
-- by Warren S. Levine for The Cargo Letter
SEATTLE, May 27 -- Over a hundred legislators have called on President
Clinton to cancel his long-scheduled trip to China for next month due to China's
apparent attempt to influence elections in the United States. Protests from
American politicians have specifically asked that Clinton not visit Tiananmen
Square, the site of a globally-televised bloody end to peaceful pro- democracy
student demonstrations on June 4, 1989.
State Department Spokesman Mike McCurry answered their call by noting that
Tiananmen Square, in the heart of Beijing's government district, is the Chinese
equivalent of the White House's South Lawn, and that it would be disrespectful
to the Chinese to refuse to visit that site.
Clinton plans to begin his trip to China and Hong Kong on June 25, with
visits to Beijing, Shanghai, Xian, Guilin and Hong Kong.
In Hong Kong, the first public elections since China's takeover took place
over the past weekend, in which 20 of the 60 seats on the Legco, or Legislative
Council, were voted upon by a reported 53% of eligible voters. The balance of
the seats are voted upon by 140,000 business people selected by Beijing, with
the final third actually appointed by a committee of 800 named by Beijing.
With two-thirds of their government being directly appointed or backed by
Beijing, many voters stayed home during the miserable weather on election day,
although the turnout was said to have been a record.
One voter was reported to have said that he cast his vote because,
"Having one voice that represents me in the legislature is better than not
having a voice at all." Democratic Party leader Martin Lee, an outspoken
critic of Beijing, is still pressing the PRC government to allow Hong Kong to
hold completely independent and free elections by 2000. However, there are no
scheduled changes to the current system planned until 2004. Democrats and their
allies won 13 of the seats up for grabs, while other, smaller pro- democracy
parties won the remaining seven seats. The pro-Beijing Democratic Alliance for
the Betterment of Hong Kong, which was earlier expected to win four of the
remaining seats, was shut out at the polls.
Before their assumption of sovereignty over Hong Kong, China promised that
Hong Kong would remain essentially the same for at least 50 years after the
- Top 10 Air Cargo Web Site
LAX - A vote by readers of the "misc.transport.air-industry.cargo"
official Internet discussion group & the AIRCARGO Mailing List has resulted
in "CargoLaw.com" being named one of the "Top 10 Air Cargo Web
Sites" on the world wide web. In receiving this prestigious award the site
established by LAX forwarder-broker attorneys Countryman & McDaniel is now
in the same company as other recipients such as FedEx, Airborne, JAL Super
Logistics, Korean Airlines & Martinair. We're proud!
There are many features of "CargoLaw.com",
but visitor comments suggest current favorites:
TRANS-CAMS : Over 80 live cameras focused on transport related activities
around the world. See the world right now, from your desk!
"The Streets of Laredo" : Most of us has cargo which transits
Laredo, but how many of us have been there? There are now nine live TRANS- CAMS
which watch America's busiest commercial border crossing. Freight moves around
the clock along with some 2.5 million people each day.
Law Navigator : The full text of laws & treaties which govern our
industry. FAA Security & HAZ MAT Regulations, the Warsaw Convention, the
Carriage of Goods By Sea Act, the Shipping Act of 1984, and much more. The site
will soon include legal search engines.
The Freight Detective - General Investigations : The most extensive grouping
of free research & investigation tools on the world wide web. Find anything
Thousands of industry professionals from Chicago to Cairo rely on "CargoLaw.com"
for information & resources, and perhaps some fun. Join them ....... http://cargolaw.com
- President Taps New Customs Chief .......... as President
Clinton has selected former New York City Police Commissioner Raymond Kelly
to serve as Commissioner of the U.S. Customs Service. Kelly rose through the
ranks of the New York City Police Dept. and held 25 commands before moving
to Washington. In his new job, he will oversee nearly 20,000 Customs agents
- FTAA Talks Begin ......... as Western Hemispheric leaders
met in Santiago, Chile last month to launch talks for the Free Trade Area of
the Americas (FTAA). Canada will lead the negotiations through infancy. A
steering committee will meet in Argentina under Canadian leadership this
June to begin forming negotiating teams. The 1st meeting of the
nine-category negotiating teams will be held this Sept. in Miami. The FTAA
is intended to result in a free-trade zone extending from Alaska to Cape
Horn by 2005.
- WTO For China At Last? .......... as U.S. Secretary of
State Madeleine Albright showed uncharacteristic U.S. optimism this month
regarding a China- U.S. bilateral agreement for China's WTO accession bid.
Albright, visiting China in advance of a U.S.-China summit next month, said
she was hopeful a bilateral agreement could be concluded by the June
meeting, but that much work remained to be done before then. Ms. Albright
said a visit with Chinese Premier Zhu Rongji left her encouraged that China
is willing to make the necessary market opening offers necessary to move
China's application forward.
- Tax Privilege Phase-Out Unlikely by 2000 .......... as a
Wall Street Journal article explains that the Chinese government has said
that it is unlikely to phase out tax privileges for foreign companies before
- EU Wants Anit-Dumping Dumped ......... as the European
Union has launched a complaint over what it sees as U.S. failure to repeal
its Antidumping Act of 1916. The EU argues that the law is incompatible with
WTO obligations on a number of fronts. The 1916 Act includes
"unqualified injury criterion," while the WTO has a strict
definition of what comprises "material injury," a criterion
necessary for the imposition of dumping duties. The 1916 law lacks
requirements for dumping investigations in conflict with WTO rules,
according to the EU. Further, under WTO rules antidumping duties are the
only recourse for dumping whereas the 1916 law provides for triple damages,
fines & possible imprisonment.
- Intercargo Tackles The Risk ........... as Intercargo
Insurance Co. (NASDAQ:ICAR) has announced creation of a new subsidiary,
Intercargo Risk Management Services, Inc. (IRMS). IRMS will provide risk
management consulting on a fee-for-service basis to small & medium size
commercial enterprises. Thomas W. Krzyzak has been named Exec. V.P, of
Intercargo Risk Management Services. Key services offered by Intercargo Risk
Management Services include disaster recovery planning, vehicle fleet safety
management, contractual liability evaluation & overall risk-management
program design & implementation. "Large corporations are able to
staff risk management departments that have a positive impact on the
corporate bottom line. Many small to medium sized companies have expressed
the need for additional risk management services on an ongoing basis,"
stated Intercargo CEO, Stan Galanski. "Intercargo Risk Management
Services will allow them to selectively purchase key services not otherwise
available to them." Intercargo is the leading provider of specialized
insurance coverages for companies involved with international trade, such as
Customs brokers, freight forwarders, logistics providers, intermodal
carriers, importers & exporters.
- BAX - DSL Deal Dead ........ as BAX & the
privately-held Distribution Services Ltd. (DSL) have agreed not to proceed
with the purchase of DSL.
- Not Going In Circles ............ as Circle International
Group, Inc. (NASDAQ: CRCL) continues celebration of its 100th year with
announcement that the logistics giant has acquired Concord Express-Singapore
& CE Logistics-Asia (collectively "Concord"); both
headquartered in Singapore with operating centers in Singapore (Changi
Airport, Changi South, Tanjong Pagar Port), Prestwick, United Kingdom &
Houston, Texas. The company owns its facility in Singapore, a
state-of-the-art 140,000 sq. ft. logistics center in Changi South. In other
Circle news, Janice Kerti has been named Sr. VP & CFO for Circle. Robert
J. Diaz moves from his role as CFO to chief operating officer for Latin
- Interpool Now #3 Worldwide ............ with a 50%
interest in one of the world's fastest growing container leasing companies,
Container Applications International Inc., (CAI). Interpool itself is one of
the largest Int'l trade lessors of cargo containers & the 2nd largest
U.S. based intermodal container chassis lessors, supplying containers &
chassis to all of the world's top 20 Int'l container shipping lines. CAI
owns & operates a 225,000 TEU fleet & concentrates predominantly on
the short term master lease market. With Interpool being a long-term lessor
of boxes & CAI concentrating on the short term market, combined they
will be aiming to provide a wider range of services to the customer,
especially with the elevation to 3rd largest fleet in the container leasing
industry, with an amalgamated fleet of 650,000 TEUs. Interpool is corporate
sponsor of The Cargo Letter library and search pages.
- Union With Kenney To Korea .......... as Union-Transport
Group has signed an exclusive handling agreement with Kenney Transport, a
major forwarder from the USA & Korea The new arrangement joins
Union-Transport's global network, customs brokerage & on-line tracking
capabilities with Kenney Transport's strong air & ocean forwarding
business between the USA & Korea. Many of Kenney Transport's customers
are some of the leading exporters in the U.S.-Korea marketplace.
