The Cargo Letter

THE CARGO LETTER [337]
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 .......... https://cargolaw.com

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The Freight Detective ........ https://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

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

1. Freight Forwarder Trade Briefs

• 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.
  http://www.fritz.com
• 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 company.
• 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 year.
• 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.
  https://cargolaw.com/d2.customs.html
• 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.

2. The Cargo Letter Financial Page

• 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.
  http://www.multexinvestor.com/magazine.asp?ref=newbuys19990218.html
  Airborne Freight Corp. recent financial news
  http://multexinvestor.com/Content/TickerSearch.asp?Ticker=abf
• 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.

OUR "B" Section: FF World Air News

3. Freight Forwarder World Air Briefs

• 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 US$150M.
• 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 orders.
• 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 Group, Inc.
• 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.
  http://www.fedex.com
• 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:
  https://cargolaw.com/d2.airports.html
• 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 sandwiches, NOW!
• 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 wiring!

OUR "C" Section: FF World Ocean News

4. Freight Forwarder World Ocean Briefs

• M/T New Crissa ....... burning off the U.S. Oregon Coast ........ https://cargolaw.com/New_Carissa_Ship_Disaster.html
• 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) Parts 500-588.
  * 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:
  http://www.fmc.gov/FinalRules.htm
• 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 [335], 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 https://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.
  http://www.portla.com
• 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 sister company.
• 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, intact.
• 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 features.
  https://www.compairdata.com/compair/secure/Welcome.asp
• 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.

OUR "D" Section: FF in Cyberspace

5. The Cargo Letter "Cyber Ports Of Call"

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

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.
Program Details
http://www.cmaconnect.com/shipping99.html
The Virtual Conference
http://www.cmaconnect.com/vc/

Cargo 2000 Program ............ see the article from Air Cargo World Magazine.
http://www.aircargoworld.com/archives/feature3_oct.htm

The Int'l Air Cargo Assn. (TIACA) .......... website has been updated.
http://www.tiaca.org

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.
http://www.eagleusa.com

Air France Cargo
http://www.airfrance.fr/en/compagnie/cargo/index.html

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.
http://www.trailerbridge.com/

World's First On Line Transportation Auction ......... great if you speak Dutch.
http://www.vaart.nl/werf/veiling.htm

Barge Phone ........ an "Onboard telephone guide" with almost 9000 mobile telephone numbers of Dutch, German, French, Belgian barges. Again, it helps to speak Dutch.
http://www.vaart.nl/telematica/boordtel.htm

Africargo ......... the new website.
http://www.africargo.com

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

-- 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 technology.

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 Defense spokesman.

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 unjustifiable."

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 celebration.

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.