The Cargo Letter
THE CARGO LETTER 
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
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
-- 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....
- ICAR Will Now Protect Exporters ............... as the
the major Int'l trade & transport insurance underwriter Intercargo
Insurance Co.,(NASDAQ:ICAR) has introduced "CONNECT" -- a broad
package policy developed exclusively to meet the needs of American
exporters. CONNECT is aimed at those companies, both manufacturing &
service insureds, in the 1st stage of going global. This segment is by far
the largest component of U.S. Int'l companies, and the segment of customers
most needing improved insurance coverage. CONNECT is a modular policy that
allows the insured to choose coverages on an as needed basis. The policy is
written in English with broad terms & conditions -- eliminating the
language barrier. Claims settlement is in the U.S., with limits &
settlement in U.S. dollars keeping currency valuation & fluctuation from
becoming a problem. Additional coverages available: Kidnap/Ransom &
Extortion; Int'l Voluntary Workers Compensation/Employers. Intercargo is the
leading provider of specialized insurance coverages for companies involved
with Int'l trade. Intercargo markets to CHBs, forwarders, logistics
providers, intermodal carriers, importers & exporters through appointed
independent insurance agents. Specialty products offered include U.S.
Customs bonds, commercial surety, cargo insurance, general liability,
workers compensation, truck liability and professional liability for Customs
Brokers & Freight Forwarders. The company has a Chicago HQ, plus
underwriting operations in the U.K. & Hong Kong. Call: 800/394-3909 or
847/517-2990 ext. 515
- Int'l Transport Law Site A Hit .......... as visitors to
the "Law Navigator" feature of the Countryman & McDaniel
Intertnet site broke records for the service in May. FAA HAZ MAT regs are
included, along with COGSA, the Warsaw Covention, etc.
- Rumble In The Jungle .............. as the U.S. Customs
Service & the U.S. Fish and Wildlife Service announced the dismantling
of one of the largest exotic bird & animal smuggling rings ever
uncovered by U.S. authorities. OPERATION JUNGLE TRADE was a 3 year
undercover operation, which involved more than 40 investigations both here
and abroad, and resulted in the seizure of more than 660 endangered &
protected birds and animals and the arrest and/or indictment of 40
individuals who were major distributors and traffickers of exotic wildlife
in the U.S. On May 28, 1998, Customs Agents served federal arrest and search
& seizure warrants in San Antonio, Texas; Pueblo, Colorado; St. Louis,
Missouri; & Nashville, Tennessee. These most recent enforcement actions
resulted in an additional 8 arrests; the seizure of an additional 20
threatened animals and the seizure of computers and records. Additional
warrants and arrests are anticipated in the near future. OPERATION JUNGLE
TRADE was worldwide in scope and uncovered the elaborate smuggling network
which operated across the U.S./Mexico border and sold the smuggled animals
and birds in 9 U.S. states as well as the Commonwealth of Puerto Rico and 10
other countries including: Australia, South Africa, New Zealand, Brazil,
Ghana, Egypt, Panama, Honduras, Belize, & Costa Rica. Many of the
defendants have been charged with violations of 18 USC sect. 1956, Money
Laundering, which carries a criminal penalty of 20 years imprisonment, a
$500,000 fine or both.
- Houston Plea For HELP! ............... as a Houston
business group is calling on the federal government to force Union Pacific
R.R. to sell some of its tracks in an effort to alleviate ongoing grid lock
problems. The Greater Houston Partnership is sending a resolution to the
federal Surface Transportation Board in support of that and other changes in
the 1996 merger agreement between Union Pacific & Southern Pacific R.R.
The merger gave Omaha, Neb. based U.P. control of more than 80% of the rail
traffic in the Houston area, the nation's largest petrochemical complex.
Critics have blamed the agreement for ensuing rail congestion along the Gulf
Coast. Forcing Union Pacific to sell some of its tracks to competitors could
be ``the best opportunity to regain some of what some feel we lost in the
merger,'' said Roger Hord, vice president of the partnership's chamber of
commerce division. In late March, the Surface Transportation Board asked
government and business officials to suggest changes in the conditions of
the merger agreement, specifically as it applied to the Gulf Coast. The
deadline for their suggestions is 8 July. Shippers & railroads then have
2 months to respond.
- Conrail Deal Narrows Field To 4 ......... as the U.S.
Surface Transportation Board's approval of the US$10.2B carve-up of the
10,700-mile Conrail system to NS & CSX shrinks the nation's major roads
to a foursome. In STB Chairman Linda Morgan's words, this move is the
"next step in restructuring rail service." The Untied States is
now served by four Class 1 railroads -- CSX, Norfolk Southern, Union Pacific
& Burlington Northern Santa Fe. However, captive forwarders &
shippers hope this move isn't merely the next step in shoddy rail service.
They remember problems (nightmares) associated with the UP's recent
absorption of Southern Pacific. CSX & NS officials insist the deal means
as much as US$1B in net benefits in selective freight rate reductions. We
- China Rails Rolls Forward ............ as the country has
started building a US$1.3B trunk railway line between the southwestern
provinces of Sichuan and Yunan. The 544-mile line between Neijiang and
Kunming is expected to be completed in 2002. China has said it plans to
invest nearly $30B in railway construction during the next 5 years.
- Interpool Makes Billion $ Deal For XTRA .............. as
the container leasing giant (NYSE:IPX) has announced that it has joined with
Apollo Management IV, L.P. ("Apollo") in entering into a
definitive merger agreement providing for the recapitalization of XTRA
Corp., a leading provider of transport equipment (NYSE:XTR)
("XTRA"). The recapitalization will be effected by a merger of
XTRA with a newly formed limited liability company that is wholly owned by
Interpool & Apollo. Interpool will make its investment through its
affiliate, Atlas Capital Partners LLC. Under the terms of the agreement each
share of XTRA may, at the election of its holder, be exchanged for either
US$65.00 in cash or a retained interest in XTRA equal to one share for every
share elected. The total value of the transaction is approximately US$1.9B.
After the merger, XTRA will be capitalized with US$325M in equity, of which
US$73.1M will be provided by Interpool, representing a 22.5% interest in
XTRA. Apollo will invest US$219.4M, representing a 67.5% interest in the
Company. The retained interest held by existing shareholders of XTRA will
represent US$32.5M. It is expected that following the merger and
recapitalization, Interpool (through Atlas) & Apollo will own
approximately 90% of XTRA and the existing shareholders will own the
remaining 10%. Interpool will pay a cash dividend of 3.75 cents per share
for the 2nd quarter of 1998. Interpool is corporate sponsor of The Cargo
Letter library and message board.
- NCBFAA Says "No More" ............. as The
National Customs Brokers and Forwarders Association of America has
reiterated its opposition to raising the merchandise processing fee to help
pay for U.S. Customs automation. "Customs has worked in a vacuum,
presented gross generalities and then asked the private sector to provide a
blank check," said NCBFAA representative Jon Kent in testimony before a
subcommittee of the U.S. Congress. The NCBFAA and other organizations say
Customs automation should be financed from the government's general fund,
not from a special tax on imports.
- Fritz To Advise The Trade ............. as giant Fritz
Companies Inc. has introduced Trade Management Services (TMS), provide
multinational companies with customized advice regarding trade related
issues in the areas of trade, tariff, compliance, & organization, as
well as a research service. These consulting services along with the
resources of Fritz's global office network complement Fritz's core
transportation, distribution and documentation products to provide clients
with a comprehensive integrated logistics solution. TMS is designed to
provide advice & info to clients to minimize duty exposure, adhere to
regulations, assess trade risk, and to properly evaluate market
opportunities so clients can attain their full potential in international
commerce. "TMS has been extremely proactive in bringing innovative duty
reduction proposals to our attention and tenacious in having Customs accept
those reductions," said Kevin Newton, Manager Distribution Operations
at Unisys, Australia. TMS recovered the duty Unisys was paying on power
supplies through reclassification and sought to have all Unisys' cables
classified to a duty-free heading. These audits have totaled approximately
AUD300,000 so far in refunds and are creating ongoing savings for Unisys.