- Danzas Eyes Big Expansion ......... as the
Switzerland-based forwarder, the world's #2, moves to join Fritz Companies,
Circle Int'l , Expeditors Int'l & the others in expanding it's
operations as a leading Int'l, intermodal logistics provider. First up for
the expansion plan, Danzas has just announced a new operations unit in
Moscow named Danzas (CIS) Ltd. Danzas has had representation in Moscow since
1992. Already a respected brand-name in western Europe, Danzas is speeding
to open new offices in Latin America, eastern & central Europe &
Asia, as well as the U.S. Danzas is currently in 16 countries & employs
500 people. The company's No. American headquarters is in Bellevue, Wash.
Current clients include Eli Lilly & Co., GTE, Pep Boys, Anheuser Busch,
American Home Products & Ericcson. Through its affiliation with
Entertainment Transportation Specialists, a company that works with Warner
Bros. & 20th Century Fox.
- China Continues Intermodal Focus ............ as rail
container transportation will advance this year as plans are discussed to
increase it's competitiveness & efficiency. The China Daily reports that
1998 will see the establishment of 16 new container terminals at North
Shantou, South Guangzhou, Xiayuan, Yantian & Zhanjiang in South China;
Tanggu in North China; Boyuquan, Gaoqiaozhen & Jinqiao in Northeast
China; & Qingdao, Lianyungang, Yantai, Hejiawan, North Ningbo, Xiamen
& East Fuzhou in East China. Exclusive container shuttles will be
employed between terminals. April saw the launch of the 1st daily rail
container shuttle from Beijing to Chengdu, an 87 hour journey, with a
potential for extension to Tanggu in Tianjin & South Shijiazhuang in
Hebei province. The shuttles are hoped to increase China's share of Int'l
multimodal transport through their cheap, timely & convenient nature. In
addition they will be able to solve terrain related problems of
transportation, such as in Southwest China where mountains are a major
- Industry Internet Use Up ......... as advertising
spending on the Internet fell just short of US$1B last year, making 1997 a
"breakthrough year." "Not only did we see significant
spending increases, we also see signs of the Internet being like a
traditional medium," said Rich Le Furgy, president of the Internet
Advertising Bureau (IAB) & Sr. V.P. of advertising sales for ABC
News/ESPN Internet Ventures. Indeed, the U.S. Dept. of Commerce estimated
last month that E-Commerce itself could grow to more than US$300B by 2002
- New Players In Industry Software War ......... as SAP,
the German giant & largest global supplier of ERP software, is releasing
Advanced Planner & Optimizer (APO) this Sept. It will compete against
software offered by competitors such as Manugistics & i2 Technologies.
Meanwhile, two companies have joined together to offer a complete package of
supply-chain management & import/export software. The new alliance
integrates the features of Syntra Ltd.'s Global Logistics System & HK
Systems' Stockmaster SCM, and is expected to bring new cost savings to
- HAZ MAT A Major U.S. Export ............. as toxic
pesticides forbidden in the U.S. were shipped from U.S. ports at a rate of
nearly 16 tons per day in 1995 & 1996, according to a new report to be
released by the Foundation for Advancements in Science and Education (FASE).
The majority were headed to destinations in the developing world. The report
is the 5th that the public interest group has published since 1991, when it
began to document the trade in hazardous pesticides by analyzing
transcriptions of U.S. Customs shipping records. Previous reports from the
FASE Pesticide Project have served as the basis for Congressional testimony
& have provided researchers & policy makers around the world a rare
glimpse at details of the global traffic in pesticides. Note: Copies of
"Exporting Risk: Pesticide Exports from U.S. Ports 1995-1996",
which includes detailed statistical information, will be available at no
cost to researchers, journalists & non-profit organizations. Call
213-937-9911, or write to Publications Office, FASE, 4801 Wilshire Blvd.,
Suite 215, Los Angeles, CA 90010.
- Puff Pirates ..........as European Union investigators
think U.S. & Int'l tobacco companies are not doing enough to help combat
cigarette smuggling that cost the EU US$1.7B in lost tax revenues last year.
One EU- coordinated operation targeted a smuggling ring shipping illicit
supplies into Spain & Portugal from Cyprus, and it led to the seizure of
containers holding more than 930 million cigarettes. In April 1997, customs
authorities intercepted a Ukrainian cargo plane at an airport in northern
Spain. Concealed in wooden crates supposedly containing Greek electrical
spare parts were more than 17 million cigarettes. Expect more smuggling as
taxes on this commodity are increased.
- Calvin Strikes ........ as according to a Women's Wear
Daily article, says that Calvin Klein Cosmetics Co., working with Colombian
officials, has seized thousands of fragrance bottles this month in its
ongoing probe of fake merchandise in Latin America. The company said a
number of people have been charged in connection with the seizures &
that further enforcement action is anticipated in Colombia. Watch what you
ship ........ no matter where. The rules have changed.
- Catching "The Brass Ring" ............ as the
largest cocaine seizure on the Southwest Border during the last 3 years, and
the largest ever in Laredo, the U.S. Customs Service ...... as part of
"Operation: Brass Ring" ........ last week discovered more than 2
tons of cocaine concealed in a double-walled cooking grease tanker
attempting to enter the U.S. at the Columbia Bridge border crossing in
Laredo, Texas. With an estimated street value for cocaine of up to $45,000
per pound, the seizure has an estimated street value of $196,110,000. Watch
these activities at the Laredo Bridges via live cameras at http://www.cargolaw.com/cameras.html
- Something Is Up In Taiwan .......... as smuggling the of
the impotency drug Viagra from the U.S. to Taiwan is becoming big business.
According to the United Daily News newspaper, sales are primarily to gigolos
& male hosts who entertain female customers at karaoke bars. The drug is
being sold on the black market for more than US$60 a dose, 6 times the U.S.
selling price. Other ports are reporting as much as US$100 per dose. The
illegal trade will likely continue because health authorities in Taiwan
aren't expected to give legal approval to Viagra sales for at least 6
months, the paper said. A variety of virility pills & tonics concocted
from traditional Chinese herbal recipes are sold in Taiwan, and certain
foods & wild animal parts are consumed in the belief they boost male
sexual performance. Taiwan Customs reports that its resistance to the
smuggling will stiffen.
- New Members & Progress Towards a New Air Cargo Product
CARGO 2000, the special IATA interest group formed in March, 1997 by leading
airlines & freight forwarders, to provide global, time-definite services
with shorter delivery times, better customer service and lower costs through the
implementation of a programme of agreed business process and automation
standards in the air cargo industry, has reported significant developments at
its recent Executive Committee meeting in San Francisco. Group membership has
increased to 34 with the announcement that Air Canada, China Airlines, LEP Int'l
& Wilson Freight Systems joined the organization on March 1st, 1998. Air
France did not renew its membership. The group now consists of 19 airlines and
The CARGO 2000/Unisys process working party which was charged last year with
developing a generic, time definite capability for the group, has now completed
three sets of trials. The first involving containerized cargo took place last
autumn and showed that 42% of consignments moved door-to-door in 72 hours or
less. A 2nd series of trials worldwide in November, measuring loose
(non-containerized) & transshipment cargo, showed that for this type of
cargo, the average door-to-door time was 6.3 days, almost unchanged from the
surveys* carried out in 1975 by IATA and in 1995/96 by Unisys. The working party
measured every aspect of the process and it was apparent that considerable time
is lost while documentation & processing takes place. The trials showed that
cargo spends less than 10% of the total time involved actually moving and over
90% of the total time awaiting some form of documentation or processing. The
working party ascertained that 60% of total transit time is spent at destination
waiting to be cleared and delivered. It was evident that Customs clearance is
not a major delay factor, but considerable time is wasted in submission of
Customs entries. As a result of the trials & examination of 43,000 detailed
measurements carried out worldwide by airlines & forwarders, the working
party designed a new, generic control process to facilitate the movement of
cargo and the co-ordination of collection, clearance & delivery with the air
transport sector, to enable time definite delivery.
New, Generic Control Process - Good Trial Results. The process was tested by
CARGO 2000 in February (1998) in the 3rd of the trials. Using the services of
six forwarder and ten airline members, detailed monitoring of 950 consignments
took place worldwide. 91% of all consignments in the test were delivered
door-to-door within 72 hours. These trials required the checking and measuring
of over 20,000 individual processes involving the 950 consignments. Commenting
on the outcome of the generic process trials, James Hartigan, Chairman of CARGO
2000 & V.P. Cargo of United Airlines, said "This is the most
significant step taken by the industry in 50 years to change the air cargo
product to meet customer requirements. This change was only possible because of
the enormous joint efforts of the airline and forwarder members of the group.”
Hartigan continued “We have proved conclusively that it is only by the joint
development, control and management of the processes by both airlines and
forwarders that a reliable, consistent, time definite and seamless service can
be provided to customers.”
The new, generic process & results of the trials will now be taken to a
series of customer forums being organized worldwide in coming months to check
and test customer requirements based on the findings and, most importantly, to
seek customer input to the systemic development of the time definite capability.
The results & initial input from the customer forums will be brought to the
next Board meeting of CARGO 2000 in mid-summer for endorsement & approval.
