The Cargo Letter
THE CARGO LETTER 
Air & Ocean Freight Forwarder - Customs Broker News
31 October 2000
Good Tuesday Morning and Happy Halloween 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". For the 1st time in years -- you received no The
Cargo Letter for September 2000 -- a result of our obligation to present a paper
before the FIATA at Rotterdam last month. Now we must try to catch you up on
what has occurred in the world of Int'l transport over the last 60 days. Join
with us in this rather BIG job!
To help you find what you need -- FAST -- there's now a transport search
engine installed at our www.CargoLaw.com
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
Michael S. McDaniel, Editor & Publisher, Countryman & McDaniel,
forwarder/broker attorneys at LAX.
INDEX to The Cargo Letter:
OUR Top Story
1. President Clinton Approves Montreal Convention
* Presentation To FIATA
OUR "A" Section: Trade, Financial & Inland News
2. Freight Forwarder Trade Briefs
3. The Cargo Letter Financial Page
OUR "B" Section: FF World Air News
4. Freight Forwarder World Air Briefs
OUR "C" Section: FF World Ocean News
5. FF World Ocean Briefs
6. The Cargo Letter Cargo Damage Dispatches
* Back By Popular Demand
OUR "D" Section: FF in Cyberspace
7. The Cargo Letter "Cyber Ports Of Call"
OUR "E" Section: The Forwarder/Broker World
8. New U.S. Transport Related Legal Cases
The big event for the Int'l forwarding community this year was the FIATA
Congress 2000 (Int'l Federation of Freight Forwarding Associations) held at
Rotterdam, The Netherlands, Sept. 25-29. The Advisory Body Legal Matters (ABLM)
received a presentation by Michael S. McDaniel, Esq. of The Cargo Letter which
announced approval of the Montreal Convention by President Wm. Clinton on Sept.
3 2000, and concurrence by the European Commission three days later. The White
House has now sent the Montreal Convention to the U.S. Senate for it's advice
The Montreal Convention will replace the Warsaw Convention in due course and
contains many features which will revolutionize the air cargo industry. These
include adoption of all cargo advancements now contained in Montreal Protocol 4.
To acknowledge the truly intermodal nature of modern air cargo practices, a new
Article 18 of the Montreal Convention proposes that all modes of carriage would
be deemed have been by air -- and thus covered under the Montreal Convention --
if the contract of carriage reflects only intended movement in the air mode.
The full text of Mr. McDaniel's remarks, along with comments of The White
House and complete tutorials for use of the Montreal Convention & Montreal
Protocol 4 are now Online. Please note the special "Study Guides"
which have been added for training purposes. http://www.cargolaw.com/presentations_montreal_con.html
Complete Review of Montreal Protocol 4 -- with "Study Guides." http://www.cargolaw.com/guides_new_law.html
- WTO Says U.S. Trade Law In Violation ............ as the World
Trade Organization Appellate Body said a 1916 U.S. antidumping law violated
WTO rules in a final ruling released last month. The ruling upheld 2 earlier
dispute settlement panel findings. Under the 1916 law, U.S. firms could
claim damages from foreign firms accused of selling their products under
market prices (dumping) in the U.S. market. While the U.S. Trade Rep.
Charlene Barshefsky has questioned the Appellate Body's reasoning, the EC
called it a "clear-cut condemnation" of U.S. antidumping
practices. Barshefsky responded to the ruling by saying, "We believe
the panel & Appellate Body should not have assessed the 1916 Act under
WTO antidumping rules because it is more akin to an antitrust law than an
antidumping law." In addition to overturning the 1916 law, the WTO also
ruled that under global trading rules, import duties are the only
permissible remedy to confirmed cases of dumping. While the WTO gave the
United States a 1 Oct. deadline to revise its legislation, the WTO's ruling
does not affect the 1930 Tariff Act which has been defended successfully
before the trade body in the past and is most commonly used by the U.S. to
pursue allegations of unfair pricing.
- Saudi Arabia Nearer WTO ......... as John Weekes, the chairman of
the working party on Saudi Arabia's accession to the WTO & former
Canadian Ambassador to the WTO, said on 17 October that it appears likely
that Saudi Arabia will become the trade body's 141st member by the end of
2001. However, several obstacles still exist, including bilateral trade
agreements with the U.S. & the EU. The U.S. wants Saudi Arabia to
eliminate tariffs on information technology, pharmaceuticals, &
chemicals and to lower significantly duties on agricultural products.
Additionally, the U.S. & the EU are asking Saudi Arabia to open its
banking, insurance & telecommunications markets to foreigners.
- China Also Closer ......... as it cleared one of the last hurdles
to WTO membership last month in a deal with Switzerland that opens China's
insurance market to 3 Swiss firms & cuts import tariffs for watchmakers.
With China's impending WTO accession, its State Administration of Foreign
Exchange is revising the exchange control regulations. The new regulations
will relax currency control on foreign-invested enterprises. All foreign
exchange settlement & remittance under the current accounts of foreign
enterprises will no longer be subject to official approval. The amendments
are expected to come into effect before the end of the year.
- Congres Approves ACE Funding - But.......... as U.S. Customs'
modernization effort took a big step forward last month when the House of
Representatives narrowly passed a bill that would provide US$130M for
development of the agency's future computer system. The US$30.3B
Treasury-Postal Appropriations bill passed the House by 212 to 209 vote. The
U.S. Senate passed legislation on Oct. 12 by a vote of 58 to 37. For several
years, Customs has been unable to secure funds to start building its US$1.4B
Automated Commercial Environment (ACE). The system is needed to replace the
agency's 17-year-old Automated Commercial System (ACS). Industry groups,
such as the Coalition for Customs Automation Funding, the Joint Industry
Group, National Customs Brokers & Forwarders Assn. of America and
American Assn. of Exporters & Importers, stepped up their lobbying
efforts on Capitol Hill during the past 2 years to encourage Congress to
fund ACE. The bill also contains US$123M for ACS maintenance & US$5.4M
for the Int'l Trade Data System, the future front-end system to ACE. Customs
plans to start seeking bids from private-sector systems developers this
month to build the future system. Development of ACE could start as early as
spring 2001. But President Clinton is expected to veto the Treasury-Postal
Appropriations bill, because it doesn't contain enough funding to
restructure the Internal Revenue Service, build new courthouses, &
enhance antiterrorism programs. Many of the bill's provisions, such as the
Customs automation funding, may have to be incorporated in a year-end
funding resolution. REMINDER: U.S. Customs Broker 2001 annual user fee is
due Jan. 19. The US$125 fee is assessed for each broker permit or national
permit held by an individual, partnership, association or corporation -- in
each broker district where the broker was issued a permit to do business.
- Disbursing The Dumping Fines ......... as the U.S. Senate
overwhelmingly approved the Agriculture Appropriations bill this month which
contained an amendment of the U.S. antidumping & countervailing duty
rules which the industry had opposed. The amendment lets the Customs
disburse revenues collected in anti-dumping or countervailing-duty cases to
the companies that filed the complaint & was opposed by the American
Assn. of Exporters & Importers and others in the industry, who said the
provision would have serious impacts on U.S. foreign trade relations and
"deserves the in-depth examination that the normal legislative process
provides," the AAEI said. Congress has rejected similar provisions in
the past. "The compensation provision conflicts with U.S.' trade
obligations under the World Trade Organization agreements, and will lead to
counterproductive new trade confrontations with U.S. trading partners,"
the New York-based association said. The AAEI also argued the provisions
could be considered "an actionable subsidy" under the WTO
Agreement on Subsidies & Countervailing Measures. It also violates the
WTO Antidumping Agreement. The association worries that this "provision
of monetary rewards to petitioners in an AD/CVD case will lead to the
proliferation of trade litigation & will undercut a key restraint on
frivolous action." The provision could also encourage the U.S.
government to create a new form of industrial trade policy to counter the
- New SED .......... as the U.S. Census Bureau has issued a new paper
shipper's export declaration for exports valued over US$2,500. The new form,
Census Form 7525-V, includes new, specific data blocks, such as carrier
codes, vehicle identification numbers & Haz Mat indicators. This info
has always been required by the agency, but did not have special blocks to
list it. Since some exporters & forwarders may have large stocks of the
former SED forms, Census has given the industry until April 1 to switch over
to the new form. Exporters & forwarders may print the new form onto
"buff" colored paper from Census' Web site (below). Meanwhile,
Census is encouraging exporters & forwarders to file their export data
through AES, or via the agency's free Internet link, AESDirect. http://www.census.gov/foreign-trade
- The Customs Show .......... as U.S. Customs will hold a major
meeting with the Int'l trade & transport industry in Washington on Nov.
30. Customs Trade Symposium 2000, will review the agency's programs &
future plans. The keynote speech will be delivered by Customs Commissioner
Raymond W. Kelly & presentations will be made by senior agency staff.
"Due to the expected attendance, registrations must be made online
& will be confirmed on a space available basis," said Customs,
anticipating a large number of attendees from around the country. Register
on line. http://www.customs.gov/trade2000
- Cybersmuggling ........ as U.S. Customs has opened a new center in
Fairfax, Va., to fight transborder crime conducted over the Internet. The
Customs CyberSmuggling Center was developed 3 years ago to investigate
Internet crimes involving Int'l transmissions of child pornography, tracking
weapons of mass destruction, money laundering, intellectual property
violations, and illegal importation of pharmaceuticals. The new center will
also provide training to other federal, state, local & foreign law
enforcement officials in computer & Internet investigations, and conduct
forensic exams of computer equipment.
- Customs Changes Course ......... as in letters to Customs
Commissioner Raymond W. Kelly, the American Assn. of Exporters &
Importers & the National Customs Brokers & Forwarders Assn. of
America strongly opposed Customs' new policy of publishing the names of
importers that violate U.S. import rules & the amount of penalties
assessed and collected from these firms. The list on Customs' Web site
provided the violator's name, initial penalty amounts & the amount
collected. Customs said it would publish the list semiannually, Jan.-June
& July-Dec. The AAEI's chairman, said in his letter that publishing the
list "is a direct infringement on Customs' confidentiality
obligations," and "is just bad policy." "It's a list
that draws no distinctions -- from minor technical violations to instances
of outright and egregious fraud," wrote Peter Powell Sr., president of
the NCBFAA. The published list showed that Customs assessed more than US$22M
in fines in the 1st half of 2000. After mitigation, the agency collected
US$13.4M during that period. The disparity between the fines assessed &
what Customs actually collected "reveal tragic flaws in Customs'
penalty assessment process," AAEI said. "A US$6M assessed penalty
that results in a mere US$27,000 collection is a blazing red flag that the
initial assessments are stratospherically removed from reality." In
response, last week U.S. Customs suspended its publishing of offenders.
