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The Cargo Letter
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Section A: Section: 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
Freight Forwarder World Air Briefs
- Hard Doors ........
as the U.S. FAA has given the industry 45 days
to outfit cargo & passenger planes with temporary internal locking devices.
This Jan. 12 ruling falls under the Special Federal Aviation Rule (SFAR),
which is concurrent with the Aviation & Transportation Security Act.
Beginning last Oct, FAA issued a series of SFARs authorizing short-term door
reinforcement by providing airlines & cargo operations with temporary relief
from certain FAA standards. The major U.S. airlines voluntarily installed
short-term fixes to doors on 4,000 planes in 32 days. A long-term fix that
meets FAA requirements must be installed within 18 months. Rule sets new
performance standards for all current & future cargo planes that have cockpit
doors, or commercial planes with 20 or more seats.
Specifically, the rule:
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Requires strengthening cockpit doors using an impact standard 50% higher
than standard developed by the National Institute of Law Enforcement &
Criminal Justice -- a standard sufficient to minimize penetration of shrapnel
from small arms or fragmentation devices.
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Requires cockpit doors locked with an internal locking device that can only
be unlocked from inside cockpit.
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Controls cockpit access privileges.
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Prohibits possession of keys to cockpit by crew members not assigned to
cockpit.
As announced by President Bush on Sept. 28, the FAA will administer a federal
grant program to help the U.S. air cargo & air carrier industry fortify the
cockpit doors. FAA estimated the cost of an enhanced cockpit door at
US$12,000 to US$17,000, with the total cost to airlines running from US$92.3M
to US$120.7M over a 10-year period. Final rule & SFAR are available:
www.faa.gov/avr/arm/nprm.htm
- So Much Indirect Damage - So Little Time ........
as 3 cargo
associations have filed an extension request with the U.S. Dept. of
Transportation, citing they did not have enough time to apply for funds for
relief from damages suffered from Sept. 11. Under the Air Transportation
Safety & System Stabilization Act (ATSSSA), air carriers were granted
opportunity to apply for compensation for losses stemmed after the attacks.
The Act did not initially grant such rights to indirect air carriers (IACs),
but on Jan. 2, the DOT amended its plan, thereby extending relief to IACs,
with a final deadline of Jan. 16. The organizations, which include IACs, said
reversal on Jan. 2 was done without much publicity, and did not provide
enough time for IACs to seek assistance. The groups seeking time extension
are: The New York/New Jersey Foreign Freight Forwarders & Brokers Assn., the
JFK Airport Customs Brokers Assn., & the South Florida Non-Vessel-Operating
Common Carriers and Non-Aircraft-Operating Common Carriers Assn. Together,
the groups represent more than 330 companies.
- Details of What We All Know ........
as the U.S. Dept. of
Transportation's Bureau of Transportation Statistics' Dec. "Transportation
Indicators" report, details how airline revenues & employment, as well as air
traffic, had declined following Sept. 11-- report is available at:
www.bts.gov
- Let's Call The Whole Thing Off ........
as American Airlines &
British Airways canceled an alliance that would have allowed both airlines to
share routes. Both airlines declined an offer for antitrust immunity by the
Department of Transportation (DOT), with conditions that would have included
divestiture of 224 takeoff & landing slots to competitors between the U.S. &
Heathrow Airport. "We will not do this deal at this price," a spokesman
said. After all this controversy!
- UPS Leading The Pack ........
as a new analysis of logistics &
transport companies indicates that UPS is in the strongest financial position
to expand globally. The analysis compares UPS with major competitors FedEx,
Deutsche Post & TPG. The analysis draws on comparative financial results of
major companies. UPS is beating its competitors significantly on operating
margin, net income & other measures. The conclusions are presented in a new
report, "The Globalization of Logistics Services" -- available for a handling
charge of US$19.95 from Armstrong & Associates, Inc. Call 800-525-3915 or
e-mail Armstrong@3PLogistics.com
- China On The World Escalator ........
as an estimated US$400M in losses
is expected by China's 3 largest airlines as a result of the Sept. 11
terrorist attacks in the U.S. last year. Fallout from the attacks has
impacted badly on the airline industry worldwide with many airlines having to
drastically reduce capacity & schedules in the face of huge drops in
passenger traffic. China's 3 leaders, China Southern Airlines, China Eastern
Airlines & China Air, have been relatively sheltered from recent chaos
affecting the industry, though a price has been paid.
- Immediate Seating ........
as in a show of support for
Afghanistan's new interim government, the U.N. Security Council on Jan. 15
lifted an Int'l flight ban on the country's airline which was imposed to
pressure the former Taliban rulers to hand over Osama bin Laden. The 15
council members voted unanimously to allow Ariana Afghan Airlines to resume
Int'l flights, halted in Oct. 1999, & to unfreeze the airline's assets.
Ariana has only one working jet, a B-727. At Kabul Airport, crews have been
working feverishly to repair damage.