Electronic Data Interchange Working Party. The meeting also received reports
from the EDI working party on the successful joint airline/forwarder submission
of all customs reporting in the U.S. a via electronic communication. This was
and is a very significant factor in achieving time definite delivery. The live
testing by airline and forwarder members was achieved through much practical
assistance and co-operation from the US Customs authorities. In addition, the
EDI working party is drawing up a revised set of membership criteria which will
reflect the progress being made by CARGO 2000. An airline/forwarder performance
measurement for airlines and forwarders exchanging EDI messages has been
developed by the working party, this will also be presented to the next Board
Bar Code Label Working Party. After extensive consultation, the Bar Code
Label working party has recommended the adoption of IATA Resolution 606 as the
implementation standard. It has also recommended unique piece identification and
radio frequency bar code scanning as essential for CARGO 2000. It is developing
an implementation schedule for bar code labeling and scanning which will be a
requirement for all existing and new members of the group.
Montreal Protocol Four. Commenting on the recent ratification of the ICAO
Montreal Protocol Four agreement which allows for paperless trading between
approving nations, Mr. Hartigan said this was a major breakthrough for the air
freight industry and especially for the membership of CARGO 2000, who were
leading the industry in the development of a paperless trading environment. He
now hopes that the major trading nations such as the U.S., Germany & Japan
will ratify the agreement to enable the development of paperless trading between
them all. NOTE: the U.S has not adopted this.
Members of CARGO 2000 are : Airlines : Aer Lingus, Air Canada, Alitalia,
American Airlines, Austrian Airlines, British Airways, Cargolux, Cathay Pacific,
China Airlines, Delta Airlines, Japan Airlines, Korean Air, Lufthansa Cargo,
Northwest Airlines, SAS, South African Airlines, Singapore Airlines, Swiss Cargo
& United Airlines. Forwarders : Air Express Int'l, Danzas, Emery, Kintetsu,
Küehne & Nagel, Lemuir Air Express, LEP International, MSAS, Nippon
Express, Panalpina, Schenker Int'l, Thyssen Haniel Logistics, SCAC, Wilson
Freight Systems & Yusen Air & Sea.
- The Crack Down
- No More "Mr. Security Endorsement"
The Federal Aviation Administration (FAA) has issued new Cargo Security
Regulations that officials say will make the skies safer but will complicate
business for shippers, according to a Journal of Commerce article. Indeed, we
know that such regulations will do nothing beyond making life more difficult for
airforwarders ....... to no purpose. The new guidelines are being mailed to
shippers, forwarders & airlines, who have until June 26, 1998 to comment.
The JOC article cites an FAA source as saying that final regulations should be
in place by October 1998. According to the article, the regulations will
significantly narrow the universe of so-called "known shippers,"
frequent clients who are subject to minimal security by forwarders &
carriers. The article states that a shipper will no longer qualify as
"known" after just one transaction with a forwarder, but will have to
establish a long-standing relationship with that company. The FAA likely will
require proof of a certain number of shipments by a given client over a certain
period of time, the article states. According to the article, the new
regulations also abolish the "Security Endorsement" every shipper is
now required to produce with every shipment.
- Airfreight's Greatest Hour ......... as from the site of
the heroic Berlin Airlift, President Clinton urged Germans on 14 May to
persevere against adversity and remember that ``freedom is worth standing up
for.'' Western allies made 277,569 flights into the besieged city from June
26, 1948 to Sept. 30, 1949, delivering more than 2.3 million tons of cargo
in the largest airlift in history. The allies' determination forced the
Russians to lift the blockade. ``The most precious cargo did not come in the
well-named care packages,'' Clinton said in a speech marking the 50th
Anniversary of the historic event at the Tempelhof Airport . ``It was
instead the hope created by the constant roar of the planes overhead.
- Shipper Panel Sounds Off .......... as Traffic World
reports that few carriers & forwarders showed up for "Shipper
Day" at the recent Air Cargo Forum at Paris. One official said it was
"a little disappointing, but not surprising." If they had been
there, forwarders and airline officials would have heard that shippers want
"mass customization" & more business conducted the way the
integrated carriers work the traditional air freight product. Most of the
shippers on the panel are said to have expressed frustration. "You have
a legacy product," Joe Rosiek, Unisys logistics Dir., told the carriers
& forwarders. "Some forwarders have the ability to guarantee time,
but are only doing it for a handful of customers. The integrator does it for
- Branson Sounds Off Louder ....... as on 22 May, Virgin
Atlantic Airways submitted its objections to the proposed British Airways
(BA)/American Airlines (AA) alliance to the U.S. Dept. of Transportation
(DOT). Richard Branson, Chairman of Virgin, quoted from the Virgin
submission. "The DOT should reject this Faustian bargain. The proposed
alliance threatens to devastate competition among airlines flying between
the U.S. & the U.K. by giving American & BA control over nearly 60%
of the total frequencies between the two countries. The result for consumers
is predictable & inevitable: prices will rise, service will suffer and
choices will decrease." The U.S. Justice Dept. agrees with Branson.
- Atlas Makes The Grade .......... as at a ceremony in
Paris, Atlas Air, Inc. was awarded the Cargo Airline Award for Excellence by
The International Air Cargo Association (TIACA). The recipient of the award
is chosen from a pool of nominees selected by the leading airlines of the
world who are members of TIACA, and by the press & industry observers
based on excellence & innovation in the selected category. Atlas Air
also received this biannual award in 1996.
- IATA Smiling, But Cautious ........ as its member
airlines earned US$5B from Int'l services last year, on revenues of
US$145.8B, substantially improved over US$3B in 1996, but off the US$5.2B in
1995, according to IATA DG Pierre J. Jeanniot. Speaking to delegates at
IATA's financial management conference. Jeanniot warned that 1998 results
would be down considerably to around US$3.9B on revenues of US$151.5B,
"reflecting the effects of the Asia crisis and in particular a likely
inability of carriers to reduce their capacity growth in the face of
softening growth of demand." Jeanniot forecast that IATA members' total
Int'l traffic will grow by 5% this year but that capacity will rise 6%.
Yields are expected to decline 1%, but this will be offset by a 1% decline
in unit costs. Reflecting the "Asian Flu", IATA estimates its
Asian members earned just US$300M from Int'l services on revenues of US$30B.
Airlines operating to, from & within the Asian region will be hit even
harder in 1998, with the bottom line impact estimated at US$2B.
- Open Korean Skies ........... as South Korea & the
U.S. signed an open skies agreement on 24 April which allows Korean
airliners to have unrestricted access to points in the U. S. to destinations
beyond the U.S. The current pact permits Korean airliners to have the beyond
rights for only 3 destinations in Europe & South America & 12 points
in the U.S., while allowing their U.S. counterparts to have unlimited access
to destinations in Southeast Asia and elsewhere. The agreement also allows
code-sharing, wet-leasing, starburst change of gauge & surface
transportation for cargo, according to an official of the Korean Ministry of
Foreign Affairs & Trade.
- DHL - Kuehne & Nagel Unite For Express Market
.......... as DHL Worldwide Express has formed a partnership with
Swiss-based forwarder Kuehne & Nagel which will now use DHL's air
express network to provide an express door- to-door service for packages
less than 50 kilos. The new service will begin in Europe, Africa &
Asia-Pacific, with an extension planned to include the U.S., Canada &
Latin America. Access to DHL's air express network will substantially
enhance the scope of Kuehne & Nagel's operations as DHL delivers 227
countries worldwide. Work for K & N should be brisk as DHL delivered
more than 140 million shipments last year, on average 200 shipments every
minute. Charles Longley, CEO DHL Asia-Pacific/Middle East, said "Our
new partnership with a company with 108 years of expertise in shipping will
ensure that we offer our customers additional warehousing and air freight
options." Klaus Herms, managing director of Kuehne & Nagel
Asia-Pacific said "This clearly demonstrates how two companies with
expertise in different areas of the global transport business, general cargo
and air express, can work together to create a better end product for our
- Delta's Important New Pals ......... as it has had a busy
month building alliances. Delta Air Lines has teamed up with Swissair to
form a freight alliance. Swissair's cargo section, Swisscargo, already sells
space on Sabena & Crossair, and the parent company is believed to be
seeking an Asian airline to help its freight operations in the Far East
market. According to some reports in the European press, there is a strong
possibility that Air France may join the cargo alliance as Delta already has
links with the French carrier, and, pending the finalizing of the
France-U.S. open skies deal, hopes to extend this to a full code-sharing
agreement. Next, Delta Air Lines announced on 30 April that it is entering
into a 7 year strategic, global code-share alliance with United Airlines as
the 2 airlines (America's 1st & 3rd largest airlines with a network of
13 hubs) plan to engage in code sharing arrangements, reciprocal frequent
flyer programs & other areas of marketing cooperation. This will allow
both carriers to offer customers increased service to hundreds of new cities
and more price & frequency options. Delta & United will remain
independent competitors, there being no plans to merge. Initially, the plan
will be implemented on the carriers' routes in the U.S. The alliance will be
expanded internationally with the concurrence of the carriers' alliance
partners & approval by governments, where applicable. Code-sharing to
Europe is not part of this alliance at this time because of complex
governmental & alliance issues. Delta & United estimate they would
realize a total of approx. US$600M in annual gross revenue benefits when the
alliance is fully implemented. For comparison purposes, the estimated gross
annual revenue benefits exclude any impact of other major U.S. domestic
alliances that may be formed. Assuming other major U.S. domestic alliances
go into effect, the carriers still expect this alliance to have a positive
- Northwest Buying A "PAL"? ........... as rumors
continue that it is considering the idea of buying a 40% interest in
troubled Philippines Airlines (PAL). PAL officials have denied that the U.S.
line wants such a large share of the carrier, but Northwest is known to have
started a due diligence audit of the Philippines national carrier before the
commencement of talks in June. Last year, PAL doubled its authorized capital
stock to 20 billion pesos, as well as increasing its paid-up capital from 10
to 15 billion pesos.
