|
The Cargo Letter
|
|
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
- NCBFAA
Backs Bill To Repeal Antitrust Immunity .............. as the National
Customs Brokers & Forwarders Assn. of America president Peter Powell has
lauded the revival of a U.S. House of Representatives bill to repeal ocean
carriers' antitrust immunity Introduced by Rep. James Sensenbrenner, R-Wis.,
new chairman of the House Judiciary Committee. The bill is similar to last
year's legislation proposed by former Judiciary Committee chairman Henry
Hyde, R-Ill. "The bill would strip ocean carriers of their ability to
fix prices collectively -- in cartel fashion -- and set other uniform terms
& conditions for shipping," Powell said. Introduction of the bill
"makes it crystal clear that this legislation remains viable,"
Powell said. "It shows the determination of the House committee with
jurisdiction over antitrust matters to bring ocean carriage into the 21st
Century." "Antitrust immunity & cartel practices need to go
the way of the dinosaur. Our global economy is based on an efficiently
functioning market place. The carriers' ability to act collectively is a
throwback to a bygone era," Powell said.
-- Now if they could only re-start hearing for passage of the new
COGSA legislation.
- Conferences
Useless? .......... as the European Shippers' Council told the
Organization for Economic Cooperation & Development that conferences
fail to contribute to freight rate stability, & their antitrust immunity
should therefore be withdrawn. The ESC conducted a survey of rate
developments since 1996 among European & Israeli shippers who belong to
its national organizations, the 1st study of its kind by European shippers.
The survey also highlighted wide differences between the rates being paid by
different shippers.
- U.S.
Ports Hit By NAFTA .......... as U.S. ports in 1999 lost US$29.5B in
cargo business to Canada & Mexico, according to figures released last
week by the U.S. Maritime Administration. Canadian ports accounted for the
lion's share -- US$26.8B -- with exports amounting to a value of about
US$8.8B & imports, US$18B. U.S. cargo moving through Mexican ports
carried a value of US$2.7B. Imports accounted for 86% of the tonnage, &
96% of the value, MarAd said. Most of the exports moving out of Canada were
destined for Europe, while exports out of Mexico were destined primarily to
countries in the Americas. Imports via Mexico were chiefly from Japan,
China, South Korea, Taiwan 7 Singapore, while Europe and Japan continued as
the primary origin for imports via Canada.
-
New
Pirate Targets Feared ........ as Surging Asian piracy & militants
searching for soft targets pose an increasing threat to the world oil tanker
trade, and oil spills are seen as an inevitable consequence. "We
believe Abu Sayyaf & the Tamil Tigers are actively considering attacking
marine targets," former mercenary Colonel Tim Spicer told the Int'l
tanker owners organization, Intertanko, which met this month in Sydney. The
Abu Sayyaf is a Muslim separatist rebel group based in the southern
Philippines. Tamil Tiger guerrillas are fighting for a separate Tamil
homeland in the N. & E. of Sri Lanka. Spicer showed bomb-damage to the
U.S. warship USS Cole in Yemen last Oct. & asked listeners to imagine
the consequences of a similar attack on a tanker. Petroleum product tankers
have proved to be a key target with their valuable cargoes of diesel &
gasoline, which can easily be sold on the black market.
About half of the 469 pirate attacks reported last year -- a 10-year
high -- occurred in Indonesia & the Straits of Malacca -- it would be
there or in the Singapore Strait, that a spill was most likely to happen.
This danger was preciously raised in our "Modern Day Piracy"
presentation of Nov. 2000 -- available for review on line:
https://cargolaw.com/presentations_pirates.html
- Volume
Increase Slowdown? ......... as Drewry Shipping Consultants have
warned the US$90B per year container shipping industry that they have to
face a slowdown in traffic growth, falling rates & further
consolidation in the coming months.
- Foot
& Reefer ......... as lines of the Westbound Transpacific
Stabilization Agreement have voiced concerns over refrigerated container
equipment availability for U.S. agriculture exports to Asia. The carrier
group said market demand for U.S. exports of fresh & frozen fruit,
vegetables, meat & seafood remains high, and U.S. pork & poultry
producers are likely to "pick up some of the slack in sales to Asia,
as Europe sells more of its total pork and poultry domestically." The
carrier group cited the foot-and-mouth epidemic in Europe as causing the
imbalance. Increased beef & pork shipments from Australia & Canada
to Asia in the wake of the European epidemic, along with stepped up
intra-Asia bookings, also have begun to pull transpacific equipment
returning from Asia out of the U.S. trade lane.
- MarAd
For The Defense ......... as the Bush Administration's final fiscal
year 2002 budget calls for transferring the Maritime Administration
Maritime Security Program to the U.S. Department of Defense. The budget
provides no funding for MSP at MarAd, but calls for US$98M to be spent by
the DOD to cover operation of 47 U.S.-flag liner vessels for the next
fiscal year, beginning Oct. 1.
