The Cargo Letter
THE CARGO LETTER 
Air & Ocean Freight Forwarder - Customs Broker News
1 March 1999
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'.' And yes, we have PIRATE news! Our web site now welcomes over 18,000
industry professionals each month, seeking reference material & breaking
news. What is your business missing?
Don't miss our new "Internet
Gizmo" feature, what everyone is talking about for fun & "the
strange" on the Web. Be a part of the Web, not just visiting the Web.
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://www.cargolaw.com
To post comments or discuss articles ....... http://www.interpool.com/tcl/disc1_frm.htm
The Freight Detective ........ http://www.cargolaw.com/detective.html
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. Freight Forwarder Trade Briefs
2. The Cargo Letter Financial Page
OUR "B" Section: FF World Air News
3. Freight Forwarder World Air Briefs
OUR "C" Section: FF World Ocean News
4. FF World Ocean Briefs
OUR "D" Section: FF in Cyberspace
5. The Cargo Letter "Cyber Ports Of Call"
OUR "E" Section: The Forwarder/Broker World
6. U.S. Denies Hughes Corp. Satellite Export License
- Prospective Singapore Buyer Is 15% PRC-Owned
* Our Warren S. Levine Article
- Deutsche Post Deals Approved ............ as its
acquisition of Danzas, the Swiss logistics multinational, by has been
cleared by Swiss, European & U.S. bodies, while shareholders approved
necessary changes. The board has been restructured, Klaus Zumwinkel will be
the new president & Peter Wagner, C.E.O. More, the EU has now also
approved proposed acquisition by Deutsche Post of a controlling interest in
the express business of UK company Securicor. The commission says "The
target will become a joint venture between Deutsche Post & Securicor.
From Deutsche Post's viewpoint, the acquisition is one of the several
carried out in recent months including DHL, Danzas & Trans-o-flex. The
arrangement allows Deutsche Post to further expand in the express area &
pursue its plan to build up a European parcel network. Securicor will
benefit from improved access to markets of Europe. The operation will not
create any serious risk of dominance on the markets for express & parcel
services. The 2 parties' businesses are rather complementary both in terms
of types of services provided as well as in geographic coverage. More, the
new entity will face competition at least from integrators such as UPS &
FedEx & from other national postal companies such as the Dutch group TPG,
La Poste Française & the British Post Office." Deutsche Post is
the national postal operator in Germany. Securicor is a diversified group
with activities in security, distribution & communications.
- Trucks & Trains In New Rumble ................ as
U.S. trucking lobbyists have revealed their "nuclear bomb" to
railroads, threatening to join captive shippers in the railroads'
competitive access debate. The American Trucking Assn.s' board has
authorized the move in the wake of the railroads' intransigence in the truck
size & weight issue. ATA wants the Association of American Railroads to
step aside and allow the U.S. Congress, shippers and the trucking industry
to decide what longer-combination vehicles should be permitted - or else ATA
is threatening to help Congress decide if railroads should be forced to open
their tracks to more competition. "The ATA staff has been directed by
our board to participate fully in the competitive-access debate," said
ATA President Walter McCormick. "We will reach out and begin meeting
with shipper groups & railroads. Truckers will help delineate &
define the rationalization of transportation networks."
- "Hot" Cargo Heads For The Ditch ........... as
Japanese cargo ship M/V Pacific Swan, laden with a controversial shipment of
nuclear waste left France last week & will pass through the Panama Canal
en route to an April arrival at Mutsu-Ogawara, Japan. Pacific Swan, steamed
away under military escort from the northern French port of Cherbourg on
Thursday, but for security reasons its itinerary was withheld from the
public for 24 hours. Officials feared demonstrations from Green Peace
activists who had called the ship ``a floating Chernobyl.'' Green Peace said
one of its ships was already headed toward the Panama Canal. The nuclear
waste treated in France came from 10 Japanese electric companies. The
shipment was the 4th since 1995 & included 20 containers, each filled
with 880 pounds of treated radioactive waste. In the late 1970s, France
agreed to treat 2.8 tons of Japan's nuclear waste on condition it be sent
back to Japan for final storage.
- New Fritz World Tariff Web Service .............. as it
has joined with Worldtariff, provider of duty and tax information, to
announce Worldtariff's publication of new data for 21 key customs
territories which is available to Fritz clients through the Fritz web site.
Fritz & Worldtariff have partnered since 1995, with Fritz holding
exclusive rights for the logistics industry to online access to Worldtariff
info & selling it as an added value to clients. Worldtariff is now
delivering 1999 editions of standardized English electronic customs duty
& tax information for 35 nations comprising 21 customs territories. The
company will publish 40 customs territories by March 31, covering 90% of the
world's imports. A total of 63 customs territories or 79 nations will be
available by July & all others as ordered. Fritz is also working with
Worldtariff to develop an Internet based global landed cost calculator,
Fritz Logistics Expediting (FLEX) Trade Cost Modeling, which is due out
later this spring. Fritz has begun taking orders for this software that
gives clients the ability to calculate the total worldwide landed cost --
duty, taxes, transportation & other charges of products for different
sourcing & market options.
- Danzas Restructures ............. as in response to being
purchased by Deutsche Post, it will restructure its European network into 2
areas. "Europe1" will comprise Austria, Germany, Spain, Portugal,
Greece, Finland, Sweden, Belgium, Netherlands, Check Republic, Slovakia,
Hungary, Poland, Egypt & United Arab Emirates, while "Europe
2" will be represented by Italy &France. Danzas will also now take
over Hammond Int'l Limited, Napier, New Zealand. On 1 April, Hammond will be
a Danzas company & all of its activities will be integrated into the new
Danzas Ltd. The Danzas subsidiary has offices in Auckland & Wellington,
while its head office is situated in Napier. Don Hammond, the former owner
of Hammond Int'l, will assume the post of managing director of the new
- GeoLogistics Is Da Bomb! ............ as it is appointed
by the U.S. Dept. of Defense to provide end-to-end logistics support for
special cargo carrying material for dismantling weapons of mass destruction
in the former Soviet Union. GeoLogistics will consolidate equipment from
special manufacturers, shipping it by land, sea & air to destinations in
Russia &Eastern Europe. Most of the shipments will contain equipment to
deal with nuclear, biological & other weapons, as part of a U.S.
disarmament accord covering 40 destinations in 10 former Eastern Bloc
countries. GeoLogistics, working for the Defense Dept.'s Joint Military
Traffic Command Logistics Div., will manage movement of hazardous war
material within the former Soviet Union & then back to the U.S.
- Will Schenker Hold The Anchovies? ............ as it has
won a contract to handle logistics for 500 new stores Domino's Pizza plans
to open this year at locations around the world. Shipments will include food
& nonfood items ranging from pizza dough to restaurant ovens. Schenker
will handle all forwarding, customs, warehousing & consolidation.
