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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
FF World Ocean Briefs
The Cargo Letter Cargo Damage Dispatches
- Floating Missiles ........
as the U.S. Coast Guard has called on the
U.N. to overhaul its maritime regulations to prevent terrorists using ships
as seaborne missiles against coastal cities & to clamp down on weapons
smuggling. A paper submitted to the U.N.'s Int'l Maritime Organization (IMO)
on Jan. 15 calls for security officers on all ships. It also called for
identification checks for all seafarers; security assessments to be conducted
on all ports, and discussions on the electronic sealing of all shipping
containers & the fitting of hijack alarms. "A critical part of improving
maritime security is ensuring that the seafarers involved in the maritime
transportation ..... pose no threat to national security," said the U.S.
Coast Guard paper. Since Sept. 11, maritime security experts have repeatedly
warned of the U.S.' vulnerability to attack from the sea. They say fuel-laden
tankers could be seized & used as floating missiles, or any one of tens of
thousands of shipping containers shuttled into the country each day could contain a nuclear device.
- Fatal Study ........
as the disappearance of more than 200
supertankers & container ships during past 20 years is now blamed by
scientists on monster waves of up to 36 meters. Team of oceanographers at
Technical University in Berlin re-created in tank gigantic "one-off" seas
capable of breaking a 180m-long ship in half. Monster waves have provided
material for countless novels & films, including Sebastian Junger's recent
bestseller "The Perfect Storm."
- Slower Growth ........
as world seaborne trade slowed markedly in
2001, after a boom year in 2000, according to a report by the UN Conference
on Trade & Development, based in Geneva. The 2001 growth rate of 3.6% is
"likely to have slumped considerably in 2001 ... possibly to as low as 2%,"
the U.N. body said, citing preliminary projections. The projected decline is
mainly attributable to the impact of the economic downturn observed in the
U.S. and, to a lesser extent, in Europe, UNCTAD said in a new report, "Review
of Maritime Transport 2001." In 2000, world seaborne trade for all
commodities reached a record high of 5.88 billion tons. Developing countries
in Asia now own 14.3% of world tonnage, accounting for 73.6% of the fleet of
all developing countries, UNCTAD statistics show. African developing
countries, by contrast, own 0.7% of world tonnage. UNCTAD said registration
of ships by developed market-economy countries & major open-registry
countries accounted for 25.2% & 48.5% of the world fleet, respectively.
- Darkest Before The Dawn ........
as overcapacity pressures will
negatively impact the container shipping industry throughout 2002, but a
recovery in prices may follow in mid-2003, according to a report by Drewry
Shipping Consultants. The report forecasts growth in world cellular
containership capacity of 14.5% this year, well in excess of a predicted
increase in container trade volume of 5.8%. "This will keep vessel
utilization levels under pressure," Drewry said. The U.K.-based consultancy
firm does not expect any significant recovery to take place in 2002, but said
it is "hopeful of an improving pricing environment from mid-2003 onwards."
Drewry reported that world container port throughput was expected to have
increased by just 4.3% last year, a record low growth rate in the container
industry's history.
- New FMC Chief Tapped ........
as President Bush intends to nominate
Steven Robert Blust to commissioner of the U.S. Federal Maritime Commission &
upon confirmation designate him chairman of the agency for a 5 year term.
Blust is currently pres. & CEO of Bay Int'l Terminals in Tampa, Fla. He
joined Lykes Bros. Steamship Co. in 1987 as V.P. from 1991 to 1996. Blust
also worked for the Jacksonville Port Authority in Florida from 1985 to 1987.
Blust is graduate of the U.S. Merchant Marine Academy & holds an MBA from
Tulane University. If confirmed, Blust would replace Harold J. Creel, Jr.,
who has chaired the FMC since Feb. 1996. Antony M. Merck has resigned as
a commissioner of the FMC.