- Mexican Customs Needs New Course .......... as contraband
merchandise in Mexico is raking in some US$32B in annual sales, more than 3
times Mexico's 1999 oil export revenue, & is hammering profits for
vendors of legal wares, the daily Reforma newspaper reported. Sale of
contraband has become such a lucrative business in Mexico that about 50% of
the textiles & clothing sold in the country is illegal, the report said.
Some 40% of the shoes and stationary, 32% of the toys & 14% of the
automobile tires are contraband. Dealers in contraband use forged documents
& deals with corrupt customs agents to smuggle the illegal merchandise
into Mexico, where they take advantage of Mexicans' increased spending power
in a recovering economy. The illegal goods account for about 20% of Mexican
imports in these sectors, Reforma said. Wow.
- China Customs Takes Electronic Course ........ as starting this
month Chinese customs officials have been able to use an electronic database
of import/export permits when examining & verifying cargo. The Ministry
of Foreign Trade & Economic Cooperation (MOFTEC) introduced the system
countrywide in a move that is widely expected to improve the government's
supervision of foreign trade. This brings to a culmination an agreement
first inked between the ministry & the General Administration of Customs
in 1998. In all there are 62 import/export permit issuing offices in the
country, which can now record information from permits they cancel.
- New Russian Customs Pact ........ as Russia & 4 other ex-Soviet
states have formed a new economic grouping with similar goals to the
European Union, although a Russian minister conceded a common currency was
not an immediate priority. The Eurasian Economic Union, signed into being in
the new Kazakh capital, Astana, by the presidents of Kazakhstan, Russia,
Belarus, Tajikistan & Kyrgyzstan, replaces an existing customs union
which was largely moribund.
- Linking The Koreas .......... as South Korea started rebuilding a
railroad line across the world's most heavily armed border late last month,
saying the new link will serve as an avenue for exchanges with isolated
communist North Korea and trade with fast-growing markets in China &
Russia. When completed by next fall, the railway, and a new 4 lane highway
running alongside it, will link the two capitals: Seoul, South Korea, &
Pyongyang, North Korea. The railway & highway will become the 1st direct
transport link between the Koreas since the 1950-53 Korean War & set a
new milestone in improving ties between the two Cold War foes. Until now,
the only link between the countries has been a winding, heavily guarded
two-lane road that stops at the truce village of Panmunjom, which serves as
the sole contact point between democratic South Korea & the North. A
steam locomotive whistled & rolled on a 66-foot rail line laid for the
ceremony. Steering the locomotive was Han Joon-ki, 73, who drove the last
train that ran on the cross-border line in late 1950, transporting military
equipment for U.S. troops fighting for South Korea. North & South Korea
still have to negotiate how the railway & highway will be used, but
Seoul officials expect them to be limited to cargo shipments at 1st.
- Linking The Chinas ......... as China & Taiwan plan to begin
direct connections at the end of the year, with commercial, transportation
and postal links between the Taipei administrated Kinmen, Penghu and Matsu
islands & the mainland. This move is seen as a step towards full
resumption of connections between Taiwan & the mainland, which will
remain "restricted to a reasonable degree" according to Taiwanese
Foreign Ministry officials.
- China Forwarders Link ......... as a new body has been set up with
a view to regulating & improving the freight forwarding industry. So far
430 companies have registered as members of the China Int'l Freight
Forwarders' Assn., which is to be a self-regulating, nonprofit organization.
The group has been set up to create better communication between forwarders
& the Chinese government, and to streamline the industry. President
& board chairman of Sinotrans, Luo Kaifu, has been appointed as the
association's 1st president.
- Getting Tough On Mil Movers........... as the U.S. Military Traffic
Management Command has imposed tougher standards on overseas moving
companies to improve the handling of Defense Dept. household goods. During
the past 18 months, MTMC has noticed an alarming trend of overseas moving
companies going out of business. "This results in carriers not paying
their agents, who in turn, hold shipments hostage because they have not been
paid," said Lt. Col. Nonie Cabana, MTMC's deputy chief of staff.
"This places unwarranted, unethical & unacceptable hardships on
property owners who become victims of carriers who do not pay their
bills." Under MTMC's new guidelines, overseas moving companies have 30
days to meet the following requirements >> * Provide MTMC with an
updated certified financial statements signed by the company official on the
carrier's Tender of Service Signature Sheet. >> * Acknowledge that the
firm agrees to abide by appropriate U.S. law (37 U.S.C. 406(I)), which
prohibits liens on Defense Dept.-sponsored household goods shipments. Moving
companies that fail to meet these standards will not be used pending a
Carrier Review Board action. MTMC has sent letters outlining its new
standards to over 200 moving firms, including the Household Goods Forwarders
Assn. of America conference in Anchorage. The agency is responsible for the
move of about 646,000 service personnel a year.
- Knock On Wood ......... as the U.S. Dept. of Agriculture's Animal
& Plant Health Inspection Service is requesting comments from the
industry regarding a draft report of its solid-wood packing risk assessment.
The agency is considering to amend its regulations on the importation of
solid-wood packing materials, such as crates, dunnage, pallets, spools &
packing blocks. APHIS said the rules are needed to reduce the risks of
introducing exotic pests into the US. "This draft pest risk assessment
will help us determine the level of risk associated with these importations
and if a change to our regulations is needed," said APHIS. The draft
assessment is available on the Internet. Comments may be submitted to the
agency through Feb. 14. http://www.aphis.usda.gov/ppq/pra/swpm
- Schenker Gets Gold ........... as it is named Official Supplier of
Customs & Freight Forwarding services for the Salt Lake City Winter
Olympic Games in 2002 The agreement entered into earlier this year with the
U.S. Olympic Committee (USOC) and the Salt Lake City Olympic Committee
(SLOC) was recently made official. Schenker will continue their services for
the 2002 Paralympic Games & will also be a supplier for the U.S. Olympic
Team through 2004. Activities & coordination will start well in advance
of the Olympic games. Schenker will coordinate customs clearance &
related transportation & logistical needs for as many as 80 National
Olympic committees, 9,000 worldwide press & broadcasters, and SLOC in
preparation for the Olympic Winter Games, Paralympic Winter Games &
Cultural Olympiad. Schenker will provide extensive freight forwarding
services for pre-Games test events held at Olympic venues in the years
leading up to the Games and will also staff custom services & freight
forwarding locations at the Main Media Center & O lympic Village prior
to & during Games.
- Pacer Int'l Gets GTS .......... as the North American transport
& logistics company has concluded acquisition of GTS Transportation
Services (GTS), a non-asset-based logistics & truck-brokerage operation.
GTS manages truckload & LTL shipments in 48 states, Canada & Mexico.
GTS reported US$87M in revenues for 1999. For the 6 months ended June 30,
2000, Pacer reported consolidated gross revenues of US$600M, up 67%.
- Circle Gets Out .......... as EGL Inc., the Houston-based logistics
company that bought forwarder Circle Int'l, said it has listed the former
Circle headquarters building in San Francisco with an asking price of
US$37M. EGL said it would likely close the San Francisco office when it
announced the merger agreement over the summer. Circle's former management
will move to Houston. The property is listed with Cushman & Wakefield of
Calif. Good-bye, after 100 years in the City By The Bay.
- Calling Broker UPS .......... as it has acquired Border Brokerage
Co. to strengthen its position in the U.S. northern border customs brokerage
business. The Blaine, Wash. based customs broker has about 150 employees
& branch offices along the state's border at Bellingham, Sumas &
Oroville. Border Brokerage will join another broker recently bought by UPS
-- Fulfillment Systems Int'l, based in North Tonawanda, N.Y. -- under UPS
Full Service Brokerage, a newly formed subsidiary of UPS Customshouse
- Calling Dr. UPS ......... as UPS Logistics Group (UPSLG), will
acquire Livingston Inc. of Oakville, Ontario and Livingston Healthcare
Services of Delaware. Livingston operates 22 distribution centers across
Canada & specializes in supply chain management in the high-tech,
consumer products & healthcare sectors. Livingston Healthcare Services
has 6 distribution centers in the U.S. & specializes in logistics for
healthcare, biotechnology & medical device customers. This is the 5th
UPS acquisition this year. In related news, Hewlett-Packard Co.'s Commercial
Support Services Organization has chosen UPS Logistics Group to manage its
service parts logistics network in the U.S.
- Lynden Logistics To Canada ........ as it has purchased the
operations & distribution facilities of Livingston, Inc., sites located
in Vancouver, British Columbia; Calgary, Alberta; Toronto, Ontario &
Montreal, Quebec. The purchase yields Lynden 4 warehouse facilities, each
between 60,000 to 100,000 sq. feet, & approximately 125 Livingston
employees. The facilities are equipped with coolers & freezers, vaults
for high value storage, and state-of-the-art warehousing, pick/pack &
ship systems for public warehousing & distributing. Lynden Logistics'
processing volume exceeds 300,000 orders a year. The Lynden family of
companies provides logistics & transport services to include domestic
& Int'l air forwarding, marine transport, Hercules C-130 aircraft
operations & trucking.
- Goodbye "Wassing" ......... as Mitsui OSK Lines has
changed the name of its affiliated logistics company in the Netherlands,
Wassing BV, to MOL Logistics (Netherlands) BV. Wassing BV was established in
1919 & offered freight forwarding, warehousing and truck transportation
services. In 1990, MOL purchased Wassing to expand its logistics services in
Europe. As of Jan., Wassing merged with MO Express International BV, another
logistics affiliate in the Netherlands co-owned by MOL and MO Air System,
Inc (MOA), in order to provide integrated services to its customers in the
region. Following establishment of MOL Logistics (USA) Inc. in July 2000,
MOL Logistics (Netherlands) BV will be identified as the European core of
the MOL Logistics Network.
- Nyange Seafront ........ as the Nairobi forwarders & brokers
have changed their name to Lindberg Seafront Ltd. due to the incorporation
of the company to Lindberg group of companies.
- Truck'n To Singapore ......... as Ryder System Inc., the Miami
based truck-leasing company & transport facilitator, has acquired a
controlling interest in Ascent Logistics, based in Singapore. A 5 year old,
privately held company, Ascent's principal customers are in electronics,
branded goods, & pharmaceuticals.
- FEDEX Ground Super Sizes In NJ ......... as it has opened a new
340,000 square foot "super hub" in Woodbridge, New Jersey, ahead
of the peak holiday-shipping season. This is the largest & most advanced
distribution hub in the FedEx Ground network and is part of a 3 year,
US$500M expansion initiative launched in Jan. 1999 aimed at boosting the
company's total package processing capacity by 50%. The fully-automated hub
will employ more than 775 workers, process 30,000 packages per hour, employ
an automated sorting system capable of processing more than 8,000
smaller-sized packages per hour, reduce transit times & expand
- Tracking The Tracks ......... as CSX Transportation says it is the
1st freight railroad to provide tracing of rail cars via the Internet.