- Sweet 16? .......... as for the 16th consecutive year,
UPS has been rated America's most admired mail, package & freight
delivery company by a survey conducted for Fortune Magazine.
- ST Logistics Sold .......... as Singapore Technologies
has sold ST Logistics to Sembawang Marine & Logistics for S$126M, which
has renamed the company SembCorp Logistics.
- Sweden's Swe-Kombi Bought .............. as it has been
taken over by the German & Swiss intermodal companies, Kombiverkehr AG
and Hupac SA. Both Kombiverkehr & Hupac acquire 30% through takeover of
the shares of the Swedish forwarder.
- Italy's New Giant ............. as forwarders Merzario
& Serra have merged to form the country's largest transport company, SM
Logistics. The new company will have revenues of 850B lira & employ
1,200 people. Serra was one of the biggest forwarding companies before its
link with medium sized Merzario. In 1997 the companies jointly handled
150,000 TEUs, 34,200 tons of air cargo and 182,000 tons of inland cargo last
- Kintetsu Gets Shanghai'd ............ as a new Kintetsu
World Express operation has been opened in Shanghai the forwarder. The
company, Shanghai Kintetsu Logistics Co will offer both customs &
forwarding. The move follows the KWE Beijing office which opened in 1997.
- Freight Investment ...........as Pacer Int'l, the
intermodal marketing & logistics company headed by former Southern
Pacific executive Don Orris, has entered a merger agreement with an
investment firm, an affiliate of Apollo Management of New York. The idea is
to give Pacer a substantially larger equity base to support operations &
expansion. Terms were not disclosed. Apollo Management L.P. is a private
investment partnership that has invested in excess of US$10B since 1990 in a
variety of corporate & real estate transactions.
- New K & N Chief ..............as Rainer Sandow, has
joined the executive board of Kuehne & Nagel and will lead the company's
national & Int'l overland transportation as well as for its Europe-wide
distribution activities. The 41-year-old was previously head of German
operations of the American logistics concern, Ryder System Inc.
- New Customs "How To" Tutorial .............. as
"Importing into the United States," the 144-page publication
popular with the Int'l trade community, is now available in its entirety on
the U.S. Customs Service Web site. The 1998 edition contains new &
revised material brought about by the Customs Modernization Act of 1993 (Mod
Act), which shifted the legal responsibility for declaring the value,
classification and duty rate of imported goods to the importer. The section,
"Informed Compliance," details Customs role in informing the
importer, and the importer's responsibility to use reasonable care to
provide Customs with accurate and timely data. There are 38 sections &
10 categories entitled "Customs Mission and Organization," "
Entry of Goods," "Invoices," "Assessment of Duty,"
"Classification and Value," "Marking," "Special
Requirements," "Fraud," & "Foreign Trade
Zones." There also is an appendix listing additional information on
invoices, Customs valuation, forms & other agencies. It is available on
the Web at our U.S. Customs Resource Center.
- Garlic Dumper Gets The Dump ......... as importer, Jimmy
Tani of La Puente, California, was sentenced by a federal judge in Los
Angeles on 8 Feb. to 18 months in jail, with 3 years' probation, & a
US$7,500 penalty. Tani may be the 1st importer to receive a jail sentence
for circumventing U.S. trade laws. Tani's crimes began in July 1994 when the
U.S. Dept. of Commerce imposed an antidumping duty order on fresh garlic
imported from China into the U.S. The order required importers to post a
bond or cash deposit of 377% of the value of any shipment of the product.
Using falsified documents, Tani grossly undervalued or incorrectly
identified country for origin of 98 shipments of fresh garlic from China.
Each shipment violated the antidumping duty order &resulted in the total
avoidance of more than US$9M in antidumping duties.
- All Teed Off .......... as Callaway Golf Co. is overjoyed
that U.S. Customs arrested 12 persons & commenced criminal actions
against them last month for importing counterfeit golf club components.
Operation, "Project Teed Off," began with the arrests in Orlando,
Florida, of Midi Liu, brothers David Liao & Ben Liao, of Taiwan, and
Stephen Cheng, of LAX. In coordinated arrests elsewhere in the U.S., Customs
agents arrested Dan & Lily Liwan Lin Gutierez, also of LAX, Andrew Lee
& Oscar Gonzales, of Houston, Mike Cohen &Rob Isola, of Savannah,
and Albert & Angie Chung, of Atlanta. Seized merchandise includes
counterfeit Biggest Big Bertha Drivers & associated branded merchandise.
Callaway has cooperated with the efforts of Customs against the flow of
illegal golf club components. Over the last 2 years, Customs has seized
approximately 110 shipments of more than 110,000 golf club components
bearing counterfeits of Callaway Golf's trademarks or copyrights. These
seizures have involved shipments by more than 50 importers of products from
Taiwan, China & other countries.
- A Test Of Nerves ......... as a 24-hour shutdown of U.S.
Customs Service computers in the Houston area was postponed in early Feb.
after an outcry by brokers & importers. The drill was supposed to show
how 200 importers, customhouse brokers & forwarders would do if they
were forced to get by without customs computers for a day -- and rely on pen
and paper. ``This is meant to be a constructive exercise that everybody
learns from in a positive way,'' said Customs spokesman Dennis Murphy in
Washington, D.C. Port officials felt different about the drill. They said a
computer crash, simulated or not, would have meant major delays at the
area's ports and at Bush Intercontinental Airport. If just one ship laden
with 5,000 tons of steel were delayed for a day, that could cost a shipper
US$60,000 in additional handling and storage fees, said Alistair McNab, of
the Greater Houston Port Bureau. Customs said port officials will be told of
a two-week window during which to expect the test when it is rescheduled.
- Bigger INS Punch .......... as the U.S. agency is
deploying 1,000 new Border Patrol agents to fight illegal immigration. The
INS will send 485 agents to Texas, 395 to Arizona, 83 to California, 15 to
New Mexico & 22 to three places on the border with Canada
- Consolidated Heads South ............ as the Mexico-based
subsidiary of Consolidated Freightways (CF) is the 1st U.S. LTL provider to
become a full, active member of Mexico's national trucking association, the
Camara Nacional del Autotransporte de Carga (CANACAR). Founded in 1989,
CANACAR represents the interests of the trucking industry in Mexico and is
active in the development of laws, regulations & standards related to
the transport of cargo within Mexico & across the border. CF's Bilingual
Mexico Help Desk is reachable at 800/624-9585.
