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The Cargo Letter
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Top Story: UPS Acquisitions Take Center Stage
Section A: Trade, Financial & Inland News
Section B: FF World Air News
Section C: FF World Ocean News
Section D: FF in Cyberspace
Section E: The Forwarder Broker World
- Pirate Threat Grows .........as attacks have reached
an all-time high, with 72 people killed in 469 attacks last year, and the
waterways of Indonesia remain the most dangerous, a maritime monitoring
group reported on Jan. 31. The number of pirate attacks in 2000 rose 57%
compared to 1999, with about one-third occurring in Indonesian waters, the
Int'l Maritime Bureau said in its annual report. Indonesia, the world's
largest archipelago with 13,000 islands, was also the country where pirate
attacks were most violent, the report said. Pirates, many armed with knives,
boarded 86 ships, hijacking two, & tried to attack 31 other vessels in
Indonesian waters, the report said. "There are no signs the attacks
will drop unless Indonesia takes serious steps to address the problem,"
the maritime bureau said in a statement. Piracy also increased in
Bangladesh, India, Ecuador, the Straits of Malacca & the Red Sea, the
report said. The United Nations is set to discuss piracy in May, the report
said, and Japan's Coast Guard had expressed its readiness to spearhead a
multinational anti-piracy effort. The Int'l Maritime Bureau is a
London-based organization funded largely by ship owners & insurers. Read
our special report on "Modern High Seas Piracy" with study guides
& photos at:
http://www/cargolaw.com/presentations_pirates.html
- Kandla Port......... as
India's busiest port of could take months to resume full operations after
last week's devastating earthquake, although some services were expected to
start in a few days. Almost every building in Kandla was cracked & the
main bridge connecting the town of Gandhidham to the port, as well as major
roads in the area had been badly damaged. Most of the jetties have been
damaged by the earthquake but dry-cargo operations were expected to be up
& running in about 3 to 4 days.
- Symbolic First.........as the 1st Taiwan vessel in
more than 50 years to make a legal, direct trip to the Chinese mainland
docked at the southeastern port of Fuzhou on Jan. 2. The historic trip from
the Taiwan-held fortress island of Matsu marked a small but significant step
in Beijing's push for full trade, transport and postal exchanges with its
longtime rival. The largely symbolic landing signaled the formal start of
"mini three links" across the few miles of sea separating the
heavily fortified islands of Quemoy and Matsu and the mainland. A day after
high seas forced a private Taiwan yacht trying to reach the mainland to turn
back, a 4,700 ton vessel arrived in Fuzhou carrying a group of 498 pilgrims
& 16 reporters led by Matsu county commissioner Liu Li-chyun. The ship
was not flying Taiwan's national flag. The pilgrims received little in the
way of a welcoming ceremony from the Chinese, who have barred foreign media
coverage to avoid giving publicity to Taiwan's unilateral move. About 40
Chinese officials waved at the pilgrims, who waved back from the deck.
- CMA CGM Gets The Nod......... as British magazine,
Containerization Int'l, has chosen CMA CGM as its "Company of the Year
2000." This is the 1st time the magazine has selected a French carrier
for the award.
- Cho Yang Cuts Atlantic......... as it has reduced
slot capacity in the northern Europe/North America trade by 50%, in both
directions, & announced a decision to concentrate on direct U.S. East
Coast ports only. The Korean carrier has served the transatlantic market as
part of the United Alliance's AWE-PDM Asia/North America/northern Europe
"pendulum" service. The joint container service will remain
unchanged and Hanjin & Senator Lines, fellow members within the
alliance, will take the space no longer used by Cho Yang.
- LA Moves Ahead......... as
Port of Los Angeles handled a total container volume of 4.9 million TEU last
year, breaking its previous calendar-year record of 3.8 million TEU
established in 1999. The new record, which includes unprecedented import and
export traffic, represents a 27% increase of 1.1 million TEU compared with
1999. The Port of Los Angeles' total container volume in 2000 included 2.5
million inbound loaded TEU, surpassing the previous record of 2 million TEU
set in 1999. Retail merchandise, including furniture, clothes, toys &
electronic products, accounted for much of the Port's import traffic. The
Port's export traffic last year was particularly noteworthy, with an
unprecedented 984,651 outbound loaded TEU, eclipsing the previous record of
870,926 TEU moved in 1997. Higher demand for American export products,
including wastepaper, plastics, cotton & fruit, indicated a resurgence
of manufacturing activity in industrialized Asia and the stronger purchasing
power of foreign consumers for high-quality U.S. goods. Total loaded exports
handled by the Port last year surpassed the 1999 total by 20%, or 167,070
TEU. In Dec. 2000 alone, the Port handled a total of 386,972 TEU, marking a
16% increase compared with the Dec. 1999 total of 334,149 TEU. The Port has
tentatively forecast 5% to 7% growth this year in container business, which
will be influenced by domestic & foreign economic conditions. In 2002,
the Port is anticipating first-phase completion of the "Pier 400"
container terminal, which will enable the world's largest shipping line,
Maersk Sealand, to call at the Port of Los Angeles with some of the world's
newest & largest containerships. As part of the project, LA will deepen
its Inner Harbor channels from-45 feet to-53 feet, so that new
containerships, with a draft of-52 feet, are able to berth. Dredging works
will excavate an estimated 6.6 million cubic yards of sediment, which will
be used for harbor reclamation works in the West Basin, at Pier 300 &
next to the Cabrillo Shallow Water Habitat.
