The Cargo Letter

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THE CARGO LETTER [330]
Air & Ocean Freight Forwarder - Customs Broker News
29 June 1998


Good Monday Morning from our Observation Deck...... overlooking the officially designated "Cargo City" area and....... Runway 25-Right, at Los Angeles International Airport, voted ``Best Cargo Airport in North America''. The famous ship RMS Queen Mary chased by a Russian submarine in Long Beach Harbor ! ......... read the details in Part 2, Freight Forwarder World Ocean Briefs.

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 make use of our web site .......... http://cargolaw.com

To post comments for our readers 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. Clinton’s China Visit is Living Lesson 
      in Democracy for Chinese
   2. Freight Forwarder Trade Briefs
   3. The Cargo Letter Financial Page
OUR "B" Section: FF World Air News
   4. Freight Forwarder World Air Briefs
OUR "C" Section:  FF World Ocean News
   5. FF World Ocean Briefs
   6. The Cargo Letter Cargo Damage Dispatches
OUR "D" Section: FF in Cyberspace
   7. The Cargo Letter "Cyber Ports Of Call"
OUR "E" Section: The Forwarder/Broker World
   8. New U.S. Int'l Transport Legal Cases
   9. Our U.S. Customs Service
      * A Day In The Life
  10. World Vessel Registries In 1997

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


1. Clinton’s China Visit is Living Lesson in Democracy for Chinese

-- by Warren S. Levine, for The Cargo Letter

SEATTLE, June 28 -- Having left domestic problems to the tabloids, U.S. President Bill Clinton kicked off his visit to China by providing the world’s biggest television audience an opportunity to see freedom of speech in action when he debated Chinese President Jiang Zemin yesterday in Beijing. In a country where it is improper to cause one’s host to lose face by posing an embarrassing question, Clinton took the offensive just by raising the matter of the 1989 massacre in Tiananmen Square to Jiang in front of a live TV audience across China and the United States.

The pragmatic Chinese President’s response was, “Had the Chinese government not taken the resolute measures (that they did), then we could not have enjoyed the stability that we are enjoying today.”

There were points of agreement, such as the mutual decision of China and the United States not to target nuclear weapons at each other, and points of contention, notably China’s repeated bid for U.S. approval of its membership in the World Trade Organization.

While it is true that China has taken enormous steps forward in areas where people are allowed to choose their own career path and true capitalistic cash- based street economies exist in full public view, they still lag behind in their progress toward granting human rights to their people.

Chinese hardliners -- former Premier Li Peng and others -- insist that these changes will eventually lead to the subversion of communism, proving only that they can indeed see the obvious.

Taiwan was reportedly pleased with the United States not changing its policy towards the Republic of China, however they spoke out against Beijing’s refusal to rule out the use of force against them.

Clinton’s next major event will be an address to students at Beijing University on Sunday night. Before the address, the delegation is expected to visit the Great Wall and the Forbidden City.

The President will then travel to Shanghai and Guilin before flying to Hong Kong on July 2, one day after the first anniversary of the Chinese takeover of Hong Kong. He returns to Andrews AFB on Friday.

One is almost tempted to go out on a diplomatic limb and put a wager on Air Force One stopping at CKS to top off its fuel and facilitate a brief, informal meeting on the way back home....