- Stack Train Suitor Named ......... as Norfolk Southern
has been suggested as the leading candidate to buy APL's Stack Train
network, a system of 20,000 containers operating through 60 terminals. The
purchase is expected to close shortly, but APL has explained that there was
no fixed timetable. APL's move still puzzles those who point out that the
service was quite profitable.
- Rail Rise .......... as shipments of intermodal trailers
& containers were up 2.6% for the first 7 weeks of this year, the Assn.
of American Railroads says. The AAR said intermodal volume in the week
ending Feb. 20 jumped 9% from same period 1998 volume. Rail carload traffic,
which does not include intermodal, was down 1.5% through the first seven
weeks of the year, largely because of weakness in the steel sector.
- A Continuing Warning .......... as 6 U.S. states have now
passed laws making their official operations immune from lawsuits resulting
from Y2K problems. An additional 32 states will follow soon. We warn not of
the problem, but the problems which will surely follow from its perception.
- Atlantic Container Line. UP with a 17% increase in pretax
profit to US$40M for 1998, despite weakness in transatlantic container
rates. ACL said average rate levels in U.S. dollars were 6 percent below
1997's levels, but that profit rose as a result of cost-cutting &
improved balance in east/west flows.
- British Airways. DOWN with an unexpected loss for the 3
months ended Dec. 31, of US$125M.
- Circle Int'l Group, Inc. UP/DOWN for the 4th quarter
ended December 31 with net income of US$5.8M, or $0.34 per share. The
results compared with net income of US$7.8M, or US$0.45 per share for same
period 1997. Income from operations in the quarter was US$8.3M, compared to
1997 fourth quarter income from operations of US$8.6M. Revenues for the 1998
fourth quarter were US$206.7M, up 6% compared to US$194.4M for same period
last year. Net revenues, which represent revenues less purchased
transportation costs, increased 11% to US$82.5M from US$74.5M in the 1997
4th quarter. Record 1998 full-year net revenues exceeded US$300M.
- Expeditors Int'l of Washington. UP with net earnings of
US$13.9M for the fourth quarter of 1998, compared with US$12.9M for same
period 1997, an increase of 8%. Net revenues for the 4th quarter of 1998
increased 21% to US$102.4 as compared with US$84.5 reported for same period
1997. Total revenues & operating income were US$308.7M & US$ 22.1M
in 1998 compared with US$270.1M & US$19.6M for same quarter 1997,
increases of 14% &13%, respectively.
- Interpool. UP with revenues during 4th quarter 1998 of
US$48.9M, up 15% from US$42.5M in same period 1997. Revenues for the year
ended Dec. 31, 1998 were US$182.3M, up 13%. The company's container fleet
has grown to approximately 500,000 container TEUs, with container
utilization at 99%, while the chassis fleet has grown to approximately
76,000 units, with chassis utilization at 96%.
- Kitty Hawk. Up with profits increased 125% to US$11.5M in
4th quarter 1998, on revenues increased 13% to $236.7M. Kitty Hawk posted a
US$16.6M profit compared to a US$960,000 loss in 1997. Total revenue rose
13% to US$714.9M.
- LanChile. DOWN as earnings during the 4th quarter and
year-ended 1998 decreased 52% compared to 1997 results Cargo revenues
increased 12.2% during the year, resulting in 11.1% growth in total
operating revenues in 1998 compared to 1997.
- Mercury Air Group. DOWN for the 2nd quarter of fiscal
1999, ended December 31, 1998, with a net income of US$1.8M before an
extraordinary item as compared to US$2M for 2nd quarter 1997. For the 2nd
quarters of fiscal 1999 & 1998, earnings per share before extraordinary
item were US$0.28 per share basic & US$0.21 per share diluted. Revenues
for the 2nd quarter were US$56.7M as compared to US$68.7 for 1997. The
decrease was primarily attributable to lower fuel prices & lower volume
of fuel sales.
- Sea-Land Service. DOWN as 4th-quarter operating income
plunged to US$16M from US$75M a year earlier, as the line continued to take
a hammering from the volatile Asian cargo market and a weak rate
environment. Revenue slipped 3% to US$980M, while expenses rose 3% to
US$964M. Volume showed a decline of 8%.
- Target Logistics. DOWN for the fiscal 2nd quarter ended
December 31, 1998, with a net loss of US$632,297 or $(0.10) per share,
compared with net income of US$313,757, or $0.03 per share ($0.02 diluted)
for same period 1997.
- Tower Air. UP with operating profit of US$17.1M for the
year ended Dec. 31.1998, compared to US$7.5M for 1997, showing a US$9.7M, or
129.8% improvement. Net profit for 1998 was US$1.5M, or $0.10 per share,
compared to a net loss of US$3.9M, or $0.25 per share for 1997.
- Trans World Airlines. DOWN with a 4th-quarter operating
loss of $65.7M, including US$42.6M in special charges, compared with a
year-earlier operating profit of US$500,000. Revenue fell to US$747.1M from
US$812.8M. Revenue from freight & mail fell to US$27.1M from US$31.6.
TWA will reduce its 21,000-member work force by about 1,000 this year.
- United Parcel Service. UP 37% in 4th-quarter net income,
while revenue rose 8.6 percent. UPS cited strong gains in Int'l operations,
declining fuel prices, improved product mix and yield, & cost-cutting.
Net income for the quarter ending Dec. 31 totaled US$482M, while revenue was
US$6.6B. For the year, net income rose to US$1.7B from US$909M in 1997, when
results were affected by a 15-day strike. Revenue rose 10.4% to US$22.4B.
- Airborne Going Airborne? ............ as financial
analysts at BT Alex Bown, Inc. recently initiated coverage of Airborne
Freight Corp. (ABF), suggesting that its low-cost strategies & cash flow
generation could bring big profits soon. For the full article, please go to
the Multex Investor Network.
Airborne Freight Corp. recent financial news
- Forward Air Splits .........as it (Nasdaq/FWRD) has
announced a two- for-one basis for shareholders of record on March 12, 1999.
The company has seen revenue grow from US$31.2M in 1993 to US$130.4M in
1998, a 33% compounded annual rate.
- No Quick Rate Support Seen ............ as analysts are
not optimistic that all-cargo airlines will be making a return to the Asian
trades any time soon. Predictions are that if a financial recovery does
occur in the region, it will not be before the end of the 3rd quarter 1999.
Many believe the problem became serious in late 1998 when an overabundance
of space on aircraft led various carriers to increase Transatlantic
freighter services, thereby drawing aircraft away from Asian trade lanes.
More, the situation could worsen in March when passenger carriers launch
even more Transatlantic services. Meanwhile, air freight rates to Europe
from North America are spiraling downwards as airlines battle to fill
capacity on their planes. On Transatlantic trades, rates of US$1 to US$.0.60
cents per kilo are becoming more common, with certain airlines reporting
rates of just US$0.40 cents per kilo on freight being transported to London.
