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The Cargo Letter
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Section A: Section: Trade, Financial & Inland News
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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
- Brown Negotiations Continue ........
as the Int'l Brotherhood of
Teamsters offered its initial wage proposals to United Parcel Service on June
14. Negotiations continue. The present contract, covering 230,000 Teamsters
employed by UPS, expires July 31. Teamsters' proposals also cover healthcare
benefits for retirees. "Things have been moving & we want to keep them
moving," said a Teamsters spokesman who declined to discuss specific demands
by the union. UPS said it remains optimistic that a balanced & fair agreement
will be reached before the current contract expires, and sees current
progress as an indication of the willingness of both parties to cooperate in
reaching a settlement. The sides also have to complete supplemental
agreements covering local issues. They have settled about half of the 3 dozen
or so local contracts.
UPS has for the 4th time been named to Fortune magazine's list of the "50
Best Companies for Minorities," rounding out the top 25 companies in this
year's list.
- ........
as the Int'l Civil Aviation Organization
has approved in principle a global war-risk insurance plan for commercial
airlines that have lost some or all of their commercial insurance coverage
since the hijackings of Sept. 11. It is designed to allow air carriers to
continue operating under reasonable financial conditions, to spread war-risk
coverage among all parties involved in aviation, including government, & to
provide adequate insurance coverage in the short- and medium-term while
allowing private insurance carriers to come back gradually into the market
The plan would provide 3rd-party coverage for airlines & other parties
involved in civil aviation through a nonprofit insurance entity backed by
state guarantees. A pool to meet claims would be built up primarily through
premiums & investment income earned on premiums. State guarantees would be
utilized only as a last resort. The plan caps coverage at US$1.5Bn per
insured/per occurrence, for claims in excess of the US$50M limit currently
available from the private insurance market. Should all 187 governments in
Montreal-based ICAO adopt the plan, coverage up to US$15Bn would be
available.
- Limiting The Risk ........
as the U.S. has demanded that all foreign
airlines serving the U.S. install new flight deck doors on their aircraft by
April 9, 2003. The decision will affect 1,921 foreign aircraft according to
estimates by the Federal Aviation Administration (FAA). In addition, the U.S.
also demands, as a temporary measure, that the airlines install locking
devices within 60 days of publication of the new regulation in the Federal
Register. The Int'l Civil Aviation Organization (ICAO) recently said that its
187 member-countries would install doors that meet security standards similar
to those adopted by the FAA but not until Nov. 2003, seven months after the
FAA deadline.
- United Parcel Service Happy ........
as it has welcomed the European
Commission's decision that the German postal & logistics group Deutsche Post
AG, must repay US$543M in state aid used to subsidize its parcel service.
UPS, a rival of Deutsche Post and of its affiliate DHL Worldwide Express, had
lodged complaints with the European Commission (EC) against the
anticompetitive activities of the German group in Europe. UPS has also
petitioned the U.S. Dept. of Transportation to withdraw the operating
licenses of DHL Airways, the U.S.-based express company in which Deutsche
Post has a stake. The DOT has refused to cancel DHL's licenses. The EC
decision on the refund of state aid "is a victory for fair competition and
customer choice," said Anton van der Lande, V.P., UPS public affairs Int'l.
"We expect the necessary controls to be implemented to prevent further
illegal state aid for Deutsche Post or any other postal operator," he added.
UPS said it would file the EC decision with the DOT as part of the
department's ongoing review of the relationship between Deutsche Post & DHL
Airways.
- United Airlines A Little Short ........
as it has filed for federal
loan guarantees with the Air Transportation Stabilization Board (ATSB)
requesting a loan of US$2Bn, with US$1.8Bn guaranteed by the ATSB. "United is
the perfect candidate for the ATSB program," said Chairman & CEO Jack
Creighton. "It was created to help carriers weather the liquidity challenges
associated with the Sept. 11, 2001 terrorist attacks on our nation." United
was both a target & a victim of the attacks.
- Memphis & LAX - World's Leaders ........
as with air cargo volume at
Memphis Int'l Airport up almost 45% so far this year over same period last
year, it now appears likely that it will rank as the world's busiest air
cargo airport in 2002 for the 11th year in a row. Domestic air cargo volume
at Memphis Int'l for the first 4 months of 2002 is up 58.4% over the same
time period for 2001. Total cargo handled is up 43.8%, reflecting a 9.69%
decrease in Int'l freight. Growth seems a result of FedEx Express now
carrying 70% of all the U.S. Postal Service (USPS) express mail through
Memphis Int'l Airport -- making Memphis the world's largest mail processing
center. Los Angeles Int'l Airport, the No. 2 ranked Int'l air cargo airport,
declined 14.1% to 2.12 million metric tons, & Hong Kong's 3rd place ranked
airport dropped 7.4% to 2.09 million metric tons. NOTE: LAX remains the
world's No. 1 final destination cargo port.