- Freight Will Be "Delayed" At Gaza Int'l ........
as Israel tanks &
bulldozers plowed up runways at Palestinian-controlled Gaza Int'l Airport
early Jan. 11. Pressure on the Palestinians has increased in the wake of
Israel's seizure of a ship carrying 50 tons of weapons that Israel & the
ship's Palestinian Capt. -- both say were bound for Gaza. Vessel details:
www.cargolaw.com/presentations_casualties.html#M/V%20Karine%20A
- Free French Movement ........
as U.S. Transportation Secretary
Norman Mineta on Jan. 22 signed an open-skies aviation agreement with France,
covering both cargo & passenger services -- eliminating restrictions. On the
cargo side, agreement grants unlimited air cargo rights between the U.S. &
France, independent of any other security rulings.
- No Merry Christmas At BAA ........
as Britain's biggest airports
operator reports cargo tonnage handled at its airports, which include
London's Heathrow fell by 12.1%, the 12th consecutive monthly decline.
- Operations Dip At LAX After Sept. 11 ........
as it processed 155,677
tons of air cargo (mail & freight) in Dec. 2001, or 82.93% of the 187,729
tons in Dec. 2000. Sept. Oct. & Nov. air cargo tonnage was 75.69%, 81.76% &
83.26%, respectively, of the air cargo volumes during the same months in
2000. Aircraft operations (landings & takeoffs) closed last year at 738,114,
or 94.22% of the 783,433 operations in 2000. Similarly, Hong Kong Air Cargo
Terminals' volumes declined 9% in 2001 to 1.59 million tons, due to continued
weaknesses in import trades & exports to the U.S. HKG imports were off 9.0%,
to 576,421 tons.
- United Cargo Debut At LAX ........
as it has a new US$35M cargo
facility at Los Angeles Int'l Airport -- directly under windows of The Cargo
Letter. The new 168,000 sq. ft. warehouse, scheduled for operations Feb. 11,
has 31 dock positions & a customized automation system, along with a security
system that exceeds Technology Asset Protection Assn. requirements. The
facility is located on 12.2 acres just W. of LAX's passenger terminals.
- Airbus Feels The Pinch ........
as the EU planemaker has announced
plans to slash equivalent of 6,000 jobs in reaction to a slump in demand, but
said it could weather the market turbulence without cutting "permanent"
staff. Mindful of political sensitivities to labor layoffs ahead of French
elections this year, the firm said roughly 1,000 workers would leave through
voluntary redundancy & another 5,000 'virtual' jobs would be trimmed by
ending part-time & temporary work contracts. Airbus also put a positive spin
on what many analysts believe is developing into the worst crisis ever for
the global airline industry, saying it could maintain annual deliveries of
300 planes in 2003 -- the year deliveries are expected to hit a low. Airbus
said it delivered a record 325 aircraft last year, up from 311 in 2000.
- Airbus Forms The Giant ........
as it began production Jan. 23 of the
A380, its 555-seat jumbo jet scheduled to enter service in 2006 as the
world's largest passenger jet. The traditional "1st metal cut" for
construction of the jetliner took place on schedule at its factory in the
western French city of Nantes. The US$250M plane with 2 wide-body decks will
make its 1st flight in 2004 & enter service in 2006.
- Korean Signs of Times ........
as in it's restructuring program
Asiana Airlines is planning to sell 59% of its ground-handling unit Asiana
Airline Services Co. The airline is also looking to sell its share in Korea
Airport Development and a 33% stake in Incheon Int'l Airport Foreign Carrier
Cargo Terminal.
- Mid-Air Refueling ........
as America West Airlines has said it did
not make deferred aircraft lease payments of approximately US$49M within the
grace period, but plans to make the payments simultaneously with closing of a
US$429M loan. On Dec. 28, America West announced that the Air Transportation
Stabilization Board (ATSB) had conditionally approved airline's application
for approx. US$380M in loan guarantees On Jan. 14, America West announced
that the ATSB had advised that the company had satisfied the primary
conditions to approval. America West expects to fund a loan of US$429M,
supported by the ATSB guarantee & more than US$600M in concessions, financing
& additional financial assistance, by the end of this month.
- Split Personality ........
as Malaysian Airline System Bhd has unveiled
plans to transfer its stock listing to a new unit that will operate its Int'l
routes, sparing investors from exposure to its unprofitable domestic
business. Under the reorganization, the state-controlled national carrier
will be taken private & then move its Int'l business & cargo business, as
well as its listing, to a new unnamed subsidiary company. The current
shareholders of MAS, including the government, will be the shareholders of
the new company, while domestic services will be owned by the government
alone.
- No Swisscargo ........
as it will dissolve itself by the end of March
as part of Crossair's taking over of bankrupted Swissair's operations,
according to a report on ATWOnline. Crossair says it will establish its own
cargo wing in due course.
- Air France Bailout ........
as the European Commission is set to
approve a 59 million euro aid package for French airlines to compensate for
the shutdown of North Atlantic airspace after Sept. 11.
