The Cargo Letter
THE CARGO LETTER 
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
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
- City On The Harbor
- Focus On Forwarder Technology
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
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
- Important New Forwarder-Broker Service
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:
- Asian Business
- Asia Pacific Economic Review
- Atlanta International Magazine
- Indonesia Net Exchange
- The Journal of Commerce
- Kiplinger Online
- MSNBC News
- Russian Business & Trade Connections
- Singapore Business Times
- The Cargo Letter Discussion Board Marks Visitor 3,300
........... as freight forwarders & industry members from around the
world are consulting the new service in increasing numbers to exchange
ideas, post questions to industry experts & get late breaking news. In
the past month visitors were treated to details of LIVE! Internet events
such as the inaugural flight of the Boeing 757-300, world's longest narrow
body commercial freighter, and a 9 Sept. Webcast of Keiko the whale's move
to his new home in Iceland by UPS &the U.S. Air Force. The important new
service is sponsored by Interpool Corp., the world leader in container
leasing and a valued corporate sponsor of The Cargo Letter. Visit today!
Follow discussion "threads" to continue important industry
discussions which may have begun weeks, or months ago. This service is quite
useful over time. Share your opinions! http://www.interpool.com/tcl/disc1_frm.htm
- NIT Picking Issues In Japan? ............. as topics for
the 10 Sept. meeting of the National Industrial Transportation League (NIT
League) are to include the U.S. Ocean Shipping Reform Act of 1998, the
status of port developments in Japan, feasible alternatives to U.S. Harbor
Maintenance Tax (recently struck down by the U.S. Supreme Court), & port
access & other maritime trade difficulties in China. The 2 day meeting,
which will also involve major shipping groups from Canada, Europe &
Asia, will take place in Kobe, Japan. This year the annual meeting will be
extended to involve members of the Hong Kong Shippers Council, the Korean
Shippers Council & the Canadian Shippers Council.
- Are You Still A Licensed CHB? ............ as U.S.
Customs has published in the Federal Register a notice listing 522 Customs
Brokers whose licenses were revoked effective August 7, 1998 due to their
failure to file a status report as required by 19 CFR 111.30(d). Wow!
- Uncle Sam Puts "E-Watch" On Cargo ............
as the U.S. armed forces hopes to improve shipment planning & cut
duplicate ordering by sourcing shipment data directly from its major
shipping carriers. Late last month, 22 vessels, responsible for carrying
over 68% of the military's commercial shipments, began feeding shipment
status information electronically into the military's Global Transportation
Network (GTN). The information includes time, location & status into CXS
Integrated Services, the technology arm of CXS Corporation. The company then
re-codes data into a generic format &transmits it to GTN for
distribution to the network's 4,000 users.
- Breaking Future UPRR Jams? ............ as upper-level
management says that the Union Pacific Railroad is studying a plan that
would reverse a trend of centralization by moving dispatching out of the
"Harriman Center" hub in Omaha, Neb., and into more focused
regional areas. Whatever the plan, it will be too late to effect the outcome
of this year' busy season which is well underway. Indeed, imports from Asia
are up and trucks have become a hot commodity. Some motor carriers are
capturing premium rates as shippers fear a capacity crunch. Normally Sept.
& Oct. are the biggest months for most truckload & LTL carriers. But
this year the peak season moved up to August in some lanes.
- FDA Under Fire For Tainted Food .......... as imported
food shipments more than doubled in the past 6 years and have created a
problem for the U.S. Food & Drug Administration (FDA) in it's battle
against crooks . As a result of the increase, FDA inspected less than 2% of
the 2.7 million shipments of fruit, vegetables, seafood & other goods
under its watch last year. The U.S. system is on overload. As a recent
example, a shipment of imported frozen fish rejected by FDA inspectors in
1996 was found, after closer examination, to be from a batch that officials
had turned away 2 years earlier because it was tainted by salmonella,
botulism & filth. According to the General Accounting Office (GAO), the
U.S. watchdog agency, problems arise because the FDA lets importers keep
their shipments throughout the process, enabling some companies to
substitute approved goods for rejected products or those awaiting
inspection. In some instances, importers ordered to send tainted food out of
the U.S. substitute garbage in those shipments instead, and distribute the
dangerous food in America. By contrast, the U.S. Dept. of Agriculture, which
handles meat, poultry & some egg products, holds shipments in government
approved inspection facilities until they are released or denied entry,
&also puts an identifying stamp on rejected shipments. GAO officials
also said U.S. Customs & the FDA often do not coordinate their efforts.