- VG Airlines Takes Wing ........
as Belgium's successor to collapsed
Sabena has launched in Brussels arriving nonstop from New York's JFK Int'l
Airport. The airline, created by Freddy Van Gaever & financier Tony Gram,
also flies to Brussels from Boston's Logan Airport and California's LAX. VG
Airlines said it intends to become the business traveler's choice to Europe.
The airline does not consider itself as a replacement for Sabena, the former
Belgian national carrier, but it has acquired many of the former's top ground
& flight crews and technical staff.
- FedEx Freight Going Up ........
as it will implement a 5.9% general
rate increase effective July 22, 2002. The increase will cover the company's
independent operating units, FedEx Freight East & FedEx Freight West.
- A Very Calculating FedEx ........
as it has new online planning tool
that allows shippers to obtain information about charges & fees before
shipping -- including excise, duties, VAT, Most Favored Nation rates & other
governmental fees that are levied on Int'l shipments to & from 42 countries.
- Done! ........
as Atlas Air & the Air Line Pilots Assn. have reached
tentative agreement for a 1st labor contract -- details of the contract
confidential at this time. On May 29, 2002, the National Mediation Board
released Atlas Air & its crewmembers from mediated negotiations, starting a
mandated 30-day cooling off period. That period would have ended at 12:01 AM
EST on June 28. Mediated negotiations resumed on June 25 & led to an
agreement late on June 27.
- FAA Catching Up On Old Business ........
as it is seeking US$536,000
in civil penalties against American for multiple alleged cargo security
violations. FAA special agents discovered the alleged violations by American
at 8 airports nationwide in late Oct. 2000, during a special nationwide
assessment of the airline's compliance with FAA security procedures.
Inspectors found that American failed to comply with requirements relating
to: cargo acceptance, cargo screening, training of screening personnel, &
maintenance of training records for cargo acceptance & screening personnel.
- United Bigger At ORD ........
as it has opened a new cargo terminal
at Chicago's O'Hare Int'l Airport, said the largest cargo & mail-processing
facility in North America. The facility underwent a US$63M upgrade, expanding
to more than 700,000 square feet, from 575,000 square feet. United's cargo
center can handle 100,000 pounds a freight per hour. Its mail-handling system
can handle 7,400 pieces of mail per hour through its more than 1,000 linear
feet of conveyors, and sorting slides & induction stations. The new center
includes a cooler-freezer building.
- China Southern Goes Postal ........
as the Chinese carrier is to
partner with the Chinese postal authority in restructuring the mail carrier
named China Postal Airlines, a deal that could open the way for its expansion
from passenger & belly freight to courier services & parcel deliveries. China
Southern is to initially pay US$18M for a 49% stake in China Postal. In the
past 2 fiscal years, the mail carrier reported net losses of more than US$8M.
The consolidation of mail & express delivery companies & airlines has a
precedent in Germany involving Deutsche Post, & DHL. China Postal operates a
fleet of 10 aircraft, has a hub in Shanghai, and with China State Post has a
monopoly on domestic express mail delivery. Mail volume is reported to have
doubled last year. CSA plans to split its freight & passenger businesses into
independent entities & move its cargo division to Guangdong's Baiyun Int'l
Airport in Oct. next year. On turning Shenzhen into its hub, CSA said the
Pearl River Delta represents the most important industrial & trading base in
southern China with more than 40,000 domestic & foreign-owned companies. CSA
has taken delivery of its 1st all-cargo Boeing 747-400F.
- Consignia Less Postal ........
as the British postal service
company will restructure its U.K. parcels business & cut 17,000 jobs, as it
reported a US$1.6Bn pre-tax deficit for the year ended in March. The 17,000
job reduction is in addition to a plan announced in March to eliminate 13,000
jobs. Consignia expects to reduce its staff by 30,000 jobs over the next 3
years.
- Can CanJet? ........
as Canada may have a re-launched low-cost
carrier named CanJet Airlines, which has announced it has met all the
government regulatory requirements & has been issued an operating
certificate. The IMP Group, based in Halifax, Nova Scotia, is one of Canada's
largest aviation companies. CanJet operates a fleet of 4 B737-200 series,
120-passenger aircraft on its route network in central & eastern Canada.
- US Airways Goes Door To Door ........
as it has launched a new online
cargo service geared toward small & medium-sized shippers in the U.S. The new
service, U.S. Airways Door-to-Door, integrates flights with freight trucking
operations to offer efficient service between pickup & delivery points
anywhere in the U.S.
www.usairwaysDoortoDoor.com
- Volumes ........
British Airways (BA) cargo traffic, measured in cargo ton
kilometers, fell by 3.7% during the month of May, compared with same month in
2001.
Cathay Pacific saw May's cargo growth leap 21% year-on-year, as
volumes rose to 66,430 tons for the month -- cumulative figures for the year
to date show a 12.1% increase in cargo traffic.
Frankfurt Airport(Fraport), Germany's largest, reports a 2% rise in air cargo
tonnage, at 121,100 metric tons in May this year, over same month in 2001 --
also its 1st positive result in May with 39,209 takeoffs and landings, up 0.4%
over the same period last year.
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
Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.
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