Insiders say carriers are cutting rates at their own peril, with the worst
being on trades to Europe and the Middle East. Word is that British Airways
leads this trend.
- Well, At Least They're Talking ......... as American
Airlines & the pilots union have reentered talks centered on the
combining of pilot schedules between American and its recently acquired Reno
Air. Indeed, thousands of flights were canceled when American pilots
commenced a "sick out" on 6 Feb. snarling passenger & cargo
traffic until a U.S. District Court ordered the pilots to "get
well", under threat of US$10M fine against the union. American Airlines
had sought a temporary restraining order & damages from the pilots
union. The carrier said the unofficial action is illegal under the U.S.
Railway Labor Act which limits industrial action in the airline industry.
The pilots are demanding that American management expedite pay increases for
Reno Air's pilots, putting them on a par with those of American' existing
flight staff, but American says any changes will be implemented only when
the Reno purchase and takeover has been fully approved in about a year's
time. Losses from the 10-day sick-out are estimated to have cost American
- Expect Euro Delays .......... as in the next few weeks
air traffic will be hampered by a rearrangement of air routes by
Eurocontrol, the body that manages European air traffic. Especially above
France air routes will be changed, with a view to the creation of additional
capacity for the busy air traffic in the direction of southern Europe. Both
pilots &traffic controllers will have to get accustomed to this new
situation. The airlines have been warned that from now until mid March, 30
to 50 percent of the flights above northern France, Switzerland, Belgium,
The Netherlands & part of England may face delays.
- U.S. Air Fees Up ............ as the proposed White House
budget for the FAA includes new aviation tax & fees even as the U.S.
Aviation Trust Fund is expected to show a US$6.8B surplus by Sept. 30. The
budget proposal includes provisions for an airport construction tax &
air traffic control user fees. U.S. states & cities would be allowed to
add a tax of US$3 to US$5 per ticket, per stop. The tax is supposed to
finance airport construction and renovation but it is strongly opposed by
passenger groups & airlines because it could be levied by each airport
where a passenger stops, even if it is to connect to another flight or as
part of an en-route stop mandated by the airline. The budget also includes
US$1.5B in user fees for air traffic control. The carriers would pay for the
fee but they will undoubtedly be reflected in cargo & ticket prices.
- Airborne Faces HazMat Training Hit .......... as the
carrier & 3 companies it uses to handle HazMat face US$210,000 in fines
for allegedly failing to train their employees properly. FAA proposes a
US$100,000 civil penalty against ABX Air Inc., a wholly owned subsidiary of
Airborne, for allegedly failing to train 4 cargo handlers & a
supervisor. A 2nd fine of US$80,000 is for contractor Hilson & Fergusson
Inc. of Fernandina Beach, Fla., alleging that it failed to train and test
its HazMat employees & keep appropriate training records. A 3rd fine of
US$20,000 is proposed for contractor Canuck Industries Inc. of Bellingham,
Wash. The FAA alleges that two employees who worked as drivers for Airborne
Express did not have HazMat training. The agency proposed a 4th fine of
US$10,000 for contractor Motor Air Dispatch of Murfreesboro, Tenn., alleging
that it also failed to provide one of its employees, a driver for Airborne
Express, with HazMat training.
- FedEx Shenzhen Delay ........... as start of an air cargo
service to Shenzhen's Huangtian Int'l airport has been postponed for the 2nd
time. FedEx pledged the new route would be operational by the end of 1999.
- Emirates Is Spinning ............ as it received 4 major
awards in a single week this month. First came the overall global
"Airline of the Year 1999" title at the prestigious OAG Awards
(Official Airline Guide) which featured 18 airline categories .........the
3rd time & the 2nd year in a row that Emirates has won this title.
Emirates was also named Best Middle Eastern & Indian Subcontinent
Airline, a category it has won consistently since 1988, less than 3 years
after starting operations. The day after the OAG awards, Emirates was named
"Best Airline to the Middle East" at the Travel Weekly Global
Awards 1999, voted by readers of Travel Weekly, one of the UK's premier
travel trade publications. Emirates has won this title every year since
1994. Next came the title of "Best Business Airline Middle East"
at the Business Travel World Awards 1999, voted by readers of the monthly
magazine for business travel professionals. Emirates has won nearly 170
awards in its 13-year history. What a week!
- A Positive Asia Sign? ............ as Singapore Airlines,
Asia's 4th largest, has formally signed an agreement for an order for up to
10 long range A340-500s, a signal that Asia's ailing airlines might be about
to turn a corner. The order is the first from a leading Asian airline since
mid-1997, when the Asian economic slump crimped demand and led Cathay
Pacific, Malaysian Air & Garuda Indonesia to defer or cancel aircraft
- Arrow Is A Fine Purchase ............ as the Miami-based
all cargo carriers are to combine after Fine Air bought Arrow Air in a
US$115M deal with Arrow's parent, Int'l Air Leases of PR Inc. Fine Air will
acquire Arrow's fleet of 13 Douglas DC-8s & 4 Lockheed L-1011 TriStars.
Arrow will continue to operate as a separate airline & existing
management will remain in place.
- Swissair Will Speak French .......... as it will purchase
49% of AOM, after Air France the 2nd carrier of France. The remaining 51%
will be in the hands of French investment group Marine-Wendel/Groupe Alpha.
- Our PAL Struggles On .......... as Philippine Airlines
will attempt to survive its record loss of US$260M between March &
December 1998. In an attempt to offset the loss for the period the carrier
will sell off its engineering & maintenance operations. Funds
accumulated from the sales will go towards reimbursing creditors and
avoiding the airline's termination. Presently, PAL is searching for an
investor to inject more cash into the beleaguered airline.
- Fewer E-Mail Addresses At Air Canada ............ as it
will cut back on the work force this year, with 450 jobs set to go. The line
has already eliminated 1,275 employees in an effort to decrease costs.
- UPS Wants In China ........... as negotiations between
the U.S. & China opened last week on a new aviation treaty, UPS is
pressing both sides to increase the number of cargo carriers permitted to
fly into China. "Opening the Chinese markets to greater competition for
air cargo companies will increase jobs, provide customers with greater
choices and ensure fair competition among carriers," UPS Chairman &
CEO Jim Kelly said. "The U.S. &China should work together to come
up with a bilateral agreement that creates the greatest amount of
competition between cargo carriers, which will ultimately benefit the
consumer through greater choices and lower prices." Currently, only
FedEx has rights into China. While UPS does not fly directly into China, it
serves the country through its agent partnership with Sinotrans since 1988
and just recently expanded that agreement to include UPS branded service to
21 cities in China.