Shippers can use a cellular phone equipped with a Wireless Application
Protocol, or WAP-enabled Web browser to enter a rail car's initial &
number and receive the latest event information on that rail car. Users can
trace up to 20 rail cars at any time using a Personal Digital Assistant,
such as Palm Pilot or Windows CE device capable of running an AvantGo
- Watching The Fleet ........ as the U.S. Postal Service (USPS) has
ordered the Wireless Asset Net fleet tracking & management system of
I.D. Systems, Inc. for industrial vehicles at certain USPS Processing
&Distribution Centers. http://www.id-systems.com
- One Year Later .......... as Overnite Transportation strikers &
Teamsters held rallies at Overnite truck terminals across the country today,
Tuesday, Oct. 24, 2000, to commemorate the one-year anniversary of the
unfair labor practice strike against Overnite Transportation Company, the
trucking subsidiary of Union Pacific Corp. The unfair labor practice strike
against Overnite Transportation Company, the subsidiary of Union-Pacific,
began on Oct. 24th 1999. It started in Memphis, TN & quickly spread to
140 terminals in 39 states.
- Off Like A Shot ......... as bullet train services have commenced
operations between the Chinese cities of Beijing & Tianjin.
- RailAmerica OK By Forbes ........... as the world's largest short
line & regional railroad operator has been selected by Forbes magazine
as one of the 200 best small companies in America. Forbes' 200 Best Small
Companies in America list, which ranks small companies (sales between US$5M
& US$350M) based on return on equity, sales growth, earnings per share
growth & operating margin. RailAmerica, Inc. owns or has equity
interests in 47 short line & regional railroads operating approximately
12,000 route miles in the U.S., Canada, Australia & Chile. In related
news, RailAmerica's majority-owned Chilean railroad, Empresa de Transporte
Ferroviario S.A. ("Ferronor"), has executed an historic agreement
with Belgrano Cargas, S.A., the operator of the General Belgrano railroad in
Argentina. Under the new agreement, Ferronor will operate freight trains 386
miles from Chile's border city of Socompa to Guemes, Argentina -- marking
the 1st time ever that Chilean trains will traverse Argentine soil on a
regular basis. http://www.railamerica.com
- New Financial Chief At Interpool ......... as Mitchell I. Gordon as
Executive V.P. & CFO. Mr. Gordon joins Martin Tuchman, Chairman &
CEO, and Raoul Witteveen, President & COO, on the Company's executive
committee. Mr. Gordon, 43, was most recently President of Atlas Capital
Partners, a private equity investment fund. Prior to Atlas Capital, he was a
managing director of Salomon Smith Barney, where he co-headed its
Transportation Investment Banking Group. He was previously Senior Vice
President of Furman Selz Inc., managing the firm's Transportation and
Automotive Investment Banking groups. Additionally, he has held senior
positions at Needham & Company Inc. & was Manager of Strategiã
Planning of the American Broadcasting Companies, Inc. Interpool. Interpool
recently announced an agreement with Transamerica Leasing, Inc., a
subsidiary of Transamerica Finance Corporation and AEGON N.V. to acquire the
North American intermodal division of Transamerica Leasing for approximately
US$675M in cash. Interpool is one of the world's leading suppliers of
equipment and services to the transportation industry and corporate sponsor
of The Cargo Letter archives online service.
- "Forwarder 2000" Software ......... as Integrated Export
Systems has launched it's Forwarder 2000 version 7.0. The latest release
includes foreign currency support, net settlement with agents and over 200
other operational & accounting enhancements. The suite targets freight
forwarders, NVOCCs, & other transport intermediaries. It includes
"Air & Ocean Forwarder 2000" which manages a forwarders
operation from quotation thru the general ledger, with complete data
exchange capabilities via EDI and XML, Internet based tracking and tracing,
and AES filing. NVOCC 2000 automates the entire operation of an NVOCC with
complete consolidation & manifesting of shipments. Additional modules
are Import 2000, Accounting 2000 & Warehouse 2000. IES clients include
Maersk Logistics, K-line Air, APL Logistics, ECU Line, Sky-Truck, Seino
America, Emo-Trans, Universal Freightways, Seatrade (COSCO) & over 100
- Drug Operation Quacks Up? .......... as border police in southwest
China's Yunnan province arrested a man for attempting to smuggle drugs
hidden in the stomachs of ducks on Sept. 23. Officers searching a vehicle on
became suspicious of the man, identified only by his surname, Li, who
appeared nervous & was traveling with 5 ducks, 3 of them already dead,
the official Xinhua News Agency reported. Li told police there was heroin
hidden in the ducks' stomachs & that he was given US$426 by an
unidentified man to deliver them to a contact. Police then slit open the
ducks, discovering 116 small packets containing a total 30 ounces of heroin.
The penalty for drug smuggling in China can be death. Yunnan borders
Southeast Asia's notorious Golden Triangle drug-producing region, and heroin
& other narcotics are run through the province to markets in China &
- Alexander & Baldwin Inc. - parent company of Matson Line. UP
with a 19% increase in the 3rd-quarter operating profit of its shipping arm,
to US$26.1M. Improvement was made in spite of a nearly 60% increase in the
price of bunker fuel, compared to the year-earlier period.
- Atlantic Container Line. UP with a 300% increase in net profit for
the 1st 3 quarters, to US$15M.
- Atlas Air (the airline that flies freighters for other lines) UP as
net income rose 64% to a record US$23.1M for the 3rd quarter, and announced
plans to acquire additional aircraft.
- Burlington Northern Santa Fe Corp. DOWN as sharply higher fuel
costs & a downturn in shipments resulted in a 16.3% drop in 3rd-quarter
net income, to US$272M.
- Canadian National Rail. UP with net income of US$143M for 3rd
quarter, an increase of 9%.
- C.H. Robinson, UP as the Minneapolis-based motor carrier &
logistics company, reported 3rd quarter net income of US$18.5M, up 31.5%.
Revenue for the quarter ending Sept. 30 was US$107.2M, up 42.9% from same
quarter of 1999. Operating income rose 35.9% to US$30.2M.
- CMA CGM. UP as the expansionist French shipping line, reported a
44% increase in net profit for the 1st half of the year, to 207 million
francs (US$29M). Operating profit for the period was FFr300 million, an
increase of 136%. Revenue rose 37%, US$820M in the period.
- CNF Inc. DOWN as 3rd quarter net income declined 15% to US$42.1M
before non-recurring charges, due to lower operating profits at Emery
Worldwide. Net income including non-recurring charges for the sale of
certain assets of Con-Way Truckload Services & losses for terminal
aircraft leases at Emery Worldwide was US$25.6M. Emery's 3rd-quarter
operating income, before non-recurring charges, was US$6.1M, compared with
US$22.6M in 1999. Emery's North American air freight revenue declined 7% in
the quarter, while Int'l revenue rose 15%. North American air freight
tonnage was down 9% while Int'l tonnage grew 10%.
- Continental Airlines. UP by 32% in net profit to US$137M for the
- CP Ships. UP with 3rd-quarter net income of US$41.8M, nearly
doubling the year-earlier result
- CSX Corp. UP for the U.S. rail company as net income from
continuing operations of US$59M for 3rd quarter, compared to US$118M for the
- Eurotunnel Plc. UP as 3rd quarter operating revenues rose 4% to
US$209.6M despite brief but sharp fuel shortages in Britain & France,
blockades at Calais & poor weather.
- Expeditors Int'l of Washington Inc. UP as anticipated net income
for its 3rd quarter could exceed 1999 levels by 45% to 47%. The air &
ocean freight forwarder anticipates operating income to improve 38% to 40%
and net revenues to increase 24% to 26% over 1999 figures. The company will
release its earnings on Nov. 7.
- Kuehne & Nagel. UP for the 1st 3 quarters of 2000 -- rose 24%
to US$51M compared with same period last year. CEO Klaus Herms recently said
that plans for a U.S. acquisition were becoming more concrete. "We are
hot on the trail, it is looking good," he said.
- Mitsui O.S.K. Lines. UP, as it is forecasting a non-consolidated
ordinary profit of US$406M for the current fiscal year, due to end next
March. This would be nearly 50% higher than the already high US$270M
ordinary profit reported for the 1999-2000 fiscal year.
- Neptune Orient Lines. UP as soaring operating profits from its APL
liner business triple its operating profit before depreciation &
interest costs for the 1st half of the year, to US$244M. The result compares
with an operating profit before depreciation & interest costs of US$81M
in the 1st half of 1999. Excluding non-recurring gains, operating profit
rose to US$53Min the period, from a loss of US$96M in the year-earlier
- Norfolk Southern Corp. (4th-largest U.S. railroad) Up with
3rd-quarter net income of US$99M, compared to US$19M in the year-earlier
- Northwest Airlines. UP net income of US$207M or US$2.23 per diluted
common share for the quarter ended Sept. 30, 2000. The Company's strong
financial performance was achieved in the face of higher fuel prices (which
for the 3rd quarter increased 58.7% or US$200M pre-tax year-over-year) &
is a 15% improvement over 3rd quarter 1999
- Overnite Transportation Co. UP as the LTL carrier, reported new
income for the 3rd quarter of US$16M, doubling the US$7.5M reported for the
3rd quarter 1999. Operating income rose 140% to US$19.7M.
- Peninsular and Oriental Steam Navigation Co. UP with a 17% increase
in operating profit before interest from continuing operations for the 1st
half of the year, to US$374M.
- Ryder Systen Inc. DOWN with a sharp drop in 3rd-quarter net
earnings of US$12.1M, compared to US$361.5M for the year earlier quarter.
The 1999 quarter, however, included a US$335.4M after-tax gain on the sale
of Ryder's Public Transportation division. Pre-tax earnings from continued
operations totaled US$56.6M in the 3rd quarter, compared with US$61.7M for
- Singapore Airlines. UP with a 93.3% rise in net profit to S$1.14
billion for the 6 months ended Sept. 30, 2000.
- Trans World Airlines. DOWN as it lost US$34.8M, or 49 cents per
share, for 3rd quarter compared to a loss of US$59.5M, or 87 cents per
share, a year ago.
- UAL Corp. DOWN as the holding company of United Airlines, reported
a 3rd-quarter net loss of US$64M, or a loss per basic share of US$1.29.