- BAX Buys Wings ........... as BAX Global Inc. has
acquired Air Transport Int'l (ATI), a privately-held freight & passenger
carrier based in the U.S. which operates a fleet of DC-8 aircraft offering
air transport services to BAX Global and other customers. The acquisition
allows BAX to increase control over flight operations. In addition, BAX no
longer needs to establish its own certificated carrier airline operations
after signing the purchase agreement with ATI. BAX Global plans to hire
approximately 250 additional flight crew. In other news, BAX Global has also
acquired a controlling interest in its South Korean agent, Borim Express
Ltd. and will form a new entity to be named BAX Global Korea Co., Ltd. Borim
Express was BAX Global's exclusive agent in South Korea since 1989 and is a
major forwarder in the market. The joint venture takes effect this month.
Annually, BAX Global Korea estimates export shipment handling volume at
US$25M & import handling at US$15M. In related Asian news, BAX Global
has just received a customs brokerage license from Japanese customs
authorities to clear shipments coming in/out of Osaka International Airport
(KIX) .... AND ...... BAX Global UK has just won the prestigious
"Institute of Transport Management" Global Logistics Company of
the Year Award 1998.
- FedEx To Southern China ......... as the express carrier
has signed a Letter of Intent with Shenzhen Airport (Group) Co, announcing
its intention to provide direct express service at the Shenzhen Huangtian
Airport in Southern China. The 6.5 year-old Shenzhen Huangtian Airport is
currently the 4th busiest airport in China. More than 80%of Hong Kong's air
cargo traffic originates in Southern China, thus making Shenzhen a gateway
airport with significant potential. Meanwhile, FedEx topped the air express
transport market by winning three Asian airfreight titles at the 12th Asian
Freight Industry Awards, including Best Air Cargo Carrier (North America),
Best All- Cargo Airline & Best Total Logistics Operator.
- Japan Lines Catch Flu ........... as All Nippon Airways
& Japan Airlines, are facing substantial losses. ANA struggles from
effects of a pilots' strike that has so far cost it more than US$6M. ANA has
had to cancel over 30 Int'l flights as a result of the pay-related
industrial action by its pilots. JAL has estimated its 1997-1998 financial
year to record a US$750M loss. Still, JAL is bullish about 1998/99, saying
it expects to pay a dividend for the first time since 1992 and to post
profits in excess of US$100M. We will see. The JALs credit rating has just
been downgraded by the credit rating agency Moody's, while All Nippon
Airways' rating has been put under review. Stand by.
- UAL Seoul Flight Flu Stricken ........ as United Airlines
will suspend 2 flights to South Korea, while other major U.S. & Asian
airlines have given a vote of confidence in the ability of the region's
economy to recover. United's daily non-stop service from San Francisco to
Seoul halted from May 5, while flights linking Seoul with the Japanese city
of Osaka will be suspended from July 8. Flights from Manila to Seoul and
from Guam to Osaka canceled previously. On the other hand, several UAL
routes in the region have been increased, including more than doubling the
weekly flights from Chicago to Tokyo.
- Emery Begins NZ Perishable Service .......... as operated
through a specially formed New Zealand joint venture company, Priority
Fresh, in conjunction with GV Int'l, which is also based in New Zealand.
Exports of chilled & frozen produce are aimed primarily at Singapore,
Hong Kong, Japan, Europe & the U.S. 1st year projected market share is
10%. The perishables market currently makes up 45% of New Zealand's exports
sector, which currently stands at US$12.2B. Last year, Emery New Zealand
handled more than 1,700 tons of exports & 4,100 tons of imports.
- New So. Cal Cargo Port? ........ as the famed El Toro
Marine Air Station (scene of the movie "Independence Day") in
Orange County, CA will close by July 1999. Eight companies, including a
subsidiary of Boeing, are competing for the right to manage the base when it
is re-developed for civilian air cargo use. But this is by no means a done
deal as some of the alternative proposals submitted to Orange County
officials include plans for several real estate projects, as well as leasing
offices & warehouse buildings, developing a business park, an urban park
or turning the site into farmland. The battle begins.
- AEI's New Boston Station .......... will be the 3rd-party
logistics hub for its northeast-US region which includes New England &
upstate New York. The company has opened a 78,000 square-foot facility in
the Charlestown district of Boston, more than double the size of its
predecessor, to handle air, ocean & customs brokerage operations for the
- First "Heavy" At Chek Lap Kok .......... as a
Cathay Pacific B-747-200 was the 1st widebody aircraft to land at Hong
Kong's new Chek Lap Kok airport as part of the Hong Kong airport authority's
1st airdrome trial. The aircraft landed on 2 May & was used to test
several ground handling services for several hours before returning to Hong
Kong's Kai Tak airport. The new Chek Lap Kok airport is to begin commercial
operations on July 6 to replace Kai Tak Airport. We predict the opening will
- HKGs Terminal 2 at Kai Tak Airport A "No Go"
......... as Hong Kong's Government Property Agency declared it would offer
the premises "for any permitted industrial purpose other than freight
cargo forwarding." The Hong Kong Assn. of Freight Forwarding Agents
(HAFFA) had proposed to keep Terminal 2 up and running with Hong Kong Air
Cargo Terminals (HACTL) in charge of operations. HACTL managing director,
Anthony Charter claims that Terminal 2 would have provided a tailor-made
facility for the airfreight forwarding community and expressed great
disappointment at the agency's decision. Those that will suffer most due to
the decision are the small & medium sized airfreight forwarders who,
according to Carrier Liaison Group chairman, Albert Lo Sze-wai, will remain
in the Kowloon Bay area because they cannot afford the huge investment of
relocation and operation from the new Chek Lap Kok Int'l Airport site.
Indeed, it has now been announced that forwarder Kuehne & Nagel has
decided against a move to Hong Kong's new Chek Lap Kok airport. K & N
cites the road tolls which must be paid by its customers to reach the new
- KLIA To Open At Sepang ........... as the June target
date for opening of KL Int'l Airport in Sepang, Malaysia approaches. The
final flight from the Sultan Abdul Aziz Airport at Subang airport will be an
11.55 pm - MAS service to London. Hundreds of people, cargo aircraft,
cranes, tugs, trucks, DL-3s, crates, barrels & boxes from MAS airline
will have to be ready to travel the 70 km to their new home in just 5 hours.
Some 2,500 employees will have to pack, load & transport equipment in
time for next morning's opening ceremony at KLIA. Cargo will be moved 3 days
before the big day. Inbound cargo over Subang will be cleared as much as
possible while outbound goods will be sent direct to KLIA.
- BA Suffers Identity Crisis .......... as UK aviation
officials are probing claims that the colorful new tail designs sported by
British Airways' planes are causing recognition difficulties at London's
Heathrow Airport (LHR). There have been at least 2 complaints involving
misidentification of BA aircraft because of the exotic tail designs. The
tail designs, which include examples of ethnic art from around the world,
have caused controversy since being introduced on BA planes in place of the
traditional "Union Jack" logo.
- UPS May Be A Two Timer ............ as you may be able to
use its overnight delivery envelopes again. United Parcel Service is now
issuing reusable envelopes for its overnight letter packages that have a 2nd
strip of adhesive and a special flap to close the package a second time. UPS
says it may extend the innovation to larger packages.
- Tokyo - Las Vegas Direct? .......... as Northwest Air is
to begin a non-stop service, 2 x weekly, using B-747-200s. Flights will
depart Tokyo's Narita Airport on Mondays & Thursdays. Return flights
will leave Las Vegas the same day.
- UPS To Upgrade The Fleet ......... as United Parcel
Service (UPS) has decided to upgrade, its DC-8s to be abandoned in favor of
Boeing 757s & 767s.
- Boeing Lengthens ......... as the longest commercial jet
liner in aviation history, the Boeing 777-300, has earned type certification
& received approval for 180-minute extended-range, twin-engine
operations (ETOPS). This marks the first time any airplane manufacturer has
received both approvals on the same day. The 777-300 is a high capacity,
stretched version of the newest wide-body twinjet. It is 33 feet (10 meters)
longer than the initial 777-200 model, for a total length of 242 feet, 4
inches (73.9 meters). As a result, the 777-300 carries 20% more passengers
than the -200, for a total of 368 to 550, depending on the configuration.
