|
The Cargo Letter
|
|
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
- IMB Pirate Warning ........
as ships carrying huge loads of highly
flammable natural gas could be hijacked by terrorists & used in suicide
attacks, a global piracy watchdog warned this month. Forged ship & crew
travel documents can be easily obtained for tankers carrying oil or liquefied
gases, facilitating their use by terrorists "to undergo suicide missions for
their cause," the Int'l Maritime Bureau's Piracy Reporting Center said.
"After the Sept. 11 terrorist attacks in the U.S., there is now a real fear
that terrorists could use a ship as a weapon," a report by the center said.
"Security should become a top priority for the maritime industry." The global
piracy agency said the number of pirate attacks worldwide in 2001 declined
from a historic peak the year before, but guns & violence were more common
and that hijacks for ransom had emerged as a disturbing new trend. While more
vigilant police patrols helped reduce attacks in the Malacca Straits near
Malaysia - one of the world's busiest shipping lanes -- killings & assaults
by pirates increased. In total, 335 pirate attacks were reported last year,
134 fewer than the 469 reported in 2000. But despite the decline, "the
underlying trend since the center began compiling statistics in 1991 remains
firmly upwards," it said. The waters of Indonesia's sprawling archipelago
remained the most dangerous, with the 91 attacks reported there in 2001,
India with 27 attacks and Bangladesh with 25. Twenty-one people were killed
by pirates in 2001. In 2000, there were 15 piracy deaths, although another 57
people were killed by terrorist bombs aboard boats, including the USS Cole.
Hijackings & the seizure of a vessel for its cargo rather than hit-and-run
raids to rob crew & ships' safes doubled to 16 in 2001 from 8 in 2000.
- The Top Ten ........
as according to figures released by the Port of
Hamburg Marketing Assn. , there leaders were: The 1st 4 places were unchanged
from 2000. Hong Kong retained top spot with 17.90 million TEU, down 1.1%
year-on-year. Singapore processed 15.52 million TEU, down 9%, Pusan 7.80
million, up 3.4%, and Kaohsiung 7.54 million, up 1.5%. Shanghai made a
particularly strong showing for 5th place, displacing Rotterdam. Its 6.33
million TEU represented a 12.8% improvement. The next 5 places taken by
Rotterdam (6.10 million TEU, down 2.8% year-on-year), Los Angeles (5.18
million, up 6.2%), Hamburg (4.69 million, up 10.4%), Long Beach (4.46
million, down 3%) and Antwerp (4.22 million, up 3.3%). In fact, Long Beach &
Los Angeles are virtually the same place -- thus combined at 9.64 million TEU
for 3rd place.
- China Tariff & Deposit? ........
as new requirements have been adopted
for the filing of tariffs & rates by ocean carriers & NVOCCs that appear to
defy the trend towards deregulation in Int'l container shipping. The
"Regulations on Int'l Maritime Transportation of the PRC" would apply to
freight moving into & out of mainland China, including the special
administrative regions of Hong Kong & Macao. The regulations were adopted by
China's State Council on Dec. 5, & would require ocean carriers & NVOCCs to
file freight rates -- both published rates & service contract rates -- with
an appropriate government agency. Published rates would only become effective
30 days after filing, while service contract rates would be effective 24
hours after filing, according to industry sources. The regulations spell out
requirements that carriers & NVOCCs apply for a license, and that each NVOCC
posts a "deposit" (we assume cash) of at least 800,000 Renminbi (about
US$96,000). Industry organizations, including the U.S. National Industrial
Transportation League & the Int'l Federation of Freight Forwarders Assns.
(FIATA), are considering their responses to the new regulations & trying to
assess the exact impact of the rules. The date these regulations would take
effect is not clear.
- Get Your U.S. Bond ........
as the FMC will soon issue a notification
to eliminate self-insurance as a means of evidencing financial responsibility
& increase actual surety bond coverage requirements to 100%.
- Reefer Madness? ........
as the National Customs Brokers Assn. of
America has asked the U.S. FMC to closely scrutinize the Westbound
Transpacific Stabilization Agreement's plan to stabilize its refrigerated
container trade. "NCBFAA is concerned that the failure to challenge this
particular proposal may well be viewed by the carriers as precedent &
authority for expanding the practice into other trades," said NCBFAA. "With
that in mind, the NCBFAA requests that the FMC exercise its authority under
Section 6(g) of the 1984 Shipping Act to ascertain whether the proposal is
substantially anticompetitive & should be withdrawn or enjoined," NCBFAA
said. The WTSA filed the amendment for its "Reefer Trade Management Program"
with the FMC on Feb. 4. Under the plan, carriers would designate a member
carriers' market share percentage based on historic filings, and carriers
that exceed their allocations would have to pay compensation to carriers
unable to meet their assigned shares. "It is nonetheless readily apparent
that the proposal offers a great possibility, if not the likelihood, of
abuse," NCBFAA said. "The reefer trade, particularly with respect to produce
is relatively competitive, but is particularly marked by the time sensitive
nature of the product. Any mechanism that has the effect of removing shipper
choices in this market will necessarily rebound to the detriment of smaller,
less favored shippers once a carrier nears its specified 'program share." In
1996, the FMC initiated a detailed investigation into a similar capacity
management plan proposed by the former Transpacific Stabilization Agreement.