- Going Up ........
as TSA carriers have noted a significant decline
in overall profitability since the last round of service contracts took
effect. Internal estimates by the 14 individual lines in the Transpacific
Stabilization Agreement (TSA) indicate combined losses of more than US$1.2B
in 2002 if current rates continue into the coming contract season. According
to industry sources, eastbound transpacific freight rates have decreased by
an estimated 35% since last May. Transpacific lines say they will implement a
program whereby rates in their 2002 contracts, effective from May 1, will be
restored to levels previously in effect on May 1, 2001. Carriers will review
& monitor individual market sectors, and in some instances may take a more
commodity-specific approach to pricing than in the past. TSA members include:
APL, CMA CGM, Cosco, Evergreen, Hanjin, Hapag-Lloyd, HMM, K Line, Maersk
Sealand, MOL, P&O Nedlloyd, NYK, OOCL & Yang Ming.
- Europe/Middle East Rates Up ........
as Member lines of the Europe
Middle East Rate Agreement will raise rates from the UK, North Continent &
Scandinavia to Mideast Gulf ports by US$200 per 20-foot container and US$300
per 40-footer, effective March 1. Members of EMERA are AWS (Ellerman), CMA
CGM, Hapag-Lloyd, A.P. Moller-Maersk, Sealand, P&O Nedlloyd, Safmarine &
United Arab Shipping Co.
- Singapore War Risk Rates Could Soar ........
as Commercial insurance
premiums could soar after the city-state detained 13 men linked to Osama bin
Laden's al Qaeda group for engaging in alleged bomb plots here, industry
sources said on Jan. 15. "With the heightened awareness of the risks of
terrorism, it is likely that premiums will increase," a spokeswoman from
Great Eastern Life Holdings said. "This is in addition to the general
shrinkage of reinsurance capacity in the sense that reinsurance companies are
now reducing the capacity to take on such risks." Reinsurers -- the firms
that absorb risks beyond an insurer's underwriting capacity -- have
dramatically slashed their exposure to terrorism risks around the world after
incurring billions of dollars in losses after deadly Sept. 11 attacks on the
U.S., which bin Laden masterminded. The losses have also forced reductions in
capacity across the board as reinsurers put their businesses back on track,
causing insurance premiums to rise globally as corporations scramble to
access the more limited cover available. Now businesses in multiracial &
normally peaceful Singapore face the possibility of fresh hikes after the
government disclosed that it had detained a group of local Muslim men last
month for their alleged involvement in bomb plots.
- Container Lines Reduce War Surcharge ........
as various rate
agreements are cutting levels of their war risk surcharges insurance.
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The Europe Middle East Rate Agreement (Emera), Aqaba Rate Agreement (ARA)
and Jeddah Service Group (JSG) have all announced reductions in extra risk
insurance surcharges applicable to the Middle East, Aqaba & Jeddah
respectively. Starting Jan. 22, for both eastbound & westbound vessels, Emera
member lines have applied a reduced extra risk insurance surcharge of US$72
per TEU, down from $102 per TEU. Member lines are AWS (Ellerman), CMA CGM,
Hapag-Lloyd, P&O Nedlloyd, Safmarine & United Arab Shipping. Also from Jan.
22, ARA member lines have applied a reduced extra risk insurance surcharge of
US$53 per TEU, down from US$101 per TEU. Member lines of ARA are AWS
(Ellerman), CMA CGM, Contship Container Lines, Hapag-Lloyd, Maersk Sealand,
P&O Nedlloyd, Safmarine & United Arab Shipping.
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The Far East Freight Conference member lines are withdrawing the
Emergency Surcharge for Suez Canal/Red Sea Transit originally introduced 27
September 2001 in the aftermath of the terror attacks on the US. The
surcharge, currently US$10 per TEU will be reduced to zero on January 15. The
FEFC secretariat cautions that the lines will "continue to monitor the
situation closely, and should circumstances dictate, will adjust this level
again with short notice if necessary."
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The India Pakistan Bangladesh Ceylon Conference (IPBCC) lines have
announced reduced extra risk insurance surcharges following the decision by
insurance underwriters to reduce the Suez Transit extra risk premium to zero.