The 777-300 can serve routes up to 5,600 nautical miles (10,370 kilometers).
Details of a cargo variant have not been announced. On 15 May Boeing
celebrated the 2,000th widebody airplane to be built at its assembly plant
in Everett, Wash. Boeing builds all three 7-series widebodies -- the 747,
767 and 777 -- at the Everett factory. The milestone jet -- a 747-400 -- was
delivered to British Airways.
- More A3XX Details ......... as the new Airbus plane, due
for service in 2003, will be the world's 1st twin-deck, twin-aisle aircraft.
Airbus has consulted 20 carriers over the design and claims this is the 1st
time an aircraft's potential customers have been so involved before major
design decisions have been taken. The A3XX-100 basic, long-range passenger
plane will be the nucleus of the A3XX family, with seating for 555
passengers. The Combi version will be a long-range, high-capacity widebody
with an extremely large cargo capacity of 7 to 11 pallet positions on the
main deck & up to 11 on the lower deck. The Combi version will be
capable of carrying a full passenger load of 350-450 people as well as 50
tons of cargo. The freighter variant will feature 3 cargo decks, the upper
with 18 pallet positions and the main deck 28, with as many as 11 on the
lower level. This will mean up to 150 tons max payload. There will be an
upper-deck cargo door in the forward fuselage as well as a main deck door.
Airbus projects that 20 years from now, the freighter fleet is expected to
double while cargo traffic is set to more than treble. Airbus sees the Asia
long-haul & regional markets involving will see the strongest growth of
all, accounting for almost half of all air-cargo traffic by 2015.
Intercontinental long-range traffic between major hubs is expected to make
up 60% of traffic by that year.
- New Troubles For Arrow Air ........... as the Hialeah,
Florida based air cargo company that transports goods to/from the Caribbean,
Central America & South America, will plead guilty to making false
statements to the Federal Aviation Administration (FAA). Arrow will pay
US$5M in fines & restitution for stripping two B-727Fs and attempting to
resell the parts without first inspecting them to determine whether they
were safe for reuse, the U.S. Justice Department said. Arrow Air removed
more than 3,000 parts from the planes in 1994 & 1995 and transferred
them to a parts sale company it also owned, said Justice. The FAA suspended
Arrow Air in April 1995 when it discovered the problem. The cargo airline
was given permission to begin flying again 2 months later, said Kathleen
Bergen, an FAA spokeswoman in Atlanta.
- Throughput .......... is up as the Geneva-based Airports
Council Int'l showed world cargo UP 7.9% to 55.7 million tons in 1997. The
U.S. made good progress in December 1997, as freight & express traffic
was UP 12.3% Also UP was U.K.s Manchester Airport which reached a record
98,765 tons in 1997. Amsterdam's Schiphol Airport was UP 6.1% for 1st
quarter 1998 with 297,639 tons of cargo.
- Volumes .......... for Lufthansa cargo/mail tonnage
carried in 1st quarter 1998 was DOWN by 2.5% on the year-earlier level to
395,000 tons. Continentals cargo ton miles for April were 72,693, UP 27.2%
- Proudly Serving "COLUMBIAN" Coffee ......... as
an American Airlines flight from Cali, Columbia to Miami last month featured
a new menu item. After an obviously stupid smuggler chose the plane's coffee
maker as a hiding place, the crew brewed up a pot of what turned out to be
liquid heroin. Luckily, an alert crew spotted the problem and didn't serve
any of the to passengers, reports the Associated Press. It was unclear
whether crew members tried the mix, but a rumor persists that the pilot was
subjected to the brew. There is no word from the pilot. There is no word
from Juan Valdez.
- CORRECTION: Our reference to freighter safety equipment
last month should have been to UPS, not FedEx.
- World's Largest Container Vessel Joins The Line
........... as P&O Nedlloyd takes delivery of its first 6,690 TEU ship
to its Asia/Europe lane. M/V P&O Nedlloyd Southampton, rates as the
largest containership afloat based on capacity, even ahead of the
"S-class" vessels of Maersk Line, which have a declared capacity
of 6,600 TEU. She is the first in a series of four 6,690 TEU ships ordered
by P&O Nedlloyd.
- Alameda Speeds Ahead ........... as activity is
accelerating the nation's biggest public works project. The Alameda Corridor
Transportation Authority (ACTA) has approved a contract for design of
railroad bridges over Dominguez Channel in Long Beach & the Union
Pacific Railroad Bridge over Soto Street in Los Angeles. The Alameda
Corridor is a 20-mile railroad freight express line linking the ports of
Long Beach & Los Angeles to the transcontinental rail yards just east of
downtown Los Angeles. It will speed the flow of cargo by consolidating rail
lines & eliminating grade crossings. The US$2B project, the biggest
public works project in the nation now underway, also includes widening of
railroads & other work to improve the flow of vehicle traffic.
Construction is scheduled for completion in 2001. While LAX must have this
project, few pause to consider the plight of the "port truckers",
whose job it has always been to pull the containers from berth to rail.
- Long Beach Wins COSCO Terminal Appeal .......... as the
Port of Long Beach has won a key round in a legal fight over the port's plan
to develop a container terminal for China Ocean Shipping Co. at the former
& famed Long Beach Naval Station. The California Court of Appeals has
overturned a lower court decision that said the port illegally
"pre-committed" to the terminal project before completing state
environmental reviews. A local historic preservation group had claimed that
the port failed to consider other alternatives in its environmental review
of possible uses for the mothballed naval base. The latest court ruling
doesn't clear the way for the terminal project. It still requires approval
from the Navy and completion of an additional environmental review by the
port & the U.S. Navy. On this site Admirals Nimitz & Halsey hailed
the world's 1st aircraft carrier, USS Saritoga. Years later the USS Missouri
sailed from Long Beach ...... for Tokyo Bay....... for Korea ....... and for
the Persian Gulf. Indeed, Long Beach Naval Station was "THE PLACE"
for the U.S. Navy in the 20th Century. We welcome our trading partners, but
mourn the potential loss of an historical site.
- Sea-Land & NVOCCs Under Scrutiny - Could Be Trouble
.......... as the U.S. Federal Maritime Commission (FMC) has launched a
probe into Sea-Land Services, Inc. over charges it carried cargo at rates
below the tariffs filed with the commission, in violation of the U.S.
Shipping Act of 1984. The carrier has been accused of allowing shippers on
the westbound Pacific trades to pay for cargoes moved in FEUs at TEU rates.
FMC is said to have found that abuse of the Transpacific Westbound Rate
Agreement's equipment substitution rules was almost routine. If Sea-Land is
found to have broken the 1984 Shipping Act it could be fined as much as
US$25,000 in each case, plus up to US$5,000 each shipment for other breaches
of the law. The FMC has examined evidence from NVOCC World Pacific Container
(USA) Inc. & other common carriers in the U.S. West coast-Asia trades.
The containers involved are said to have been loaded beyond the cubic
capacity first requested, enabling NVOCCs to reap the advantage of lower
freight rates. Sea-Land representatives are said to have sought cargo on the
basis that the company would substitute 1 x 40' containers for the 1 x 20'
units in return for business from World Pacific &other NVOCCs. The FMC
contends that some NVOCCs in the Los Angeles area had been responsible for
introducing the substitute equipment. Because of the actions of its Los
Angeles sales representatives, Sea-Land is considered to have been a party
to their actions. The FMC says the fact that the NVOCC would have to
misdeclare the shipments cubic measurements was central to the malpractice.
The NVOCCs are said to have misdeclared cargo measurements although they
usually gave cargo weights correctly, as well as being shown on the master
bill of lading (MB/L). The FMC maintains that substitution violations took
place both in conjunction with, and independent of shipments on which the
commodity had been misdescribed. KD Furniture, anyone?
- Japan Could Be In Trouble - Again? ............ as the
FMC Chairman says action could be Initiated as Japan is not reforming Port
practices as agreed. A U.S. Information Agency article reports that Federal
Maritime Commission (FMC) Chairman Harold Creel stated at a recent trade
conference that last year's U.S.-Japan agreement to take concrete steps to
eliminate the barriers that impede Japan's harbor services industry has
fallen short. According to the article, Creel stated that the FMC 'will
initiate whatever action it believes appropriate to address these barriers
to free trade.' In 1997, relevant parties in the U.S. & Japan signed an
agreement to modify Japanese port practices, including Japan's 'prior
consultation' system, & to minimize the influence of the Japan Harbor
Transportation Association (JHTA). According to the article, Creel said that
prior consultation problems and terminal service restrictions still exist
and that the time has come for implementation of those changes to which the
Japanese government agreed.
