Law Offices of Countryman & McDaniel
THE CARGO LETTER 
Air & Ocean Logistics - Customs Broker News
31 August 2006
Good Thursday Morning from our Observation Deck......overlooking the officially designated "Cargo City" area and...... Runway 25-Right, at Los Angeles International Airport, voted "Best Cargo Airport in North America." Here is what happened during August 2006 for our industry.
There will be no The Cargo Letter in Sept. 2006 as we journey to Shanghai for the FIATA World Congress 2006. Meanwhile, please pay very close attention in this edition for our world request to honor sacrifice -- and to name a vessel M/V Marty Johnson.
We are often asked whether Countryman & McDaniel, conducts training seminars. Yes, from multiple Fortune 100 companies, to smaller forwarders, to the U.S. government, to insurance companies -- for years we have conducted inovative programs for domestic & Int'l claims, Customs, security, trade compliance & post 9/11 industry business practice. McD
To help you find what you need -- FAST -- there's now a transport search engine installed at our Cargo Law.com website!
Contribute your knowledge, stories & company information.......by e-mail to The Cargo Letter. We strive to bring you useful information which is timely & topical. Be sure to visit our website.
Our corporate sponsor &endash;- Interpool, Inc. -- named again to Forbes "Best 200 Small Companies" List -- for the 2nd consecutive year! -- http://www.interpool.com/The Cargo Letter Archives of Past Issues
Michael S. McDaniel, Editor, Countryman & McDaniel, forwarder/broker/trade consultant attorneys at LAX.
INDEX to The Cargo Letter:
OUR Top Story***
***The Movement To Name M/V Marty Johnson ___
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs ______________
2. The Cargo Letter Financial Page ______________
OUR "B" Section: FF World Ocean News***
3. Freight Forwarder World Air Briefs ____________
OUR "C" Section: FF World Ocean News***
4. FF World Ocean Briefs _____________________
5. The Cargo Letter Cargo Damage Dispatches _____
**Back By Popular Demand**
OUR "D" Section: FF in Cyberspace***
6. The Cargo Letter "Cyber Ports of Call" _________
OUR "E" Section: The Forwarder/Broker World***
7. New Transport Related Legal Cases ___________
Back To Main Page
OUR Top Story***
***The Movement To Name M/V Marty Johnson ....... as on July 31 2006 a young Naval Architect named Marty Johnson died in the heroic U.S. atempt to save the Japanese car carrier M/V Cougar Ace in the North Pacific.
Rather than tell the story here -- this is an Int'l incident you must experience first hand. We now urge you learn this truly incredible story & add your name to the growing list of those around the world who now petition for a vessel name change to M/V Marty Johnson. Go to our photo feature to understand.
Join us now .... it is the right thing for YOU to do. It is a slight effort on your part -- but we need your help today -- right now. PLEASE VISIT.
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs _____________
***Living With A Bigger Peak ...... as traffic at major U.S. based retail ports is already in peak season mode, and if the current rate continues, Aug. could match Oct. as the busiest month of the year, according to the recently-released August Port Tracker report by the National Retail Federation, a retail trade association, and Global Insight, a provider of economic information. If this increased volume trend continues shippers need to start planning now to deal with expected future reductions in free time, additional constraints on how & when they can access terminals, and reduced flexibility in the use of providers' equipment.
***Venezuela Is No Go ...... as the U.S. will no longer authorize exports of defense items, effective immediately. The State Dept., which oversees exports of defense materials, said in a Federal Register notice published Aug. 17 that all licenses & approvals to ship these items to Venezuela, either under the Arms Export Control Act or Int'l Traffic in Arms Regulations (ITAR), are revoked.
***U.S. & Philippines Hit Illegal Rag Trade ..... as they have entered an agreement to cooperate on stopping illegal transshipments of textiles & apparel through the Philippines to the U.S. The agreement provides for customs cooperation, identification of the actual textiles & apparel manufacturers & joint verification visits to provide both governments with the information needed to stop textiles and apparel transshipments. The Philippines exports 80% of its textiles to the U.S. In 2005, U.S. textile & apparel imports comprised US$2Bn of the US$9.2Bn in merchandise imports from the Philippines. The U.S. has entered similar agreements to crack down on textile & apparel transshipments from Hong Kong & Macau, and is currently negotiating on these issues with Indonesia, Malaysia, South Korea & Taiwan.
***U.S. Bread To Lebanon..... as the Dept. of Agriculture has donated 25,000 metric tons of hard red winter wheat. The donation will arrive in Beirut in mid-Sept. "With this wheat, Lebanon's milling & flour industry will be able to replenish its rapidly dwindling supplies & make bread readily available," said U.S. Agriculture Secretary Mike Johanns in a statement.
***U.S. Agriculture Export Surplus ...... as the Dept. of Agriculture announced record forecasts of agricultural exports for fiscal 2006 & 2007. The USDA expects exports to reach a record US$68Bn in fiscal 2006, compared to US$62.5Bn set in fiscal 2005. The department predicts that U.S. agricultural exports will reach a record US$72Bn in fiscal 2007. USDA noted that fresh & processed fruit, vegetables & tree nuts will account for 40% of the horticultural export growth in 2007, with gains spread across many products. Overseas demand for U.S. corn remains strong with the amount used for ethanol production continuing to grow. Reduced South American shipments & rising overseas demand led by China should increase U.S. soybean shipments, and beef exports are expected to rise mostly because of the resumption of sales to Japan. The USDA credited trade agreements such as the North American Free Trade Agreement (NAFTA) for having a large positive impact on trade in agricultural products. In 2005, U.S. agricultural exports to both Canada & Mexico reached US$19.6Bn. These markets are expected to reach US$23.7Bn in 2007, accounting for 33% of all U.S. agricultural exports. Imports for fiscal 2007 are forecast at US$68.5Bn, up US$4Bn from the 2006 estimate of US$64.Bn. The USDA said this creates a US$3.5Bn trade surplus for both 2006 & 2007. The largest import gains are forecast for fresh fruits, vegetables & wines.