Starting Jan. 15, IPBCC lines will revise their extra risk insurance
surcharges for cargo to & from Pakistan from US$130 per TEU to US$120 per
TEU, dropping the US$10 surcharge for transiting the Suez. For shipments to &
from India and Bangladesh transiting the Suez Canal the charge has been
reduced from US$10 to zero. For Sri Lanka shipments, the charge is down from
US$120 to US$100 per TEU.
- Danube Again Blue For Cargo? ........
as Serbia expects to start
clearing war debris from a crucial section of the Danube river artery in
March. Collapsed bridges & unexploded bombs still litter the central Europe
freight route since NATO's 1999 air strikes against the government of
President Slobodan Milosevic. The Danube, Europe's 2nd largest river, has
been largely blocked to shipping at Novi Sad since NATO's 11-week bombing to
halt Serbian repression of Kosovo's Albanians when autocrat Milosevic ruled
Yugoslavia. The bombs destroyed bridges, leaving tons of concrete, spent
munitions & unexploded ordnance on the river bed -- causing lost revenue
mainly for shipping firms of up to US$892.9M since 1999. Traffic picked up
last year after the Danube Commission marked a 5 km channel near Novi Sad.
But that channel can be hard to navigate & much debris remains in the river,
for example 20,000 tons of concrete from one bridge alone.
- Taiwan's Evergreen Sail For England ........
as the group has set up
a U.K.-flag shipowning company to take advantage of the new British tonnage
tax regime & will also trade as a container shipping line. Hatsu Marine Ltd.,
formally established on Jan. 2, is headquartered in London. It owns one
container vessel, the 6,332 TEU M/V Hatsu Eagle, which trades on the
transpacific route. The company will take delivery in March of a sister, M/V
Hatsu Envoy. Three further ships in the series are also expected to join the
Hatsu Marine Ltd. fleet. Over the next few years, the U.K. company will take
ownership of additional container vessels, including some to be transferred
from other Evergreen-affiliated companies.
- Carnival Cruises Pours On The Coal ........
as the U.S. based carrier has
raised its offer for P&O Princess by 12% to about US$5.0B as it fights to win
shareholders over. The cruise giant is hoping to spoil Princess' planned
merger with rival Royal Caribbean & aims to have its move gather full
momentum ahead of a Feb. 14 extraordinary general meeting at Princess.
Carnival, fighting to retain its top slot in global cruising, on Jan. 17
raised its cash and shares bid for P&O Princess on the condition the British
firm could exit a joint venture with Royal Caribbean in early 2003 at no
cost.
- Ice Trapped M/V Polar Star Rescued After 27 Days ........
as
Australian icebreaker RSV Aurora Australis, smashed through 8 km of pack ice
during a 12 hour operation begun after strong northerly winds abated to reach
stranded supply ship M/V Polar Bird, Jan. 13 . Icebreaker was diverted to
help after the Polar Bird trapped in ice in Prydz Bay on 16 Dec. on way to
Mawson Station. Polar Bird able will follow the Aurora Australis to safety
along passage cleared through dense pack ice. A helicopter shuttle of 34
Australian Antarctic expeditioners from Polar Bird to Aurora was completed
earlier this month. That operation left only Polar Bird's crew of 21 & 4
expeditioners - the expedition leader, doctor, radio operator & weather
expert - on the stranded ship. Follow our entire story, with photos and
special features Online .....
www.cargolaw.com/presentations_casualties.html#Polar_Star.A1
- CSX World Terminals gets A New One ........
as it has been named
as future operator of Pusan Newport, a new container terminal in Korean port
of Pusan (3rd largest container port in the world), and will acquire up to
24.5% equity in the consortium of companies building the facility. CSX World
Terminals, a subsidiary of CSX Corp., has signed an operations, maintenance &
management agreement for the new terminal. Pusan Newport Co. will commence
operation in early 2006.
