The Cargo Letter

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THE CARGO LETTER [332]
Air & Ocean Freight Forwarder - Customs Broker News
14 September 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''.

EDITORS NOTE: Loyal readers of The Cargo Letter know their regular issue will arrive near the end of each calendar month, in two sections containing about 45 pages of the latest news, law & practical tips for our industry. Your August issue did not arrive on time due to our preparation for the 1998 FIATA Congress at Sydney and an increased travel schedule to meet court demands. The edition you receive now is both late and very short of our usual extensive content. We apologize for any inconvenience resulting from our delay. This month we will attempt to deliver The Cargo Letter to you on an individual basis, without other addresses on your delivery list.

Contribute your knowledge, stories & company information ........ by e- mail to The Cargo Letter. We strive to bring you useful information which is timely & topical. Be sure to visit our web site .......... http://cargolaw.com To post comments or discuss articles, go to ....... http://www.interpool.com/tcl/disc1_frm.htm

Michael S. McDaniel, Editor & Publisher, Countryman & McDaniel, forwarder/broker attorneys at LAX.

INDEX to The Cargo Letter:

OUR "A" Section: Trade, Financial & Inland News
   1. FIATA Congress Opens At Sydney
      * City On The Harbor
      * Focus On Forwarder Technology
   2. IPX/TCL Newsstand & Online Journals Debut
      * Important New Forwarder-Broker Service
   3. Freight Forwarder Trade Briefs
   4. The Cargo Letter Financial Page
OUR "B" Section: FF World Air News
   5. Freight Forwarder World Air Briefs
OUR "C" Section:  FF World Ocean News
   6. FF World Ocean Briefs
   7. The Cargo Letter Cargo Damage Dispatches
OUR "D" Section: FF in Cyberspace
   8. The Cargo Letter "Cyber Ports Of Call"
OUR "E" Section: The Forwarder/Broker World
   9. Reporting Marine Cargo Claims On Line
      * ICAR Moves Industry Forward
  10. Further Changes To Customs Reconciliation Prototype
  11. Are Your Really Ready For Y2K? 
      * A Simple Test
  12. No Nukes Causes No Docs - A Forwarder Tale

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


1. FIATA Congress Opens At Sydney

14 Sept - LAX -- Freight forwarders from 97 countries and territories will gather next Sunday for opening ceremonies of the 1998 FIATA World Congress at Sydney Australia. A wide variety of working sessions for the four day conference will be conducted under the theme "The Forwarder - Logistics Solutions Through Technologies".

Staged at historic Darling Harbor, hosting this year's world forwarding event is the Australian Federation of International Forwarders, a group resulting from recent merger of the air & ocean groups: Australian Federation of Airfreight Forwarders & Int'l Forwarders Association of Australia. With the approach of Year 2000 and the first Olympic Games of the new century at Sydney, Australian forwarders & brokers intend to showcase their pioneer work in the field of electronic commerce for our industry. A central feature of the Congress will be special systems for electronic messaging to enable maximum flexibility in the arranging of ad hoc meetings and instant delegate communications. The hosting forwarders hope to streamline the way people network at conventions, thus promoting a more intense and valuable convention experience.

Intercargo Insurance Company is sponsor of the ground breaking electronic message system which is at the heart of the 1998 Congress. Intercargo is a leading provider of insurance protections to the Int'l transportation community. Other Congress sponsors include AEI, AT&T, FedEx, ANZDL, TT Club, Wilson UTC, QUANTIS, BA World Cargo, Conterm, Australian Quarantine & Inspection Service, Sydney Airport, Sydney Ports and the Australian Customs Service.

Intercargo has also arranged for freight forwarder presentations from the United States perspective at this year's Congress. Mr. Alan Spear, noted cargo loss prevention expert & chief of Intercargo's renown "OPERATION INTERCEPT", will address the critical issue of "Cargo Crime And How To Prevent It". LAX forwarder/broker attorney Michael S. McDaniel, Esq. will report to the 1998 Congress on changing liability issues in the United States, including expected passage of the Carriage of Goods By Sea Act of 1998 (COGSA 1998) by the U.S. Congress.

Full details of the 1998 FIATA Congress will be posted at The Cargo Letter web site next month. The feature will provide you with highlights of the Congress, links to related sites and the full text of important freight forwarder materials such as an analysis of YOUR forwarder liabilities BEFORE and AFTER COGSA 1998. Be sure to visit http://www.cargolaw.com next month.