- Bahamas Cat ......... as Fred Olsen Express LLC has started a
high speed service between the Port of Miami & Freeport, Grand
Bahamas, using a catamaran vessel which operates at faster than 36 knots.
The daily shuttle provides a 3 hour transit time & can carry 630
passengers as well as up to 250 vehicles & trucks or 16 TEUs of cargo
each way.
- Private
Pacific ........ as Kuok Singapore is about 9% shy of shareholder
acceptances it needs to take Pacific Carriers Ltd private with 2 weeks
until the takeover offer lapses. Kuok Singapore, the private vehicle of
Malaysian tycoon Robert Kuok, made its offer unconditional after gaining a
controlling stake of more than 50% in the Singapore shipping company.
- North Pacific Steamship Line Sinks.......... as the industrial
niche-carrier formed in 1998 in Everett, Wash., has ceased operations --
leaving fully paid cargo abandoned around the Pacific. The carrier had
been sailing a transpacific liner service connecting Everett with
Hitachinaka, Kobe, Osaka & Nagoya in Japan since July. The 18-day
service used 2 ships averaging 1,050 TEUs. North Pacific specialized in
cargo for the aerospace, forestry, food, heavy machinery & vehicle
industries. The carrier departs with many bills unpaid & cargo
stranded.
- Cho Yang Taking Water .......... as Cho Yang Shipping, the
struggling Korean shipping line, has given up membership in the United
Alliance. At a meeting in Seoul at the HQ of Hanjin Shipping, the largest
carrier in the United Alliance, Cho Yang managing director N.H. Paik
agreed this month to transfer all the vessels operated by the company to
alliance partners. Cho Yang will cease to be a member of the United
Alliance, which now comprises Hanjin, its subsidiary Senator & United
Arab Shipping Co. "United Alliance members have announced that the 7
vessels currently being provided by Cho Yang out of the total alliance
fleet will be replaced by Hanjin & Senator vessels," Hanjin &
Senator said in a joint statement." The carriers said the most
important consideration that led the alliance members to this move was
"the necessity to restore customer confidence, which suffered during
recent schedule irregularities of Cho Yang vessels deployed in United
Alliance service." Cho Yang ships have been detained under arrest in
ports. Under U.S. FMC rules, once Cho Yang no longer has vessels calling
in the USA, it may fail to meet the definition of an ocean common carrier,
& NVOCCs cannot enter into service contracts. Edward Kelly, the
president & CEO of Cho Yang (America) Inc., has resigned.
- Lykes
Lines CHB ......... as it will now arrange customs filings for U.S.
exporters, in-transit entries for U.S. importers, & import customs
clearance in the U.S., the UK, Brazil & Mexico. Lykes already offers
container tracking and, through its U.S. inbound cargo facility on the web
site, allows customers to check the customs clearance status of shipments
arriving in the U.S.
- New Cosco ......... as China Ocean Shipping Co. has set up a
subsidiary in Russia, Cosco Russian Ship Trading Co.
- APL Logistics Buys Forwarder ......... as the logistics arm of
Neptune Orient Lines, has acquired Mare Logistik GmbH, a German
forwarder-broker. The acquisition is APL Logistics' 1st in Europe &
follows the recent purchase of GATX Logistics in N. America. Terms of the
acquisition were not disclosed. APL Logistics has taken an initial 51% of
the German company, with the balance due to be paid through an
"earn-out process" over 5 years
.
-
Interpool
Has More Muscle ............ as the intermodal leasing giant (NYSE:IPX)
has completed the sale of its approximately 50,000 intermodal trailers
& domestic rail containers to TIP Intermodal Services (TIP), a GE
Capital Company, which includes 40,000 units that Interpool acquired from
Transamerica Leasing Inc., in Oct. 2000. The transaction is valued at
approximately US$345M. As a result of the transaction, Interpool reduced
its net debt by approximately US$300M. Martin Tuchman, Chairman & CEO
of Interpool, stated, "We are pleased to have completed the sale of
our intermodal trailers & domestic rail containers to TIP Intermodal
Services. By decreasing our leverage, Interpool has additional flexibility
to invest in its core chassis & marine container businesses."
Interpool is corporate sponsor of The Cargo Letter archive.
http://www.interpool.com/tcl/
- Big &
Flat ......... as "Domino SuperRac," a new flatrack
container capable of being extended to a height of 4.1 m, has entered
pilot production & will be tested by APL & Hanjin Shipping.
Clive-Smith Associates & Super Corporation, a South Korean transport
& logistics company, designed the container to solve the problem of
transporting over-height cargo. The flush-folding flatrack incorporates
telescopic posts that allow it to reach a height of 4.1Êm. The structure,
described as "strong & robust," is fitted with
counterbalanced springs & hydraulics so that it can be set up
manually.