- Shenzhen Hits Top 10 ........
as China's southern port of Shenzhen is
now ranked in the world's top 10 Int'l container terminals. Shenzhen managed
to ease into the top flight after handling 5 million TEU of freight last
year, according to a Xinhuanet report. The container terminal has seen
average year-on-year growth of 44% over the past 5 years and now serves 69
overseas routes with a monthly turnover of 417 ships.
- Panama Stays On Top ........
as the port of Colon (Cristobal) at the
Atlantic end of the Panama Canal remained the busiest port in the Latin
American & Caribbean region in 2001, according to statistics compiled by UN
Economic Commission for the Caribbean & Latin America. The Panamanian port
handled 1.21 million TEUs last year, down from 1.35 million TEUs in 2000.
- "E" ANZDL ........
as Australia-New Zealand Direct Line's new online
tool allows shippers to automate the distribution of information &
instructions required by vendors & consignees. ANZDL says shippers will be
able to supply trading partners, including forwarders & consignees with
access to shipping documentation & information, such as fumigation
certificates, bills of lading, & arrival notices.
www.myanzdl.com
- Where's OSK? ........
as MOL, Ltd. has officially changed the name of
its North American container shipping agency and subsidiary from Mitsui OSK
Lines (America) Inc. to MOL (America) Inc. -- saying that the name change is
part of the MOL liner division's global branding campaign. In addition to all
printed materials, the company's e-mail address has also been changed from
mitsuiosk.com to molamerica.com.
- Major Coin ........
as the U.S. FMC has issued NVOCC -- Universal
Logistic Forwarding Co. a US$1.23M fine for violating the 1984 Shipping Act.
The FMC's Bureau of Enforcement began investigating the activities in Aug.
2000. The agency alleged that Universal Logistic Forwarding violated the
Shipping Act by obtaining transportation at less than rates & charges
applicable through the service contract of another NVO, Translink, to which
it is not a signatory or an affiliate. The FMC said. "The carrier's
obligation with respect to rate levels is to adhere to its published tariff.
The commission is not in the business of monitoring the reasonableness of
those rates & charges."
- New Queen A Go ........
as worlds biggest cruise ship, the 150,00 ton
RMS Queen Mary 2, is being built by Cunard -- with 1st steel cut Jan. 24. The
344 meter-long ship will carry 2,800 passengers & should be launched in 2004.
The ship will cost Cunard $750M (about £518m) to build & will be constructed
at Chantiers de l’Atlantique shipyards in N.W. France. Rolls-Royce has signed
a deal to provide engines for the super-liner -- offering a top speed of 30
knots. By comparison, our present RMS Queen Mary, now at permanent anchor in
Long Beach ruled the seas at about 47,000 tons. The new Queen will truly be
regal.
- 1st Electric-Powered LNG Vessel ........
as Samsung Heavy Industries
has built a 147,000 cbm electric-powered LNG vessel, thus becoming 1st to
build such a vessel. The vessel’s propellers are powered by electric energy.
Turbine engines use naturally gasified LNG, which is stored in the vessel’s
tanks. This development is a significant enhancement in the field of
economical efficiency of propulsion systems in LNG vessels.
- This Month In U.S. Naval History ........
two events worth of note:
-
Jan, 1863 - CSS Alabama sinks USS Hatteras off Galveston in a
pivotal naval struggle of the American Civil War.
-
Jan, 1944 - Aircraft from USS Block Island make 1st aircraft
rocket attack on a German submarine as the Free World struggles to save
itself from the shackles of permanent world domination by a Nazi conquest.
Visit our new Vessel Casualties & Pirate Activity Database ......... where
daily updates of these ship news are posted.
Stay up to date!
www.cargolaw.com/presentations_casualties.html
We're sorry, but there were so many sinkings, explosions, pirate attacks &
hijackings, fires, cargo mishaps, battles on the water, weapons smuggling
vessels, & 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!!
SPECIAL NOTE: There are dramatic new pictures at our special "Gallery of
Cargo Loss" website feature.
www.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!
www.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: 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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