- Union Pacific Corp. UP with 3rd-quarter net income of US$256M, up
4% from the year-earlier period. The 3rd quarter of 1999 included US$27M in
income from discontinued operations. Subtracting that income, UP's
3rd-quarter 2000 income was up 17%. UP's operating income, excluding
Overnite Transportation, the LTL carrier, was US$550M, up 8% over the 3rd
- United Parcel Service Inc. UP with a 21.7% increase in net income
of US$702M for the 3rd quarter this year, helped by strong growth in Int'l
package volume & in worldwide logistics business. Revenue increased 9.7%
to US$7.4B, while operating profit rose 17.3% to US$1.16B. UPS Logistics
Group said 3rd quarter sales increased 36% year-over-year to US$268M. UPS
contributed that growth to the start-up of several large contracts,
including global accounts with National Semiconductor Corp. & Hewlett
- UTi Worldwide Inc. "Reverses" Itself .......... with a
1-for-7.63 combination of shares (reverse stock split). The combination of
ordinary shares was effective on October 18, 2000. The effect of the
combination of shares will be to decrease the number of issued and
outstanding UTi ordinary shares from approximately 153 million to
approximately 20 million, valuing the IPO at US$70.5M to US$80M. UTi
Worldwide -- formerly Union Transport -- reported a 39% gain in net income
to US$7.8M in the 1st 6 months this year. Gross revenue rose 23% to US$402M.
Net revenue, or sales minus the direct cost of transportation, increased 23%
- IATA Optimistic ......... as "the average annual world growth
rates for the years 2000 to 2004 of 5.6% for Int'l passengers & 6.7% for
freight, are the most optimistic forecasts made by the Int'l Air Transport
Assn. airlines for 3 years - and that renewed optimism is fueled in large
part by new a new positive outlook for Asia," said IATA director
general, Pierre Jeanniot, at a press conference in Singapore earlier this
month. "During the 1st 7 months of this year, IATA Int'l passenger
traffic worldwide has grown by 8.6% & air freight by 11.8%,"
continued Mr. Jeanniot: "But the corresponding figures for IATA members
registered in the Far East have been 11% in passenger traffic & no less
than 16% in freight traffic." The director general remarked that it
remains to be seen whether that sort of growth is going to be converted into
increased profitability. He said that the Europe-Far East routes &
services within the Far East recovered well from the recession at the end of
the 1990s, but lately have been hit by increased fuel prices. "Fuel is
currently some 18% of airlines' operating costs, up from 12% only 2 years
ago and this, coupled with continued yield erosion, means that airlines
together are unlikely to make much more than US$2B net profit on their Int'l
scheduled services in the year 2000, on revenues of US$156B. Distribution
remains the largest single source of airline costs in a normal year, &
airlines are increasingly taking steps to encourage use of the Internet to
sell their products. Our latest corporate air travel survey shows that use
of this channel has increased from 5-10% of business travelers in 1997
(depending on the region in which they live), to 20-40% in the year
2000." Mr. Jeanniot concluded: "The fundamental overoptimism &
many of the structural economic defects which contributed to the Asian
down-turn have now been remedied. I see much more robust economies and, for
the most part, robust carriers in this region." NOTE: Air freight in
the EU rose 8.1% overall with gains of 7.4% on the major North Atlantic
- Star's The Star ........ as figures for 1999 recently released from
the IATA show that the Star Alliance has maintained its dominance among the
global airline alliance networks. Based on ton-kilometers flown during the
whole of last year, the Star Alliance leads the way with a total of
56,701,000 ton-kilometers, followed closely by Oneworld with 44,566,000
ton-kilometers flown in the 12-month period. Given that Oneworld was only
formed in Feb. 1999, it is set to challenge the Star Alliance for the top
position this year. Trailing in a distant 3rd place is the KLM/Northwest
Airlines alliance with 20,497,000 ton-kilometers; with Qualiflyer in 4th
with a total of 10,182,300 ton-kilometers. Looking at the utilization of
total space, the Star Alliance had an overall load factor of 66.3% versus
Oneworld's 62.7%. The highest load factor, 68.0%, was obtained by the
KLM/Northwest alliance; with the Qualiflyer Group clocking up a 64.2% load
factor from 15,854,300 available ton-kilometers.
- Deutsche Post Goes Public Next Month .......... as it will offer
about a 3rd of its stock for sale to the public on Nov. 20, & could
raise US$7.6B, at about US$18 per share, according to European sources. It
is on track to rival global parcel delivery giants UPS & FedEx but must
1st overcome the challenge of integrating a string of recent acquisitions.
Europe's largest postal operator Deutsche Post World Net is the continent's
biggest parcels carrier through the majority stake it is taking in air
express firm DHL & the world's largest air cargo forwarder through
subsidiary Danzas. The company has been adding operations to its monopolist
letter business because the European Union has pledged to break up its
domination gradually from 2003. "Their strategy is absolutely correct.
If they are going to lose the letters monopoly, they have to go into new
areas of business," said Borislav Bjelicic, communications director of
Frankfurt-based Deutsche Verkehrs Bank. Analysts said the former monopolist
was right to go on the offensive. Rather than posing a threat, EU postal
liberalization could turn to its advantage. Deutsche Post, which has carried
out 28 transactions over the last year alone, according to consultants
Arthur Andersen, wants to expand into a global logistics provider,
transporting everything from a postcard to a heavy turbine. The integration
of the dozens of parcels, freight forwarding & other firms acquired in
Europe and overseas in recent years will be a major challenge for some time
to come. Industry sources say the consolidation of systems, product &
cultures would be extremely complicated and may not yield the synergies
- Taiwan & Philippines Reunite ......... as they have settled an
aviation dispute that had severed air links between them for nearly a year
& agreed to resume flights this month. Both sides have signed a
memorandum of understanding allowing Taiwanese air carriers to fly
passengers and cargo from Manila to third destinations. Normally cordial
relations between the countries turned sour when Manila scrapped the 1996
air pact with Taiwan, accusing Taiwanese carriers of unfair competition by
flying passengers to 3rd countries. Taiwan complained that by canceling the
agreement, Manila ignored Int'l procedures that call for a one-year warning
before an air pact is terminated. The squabble has proved costly for the
Philippines, where Taiwanese investment has dropped by 72% to US$390,000 in
the 1st quarter of the year, compared to the same time last year, Taiwan's
Economy Ministry said. Both Taiwan's EVA Airways & Philippine Airlines
will be able to resume flights, but China Airlines will start flying only by
the beginning of Nov.
- Earth Shrinking? ........... as NAV CANADA & the Federal
Aviation Authority of Russia (FAAR) have released a detailed feasibility
study that concludes that polar routes are feasible & desirable. Polar
routes provide the most direct paths between North America & Asia. The
end of the Cold War enabled aircraft to use a set of 4 polar routes, known
to the aviation community as "Polar 1,2,3 & 4". Limited
commercial flight has been approved by the Russian authorities for
demonstration purposes. These demonstration flights are approved until the
end of Oct. 2000, & may be extended for a longer period. Airlines
traveling from Toronto to Beijing will travel through 2,788 nautical miles
in Canadian airspace and 3,013 nautical miles through Russian & Chinese
airspace. NAV CANADA is responsible for the Canadian portion of the flights.
A flight leaving Vancouver for Delhi would currently take almost 18 hours.
With polar routes, the same flight would take place in 13 1/2 hours, saving
4 hours & 15 minutes. This translates into potential s avings of over
$40,000 (CDN) per flight. A flight from New York to Hong Kong would save 5
hours & has a potential savings of almost $50,000 (CDN) per flight.
Savings for the air cargo market could be significant.
- Calling It Off ....... as KLM Royal Dutch Airlines & British
Airways said last month they will end talks on a possible combination of
their businesses. "We always recognized that this would be a complex
transaction, involving not only commercial & economic issues, but also
aeropolitical, regulatory and other matters," said Leo van Wijk, CEO of
KLM & Rod Eddington, CEO of BA, in a combined statement. "Although
we made considerable progress, it has not been possible to resolve
- Calling It On? ......... as analysts said last week that Swissair
could emerge as the most likely contender for a stake in Malaysian Airline
System Bhd (MAS), throwing a lifeline to its indebted owner. Speculation
about possible Swissair investment intensified after Finance Minister Daim
Zainuddin said that the government had identified equity and alliance
partners for the debt-laden MAS. Analysts said talks with foreign buyers
focused on the 29% stake held by MAS chairman Tajudin Ramli's heavily
indebted Naluri Bhd. MAS is in need of foreign money & know-how to help
it tide over cash flow problems, stemmed mainly from loss-making domestic
operations & soaring fuel costs. The carrier, saddled with debt of
US$2.63B, has so far failed to win government approval to raise domestic
fares. Swissair, Qantas Airways Ltd & KLM have been reported to be in
the running for a stake or alliance in MAS. Thsi said, KLM & MAS said
last week they will expand their cooperation through a new codeshare
agreement, effective Oct. 29.
- Going Postal ........ as DHL Worldwide Express, Inc. has a new
service through a strategic alliance with the U.S. Postal Service including
the acceptance of merchandise & a new name. Global Express Guaranteed
(GXG) is a date-certain Int'l delivery service that allows customers to drop
off packages at 20,000 U.S. postal locations throughout the nation. DHL then
provides the Int'l transport, customs clearance & delivery to more than
- Open Stays Closed For Now ......... as American & British
aviation officials have serious doubts about the possibility of a so-called
open skies accord between the U.S. & the UK, within the near term.
- But U.S. & Jamaica Skies Now Open ......... as they have agreed
to remove restrictions on all-cargo air services between & beyond their
countries on October 19. Under the agreement, the airlines of both countries
will be able to operate all-cargo services to, from & beyond the other's
territory, without restrictions on how often they can fly, the kind of
aircraft they use and the prices they charge.
- Air Groups Unite! .......... as the Int'l Air Cargo Association
(TIACA) & the Airforwarders Association (AFA) have signed an agreement
to share information, discuss issues & ideas and coordinate action when
required. Both associations recognize that governments, regulatory bodies
& elements of the air cargo chain influence many of the issues of common
interest. David Wirsing, executive director of the AFA & Geoffry
Bridges, president of TIACA, recently signed an MOU that will assist in
further strengthening cooperation between the organizations. Recognizing a
common vital interest in the efficiency, cost & quality of air cargo
transportation in world trade, TIACA & the AFA developed the
collaborative agreement. The agreement highlights the associations' intent
to establish a channel of communication, meet as required to discuss issues
& ideas, share in such conferences & meetings as appropriate,
mutually decide on subjects & problems requiring joint effort, and
coordinate action when required.
- Exams for Cargo 2000 .......... as quality management systems tests
are to begin for the members of the Cargo 2000 interest group which consists
of 25 airlines & forwarders. This move is seen as being the 1st visible
result following implementation of the master operating plan drawn up by the
group earlier this year. The tests will ensure a timetable for
airport-to-airport deliveries is followed at master air waybill levels, with
an alarm being triggered should the target not be reached. Door-to-door
deliveries will follow the same testing process.
- Being Fuelish .......... as Airborne Express raised its fuel
surcharge an additional 1%, effective Oct. 16, bringing the surcharge up to
4% for all domestic, Canadian & Int'l express shipments. The surcharge
applies to shipping charges only and will not affect the cost of other
services, such as weekend deliveries or accessorial service. Airborne's move
follows moves by FedEx in April & UPS in Aug., to raise fuel surcharges
to offset skyrocketing fuel prices. KLM to pass on this cost to customers,
increasing the current fuel surcharge to US$0.15 per kilo from $0.09 per
kilo as of Nov. 1. The surcharge will be applied to all air cargo rates,
with non-Euro users being charge $0.15 per kilo.