***U.S. Exports - Bright Horizon ..... as the 2nd annual UPS Survey of Chinese Urban Consumers reaffirms their demand for high-quality U.S. products and unearths more detailed insight into their buying preferences and demographic differences. UPS, which flies to many points in China, commissioned the survey to help its customers do business in the world's fastest-growing market. The most popular products in this year's survey were American videos/DVDs, music or books & consumer electronics--which also were the top categories in the 2005 survey. When considering imported products, 85% of Chinese consumers say that quality is a critical factor in their purchasing decision. "I think quality is very important," said Jennifer Cheng, 33, of Beijing. "It is especially important for high-tech products such as laptops or mobile phones."
***Fooling Brazil ....... as authorities have teamed up to dismantle an alleged scheme that undervalued U.S. exports to Brazil & allowed for the evasion of more than US$200M in Brazilian customs duties over a 5 year period. U.S. Immigration & Customs Enforcement agents in Miami & Brazil worked together in a massive investigation known as "Operation Deluge," leading to 128 arrests in Brazil, including owners of several large Brazilian companies that distributed imported electronics, as well as several Brazilian officials. On 16 Aug, some 950 Brazilian federal police agents & another 350 Brazilian Customs agents executed search warrants at 238 locations across Brazil. In a related operation in Miami, ICE agents assisted by Brazilian authorities searched 2 warehouses & a residence in Miami described as being controlled by Brazilian businessmen under investigation. The Miami team seized an estimated US$500,000 in goods slated for export to Brazil in what was allegedly part of the fraudulent scheme to under value products.
***Illegal Canadian Aliens ...... as the U.S. Dept. of Agriculture's Animal & Plant Health Inspection Service has issued an interim rule to remove all inspection exemptions on agricultural shipments from Canada. USDA said it's making the change due to increased cases of agricultural shipments from third countries entering the U.S. via the Canadian border. It's not uncommon for Customs & Border Protection inspectors to find agricultural shipments from overseas relabeled as originating in Canada. In 2004, for example, CBP inspectors in Detroit intercepted Spanish oranges & Dutch peppers manifested as products of Canada. In 2005, the USDA estimates that about 14,000 hydrangea plants from Japan entered the U.S. via Canada. The USDA prohibits hydrangea shipments from Japan due to the threat of Puccinia glyceriae, a plant rust. To recover the cost of increased staffing & agricultural shipment inspections along the U.S./Canadian border, the USDA will impose user fees on commercial vessels, trucks, railcars & planes, in addition to airline passengers. In fiscal 2007, the USDA estimates that the user fees will generate US$938,000 from vessel operators, US$14.8M from trucking companies, US$6.5M from railroads, US$4.9M from airlines, & US$50.9M from airline passengers arriving from Canada.
***Pay For Your Own Mess ...... as U.S. Customs & Border Inspection is considering a policy to bill back to importers the cost of destroying or re-exporting abandoned agricultural goods that have been denied entry to prevent the spread of pests or disease. The agency is designing a policy for recapturing money spent as a result of someone walking away from a shipment. The policy would also apply to wood packaging rules that require all pallets, crates, boxes & wood to brace cargo be free of wood-boring pests --marked with a logo certifying they have been treated by heat or methyl bromide fumigation.
***Chunnel Sinking In Red Ink ....... as the UK's Freight Transport Assn. is calling for reductions in the cost of using the rail tunnel beneath the English Channel. "The FTA is convinced that there is substantial freight business which would transfer to rail if the price & the quality of service could be improved. Such a transfer would improve capacity use of the tunnel facility & replace considerable cross-Channel road freight, 75% of which is undertaken by continental hauliers."
***American Favoritism In Mexico? ....... as the Mexican government's antitrust watchdog Federal Competition Commission has again refused to allow a US$300M merger between railroad companies Ferromex & Ferrosur. For Kansas City Southern of Mexico this was great news. This was the 2nd time it sued Ferromex for attempting to expand and the 2nd time it won the case. Critics of the decision, certainly Ferromex officials, hinted that the CFC decision was aimed at benefiting KCSM. Commission president Eduardo Pèrez Motta rejects the accusation.
***UPS Store - China Style ...... as it has opened its 1st retail centers in Shanghai, China, the 1st retail endeavor launched by the company in that country. Last year UPS took direct control of its operations, serving more than 330 cities in China, which represent 85% of China's Int'l trade activity. UPS said it now has more than 4,000 employees in China.
***Dynamite Sale ...... as Dutch mail & global logistics provider TNT N.V. has agreed to sell its logistics division to New York-based investment firm Apollo Management L.P. for US$1.9Bn in cash. TNT will receive a 5% stake in the new company in exchange for 15 million euros. TNT said it will return the majority of the proceeds to shareholders through a share repurchase program. It is understood that Apollo beat out another private equity firm, PAI Partners of France, for TNT. Apollo has invested more than US$16Bn in a wide range of industries, including Pacer Int'l (intermodal management) & Quality Distribution (bulk tank truck) in the transportation & logistics field.
***Schneider National Slims Down ....... as the trucking & logistics giant is eliminating 170 jobs & relocating another 85 workers as it streamlines operations following several recent acquisitions. In Feb., Schneider acquired American Overseas, a Southern California freight forwarder and in Aug. 2005 bought ocean container delivery & transloading company American Port Services. American Overseas had about 50 employees at the time of the takeover. American Port Services manages about 1,500 workers, but many are independent subcontractors hired as truck drivers & warehousemen. Schneider has also shed workers with the sale this summer of its Freight Payment Services unit to U.S. Bank and its specialized flatbed division to Maverick Transportation. About 200 freight payment specialists transferred to U.S. Bank. Schneider Specialized had 425 drivers.