- More On COGSA Reform ........ as the Journal of Commerce
reports that Senator Kay Bailey Hutchison (R-TX) has announced that she
wants to revamp the 1936 Carriage of Goods by Sea Act (COGSA), which governs
ship owners' liability for cargo lost or damaged at sea. The article states
that Hutchison's proposed changes would be based on a shipper-carrier plan
developed by the Maritime Law Association of the U.S. and would, among other
things, throw out carriers' 'error of navigation' defense & increase
damage limits from the current US$500 per package to US$1000. Hutchison,
R-Texas, predicts the U.S. House of Representatives will pass legislation
within 30 days to overhaul the 1984 Shipping Act. The Senate bill would
allow several key points of shipper- carrier service contracts to be kept
confidential, and would allow continued antitrust immunity for conferences.
Non-vessel-operating common carriers are seeking changes that would allow
NVOs to sign service contracts with shippers. For a full copy of COGSA,
visit the "Law Navigator" at http://cargowlaw.com
- "In-Plant" Forwarding Legal? .......... as a
forwarder has asked the U.S. Federal Maritime Commission (FMC) to clarify
its regulations governing forwarders, particularly "in-plant"
services that some forwarders provide to shippers. RF International, a New
York-based forwarder, said some of its competitors have questioned the
legality of its automated services and in- plant forwarding services. RF
Int'l is asking the FMC to clarify its rules governing automation by
forwarders and the use of in-plant services, in which forwarders post
staffers at a shipper's plant, warehouse or offices.
- Indonesia Impact ......... as one container terminal, out
of three, at Jakarta's Int'l port, Tanjung Priok, continued operating last
week but only small amounts of cargo were handled. One shipping company
executive reported that other ports, including Surabaya & Belawan, were
"working normally". However most expatriates in shipping-related
activities had left Indonesia. Indeed, expect delays and pray for calm.
Meanwhile, the War Risk Rating Group in London has placed Indonesia on the
list, meaning that war risk insurance is recommended for vessels transiting
to or from the country.
- More Positive Eastbound Indicators ........... as Honda
Motors has agreed to the rate increase to be put into force by the
Japan-U.S. Eastbound Freight Conference (JUEFC). In agreeing to the new rate
Honda is one of the 1st shippers to apply to JUEFC to renew its service
contract. Honda will retain its minimum guaranteed cargo volume at 180,000
tons per year, giving it the most favored service contract for automobiles.
Many of JUEFC's current 32 service contracts have yet to be renewed while
shippers wait to see what decision other shippers make, especially
auto-makers. Nissan & Toyota have also agreed to the rate hike and are
entitled to the most favored service contract treatment for guaranteeing an
annual cargo of 180,000 tons. Much of the cargo Honda ships to the U.S. each
year, to which the service contract applies, is complete knockdown (CKD)
- EU Hits TACA? ......... as the European Commission is
expected to impose heavy fines against the Trans-Atlantic Conference
Agreement according to EC sources reported in the Journal of Commerce.. A
source within the EC said a formal decision on the TACA case may be issued
as early as June. In a recently leaked document sent to national governments
of the European Union, the EC is reported to have recommended the imposition
of heavy fines against TACA for allegedly abusing their dominant position in
the transatlantic trade, as well as violating prohibitions against joint
intermodal pricing in Europe. It was stated that TACA carriers are expected
to take the case to court if the EC finds against them.
- U.S. - Med Rates Rise .......... as the U.S. South Europe
Conference (Maersk, Sea-Land & P&O Nedlloyd), successor the South
Europe American Conference, has announced freight rates for containerized
cargo from the Mediterranean to the U.S. will be increased effective June
1998. While eastbound tariffs remain unchanged, westbound rates for dry
& reefer boxes are going to be raised by US$25 per TEU & US$50 per
- Pirates Strike .......... as armed pirates hijacked the
tanker M/T Petro Ranger on 16 April and siphoned off most of its 11,000 ton
cargo of diesel & kerosene bound for Ho Chi Minh City. The attack took
place on a 3-day journey from Singapore to Vietnam. The tanker is now in the
port of Haikou on China's Hainan Island. A Petroships official Clement Ong
said none of the ship's 21 crew members took part in the hijacking. He said
the hijackers were taken from the vessel by Chinese officials. Petroships
Pte. Ltd. had offered a U.S.$50,000 reward ...... and the pirates were
caught this month.
- ANZDL Goes "E" .......... as United Direct
Line, an arm of Australia New Zealand Direct Line, has proved itself to be
cyber-savy by progressing on it's journey to a paper free system of
operations. UDL has eliminated delivery orders (D.O.s) for containers being
exported from Australia to New Zealand, the main impetus for this being the
desire for a smoother journey. Trials in Aukland have been underway for the
last 3 months and are reported to have been very successful. The company
decided in April to extend the elimination of D.O.s to other ports. In other
Australian news, the High Court of Australia has ruled in favor of the union
and against Patrick Stevedores in the country's port dispute. According to a
statement from Mediterranean Shipping Co., operations at the terminals
should now be returned to normal.
- Brazil's New Transshipment Hub ........... as Brazil
plans to capture a larger portion of South America's cargo flow by building
its 1st transshipment hub at Port Sepetiba, expected by Brazil's federal
government to develop into the region's main transshipment link. Sepetiba
lies between Santos & Rio de Janeiro & is expected to capture more
than 50% of cargo flows from Brazil's southeastern states, and as much as
25% of the cargo from other regions such as Argentina & Uruguay within
the next 20 years. Sepetiba eventually will be able to handle 22 container
ships at any one time and is projected to see a throughput of more than half
a million containers per annum by the year 2005. At present even coastal
container services are uncommon in Brazil.
- Evergreen Cuts LAX Transit By 3 Days - Bye Bye Busan
.............. as times between Hong Kong & Los Angeles have been
reduced by 3 days with the adding of Keelung to the port rotation, and
dropping Busan. Evergreen has reduced transit times from 17 days to 14 days
on the Hong Kong/Taiwan to Los Angeles run by this process. The addition of
Keelung to its transpacific route is hoped to have the added advantage of
reducing pressure on Evergreen's Kaohsiung terminal, where another terminal
is under construction, but not due to be fully operational for another 18
months. Decreasing Port of Los Angeles delivery times is in keeping with a
new 32-year contract just signed with the Port of Los Angeles which gives
Evergreen priority for expanding its current facility to include a 4th
berth, as well as freeing up extra land for future development. More than
20% of current box throughput at Los Angeles is handled by Evergreen, which
funnels some 60% of its west coast business is through the port.
- Your Cargo Will Be In Fast Company .......... as
FastShip, Inc. took a giant step last week toward establishment of its
high-speed transatlantic ocean shipping service. It received verification of
its unique ship design by a major Int'l certification organization. Det
Norske Veritas, the Oslo-based ship classification society, issued its
initial report on FastShip's plans to construct a fleet of ships based on
the merging of a unique hull design with a gas turbine propulsion system
that will allow transatlantic crossings in less than 4 days at average
speeds between 35 & 40 knots. The study concluded that a FastShip would
be able to maintain speeds up to 40 knots even in extreme ocean conditions
where it would often be required to confront waves up to an average 24.6
feet or 7.5 meters. This analysis included calculations based on the ship
also encountering rogue waves as high as 50 feet.
- El Nino Slows Africa .......... as shipping lines at Port
Mombasa in Kenya has imposed a US$70/ctnr surcharge which, according to the
Kenya Port Authority (KPA), is due to delays caused by El Nino. The Int'l
Organization of Vessel Sharing Agreement (IOVSA) members that are trading in
the area issued a notice last week stating that "shippers are aware
that major delays have occurred at the port since the end of December 1997
and in the foreseeable future such berthing delays are expected to
continue." The KPA has stated that it is the heavy rains brought by El
Nino that have caused the collapse of many of the country's roads & rail
links and has dramatically slowed cargo handling.
- APL Adds Stacktrain Units .......... as customer demand
within North America for the high-capacity 53-foot container continues to
climb, APL, operator of the most extensive stacktrain system in North
America, plans to bring on as many as 2,400 more 53-foot units this year,
along with matching chassis. The appeal of the longer box is that it offers
8 to 10% greater cubic capacity than the 48-foot container. "This means
manufacturers and retailers of low-density, cubic commodities can load more
product to a single container, reducing overall loading and distribution
costs", according to APL.
- New P & O Chief .......... as Mike Seymour will take
over as president & CEO of P&O North America on June 1, replacing
Christopher Rankin. Mr Seymour has been with the company for 27 years and is
currently director of European & Asian trades for the line.
- You're The Cargo! ............ as M/V Heemskerck
(Dutch-registry 49,730-dwt containership built in 1978, operated by P&O
Nedlloyd Container Line Ltd.), which operates between southern Africa &
Europe, will receive three double-berths for passengers by July 1998.
- Throughput ........ as Port of Singapore (PSA) set a
record this March for the amount of boxes handled in one month. The port
handled a total of 1.31 million TEU, the highest containerized cargo
throughput recorded since October 1997 when PSA dealt with 1.27 million TEU.