A former customs broker, who testified anonymously at recent hearings, said
unscrupulous importers look for ports with lax procedures & overworked
inspectors. The broker was in the business for nearly 20 years before his
recent conviction in an ongoing federal investigation. He is awaiting
sentencing TO PRISON. Learn what he knows ........ times are changing for
FDA inspection. The process is about to become strict. They are going to
increase the inspection budget. Review YOUR procedures.
- Falling Ruble Bad For U.S. Exports ............ as a
Journal of Commerce article reports that Russia's 50% devaluation of the
ruble against the U.S. dollar will sharply raise the prices of Russian
imports, which account for a large percentage of consumer goods. The article
states that Russia's move will likely hurt U.S. exports of pork &
poultry but will have less effect on U.S. exports of wheat & other bulk
- Fritz Catches The Ball ......... as it has been selected
by one of Norway's largest sports retail groups, Gresvig ASA, to handle a
part of its Asian connections. Fritz will be responsible for Gresvig's
sourcing, purchase order management and distribution from all major Asian
ports to Norway.
- Circle Gets A New Clark ......... as Randy T. Clark, a 16
year veteran of the air freight & logistics industry, has been named Ex.
V.P. & COO - North America for Circle Int'l Group, Inc. (NASDAQ:CRCL).
He previously spent 12 years gaining experience in air freight sales,
operations & management with Emery & CF AirFreight.
- Danzas Weds ......... as it has signed a contract for a
strategic alliance with Denmark's DFDS A/S to build a new European
transportation network. The partnership includes Danzas' Eurocargo Business
Unit & DFDS Transport Division, which will cooperate in the groupage
& LCL, facilitated by the pair's complementary geographic market
positions. The partnership will enhance service levels for customers and
generate a substantial broadening of both partners' networks. DFDS will take
over the existing consolidations of Danzas' Eurocargo Business Units in the
UK, Finland, Belgium & the Netherlands on October 1, 1998.
- U.S. Customs Reports Export Compliance Report ..........
as the rate for the timely filing of the Outbound Manifest is now determined
to be 89.9%, the Bill of Lading compliance at a dismal 63.1%, and the
Shipper's Export Declaration (SED) compliance at 70.8%. Bad as it seems,
Customs sees great improvement.
- CO And FedEx CFOs Win.................... as Lawrence
Kellner, CFO of Continental Air & Alan Graf, Jr., of FedEx's, win Arthur
Andersen's Excellence Awards for Managing External Stakeholders &
Revenue Growth, respectively. Our congratulations go out to those good men.
- The Dong Show Looses Ratings ............. as on 7
August, Vietnam devalued its currency by the equivalent of 7%, to 12,998
dong to the U.S. dollar. The result follows fears that Asia's currency
crisis is worsening and expectations that Hong Kong & China will follow
Russia to devalue their currencies.
- Chinese Beetle Prompts U.S. Action...........................
as if there weren't enough delays this Christmas shipping season, the
discovery of Asian Long-Horned Beetles in wooden crates from China has
caused every shipment from China which is packed in wooden boxes to be
fumigated on one side of the Pacific or another. The Chinese Ministry of
Foreign Trade and Economic Cooperation (MOFTEC) have issued a statement
calling the ruling "trade protectionism" on the part of the U.S.
- Airborne Express (NYSE: ABF) has announced on 11 Aug.
that it will repurchase of up to 2,000,000 shares of common stock. There are
currently issued and outstanding 50,284,621 shares of common stock.