***DHL Global Forwarding Bigger In Indonesia ...... as the air & ocean freight arm of DHL, has opened a US$3M facility at Soewarna Business Park in Cengkareng, Jakarta. The new 6,000-square-meter facility will consolidate DHL Global Forwarding's Jakarta logistics, office & administration operations into a single location, becoming DHL Global Forwarding's largest office & logistics complex in Indonesia.
***Big Box Opens Bigger Box ....... as Minneapolis-based Target Stores has opened a 3.1 million sq. ft. distribution campus on 240 acres in Rialto, Calif. -- the largest single investment in Target's history. In addition to a regional distribution center, the site includes an import warehouse and 2 additional import warehouse buildings in Ontario, Calif.
***United Shipping Adds El Salvador Member ........ as Panamerican Logistics Group De El Salvador, headquartered in the city of San Salvador, is the newest member of the USI, a global association of independently owned freight forwarders & customs brokers with more than 100 members.
***In The President's Shoes ...... as U.S. Customs & Border Protection officers at the Port of Norfolk in Virginia recently seized a large shipment of counterfeit Nike shoes smuggled in 2 refrigerated containers last week. The agents seized 1,061 cartons of pirated "Air Force 1" model shoes that were hidden behind salt kelp & jellyfish. The agency placed the street value of the shoes at more than US$1M.
***Hawaii's Biggest Export ....... as the U.S. Dept. of Agriculture's Animal & Plant Health Inspection Service has published new rules that will allow under certain conditions the interstate movement of city garbage from Hawaii to the U.S. mainland for disposal, starting Sept. 22. USDA said the bales will be transported to the U.S. mainland from Hawaii on barges and unloaded in mainland ports onto trucks & railcars for disposal in landfills. The amount of garbage shipped from Oahu, Hawaii, to the U.S. mainland will range from 100,000 to 350,000 tons per load.
***Soon An Olympic Sport? .... as for a charge of150 pesos about US$15, Mexicans can now experience what is perhaps Mexico's strangest tourist attraction: a night as an illegal immigrant crossing the Rio Grande. Groups of 20 or so people flee a fictional Border Patrol about 700 miles from the border. Most are wealthy professionals more likely to travel to the U.S. in an airplane than on foot. Advertising for the mock journey, which takes place at a nature park in the central state of Hidalgo, tells the pretend immigrants to "Make fun of the Border Patrol!" and to "Cross the Border as an Extreme Sport!" As craven as the advertising sounds, the organizers say they are trying to build empathy for migrants by putting people in their shoes. And the organizers, members of a Hnahnu (pronounced nyah-nyoo) indigenous community, speak from experience. Leaders estimate that as many as 90% of the 2,500-person community have made the journey to the U.S., most ending up in Las Vegas. For 4 hours participants in the group scale walls, hide in tunnels, jump into pickups & follow a path through a cornfield. The trip ends with a blindfolded ride to a Hnahnu holy place where the group is asked to be more sincere in their lives. Word of the tourist attraction has provoked much head-scratching among real immigrants & advocates in the U.S.
2. The Cargo Letter Financial Page ____________
**Japan's ANA Group. UP with a 255.7% jump in 1st quarter net profit to US$66.2M.
**Atlas Air Worldwide Holdings (parent company of Atlas Air & Polar Air Cargo) DOWN with 2nd quarter net income of US$10.7M, down 33% compared to net income of US$15.9M in same quarter 2005.
**British Airways. UP as net profits increased 71.1% in its fiscal 1st quarter period ended June 30, to US$291.3.
**DSV A/S (Dutch logistics) DOWN 18.4% in half-year net income to US$47.1M, after purchase of Dutch forwarding, trucking & logistics service group Frans Maas.
**EGL Inc. UP with 2nd quarter net income of US$14.8M or 36 cents a share, a 17% increase.
**Grindrod Ltd. (South African logistics group) UP with 1st half profit of 465 US$68M, up 14.1M over the same period last year.
**Hanjin Shipping. DOWN as profit drops 55.6% to US$98.6M ib 1st half.
**Hapag-Lloyd (standalone). UP with profit of US$116.7M in 2nd quarter.
**Hutchison Port Holdings (world's largest port operator) UP with US$671M in 1st half, in the 1st half 2006, up 10.9%.
**Interpool. UP net income of US$59.7M for ist half, up from US$37M in 2005. Interpool is corporate sponsor of The Cargo Letter Archives.
**NOL. DOWN with consolidated 1st half net income of US$187M, down 52% from US$392M in the same period last year.
**NYK Line. DOWN with a 43% drop in net income to US$107.2Min its fiscal first quarter ended June 30.
**OOCL. DOWN with a 9.2% drop in net profit to US$280.5M in the 1st half.
**Pacer Int'l. UP as 2nd-quarter net income more 215% to US$14.5M.
**Panalpina. UP as 1st half net income rose by 58.2% to US$56.4M.
**Seaboard Marine. UP with 2nd quarter net income of US$69.2M, up 10.5M.
**TUI AG (Hapag-Lloyd & CP Ships). DOWN with a loss of US$52.6M in 2nd quarter.
**Trailer Bridge. DOWN with a 2nd quarter loss of US$9M, compared to a net income of US$2.5M last year.
***Poised For Profit? ...... as an analyst said transportation stocks could be set to rebound, the AP reported on Aug. 21. According to analyst Art Hatfield of Morgan Keegan & Co., investors have already priced 20% to 30% declines into the prices of some transportation stocks, overshooting possible impacts from lower earnings, AP said. Even in the wake of a strong earnings season and projections for a normal peak season, Hatfield said the Dow Jones Transportation Average has declined for the past seven 7 &emdash; its longest slide in more than 6 years.
OUR "B" Section: FF World Air News***
3. Freight Forwarder World Air Briefs ___
***Restricting Belly Cargo? ...... as even before the U.K. authorities uncovered a suspected terror plot targeting U.S.-bound aircraft, the Transportation Security Administration (TSA) was developing stricter limits for the "Known Shipper" designation for air cargo shippers. The National Industrial Transportation League's Select Committee on Security reports these new rules would limit the designation "Known Shipper" to U.S. facilities/shippers. This, says NIT League, could confine air freight shipments originating outside the U.S. to cargo-only aircraft.