- New UPS Fleet Will Be Boeing .......... as United Parcel Service
Inc. is said close to signing a deal with Boeing Co. to obtain dozens of
passenger jets converted into freighters. UPS has been examining its options
for acquiring additional large freighter aircraft for the past year. Reports
say the company may be near a decision to go with MD-11s & B-747s. The
deal is reported to involve about 30 aircraft under a conversion contract
worth more than US$1B. Boeing is seeking other major clients to help
jump-start conversion programs for other aircraft, such as the MD-11 &
the B-767. Boeing already has programs for the B-747 & the B-737. Both
Boeing & Airbus Industrie expect the worldwide freighter fleet to double
to more than 3,000 planes in the next 20 years. They predict most of the new
freighters will be converted from passenger configuration. Airbus has made
inroads into the converted freighter market in recent years with its
medium-sized A300 model. UPS is a major customer of Airbus' A300 conversion
program, having placed a US$5B order in 1998 for up to 60 A300-600
freighters. In other UPS news, Fortune Magazine has chosen it as the
"world's most admired" mail, package & freight delivery
company for the 3rd year in a row. In addition, the magazine picked UPS as
one of the Top 25 "All Stars exemplifying leadership on a global
- But No More UAL Freighters ........... as rather than acquire
another freighter type, United Airlines will end its 3 year program of
all-cargo operations effective Dec. 24 by retiring its 4 DC-10-30
freighters. United's 4 DC-10-30 freighters operate exclusively between the
U.S. & Asia via the Pacific. Their retirement is part of a move to end
all DC-10 operations as part of United's ongoing fleet renewal program.
United's last 2 passenger DC-10s will retire in February 2001. The end of
freighter flying will result in the closure of a pilot base in Anchorage,
Alaska, with the 120 pilots there being offered the chance to relocate to
United pilot bases in the continental U.S. There will be a significant
downsizing of the Anchorage ground-handling operation, which employs 96
people. UAL will continue to offer cargo services in the holds of its 51
Boeing 747s, 44 Boeing 777s & 53 Boeing 767s.
- And Six More For Singapore ......... as Singapore Airlines says it
will buy six Boeing Co. 747-400F cargo aircraft, and has an option to buy
another 9. The initial order for 6 planes is worth US$1.3B. The planes will
be delivered between 2002 & 2005.
- US Airways Says Yes .......... as it's shareholders have
overwhelmingly approved merger with UAL. With 98.5% voting in favor,
shareholders voted to approve the proposed merger of US Airways &
- Kühne & Nagel May Say Yes ........ as Air France is in
discussion with the forwarder about an air cargo logistics alliance. A deal
has not yet been concluded. K&N said it is too early to comment. Air
France needs a partnership with a major freight forwarder for time definite
logistics door to door services, which it can't offer itself.
- Aerolineas Argentinas Says Thanks ........ as Argentina's
government has reached an agreement to rescue the drowning carrier, after
its main Spanish shareholder Sepi agreed to a US$650M capitalization plan
with an estimated US$450M in new cash into the company.
- If You Can't Beat Them - Buy Them ........... as in one of the
highest-profile China-Taiwan business deals to date, Beijing has agreed to
let Taiwan's flagship carrier to buy a stake in a mainland cargo airline.
Taiwan-based China Airlines will buy 25% of China Cargo Airlines. China's
General Administration of Civil Aviation of China (CAAC) approved the deal
& final terms are being negotiated, said an official of Shanghai-based
China Eastern Airlines, the majority owner of China Cargo. The deal has not
been approved yet by Taiwan's government, however. It would leave China
Eastern with 65% of the cargo carrier. The other minority owner is China's
biggest shipping line, China Overseas Shipping Co. Shanghai newspapers have
said China Airlines would invest US$48M in the company. Analysts said the
go-ahead from the CAAC showed that consolidation and development of airline
& cargo services were gathering pace ahead of China's entry to the World
- BA Cuts Malaysia ......... as British Airways is stopping all
flights from London to Kuala Lumpur next year.
- Delta Adds Columbia ......... as it has received approval from the
U.S. Dept. of Transportation to begin direct flights between Atlanta &
Bogota. The airline can operate 7 flights a week between the cities. Delta
is the 3rd U.S. airline to fly to Colombia, following Continental &
- Korean Air At JFK ........ as the largest transpacific air freight
carrier has opened its own cargo terminal at John F. Kennedy Int'l Airport
in New York. Construction started on the new cargo terminal in Sept. 1998.
It stands on 80,850 square meters of land & has a capacity of 200,000
tons a year. Operations will begin on Nov. 1. KAL has 12 weekly cargo
flights to New York & transported 74,000 tons of cargo from Korea to New
York last year.
- CargoLiifter To The U.S. ........... as the German airship company
is making a major commitment to Eastern North Carolina at multiple sites in
the region. The centerpiece will be an airship assembly & maintenance
facility in Craven-Jones counties, the 2nd such complex in the world. The
facility will eventually employ 200-300 highly skilled workers with an
estimated annual payroll of US$16.5M. Like its German twin, the North
Carolina hangar will be one of the largest buildings in the world -- the
height of a 35-story office building & 3 city blocks long. With an
interior volume approaching 180 million cubic feet, the hangar will be
roughly twice the size of the Houston Astrodome. CargoLifter, Inc., is the
American subsidiary of German-based CargoLifter AG, which is developing a
global transport network using giant airships to transport heavy cargo.
CargoLifter CL160 airships -- more than 850 feet long, 27 stories tall &
capable of carrying 160 metric tons up to 6,000 miles nonstop -- will be
assembled & maintained at the facility Edwards projects the CargoLifter
hangar to be completed in North Carolina in 4-5 years and the 1st
CargoLifter airship in about 5-6 years. Construction of the 1st CargoLifter
CL160 prototype airship should begin in 2001 in Germany. The great world
race is on by several nations, including the U.S., to be 1st to market with
a new generation of giant cargo airships. Visit our special Internet feature
"Cargo Airships: Century 21" -- complete with rare photos &
sounds from the past, plus full details of the newest giants. http://www.cargolaw.com/airships.index.html
- The "New" Chang'an ......... as the 1st major
reorganization of China's extensive air industry sees Chang'an Airlines
& Hainan Airlines Co. merge to form Chang'an Airlines Co. The new
company has assets of US$90M, of which 86% comes from Hainan Airlines &
the Hainan Airlines Holding (Group) Co. The remainder comes from state-owned
enterprise Chang'an Airlines -- a 7 year old airline that has turned in
sluggish performances mainly due to a lack of funds. Political leaders have
previously said the country's aviators should begin to merge, although there
have been no further statements indicating any more mergers on the heels of
the Hainan-Chang'an deal. The new company will enable Hainan's assets to be
used to gain market presence in the west of the country as well as to
increase the country's feeder transport system. The company has said it will
organize a fleet of 100 aircraft, making it the largest commercial fleet in
- Working Without A Wire ......... as UPS is offering U.S. customers
a service which it claims can track packages, find the nearest drop-off
locations, calculate shipping rates & determine transit times for
shipments via virtually any wireless device. Customers can access these
services from one- or two-way text messaging or web-enabled phones, personal
digital assistants, pagers or other pervasive computing devices, via UPS'
website. The services are available to about 94% of U.S. wireless users, and
the company is making attempts to connect with the remaining 6%. The
wireless service started in the U.S. last month. The rest of the world will
get access to the service in 1st quarter of 2001.
- Cargo Chat ........ as Emirates SkyCargo has taken its Internet
initiative for supply chain management one step further & created a
business chat room for all parties in the supply chain. SkyChain Online
allows all the parties in the supply chain to communicate with each other in
real-time about a shipment, in effect establishing a cargo chat room on the
Internet. SkyChain Online functions as a chat room by bringing several
parties into real-time online communication at once, by invitation of the
person who creates the booking on SkyChain - the owner of the booking. For
example, `Importer A' needs to determine the prime time to send a shipment
to take advantage of market conditions (exchange rates, import windows,
seasonality, etc.). To do this, he needs to have a 3, or possibly 4-way
conversation: with the exporter and Emirates SkyCargo to determine space
availability; and with his bank to determine finance arrangements. Rather
than set up conference calls and send numerous e-mails or faxes, Importer A
can now set up a chat facility via SkyChain Online & get all the parties
involved talking and resolving the issues with a fast and accurate flow of
- The Big Heist .......... as a shipment of unrefined gold worth
US$1.5M was reported missing at O'Hare Int'l Airport on Oct. 27. The gold
had been loaded onto a non-stop Air France flight that arrived at the
airport from Paris, the FBI said. The freight forwarder reported the gold
missing shortly thereafter. The FBI said the gold has not officially been
declared stolen. Right, perhaps the gold was only borrowed. The gold was
destined for a refinery in Utah. Authorities would not release the name of
the forwarder. Chicago Police said about 550 pounds of gold were shipped in
5 metal boxes from the West African nation of Benin. Only 3 boxes were found
in the Air France terminal, and those were not the same boxes used initially
to ship the gold. The boxes were opened by the FBI & U.S. Customs and
they found some wood carvings and other scrap.
- Volumes: Cathay Pacific has seen strong growth in its cargo sector
with 423,082 tons carried in the 1st 7 months of the year, a growth of 16%
over the same period in 1999. Shanghai's 2 Int'l airports surge as Pudong
& Hongqiao cargo & mail transported during the 1st 8 months of the
year is up 20% year-on-year to a total of 565,860 tons.
- OSRA Only "Marginally Successful" .......... as ocean
carriers' antitrust immunity, which has made it possible for carriers to set
voluntary rate & service guidelines under discussion agreements, has
undermined the full benefit of confidential service contracting under the
Ocean Shipping Reform Act (OSRA), said FMC Commission member Del Won.
Addressing customs brokers & forwarders attending the Western Cargo
Conference 2000 in Palm Springs last week, Won judged OSRA as being
"only marginally successful." The drive to curtail carriers'
antitrust immunity is undergoing Int'l & congressional scrutiny, and
will not go away, Won predicted. He called on the FMC to change its focus
from looking at specific activities like discussion agreements as being
legal under the words of OSRA, to making findings regarding the
"market-distorting" nature of such activities. The FMC is unable
to do anything about problems confidential contracts pose regarding
brokerage billings and export declarations, Won said. Brokers &
forwarders can try to resolve the problem by working with the U.S. Customs
Service to review their information requirements, Won said. Current
requirements are based on all shipping rates being public. Under OSRA, all
rates are no longer public, he added. "Customs needs to review &
revise its requirements to comport them to congressional intent as codified
in OSRA," he said. The FMC will not take lightly an upcoming request
from the National Customs Brokers & Forwarders Assn. of America to
exempt ocean transportation intermediaries from tariff filing &
publication requirements, Won said. Days later in London, Hal Creel,
chairman of the Federal Maritime Commission said that OSRA has brought the
nation's regulation of liner shipping much closer with Europe's "The 2
systems are so fundamentally similar, and have been moving in such
complimentary directions, that the industry has been able to make the
transition to a service contract-based commercial environment without
encountering conflicts of laws, or other legal ambiguities &
uncertainties," Creel said.