TMS consolidates several departments within Fritz that have provided
advisory & consulting services since 1976.
- Golden Eagle Hits The Road .......... as the U.S. based
forwarders has signed an agency agreement with the Netherlands' largest
airfreight & logistics provider, Road Air Logistics Group. Pres. Patrick
Weston of Golden Eagle Group, says his company is "very excited"
citing "Road Air's state-of- the-art electronic tracking system &
ability to provide value-added logistics handling which should reduce
delivery time & overall transportation costs to our customers. The
agreement was also a key element in completing an inter- linked group of
agents in the region," Weston said. The agreement calls for joint
marketing and the establishment of electronic exchange data to serve
customers between the U.S. and the Benelux.
- Forwarders Going Postal? .............. as the Journal of
Commerce reports that Kuehne & Nagel AG is trying to put its stamp on
post offices. The idea is to convince large postal systems to use the
freight forwarders' global logistics services for Int'l deliveries -- a
potential market estimated at between US$1B and US$2B a year. Jean J. Godart
of the Swiss- based Kuehne & Nagel, is pushing for multinational
forwarders and postal systems to form a new group, "Mail 2000,"
that would examine the potential benefits of cooperation for both sides. He
also suggests a pilot project that would aim to demonstrate that the concept
would be profitable for both sides. Mr. Godart said he got "a positive
response" when he proposed the idea in May to the World Express and
Mail Conference in Washington. Representatives of several national postal
systems -- including Canada, Belgium and Australia --expressed interest in
the concept. And while KLM Royal Dutch Airlines was cool to the idea, Mr.
Godart said the Int'l Air Transport Assn. "is looking into this
issue." Because U.S. laws & regulations limit the adaptability of
the U.S. Postal Service to such transport arrangements, Mr. Godart said
Kuehne & Nagel is focusing most of its efforts on postal systems in
Europe & elsewhere.
- FastShip A Threat To Airfreight Industry? ............ as
ocean cargo ships may have the potential to recapture more than 3/4 of the
trans-Atlantic airfreight market, warned Jean Godart, Ex. V.P. of airfreight
for Kuehne & Nagel, at the Int'l Air Cargo Forum in Paris last month. He
expressed concern that airfrieght operators specializing in the US/Europe
market could go under if fast ships gain a big enough slice of the market.
FastShips are twice as fast as conventional ships and reported to be
targeting the door to door market and highly priced, time sensitive cargo.
U.S. based "FastShip Corp.", has the potential to move the
equivalent of 22 Boeing 747-200 freighters a day if all goes to plan, Mr.
Godart told conference members. He warned that a number of very large
shippers were reported to be interested in fast ship projects, as well as
certain ports in Europe. FastShip will move goods between the US &
Europe in about a week and at a fraction of the cost of standard airfreight,
which takes between 4 & 6 days. The vessels are capable of travelling at
37 knots, can be turned around in less than 6 hours.
- Getting Ryder Ship Shape ........... as it has been one
year since retired U.S. Navy Vice Admiral. Edward. M. Straw left his post as
director of the Defense Logistics Agency to take the helm of Ryder
Integrated Logistics. Straw is candid about what he found to be RIL's
strengths & weaknesses. He is impressed with RIL's operational expertise
& dedicated staff, but found the company had built too many "unique
solutions" for its customers. RIL's operations were structured
geographically, with each office responsible for supplying all services to
customers, but Straw has refocused RIL toward specific industries &
boosted staff training. He has also arranged a new technology solution via
i2 Technologies' supply chain software to complement alliances with Andersen
Consulting & IBM Global Services. There may be something to learn from
"the Navy way".
- Stealth BAX ............. as BAX Global's high security
shipment service, Constant Surveillance Service, has been expanded to
include non- government shippers. The original Constant Surveillance
Service, or CSS, was centered around government shippers requiring
heightened security measures, including trained personnel assigned to
monitor shipments each step of the way and 'lock cages' for shipments in
transit. The new service has now been expanded beyond government service
sectors and is available to all businesses needing security surveillance for
high- value or sensitive shipments. The upgraded service also includes the
creation of its own dedicated group of CSS specialists to handle shipper
needs and queries. The CSS service is designed for shipments that are of a
"high tech" or high-value nature, secretive military parts or for
confidential materials. Only BAX-trained drivers & agents who are
certified as Qualified Surveillance Service Drivers (QSSD) and Qualified
Surveillance Service Representatives (QSSR) can handle BAX's CSS freight.
BAX trains its QSSR personnel in extensive specialized procedures. QSSR's
are also well-acquainted with Department of Defense requirements &
procedures. Upon completion of training, certified drivers & agents
receive a badge identifying them as specially trained CSS personnel. These
personnel are now available to handle all new, non-government-oriented CSS
shipments. CSS is currently offered at all major North America stations.
Meanwhile, Ingram Micro has selected BAX Global as its domestic heavyweight
- India Customs BAX ......... as BAX Global India Ltd., has
strengthened its service capabilities through the acquisition of Overseas
Cargo Services India Pvt. Ltd. (OCS), one of the industry leaders in customs
clearance for India.
- Wilson UTC Gets Multifreight ............ as the
forwarder has purchased Multifreight Int'l , an Amsterdam based Dutch
company. Last year Multifreight, which concentrates on logistics as well as
air freight, had a reported turnover of US$10.5M. Wilson is a subsidiary of
BTL transport group, a Swedish company.
- MSAS Gets Laker ............ as it announces acquisition
of French freight forwarding company Laker Cargo Int'l., which specializes
in air freight and operates from Charles de Gaulle airport in Paris. Its
routes cover the U.S. Southeast Asia & India, with exports accounting
for about 75 percent of its business. MSAS, based in Burlingame, Calif., is
a division of Ocean Group plc., based in the United Kingdom.
- Hellmann Gets More ISO ........ as Hellmann group of
partners' global network have been awarded the ISO 9001/2 certificate.
Approximately 80% of the Hellmann Group's 375 offices in 130 countries are
now certified. The Hellmann partner company in Malaysia, Freight Management,
& the Philippine partner, Orient Freight Int'l, were presented with
their certificates at an Asia- Pacific meeting of the group in Hong Kong.
- Schenker Centers Its Competence ............ as the
forwarding group has set up a centralized unit responsible for providing
detailed bids to potential customers worldwide. Based at the head office in
Essen, Germany, the unit's goals are to cut administrative and
communications costs while providing bids within short response times,
covering global air freight, sea freight & logistics services. Schenker
said that the new unit, described as a "competence center," will
rely on the cooperation of locally based managers responsible for key
customer accounts across various Schenker subsidiaries. These managers will
pass on inquiries about global tenders to the centralized unit in Germany.
The unit will, in turn, will draw upon the entire Schenker organization when
preparing the offer, the company said. Meanwhile, Schenker has signed a
freight outsourcing deal with Mercedes-Benz, as has Panalpina.
- JackyMaeder & Kamino Wed ........... as the two have
entered into a strategic alliance for Int'l freight forwarding. Under the
terms of the new agreement, Hong Kong based JackyMaeder will provide
representation in Hong Kong, China, Taiwan, Thailand & Korea while
Kamino will similarly represent JackyMaeder in the U.S., England, the
Netherlands, India & Romania. JackyMaeder is a subsidiary of the
SAirGroup/Swissair. Kamino expects to be listed on the UK stock market
within the next 2 years.