***No Strike This Year ...... as FedEx Express & the Air Line Pilots Assn., Int'l. (ALPA) jointly announced July 27, that they reached a tentative agreement (TA) on a new labor contract. Negotiations have been conducted under the guidance of the National Mediation Board since Oct. 2005 & both parties acknowledged the Board's support. If approved, the TA will be subject to a ratification vote by about 4,700 FedEx pilots. If ratified, the 4 year contract would become amendable in 2010.
***San Francisco Int'l Airport Leaps Foward On Cargo Security ..... as it has launched an innovative bomb-detection program that aims to make it the 1st U.S. airfield to screen virtually every cargo shipment -- regardless of size or content -- before it is loaded into an airliner. San Francisco's effort will combine explosive-detection equipment that is now used to examine baggage with other screening devices, human inspectors & even packs of canine sniffers to upgrade cargo security. The project is directed by scientists from nearby Lawrence Livermore National Laboratory. The Transportation Security Administration hasn't yet certified any machines for cargo screening, & federal officials say none of today's nascent technologies were designed to handle high cargo volumes. Unlike examining individual packages, many cargo containers hold a mix of items. San Francisco's pioneering program hopes to demonstrate ways around that dilemma, largely through more-effective use of devices & tools that already are available. The goal is to screen 95% of cargo on passenger jets. Recommendations from the US$30M initiative -- which will later include a similar project in Cincinnati and one in Seattle to search cargo for stowaways -- are expected to be available by late 2007.
***Airforwarders -- Take These Rules Seriously ....... as the Transportation Security Administration has banned Professional Export Services, an Eagan, Minn.-based air freight forwarder, from tendering cargo shipments on passenger planes because of repeated security violations. Professional Export Services allegedly placed at least 48 shipments from unknown shippers on passenger planes & failed to provide security training for employees or required cargo security information to contractors, the TSA said. "Known Shipper" rules require freight forwarders to only accept freight from known shippers with a prior shipping history & follow specific criteria for determining the legitimacy of new shippers. Any passenger carrier that accepts a shipment from any indirect air carrier that has had its shipping authority revoked, could face a civil fine of up to US$25,000 per violation. Professional is the 3rd freight forwarder penalized this year by TSA for lax security. TSA revoked the indirect air carrier certificate for J.H. World Express, Los Angeles, & Inter-Shipping Corp., Miami, and denied the re-approval of Aramex Int'l Courier, which has operations in New York & Washington, D.C.
***Great Wall Airlines Hits A Wall ...... as start-up all-cargo joint venture between Singapore Airlines Cargo, China Great Wall Industry Corp. and Dahlia Investments Pte. Ltd, suspended operations Aug. 18, following a decision by the U.S. Treasury Dept. to impose sanctions on China Great Wall Industry Corp. & its subsidiaries. The decision by the Office of Foreign Assets Control prohibits American companies from providing technical support to Great Wall Airlines, forcing the airline to shut down for lack of Boeing support. Great Wall launched 6 weekly freighter services between Shanghai & Amsterdam on June 1.
***Watch Out DHL & FedEx ..... as the U.S. Postal Service's share of the air shipment market increased to 37.7% in 2005, as compared with 37.1% in 2004, according to a report from the Colography Group. The increase is related to strong demand for USPS' Priority Mail deferred air product. Priority Mail demand had slumped after a 15% rate increase in 2002. Deferred air shipments rose 4.2% in 2005, while overnight air traffic gained 1.9%. Priority Mail accounts for about 75% of total growth in the deferred air shipment category, Colography Group said. Overall, air shipments increased by 3.2% to 2.5 billion shipments, posting gains in letters & envelopes, packages & freight. Air shipment revenue rose 5% to US$33.6Bn in 2005. The U.S. post office? Who knew.
***AirBridge Cargo Goes Continental ...... as the Russian carrier has signed an interline agreement with Continental Airlines. Continental plans to enter the Russian market while AirBridge expects the Houston-based airline to provide an important link into its network, notably for the movement of oil & gas equipment from Texas to Sakhalin Island off the coast of Russia.. "It is no secret that AirBridge Cargo plans to commence operations to the U.S. This is one of the reasons why we have 2 new Boeing 747-400ER freighters on order with the 1st delivery scheduled for 2007," said the carrier.
***Atlas Air Worldwide Holdings Wins Big ....... as the operator of Atlas Air & Polar Cargo has announced that the U.S. Dept. of Transportation (DOT) has awarded Polar 4 additional weekly frequencies for U.S.- China air cargo service beginning March 25, 2007, increasing the carrier's weekly China flights to 16.
***DHL Consolidates In India ..... as it is attempting to gain full ownership of Indian express company Blue Dart Express Ltd. by purchasing the company's outstanding shares. DHL Express (Singapore) Pte Ltd, currently owns 81.03% of Blue Dart. DHL paid US$163M for the majority stake in Blue Dart in 2004.
***LAX #1 Communicator ...... as Airports Council Int'l - North America has announced the winners of its 2006 Excellence in Marketing & Communications Contest, with Los Angeles Int'l Airport (LAX) of the Los Angeles World Airports system receiving top honor, the "Peggy G. Hereford Overall Award for Excellence." This award is widely recognized throughout the airport industry as the highest honor an airport can earn in the marketing & communications field. After all, what airport has its own cool music video? This is Hollywood! Enjoy .....
***No More Globemasters? ....... as Boeing Co. says it plans to shut down the production line for the C-17 Globemaster III military cargo plane in 2009 because of the lack of new orders from the U.S. government. The aircraft manufacturer notified hundreds of suppliers to stop work on uncommitted planes that often require components to be built as much as 34 months ahead of delivery to a customer. Boeing is holding out hope that the threat of a shutdown will spur Congress to authorize the purchase of more aircraft, but the Air Force has said its needs can be met with the 180 C-17s produced or ordered. The C-17s are assembled at the former Douglas Aircraft plant in Long Beach, Calif. Boeing is also making planes for Canada, Britain & NATO. Boeing's decision to phase out production means that there will be no commercial version of the C-17. Boeing tried for years to develop a commercial variant to keep production line open & reduce the list price, but the idea never took off with shippers & air cargo carriers because of aircraft's high cost.