- Show Them The Money! ............. as the freight
forwarder association in Penang, Malaysia has issued a new directive which
stipulates that consignees are now required to pay all shipment charges
prior to the issuance of export air waybills or to starting import clearance
operations. According to the association, the policy change was implemented
in response to the "Asia Flu" and financial difficulties for its
members, who are having problems generating extra funding from banks.
- Spain's The New "One" ........... as Spain's
Iberia Airlines has joined the "Oneworld Alliance, the 1st airline to
do so since the group was formed in Sept. 1998. With Finnair is set to join
next, the alliance now includes are American Air, British Air, Canadian Air
(Canadian Cargo), Cathay Pacific &Qantas.
- Stars Down Under .......... as Ansett Australia & Air
New Zealand will join the Star Alliance on March 28, 1999.
- American Gets Some Dynamite ............. as it has
entered on a 'Airline Service Level Agreement' with TNT, part of the TNT
Post group, provide TNT with guaranteed capacity, priority & connecting
schedules on American Air flights.
- Mercury Air Cargo Drops MIA ........... as Air Cargo it
will continue to offer cargo-handling services at Atlanta & LAX and
Montreal & Toronto, despite the resignation of president Steven Ritchie
and the sale of its Miami operation. JR Bouchard will take transfer from the
company's Canadian freight division to become president. An undisclosed
buyer is said to have purchased Mercury's cargo unit at Miami Int'l Airport.
Mercury Air Cargo, Inc. is a wholly owned cargo subsidiary of Mercury Air
- The Price Of Pay ........... as the FedEx Pilots
Association will ask members to pay higher dues to make up for hundreds of
thousands of dollars spent on threatened job actions & other work that
led to their 1st contract with Federal Express Corp. Plans propose an annual
budget of US$6M, or an average of US$1,667 a year for each pilot. Assn.
membership has reached 98%, the highest level ever among FedEx's 3,600
pilots. On Feb. 4, 1999, the pilots approved a contract after 5 years of
on-again, off-again negotiations, making them the only FedEx employees in
the U.S. represented by organized labor.
- Canada Up .......... as Canadian Cargo has announced a 5%
Air Navigation Services Surcharge on shipments effective March 31, 1999. The
surcharge is intended to recover some of the costs of the Air Navigation
System which has recently been levied on the air cargo industry. This is in
direct response to the implementation of the 2nd phase of NavCanada's
chargeback for Air Navigation Services, which has added costs to the air
cargo industry. Previously, the cost of providing Air Navigation Services in
Canada was funded by passengers through the collection of the Federal Air
Transportation Tax. "Navigational charges are now assessed on the basis
of aircraft operation," said John Delaney, Director, Cargo Services.
"As such, Canadian Cargo is being charged additional costs for the
provision of these navigational services. Canadian Cargo is unable to absorb
these costs and therefore must pass them along to our customers, the
ultimate users of navigation services." The surcharge will be
calculated as a percentage of the chargeable weight rate charge, subject to
a $1 minimum, payable in Canada on all shipments either originating or
terminating in Canada.
- FedEx Says Drop It! ........... as an enhanced Internet
"Dropoff Locator" is announced. FedEx customers can now locate the
nearest package dropoff facility simply by entering an address or nearby
intersecting streets. The locator will display a detailed map with
navigational features, and a legend indicating whether the locations are
staffed, self-service or FedEx Authorized ShipCenters. The Dropoff Locator
is connected to more than 44,000 U.S. dropoff locations & provides
information on the five closest listings.
- Lufthansa Gives New Partner A Chilly Welcome
............... as California based Envirotainer & Lufthansa have teamed
in the fields of sales, training & handling of temperature sensitive
products. Lufthansa will employ Envirotainer's insulated & temp
controlled ULDs alone in the transportation of temperature-sensitive
freight. Devised by Lufthansa & built by Envirotainer, the two have
already launched the new "Coolbox" container and will soon
announce "Container 2000", a unit-load mechanism (ULD) with the
ability to handle a variety of high-value temperature-sensitive items, such
as fine art, perishables, and pharmaceuticals. Learn more about ULD's from
The Freight Detective:
- Aging B-727s Probed ........... as 1,000 older Boeing
727s must receive inspections after fatigue cracks were found in the cabins
of 4 such planes operating in the U.S. commercial fleet. The FAA, which
issued the airworthiness directive, said the finding was an outgrowth of the
aging aircraft program begun with the aviation industry in 1988. The order
applies to Boeing 727-100, -100C, -200, -200F, & 727C aircraft,
airplanes that have an engine on each side of the tail cone and one built
into the tail itself. The average age of the aircraft is 25 years, or about
38,000 flight cycles. Operators must perform repetitive visual inspections
of portions of lower skin lap joint -- an area where overlapping sections of
the plane are joined -- within 15 days or 50 flight cycles, whichever occurs
1st. Domestic carriers using the affected planes are American, Continental,
Delta, DHL, Express One, FedEx, Kitty Hawk, Northwest, Ryan, TWA, United,
UPS & US Airways.
- There May Be Empty Seats That Day........... as according
to a recent survey most Asian airlines are confident they will be flying on
New Year's Day despite the Y2K threat. Fourteen out of 20 respondents, or
70% of the carriers, said they would "definitely" be flying on
January 1, 2000, another 20% answered "probably", one airline
"maybe" and Indonesia's Garuda replied "probably not".
We're staying home.
- The Bathrooms Won't Be Removed Until Next Year
........... as Delta Air is cutting costs by taking sandwiches out of so
called "SkyDeli" bags on 140 flights. The line will replace them
with crackers & cheese, or carrots & dip. The bags are offered to
coach passengers as they board flights at certain times of the day. 1st
Class fliers also will be affected. Delta is downgrading full meals to
snacks in 1st Class on 80 flights. The cutbacks are expected to save US$14M
annually, following Delta's US$1 BILLION profit in 1998. Give back the
- Maybe They Just Wanted A Sandwich? ............. as
incidents involving unruly passengers on aircraft have soared 400% since
1995, with air rage seen triggered partly by cramped seating, low oxygen
flows & excessive drinking, according to the Int'l Air Transport Assn.
(IATA). IATA says there are now about 2,000 cases of abusive or generally
disruptive behavior per year, but this figure includes such nonviolent
incidents as smoking in the toilet.