- Profits Up In Container Trades .......... as net profits will rise
to US$1.9B on transpacific, Asia/Europe & transatlantic routes this
year, according to a report by Drewry Shipping Consultants. The net result
compares to industry profits of about US$570M on the 3 main east/west trades
in 1999. "The liner shipping industry will fare much better in 2000
than it did in many of the previous years," the London-based consulting
firm said. Drewry predicts that collective carrier profits in the
transpacific trade will amount to US$1.4B this year, on revenue of US$18.5B,
as compared to profits of about US$743M on revenue of US$15.5B in 1999. In
the Asia/Europe trade, Drewry forecasts net results of US$521M on revenue of
US$7.8B this year, compared to net profits of US$27M & revenue of
US$6.7B last year. On the transatlantic route, carriers are expected to post
a small collective net deficit of US$40M this year, on revenue of US$4B, as
compared to a loss of US$200M on revenue of US$3.7B last year. Carriers'
combined revenues on the 3 main east/west routes are forecast to increase
17% this year, to US$30.2B, from US$25.8B in 1999. Drewry Shipping said that
carrier profits also are showing improvement on many of the north-south
- Expensive Paper ........ as 7 conference & non-conference
carriers in the U.S./Australia/New Zealand trade will join the trend to
impose a US$100 surcharge for shippers who send paper Shipper's Export
Declarations. U.S. Customs & ocean carriers agreed upon the US$100
charge, which is aimed at encouraging shippers to submit export declarations
electronically through the Automated Export System. The United States
Australia Agreement said the surcharge will be effective Nov. 6. The
carriers of the United States Australia Agreement are Australia-New Zealand
Direct Line, Columbus Line, CMA CGM, Contship Containerlines, P&O
Nedlloyd & Wallenius Wilhelmsen. FESCO, a non-conference carrier in the
U.S./Australasia trade, said it will impose the US$100 charge for paper
SEDs, effective Nov. 1. Other carriers & conferences have announced the
imposition of the charge, including 14 carriers belonging to the Westbound
Transportation Stabilization Agreement.
- New Paper .......... as the U.S. Census Bureau has issued a new
paper Shipper's Export Declaration for exports valued over US$2,500. The new
form, Census Form 7525-V, includes new, specific data blocks, such as
carrier codes, vehicle identification numbers & Haz Mat indicators. This
info has always been required by the agency, but did not have special blocks
to list it. Since some exporters & forwarders may have large stocks of
the former SED forms, Census has given the industry until April 1 to switch
over to the new form. Exporters & forwarders may print the new form onto
"buff" colored paper from Census' Web site (below). Meanwhile,
Census is encouraging exporters & forwarders to file their export data
through AES, or via the agency's free Internet link, AESDirect. http://www.census.gov/foreign-trade
- No Paper? ........ as China Ocean Shipping Co. group has started a
project to design & implement a system to be able to provide electronic
bills of lading. The COSCO group has appointed its affiliate Cosco Network
& Information Science Co. Ltd. to conduct the 1st stage of the
electronic bill of lading project. Cosco Network & Information Science
will design the general plan, develop the software & connection, install
and maintain the network & hardware, and provide technical training
& support, through cooperation with Bolero, other companies & banks,
COSCO said. Tests for electronic bills of lading are scheduled to be
completed at the end of this year. TMM Lines has also announced introduction
of on-line bills of lading & will start offering shippers the option of
printing their bills of lading from its Web site, Oct. 30. But remember,
COGSA still requires that there also be a paper bill for the U.S. trades!
- New "Controlled" Carriers .......... as China National
Foreign Trade Transportation (Group) Corp., known to us as
"Sinotrans" & China Shipping Container Lines Ltd. have been
added to the Federal Maritime Commission's "controlled carrier
list." The carrier list is used by the FMC to keep track of
government-controlled or government-owned carriers and to make sure they
don't charge rates either in their tariffs or service contracts that are
below a "just and reasonable" level. Under the law, FMC is
empowered, after public hearing, to prohibit the publication of any unjust
or unreasonable rates, charges, classifications, rules or regulations. But
now, Sinotrans, has asked the FMC for permission to have the ability to
match competing carriers' rates on 24 hour's notice. As a controlled
carrier, Sinotrans is prohibited from reducing its rates to meet those of
competing carriers without approval of such authority from the FMC, and must
wait 30 days before matching a competitor's rates. Sinotrans argued that
such a situation reduces its ability to offer competitive rates &
service options. In its filing, Sinotrans is seeking to be placed on an
equal footing with another controlled carrier Chinese carrier, COSCO. The
case is in FMC docket P2-00. Other companies on the FMC's list are: Black
Sea Shipping Co., Ukraine; Ceylon Shipping Corp., Sri Lanka; China Ocean
Shipping Co., China; Compagnie Nationale Algerienne de Navigazion, Algeria;
Egyptian National Line, Egypt; Int'l Transport Enterprise Co. Ltd., China;
Pakistan National Shipping Corp., Pakistan; POL-America Inc., Poland; Polish
Ocean Lines, Poland; Shipping Corp. of India, India; Tientsin Marine
Shipping Co., China.
- Coast Guard Wants To Know ......... as it is seeking industry
feedback on seven regional summaries which review the progress of the
Transportation Dept.'s Marine Transportation System report. The MTS report,
which was released to Congress in Sept. 1999, reviews the status of the
country's waterways & ports & their links to the intermodal system.
Excluding cargo from Canada & Mexico, more than 95% of U.S. foreign
trade is transported by sea, and 14% of U.S. intercity freight is
transported by water. The Coast Guard said comments on these summaries from
the industry are due by Nov. 30. The regional summaries are available on the
- When Empty Is More ......... as Int'l Asset Systems, the San
Francisco-based provider of the InterBox online empty container exchange
system, said transaction volumes have dramatically increased. Quarterly
volumes have reached over 9,000 containers. Since Jan., the number of
containers exchanged through its Web-based InterBox service has increased
more than 500%. Interbox aims to enable ocean carriers & other container
operators to improve their asset utilization by matching companies that
require empty containers and those that have surplus empty boxes needing to
be repositioned to demand areas.
- Now You Pay For The Wheels ......... as carriers belonging to the
Transpacific Stabilization Agreement will impose a US$60 chassis usage
charge, effective Jan. 1. The service for providing customers with truck
chassis at port terminals has been provided free of chargev in the past, but
is costing a typical carrier US$100 per chassis which collectively amounts
to US$30M to US$45M annually, the TSA said. By setting a separate, flat
charge, shippers will be provided with an easily identifiable cost element,
as well as the option to provide their own chassis at a lower cost, TSA
said. There are no current plans for a tire inflation charge.
- Maersk Sealand Sets Hefty Target ....... as it aims to move 10
million TEUs a year within 3 years at its new Port of Tanjung Pelepas hub
port in Malaysia. Singapore's Straits Times reported that Flemming Ipsen,
CEO, Asia, at Maersk Sealand, unveiled the ambitious target at a meeting in
the port on Oct. 12. Ipsen said the Port of Tanjung Pelepas would boost its
capacity by adding 6 berths to the existing 6 by 2003. Maersk Sealand
recently said it has bought a 30% stake in the fledgling Malaysian container
port & decided to switch its Southeast Asian transshipment hub from
Singapore to Tanjung Pelepas. Maersk Sealand will operate the Malaysian
container port. The 10-million-TEU annual throughput would turn Tanjung
Pelepas into Maersk Sealand's highest-volume terminal. The port of
Singapore, operated by government-owned PSA Corp., is currently the dominant
container port in Southeast Asia, handling 16 million TEUs last year.
- FEFC Swells ........... as the Far Eastern Freight Conference, the
group of Asia/northern Europe/Asia shipping lines, has absorbed the
Mediterranean Far East Conference. The FEFC has added the former
Asia/Mediterranean/Asia conference as a regional unit. The Mediterranean Far
East Conference, now renamed "Mediterranean Rate Agreement",
discusses & sets common rates and surcharges from Asia (excluding Japan)
to the Mediterranean and from the Mediterranean to Asia (including Japan).
The FEFC now manages 4 regional units: the Eastbound Management Agreement,
the Asia Westbound Rate Agreement, the Japan Europe Freight Conference &
the Mediterranean Rate Agreement. APL, Hapag-Lloyd, Hyundai & OOCL have
joined the Mediterranean Rate Agreement. Those carriers already belonged to
other regional units of the FEFC.
- Odyssey For The "Republic" ........... as Odyssey Marine
Exploration, Inc. is moving to complete the search for the gold-rush era
shipwreck, code named "Republic". The Odyssey team has began side
scan & ROV operations in the northern Pacific & expects to complete
the search this month. By evaluating known speeds that the
"Republic" could travel, the standard course sailed by ships of
that day, the account of the course steered by the helmsman &
information from other crew members, the Captain's report of his position,
currents, the location the survivors were picked up, and the area already
searched by Odyssey during Phase 1 of the search, the final search area is a
relatively small area. The "Republic" was a steamship that sank in
the late 19th Century in the northern Pacific. The ship was bound for San
Francisco, loaded with gold & miners heading south after a successful
mining season in the Cassiar gold fields of Canada. In addition to miners,
the passenger list included some of the wealthiest & most influential
bankers in the region. One was transporting a cargo of gold to a U.S. mint,
where there was an acute shortage of gold for coinage. The
"Republic's" cargo included large quantities of gold, which were
shipped as dust, nuggets, and privately minted coins & bars from the
gold fields, potentially increasing the value of the cargo at large
multiples of the bullion value. Odyssey has agreements in place with
researchers & insurance interests that gives the company 80% of any net
revenue generated by the project. http://www.shipwreck.net
- NVOCC Pioneer Passes ........ as Paul E. Victory, Sr., 71, founder
of Dieterle & Victory Int'l Transport Co. Inc., a longtime New
York-based non-vessel-operating common carrier, died Oct.11. Victory was one
of the 1st forwarders to obtain a license from the Federal Maritime
Commission. His company, started in 1954, was active globally, has had
particular success with importers & exporters in the Australian trade.
- Good-bye Zim Indochina Line ........ as Zim has changed the name of
its Indochina line to Indochina Express Line (ICX). When operations begin at
the end of the month, the new line will operate four 650-TEU vessels on a
weekly fixed day schedule. The port rotation is: Bangkok, Laem Chabang,
Haiphong, Shekou, Ningbo, Shanghai, Fuzhou, Xiamen, Shekou, Ho Chi Minh
City, Sihanoukville, Bangkok.