-
AutoTerminal.com
Americas In The Zone ......... as it has received approval from U.S.
Custom's to operate a Foreign Trade Zone on its Port Everglades terminal
site. The designation was necessary for AutoTerminal.com Americas to store
vehicles duty-free at its terminal for shipment between foreign ports. The
terminal can store about 3,000 vehicles awaiting shipment to auto dealers
throughout the world.
http://www.autoterminal.com
- Paying For West Bound Hazards ........ as carriers of the Westbound
Transpacific Stabilization Agreement, a transpacific discussion agreement,
will adopt a hazardous cargo surcharge of US$100 per FEU & US$80 per
TEU, effective July 1. The WTSA said carriers are concerned that downward
trends in freight rates for U.S. containerized exports to Asia means
"that special service requirements and costs involved in handling
hazardous & dangerous cargo shipments are not adequately covered."
- 12,000
TEU? ......... as the French classification society Bureau Veritas &
designer Knud Hansen have produced their own, unusual, design for a 12,500
TEU container ship. The ships would have a scantling draft of 14.5 m &
breadth of 54.2 m, carrying 12,523 TEU on a deadweight of 152,000 dwt. The
engine room & casings are positioned one quarter length from aft with
the deckhouse forward of amidships, giving, the society claims, higher
torsional rigidity, shorter shaftlines & better visibility from the
bridge. The ships would have either twin diesel engines or use azipods. The
designers says that at capacities over 10,000 TEU, conventional designs
cannot be maintained.
-
FMC
Revokes Forwarders Licenses .......... as the U.S. Federal Maritime
Commission has revoked ocean transportation intermediary licenses for
failing to maintain a valid bond: Ohanneson Worldwide, San Francisco;
Seawinds Freight Services Inc., South San Francisco; Tarnak Inc., New York
City; Zust Ambrosetti Inc., North Bergen, N.J.; Eagle Transportation
Services, Gainesville, Ga.; Escort Forwarding, N.Y.; Fescargo, Compton, CA;
Fleetwood Line, Bensenville, Ill.; FY Int'l, Wood Dale, Ill.; Lextrans,
Portland, Maine; Mid Cities Motor Freight, St. Joseph, Mo.; P.J. Jantzen
Industries, Elk Grove Village, Ill.; Sea-Land Logistics, Charlotte, N.C.;
Surflines, College Park, Ga.; Tantara Services, Canton, Mich.; J.G. Int'l
Freight Forwarding Inc., of Medley, Fla.; USA Cargo Service, Marietta, Ga.;
Cargomania Int'l Inc. & North Star Ocean Services, both of Jamaica, N.Y.
http://www.fmc.gov/Dockets/00-12%20Revocation.htm
- Builder
Consolidation ........ as General Dynamics Corp. said it would buy rival
Newport News Shipbuilding Inc. for US$2.1B in cash, creating the only U.S.
builder of aircraft carriers & submarines for the U.S. Navy.
- LA
Still Charging .......... as Port of LA container traffic increased by
more that 12% during the month of March, year-to-year, handling a total of
401,635 TEU. Imports totaled 206,780 TEU, compared with 180,682 TEU the
previous year, an increase of approximately 14%. Exports also showed an
increase of over 6% with the movement of 88,237 TEU.
- The
Marine Salvage Rights of Spring ............
as after a delivery truck carrying 24,000 bottles of beer plunged into an
Australian river, there was no shortage of volunteers to help salvage the
cargo. People carried beer out of the Tweed River north of Sydney throughout
the Easter holiday weekend. Some donned scuba gear, while others dove
straight in. One man reportedly claimed 400 bottles. The delivery truck lost
a wheel & crashed into the river April 10. The truck was salvaged, but
half its contents remained in the river. Residents began diving for the beer
after the unidentified owner failed to post security guards at the crash
site. Although police considered it a theft, officials doubt whether any
action will be taken.
Visit
our new Vessel Casualties & Pirate Activity Database ......... where daily
updates of these ship news are posted. Stay up to date!
https://cargolaw.com/presentations_casualties.html
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. Many lives
were lost 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 U.S. Navy EP-3
drama, grounding of the M/V Normandie & a rather incredible hijacking by
200 armed men in India. Visit this feature today!
SPECIAL
NOTE: The Cargo Letter has exclusive photos of a Port of Los
Angeles container stack disaster this month for CMA CGM Line. Please view these dramatic pictures at our special
"Gallery of Cargo Loss" website feature.
https://cargolaw.com/gallery.html
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.
Bookmark
the site and visit every day! Thousands of visitors can't be wrong!
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.
Please click below for other sections:
Section A
Section B
Section D
Section E
Please click below to go back to the Cargo Letter home page.
Cargo Letter Home Page
Return to the top of Section C
Written from wire stories, the Associated
Press, Reuters, Hong Kong Shipping News Lloyds & other world sources.