- Suggestion To Delta In Lieu of Sandwiches? .............
as more than 3,000 zrats have been caught at Malaysia's multibillion dollar
Int'l airport since it opened in June 1998. State of the art Kuala Lumpur
Int'l Airport has been plagued by the pests due to its location on former
oil palm plantations. Reports of rats scurrying around the US$2.3B airport
have led eateries to keep tight lids on garbage bins & prompted the
government to rehire rat-catchers earlier this month after airport
operations were disrupted. A Malaysian Airlines flight to Perth, Australia,
was forced to turn back when a rat was spotted in the plane's 1st-class
cabin. Along with posing health risks, rats sometimes nibble on electrical
- M/T New Crissa ....... burning off the U.S. Oregon Coast
- New Final Rules, But FMC Still Listening ......... as its
new regulations for service contracts & carrier agreements under the new
U.S. Ocean Shipping Reform Act are complete, but will allow additional
public comments until April 1. The FMC does not expect major changes to its
newly adopted rules, since carriers & shippers have voiced support for
the service contract rules. Under the new rules, carriers will file
contracts with FMC via Internet-based systems beginning May 1, when the new
shipping law takes effect. The Automated Tariff Filing &Information
(ATFI) system will be phased out over several months. Here is a summary of
the 1st 3 new rules:
* Docket 98-21: Miscellaneous Amendments to Rules of
Practice & Procedure. This final rule makes changes to the rules of
practice necessitated by OSRA, including special docket procedures. Also, it
will reorganize FMC regulations in the Code of Federal Regulations (CFR-46)
* Docket 98-25: Amendments to Regulations Governing
Restrictive Foreign Shipping Practices, & New Regulations Governing
Controlled Carriers. The final rule updates & clarifies rules
implementing section 19 of the Merchant Marine Act, 1920, sections 9 and
13(b)(5) of the Shipping Act of 1984, and the Foreign Shipping Practices Act
of 1988 to reflect changes made by OSRA. This rule significantly strengthens
the FMC’s authority over controlled carriers.
* Docket 98-27: Marine Terminal Operator (MTO) Schedules.
The final rule will implement new FMC regulations governing the publication
of marine terminal tariffs. FMC Consideration of Public Comments: http://www.fmc.gov/Pressreleases/PR99-04.htm
Read The New Final Rules Effective 1 May 1999:
- Sea-Land's Split Personality? ............ as the U.S.
carrier is set to be split into 3 divisions, according to Lloyd's List and
confirmed by CEO John Clancey. In an internal memo to staff Clancey says
that he wants to split Sea-Land into a terminal company, a domestic shipping
line & an international liner operator. It may still take several months
before this plan will become reality. It is clear that the split into 3
divisions will make it easier to sell components or share with partners. In
recent weeks there was a great deal of speculation about the sale of
Sea-Land to Maersk.
- POL Off U.S. Radar ............... as Polish Ocean Lines
has suspended its transatlantic services. A spokesman for POL in Gdynia,
Poland, said the line's U.S. East Coast/Gulf Coast/North Europe and the
Canada/North Europe activities were halted last Wednesday. The reason this
action has not been stated, but the decision follows a substantial drop in
transatlantic freight rates, increased capacity, & virtual
disintegration of the Trans-Atlantic Conference Agreement, of which POL was
a founding member. Now that the POL- Atlantic division is being shut down,
all employees & agents are indeed out of luck. However, POL will
continue running all other existing services (inter- European, Europe-Asia ,
etc.). POL provided transatlantic services by chartering space on vessels of
Mediterranean Shipping & BOLT-Canada. POL had chartered space from
Atlantic Container Line until last month. For the past several years, POL
has had none of its own ships in this trade.
- Maersk Gets Safmarine ........... as a deal for US$240M
is struck for Safmarine's liner shipping arm for $240 million, signaling the
breakup of the diversified South African shipping group. Safmarine operates
about 50 vessels and 80,000 containers in several trade lanes. Safmarine
will join A.P. Moller/Maersk as an independent unit, but Maersk &
Safmarine will coordinate their liner networks.
- FMC Increases Bond Requirements ............... as
previewed last Dec. in The Cargo Letter , the Federal Maritime
Commission has voted to increase bonds of forwarders and
non-vessel-operating common carriers and requiring bonds for ocean
transportation intermediaries based outside the U.S. The actions were taken
in preparation for the new U.S. Ocean Shipping Reform Act, which takes
effect May 1. Forwarders' bonds will increase from US$30,000 to US$50,000.
NVOCC bonds will rise from US$50,000 to US$75,000, & ocean
transportation intermediaries based outside the U.S. will be required to
post US$150,000 bonds.
- Pirates More Murderous .......... as Pirates killed more
people on the world's high seas in 1998 than the year before, but the number
of attacks has dropped, says the Int'l Maritime Bureau. The modern
swashbucklers killed 67 crewmen last year, compared to 51 in 1997. Scores of
other people were assaulted and injured. There were 198 pirate attacks last
year, compared with an all-time high of 247 in 1997, according to the London
based bureau. The drop was due to measures taken by ship owners &
captains to keep their ships safer. ``The pirates are getting increasingly
violent,'' said the bureau's regional manager, Noel Choong, who compiled the
report. ``Years ago, they would steal the cargo, loot the ship's safe &
rob the crewmen. ``These days, the pirates are increasingly brazen. They
steal the entire ship & they kill the crew,'' he told The AP. Since 1991
the number of reported pirate attacks worldwide has nearly doubled. A total
of 15 ships were hijacked in 1998, mostly in S.E. Asia, where there are many
small islands that make ideal hideouts for pirates. Two months ago, pirates
killed all 23 crew members of the bulk carrier M/V Cheung Son sailing on the
So. China Sea, Choong said. Their bodies were weighted & flung
overboard. Days later, Chinese fishermen found 6 bodies, still bound &
gagged, snagged in their nets. Authorities in China arrested 7 suspects, but
the ship, under a Panamanian flag, remains missing. A crisis.
- Murderous Pirates Arrested .............. as 3 South
Koreans have been arrested at the Port of Inchon on charges of involvement
with hijacking the Japanese cargo ship M/V Tenyu, western port of Inchon.
The 2,600-ton Tenyu, disappeared Sept. 27 after leaving an Indonesian port
with a cargo of aluminum worth about US$4.3M. Five months later, the ship
was found in Zhangjiagang port in Jiangsu province near Shanghai, China
bearing a new name, ``Sanei-1,'' with a Honduran flag & 16 Indonesian
crewmen on board. Before the hijacking, the ship had been piloted by a South
Korean captain, Shin Young-ju, & chief engineer, Park Ha-joon, and was
manned by a crew of 12 Chinese sailors. All of the crewmen remain missing
& were feared killed by hijackers. Police said Lee admitted purchasing
the ship & the aluminum from 2 Chinese-Indonesians and selling them to a
Chinese company in early October, shortly after the ship had disappeared.
- NVOCCs Unite ............. as two shipping associations
representing non-vessel-operating common carriers have agreed to exchange
info & cooperate under the new U.S. Ocean Shipping Reform Act. The
35-member strong North Atlantic Alliance Assn. & the 25-member United
Forwarders of Rotterdam, have said they will pool information &
commercial efforts to negotiate global service agreements.