2. IPX/TCL Newsstand & Online Journals Debut

LAX - 8 Sept. - Interpool Corp. and The Cargo Letter have announced a new information service which will allow improved access to industry news breaking around the world. The new Internet service welcomes visitors to browse the features of 10 leading Int'l economic & transport publications with a single mouse click from the Library & Search Engine page of The Cargo Letter. Service designer Ed Graham of Interpool Corp. said, "With vital resources spread all around the world wide web, we wanted to create a single location where the important news could be found without expensive subscriptions and procedures". The IPX/TCL Online Journals service plans expansion shortly with addition of many more relevant publications. Under "Information &Resources", the address is: http://www.interpool.com/tcl/

IPX / TCL Online Journals currently include the following publications:

3. Freight Forwarder Trade Briefs

4. The Cargo Letter Financial Page


OUR "B" Section: FF World Air News


5. Freight Forwarder World Air Briefs

Our condolences for the loss of Swissair Flight 111, an MD-11 with 215 passengers & 14 crew, en route from JFK to Geneva and Zurich.


OUR "C" Section: FF World Ocean News


6. Freight Forwarder World Ocean Briefs

7. The Cargo Letter Cargo Damage Dispatches

Due to scheduling difficulties for our valued Correspondent Steve Schultz, this important feature of The Cargo Letter is on an hiatus. For those of our readers who look forward to this vital shipping information each month, we promise a speedy return. McD

However, our usual warning for this feature will remain, because it is very dangerous out there ................

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


8. 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 ...............

Project Bolero .......... E-commerce for our industry, being developed in cooperation with the TT Club.
http://www.boleroproject.com

The Freight Detective's Air Cargo Central ............. everything about air cargo. This feature will continue to expand its range of services.
http://www.cargolaw.com/d2.airports.html

The Freight Detective's U.S. Customs Resource Center ........ everything is here from Regs to Ruling Letters.
http://www.cargolaw.com/d2.customs.html

The Freight Detective's Transportation Reference Desk .......... researching your transport information.
http://www.cargolaw.com/d2.referencedesk.html

The Freight Detective's Translator Service ......... quick and free translations of your documents in the leading languages.
http://www.cargolaw.com/d.translator.html

Details Of New Hong Kong Airport
http://www.hkairport.com/about.htm

Hanjin Ship Tracker ............ a next step forward. Follow the Hanjin vessels as they cross world ocean. In violation of natural laws, however, available only to PC users. Sorry, not yet for MAC.
http://hjsweb.hanjin.com/

The Air Cargo Newsgroup ...... continuing discussion of matters relating to the airlines.
http://www.mta-ic.com

Trade 2000 ........ Flagship Customs Brokers has opened a unique site with customs EDI.
http://www.trade-2000.com
Air Transport World
http://www.atwonline.com/

E-Tracker ......... the air freight tacking solution from our own Michal Douglas at Imagination Inc.
http://www.imaginationinc.com

CARGOTRACKER.COM
http://www.cargotracker.co.uk/

Rotterdam Port Promotion Council. New!
http://www.rppc.nl

Celadon Truck Track .............. Internet tracking to retrieve shipment information. All Celadon trucks are satellite equipped allowing for real time tracking capabilities. Customers will be able to trace freight by a variety of search criteria or utilize an extensive search engine. The Company has approximately 2,100 tractors and 6,100 trailers in the U.S./Canada/Mexico trade.
http://www.celadontrucking.com

Sky Service General Aviation
http://www.fly.to/sky-service.com

Sea Songs ......... how's your singing voice?
http://www.ucs.mun.ca/~andrew/shanty/

Naked Customs Brokers ........ as hundreds of Int'l Customs Brokers from around the world posed nude for this unusual special project. Most, but not all of the photos are in good taste. You will never look at brokers the same way again! NOTE: This site may not be appropriate for younger readers, but has been published here due to it's relationship with our industry.
http://www.silva.co.nz./naked.htm


OUR "E" Section: The Forwarder/Broker World


9. Reporting Marine Cargo Claims On Line

Intercargo Corporation (NASDAQ: ICAR), a leading provider of specialized insurance coverages for companies involved with Int'l trade, has launched its website with features that include the reporting of marine insurance claims on-line. Additionally, a worldwide listing of Intercargo's approved marine surveyors is available to users. These service enhancements allow customers immediate access to Intercargo in order to process their marine claims.

Product information & an on-line application for Intercargo's newest product "CONNECT" is also available on the website. CONNECT is a broad insurance package policy developed exclusively to meet needs of American exporters with business operations outside of the U.S. CONNECT was 1st introduced on June 1, 1998 at the American Assn of Exporters & Importers (AAEI) conference in New York City.

Intercargo's website was developed to provide financial & product info, as well as on-line business applications for insureds, agents, shareholders &other interested parties.

Future development will include direct links to services of The Cargo Letter and encrypted pages for agents & insureds to receive real-time account information & a locator map of agents throughout the world. Intercargo has operations in Los Angeles, New York, Tampa, Hong Kong & the U.K http://www.intercargo.com

10. Further Changes To Customs Reconciliation Prototype

-- from David F. Jordan, CHB & Customs Consultant

On 18 Aug. 1998, U.S. Customs published a general notice announcing several changes to the Reconciliation Prototype that is to commence on 1 Oct. 1998. 12 categories of changes were included. The second category, "Bond Issues," is included below in its entirety.