- DAHER Golden Eagle Flies UK .......... as it announces an
exclusive agency agreement with Ultimex Global Logistics PLC of the UK.
Founded in 1993, Ultimex has more than 55 employees at the LHR HQ and other
offices in Manchester & Birmingham and has been profitable and growing
each year since its founding.
- Windy At The Freight Connection ........ as the
intermodal marketing company (IMC) & transportation broker, has
established itself with the opening of a new sales office in Chicago.
- Cargo Theft Out Of Control .......... as law enforcement
agencies estimate cargo theft losses at anywhere from US$3.5B to US$5B
annually nationwide, but the trucking industry believes it could be more
than twice that amount. ``This problem is way out of control,'' said Gail
Toth, executive director of the Transportation Loss Prevention &
Security Council of the American Trucking Associations in Alexandria, Va.
``Your common cargo thief today is the ex-drug trafficker. They're like,
`Hey, you steal cargo and you are less likely to be prosecuted than if you
are trafficking drugs.''' This translates into higher prices for consumers
at the cash register. As much as US$125 paid for each personal computer is
directly due to cargo theft, said Ms. Toth, whose organization represents
40,000 trucking companies nationwide. The Miami-Dade police TOMCATS
(Tactical Operations Multiagency Cargo Anti- Theft Squad) recovered just
under US$17M in goods and made 130 arrests in 1997 - up from US$10M and 103
arrests a year before. The National Cargo Security Council, which keeps
track of thefts in the industry, estimates that more than US$10B worth of
goods are pilfered annually in the U.S.. The Cargo Theft Deterrence Act, a
bill sponsored by U.S. Sen. Frank Lautenberg, D-N.J., hopes to toughen the
penalty for federal interstate cargo theft, which currently carries a
maximum sentence of a year. .............indeed, truckers are finding it
more dangerous than ever to drive a big rig.
- Don't Mess With Our Freight! ......... as a California
trucker bravely took steps to protect his Los Angeles cargo from hijackers
this month. Fernando Sancho had stopped for a rest period on 8 June when he
was set upon by 3 thugs intending to steal his US$250,000 cargo of seafood.
Having been the victim in several prior thefts, this time Sancho was ready.
He pulled a rifle from the sleeper, confronted the bandits and shot three.
L.A. officials have declined to prosecute Sancho, a current hero in the
local motor truck cargo and import communities.
- UPS Stings Its Naughty Ones - Cargo Safe .......... as 6
New York UPS drivers teamed up with doormen & elevator operators to
steal and resell electronic equipment, clothing and jewelry, federal
authorities say. The drivers were among 14 men arrested, prosecutors and FBI
agents said on 10 June. Each could get up to 10 years in prison if convicted
of conspiracy and theft. Much of the stolen merchandise was sold to an
undercover FBI agent during 67 instances outlined in an indictment returned
in U.S. District Court in Manhattan. U.S. Attorney Mary Jo White said UPS
notified the FBI that it suspected criminal activity. ``We take it
seriously. You're really delivering the hopes, wishes and dreams of
people,'' UPS spokesman Robert Godlewski said. Godlewski said it was the
only large scale stealing episode he could recall of for UPS, which has
300,000 employees across the United States delivering 12 million packages a
- SmartShip Lets You Compare Express Carriers
.............. as Virtran, Inc. has introduced SmartShip, a revolutionary
web-based shipping service that allows users to track the progress of their
packages, as well as compare rates of various over-night courier and express
companies. At the SmartShip web site, visitors can compare prices, find out
the status of previously sent packages, and select a courier service -- all
in a matter of seconds. SmartShip services are offered at no charge to the
site visitor. SmartShip provides courier profiles for FedEx, UPS, Airborne
& U.S. Postal Service. The courier profiles include statistics with
listings and contact information, delivery services, special services and
handling, guidelines for lost or damaged packages and assistance with your
shipment bill. Simply by entering the package's airbill number, the name of
the courier and (for FedEx users) the date of the shipment. SmartShip then
displays the package's tracking information for you. SmartShip delivers the
retail, non discounted rates for shipping packages with a comprehensive
comparison of the prices by breaking them down according to each courier's
guaranteed delivery deadline. Other SmartShip features include a zip code
finder, call-in deadlines currently for California, drop off locations
&delivery schedules of shipping services from the leading couriers.
- Shippers Test New Entry System .......... as U.S. Customs
new "National Customs Automation Prototype" system is being tested
by General Motors, Ford, Levi Strauss, Chrysler & Robert Bosch, with at
Detroit, Port Huron & Laredo. The system involves pre-clearing cargo
electronically. Coming soon to a port of entry near you.
- Informal Entry Limit Up ............... as U.S. Customs
will raise the current limit from US$1,250 to US$2,000, effective 2 July
1998. Certain FDA & textile articles remain exempt from informal entry
- Uganda Changes Customs Regs ........... as it is adopting
World Trade Organization rules on customs valuations in order to increase
air import volumes and reduce tax. The CIF (cost, insurance & freight)
values currently being used as customs valuations in the taxation of imports
were very high, and raised the tax liability accordingly. The country feels
it more equitable to use the Free On Board (FOB) system recommended by the
WTO as it lowers the tax burden, and should therefore raise the volume &
value of imports by air.
- No. 1 Current U.S. Export: Chicago Bulls T-shirts. China
can't get enough of them!
- ITMShip Claims "Forwarder-Ware" ............ as
the software company claims its system is a full-service communications tool
linking shippers to their forwarders via the Internet. With the ITMShip
system, shippers can book & track their shipments and print the
necessary forms from a single website. Forwarder, Adcom Express,
headquartered in Edina, Minn., has begun implementing the ITMShip system in
24 of its branches.
- FedEx-Mart? .............. as it will be offering iCat
Corp.'s recently announced iCat Commerce Online as an entry-level option to
its growing suite of integrated logistics & electronic commerce
solutions. It is a combination of information, technology, & services
designed to provide small and medium- sized businesses with the tools they
need to be successful in electronic commerce. Any business can easily create
a full-featured Web store with up to 10 items with no charges of any kind
for the lifetime of the store. Stores with more than 10 items may also be
created, for a monthly hosting charge. The comprehensive suite of
information & marketing services available through iCat Commerce Online,
combined with the integrated logistics and shipping services offered by
FedEx, allow even novice Web merchants to easily create and manage a
full-service Internet store, including real-time order processing,
fulfillment, and tracking. iCat Commerce Online will include a FedEx Ship
API that will enable merchants to offer FedEx transportation services to
their customers via their iCat storefront. This means that the merchant can
download FedEx shipping & tracking status options onto their store, like
order status, along with the FedEx brand logo.
- UPS & E ............. as the company has launched an
innovative web site to serve as an information clearinghouse for those
exploring ways to transact business over the Internet. The site also
provides information on electronic commerce solutions offered by seven
leading technology companies with which UPS has strategic alliances to
provide a variety of software tools enabling businesses of any size to
develop a web site and transact business over the Web. The site provides
background on E-commerce tools & strategies ranging from simple
entry-level software to advanced solutions that integrate a company's entire
business processes. It showcases electronic commerce solutions provided by
AT&T, Harbinger, IBM, iCat, Lotus, Open Market & Pandesic. The
products incorporate various UPS functions, from tracking and rating to
complete shipment processing, including international documentation
preparation and label printing that are available through integration with
UPS OnLine Professional.