http://www.portoflosangeles.org
- Maersk To Help South Africa Go Private......... as
South Africa's transport utility Transnet says that Danish shipping group
A.P. Moeller is likely to participate in the privatization of the country's
harbors. Moeller is Denmark's biggest privately owned oil & shipping
enterprise & owns Maersk Line. In Feb. 1990, AP Moeller bought South
African shipping liner business Safmarine & Rennies Holdings Ltd (Safren)
for US$240M. Portnet, which has been split into a port authority & a
port operations division, has invested more than US$126M to drive its
restructuring. South Africa has 7 ports, including major harbor Durban on
the Indian Ocean which is Africa's busiest harbor & is southern Africa's
largest conduit for containerized cargo, including citrus products,
petrochemicals, sugar & coal. The privatization of ports forms part of
the government's broader plan to restructure and privatize state-owned
enterprises by 2004.
- 21st Giant For Maersk......... as A.P. Moller, the
Danish group that owns Maersk Sealand has named another new
"S-class" containership of 6,600-TEU capacity, the M/V Chastine
Maersk. For delivery in Feb. it is the 21st large containership built by the
group's shipyard for Maersk Sealand in the last 5 years. Like the last 14 of
its predecessors, the vessel is 347 meters long & 43 meters wide. The
next batch of four 6,600-TEU vessels will be delivered in 2002. According to
industry sources, the actual capacity of the "S-class" ships is
7,100 TEUs, rather than the 6,600-TEU intake declared by Maersk Sealand.
- Lykes & TMM Move East......... as the continued
increase of business between Asia & the Americas, TMM Lines and Lykes
Lines have opened joint commercial offices in Hong Kong & South Korea.
- Lykes Lines Goes E......... as is the latest carrier
to have announced the introduction of an Internet-based bills of lading
facility. Customers of the ocean carrier in the U.S. & Canada are now
able to download B/Ls from its web site.
http://www.lykeslines.com
- No More South Seas......... as Columbus Line USA
Inc, based in Morristown, N.J., reports that Hamburg Sud has begun operating
its South Seas Steamship Line under the Columbus Line brand name, effective
Jan. 1.
- Big Interpool Inc. Deal......... as the transport
equipment leasing leader has signed a definitive agreement to sell a General
Electric Co. unit intermodal trailers & rail containers in a deal worth
about US$345M. Princeton, N.J.-based Interpool will sell about 50,000
intermodal trailers & domestic rail containers to TIP (Transport Int'l
Pool) Intermodal Services, a GE Capital Co. unit. The sale is expected to
close in the 2nd quarter. "We are pleased to have entered into this
agreement with TIP," said Martin Tuchman, chairman & CEO of
Interpool, "It is consistent with our stated strategy of increasing our
focus on our key chassis & Int'l container businesses." Tuchman
added that proceeds from the sale, which include 40,000 units previously
acquired from Transamerica Leasing Inc., will be used to pay down debt.
Interpool, Inc. is corporate sponsor of The Cargo Letter archives.
http://www.interpool.com.tcl/
- Bug Man Charge Up......... as FESCO Agencies N.A.,
based in Seattle, has issued a notice to its North American shippers of a
rise in fumigation rates by US$20 per container bound to Australia/New
Zealand. The current rate of US$75 per 20-foot or 40-foot container
requiring fumigation in the trade will increase to US$95, starting this
month.
- Crane In A Can......... as Titan Maritime, LLC, a
Florida based marine salvage company is constructing the worlds 1st
disassembling/portable shearleg crane. "Heavy Lift Salvage Tool"
composed of two (2) portable 1000 metric ton (1102 s.t.) capacity shearleg
cranes (named "Response" & "Results") and
corresponding 1000 metric ton (1102 s.t.) deck tackle. The 2 cranes, working
in tandem, when combined with linear chain pullers, are capable of lifting
up to 4000 metric tons (4408 s.t.). A portable lifting capacity of this
magnitude is unprecedented. Shearleg cranes, of various shapes & sizes,
are currently used in different locations, but all were purpose built as
structures on floating barges. What is different about Titan's concept is
the portable aspect? Each crane is designed to be loaded into standard size
intermodal shipping containers. Once disassembled & containerized, the
"Heavy Lift Salvage Tool" can be shipped anywhere in the world. In
extreme situations, the units can be air transported for rapid deployment.