"B. Bond Issues

1. Bond Rider

The specific language in the bond rider has been changed to more adequately address coverage for Aggregate Reconciliations. The rider must be filed with the bond prior to any entry summaries being flagged for reconciliation. Because the new bond rider is different, applicants who already have provided the earlier bond rider must provide the new bond rider prior to flagging entries for reconciliation. The rider shall read as follows:

By this rider to the Customs Form 301 No. __________, executed on __________, by __________ as principal(s), importer no(s). __________, and __________, as surety, code no. __________, which is effective on __________, the principal(s) and surety agree that this bond covers all Reconciliations pursuant to 19 U.S.C. 1484(b) that are elected on any entries secured by this bond, and that all conditions set out in Section 113.62, Customs Regulations, are applicable thereto. The principal(s) and surety also agree that, when an Aggregate Reconciliation under this rider lists entries occurring in more than one bond period, any liabilities to Customs reflected in that Aggregate Reconciliation shall be attributable (up to the full available bond amount) to any or all of those bond periods.

2. Termination of Bond Rider

Termination of the Reconciliation Bond Rider by either the principal or the surety may be affected in accordance with procedures set forth in Sec. 113.27, Customs Regulations. Termination of the Reconciliation Bond Rider will not serve to terminate the underlying bond. Moreover, it should be noted that Customs will not terminate bonds or riders filed pursuant to this prototype.

3. Bond Coverage to be Evaluated

In addition to the test evaluation criteria listed in the February 6, 1998 notice, adequacy of bond coverage for participating importers will also be evaluated for this prototype. David F. Jordan Consulting Services, Inc. (310) 375-1180

11. Are Your Really Ready For Y2K?

Here's the easiest way to 'test' your own PC for Y2K compliance:

  1. Make a boot disk, also known as an "emergency disk, to enable restarting your system if bad things happen
  2. Reset your PC clock to 31 December, 1999
  3. Turn off the computer for 1 minute.

When you restart the computer, check all programs to see if they incorporated the millennium changeover. If not, reboot the computer using the boot disk you created, reset the clock to the correct time, go have a drink, and then throttle your network administrator. Good luck!

12. No Nukes Causes No Docs - A Forwarder Tale

-- contributed by reader Bill Staib

"TWENTY YEARS AGO WHEN I WAS EMPLOYED BY A NAMELESS FORWARDER IN NYC, WE HIRED A CLEAN CUT, QUIET YOUNG MAN TO BE THE COMPANY MESSENGER. WE HAD BEEN WITHOUT A DEDICATED MESSENGER FOR SOME TIME AND NEEDED ONE QUICKLY. IT WAS REASONED THAT IT SHOULD NOT BE TOO DIFFICULT TO FIND ONE ON SHORT NOTICE. AFTER ALL, BEING A MESSENGER WAS NOT ROCKET SCIENCE.

TO MAKE A LONG STORY SHORT, OUR NEW MESSENGER WHO I WILL REFER TO AS TIM, WOULD COME TO THE OFFICE AT 9 AM AND 1 PM TO RETRIEVE ALL OF THE OUTGOING DOCUMENTS AND DELIVER THOSE INCOMING ONES. THE OUTGOING DOCUMENTS CONSISTED ON B/L'X TO BE DROPPED AT VARIOUS LINES AS WELL AS L/C DOCUMENTS TO BE DELIVERED TO LOCAL BANKS.

ONE DAY, WE RECEIVED A PHONE CALL FROM THE LOCAL POLICE PRECINCT THAT THEY HAD TIM IN CUSTODY. IT SEEMS THAT WHILE HE WAS MAKING DELIVERIES, A "NO NUKES" PROTEST WAS GOING ON IN THE STREET. HE STOPPED TO WATCH. MOUNTED POLICE WERE PRESENT TO KEEP THE PROTEST IN ORDER. WHILE TIM WAS WATCHING, AN OFFICER PASSED BY AND HIS HORSE STEPPED ON TIM'S FOOT, SO WE SWATTED THE HORSE IN THE BACKSIDE WITH HIS BRIEFCASE. THE OFFICER IMMEDIATELY ARRESTED HIM AND IMPOUNDED ALL OF OUR DOCUMENTS, INCLUDING NEGOTIATION DOCUMENTS. WE HAD TO APPEAR IN COURT TO RETRIEVE THEM.

THE MORAL IS ... ERRORS AND OMISSIONS INSURANCE DOESN'T COVER EVERYTHING. NO, JUST KIDDING! BE CAREFUL WHEN HIRING ANY EMPLOYEES. MAKE SURE THEY ARE RESPONSIBLE PEOPLE AND NEVER STOP TRAINING THEM BECAUSE OUR FUTURE SURVIVAL WILL DEPEND ON THE QUALITY OF OUR PEOPLE. "

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