- Blasts Proposed COGSA '98 ............. as the BIMCO
secretary general, Finn Frandsen testified before the U.S. Senate this
month, protesting the proposed U.S. Carriage of Goods by Sea Act of 1998
(COGSA '98). Mr. Frandsen said "the U.S. must honor its position the
world's largest trading nation, to act responsibly and actively discourage
unilateral action in the conduct of international trade." Although
BIMCO acknowledges that the proposed COGSA revision draft contains a number
of improvements, certain elements constitute a radical departure from the
generally accepted structure of Int'l maritime law. "In a worst case
scenario," said Mr Frandsen, "the U.S. initiative could be
considered by other nations as a protectionism measure, which may
conceivably lead to national or regional-based counter measures. Such a
scenario would result in a greater fragmentation of Int'l transport law to
the ultimate detriment of commercial players & world trade." Read
the proposed COGSA '98 http://www.cargolaw.com/navigator.html
- NAA Needs Validation ........... as the new North
Atlantic Agreement is asking the U.S. FMC to ratify it as a replacement for
the Trans-Atlantic Conference Agreement (TACA). The agreement would involve
all 19 main lines on the North Atlantic trades apart from Mitsui OSK Lines
& Evergreen. Members of the North Atlantic Agreement will jointly set
rates, although the group's primary function will be to permit member
carriers to participate in collective activities, for example, terminal
operations, common bills of lading, & equipment interchanging. The
agreement adds that it will be more adaptable than the rate-setting TACA,
whose influence has dwindled somewhat in the past few years.
- Another L.A. First ............. as The Port of Los
Angeles welcomed more than 1 million cruise passengers at its World Cruise
Center in 1998, a record for the busiest cruiseport on the U.S. West Coast.
Larry A. Keller, executive director for the Port, stated:
"Unprecedented cruise & cargo business last year is testament to
the Port of Los Angeles' tremendous diversification and capability. There is
no other seaport in the U.S. that can match our expertise for attracting and
serving the world's cruiseships & cargo vessels." Last year the
Port announced conceptual plans for a US$30M modernization and expansion of
the World Cruise Center that may include a new cruise terminal building.
- TSA Hike .......... as the Trans-Pacific Stabilization
Agreement (TSA) will conference in March at Tokyo & in April at Los
Angeles on the subject of proposed rate restorations. So far, the TSA has
said it will go ahead with the plan to restore freight rates from 1 May
1999. Rates for freight headed for the U.S. west coast will go up by at
least US$900 per FEU and by $1,000 on FEUs to inland & other locations.
The proposal also includes the collection of the rate hikes as a terminal
handling charge (THC). While the THC is not charged in Japan, the lines say
they will begin collecting from May 1. However, Japan will see a peak season
surcharge which has already been enforced by the TSA in other Asian
destinations. The surcharge will involve a hike of $300 per FEU, to be
implemented between June 1 & Nov. 30 1999. It will apply to tariff &
service contract rates on all freight moving out of Asia, including those
from the India & Japan.
- FESCO Box Pump ............. as a hefty surcharge on
shipper-owned containers carried from the U.S. to Asia was imposed by FESCO
Russian Pacific Line on February 12. Shippers using their own or leased
boxes are being charged an additional US$300 per 20 foot container, US$450
for a 40 foot box, & US$500 per reefer. Justifying the increase, FESCO
said each of the shippers' containers means one of its own idle &
unseaworthy shipper owned containers could cause damage and put crew lives
at risk. FESCO is also demanding a letter of indemnity where shipper-owned
equipment is used. Shippers & forwarders have been leasing containers
cheaply in the U.S., sending them to Asia and shipping them back with cargo
to the U.S.
- ACL Makes A Taxing Move ............ as Atlantic
Container Line is planning to move its HQ from Sweden to the Netherlands to
take advantage of the tonnage tax regime in that country.
- Contship - FESCO Party Off? ........... as the proposed
ship-sharing plan of Contship Container Lines & FESCO's FANAL service on
the North America/Australia/New Zealand/Islands trade, has not started as
announced last September and appears to be off. A spokesman for Contship
said FESCO was unhappy about the acquisition of West Coast operator
Australia New Zealand Direct Line by Contship's parent, CP Ships. The
original plan had been for FANAL to swap some of its West Coast slots for
some of Contship's southbound- only U.S. East Coast space. In the meantime,
Contship is buying 70 slots per sailing on the ships of ANZDL, its new
- New Inchcape Owner ........... as Inchcape Shipping
Services (ISS) has announced the Int'l private equity group, Electra
Fleming, is to take over as its new owner. ISS is the world's largest
independent shipping agency network, providing ship support services for
over 30,000 vessels & handling in excess of 1.5M containers each year.
The transition to new ownership will be seamless & the business will
remain a single entity, with name, network, management, &organization,
- FESCO Goes To SEA ........... as it will shift its Puget
Sound terminal operations from Tacoma to the Seattle terminal of sister
company FESCO Australia North America Line (FANAL).
- Sea-Land Cracked .............. as containership M/V
Sea-Land Innovator's westbound transpacific voyage was interrupted last week
when a 15-foot-long crack was detected in the vessel's hull. The 2,800-TEU
Sea-Land Innovator, en route to Dutch Harbor, Alaska, when the crack was
discovered, was brought back to Tacoma for cargo discharge. The vessel then
was moved to a shipyard in Vancouver, B.C., for further inspection.
- Buenos Aires Alternative? ........... as a new container
terminal at Zarate, on the River Plate about 100 km up stream from Buenos
Aires, could be approved next month and become operational by late 2000.
About half the site has already been developed by "Murchison Estibajes
y Cargas" as a car terminal. The initial capacity will be 110,000 TEUs
a year, but this will soar to 500,000 TEUs when fully developed. A large
proportion of the throughput is expected to be diverted from Buenos Aires
which currently handles 75% of Argentina's container exports. But Zarate, on
the northern side of Buenos Aires and close to the Pan-American Highway as
well as a railhead also has significantly better infrastructure connections
than Buenos Aires.
- Ships Schedule OnLine .......... as the interactive,
global version of "ComPair Schedules", based upon a format
developed by American Shipper magazine, is now available to exporters,
importers, forwarders, NVOCCs, ports & shipping lines for free beta
testing. The system is impressive and includes schedules for most lines
& lanes as well as a vessel registry, carriers profiles and other
- Big Box Blast By Boat Believed Boffo ........... as
California United Terminals (CUT) broke the productivity record by making
862 container moves during a single 8-hour shift on January 15. Three
20-person gangs worked 3 cranes unloading/loading the 5,500 TEU, M/V Hyundai
Freedom. The moves eclipsed CUT's former record of 837 moves. The total
averages out to nearly 36 moves an hour per gang. The typical average is
about 25 moves an hour, with 30 an hour considered a very excellent speed.