2. Freight Forwarder Trade Briefs

3. The Cargo Letter Financial Page


OUR "B" Section: FF World Air News


4. Freight Forwarder World Air Briefs


OUR "C" Section: FF World Ocean News


5. Freight Forwarder World Ocean Briefs

6. The Cargo Letter Cargo Damage Dispatches

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.] 14 May M/V Star B (Cypriot-dry cargo ship) attempted to lift & secure a lifeboat after a drill that had just been conducted by personnel of the U.S. Coast Guard's Marine Safety Office in Charleston, S.C. The Coast Guard personnel went inside the ship when the lifeboat fell and 5 of the ship's crew fell with it. One person was killed;
2.] 23 May M/V Caytrans Caribe (Belize-dry cargo) was reported flooding at 15 degrees 28.4 minutes north, 72 degrees 30.2 minutes west. At last report, it had a list of 45 degrees;
3.] 31 May M/V Bunga Orkid Tiga (Malaysian-registry) collided with M/V Kargem (Turkish-registry) off Kirecburnu, Turkey, in the Bosporus Strait. Both vessels were damaged and conditions included heavy fog;
4.] 1 June tug Kaye C. Green sank 1 June in Albemarle Sound north of Dare County, N.C. The 4 crew were rescued by the tug Blackwell;
5.] 2 June S.S. J.A.W. Iglehart (9,460-gt, steam bulk carrier built in 1936) damaged "Sunset Joe's", a bar & grill in Cleveland, with its stern as it was aided by a tug of Great Lakes Towing Co. to the Huron Cement Dock. The ship was carrying cement from Bath, Ontario, and was docking in a storm. It suffered superficial damage but the bar was heavily damaged;
6.] 3 June Two Philippine crew of M/V Sea Star (Danish-cargo) are missing after the ship collided with the F/V Masayoshi Maru No. 8 (Japanese-fishing vessel) and sank in the Caribbean Sea off Colombia. The ship was sailing with 2,000 tons of cement from Barranquilla to Port-au-Prince, Haiti;
7.] 3 June M/V Canmar Endeavour (Bermudan- containership) suffered an engine room fire;
8.] 8 June. Security personnel in the Turks and Caicos Islands reportedly fired on a vessel carrying 100 Haitian migrants on 8 June and it later capsized, killing as many as 30. Unconfirmed reports state that the gunfire, meant as warning shots, hit the sloop. Six bodies have been recovered but they did not suffer gunshot wounds. Another report stated that the passengers crowded to one side of the vessel after hearing the gunfire, causing it to capsize;
9.] 8 June M/V P&O Nedlloyd Barcelona (German-registry containership) and M/V Yuan Ming (Chinese- operated by the Chinese government) collided in the Strait of Malacca. The containership, sailing from Jebel Ali, United Arab Emirates, to Singapore, reached Singapore with a hole in its starboard hull, 4.9 feet above the waterline. The Yuan Ming anchored at Singapore with unknown damage. No injuries were reported;
10.] 8 June M/T Hamilton I (Panamanian) was disabled by fire at 34 degrees 37.1 minutes north, 15 degrees 08.4 minutes east, in the Mediterranean Sea. It was taken in tow by the Matsas Star (Greek- registry tug) to Piraeus, Greece. The ship was in ballast;
11.] 9 June. The chief engineer of M/V Agios Ioannis Theologos (Cypriot.) was killed when an air compressor aboard the ship exploded. The vessel was sailing from Richards Bay, South Africa, to Rotterdam, the Netherlands, when the explosion occurred 120 miles south of Portugal's Madeira Islands;
12.] 9 June. Three Pakistani Navy vessels took a half-submerged, unidentified tanker in tow for Karachi, Pakistan, after stopping an oil leak. The ship was spotted 3 June off Ormara, Pakistan, having been disabled the day before while sailing with 5,000 tons of heating oil from Bahrain to Mumbai, India. Oil spilling from the ship created an oil slick with a radius of up to 40 miles. The crew was rescued by M/V Kiran (Panamanian-registry) and the stricken tanker arrived in Karachi on 9 June. About 1,000 tons of oil remain aboard;
13.] 12 June M/V Alimad (Syrian-general cargo) capsized & sank at the anchorage at Mukalla, Yemen. All crew were rescued. The ship sailed from Gizan, Saudi Arabia, with 3,800 tons of bagged cement. There were no injuries. According to the Port of Mukalla, the Alimad anchored about 1,000 feet from the port to allow 2 other vessels to be worked. Less than three hours later, it had sunk;
14.] 13 June M/V Kuo Hsin (Panamanian-registry containership) & M/V Sea Ranger (Myanmar- containership) collided at Tanegashima, Japan. The Kuo Hsin was sailing from Keelung, Taiwan, to Tokuyama, Japan, with containers while the Sea Ranger was sailing from Tokyo to Hong Kong with containers. The Kuo Hsin suffered severe damage to its starboard hull including a leak from a damaged fuel tank. It returned to Keelung. The Sea Ranger had severe starboard hull plating damage, including around the forepeak tank. It sailed to Sasebo, Japan, on 14 June for temporary repairs;
15.] 13 June M/V Lidiya (Cambodian) had flooding its No. 1 & 4 cargo holds, and anchored off England's Isle of Wight;
16.] 13 June, the 3 people aboard the 44-foot S/V Golly Gee abandoned it 400 miles east of Wake Island in the Pacific Ocean. The 2 women & 2 men broadcast a distress message and activated an Emergency Position Indicating Radio Beacon. A U.S. Coast Guard HC-130H Hercules from Coast Guard Air Station Barbers Point, Hawaii, located the four in a life raft and dropped a radio to them. Two hours later, they were rescued by M/V Strong Texan (U.S.-registry operated by Van Ommeren Shipping for the U.S. Military Sealift Command);
17.] 14 June. The 5 crew of M/V Silvery Sea are missing after it sank following a collision with M/V Merkur (German-general cargo) off western Denmark. An empty life raft & several pieces of debris were found;
18.] 17 June M/T Bunga Tanjung (Malaysian.), maneuvering at a wharf in Keelung, Taiwan, collided with M/V Wei Fong No. 1 (Taiwanese-registry), which was loaded with limestone. The Wei Fong No. 1 sank at the wharf. There were no injuries;
19.] 18 June. A Polish Coast Guard vessel fired warning shots at the M/V West (Danish- registry cargo) near Swinoujscie, Poland, after it left port without necessary inspections. A subsequent boarding found the crew to be intoxicated, according to the Coast Guard. The vessel left port with the Coast Guard vessel giving chase, but did not stop despite radio & visual communications efforts as well as the firing of 10 green flares. Five warning shots from a deck gun were then fired and M/V West stopped. The West was escorted back to Swinoujscie for an inspection;
20.] 19 June M/V Atlantic Highway (Belize-registry operated by K Line.), leaving Malta Drydocks, collided with M/V Captain Zaman I (Panamanian-registry passenger ship) in Valletta, Malta. The passenger ship suffered unknown damage;
21.] 20 June M/V Paris (Cypriot-dry cargo ship) had an engine room fire sailing from Amsterdam, the Netherlands, to Medway Ports in England and after the fire was extinguished, the Paris was towed to Sheerness, England, by the motor tug Lady Madeleine;
22.]. 23 June M/V Stadt Cuxhaven (German-registry containership) collided with M/V Anina in Castries, St. Lucia. The Stadt Cuxhaven ran aground near facilities of Geest Industries (WI) Ltd. and was refloated with stern damage. The Anina sustained a large dent to its starboard bow;
23.] 26 June M/V Sunrana (Norwegian- registry) hit a barge near the new bridge across Copenhagen Sound in Denmark. The ship was holed on its port side above the waterline and sailed to Copenhagen for temporary repairs. The Sunrana was sailing from Rostock, Germany, to Tilbury, England, with bulk wheat.