- Aramex International Limited (Nasdaq: ARMXF) UP 28% to
US$19.9M for the 2nd quarter ended June 30, 1998, from US$15.6M for same
quarter 1997. Net income increased approximately 25% to US$0.903M for the
quarter. The company is an Int'l express & forwarder, specializing in
the Middle East & Indian Subcontinent regions
- Expeditors International of Washington, Inc.
(NASDAQ:EXPD) UP with record quarterly net earnings of US$11,080,000 for the
2nd quarter of 1998, compared with US$8,174,000 for same quarter of 1997, an
increase of 36%.
- FedEx (FDX). UP with 4th quarter earnings per share of
US$1.14 and record earnings of US$3.91 per share for the full year excluding
merger expenses. Revenues for the quarter were US$4,078M, up 2.9% from
US$3,961.2M in the previous year's Q4. Net income for the quarter excluding
merger expenses was US$170.7. Net income was US$134.6M.
- Trans World Airlines (TWA) UP with net profit of US$19.5M
for 2nd quarter 1998, compared with last year's net loss of US$14.4M.
Revenue was also up 4.6% to US$883.5M.
- ICAR Will Buy Back ........... as Intercargo Insurance
Company (NASDAQ:ICAR) has announced that it will make open market purchases
from time to time of up to 1,000,000 shares of its common stock at then
prevailing market prices or in private transactions at negotiated prices.
The Company believes that current market conditions make such purchases
attractive and a prudent use of its cash. There are approximately 7,700,000
shares of common stock outstanding.
- Asia Flu Hits P&O NEDLLOYD ............ as it has
recorded a loss in operating profit for the 2nd quarter of 1998 from US$36M
for same period 1997 to US$22M. The results have been significantly affected
by the Asian economic downturn, although volumes out of Asia continue to be
extremely strong and all vessels are now effectively full. In the other
direction, volumes into Asia are weak. The financial situation in the region
has resulted in an imbalance cost of approximately US$10M in the 2nd quarter
of this year, compared to the previous quarter. The situation is not
expected to improve in the near future. Still , P&O Nedlloyd achieved a
record throughput for the quarter. If the additional volume, resulting from
the company's acquisition of Blue Star is excluded, total throughput rose by
3.2% from 590,600 TEUs for the 2nd quarter of 1997 to 609,400 TEUs this
year. The average revenue rate per TEU over the first half of 1998, has
remained the same as in last quarter 1997 at US$1,397.
- Danzas Is Happy .......... as it reports a healthy profit
for the 1st six months of 1998, more than doubling operating income to CHF29
million, up 107%, and net income, gaining 155% to end the period at CHF28
million. Total sales of CHF3,521 million (up from 1997's CHF3,377 million)
& net sales of CHF2,349 million (up from last year's CHF2,260 million)
represented increases of 4 per cent.
- Kuehne & Nagel Reports In ............. as for the
1st half of 1998, its most profitable sectors were air & sea freight and
special services, whose respective gross profits increased by 8%, 10% 14%.
The other divisions also reported gross profit gains. However, K&N's
airfreight & logistics division sustained losses of sfr700,000 and 3.1
million respectively, attributable to more competitive market conditions as
well as to startup losses connected to new contacts with major customers.
The Swiss/German forwarding group recorded growth of 12% on net income for
the first 6 months of 1998, to sfr42 million. K&N's revenue was also up
12%, to end the period at sfr3.28 billion, while net turnover, after customs
duty and taxes, saw a rise of 13% to sfr2.55 billion. Gross profit for the
period was sfr600 million, up 6% and operating profit increased 7% to sfr67
- Nippon Express Got A Flu Shot .......... as it has fared
well in a recent study of cargo handlers, ranking 4th in ex-Asia-US
handlings. Nippon behind Fritz Companies, Inc., the Tower Group & Kuehne
& Nagel, having moved 44,242 TEU last year. It was also 4th in the
category of overall volume of U.S. export ocean freight, having shifted
27,639 TEU during 1997. The top three places went to Direct Container Line
(DCL), Shipco Transport & Kuehne &Nagel. Nippon Express (USA) was
5th for overall inbound trade to the U.S., by handling 47,679 TEU last year,
behind Fritz Companies, Inc., the Tower Group Int'l, Kuehne & Nagel
& Schenker International. However, its transportation of 26,565 TEU from
the US to Asia last year, earned Nippon Express (USA) first place out of non
vessel operating common carriers (NVOCC). The company's top spot placed it
ahead of DCL, Fritz and other primary US competitors.