- E Seals To Combat Theft ............ as terminals at Hong
Kong, Oakland & Rotterdam are taking delivery of Singapore-based
Electronic Seal Pte Ltd's Electronic Container Seal (ECS) system. The
electronic tamper-proof system provides a method of combating theft &
tampering with container cargo. Once the seal is applied, its code number is
checked and then stored in a handheld reader. This information is then sent
via an electronic data interface (EDI) to terminals at various points along
the shipping route. A base reader scans the information from the seal and
matches this to the data supplied by the shipper. Any discrepancy alerts the
port operator to the problem. The base readers are housed in poles that scan
the containers as they move past. The company says that the new system
allows for 100% verification. It now plans to put the technology through a
process of international standardization.
- Keeping It Clean ............ as a floor liner for 20'
& 40' containers has been introduced by Securicor Omega Container
Logistics. Called the "Proliner", the material is made from
polythene, has double-sided tape for easy installation & is
biodegradable. The material is especially useful for carriage of food or
delicate materials where it forms a protective membrane between the
container floor, which maybe dirty or contaminated & the freight.
- L.A. Hits Record Throughput ........... as Port of Los
Angeles' containerized business hit a record-setting 3.4M TEU's in 1998 -
the most in the history of the port. Import traffic totaled 1.7M TEUs in
1998, a 17% increase over the 1.5M TEUs handled in 1997. Inbound container
volumes handled in the months of May, June, August, October & November
were the greatest in the port's history. This said, L.A. next door neighbor
Port of Long Beach has an even larger throughput, making So. California THE
giant of the Americas. Port of Long Beach had volume of 319,312 TEU in the
month of Jan., a 10.8% improvement over Jan. 1998.
- Throughput: Singapore set to become the world's busiest
container port, regaining the position it lost to Hong Kong in 1992, after
throughput topped 15.1M TEUs last year. ...... Despite the prevailing
economic climate, 1998 saw the movement of containers between Japan &
China hit the record 1M mark, including feeder cargo as well as the direct
movement, up 6% on 1997's figure. The Shanghai route accounted for 30% of
the trade, up 9% in terms of TEUs. The Qingdao lane was up 19%. .... Korea's
Pusan Port, overall, saw its 1998 volume increase by 9.7% to 5.75M TEU from
the previous year's figure. France's Le Havre hit 1.32M TEU in 1998, an
increase of 11.4% on 1997's outcome. Port of Tacoma handled 1.156M TEUs of
containers in 1998, virtually even with the 1.158M of a year earlier.
- End Of A U.S. Navy Tradition ............. as the last
U.S. Navy plane flew out of Antarctica on 17 Feb. ending an American Naval
tradition of polar service stretching back more than 160 years. ``Operation
Deep Freeze,'' the mission to supply American & New Zealand Antarctic
bases on the Ross Sea coast, was turned over last year to the U.S. Air Nat'l
Guard detachment operating out of Schenectady, N.Y. The Navy phased out its
operations over several years to cut costs, finally turning over the last of
them to the Air National Guard, which also supports U.S. military bases in
Arctic Greenland. The U.S. Navy sent its 1st expedition south in 1838, when
Lt. Charles Wilkes explored about 1,200 miles of the Antarctic Peninsula.
Here are our suggested world wide web sites of the week for your business,
your information and your amusement ...............
Annual Connecticut Maritime Association Virtual Conference
............ is back online for Shipping '99 Conference to be held in Stamford,
CT, March 22 - 24, 1999. The CMA Shipping '99 Conference in Stamford will have
highly respected Industry leaders as speakers & panelists.
The Virtual Conference
Cargo 2000 Program ............ see the article from Air
Cargo World Magazine.
The Int'l Air Cargo Assn. (TIACA) .......... website has
Eagle USA Airfreight ........... has announced the expansion
of its Internet capabilities for its customers through the introduction of an
extranet client/server application software program named "E@GLE
ADVISOR". Take a test drive.
Air France Cargo
Trailer Bridge ......... a new site for the company with
sailing schedules for Puerto Rico and the "Atlantic Highway". Trailer
Bridge's founder and majority stockholder is Malcom P. McLean, the
transportation pioneer, who invented containerization forty years ago.
World's First On Line Transportation Auction ......... great
if you speak Dutch.
Barge Phone ........ an "Onboard telephone guide"
with almost 9000 mobile telephone numbers of Dutch, German, French, Belgian
barges. Again, it helps to speak Dutch.
Africargo ......... the new website.
- Our Warren S. Levine Article
-- by Warren S. Levine, for The Cargo Letter
SEATTLE, Feb. 28 -- U.S. National Security organizations, including the
Pentagon and the State Department, stopped dead the export of a US$450M
communications satellite by California-based Hughes Corporation to Singapore
last week, citing national security and concerns regarding the export of high
The buyer, Singapore-based Asia Pacific Mobile Telecommunications, is
reported to be 51% owned by organizations within the People's Republic of China,
some of which are represented by members of the Chinese military.
The satellite was reported to have been used to bolster Asia's wireless
telephone networks. However, reverse-engineering the technology could have
endangered US security by giving up valuable information about American ground
station and satellite technology.
At the same time, the State Department was about to reject another license
for Hughes to export a satellite to be launched from China. US technical
assistance, needed to ensure a successful launch, might have opened up new
ballistic missile technology to the Chinese, according to a Department of
Chinese officials were quick to complain about the ruling, Foreign Ministry
spokesman Zhang Qiyue, said, "We ask the United States to correct its wrong
decision," and characterized the ruling as "entirely
There are currently contracts in place between the US and China for China to
launch 14 satellites for the US over the next five years, but each of those is
reported to have been cleared by the proper authorities.
China's launch program has been struck with problems in the past. Probably
the worst accident killed some 80 people in a small town in Sichuan Province
just before Chinese New Year, on February 15, 1996, when a Long March 4 rocket
carrying an American television satellite crashed into the village 30 seconds
into its flight. The announcement of the fatal crash was delayed for a month by
Beijing so as not to ruin the festive atmosphere on the eve of the New Year's
U.S. Secretary of State Madeleine Albright is in China as of this writing to
discuss many issues with the Chinese, including trade, human rights violations
and the possibility of WTO membership for China.
Clinton administration officials stressed that the prohibition of the export
did not indicate a fundamental change in US-China trade, however exporters are
warned to ensure their total compliance with Export Administration regulations
regarding the shipment of anything even remotely high-tech to the PRC or
companies owned by entities in China.
[an error occurred while processing this directive]