***You Meet The Nicest People In Airports ...... as a German woman who was held up & robbed in her Berlin apartment earlier this month was astonished to see the thief waiting to board her flight from Antalya in Turkey to the German capital, police said Aug. 22. The 37-year-old woman telephoned her husband who alerted authorities, a police spokesman said. When the flight arrived at Berlin's Schoenefeld airport, police arrested the 25-year-old man, who was wanted in connection with several other robberies.
***Vulture Culture ..... as hundreds of the massive birds have swarmed the airport in Iquitos, the biggest city in Peru's Amazon jungle, putting planes at risk & threatening to cut off Iquitos from the rest of the country. The vultures already have forced the airport in Iquitos -- a popular tourist destination that can only be reached from the capital Lima by air -- to shut down 8 hours a day, said the head of Peru's state-run airport authority. "One of these birds only has to bump into a plane and the effect could be devastating," he said. "If one gets into an engine, it will destroy it, the motor will stop and the plane will come down." Set on the banks of an Amazon River tributary, Iquitos is one of the world's largest cities inaccessible by road. The vultures became a problem when migration swelled Iquitos' population & extra trash pushed the edge of a garbage dump, which attract the birds, closer to the airport. The vultures have collided with planes at least 19 times since 2002. Photographs show engine parts & wing flaps mangled by avian encounters. The airport authority blames local officials, whom they say have ignored nearly a decade of complaints about the dump. But the city's mayor says airport operators should be better equipped to scare away the vultures. Peru's commerce & tourism minister has referred to the situation as "surreal."
OUR "C" Section: FF World Ocean News***
4. FF World Ocean Briefs_________________
***Endless Talk, But Still No Port Security ID ....... as the Dept. of Homeland Security quietly announced this month that port facility and merchant vessel owners & operators will not be required to install readers for the biometric ID cards it plans to issue to the nations transportation workers. The change, which critics says guts the security benefit of the proposal, is the latest stumble for the controversial ID card project, called the Transportation Worker Identity Credential, or TWIC program. Officials "have concluded that facility and vessel owners & operators will not be required to purchase or install card readers during the 1st phase of the TWIC implementation," reads a notice in the Federal Register published Aug. 21. The notice promises that a requirement to purchase & install card readers will not be implemented until the public is afforded further opportunity to comment. And now, a prominent AFL-CIO official is saying "if TSA is not ready to proceed with TWIC as Congress mandated, then the entire program should be halted. "The TWIC program, mandated by Congress in the 2002 Maritime Transportation Security Act, is designed eventually to cover 725,000 airport workers, truck drivers, merchant seafarers & others needing unescorted access to transportation facilities like ships & ports.
***Endless Talk -- A Cautionary Tale ..... as a study conducted by Rand Corp. finds that a nuclear attack on the Port of Long Beach could kill 60,000 people, the AP reported. In addition to the casualties caused by the initial strike, an attack could irradiate 150,000 people & create economic losses 10 times greater than those resulting from the Sept. 11 attacks on the World Trade Center, AP said. The study analyzed possible damage resulting from detonating a 10-kiloton nuclear weapon hidden in a shipping container, AP reported. In addition to the death toll, a blast could destroy critical portions of the port's infrastructure, as well as every ship docked at Long Beach. Nearby oil refineries, which provide 33% of the fuel west of the Rocky Mountains, could also be destroyed in a nuclear attack, creating severe shortages. Keep in mind Port of Long Beach ajoins the larger Port of Los Angeles.
***Some Middle East Ports Return To "Normal" ...... as Maersk Line has reopened its office in Haifa, Israel, following the ceasefire between Israel & Hezbollah in Lebanon. The Danish line also confirmed that vessels are now calling at Israeli port on schedule although congestion in the port may cause delays. The temporary halt on the acceptance of import & export cargo for Lebanon is still in effect with import cargo destined for Lebanon to continue to be retained in Port Said, Egypt, until further notice.
***China Remains On Fire ...... as major sea & river ports saw container throughput volumes during the 1st half of 2006 increase by 22.4% to just over 42 million TEU , & cargo tonnage by 18.4% to 2.2 billion tons, reports Chinese news agency, Xinhua. The majority of trade was done at seaports, with cargo volumes up 17.6% to 1.64 billion tons & containers up 21.4% to 39.3 million TEU. At river ports, cargo volumes were up 20.9% to 555.33 million tons, & container throughput up to 39.3% to 2.83 million TEU. Shanghai handled the highest amount of cargo&emdash;up 11.6 % to 227.12 million tons, & container volume up 17.5% to 10 million TEU. In contrast, the Port of Rotterdam, in comparision, handled 186 million tons of cargo in the 1st half of 2006, up 1.1% from same period in 2005. Container throughput was up 2% to 4.7 million TEU.
***China Links To Malaysia ..... as the two have signed a memorandum of understanding (MOU) with the aim of strengthening bilateral cooperation, mainly in exchanging information, expertise & technological knowledge in the maritime and shipping domain. Also covered are shipping safety, maritime transport security and technology, training and certification, maritime policy and management & development of ports.
***Pirate Welcome Wagon ..... as Somalia has officially reopened its seaport at Mogadishu after being closed since 1995. It is understood that Somali militia Islamic Courts Union opened the port hoping to restore confidence among commercial vessel operators & shippers. The port closed 11 years ago when UN troops left Somalia amid escalating civil war, chaos & death.