Despite the economic problems that have plagued Asia since mid 1997, the
port has been able to show a 10% increase on March 1997 figures. Malaysia's
Johor Port Berhad cargo throughput for 1997 totaled 20,805,731 fwt, 9.4% up
on 1996, 9,597,286 fwt of which were exports. Vessel calls rose 3% to 6,089,
50% by foreign vessels. The port has almost doubled its overall capacity to
40 million tons & is now able to handle more than 1 million TEUs,
compared to 600,000 in 1996. Port Ningbo, formerly a sleepy transit port
between Int'l & domestic markets is now one of the largest container
shipping ports in the country as 1st quarter stats show a 40% increase over
same period 1996 with the port now handling 78,500 TEUs. The total TEUs
handled for the year 1997 was 250,000. India saw a 15% total up turn as the
rate of growth in cargo traffic in 1997-98 was topped by Kandla Port, 5.1
million tons, with Calcutta in 2nd place at 4.98 million tons. Throughput
China's Shenzhen ports in the 1st quarter rose quickly to 358,000 TEUs, a
70% increase in the container throughput when compared to the same period
1997. The Port of Hamburg, Europe's 4th largest port enjoyed a total cargo
turnover of 76.7 million tons (3.34 million TEU) in 1997, an almost 8%
increase on 1996 figures. Antwerp showed the largest percentage growth among
the Europeans, registering an increase in throughput of 11.9% over 1996 to
reach 2.97 million TEU. The other European ports in the top 20 are Bremen
(1.7 million TEU), Felixtowe (2.24 million TEU), Hamburg (3.34 million TEU)
&Rotterdam (5.4 million TEU).
- MIA Laundry Loosing Its Starch? ......... as recent
stories in the Miami Herald report that more than US$120,000 in Port of
Miami money was secretly funneled to the Democratic National Committee and
then covered up last year with a phony letter claiming the funds were paid
for construction expenses.
- M/V Star II Limassol - A Sweet Killer.............. as a
massive spill of brown sugar from the Cypriot cargo ship M/V Star II
Limassol, damaged when it ran aground earlier this month, may be responsible
for the deaths of thousands of fish in Kingston Harbor. Scientists suspect
the sugar may have altered oxygen levels in the harbor, suffocating fish,
crabs & lobsters now washing up on shore, Environment Minister Easton
Douglas said. The vessel dumped tons of brown sugar as it was being towed
into the harbor on April 15, a week after running aground off Jamaica's east
coast. Biologists from the University of the West Indies & the Port
Royal Marine Laboratory were still exploring other possible causes of the
fish die off, including a chemical leak unrelated to the cargo ship.
Officials are waiting for more tests before deciding whether to pursue
charges against the ship's crew. The dangers of brown sugar are well known.
As the world is now so taken by the movie "TITANIC", we seriously
question what the response might be if the public came to know just how
dangerous is the sea. Make certain your customers know the truth. Arrange
quality marine cargo insurance for all shippers and let them see the following
Ocean CARGO disasters this month include: ..........
1.] 18 April, 2 crew of M/V Sea-Land Mariner (Marshall Island-registry
containership) were injured on 18 April after an explosion in a container
ignited a fire that burned for 10 hours. The ship was 130 miles southwest of
Crete in Greece when the fire began. One person was rescued from the water by a
Swedish vessel and taken to the U.S. Navy's lead ship of the U.S.S. Wasp (LHD
1)-class Helicopter/Dock Landing Ship;
2.] 18 April, M/T Nissho Maru (Japanese-registry motor chemical tanker) &
M/V Yamkuni Maru No. 3 (Japanese-registry) collided in Japan's Inland Sea. The
latter suffered damage to its starboard side near the engine room has well as 3
cargo hold fractures. The ship took on water and was towed to Yanai, Japan. The
Nissho Maru had minor damage;
3.] 19 April, Sri Lanka Navy vessels attacked vessels of the Liberation Tigers
of Tamil Eelam early 19 April off northeastern Sri Lanka, sinking at least five.
At least 10 LTTE members were killed near Trincomalee;
4.] 21 April, M/V Koznitsa (Bulgarian-registry) grounded in Rosario and was then
hit by a barge, causing substantial starboard hull damage;
5.] 21 April, containership M/V Heng Hoi 308 and an oil tanker, collided in Hong
Kong on 21 April. Both vessels were Chinese. Three Chinese crew were injured.
The collision was southwest of Tsing Yi Island in the New Territories. The
tanker was not seriously damaged but the containership began flooding;
6.] 21 April, M/V Koon Hong 211 (Chinese-registry containership) sank off Hong
Kong. Five beaches were closed as one of 17 containers aboard the ship contained
ammonium chloride. The ship was anchored off Tuen Mun opposite Butterfly Beach,
southwest of Tsing Yi Island in the New Territories. Five local beaches
(Butterfly, Cafeteria Old, Cafeteria New, Golden & Kadoorie) were sealed. Of
the other 16 containers, 13 had batteries and 3 had metal items. Nine of 17 have
been recovered but not the one containing the ammonium chloride;
7.] 23 April, M/V Sirius (Belize-registry) capsized & sank following a
collision with M/V Yushin Maru No. 8 (Japanese-registry) off Kitakyushu, Japan;
8.] 24 April, an 11-mile section of the Mississippi River south of St. Louis was
closed after 137 barges broke their moorings. The section reopened at 1530 25
April. One barge carrying grain sank but the rest were recovered. According to
the U.S. Coast Guard, about 24 barges broke free at a fleeting area near an
Anheuser-Busch facility in St. Louis. As they floated downstream, they hit
barges in other fleeting areas and caused the others to break free;
9.] 25 April, M/T Tom Elba (Portuguese-registry chemical tanker) and M/T Helle
Wonsild (Danish-registry) collided in the Skagerrak Strait. The Tom Elba
suffered minimal damage but the Helle Wonsild was holed in a fuel tank and
sailed to Skagen, Denmark.
10.] 25 April, M/V Rema (Belize-registry) sent out a distress message in the
North Sea while sailing with 930 tons of redstone from Berwick-on-Tweed,
England, to the Netherlands with a crew of five. A search of the area by the
British Coast Guard found a capsized lifeboat & a small petroleum slick. The
Trinity House Lighthouse Service said this week it has found a shipwreck it
believes to be the Rema;
11.] 27 April, M/V Marine Ranger (Liberian-registry) and M/V North Countess
(Greek-registry) collided south of Flores Island near Montevideo, Uruguay.
Damage is not known. The Marine Ranger was sailing to Buenos Aires, while North
Countess was sailing from San Pedro, Argentina, to Necochea, Argentina.
13.] 27 April, M/V Heung-A Tokyo (South Korean-registry containership) & M/T
Sun Duke (Panamanian-registry) collided off Japan on 27 April. The Heung-A Tokyo
was sailing from Shimizu, Japan, to Ulsan, South Korea, and the Sun Duke was
sailing from China to Tobata, Japan, with coal tar;
14.] 27 April, two crew of M/V Natalemar were reported missing in the southern
Ionian Sea. The Syrian citizens disappeared at 0400 when the ship was near
Greece's Strofades Islands. Two life jackets are also missing;
15.] 29 April, a North Korean- registry cargo vessel sank in the Yellow Sea
after it collided with M/V Yang Lin (Chinese-registry 13,635-dwt dry cargo ship
operated by COSCO Guangzhou). One crew is missing and 2 were injured;
16.] 29 April, M/V San Clemente (Liberian-registry containership) ran aground at
the access channel to a COSIPA terminal in Santos, Brazil;
17.] 30 April, the Bagmati River ferry capsized near Burawghat, India, killing
about 25 people and leaving 30 missing;
18.] 1 May, M/T Four Seas (Cayman Islands-registry) and M/V Tong Hai
(Chinese-registry operated by COSCO Shanghai) ran aground in the Western Scheldt
of the Netherlands while trying to avoid a collision following rudder damage to
the Tong Hai;
19.] 4 May, eighteen stowaways from Morocco were found in containers at the Port
of Rotterdam. The men hit the walls of containers aboard M/V Rendsburg
(German-registry containership) as the ship neared the port entrance. Local
police listened outside 133 containers before finding all the men. Earlier
during the ship's voyage, 32 stowaways were found during a call at Casablanca,
20.] 4 May, M/V Spring Dream (ro/ro operated by Cool Carriers A.B.) has been
towed to Cape Town, South Africa, by the John Ross (St. Vincent and the
Grenadines-registry tug). The 25 crew abandoned the ship on 17 April after it
caught fire about 104 miles west of Port Nolloth, South Africa. The crew boarded
a fishing vessel after a fire that began in the generator room & spread to
the rest of the ship. Damaged areas reportedly include the bridge;
21.] 5 May, the tug Towing Wizard (St. Vincent & the Grenadines) and M/V
Anangel Honour (Greek-registry) collided just before 0100, seven miles east of
Dover, England. The Towing Wizard was sailing from Tilbury, England, to the
Black Sea and was badly damaged especially around the starboard bow. It towed to
Dover and 4 crew were hospitalized. The empty Anangel Honour has severe port
side damage including a large gash that breached the hull;
22.] 5 May, - military cargo - 4 crew of the Royal Australian Navy's Underway
Replenishment Ship H.M.A.S. Westralia (O 195) were killed & another 9 were
injured in a fire during a naval exercise near Rottnest Island, Western
Australia. The engine room fire began and spread through a lower deck of the
ship while a ruptured fuel line was being repaired. The vessel lost power soon
after and the fire took 1.5 hours to extinguish. The dead were 3 men & 1
woman. H.M.A.S. Westralia is home ported at Fremantle, Australia;
23.] 6 May, Nine people are missing after a fishing vessel capsized following a
collision with M/V Vishva Parimal (Indian- registry dry cargo ship) in the East
China Sea at 1900 hrs.. The fishing vessel, with a crew of 11, flooded about 81
miles off Cheju Island (Ed: one of the most beautiful places on earth), South
Korea. Two crew were rescued. Vishva Parimal was sailing from India to Busan,
24.] 7 May, Twelve bodies have been found near Sabah, Malaysia, and at least one
has been identified as crew of M/V Virgin Pearl (Philippine-registry). The
vessel sank 4 April near Balut Island, Philippines, after rough seas damaged the
ship & it lost power(see The Cargo Letter )
. It had been reported that all 24 people aboard, including the 15 crew, were
rescued by M/V Chongket. That report is now seriously questioned. The Virgin
Pearl was sailing from Manado, Indonesia, to Davao.