The plan was later dropped. >> The National Industrial Transportation League
has raised concern similar to that of NCBFAA.
- Getting Their Ship Together? ........
as the European Court of
Justice said it will deliver preliminary rulings Feb. 28 on appeals by
container lines. These are rulings on decisions by the European Commission
preventing liner conferences from jointly setting prices for inland transport
in Europe & cooperating on withdrawing ships from service. A victory by the
carriers would force the EU to revamp its regulatory framework for liner
shipping, according to the Journal of Commerce.
- Euro Feeder? ........
as Maersk Sealand has warned that deep-sea
carriers could start serving Britain by feeder ships from continental Europe
because of a critical shortage of capacity for the largest container vessels.
- FMC Loosing Patience ........
as the U.S. Federal Maritime Comm.
has become increasingly impatient with the effort to reform unfair shipping
practices in Japan & China, and is considering future actions. The FMC has
the authority under the 1984 Shipping Act & the 1998 Ocean Shipping Reform
Act to defend the interests of U.S. shipping in cases of unfair port &
carrier practices used by other countries.
- JAPAN: ........
For years, carriers in the Japan/U.S. trades could not make
operational changes without the permission of the Japan Harbor Transportation
Assn. (JHTA), which represents the Japanese waterfront employers. JHTA
operates under the permission & regulatory authority of the Japanese Ministry
of Transport. JHTA's "prior consultation authority" was used to extract fees
& impose operational restrictions, such as limits on Sunday work. In 1997 FMC
responded by imposing a US$100,000 fine per call on all Japan-flag vessels
calling at U.S. ports. The actual amount of the fines collected were later
negotiated as part of the U.S.-Japan agreement whereby the Japanese
government promised to make changes to its port practices. Still, changes to
Japan's port practices have so far been slow in coming.
- CHINA: ........
The main restrictive practices identified by the FMC in the
U.S./China trade were Chinese regulations prohibiting non-Chinese vessel
operators from creating branch offices in locations other than port cities at
which they or their carrier partners have regular vessel calls resulting in
their inability to directly serve inland customers. More, there are Chinese
regulations limiting the types of entities which can create vessel agency
operations to Chinese, state-owned entities. This essentially requires
non-Chinese liner operators to employ vessel agents that are subsidiaries of
their Chinese competitors.
- Another Boost For East Coast Ports? ........
as the Int'l Longshore
& Warehouse Union (ILWU) will open contract talks with West Coast waterfront
employers in April. But 1st, the ILWU has filed an unfair labor practice
charge with the National Labor Relations Board against the Pacific Maritime
Assn., the employer group which negotiates with the union. The ILWU alleges
that the PMA "has failed, refused and/or unlawfully delayed furnishing
information & documents relevant to the union's representation duties,
contract administration & contract negotiations."
The union said it requested the information on Aug. 17. Jim Spinosa, ILWU
president, said the PMA has failed to provide the union with information
about new technologies it want to introduce on West Coast docks, considered
to be a key negotiating point for the renewal of the longshore contract that
expires July 1. Stay tuned.
- Boost For East Coast Rates ........
as Trans-Atlantic container
carriers are planning to increase freight rates to stave off massive losses.
Conference carriers Atlantic Container Line, Hapag-Lloyd, Mediterranean
Shipping Co., Maersk Sealand, NYK, OOCL and P&O Nedlloyd said in joint
announcement by TACA that tariff rates will be increased by:
* US$240 per 20-foot container, US$300 per 40-foot container, or US$15 per
freight ton for westbound shipments, effective June 1.
* An additional US$120 per 20-foot container, US$150 per 40-foot container,
or US$8 per freight ton in the eastbound direction, effective March 15.
Rates have decreased by as much as 50% since early 2001, the conference said.
- Pacific Coming Back ........
as the trend of decreasing cargo volumes
in the eastbound transpacific trade may have finally come to an end,
according to the shipping research arm of Japan's Mitsui O.S.K. Lines. In
Dec, eastbound cargo volumes rose by 4.7%, when compared to Dec. 2000, it
reported. This increase broke a cycle of monthly volume decreases of 1% in
Oct. 2001 & 2.4% in Nov. 2001.