***Welcoming The Pirate Welcome Wagon ...... as the U.S. Navy Maritime Liaison Office (MARLO) in Bahrain has issued advisory stating that the latest pirate attack or ship seizure off the Somali coast occurred 4 months ago. This lessening of activity is apparently due to patrols by the Combined Maritime Forces & increased alertness by commercial vessels transiting the area. We highly recommend continued vigilance.
***In Wake of The Storm ...... as Dubai Ports World is moving ahead to spin off the U.S. marine terminal operations it acquired from P&O Ports in March. DP World officials said they would sell the operations after an uproar erupted in Congress over the notion of having a state-owned company from the Middle East owning marine terminals. Bids are out.
***Controversy Over -- Modern Ships Proceed ...... as the U.S. Court of Appeals for the 9th Circuit has ruled that the Columbia River channel improvement project can proceed, overruling claims of a Pacific Northwest environmental group that the Corps had conducted inaccurate environmental analyses of the project. In 2005, the U.S. Army Corps of Engineers deepened the navigation channel from river mile 3 to 21 and from RM 94 to 102 to a depth of 43 feet. Work is underway between river miles 21 to 32 & 91 to 94. The Columbia River channel improvement project is a federal effort to deepen the 600 ft. wide Columbia River navigation channel from 40 feet to 43 feet along its 106-mile length from the mouth of the Columbia River to Portland/Vancouver. The dual purposes are to improve the deep-draft transport of goods on the Columbia River navigation channel and provide ecosystem restoration for fish & wildlife habitats.
***Schenker Goes For Safe Container ...... as it began tests of radio frequency identification tags for containers at the Port of Hamburg. The logistics firm put into service 10 containers equipped with electronic labels in a shuttle service between Hamburg & Hong Kong. The container tag will be automatically registered at points where liability changes hands so that shipments will become immediately visible at important transitional milestones in the transport chain. Schenker will also test the "e-seal," an electronic seal that documents any opening & closing of the container, as well as a range of other security devices that will keep track of the shipment.
***Reason #124 For Alternative To California Ports ..... as California state legislator's bid to assess a US$30-per-TEU fee on all containers transiting the ports of Los Angeles & Long Beach may be back. State Sen. Alan Lowenthal's Senate Bill 760 stalled earlier in the California legislature, but Lowenthal is now seeking to add language to another of his bills, SB 927, that will likely make it to a vote. One of the reported changes is that under SB 927, ports would be responsible for collecting the US$30-per-TEU fee from cargo owners, not terminal operators. "The the simple fact is that a container tax is illegal & unconstitutional," said the Pacific Merchant Shipping Assn., in a statement. The PMSA argues that cargo diversion is a real threat if a container user fee is imposed. "A US$30 fee per container will add up to US$250,000 to US$400,000 per vessel, just for the privilege of calling at a port. Even now, without the imposition of new taxes on cargo, railroads & port authorities in Mexico, Canada and other coastal states are currently developing new terminals & rail lines that will provide a cheaper option for long-haul & intermodal freight than California," PMSA said.
***Reason #125 For Alternative To California Ports .....as the 7,400-member Engineers & Architects Assn. staged a 2 day walk-out in Los Angeles Aug. 22 & 23 in order "to get noticed." The union was seeking wage increases beyond those offered other LA city workers. When picketers spread out to the docks of Port of Los Angeles, longshoremen ceased work reportedly because they believed they were crossing picket lines. An arbitrator was called in & explained to the longshoremen that they were not part of the strike -- returned to work after a 4 hour shutdown at container terminals. The EAA got noticed. What did that cost?
***Next Alternative To California Ports ...... as two shipping alliances&emdash;The Grand Alliance & the New World Alliance&emdash;announced they are collaborating to launch a new Asia-East Coast all water service, entitled EC3, which will be based out of the Port of Savannah & spearheaded by the Georgia Ports Authority (GPA). The Grand Alliance is made up of OOCL, & NYK Hapag-Lloyd -- the New World Alliance is comprised of APL, Mistui OSK Lines (MOL), & Hyundai. After handling a record 2.04 million cargo containers in fiscal 2006, The Port of Savannah could surpass its rival Charleston, S.C., for the No. 4 ranking of the nation's busiest ports. Savannah port boasts a 15.9% growth in containers of import/export cargo from fiscal 2005.
***Big Easy Back At 94% ........ as the Port of New Orleans has recovered about 94% of its pre-Katrina cargo, the Associated Press reported. The latest available figures from the port, which include data from the 1st 4 months 2006, indicate that general cargo tonnage only 3.8% lower than same period in 2005. General cargo includes goods shipped in containers in addition to such goods as steel & rubber, which are transported on pallets. Bulk cargo in 2006, including such goods as grain & oil, declined 8% compared with last year, while overall cargo handled at the port over the 1st 4 months of the year dropped to 12.4 million tons from 13.3 million tons in the same period in 2005 &emdash;about a 6.5% decline. Gulfport, Mississippi plans to rebuild its cold storage facilities and is still in far worse shape than Mobile & New Orleans.
***Lakes Again Great ..... as with U.S. steel mills operating at more than 87% of capacity, shipments on the Great Lakes in July reached their highest level yet this year: 6.8 million tons, according to the Lake Carriers Assn. "So strong is demand for iron ore that the 730ft. M/V Edward L. Ryerson returned to service on July 22. The ship had been idle since the end of 1998, primarily because it is a straight-decker that requires shoreside equipment to be unloaded," the association said. For the year, Great Lakes-St. Lawrence Seaway iron ore trade stands at 30.6 million tons, a 5.6% increase from same point in 2005.