- Do The Web Portals Work?......... as GloMaP.com, an
electronic shipping marketplace provider based in Germany, said it has
placed 40,000 TEUs worth of containerized shipments, freight transactions of
US$96M, since launch last June. GloMaP.com says more than 2,500 customers
signed up & each cargo placed has received an average of 2 bids by
carriers.
http://www.glomap.com
- Vehicle Damage Limit Waived......... as
the contractor responsible for a shipment of privately owned vehicles that
were severely damaged en route to Europe for service members & civilian
employees has gone beyond the letter of the contract for reimbursement. More
than 160 vehicles were damaged by diesel fuel oil aboard M/V Faust during a
severe English Channel storm on Nov. 5, 2000. American Auto Logistics, Inc.,
of Monroe, N.Y., will waive its US$20,000 maximum liability contract limit.
Instead, the company will pay the blue book value for vehicles, market value
for antiques & restored collector's items & 30-day rental car fee,
or US$1,000 in lieu of a rental car, according to the U.S. Military Traffic
Management Command. The Faust encountered hurricane force winds and a large
vehicle broke free from its lashings & ruptured a diesel fuel tank. More
than 10 tons of oil leaked out and dripped on the privately owned vehicles
on lower decks. After waiting out the storm in Le Havre, France, the ship
docked at Bremerhaven Nov. 9, 2000. Vehicle owners should contact: Richard
Holland, Transcar GmbH, Telephone: 49-0-6107-944117/16 Fax: 49-0-6107-8691
- OTI Licenses Canceled......... as the U.S. Federal
Maritime Commission has revoked the licenses of 9 ocean transportation
intermediaries for failing to maintain a valid security bond. The companies:
Amex Int'l Inc., Washington, D.C.; MSD Line Inc., Compton, Calif.; Nippon
Concept (USA) Inc., Hackettstown, N.J.; Omega Shipping (CA) Inc., Los
Angeles; Pike Shipping Co. Inc., Harvey, La.; ABA Forwarding, North
Plainfield, N.J.; SDV Logistics (Texas) Inc., Houston; Stallion Freight USA
LLC, Los Angeles; & Visawood Container Line, Jamaica, N.Y.
- Grounded Vessels......... as
the owner of a 100-acre farm in Emmeloord, 70 miles northeast of Amsterdam,
was ploughing his onion fields recently when his tractor struck something
hard. He recalled: "I thought it was the deep roots of a tree. But, I
found that it covered a big area & I began to see planks. To my
surprise, I realized I had found a complete ship." The 16th century, 65
ft long boat was one of 435 shipwrecks to be discovered on land in recent
years. The plough has become an unlikely archaeological tool, with many of
the ships being found on farms. Last month one appeared when digging began
for a new cycle path in a nature reserve, to the bemusement of the nearby
deer. The finds have become more frequent as increased rainfall, which
caused the recent heavy flooding across Europe, has led to rising water
levels. Since the 1930s the Dutch have reclaimed large tracts of sea to
provide land for their population. Whole new provinces have been created by
building dikes to push back the sea, then pumping out the water and planting
reeds to draw out the moisture. There are now so many wrecks popping up that
a special hotline has been set up. By law, farmers must report finding a
ship within 3 days, then allow access to officials from the Netherlands
Institute of Ship Archaeology & stop farming that area. In return, they
are paid compensation.
- This Month In U.S. Naval History......... as on Jan.
22, 1968 the intelligence collection ship USS Pueblo (AGER 2) is fired on by
North Korean patrol boats in Int'l waters off the east coast of North Korea.
One crewman is mortally wounded and 3 others are hit. Pueblo's only weapons,
a pair of .50-cal. Machine guns, are frozen fast beneath their tarpaulins on
the ship's bridge, and there are no U.S. naval or air forces close enough to
come to her assistance. Pueblo accedes to the North Korean boats' demand to
follow them into Wonsan harbor.
Visit our new Vessel Casualties & Pirate Activity Database
......... where daily updates of these maritime casualies are posted. Stay up to
date!
https://cargolaw.com/presentations_casualties.html
We're sorry, but once again there were so many sinkings,
explosions, pirate attacks, pirate captures, 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 -- including the oil
washing ashore on the Galapagos Islands from the grounded Ecuadorian-flag
tanker. Indeed, you will see that it has been a very exciting month at sea.
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 extensive index with thousands of listings.
Bookmark the site and visit every day! Thousands of visitors
can't be wrong! This has become one of the most popular maritime sites on the
Internet.
https://cargolaw.com/presentations_casualties.html
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.
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Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.