- Did We Mention Fritz Was #1? .......... as mentioned in
the above article Fritz Companies, Inc. held this NVOCC tile for both U.S.
inbound &outbound TEU traffic in 1997.
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.
- Australia Liability Limits Fall In Line ............. as
it adopts Montreal Protocol IV to the Warsaw Convention, thus creating a new
cargo liability limit as of June 14. Previously, Int'l airlines had to
approach cargo claims in accord Australia's local reading of the Warsaw
Convention which provided a liability limit of around A$300 per kilo
(compared with U.S. limit of US$20/kilo), based on the free market price of
gold. The new amendments to the Australian Civil Aviation (Carrier's
Liability) Act, stipulate a limit of just A$38 per kilo. Doubts have now
been set aside as to the conversion of Warsaw limits to Australian dollars
by placing a cap on cargo claims where there has been no specific
declaration of value. The cap will also end attempts to defeat damage
limitations, as it cannot be exceeded by implying international, willful or
reckless misconduct. The Montreal Protocol IV applies to carriage between
Australia and 29 other countries which have also approved the limit. It came
into force when Estonia became the 30th country to authorize the protocol.
The U.S. has yet to adopt the Act.
- Cargo 2000 Group Spurs Ahead .......... as the IATA group
moves to hasten implementation of time-definite services. It is planning to
introduce electronic booking of freight and IATA's resolution 606 for bar
code labeling & scanning. The 606 standard was undergoing trials earlier
this year and shown to make 91% of its door-to-door deliveries within 72
hours, as compared with an average door-to-door delivery time of 156 hours
between 1972 & 1997. As U.S. Customs is to go on-line, all members of
Cargo 2000 will register with the U.S. Automated Customs System and submit
manifests, airway bills &customs entries electronically. Cargo 2000
members also intend to implement the system in 3 other countries, which have
not yet been specified. A major stumbling block is U.S. delay in adopting
Montreal Protocol IV to the Warsaw Convention. Thus, a paper air waybill
will still be required in the U.S. Cargo 2000 currently has 19 airline &
17 forwarder members, following the recent co-operative venture between
BALtrans Hong Kong & BAX Global.
- Chet Lap Kok Finally On Line? ........... as a Wall
Street Journal article reports that Hong Kong's troubled new airport has
begun handling all air cargo for the 1st time, and acceptable expected
turnover, since it opened in early July 1998, according to airport sources.
Computer & mechanical problems at the airport had crippled air-cargo
transport. For the full story, see our feature in The Cargo Letter .
- Northwest Strike Has Little Cargo Impact ........... as a
Journal of Commerce article reports that the Northwest Airlines pilots
strike strained ground-handling staff at West Coast airports, causing cargo
that had been rerouted through other airlines and had reached its
destination on time to be delayed on the ground. Even so, the article
states, the strike appears to have created little panic among cargo
customers, as other carriers seem to have enough space availability to
handle the extra load. Now that the strike has ended, Northwest will restart
its flight operations in stages over a 9 day period. With few exceptions,
the daily schedule will unfold as follows from Saturday, Sept. 12 - Monday,
Sept. 21. 25% of Northwest's flights will be operating by Wednesday, Sept.
16. The employee recall process is already underway, with Northwest Human
Resources contacting all 31,000 people placed on temporary "no
work" status. Recall notices are being mailed to all affected
employees. NOTE: Northwest Airlines has canceled all of its domestic flights
through Tuesday, Sept. 15, and all in-bound flights from Europe &Asia
through Wednesday, Sept. 16.
- FAA Security Regs Were Only The Beginning ........... as
the U.S. National Transportation Safety Board (NTSB) is urging the
Department of Transportation to fashion new technologies & procedures to
uncover shipments of illegal cargo. The recommendation comes after a fire on
board a Federal Express plane in New York on September 5, 1996. The DC-10s
freight included aerosol cans and several packets of marijuana. The NTSB
says this was an example of how carriers can be oblivious to the real
content of much of the cargo it is handling. Stay tuned.