***Genoa Tumble ..... as the UK Marine Accident Investigation Branch (MAIB) has issued the report of its investigation into the loss of cargo containers overboard from M/V P&O Nedlloyd Genoa in the North Atlantic on 27 Jan. 2006. While experiencing heavy weather en route from Le Havre to Newark, the ship took series of heavy rolls & was hit by large waves. Container collapse occuured in one bay, which resulted in 27 containers lost overboard, 28 containers collapsed on deck, & 9 containers remained secure in position. Analysis indicated weight distribution in the bay was out of tolerance (in part due to some containers weighing significantly more than declared) and lashing may have been out of tolerance. Additionally, some containers "may not have had adequate structural strength & rigidity." MAIB recommended ship manager undertake risk assessment on the vulnerability to parametric rolling & emphasize to crew importance of lashing checks. Report No. 20/2006
***M/V Emma Maersk - World's Biggest ..... as A.P. Moller-Maersk has named the world's largest container ship at 11,000-TEU declared capacity. Traditionally secretive about its ships, A.P. Moller-Maersk is believed to understate her declared capacity. M/V Emma Maersk is thought to have a capacity ranging from 13,000 TEUs to 15,000 TEUs, based on a reported length of 399 meters (1,310 feet) & 53 meters (174 feet), eclipsing Korean shipyard Hyundai Heavy Industries' yet to be built 13,000-TEU design. The new vessel was named after A.P. Moller-Maersk's Sr. Partner Maersk Mc-Kinney Moller's late wife Emma, who died last Dec. The vessel is powered by a 14-cylinder Wärtsilä RT-flex diesel engine that produces 110,000 bhp.
***M/V Delta Queen Beached ..... as the FMC has announced that CQ River Cruises LLC, doing business as American Rivers Cruise Line & Great American River Journeys, has cancelled all cruises for the 2006 season.
***This Month In U.S. Navy History .....
1814 - British invasion of Maryland & Washington, D.C.; Washington Navy Yard -- ships burned to prevent capture by British.
1843 - Steam frigate Missouri arrives at Gibraltar completing 1st trans-Atlantic crossing by U.S. steam-powered ship.
1867 - Capt. William Reynolds of USS Lackawanna raises U.S. flag over Midway Island & took formal possession of islands for the U.S.
1912 - Launching of USS Jupiter (AC 3), 1st electrically-propelled Navy ship.
1920 - Radio station built by U.S. Navy & French government transmits 1st wireless message heard around world -- most powerful radio station in the world.
1942 - 5 Navy nurses who became POWs on Guam are repatriated.
1945 - 1st surrender of Japanese garrison at end of World War II; USS Levy (DE 162) receives surrender of Mille Atoll in Marshall Islands.
1952 - Units on USS Boxer (CV 21) launch explosive-filled drone which explodes against railroad bridge near Hungnam, Korea. 1st guided missile launched from ship during Korean Conflict.
1960 - USS Bexar (APA 237) deploys to Pangahan Province in response to emergency request for aid from the Province's governor.
1965 - Cdr. Scott Carpenter & 9 aquanauts enter SeaLab II, 205 ft. below Southern California's waters to conduct underwater living and working tests.
1991 - A helicopter from USS America (CV 66) rescues 3 civilian sailors who spent 10 days in a lifeboat 80 miles off Capt May, N.J., after sailboat capsized.
1992 - Navy & Marine forces begin providing disaster relief after Typhoon Omar hit Guam.
1992 - Marines & Army forces begin providing disaster relief in Florida after Hurricane Andrew.
***Man of Honor ...... as retired U.S. Navy diver Carl Brashear died July 25 at 2:35 p.m. at Naval Medical Center Portsmouth of respiratory & heart failure. The retired master chief was 75, and became known throughout the world after actor Cuba Gooding Jr. portrayed Brashear in the movie, "Men of Honor." Brashear joined the Navy in 1948 at the age of 17. He was a pioneer in the Navy as the 1st black deep sea diver, the 1st black master diver and the 1st person in naval history to be restored to full active duty as an amputee, the result of a leg injury sustained during a salvage operation. He was the 1st amputee to be advanced to the rank of Master Chief Petty Officer. Brasher became the only amputee deep-sea diver to reach the status of master diver, and he was the only black man to ever become Master Diver of the U.S. Navy, a position he held from 1975 to 1977. Carl Brashear was a man of integrity & a hero. Brashear's son, Chief Warrant Officer 4 Phillip Brashear, a helicopter pilot in the U.S. Army, is on emergency leave from Iraq & was with his father in his final hours.
***NS Savannah May Have A Home ..... as the world's 1st nuclear-powered ship could end up in Wilmington. The U.S. Maritime Administration wants to decommission the NS Savannah & is considering Wilmington as a possible site. At 600 feet it's a ship that rivals the size of the Battleship North Carolina. Officials are thinking about bringing the NS Savannah to the Wilmington riverfront. NS Savannah Sr. Technical Advisor Erhard Koehler said, "Savannah is arguably one of the most beautiful ships that was built; it certainly would grace the waterfront for however long she's here." The NS Savannah's active sailing life ended in 1971, that's when crews removed all of the nuclear fuel from the ship. Colonna's Shipyard of Norfolk, VA, has earned a US$995,000 contract to rehab the vessel for public display.
***Avast Ye ! ...... as there is a new a subculture of pirate lovers across the globe (including my daughter), a growing tribe that encompasses history buffs, musicians, actors & the very cool. Across the U.S., from New York City to Portland, Oregon, the pirate movement has spawned pirate bars, social circles, bands, festivals, magazines & apparel. Devotees are attracted by pirate fashions, a spirit of rowdiness & the opportunity to engage in anti-establishment behavior. It's unclear where it began, but pirates are clearly in vogue. Pirates are like the new cowboys. Modern pirates fall into several categories. There are the re-enactment crews, which perform in staged battles at parks, yacht clubs & festivals. Not only are pirates a Hollywood success, they're a Las Vegas hit as well. The nightly "Sirens of TI," is a popular Vegas show at the Treasure Island Hotel & Casino featuring scantily clad women tempting a group of buff buccaneers. Don't look.
Int'l Talk Like A pirate Day Is Sept. 19
5. The Cargo Letter Cargo Damage Dispatches
**Back By Popular Demand**
We're sorry, but there were so many sinkings, explosions, pirate attacks, fires, cargo mishaps, battles on the water & 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!! Don't miss the pirate attack on M/V Seabourn Spirit
But you can read all this month's disaster news at our special Internet web feature which provides full details of each event -- our Vessel Casualties & Pirate Activity Database. Bookmark the site and visit every day! Updated twice daily. You will be amazed.