- Canada Smokes The Competition .............. as it has
become a major exporter of cannabis, ``especially indoors,'' Canadian
Solicitor-General Andrew Scott said during a gathering of the U.N. General
Assembly special session on drugs this month. U.S. & Canadian officials
believe marijuana harvesting now ranks as British Columbia's most lucrative
agricultural product, with illegal revenues estimated at anywhere from
US$400M to more than US$3B a year. In the past year, U.S. Customs has nearly
doubled its enforcement effort along the northern border - especially
focusing on Washington state - because of a surge of high-quality marijuana
smuggled in from British Columbia. The Canadian product is so potent that it
can sell for as much as US$6,000 a pound in parts of California , 10 times
the typical price for marijuana from Mexico.
- Smugglers Give Police The Bird ............ as Police
"shot down" a plot to smuggle South African diamonds via a carrier
pigeon, killing the bird as it rested while transporting the uncut gems.
Residents in Alexander Bay, a diamond mining region near the Namibian
border, noticed the pigeon on 17 June when it landed wearing a band of tape
around its chest, police Superintendent Hendrik Swart said. Police shot the
bird and found six packets of uncut diamonds valued at US$11,320. ``The bird
probably landed because of exhaustion, because the smugglers wound the tape
too tight around it,'' Swart said. Carrier pigeons have long been used to
smuggle diamonds. Last year, dozens of people were arrested on suspicion
they used the birds to smuggle hundreds of uncut diamonds from South
- Sorry Danzas! ......... as contrary to our report last
month, this leading Int'l forwarder employs 16,000 people in 50 countries,
not 500 in 16 as stated. Ed.
- El Al Israel Airlines. STILL DOWN with a loss of US$4.2M
for 1997 compared to US$83.1M in 1996. Greatly improved!
- Japan Airlines. DOWN with a net loss of more than US$740M
for the last fiscal year despite a rise in cargo volume.
- Mitsui O.S. K. Line. UP as revenue rose to more than
US$4B, up 6% on the previous fiscal year, while operating income increased
to US$120 million. Net income doubled to US$37M for the year ended March 31.
Poor returns from container shipping were outweighed by good results for the
car-carrying division and good earnings from tanker & liquefied gas
- Neptune Orient Line (NOL) DOWN with a net 1997 loss of
US$187M. The company had posted a profit of US$13M the previous year. Buying
APL cost the Singapore-based liner $825 million, a figure it plans to recoup
with cash flow and from the savings associated with the merging of the two
companies. NOL hopes to save in excess of US$250M per annum by 2000.
- P&O Nedlloyd. DOWN with a US$39M loss for 1st quarter
1998, an improvement of the US$58M loss for same period 1997.
- Panalpina. WAY UP with more than double its operating
profit in 1997 from the previous year to record a total of US$34.7M.
- Singapore Airlines. Up for fiscal '97-'98 with a profit
of more than US$630M, an increase of 3%.
- Zim Container Line. UP with 1st quarter profit of
US$8.7M. Last year, the Israeli carrier lost $3.8M in the 1st quarter, but
said increased income from shipping and related activities of more than
US$350M, up US$22M in the same period last year, had resulted in the current
- Emery Worldwide Is TIACA's No. 1 ............ as the
Int'l Air Cargo Association (TIACA) has named it "Forwarder of the
Year". The company was also recognized as one of the top 10 companies
in 4 categories at the recent Asian Freight Industry Awards. Speaking in
Paris at TIACA's biennial Air Cargo Forum, president Christopher Foyle said
the awards gave the association the opportunity to salute those companies in
the industry which are doing a "truly outstanding" job, especially
in relation to customer service, efficiency & creative problem-solving.
Emery had been chosen as top air forwarder for "successfully managing
the transition from a traditional forwarder to a modern logistics
resource," Mr. Foyle said. At the Asian Freight Industry Awards, which
are voted on by users of freight transport services, Emery won high honors
in the categories of best 1.] multi-modal forwarder, 2.] ocean freight
forwarder, 3.] air freight forwarder and 4.] total logistics operator. Emery
Worldwide provides global air and ocean freight transportation, logistics
management, customs brokerage and expedited services to customers in more
229 countries. It is a subsidiary of CNF Transportation. In there news,
Sequent Computer Systems, Inc. has renewed its 3 year contract with Emery
Worldwide as its preferred No. American air freight carrier for shipments
weighing 100 pounds or more.
- Others Blasted At TIACA's Air Cargo Forum ............ as
Gail Blauer- Jones, V.P. of computer giant Unisys, is reported in the London
press as informing the Paris gathering that the industry is suffering from
lack of long-term planning, seemingly arbitrary industry rate rises &
customer identification problems. Only two thirds of shipments arrive on
time, adding to a culture of nonperformance, Blauer-Jones is reported to
have said. The attack came just as TIACA announced plans to 1.] lobby
governments in order to address issues currently being faced by the
industry, and 2.] form a joint TIACA-Airports Council Int'l committee, which
will initially look at Customs & security issues. According to TIACA,
issues needing to be addressed include intermodal transport, performance
standards, traffic rights, Customs procedures and booking & tracing.
- IATA Kills The Y2K Bug? ......... as the Int'l Air
Transport Association (IATA) has announced airlines will be operating
normally on January 1, 2000 despite the so-called "millennium bug"
or "Y2K" threat to all computer controlled systems in the world.
According to IATA, airlines are spending US$1.6B to ensure their systems are
compliant with the year 2000. Earlier this year, some carriers sounded less
optimistic, with Dutch airline KLM even announcing it would probably not
have a single plane in the air comes midnight on December 31, 1999. Still,
increased spending & increased awareness, including a US$20M IATA
program to monitor year 2000 preparedness has given rise to association
confidence. By mid-1999, IATA says it will make available audit information
on airport & air traffic services readiness so that cafrrier planners
can determine whether there are airports they would like to avoid on January
1, 2000. The FAA also claims to have corrected delays in its year 2000
preparation and expects all critical equipment will have been checked by
October 1998. The FAA had been criticized for being too slow in preparing
for Y2K, despite a US$190M budget just for updating older equipment. Health
Tip: Don't plan to be in an elevator at midnight on 31 December, 1999.
- FAA Not Finished With Forwarders ......... as the agency
reports that compliance is still not nearly where it is supposed to be --
especially when it comes to hazardous material shipments. In two rounds of
tests airlines were seen to have improved dramatically in fine-tuning their
procedures for acceptance of forwarder related shipments. However,
forwarders still were not up to par on the security rules governing
accepting packages from shippers or tendering them to airlines, according to
FAA A 3rd round of spot checks by the FAA is forthcoming. To get ready,
review the FAA Security Regulations at:
- Private El Al Still A Six Day Carrier .......... as the
ban against flying on the Jewish Sabbath will continue to cripple Israel's
national carrier despite privatization plans. In a June 1 statement, the
Israeli government announced that 49% of the carrier would be offered on the
Tel Aviv stock exchange within the next 12 months, while the government
would retain control of 51%, meaning aircraft will continue grounded d on
Saturdays, the Jewish Sabbath. Analysts are reported to have said the
Sabbath ban is a "heavy financial burden". Orthodox cabinet
ministers in Israel's coalition government are reported to be relieved.
- DHL Gets German Postal Pump ........... as a cash
injection has come from the sale of almost a quarter of the company to
Deutsche Post AG. The 22.5% investment in the company by the German postal
carrier will be used by DHL to complete investment plans in Hong Kong's new
Chek Lap Kok airport, as well as other developments in Jakarta, Malaysia
& Australia. The German company will be able to use DHL's global air
express network for its express delivery service.