- Celebrating "Delay 2002" At Lagos ........
as Nigeria's main
seaports are clogged once again only 3 months after shaking off the country's
worst cargo buildup in 25 years. "The situation could deteriorate to last
year's level unless port authorities act fast," said local officials. The
Nigerian Ports Authority (NPA) blamed the congestion on a rush by importers
to beat new restrictions on importing used vehicles. A report by Lloyds
Shipping Intelligence Service, London, said congestion is expected to persist
for rest of the year. Nigerian ports were jammed for almost 6 months last
year after the government introduced destination inspection in April to
replace pre-shipment inspection. The congestion, which eased in Oct. after
government set up several committees to tackle the problem, was Nigeria's
worst since a surge of cement imports clogged Nigerian ports for months in
the mid-1970s.
- Atlantic Container Line Goes Private ........
as it will no longer have
its shares listed on the Oslo stock exchange. The last date of trading the
ACL share over the stock exchange will be March 1. Olav Rakkenes, CEO of ACL,
said that majority shareholder Grimaldi is seeking to buy the remaining
shares in the company. Naples-based Grimaldi currently has 92.2% of the
company's 13 million shares, and intends to buy the outstanding one million
shares.
- Value In ValuShip? ........
as the new transatlantic niche carrier may
end its transatlantic service after only 2 eastbound sailings. The 1st
chartered vessel, the 1,022-TEU M/V Brave Eagle, sailed from the port of
Vancouver, British Columbia, on Dec. 20 & arrived in the port of Rotterdam in
mid-Jan. The vessel did not proceed on its westbound sailing, contrary to
plans. The 2nd ship has just arrived in Europe this, but Central Shipping,
the European agent for ValuShip, was unable to say whether the service would
continue after the vessel's arrival. Canada-based ValuShip is run by Klaus
Glusing, the former head of Cast.
- Paying The Price? ........
as Master Gilbert C. Thurston, chief
officer of Sabine Transportation Co.'s M/T Trinity was indicted on misconduct
& negligence charges Feb. 6 in death of a crewman ordered to clean ship's
emptied cargo tanks still filled with toxic fumes -- could face up to 10
years in prison. Trinity was New York for Houston May 18, 2000, when Thurston
said ordered pumpman Frederic Albert Cambra Jr. to mop empty cargo tanks.
Cambra overcome by fumes in tanks -- had been filled with chemical gasoline
additive MTBE -- died after crew tried to revive him.
- Eagle Eyes ........
as on Feb. 25 the U.S. Coast Guard restarted a 60
year old WWII program by sending letters to 9,000 Maine fishermen asking them
to serve as "eyes & ears" & alert the Coast Guard whenever they spot
suspicious or terrorist activities. Officials plan to register participants
in the program, called "Coastal Beacons." They will also inspect their boats
& conduct background checks on operators. A similar program will go into
effect this summer on the waters around southeast Michigan, while Coast Guard
districts in FL & CA are inquiring about programs of their own.
- Ghost Rising ........
as the Thai-owned 700-dwt M/T Pak One, sailing
from Sriracha port to Vietnam with 650 tons of liquefied petroleum gas, sank
in the Gulf of Thailand in 1996. Now -- the ship resurfaced on Feb. 6 -- bow
upright 37.5 miles S. of the popular tourist island of Koh Samet in Rayong
province. Hazard to navigation & could explode. WOW! "It sank & ran aground
after a storm. Eight members of its Thai crew drowned & 2 survived. We paid
out 2.4 million baht of compensation for the dead crew," said the insurance
broker. Now the salvage begins. Additional information at:
www.cargolaw.com/presentations_casualties.html
- This Month in Naval History ........
as in 1800 - USS Essex becomes
the 1st U.S. Navy vessel to cross the Equator. In 1890 - USS Omaha sailors &
marines assist Hodogary, Japan, in subduing a large fire that threatened the
city. In 1971 - Moonwalk by Capt. Alan B. Shepherd, Jr., commander of Apollo
14, & Cmdr. Edgar D. Mitchell, lunar module pilot.
Naval Historical Center:
www.history.navy.mil
Visit our Vessel Casualties & Pirate Activity Database ......... where daily
updates of vessel losses & mishaps are posted.
Stay up to date!
www.cargolaw.com/presentations_casualties.html
We're sorry, but there were so many sinkings, explosions, pirate attacks,
fires, cargo mishaps, ghosts ships (2 this month) & other disasters at sea
that we do not have room to print even the highlights this month. Many people
lost their lives at sea this month!!
But you can read about all the disasters at our special Internet web feature
which provides full details of each event. Our Daily Vessel Casualties &
Pirate Activity Database is updated for you twice daily!
www.cargolaw.com/presentations_casualties.html
SPECIAL NOTE: Please also view dramatic pictures at our special "Gallery of
Cargo Loss" website feature.
www.cargolaw.com/gallery.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.
[an error occurred while processing this directive]