- Southern Weakness ........
as bellwether Lan Chile reports cargo
capacity for Dec. decreased 12.9% while cargo traffic decreased 21.5%.
Accordingly, cargo load factor for the month decreased 7.5 points to 68.0%.
Traffic has declined as demand has fallen continuously on southbound routes
due to economic weakness in Brazil, Argentina & Chile.
- African Crash ........
as with debts amounting to more than US$455M,
the shareholders of Air Afrique have decided the company should file for
bankruptcy, according to a report on ATWOnline. The announcement came after a
meeting between the 11 heads of state of the Air Afrique member countries. It
was decided at the meeting to continue talks with Air France concerning
investments in a new African airline. Air France had committed itself to a
35% stake in creation of a new pan-African airline last year.
- American's New Long Haul ........
as the airline, which is in the
midst of building a new US$1.3B, 55-gate terminal at New York's Kennedy Int'l
Airport, is to introduce daily nonstop service between JFK & Tokyo on April
19. Tokyo will become American's 19th Int'l destination from JFK. The line
will fly the route with Boeing 777s, its newest aircraft with the longest
range. A 2nd nonstop flight on a DFW-Tokyo route 3 days a week with B-777s,
starts on June 1."
- Taking It On The Road ........
as Roadway Express, Inc., the U.S.
truck freight carrier, is starting an air freight service called Roadway Air
-- to focus on heavy freight, at least 150 pounds, rather than mail or small
parcels. Roadway Air has a strategic partnership with Integres Global
Logistics, of Rancho Cordova, Calif., for air shipping technology.
www.roadway.com
- On Target In New Jersey ........
as Target Logistics Services Inc.,
a wholly owned subsidiary of Target Logistics Inc., has acquired SDS
Logistics, a Newark, N.J.-based airfreight forwarder. SDS has been in
business since 1994, & Target Logistics Services Inc., based in Compton, CA.,
has annual gross revenues of US$135M. Chris Coppersmith, CEO of Target
Logistics Services, said of the acquisition: "SDS ideally complements our own
cargo operations in Newark & double our facilities at this vital gateway to
the huge New York-Metropolitan market."
- Exel Buys In Austria ........
as it has acquired All Cargo Logistics,
an Austrian air freight forwarder. Terms were not disclosed. ACL has operated
through three sites in Vienna, Linz & Innsbruck, providing services in
consumer products, foodstuffs & general manufacturing.
- Pilot To Co-pilot ........
as Pilot Air Freight now offers an online
solution, "Co-Pilot," which allows users to get quotes, book shipments, track
their progress, and receive automatic e-mail alerts when freight is shipped.
The product is a private extranet.
www.pilotair.com
- Looking For A New Loadmaster ........
as a 286-ton Korean Air MD-11
air freighter tipped backwards & fell on its tail, Jan. 9 -- leaving aircraft
nose & landing gear in the air -- ripping a 15 centimeter hole in the tail --
as a 4 wheel drive vehicle was unloaded under direction of Korean Air
loadmaster at Sydney Int'l Airport, in Qantas freight area. "The plane went
up very slowly; it didn't go up fast," loadmaster said. An airport
firefighter said it appeared plane incorrectly loaded, causing weight
imbalance with its cargo. Dah! Loadmaster job applications expected to
follow.
- UPS Says "No" To "bps Billy" ........
as there is at least one kind
of package that United Parcel Service wants nothing to do with -- "Billy
Dolls." They are Barbie-sized figures marketed toward gay men, which have
been available for 5 years wearing military & police uniforms, cowboy outfits
& leather biker gear. The problem arose when a new doll was recently
introduced in a new outfit -- a brown delivery-man uniform with a yellow
"bps" (Billy's Parcel Service) insignia on the shirt. Retailers describe
Billy & his pals, as "anatomically correct" and UPS lawyers say they are
"grotesquely so." [Perhaps reference to another kind of package.] UPS said
Billy's sexual orientation & physical attributes had nothing to do with the
company's reaction. "We don't care whether it's a local courier company
that's wearing uniforms like ours or a doll," UPS spokesman Norman Black said
Jan. 17. "Are you infringing on our brand & logo without permission? That's
the issue pure & simple." Despite demands that all the "Billy's" be
destroyed, Internet retailer BeProud.com kept selling the doll until they
sold out -- but continues to market the "cute" BPS doll. The retailer says;
"Dressed in his cute little uniform & shorts that reveal those muscular legs.
Make sure you request "rear delivery" when Billy is on duty. This Billy doll
features full BPS attire including a little package to be delivered. Be the
1st on your block to own this latest Billy doll." Oh brother!
www.beproud.com/gay-pride/misc-billy-doll.htm
Please click below for other sections:
Section A: Section: 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
The Cargo Letter Correspondents:
Michael S. McDaniel, Esq., Editor
(Countryman & McDaniel).
Cameron W. Roberts, Esq. (Countryman & McDaniel).
Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.
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