NOTE: Due to seasonal weather there were many, many more cargo vessel
groundings, barge losses, fires & other disasters we had no room to report.
Large loss of life was reported in the fishing fleets and on ferries, but it
does not involve cargo and is nor reported. It was another BAD month at sea. We
mourn the many vessels lost.
NOTE: 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.
As voted by readers of the "misc.transport.air-industry.cargo"
Internet discussion group & the AIRCARGO Mailing List:
Cargo Law - Multifaceted site of Countryman & McDaniel -
great "TRANS-CAMS!" , legal resources and search links.
Martinair - Loading configs, schedules, and online auctions
- all well laid out.
Reuters - All-you-can-eat air cargo news.
Finnair - The national airline of Finland.
Cargomarket - Subscription based searchable trade database.
Korean Air - A bit graphic-intensive, but beautifully
Airborne - Clean new site with easy navigation.
Travelocity - Search for available airlines by city, region,
JAL Super Logistics - Simple yet fun page - VR, Quicktime,
Aviacisn Espaqola - Spanish and Latin American airline info
- en Espaqol
The MTA-IC Top 10 is updated monthly. To recommend a site
for consideration, see:
Here are our suggested world wide web sites of the week for your business,
your information and your amusement ...............
The Bridges of Laredo ........ six LIVE! cameras provide 24
hour coverage of America's busiest commercial border crossing, plus 2.5 million
people per day.
SmartShip ......... asks a user for the 'to' & 'from'
zip codes of their package, as well as its weight. The user sees a chart showing
current prices to ship their specific package, listed in order by several
shipping couriers. SmartShip breaks down the prices by each courier's guaranteed
Colography Group ....... info regarding expedited worldwide cargo trends. A
for pay service.
RMS Titanic ......... index to wide variety of sites
Build A New Titanic?
Tracking Your Investments
Top 10 Seinfeld Sites
El Al Israel Airlines v. Tseng No. 97-475
Certiorari granted: 05/18/98 (acceptance for hearing)
Decision below: 122 F.3d 99
Court below: U.S. Court of Appeals, 2nd Circuit
At issue in this aviation case is whether the Warsaw Convention exclusively
precludes any recovery for a passenger's injuries involving Int'l transportation
if the injuries were not sustained by an "accident" within the meaning
of the Warsaw Convention and whether a plaintiff may bring an action in state
court for the same injuries after being denied a remedy under the Warsaw
Convention. The court below held that the security search of Tseng before she
boarded an Int'l flight was not an "accident" within the meaning of
the Warsaw Convention and those injuries may be pursued in state court if the
Warsaw Convention does not apply to personal injuries suffered during the course
of an Int'l flight.
Dooley v. Korean Air Lines Co., Ltd. No. 97-704
Heard By U.S. Supreme Court on 27 April 1998
Court below: U.S. Court of Appeals, District of Columbia Circuit
At issue in this maritime law case is whether the Death on the High Seas Act
(DOHSA) preempts a survival cause of action under general maritime law for the
pre-death pain & suffering of decedents in an airplane crash over Int'l
waters. The action was brought by the personal representatives of three
passengers on board Korean Air Flight 007, en route from New York to Seoul,
Korea, on September 1, 1983. All passengers were killed when the aircraft was
shot down after crossing airspace of the former Soviet Union. DOHSA provides for
a cause of action for the death of a person caused by wrongful act or neglect on
the high seas. It also, however, precludes a survival action for pain and
suffering endured by decedents before death. The court below concluded that
general maritime law does not afford a survival action because DOHSA preempts
such an action. The U.S. Supreme Court will now decide the case in a written
opinion this summer.
U.S. Imports By TEU:
1. Fritz Companies, Inc 311,911
2. Tower Group Int'l 117,186
3. Kuehne & Nagel (Blue Anchor) 98,748
4. Schenker Int'l (Sea Cargo Int'l) 56,905
5. Nippon Express 47,679
6. AEI (Radix/Votainer) 47,512
7. Panalpina (Pantainer Exp.) 44,243
8. Carmichal Int'l Service 38,299
9. Translink Shipping 35,082
10. Mitsui Soko 31,362
U.S. Exports By TEU:
1. Direct Container Line 34,757
2. Shipco Transport 29,666
3. Kuehne & Nagel (Blue Anchor) 27,966
4. Nippon Express 27,639
5. Fritz Companies, Inc. 24,776
6. Ocean World Lines 23,354
7. Panlpina (Pantainer) 17,864
8. Schenker (Sea Cargo Int'l) 16,549
9. Marubeni 15,193
10. Mitrans Corp. 15,128
-- by Robert F. Caton, CSTA
I was asked to view an Information U.S. Customs Pipeline Draft which is
limiting the cargo manifest filing for freighter aircraft at JFK from between
08:00-16:30, 7 days per week. Presently all carriers can file cargo manifest 24
hours per day at one of the 3 primary Int'l passenger terminals. Passenger
aircraft will continue to be able to file cargo manifest 24 hours per day, yet
Customs is looking to require Cargo Manifest for Freighters to be filed within
the limited window.
Part of the problem is that forwarders have little idea what this means,
since filing cargo manifests has been solely up to carriers. Typically a carrier
files an out-bound cargo manifest within 2 hours prior to flight departure. Most
freighter aircraft operate during off hours which means late at night. So either
1 of 2 things will happen. The carrier must submit its manifest by 16:30 for a
flight that may depart at 01:00 the next morning. And I think we all know that
it's nearly impossible to get a consolidation ready by 16:00 and delivered to
the carrier in time for the carrier to file it's manifest. The other alternative
is to delay the movement of air-cargo by 1 day. Thus, if the forwarder drops
freight off at 21:30 it will have to wait until the carrier files manifest the
following day, delaying cargo movement 1 entire day.
Because there has been very little concern expressed to Customs, it may
simply go ahead and begin this practice un-challenged by all those that would be
effected by the new policy. Although many may just see this asa JFK problem,
many readers use JFK as a major gateway. BWI/BOS/PHL/IAD/ATL all take advantage
of the JFK gateway & are dependent upon the arrival time of cargo to the
outbound carrier. The new process may delay interline cargo 1 day.
This brief background goes back to SED and the issue of Manifest Compliance.
For years Customs & Commerce have complained that export information has
been less then accurate. Here are some statistics:
- Air Waybill Reporting: Only 47.2% of manifests reviewed included all of
the House manifests. Only 48.7% of manifests include IE's and T&E's for
all airwaybill noted on the CF7509.
- SED Reporting: Only 37.6% of manifests reviewed had all required SED's
attached to the Customs Complete manifest. Of all the SED's presented only
60% were completed correctly. Only 59.6% of the CF7509's were properly noted
to show individual air-waybill exemptions from SED filing.
These were random manifest selections from a survey of 5 designated ports.
Now because of the rather low documentation compliance, U.S.Customs is
looking at these tactics to improve compliance. Customs does not have enough
manpower to assign 24 hour per day for a manifest review team so they want to
shorten the submission window, where each manifest can be scrutinized before
freighter departure. The concern is for Int'l cargo outbound movement but I
think through this newsgroup that more industry members should take a look at
this Customs Pipeline so you can be better prepared and protest this practice.
All U.S. ports should be prepared.
Robert F. Caton is President of CSTA Cargo Shipping Transportation Analysts
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