- Indonesia Carriers Seen Close To Edge............... as
depreciating currency & depressed markets have forced them to take
desperate measures to stay in the air. The scheduled airlines are returning
planes and cutting routes as well as suspending operations and considering
debt moratoriums. "We have to keep the 6 scheduled airlines alive as we
are a big country with a large population,'' Indonesian Air Carriers'
Association (INACA) Secty. Genl. Benny Rungkat said in an interview, adding
that "without the helping hand of government, as a mediator, I think by
the end of July the domestic airlines will all collapse." Flagship
carrier Garuda is taking drastic measures to ensure its survival and will
cut non-core businesses & unprofitable routes, end unprofitable
contracts with 3rd party companies, and ........ cut all links with Suharto
family members. The "Asian Flu" has severely hit Indonesia and
caused a drop in Garuda's load factor from 80% in 1997 to 49% before the May
riots in Indonesia's capital Jakarta. After the riots, load factors dropped
40%, even 30% on some routes. Sempati Air, once Indonesia's largest private
airline, recently halted operations when it's load factor reached an all
time low at 20%.
- Olympic About To Crash? ............ as Greek officials
are reported to have said that if the state carrier's financial situation
does not improve soon, it may have to shut down. In 1994, the European
Commission agreed to a rescue plan for Olympic, but so far it has not been
- BA, SIA & Northwest Eye Faltering Thai Air
.............. as Thailand is to sell a 20% stake in flag carrier Thai
Airways as part of efforts to restructure its economy along lines suggested
by the Int'l Monetary Fund. The deal is worth about US$300M and will reduce
the government's stake in the airline to 71.5% from 93% presently. Under
existing law, Thai Airways is only able to retain its national status if the
government owns at least 70% of the company. British Airways, Singapore
Int'l Air & Northwest Airlines are among the parties said to be
interested in acquiring a stake in Thai.
- Chek Lap Kok Opens Next Month .......... as Hong Kong's
new Chek Lap Kok wonder will commence traffic on July 6. On the night of
July 5-6 some 10,000 vehicles, 70 barges & 30 aircraft will be called
upon to carry vast quantities of equipment from the current Kai Tak airport.
Originally scheduled for April, the schedule was pushed back because of
delays in completing a rail link & air cargo terminal. A gradual move to
the new airport started months ago, but material and equipment that are
essential to both airports, such as fire equipment and police firearms, will
be moved overnight.
- U.S. Legacy To Become New Phils. Air Hub ........... as
Clark Int'l Airport (CIA) will be fully operational by as early as 2002 ,
easing pressure on Manila's Ninoy Aquino Int'l Airport Planners eye CIA as a
hub for traffic to/from the U.S. & Europe by capturing a chunk of the
regional east Asian market, according to a recent statement by the Clark
Int'l Airport Corp. (CIAC). CIA, a former U.S. Air Force Base, is equipped
with the internationally required Instrument Landing Systems and is
currently operating 24 hours a day. The airport has already been endorsed by
the Int'l Civil Aviation Organization, and hopes to attract overseas
Filipino traffic from northern and central Luzon to Japan, Hong Kong &
the Mid East.
- Pilots Have No Pals At PAL ......... as all members of
the striking Airline Pilots Association of the Philippines who had not
returned to work were fired on Sunday, June 7. The pilots were protesting
against a reduction in the length of rest for crew on transpacific flights
and the firing of a one of their union. The strike against Philippines Air
Lines, which started on June 5, is costing the line approx. HK$29M per day,
according to airline officials.
- Strike Crushed Airfreight .......... as losses on Air
France's cargo operations total more than US$160M due to the recent pilot
walk-out. The pilots were taking the action over a cost cutting package that
would have included a drop in their salary, but called off the strike on
June 10 after making an agreement with the government owned carrier that
offers them shares in place of the wage cuts. Air France said it was forced
to reduce the frequency of the long-distance services run by its B-747F
freighters as a result of the strike.
- A Rush To The "French Open" Sky .......... as
UPS & United Airlines have taken advantage of a recent agreement between
the France & and the U.S. to allow more than one U.S. freighter operator
into the French market. Both airlines are now reported to be waiting for the
U.S. Dept. Transportation (DOT) to designate a carrier. UAL has proposed
using a DC10-30F to fly 6 x a week from Chicago to Paris; and is reported to
have said the downturn in Asian markets prompted the move to concentrate
more on Europe and the transatlantic market.
- U.S.- Japan Code Share ........... as Nippon Cargo
Airlines has agreed to cooperate with UPS & Northwest on transpacific
freighter code sharing, according to a report in Aviation Week's Aviation
- Fine Air Goes Public ............ as in response to the
National Transportation Safety Board's final report this month, Barry H.
Fine, CEO of Fine Air Services, Inc., said: "Fine Air Services, its
management & employees deeply regret the accident of August 7, 1997, the
5 lives that were lost and the hurt suffered by their family members. We
also regret the impact the accident had on the businesses and individuals
directly affected in the community. Following the accident, Fine Air worked
closely with the NTSB and the Federal Aviation Administration in a
cooperative effort to determine the cause of the accident. In addition, we
worked with the FAA over a 7 week period to redefine Fine Air's cargo
handling procedures. These new procedures, as they now exist, have helped to
redefine and reshape the industry standards for proper cargo handling. We
have been following these new procedures for seven months and believe they
are extremely beneficial for the entire cargo industry. We are confident
that these procedures will reduce the possibility of a similar incident in
- BA Warns LHR Shippers On Bar Coding ............ as the
carrier is urging its customers to keep old style un-coded cargo at an
absolute minimum. The move is designed to bring total conformity on EDI
requirements at British Airways World Cargo's new center at Heathrow (LHR).
Some have expressed concerns that shippers who have not yet acquired
facilities to meet the bar- code requirements will end up with lost goods.
Although the warning could be seen as a strong incentive to get bar-coding
up & running, it is certain that may of B.A. World Cargo's 3000
customers will not meet the requirements in time. One to watch.
- KLM Playing With Dynamite ......... as KLM Cargo has
guaranteed TNT, the European global express distribution company, space on
its aircraft 5 times a week in a new service level agreement which will
initially apply only on KLM's Amsterdam to Dubai route. Additional routes
were likely to be added over the next few months. TNT has just ordered 14
Airbus A300B4 freighters to replace the 10 B747-200 aircraft currently on
lease. The A300B4 freighters have a payload of 45 tons. It has been reported
that TNT is anticipating growth of between 15 & 20% for the next few
years. TNT expects its Asian distribution business to top US$20M by the turn
of the century.
- TNT Explodes Boxes ............ as the express carrier
recently launched the "Out of the Box" promotion that opens up
unconventional ways to ship packages in the express delivery industry.
Customers can send packages of up to 20 kg or more to 7 Asian cities at a
single flat rate and enjoy as much as 60% savings. Customers can pack the
shipment any way they want without having to squeeze everything into a
standard box. Bryan Chan, general manager, TNT Express Worldwide (HK) Ltd.
said, "Not only does it save time and energy, but it is a perfect fit
because there are no restriction on item size. The "Out of the
Box" promotion has been running in : Singapore, Kuala Lumpur, Jakarta,
Hong Kong, Manila, Taipei & Seoul.
- FedEx Drops China Agent .......... as EAS Int'l
Transportation, which started business in the mid-eighties with only seven
staff and a bicycle, failed to renew its contract with US firm FedEx. EAS
now has 72 branches in China, a fleet of 200 trucks & 12 overseas
offices. The companies had a 3 year agreement, signed in 1995, whereby EAS
provided FedEx with an express pick-up and delivery service to China-based
customers. Insiders quoted in the China Daily said FedEx liked to train
individual local agents with the company's "best practices", and
in turn local agents were able to benefit from the technology and more
advanced practices, but that EAS had not carried out FedEx's practices to
the company's satisfaction. FedEx now has pick-up & delivery services in
97 Chinese cities and representatives in major Chinese cities including
Shanghai, Beijing & Guangzhou. EAS is now reported to have signed an
alliance with Airborne Express.