- Lufthansa's Forwarder Pals Said Happy ............. as
the carrier has announced that its Business Partnership Program is making
good headway. 7 Int'l forwarders have signed business partnership agreements
with the Lufthansa Group, including 4 "pilot partners" - Gebr.
Hellmann, Jet Speed, Expeditors & Air Express Int'l, with whom the
program was tested in a 6 month pilot phase starting in January 1998. Kuehne
& Nagel, Schenker Int'l &Panalpina joined up in July. Business
partnership agreements will next be signed by Danzas, MSAS & BAX Global,
formerly known as Burlington Express. In the program, unique in the air
cargo industry, forwarders undertake to link their services closely with
those of Lufthansa Cargo. This intensive co- operation between airline &
forwarders integrates their services into complete logistics solutions to
the advantage of their common shipper clients. From the shipper point of
view, the Business Partner forwarders & Lufthansa Cargo operate as a
virtual integrator. "The circle of Lufthansa Cargo business partners is
increasingly widening," said Lufthansa Cargo sales & marketing
chief Stefan Lauer.
- EU Cargo Jump Spawns Intermodal Talk .............. as EU
air cargo is projected for a 4.5% increase every year from now on, while its
surface transportation is set to grow by 12% annually. Accordingly nearly 2
million tons of air freight will be transported across the continent by
2030, of which almost 430,000 tons could feasibly be shifted by rail via an
intermodal terminal. This prospect has prompted discussions on rail cargo
connections between Heathrow & other continental airports. So far, the
possibility of an intermodal terminal at Colnbrook, west of Heathrow (LRH),
is being considered. If so, LHR will join Amsterdam, Frankfurt & Milan
as an intermodal freight hub within the next 2 years. In 1995/96, over a
million tons of air cargo was transported through LRH, 47,000 tons of which
was short-haul traffic to other airports.
- China Air Cargo Takes A Step ........... as China's first
air cargo company, China Cargo Airlines, has been unveiled by its two joint
venture partners, China Eastern Airlines & China Ocean Shipping Co.
"Cargo Airlines", as it will be known, intends to specialize in
domestic and Int'l freight &express, including courier services for
cargo and mail, subcontracting aircraft for cargo transportation, and agency
services for air freight &mail delivery. The new line is 70% owned by
China Eastern & 30% owned by COSCO and will be based at the Shanghai
Pudong International Airport, with a provisional base for the time being at
Shanghai Hongqiao Int'l.
- Singapore Air Takes China Share ............ as it would
acquire a 5-10% stake in Taiwan's troubled China Airlines as part of a new
strategic alliance. The carriers signed an MOU for coordination of flight
schedules and code-sharing.
- Tower Group Int'l Creates New China Division ..........
as it has signed an agreement with Trans Global Logistics, its Hong
Kong-based Asia airfreight partner, to create Tower Group Asia, a service
that will operate in 30 cities in 17 countries from the Indian Ocean to the
Pacific Ocean. Tower Group Int'l is the logistics services business unit of
The McGraw Hill Companies, the publisher.
- Southern Marriage Rescheduled With New Groom ...........
as Fine Air Services says it will cancel purchase Southern Air Transport due
to the carriers' inability to come to a mutually beneficial deal. Instead,
the MIA based carrier will be bought by DFW based, Kitty Hawk, which says it
will probably operate Southern as a separate subsidiary. Southern currently
has a fleet of five B-747-200 freighters. Its fleet of Lockheed L-100
Hercules aircraft will not be part of the agreement and will be bought by an
unidentified party. Fine Air will still expand its fleet with acquisition of
DC-8 & L-1011 freighters.
- Aerovias de Mexico Will Double ............. as the
Mexican airline will spend about US$700M over the next 5 years to double its
fleet. AeroMexico, as the line is popularly known, is hoping to have 120
planes by 2002. It currently operates 310 flights a day, 270 of which fly
domestically. The remaining 40 cover the United States, Europe and Latin
America. The carrier has 40% of the Mexican market.