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.


OUR "D" Section: FF in Cyberspace


7. The Cargo Letter "Cyber Ports Of Call"

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

Law Navigator ............ air & ocean law of the Int'l transportation industry. At the Cargo Law site.
http://www.cargolaw.com

Voice Of The Forwarder ............. let yours be heard as the Internet version of the prestigious Harris Poll, invites you to share your opinions with the people making decisions about policies that affect you, our industry, the products you buy, and the future course of your country. Your identity and responses are always kept completely confidential.
http://www.harrispollonline.com/register/HarrisPoll.html

IATA Cargo Information Center
http://www.iata.org/cargo/index.htm

TransAct Document Library ......... of the Transportation Action Network, sponsored by various U.S. government agencies.
http://www.transact.org/dlib.htm

FreightNet ......... world-wide index of freight forwarders. Registration is free.
http://www.freightnet.com/

Travels With Capt. Zunic .......... as the "Maris Freighter Crusies" site offers details, FAQ & pricing for container ships which offer passenger service on a wide variety of world-wide routes for a bit of adventure ...... or those who want to see the other side of our industry first hand. Many of these ship hit the small & exotic ports not seen by even the most savy travelers. Don't miss reading about Capt. Zunic's Top 10 Favorites. This site is listed at The Freight Detective Traveler site:
http://www.cargolaw.com/d.traveler.html

New U.S. Int'l Vessel Safety Management Code. Navigation & Vessel Inspection Circular (NVIC 4-98). Includes container vessels. U.S. Coast Guard to enforce, starting this month.
http://www.uscg.mil/hq/g-m/nvic/index.htm
....... list of ship which fail upcoming ISM Code inspections - to be banned. http://www.uscg.mil/hq/g-m/psc/psc.htm.

Transport Maps - Japan
http://www.jnto.go.jp/02map/japanmap.html

CargoLog ......... transport directory. Rate quoting.
http://www.cargolog.com/

Collapsible Dry Freight Container
http://www.hawkeng.co.za/

Romeu Spanish Ship Agents & Forwarders
http://www.romeu.com


OUR "E" Section: The Forwarder/Broker World


8. New U.S. Int'l Transport Legal Cases

Dooley v. Korean Air Lines Co. - U.S. Supreme Court
U.S. Supreme Court - No. 97-704

The United States Supreme Court unanimously held that the Death on the High Seas Act, 46 USC App. ss 761 et. seq., only authorizes a wrongful death action and not a survival action for pain and suffering. Therefore, the personal representatives of three passengers killed when Korean Air Lines Flight KE007 was shot down over the Sea of Japan on September 1, 1983, can only recover their own pecuniary losses. By authorizing only certain surviving relatives to recover damages, and by limiting damages to those relatives' pecuniary losses, Congress provided the exclusive remedy for death on the high seas. The Supreme Court held that petitioners' claim that general maritime law provides a survival action for pain and suffering and loss of society was implicitly rejected by Mobil Oil Corp. v Higginbotham, 436 US 618 (1978). For full text: http://supct.law.cornell.edu/supct/html/97-704/cpanel.html