- Remaining On Target In China ............. as Target
AirFreight Inc. has officially opened headquarters for its China joint
venture in Tangshan, China. Target Int'l Freight Ltd., a joint venture
formed by Target AirFreight in China in October 1997, opened the Tangshan
headquarters in ceremonies attended by heads of the Ministry of Foreign
Trade & the Ministry of Import - Export for Hebei Province. Both
ministries are partners in the joint venture. Target currently has offices
in Beijing & Tianjin and employs 30 people in their China joint venture.
On Dec. 31, 1997, Target received a Class-A license to provide full trade
services including air freight, ocean freight, customs clearing and
warehouse & logistics services. Chris Coppersmith, President of Target
AirFreight, said, "We are proud to have received our Class-A license in
record time and to open this headquarters office.
- Geologistics Goes Caribbean ............ as it has agreed
to acquire Caribbean Air Services (CAS) for US$27M. Serving the Puerto Rican
marketplace, particularly the pharmaceutical and high tech industries, CAS
is a wholly-owned subsidiary of AmerTranz Worldwide Holding Corporation. The
provider of air logistics services between the US, Puerto Rico & the
Dominican Republic generated around US$40M in revenues and about US$3.2M in
operating income for the 9 months ended March 31, 1998. The business unit
will operate as GeoLogistics Air Services, a division of GeoLogistics
Corporation. Stuart Hettleman, CEO of Amertranz, said, "The sale of
Caribbean is another step in our strategy to restructure the Company and to
provide working capital to take advantage of the growth opportunities for
our Target AirFreight subsidiary.
- Store To Door Skyway ................. as Skyway Freight
Systems has kicked off of its home delivery services, designed to help
retailers deliver the ultimate shopping experience directly to the
consumer's home. Skyway's customized home delivery programs provide
"white glove" service options to include scheduled delivery,
in-home placement, set up, installation, quality assurance & removal of
packing materials. Both retailer & customer can track the status of
orders through the Skyway Web site as product moves along the supply chain.
The new NordicTrack Deluxe Delivery program is the 1st program to be
announced under the service, developed jointly with the exercise equipment
retailer to provide a simplified end-to-end delivery solution for customers.
The program is expected to be available nationally later this year.
- American Air "Hires" A New "CargoManager"
.......... as a new air cargo management system will be installed at 7
American Airlines U.S. hubs by August. Produced by Sabre Group, the system
promises improved operational performance & more effective air cargo
movements through the utilization of its real-time tracking capability.
Dallas/Fort Worth, Miami, Los Angeles, Chicago, JFK, San Francisco & San
Juan will have the "CargoManager" system . CargoManager is a
real-time decision support system that provides real-time flight and cargo
alerts, cargo inventory information & resource assignments. The system
is built on the Windows NT platform and uses Orbix to provide a business
solution that is independent of hardware & software platforms. Orbix has
been selected as the primary architecture for the product.
- Pilots Cite Danger Ports ......... as the Int'l
Federation of Air Line Pilots' Associations (IFALPA) has listed 150 airports
with major safety problems and singled out 15, including SFO & HKG ,
that they believe are "critically deficient," according to the
London Sunday Times. The newspaper said it received a leaked copy of a
report compiled at an April meeting of the associations in Montreal
(Canada). Others on the "critical list" were Nice (France),
Wellington (New Zealand), Fornebu, Oslo (Norway), Suva, Fiji; Buenos Aires
(Argentina), Leticia, Rio Negro & San Andres in Colombia; Maiquetia in
Venezuela, Nauru, Lagos & Port Harcourt in Nigeria & Kabul in
Afghanistan. San Francisco's "deficiency" is the use of 2 parallel
runways, where pilots often rely largely on visual contact. "It's been
known for pilots to start aiming at the wrong runway and drift across in
front of the other plane," according to the IFALPA report, known as
Annex 19. However, SFO has "never had an accident involving the death
of a commercial passenger" since the airport opened in 1926. In Hong
Kong (HKG) , pilots complain about a taxi way running parallel to the
runway, a dangerous situation in crosswinds.
- Good Bye MD-11 .......... as Boeing Commercial Airplane
Group (BCAG) has determined that there is not sufficient market demand to
warrant continued production beyond the current order base. Consequently,
MD-11 production will be phased out with the delivery of orders now on hand,
with the last delivery scheduled for February 2000. Meanwhile, the new the
757-300 rolled out this week. It has nearly 50 % more cargo volume than the
- New African Forwarder ........ as Antrak Freight has been
formed to offer services in/out of west Africa. LHR & the West African
cities of Accra, Lagos and Port Harcourt will be served by the operation.
The company is a subsidiary of OT Africa Line.
- Volumes ......... as for 1st quarter 1998, Viet Nam
Airlines reported it carried more than 14,000 tons of cargo, down 10%. Cargo
ton miles (CTMs) systemwide for Northwest were down 14.9% in April from
1997's 186.4 million CTMs to 158.6 CTMs. Total cargo ton miles in May for
United were 238,956,000, up 0.4% from 238,067,000 a year ago.
- Vote On Shipping Act Expected .............. as the U.S.
House of Representatives is expected to vote this week on a Senate-passed
bill to revise the Shipping Act of 1984. House maritime leaders have asked
that the bill be sent to the House floor as soon as possible. Proponents of
the legislation are asking that the bill be voted on without the possibility
of House amendments that would require it to be sent back to the Senate.
Among other provisions, the bill would allow key terms of shipper-carrier
service contracts to be kept private. In a letter to a House member
Transportation Secretary Rodney Slater recommended "improvements"
be added before the bill is sent to President Clinton. The administration
wants the essential terms of conferences' service contracts to remain
public, but supports confidential contracts for individual carriers.
"If conferences are to retain antitrust immunity, then their
concertedly set rates -- both those in tariff and those in service contracts
-- should continue to be published," Slater wrote. The bill would have
to be sent back to committee for any changes prior to a vote. The
administration also believes conferences should be barred from adopting
voluntary guidelines that would apply to member carriers' independent
actions on service contracts. Such "open-minded authority could be used
to establish guidelines aimed at deterring individual lines from actually
using independent action," Slater said. Slater also sought the
elimination of undercharge penalties for non-conference carriers who charge
less than their published rates and for individual conference carriers who
charge less than published conference. The only substantial opposition is
from shipper associations, forwarders & NVOCCs.
- APL & Sea-Land Pounded ............ as Guam gets a
US$23M refund. The Federal Maritime Commission ruled that Sea-Land Service
Inc. and American President Lines Ltd. blatantly overcharged shippers on the
West Coast-Guam route from 1988 to 1990. The ocean carriers earned up to 3
times more on the route than allowed by federal rules. As a result, Guam
residents and U.S. soldiers on the island paid higher prices for food,
clothing, appliances, furniture and cars. Virtually everything used on the
island 3,700 miles southwest of Hawaii is shipped in. The ruling said the
companies must repay only a fraction of the extra earnings to the government
of Guam and four private shippers because they were the only ones named in
the original 1989 complaint. The U.S. territory will ask a federal appeals
court in Washington to order a full refund to all 146,000 Guamanians, much
like a class action lawsuit. Guam also is considering whether to file a
complaint for the years after 1990. Sea-Land overcharged Guam by nearly
US$6.3M in 1988 &1989, the FMC said. APL, of Oakland, Calif.,
overcharged Guam by more than US$16.7M in 1988-90, the FMC said. APL said
many of the issues in the case are moot since APL pulled out of the Guam
trade 2 years ago. APL lawyers are said reviewing the 132 page decision
before deciding whether to appeal.