- Atlas Claims MIA Bragging Rights .............. with
announcement that it was the leading freight carrier at Miami Int'l Airport
during the first half of the year, according to a semiannual traffic report
issued by the airport. Atlas handled 101,506 tons of freight at MIA from
January through June, representing 10.8 percent of the total freight that
passed through the Miami airport during that period. The airport said its
total freight in the January-June period increased to 941,577 tons, up over
5% from the same period last year. 18 months ago, Latin American marketplace
activity for Atlas was limited to one aircraft. Today there are 5 full-time
B-747 freighters operating in and out of MIA to various points in Latin
America on behalf of our 2 major customers, Aerofloral & Fast Air. Atlas
Air is a U.S. carrier that operates a fleet of 747 freighters under
long-term ACMI contracts, providing aircraft, crew & maintenance for
leading carriers such as Alitalia, British Airways, Cargolux, China
Airlines, Emirates, Fast Air, KLM, LAS, Lufthansa, SAS, and Thai
International Airways, serving a total of 62 cities in 38 countries. Last
month, Atlas acquired its 20th & 21st B-747 freighters, including the
1st of 10 new 747-400 GE-powered Boeing freighters.
- Three Partner Project To Osaka ............. as on
September 21, Lufthansa Cargo, Japan Airlines & SAS Cargo will jointly
offer direct freighter service between Frankfurt, Gothenburg in Sweden and
Osaka, Japan. A Lufthansa B-747-200F will fly 1 x weekly from Germany via
Scandinavia to Japan and back to Germany. In early March 1999, frequencies
will be raised to 3 weekly connections. The Osaka service is known as the
first "Three-Partner- Project" between Lufthansa Cargo, Japan
Airlines & SAS Cargo. For Lufthansa Cargo & JAL, the flights to
Osaka complement joint services which they have been operating 6 x weekly on
the Frankfurt-Tokyo route since 1969.
- Airliners Too Close For Comfort............. as a Cathay
Pacific A340, traveling from Zurich to Hong Kong with 260 souls on board,
almost collided with a Russian Tupolev 154 over Samara, about 500 miles
southeast of Moscow last week, AND............ as if that weren't enough to
keep you out of the air, a KLM MD-11, a Swissair MD-11 AND a British Airways
767 almost had a midair passenger exchange over the Atlantic, 400 miles off
the Irish coast last week.
- FAA Ready For "Big Midnight"? ............. as
it reports that 67% of its computers now are Y2K compliant, meeting an
agency-set deadline. Under the time line adopted by FAA, the agency has
until Sept. 30 to renovate all its mission critical computer systems to
properly recognize the year 2000 data codes. Most of those computer systems
already renovated are used in air traffic control, including the ARSR-4
long-range radar used primarily to track aircraft by enroute centers.
However, the U.S. General Accounting Office is skeptical that FAA will meet
all its Y2K goals.
- Lufthansa Looses Its Wires ............ with plans to
install a wireless cargo tracking system in 27 of its facilities around the
world. The system is being developed by Texlon Corp. which is providing the
wireless network and more than 500 mobile computers. After its installed at
London's Heathrow (LHR), Lufthansa will start a worldwide roll-out, starting
with airports in Cologne, Germany, & Shariah in the United Arab
Emirates. The system will use Telxon products to scan barcodes containing
Air Waybill Codes and unit numbers of shipments. This will eliminate labor
and mistakes in keying in data while also reducing transit times &
handling costs, Lufthansa said.
- Panalpina Hits Big At MIA ............ as it's new Miami
Int'l Airport facility is able to handle as many as 50 trucks
simultaneously. The sophisticated 18 acre complex includes 300,000 square
feet of warehouse space and 80,000 square feet of transshipment space.
- Meeting The Challenge At DFW ........... as Challenge Air
Cargo has opened a new hub at Dallas/Fort Worth Int'l to link north Texas
with Latin America. The hub will use all of a 205,000-sq.-ft. facility which
remains under construction.