United States v. Robinson - 9th Circuit Court of Appeals
No. 96-50573 June 4, 1998

Jury Instructions: Statutory Interpretation (Customs Case) Holding: The district court did not err when it refused to instruct the jury that the government was obligated to prove that defendant intended to deprive the government of customs revenue under 18 USC sec. 545 (sec. 545) which prohibits smuggling of goods in the United States. Defendant appeals his conviction under sec. 545 for smuggling goods into the US, and for the submission of false, forged or fraudulent commercial invoices. He contends that the jury should have been instructed that the "intent to defraud" element of sec. 545 requires the government to prove an intent to deprive the government of customs revenue. The court pointed out that the primary purpose of the statute was not to raise revenue, but to supervise & regulate the flow of imported goods. Therefore the jury was properly instructed that "intent to defraud" element of the statute means intent to deceive or cheat. Affirmed.

United States v. Ordaz - 9th Circuit Court of Appeals
No. 97-10312 June 5, 1998

Constitutional Law: Right to Privacy (Border Crossing) Holding: The U.S. Border Patrol's stop of Ordaz's vehicle for inspection did not violate defendant's Fourth Amendment rights where, although the patrol did not know specifically which vehicle to stop, there was reason to suspect that one of drivers stopped had committed a crime. At the US-Mexico border, a surveillance operator observed what looked like two men placing a bundle in a vehicle. However, because a tree blocked his view, the operator was unable to determine the vehicle's make. The operator notified Border Patrol. The patrol stopped four of six vehicles, and Ordaz was caught with two packages of marijuana in his trunk. The court ruled the stop was well within the guidelines established by the Supreme Court and, because the "likelihood of intercepting a criminal enterprise was clearly articulable" no warrant was necessary.

9. Our U.S. Customs Service

On a typical day our United States Customs Service examines:

On a Typical Day our U.S. Customs Service Effects:

On a Typical Day There Are 112 Other Enforcement Seizures of:

On a Typical Day our U.S. Customs Service Seizes:

SOURCE: United States Customs Service

10. World Vessel Registries In 1997

Lloyd's Register of Shipping's most recent World Fleet Statistics reports that Panama had the world's largest register at the end of 1997, with 6,188 ships of 91.128 million gross tons and an average age of 17 years. This accounts for 17 percent of the world's fleet. Liberia is second with 1,697 ships of 60.058 million gross tons averaging 12 years. Third was the Bahamas with 1,221 ships of 25.523 million gross tons averaging 16 years. In all, at the end of 1997, the world fleet totaled 85,494 ships of 522.2 million gross tons with 45,097 cargo vessels of 757.84 million deadweight tons. The average age of the fleet is 19 years with the youngest that of containerships at 10 years. The oldest average type is passenger and general cargo ships at 30 years. However, the oldest category includes only 342 ships of 600,000 gross tons. Tankers average 18 years. In 1997, 1,820 ships of 25.2 million gross tons were completed with Japan and South Korea responsible for 71 percent.

Other registries, ranked by decreasing gross tonnage, are: 4. Greece, 1,641 ships of 25.288 million gross tons, average 24 years old 5. Cyprus, 1,650 of 23.653 million,average 16 years old 6. Malta, 1,378 of 22.984 million, average 19 years old 7. Norway, 715 of 19.780 million, average 15 years old 8. Singapore, 1,656 of 18.875 million, average 11 years old 9. Japan, 9,310 of 18,516 million, average 11 years old 10. China, 3,175 of 16.339 million, average 18 years old 11. Russia, 4,814 of 12.282 million, average 17 years old 12. United States, 5,260 of 11.789 million, average 24 years old 13. The Philippines, 1,699 of 8.849 million, average 22 years old 14. St. Vincent and the Grenadines, 1,343 of 8.374 million, average 22 years old 15. South Korea, 2,441 of 7.430 million, average 20 years old 16. Germany, 1,125 of 6.950 million, average 17 years old 17. India, 941 of 6.934 million, average 15 years old 18. Turkey, 1,146 of 6.567 million, average 23 years old 19. Marshall Islands, 168 of 6.314 million, average 13 years old 20 Italy, 1,324 of 6.194 million, average 22 years old

Freight Term Of The Month .........

"Entry Filer Code". This is a U.S. Customs term. It refers to is a unique 3 character (alphabetic, numeric, or alphanumeric) code assigned to Customs brokers and importers who file entry documents for imported merchandise with the U.S. Customs Service. The code constitutes the first three characters of the unique number assigned to each entry filed with the Customs Service, and identifies the entity that prepared and filed the entry. Entry Filer Codes may also be assigned to others who are not entry filers, but who conduct business with U.S. Customs through the Automated Broker Interface (ABI), for example, international carriers participating in the Automated Manifest System (AMS).

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