- FMC Plays "The Freight Detective" ...........
as the Federal Maritime Commission is investigating what it says are
possible violations of the 1984 Shipping Act by 10 transpacific carriers and
has ordered members of the Asian Shipowners Forum to supply information
& documents by July 28 about meetings the carriers had last March in
Hong Kong and last year in Taipei. The Asian Shipowners Forum is an
organization of shipowners from various nations whose members meet to
discuss trade issues, including possible ways to stabilize rates in the
Asia/U.S. trades. FMC says it is concerned that the forum's stabilization
committee "may be serving as an unmonitored forum for discussions and
agreements among ocean carriers, and carrier groups, concerning collective
pricing and/ or collective capacity management." FMC wants to determine
whether the forum should have to obtain commission permission to continue
its discussions. Forum members are APL, COSCO, Evergreen, Hanjin, Hyundai,
"K" Line, Mitsui O.S.K. Lines, OOCL, NYK &Yangming.
- They Do It With Mirrors ............ as the Clinton
Administration reportedly is considering a new tax, based on ship size, to
pay for dredging port channels. The suggested vessel tax would replace the
Harbor Maintenance Tax, which the Supreme Court declared to be an
unconstitutional tax on exports earlier this year. The administration plans
to send a funding proposal to Congress before the July 4 recess to permit
its consideration in the 1998 Water Resources Development Act. You really
didn't think the harbor tax would simply go away, did you?
- Sea-Land & Maersk May Alter East Coast ........... as
they are reported considering establishing a single "megaport" to
serve the northeast U.S. They are said to have asked the Port of New York
& New Jersey as well as six competitors - Baltimore; Philadelphia;
Boston; Halifax; Nova Scotia; Norfolk, Vermont; and Quonset Point, Rhode
Island - for proposals to build the project. The Port of Boston has
declined, while Bayonne, & the Strait of Canso port in Nova Scotia have
asked to be included. Industry insiders consider Quonset Point, near
Providence, Rhode Island, may be the best potential site as it offers
railway access as well as a deep draft. The Port of New York only
accommodates a maximum draft of 40 feet, although a planned dredging project
is expected to increase that figure to 45 feet within the next 5 years. Sea-
Land's 25-year lease with the Port of New York is due to expire in February
1999. Meanwhile Port of New York has expressed a desire to raise rates
charged to carriers. At the Port of New York, Sea-Land & Maersk employ
nearly 600 longshoremen and handle more than 400,000 of the 1.4M FEUs that
pass through greater New York each year.
- K-Line Sees The Problem .......... as lowered Asian -
U.S. freight rates and a significant decrease in westbound cargo. These two
factors are blamed for K-Lines' poor 1997 financial result. In turn, K-Line
said the Asian currency turmoil, combined with competitors constantly
putting new container ships into service, led to the decline in rates for
westbound cargo. The Japanese carrier said it tried to counteract the
problems within Asia by introducing a direct Indonesian call as well as
rearranging the Japan-West Australia service route as well as the
Japan-Bangkok service. K-Line's Europe service, particularly the westbound
route, continues to perform strongly as ocean freight rates to Europe have
actually increased, after a long period of stagnation.
- Grand Alliance To Join "Battle Of Ningbo"
........ as Compagnie Maritime d'Affretement (CMA) may soon be joined by a
2nd carrier in calls to this Chinese port. Expect rates to slide further as
a result. Ningbo's yearly throughput is only about 250,000 TEU, and this
weak cargo base has been the main reason discouraging new carriers from
calling there. The French carrier has offered a weekly service for the past
18 months. The Grand Alliance is reportedly currently considering their 3
European services will feature the Ningbo call. Ningbo's throughput is only
about 10% of Shanghai's.
- Rates Up For FEFC ............ as The Far Eastern Freight
Conference has announced it will be implementing a rise for all ex-Asia
& Japan cargo of at least US$150 per TEU, starting in Oct. FEFC has
already planned a US$150/300 per TEU/FEU for ex-Asia moves (excluding Japan)
bound for Europe to implemented on July 1, and thus the combined rise will
be an increase of approximately one-quarter of the published rate. In turn,
MSC HK has announced a general rate increase applicable to all cargo loaded
ex-Hong Kong & Chiwan, from July 1, 1998 and as a result quotations made
previously will be superseded.
- 3 Step WTSA Reefer Boost ......... as three-stage rate
increase for all refrigerated shipments to Asia has been announced by the
Westbound Transpacific Stabilization Agreement (WTSA). Between July 1998
& Jan. 1999, the phased, total increase will be US$550 per refrigerated
FEU. WTSA members are: APL, COSCO, Evergreen, Hanjin, Hapag-Lloyd, Hyundai,
K Line, Maersk, Mitsui OSK, NYK Line, OOCL, P&O Nedlloyd & Sea-Land.
- No Deposit - No Return .......... as NVOCCs &
shippers have been asked by carriers to contribute to the increasing costs
of moving empty containers from areas of oversupply to ports experiencing
equipment shortages. Trade imbalances, particularly between Asia &
Europe, have caused severe problems with empty containers taking up valuable
storage space in Europe, and shippers exporting through regional Asian ports
scrambling to find empty containers. Now, Asian-based shippers, particularly
those based at feeder ports, have been asked by carriers to pay a premium to
cover the extra costs of re positioning empty containers. The move follows
the FEFC rate increases (above). Exports from Asia have experienced a burst
in growth since last year when many of the region's currencies crashed
against the U.S. dollar. According to William Flynn, Sea-Land's central
Asian V.P. "In previous years, of the 10 containers we shipped from
Asia to North America, only 6 or 7 came back. This year, the number will
probably drop to five".
- NVOCCs Get Rate Break .......... as the Transatlantic
Conference Agreement (Taca) has offered non-vessel operating common carriers
a discount of US$300 per TEU for every consolidator who adds 4,000 TEU to
their total cargo commitment. However, Taca chairman, Olav Rakkenes, told
Lloyds List the rational for lowering the rates was fundamentally flawed as
the market is currently in very good condition. Carriers who have recently
entered the north Atlantic trade along with competitive market conditions
have been blamed for pushing the rates down.
- Our Dad Gets A Terminal ........... as the Port of
Oakland has renamed its 7th Street terminal the "Ben Nutter
Terminal" in recognition of the Ex. Dir. who transformed the port into
a world class competitor. Ben Nutter, executive director of the Port from
1962 to 1977, is recognized in the maritime industry as 'the father of
containerization'. His accomplishments are legendary. Containerization has
been described as having the same impact on the maritime industry as jet
engines have had on the commercial aviation industry. Under Nutter's
direction in the 1960's, Oakland became the 2nd largest port in the world in
container tonnage & 2nd only to New York in container terminal acreage.
In the fall of 1962, the S.S. Elizabethport, operated by Sea-Land &
carrying 475 - 35-foot highway trailers that "detached from their
chassis to become giant shipping boxes" arrived at the port and
........ a new era began. In return for an easement to route BART under the
San Francisco Bay, the Port diked some 140 acres & filled the enclosure
with rock & gravel from the excavation through downtown Oakland. The
Seventh Street Terminal, a 12-berth complex, was created from the process.