- Not Under Mexican Flags ........ as 30% of the cargo shipped in
Mexico is transported by foreign companies, due basically to the lack of a
maritime cargo fleet in the country, said the Confederation of Chambers of
Industry, Concamin. Mexico exports US$140B worth of goods a year, between
25% & 30% of which is transported by sea, an area dominated by foreign
companies. The last maritime shipping company was Transportes Maritimas
Mexicanas (TMM), which sold its entire fleet last year to concentrate on the
railroad business. Mexico should look at the U.S. situation, and feel
- New AutoTerminal America Terminal ......... as it has broken ground
at its new Port Everlades facility that will be its main distribution point
for the shipment of an estimated 3,000 vehicles a month between Asia, Europe
& the Middle East and the free-trade zone in the Caribbean and Central
& South America. AutoTerminal is the 1st new major tenant in the Port's
Southport area, located in the southwest corner of the port property near
the proposed railroad hub.
- "Star Wars" Giants Reach Oakland ......... as the 4
biggest cranes in the world crept into San Francisco Bay this past weekend
& slipped beneath the Bay Bridge with exactly 22 inches to spare -- the
tightest squeeze in bridge history. The US$5.5M cranes, which are heading to
a new dock at the Port of Oakland, had a bit more breathing room when
passing beneath the Golden Gate Bridge, clearing that span by all of 7 feet.
Each crane is about 220 feet high & resembles a giant white horse. They
were manufactured in Shanghai & left China on Sept. 26, sitting
side-by-side on the deck of a heavy lift freighter. The new cranes, capable
of loading or unloading a container from a ship in only 2 minutes, will be
installed at the Port of Oakland's new 120-acre terminal at berths 56 &
57. The giant cranes of Oakland have fired up the imaginations of passers-by
for years. Filmmaker George Lucas, who drove past the port every day on his
way to work, acknowledged that they were the inspiration for the deadly
"Imperial Walker" vehicles that the bad guys used for chasing the
good guys in the "Star Wars" movie, "The Empire Strikes
- Panama Canal Slightly Safer ......... as figures show that the
waterway's safety record has improved slightly since it was handed over from
U.S. to Panamanian control. During the 1st 9 months this year there were 16
vessel accidents during a total of 9,762 transits. This compares with 19
from 9,471 transits in same period last year, & 18 from 9,676 during
1998. The ACP noted that the drop came despite the ever-increasing amount of
panamax traffic, now representing 34% of all daily transits.
- Under The Dock At Pusan ........ as "Hanjin's Bad Stab"
is our featured cargo loss photo of the month. Exclusive to The Cargo
Letter, you won't see these pictures anywhere else. http://www.cargolaw.com/2000nightmare_hanjin.html
- Malaysia Pirate Bust ........ as marine police have deterred a
pirate attack on a ship & captured 3 alleged pirates. They say they
believe the arrested men to have carried out as many as 30 pirate attacks. A
special task force has captured the Indonesian men following a fast boat
chase off Batu Pahat on October 12. The men from Selat Panjang, Sumatra,
were "about to commit a high seas robbery when the gang was ambushed by
the special squad." Three other pirates may have escaped by jumping
into the sea. The pirates are thought to have used a small high powered in
the attacks which were aimed at merchant ships as well as fishing boats. The
arrests represent a notable achievement for the Malaysian authorities
although they say they are still hunting a 2nd pirate gang believed to be
preying on shipping in the Malacca Straits. Sources at the specialist anti
maritime crime agency Int'l Maritime Bureau suggest that there could be up
to 5 gangs active in the general area.
- IMB Praises Sea Chase ......... as Int'l Maritime Bureau director
Capt. P. Mukundan has welcomed the "prompt & efficient action"
of the Indonesian Navy in locating the 15,095 dwt cargo ship M/V Norbulk
Namir in a port in Sumatra & towing it back to Batam where it had been
under arrest. The ship was part of Hong Kong-based Kaybee Shipping's fleet.
When the firm got into financial difficulties in June the ship was arrested
in Batam by a local businessman in a deal with the crew. Since then the
owner of the cargo of clinker has been attempting to gain control of the
cargo through the Indonesian courts. But the ship, now manned by a local
crew, broke arrest & fled, until recovered by the navy. Capt. Mukundan
expressed the IMB's "great concern" for the cargo which should
have been delivered to Bangladesh 3 months ago.
- Container Port Gibraltar? ........... as it is considering the
establishment of a container transshipment facility at its port. Gibraltar
has announced the extension of the existing container jetty to create more
deep-water facilities and additional land devoted to the port. In the last 5
years, the number of ships of all types using the port of Gibraltar has
increased by 56%. Gibraltar belongs to the UK!
- UK Club Loss Prevention Measures Pay Off ......... as only 3% of
ships visited by the UK P&I Club’s own inspectors in the year ended
20th Feb. 2000 required subsequent condition surveys. The inspectors
examined more than 600 vessels over the year in India, Singapore, Japan,
South Korea, the U.S., South America, the Mediterranean & north west
Europe to assess the quality of operations and to encourage improvements.
- TT Club Provides Cargo Insurance For Forwarders ........ as the
Through Transport Club & CNA Maritime have entered into a joint venture
to provide "ThruCargo", through which forwarders & brokers can
offer cargo insurance to shippers as a value-added product. The product will
be marketed initially to TT Club's nearly 6,000 members worldwide. The TT
Club said it has recognized a trend toward one-stop shopping & has
sought to broaden its range of services. "With ThruCargo, transport
operators cannot only recommend that their customers take out cargo
insurance but they can also offer a competitive quotation whilst earning
additional revenues," said TT Club. The project allows cargo insurance
to be dealt with simultaneously with other freight forwarding services,
which should reduce administration costs for shippers, TT Club said.
"Even if the customer elects not to insure, he is made even more aware
that the freight forwarder not only has a restricted liability, but this may
involve the cargo owner in a lengthy legal dispute as to which carrier, if
any, is actually responsible," TT Club said. For the transport
provider, TT Club premiums will reflect their participation in ThruCargo.
For example, if cargo insured through ThruCargo is damaged during transit,
in most instances the cargo insurer will not claim against the forwarder and
so the forwarders' TT Club claims record will not be affected, he added. TT
Club will also be offering cargo insurance via its Web site, with a new
interactive & automated cargo insurance system recently launched by CNA
Maritime, called OMMni. (see next story) http://www.ttclub.com/
- CNA Marine Ins. Online ......... as CNA Maritime announces the
launch of the 1st phase of OMMnism (Ocean Marine Manager Network Interface),
an automated cargo insurance system accessible over the Internet. This 1st
stage of OMMni allows potential customers to receive real-time quotes, issue
marine cargo certificates, pay by credit card, and access an array of other
convenient policy services, such as on-line reports & E-mail services.
All of these services demonstrate that OMMni is a truly interactive product,
which will be at the core of CNA Maritime's global cargo development. The
smaller cargo customer can register, access preset commodity rates, &
automatic underwriting. CNA Maritime incorporates MOAC in the U.S., Maritime
in the UK & Eastern Marine Underwriters (EMU) in Canada. http://www.ommni.com/
- Ocean Carriers Unite For E-Commerce ......... as major ocean
carriers will join forces to create & financially support a neutral
Internet transportation portal on the Internet under the working name of
INTTRA. Maersk Sealand, P&O Nedlloyd, Hamburg Süd, MSC Mediterranean
Shipping Co. & CMA CGM have signed an agreement to launch the 1st open
containerized transportation Internet portal backed by ocean carriers. The
portal enables int'l transportation users to manage shipping transactions
through one common platform. Implementation of the portal is subject to
regulatory approval. http://www.inttra.com
- The Delmas System Less Humid ........ as the French forwarding
group has introduced a system to protect containerized shipments of tropical
products from moisture damage. Delmas' Anti Condensation System was
specifically designed to transport cocoa beans packed in bags or as bulk in
a dry container, as a reliable alternative to the use of ventilated
containers, the company said. The system comprises a recyclable polyethylene
sheet suspended beneath the ceiling of the container and designed to let the
air flow past both sides. The moist air emanating from the cargo turns into
water, which is then collected within reservoirs. Delmas, a major operator
in the African trades, said the system is easy to install and remove in
20-foot & 40-foot dry freight containers.
- Driving To Cambodia Suspended ........ as last week local police
& the FBI arrested 16 people & recovered 42 stolen cars, mostly
Hondas and Acuras, that were being loaded onto containers at the Port of
Oakland for export to Cambodia.
- Look Out! It's The Kiwi! ........ as New Zealand yachtsman Grant
Dalton has been fined nearly US$17,000 for sailing his yacht the wrong way
along one of the traffic separation lanes in the Dover Strait last month.
Former Whitbread Round-the-World Race champion Dalton's 110-foot catamaran
Club Med spent over an hour going north at more than 20 knots along the
south-west bound lane in the busy channel, passing 17 ships & causing
some to take wild evasive action, after being blown off course by strong
winds. One tanker missed the yacht by less than 200 meters. Mr. Dalton is
due to skipper the Club Med in a non-stop race around the world later this
- Port of Rotterdam: A Pigsty? .......... as Rotterdam harbor might
just be the ideal place to keep pigs. There is a lot of space as well as a
breeze to blow the stench away. The pigs can live in apartments there.
Seriously! The plan for pigs stacked in apartments was recently presented by
the Agrotechnologisch Onderzoeksinstituut (ATO) (Agro-Technological Research
Institute) in The Netherlands. This concerns a revolutionary design for a
mega-apartment block for pigs in the Port of Rotterdam. A maximum of 300,000
pigs can stay in their own little 'apartments', if at all possible complete
with patio or balcony in order to catch a bit of fresh air every now &
then. Rotterdam is ideal because of its logistic advantages. There are a
great many freezing plants in the area & exports can be handled at low
costs. The pig apartments would have to be coupled with slaughterhouses. How
lovely! The Dutch government is currently studying the proposal, but in
principle takes a positive attitude to the plan.
- Unseen Upholder Visualized In Canada ........ as the Upholder class
submarine HMS Unseen became HMCS Victoria last month in a ceremony to name
Canada's latest submarine. Canada has spent US$750M in acquiring the diesel
powered submarines to replace their obsolete Oberon class submarines. The
Victoria left for Halifax, the 1st of 4 used British submarines that are
being rebuilt for delivery to the Canadian navy. The submarine will be
commissioned as a Canadian navy vessel on 18 Nov. The Upholders were the
last class of diesel powered to be launched for the Royal Navy, but with the
end of the Cold War, the UK decided to maintain an all nuclear fleet &
mothballed the 4 Upholders before they had entered operational service. See
- Throughput ........... COSCO Group has achieved an accumulated
shipping volume of 115,080,000 tons from Jan. to Sept., 39,824,000 tons more
than the predicted volume. >> Hong Kong Sea Transport Assn. for the
1st quarter of this year says that the overall rise in container throughout
at container terminals was 16.3% to 2,601,000 TEU -- and for mid-stream
throughput there was a 21.9% increase seen in containers on ocean vessels at
670,000 TEU, with a 39% increase to 738,000 TEU seen in river vessel trade.