- Polar To Peru ............ as the Long Beach, CA based
carrier has just started a 2 x weekly B-747 service connecting Miami &
- BA To Think Smaller? .......... as it is said
transferring more of its long-haul services from B-747s to smaller aircraft
such as the B-777, though it will still be using B-747s on some of its
- Further Displeasure Over End To MD11 Freighter .........
as Lufthansa Cargo Chairman Wilhelm Althen deplored Boeing's decision to end
production of the MD-11F during a ceremony at Frankfurt Airport to mark
arrival of the 1st 2 of 8 ordered MD-11Fs. Three more will arrive this year
and at least three in 1999. Althen called for "another
manufacturer" to enter the market with an alternative heavy freighter
to counter Boeing's monopoly.
- Not a Good Week For MD-11s................. as a China
Eastern MD-11 with 137 people on board made a U-turn & an emergency
landing at Shanghai's Hongqiao Airport after its nose gear jammed, sending
up a shower of sparks as it slid along the runway. There were no serious
injuries reported, and the airline declined comment. The incident came after
loss of Swissair Flt 111 and still another near disaster when a Swissair
MD-11 came within seconds of collision with a British Air flight over Europe
- DHL Carries Jumbo Cargo ........... as it delivered Dumba
the elephant back to Frankfurt, Germany last month. Dumba, weighing in at
5,000 lbs. is employed by the Moscow Circus, left at night on August 3 from
Chek Lap Kok airport after 3 weeks of performances at the Hong Kong
Coliseum. Meanwhile, DHL has become the 1st air express company to receive
the Int'l Trade Award (ITA) special recognition for "Innovative
Application of Information Technology", from the Singapore Trade
- Sir, Your Luggage Is Hissing! ............ as 54 cartons
being run through the X-ray machine at Jakarta's international airport were
found to contain 1,020 cobras. Police said the snakes were being smuggled to
China, where the meat & skin of the prized fetch high prices. Eels, a
popular menu item in parts of Asia, can be shipped, but cobras are protected
in Indonesia and their export is forbidden. Smugglers face up to 5 years in
prison &US$7,700 in fines.
- Chip & Dale Do Chek Lap Kok ........... as the
troubled, new Hong Kong airport faced a new peril late last month:
chipmunks. One of 4 chipmunks that apparently had been smuggled onto a
British Airways flight from HKG to London broke free and roamed through the
crowded economy-class cabin just before the 14 hour flight landed, the South
China Morning Post reported. The paper said one woman was scratched. The
rodents posed a danger because they could have chewed through aircraft
wiring or carried rabies, said officials at Chek Lak Kok. Two French
citizens who allegedly smuggled the animals on board were questioned in
London, then allowed to continue on to Paris. The chipmunks remain in
quarantine, but will not be required to pay for the flight. The chipmunks
were probably stowed in the passengers' pockets or hand luggage prior to the
flight, but the X-ray security system does not detect live animals.
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.
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.
The Freight Detective's Air Cargo Central .............
everything about air cargo. This feature will continue to expand its range of
The Freight Detective's U.S. Customs Resource Center
........ everything is here from Regs to Ruling Letters.
The Freight Detective's Transportation Reference Desk
.......... researching your transport information.
The Freight Detective's Translator Service ......... quick
and free translations of your documents in the leading languages.
Details Of New Hong Kong Airport
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.
The Air Cargo Newsgroup ...... continuing discussion of
matters relating to the airlines.
Trade 2000 ........ Flagship Customs Brokers has opened a
unique site with customs EDI.
Air Transport World
E-Tracker ......... the air freight tacking solution from
our own Michal Douglas at Imagination Inc.
Rotterdam Port Promotion Council. New!
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
Sky Service General Aviation
Sea Songs ......... how's your singing voice?
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.
- ICAR Moves Industry Forward
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
-- 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)
Here's the easiest way to 'test' your own PC for Y2K compliance:
- Make a boot disk, also known as an "emergency disk, to enable
restarting your system if bad things happen
- Reset your PC clock to 31 December, 1999
- 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!
-- 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
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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