[NOTE: In the U.S., Long Beach is now #1 and Los Angeles #2 in ctnr
- St. John Back In The Container Biz ......... as after years of being
eclipsed by Halifax & East Coast U.S. ports in the container trade, the
Port of Saint John, New Brunswick, is teaming up with 3 railways in a bid to
get back into the business. The St. Lawrence & Hudson Railway, the New
Brunswick Southern & the Canadian American Railway, will introduce a new
container service into Toronto, Chicago, Newark, N.J., & Philadelphia in
direct competition with the intermodal services from Halifax & New
York-New Jersey. Saint John lost most of its container traffic in the 1980s
because of poor rail service to the U.S. Midwest & central Canada, plus
a perception that its location on the Bay of Fundy was a handicap. Watch
events at the Ports of Halifax & St. John on LIVE! cameras at
- A Yellow NVO ............. as Yellow Corp. (Nasdaq:
YELL), the U.S. trucking company has formed YCS International, a Non-Vessel
Operating Common Carrier (NVOCC) The new subsidiary enables Yellow to create
international relationships with multiple partners, including freight
- Fast Times & Fun At Port Of Miami ............. as 3
port executives have been indicted for stealing US$1.3M in port funds and
using the money on Super Bowl tickets, lingerie, bar tabs and to donate
$120,000 to the Democratic National Committee in 1994. WOW! Since 1990, the
three ``have used the Port of Miami as a personal bank,'' said U.S. Attorney
Thomas Scott. Calvin Grigsby, owner of the company that ran the port's
container cargo cranes, & former port director Carmen Lunetta were
charged with conspiracy, embezzlement & money laundering. Port
contractor Neal Harrington was charged with embezzlement & theft.
Grigsby resigned from the San Francisco based bond underwriting firm of
Grigsby Brandford & Co. in 1996 after becoming a target of federal
investigators. He is awaiting trial on charges of arranging US$350,000 in
kickbacks to two Dade County executives for bond business. Lunetta was
forced to resign as port director last year after a judge ruled that
Grigsby's cargo company had to open its books to public scrutiny. The port,
owned by Miami-Dade County and the 8th busiest cargo port in the country,
lost a total of US$22M in 5 years while Lunetta controlled the purse
strings. How could the money have been lost?
- Did "El Nino" Cause The Gulf War? Cancer?
........ as there very few of life's problems which are not blamed on this
weather phenomenon caused by unusually widespread heating of the waters off
the west coast of South America. This time, El Nino is blamed for halting
traffic along the Songha river in northeast China. The water level started
falling early last month, and by 25 May had fallen by about 5 feet,
preventing virtually all cargo ships from leaving harbor. Reports in the
Chinese press say that over 200 cargo ships are idle in harbors along the
river. Experts believe this El Nino, the most powerful this century, should
start to abate within the next few months. Meanwhile, higher than usual
April rain levels have eased draft restrictions in the Panama Canal. Draft
limits were raised from 37 feet to 37.5 feet in early June, 39.5 feet being
normal The drought that caused the drop in the water level supplying the
canal's locks was caused by the El Nino and reduced draft limits to 35.5
feet at the worst point. But wait! There's more! Experts now see the
possible onset of "La Nina", an opposite phenomenon whereby the
waters of western South America are overly cold. The condition often follows
a severe "El Nino". For a view of how bad it was in the Panama
Canal this year, see The Cargo Letter  (Forwarder
- Yang Ming Adds Capacity .......... as Taiwan's #2
shipping company is to start a comprehensive newbuilding program within the
year. Currently Yang Ming has 28 owned ships & 13 chartered vessels in
operation and now plans to order up to 10 new feeder ships with capacities
of between 1,100 and 1,500 TEU.
- Meet M/V Sine Maersk .......... as the 10th in a series
of mega- container vessels joins Maersk Line fleet this month. The 6,600 TEU
vessel is among the largest in the world, with a length of 1041 feet, a beam
of 129 feet and a height from keel to deck of 72 feet. Maersk predicts the
vessel will cover a distance of 170,000 nautical miles a year, equal to 7.5
times around the globe, making about 100 port calls yearly. M/V Sine Maersk
will be operated by a crew of 15 and will sail between Europe and the Far
East. Maersk currently has more than 120 container vessels with a total
capacity of more than 270,000 TEU.
- New LBG Port Choo Choo ........... as the Long Beach
Board of Harbor Commissioners have approved a 10 year agreement with Pacific
Harbor Line to manage the port's railroad operations. Pacific Harbor will
provide 3rd-party dispatching of trains for the port's 2 major railroads,
Union Pacific &Burlington Northern and Santa Fe Railway. The company
will also maintain the port-owned tracks. Southern Pacific, which was
acquired 2 years ago by Union Pacific, provided service on the port-owned
tracks for more than 60 years.
- RMS Queen Mary Chased By Russian Sub ............ as a
cold war era Foxtrot Class former Russian submarine will now by permanently
moored astern of "The Queen" in Long Beach Harbor as a tourist
attraction. This feature comes just as the ribbons are cut for the opening
of Long Beach's "Aquarium of the Pacific", perhaps the greatest
under sea exhibit in the history of the world. All at LBG miss the U.S. Navy
and welcome all the new programs which will bring the public to learn more
of our port and the important work we do for the world.
- Calypso Sunk - Saved ................ as the vessel that
carried Capt. Jacques Cousteau and his crew on expeditions around the world,
was loaded onto a barge in Marseille, France, on 28 May and taken to La
Rochelle, France, where it will become a museum. M/V Calypso sank at
Singapore in January 1996 and is being donated to the La Rochelle Maritime
Museum as part of a US$830,000 project. The 137-foot vessel was built in
Seattle in 1942 as a U.S. Navy minesweeper and was later transferred to the
United Kingdom, which sent it to Malta as the "Calypso". Cousteau
acquired it in 1954. He was overseeing construction of a replacement when he
died 25 June at age 87.
- RMS Titantic "The Corporation".: NO Trespassing
............... as U.S. Judge J. Calvitt Clarke Jr. issued an injunction on
23 June, in Norfolk, Va., barring anyone from coming within 19 kilometers/12
miles of the Titanic or taking images of it without permission of RMS
Titanic Inc. RMS Titanic Inc. has held salvage rights to the ship since
1994. The passenger ship sank 15 April, 1912, killing more than 1,500
people. Deep Ocean Expeditions Ltd. planned to take people more than 3,660
meters/12,000 feet beneath the northern Atlantic Ocean to the Titanic for
U.S.$32,500 per person starting 2 Aug. Accordingly, on 4 May, RMS Titanic
requested an injunction.
- Volumes .......... as P & O Nedlloyd saw an increase
in total volume from 541,500 TEU in 1st quarter 1997 to 546,900 TEU this
year, but the overall rise was offset by average revenue per TEU over all
trades dropping from US$1,509 in the 1st quarter of 1997 to US$1,417 this
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
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
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
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.
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.
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.
IATA Cargo Information Center
TransAct Document Library ......... of the Transportation
Action Network, sponsored by various U.S. government agencies.
FreightNet ......... world-wide index of freight forwarders. Registration is
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:
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.
....... 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
CargoLog ......... transport directory. Rate quoting.
Collapsible Dry Freight Container
Romeu Spanish Ship Agents & Forwarders
- Transport Related Cases From Countryman & McDaniel
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.
On a typical day our United States Customs Service examines:
- 1.2 Million Int'l Passengers
- Over 320,000 Vehicles
- Over 27,000 Trucks & Ocean Containers
- 2,200 Aircraft
- 635 Int'l Ocean Vessels
On a Typical Day our U.S. Customs Service Effects:
- 56 Arrests
- 72 Narcotics Seizures
- 10 Currency Seizures
On a Typical Day There Are 112 Other Enforcement Seizures of:
- Conveyances (vehicles, boats, etc.)
- Commercial Merchandise
- Real Estate
- Child Pornography
On a Typical Day our U.S. Customs Service Seizes:
- 2,700 Pounds of Narcotics
- US$650,000 in U.S. Currency
- US$332,000 in Conveyances (vehicles, boats, etc.)
- US$20,000 in Arms & Ammunition
- $3.2 Million in Commercial Merchandise
SOURCE: United States Customs Service
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
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