>> Qingdao port handled a total throughput of 37.9 million tons during
the 1st 8 months of the year, almost equaling the total figure for the whole
of last year. >> Port of Shenzhen's container throughput has broken
the 3 million TEU barrier for the year, surpassing the overall volume for
the whole of 1999, with a total of 3.027 million TEU - a 35% increase on
throughput during the corresponding period of 1999. >> Port of Long
Beach has a 2nd consecutive month container handling record as, heading into
the middle of the peak shipping season, container terminals at the port
moved 434,741 TEU in Aug., an 8.9% increase over August 1999. >> The
ports of Los Angeles & Long Beach account for 53.6% of the U.S.' trade
with Southeast Asia. >> Port of Los Angeles handled 422,100 TEU in
Sept., the highest containerized throughput that the port has ever handled
in the month of Sept. and a 25.3% rise year-on-year -- import cargo volume
for the month is up 22% on the corresponding period last year --outbound
loaded TEU count of 78,540 TEU last month reflects an 18.6% jump over the
66,207 TEU posted in Sept. 1999 -- and the year's total to date is 3.6
million TEU, up 30.3% on 1999's to Sept. period. >> The Port of New
York & New Jersey saw container volumes top 1 million TEUs in the 1st
half of 2000, up 7% over the year-earlier period, as containerized imports
rose 12.9% to 722,000 TEUs while exports declined 4.5% to about 320,000
Visit our new Vessel
Casualties & Pirate Activity Database ......... where daily updates of
these ship news are posted. Stay up to date!
We're sorry, but there were so many sinkings, explosions, pirate attacks,
fires, cargo mishaps, artillery battles on the water & other disasters at
sea that we do not have room to print even the highlights this month. 100's of
people lost their lives at sea this month!!
But you can read all this month's disasters at our special Internet web
feature which provides full details of each event. This month we also include
special coverage of the great tragedy for USS Cole (DDG 67) & continued
coverage of the loss of the Russian Oscar II Class nuclear submarine Kursk.
Operations are currently underway to recover members of the Kursk crew from the
freezing depths. Twelve bodies have thus far been recovered.
SPECIAL NOTE: The Cargo Letter has received exclusive U.S. Navy photos of USS
Cole disaster. Please look for these dramatic pictures shorty at our special
"Gallery of Cargo Loss"
Our Daily Vessel Casualties & Pirate Activity Database is updated for you
twice daily! You can also search ship wrecks & losses of the past in our
site and visit every day! Thousands of visitors can't be wrong!
NOTE: The historic dangers of carriage by sea continue to be quite real.
Shippers must be encouraged to purchase high quality marine cargo insurance from
their freight forwarder or customs broker. It's dangerous out there.
Here are our suggested world wide web sites of the week for your business,
your information and your amusement ...............
European Commission's Annual Report On Barriers To Trade & Investment
In The U.S. ......... details obstacles EU countries face when exporting to
& investing in the U.S., points out many differences between U.S. EU legal
& regulatory systems, and talks about non-tariff barriers & the need to
defend European intellectual property rights. Free
U.S. Dept. of Census:
Foreign Trade Stats
Blindness ........ "Analysis of Legislative Approaches to
Electronic Authentication" -- article is available as a downloaded .pdf
Manipulation of the Int'l Chamber of Commerce (ICC) Uniform Customs
and Practice for Documentary Credits (UCP) Publication
NavTools Lite ......
shareware for merchant vessel navigation. Can be used for 60 days. Requires
Win9x/NT/2000 (minimal Pentium PC, 8 mb RAM, 50 mb HDD). Features include:
Continuos calculation of present dead-reckoning position; Starfinder, list of
all visible celestial objects, hours of rise/set/meridian passage; Waypoint
navigation (unlimited number of waypoints) via rhumbline or greatcircle;
Hurricane tracking; and many other small navigational utilities.
New Panama Canal Site
........ for expats.
Digital Ship ....... new
print magazine covers developments in vessel navigation, ship to shore
communications, maritime software, e-procurement, online shipbroking & other
web-based maritime services. As might be expected, the new venture has a free
e-mail newsletter dealing with the latest in maritime information technology.
Maritime Directory 2000 ........ from the publishers of "Maritime
Reporter", on CD with 20,000 listings.
Management In Shipping ............ an article from our friend Pat
Gardiner at Gibralter.
for Freight Transportation ........ Amsterdam, Nov. 27-28-29 2000. 4
dynamic keynotes, 50+ speakers & quality exhibition.
Employment Opportunities Online
allows you publish GIS projects & intelligent maps on web pages. The thin
client (less than 34 kb) can display projects with both raster & vector
maps, unlimited map layers that can be dynamically generated by ASP/CGI scripts
extracting data from databases, and hyperlinks to other GIS projects or web
Conferences For Our Industry
E-Business for Shipping.........e-business
event for shipping operators, freight forwarders & the new B2B market
players 7th-8th December 2000 at The Selfridge Hotel, London
for Freight Transportation ........ Amsterdam, Nov. 27-28-29 2000. 4
dynamic keynotes, 50+ speakers & quality exhibition.
23 New Transport Industry B2B & B2C "E-Commerce" Sites of The
Month -- (Business to Business & Business to Consumer)
3PLex.com ........ online
transportation facilitator for intermediaries servicing the trucking industry.
ARZOON ....... new transportation
management system with true industry professionalism -- a B2B with class..
Capstan.com ........ new service
combines global supply chain execution with financial services networks.
Collaborative trading groups with access to shared application resources,
messaging and workflow, trade information & online marketing tools.
...... an exchange for booking air freight.
DAT Services ....... the
business-to-business freight exchange network has reorganized.
FreightStats ......... a
portal for the national & Int'l freight transportation industry
Global Freight Exchange ....... the
U.K. B2B E-Commerce start-up, has opened its wholesale air freight exchange for
forwarders & airlines. Deutsche Post AG & Lufthansa Cargo are among the
largest investors in GF-X. Other companies working with the marketplace
developer include American Airlines Cargo, British Airways World Cargo,
Cargolux, Continental Airlines Cargo, Danzas AEI, DHL Int'l, Emirates SkyCargo,
Fritz Cos., Kuehne & Nagel, Exel, Panalpina, Swisscargo & Yusen Air
& Sea Service.
iFLEET, Inc. ........ information
technology & services to the commercial
truck & automotive fleet marketplaces
FreightWise ......... U.S.
domestic, for carriers selling available capacity, including Schneider National,
JB Hunt, Triple Crown and Comtrak Logistics.
Hotwire.com ......... for unsold
airline seats, industry's 2 biggest carriers, American & United, are backing
Hotwire in addition to Northwest, Continental, US Airways &America West.
.........online quotations, payment & issuance of the policy from Huntington
Beach, CA based InsureCargo Insurance Services, in partnership with Fireman’s
INTTRA ............major ocean
carriers will join forces to create & financially support a neutral
transportation portal -- Maersk Sealand, P&O Nedlloyd, Hamburg Süd, MSC
Mediterranean Shipping Co. & CMA CGM.
LevelSeas ........ maritime
bulk freight B2B.
MyAircraft ........ aviation
1st Web-based application service for tracking & management of pallets and
ProCure.com Inc. .......
E-Commerce supply chain management service.
Ryder System Inc.
....... B2B site for business & vehicle fleet managers to plan, order &
deliver fuel, lubricants, parts and other equipment used to maintain trucking
SeaLogistics ......... 1st
online petroleum chartering exchange for the Caribbean market.
SetFair ........ maritime B2B.
Stamps.com ........ the shipping
solutions company has just reduced it's work force by 40%.
Tariffic.com ......... trade
....... joins a network of Int'l trade sites. The Worldbid.com network is
composed of 17 other interactive, regional portals in the U.S., Latin America,
Europe & Asia.
Hartford Fire Insurance Co. Vs. Orient Overseas Containers Lines (UK)
Second Circuit Court of Appeals
October 27, 2000
CARRIAGE OF GOODS BY SEA ACT: COGSA does not apply as a matter of law after
goods have been discharged from the vessel, thus COGSA did not apply as a matter
of law to the inland portion of an intermodal carriage from Wisconsin to the
Netherlands; COGSA could apply as a matter of contract between the parties, but
the bill of lading, although potentially ambiguous, should be construed as
applying by contract the Convention on the Contract for the Int'l Carriage of
Goods by Road ("CMR") to plaintiff's claim arising from the alleged
theft of cargo in Belgium en route to the Netherlands. To be clear, this was not
a cargo loss in the U.S. -- where COGSA likely would have been applied as a
matter of contract;
ADMIRALTY JURISDICTION: A "mixed" maritime/non-maritime
contract is subject to admiralty jurisdiction only where (1) the claim arises
from a breach of maritime obligations that are severable from the non-maritime
obligations of the contract or (2) the land-based portion of the contract is
"merely incidental" to the sea-based portion; since neither of these
exceptions is applicable here, plaintiff's cargo damage claim is subject to the
court's diversity jurisdiction.
Sea-Land Service Vs. Sellan
Eleventh Circuit Court of Appeals
Oct. 26, 2000
SETTLEMENT AGREEMENTS/JONES ACT: The previous settlement agreement between
plaintiff seaman & defendant vessel owner which prohibited plaintiff from
future employment with defendant is enforceable, thus plaintiff's Jones Act
claim for personal injury damage arising during plaintiff's surreptitious
re-employment was properly dismissed.
Gulf Marine Vs. M/V Golden Prince
Fifth Circuit Court of Appeals
Oct. 24, 2000
MARITIME LIENS: Legal services are not "necessaries" under the
Federal Maritime Lien Act, thus a law firm has no maritime lien against the sale
proceeds of a vessel for which it performed legal services.
Racal Survey Vs. M/V Count Fleet
Fifth Circuit Court of Appeals
Oct. 24, 2000
MARITIME LIENS: Since the plaintiff supplier of seismic equipment looked
solely to a party other than the vessel for payment, it had no maritime lien
against the vessel for equipment supplied to the vessel's time charterer; a
supplier of necessaries must also provide those goods or services to a vessel to
receive a maritime lien, thus supplying the equipment directly to the time
charterer, and not the vessel, provided an alternate basis for denying
plaintiff's maritime lien claim; with respect to the vessel owner's separate
lien claim for non-payment of charter hire, which was brought against equipment
of the time charterer aboard the vessel, the court upheld the district court's
decision denying the claim since a vessel owner may only assert such a lien
Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.
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