SPECIAL NOTE: Please view the dramatic new pictures at our special "Gallery of Cargo Loss" website feature.
See our new feature for Aug. 2006: "Laying Down On The Job" - Help us establish the M/V MARTY JOHNSON memorial.
See our newest photo feature "Singles Only" - Transportation Disasters Told In A Single Photo! Includes our photo coverage of currently stricken M/V Cougar Ace!
Our new features were not quite ready to post for this edition, but get ready for:
"Full Speed Ahead"
"Where The Tradewinds Blow"
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.
OUR "D" Section: FF in Cyberspace***
6. The Cargo Letter "Cyber Ports Of Call"
Here are our suggested world wide web sites of the week for your business, your information and your amusement..............
Air Security Report ....... it may be bad now. But soon, you'll be scanned, sniffed & undressed by the cameras
Creation of Int'l Container Standards Organization (ICSO)
Dining Out Around The World Challenge -- How Much Do Your Really Know?
Flight Aware Free Flight Tracking
Int'l Maritime Organization Piracy Report - June 2006
Is Your Supply Chain Execution System Over The Hill? ......... ASAP Webcast
Jets Int'l ........ you may carry on liquids & gels
Lloyd's Syndicate Merger History Map - 2006 Update ....free
Lloyd's Political Risk Map 2006 ....free
Lloyd's Weather Risk Map 2005 ..free
Top Ten Supply Chains of 2005: The Good, The Bad & The Ugly
U.S. Dept. of Agriculture's Foreign Agricultural Service
U.S. Travelers May Get Confused By New 'Chip & Pin' Technology Used In Other Nations
World Shipping Council
For your interest -- we receive no compensation.
3D Laser Mapping
World Freight & Logistics Directory
Workplace Incident Kit .........Includes everything to properly document an accident or incident
World Trade Organization Events
4th European 3PL Smmit ........ Oct. 3-5, Brussels, Belgium
5th North America Cargo Security Forum ........Sept. 6-7, Washington Hilton Embassy Hotel, Washington DC
ASG Security Summit & Expo
Air Cargo India 2006 ........ Nov. 16-18, 2006, World Trade Center, Mumbai
CLECAT Freight Forwarders' Conference........... 30 Nov. 2006 , Brussels Marriott Hotel, Belgium
Council of Supply Chain Management Professionals .......... 15-18 Oct. 2006 Henry B. Gonzalez Convention Center, San Antonio, Texas
CSCMP Annual Conference ........ Oct. 15-18 2006, Council of Supply Chain Management Professionals, San Antonio, Texas
Freight Russia 2006 ......... 24-26 Oct. 2006, Expocentr, Moscow, Russia
FIATA World Congress (Int'l Federation of Freight Forwarders Associations) ...... Sept. 16 - 21, Shanghai, PRC
GCC Low Cost Airlines Conference ........ Sept. 19-20 2006, Dubai UAE
Global Automotive Logistics 2006 ......... 17- 18 Oct. 2006, Hilton, Antwerp, Belgium
Intermodal Exhibition & Conference 2006 ........... 5-7 Dec. 2006, Hamburg Messe, Hamburg, Germany
Meeting The China Challenge ........ Online conference to help supply chain managers take advantage of opportunities & avoid pitfalls of doing business in China.
Middle East Combating Financial Fraud Practices Summitt ........ 1 Nov. 2006, Dubai, UAE
ProcureCon 2006 ....... Oct. 16 -19 2006, Scottsdale, AZ
Shipbuilding-Machinery & Marine Technology Int'l Trade Fair ..........Sept. 26-29, 2006, Hamburg, Germany
TOC2006 Americas ......24-26 Oct. 2006, Fairmont Princess, Acapulco, Mexico
Transtec 2006................ 25-28 Sept. 2006, Int'l Euro-Asian conferences on transport, St Petersburg, Russia
Underwater Vehicle Showcase ........ 27-28 Sept. 2006, National Oceanography Center, Southampton, UK
World Maritime Day 2006 ......... Sept. 28, London
Goofus & Gallant Guide to Univ. of Chicago Law School
Hezbollah - the threat
Hyrogen Engine Center
Operation "Let's Say Thanks To The Troops" ........... from Xerox Corp. It is FREE & only takes a second.
Personal Spaceflight Federation ....... expands membership.
Pirate Language Translators
Photo Fraud In Lebanon
San Diego Chargers Practice Aboard USS Ronald Reagan
Space Shuttle Mission STS-114 Discovery RTF ...... won't see this on TV.
U.S. Drivers Licenses Index On The Internet ......... somewhat disturbing that anyone can be found, but free. Check your own license & request to be removed from the service.
U.S. Navy Chief Submerges 2,000 Feet, Sets Record
OUR "E" Section: The Forwarder/Broker World***
7. New Transport Related Legal Cases _______
In Re: All Oceans Transportation, Inc.
U.S. Dept. of Justice Consent Agreement - 71 Fed. Reg. 45848
Aug. 10, 2006
The Dept. of Justice notice that it proposes to enter a partial consent decree with All Oceans Transportation, Inc. & other parties to recover from the defendants response costs & damages resulting from destruction of or injury to natural resources caused by loss of 15 shipping containers from a container ship in the Monterey Bay Marine Sanctuary on Feb. 26, 2004. Under consent decree, defendants will pay US$3,250,000 to the U.S. Government. Comments must be submitted within 30 days. Read The Decision
Commercial Union Insurance Co. v. Pesante
U.S. Court of Appeals for the 1st Circuit
Aug. 9, 2006, No. 05-2151
Misrepresentation In Marine Policy May Void Coverage -- Court ruled that a material misrepresentation by the insured in the insurance application renders the subsequent marine insurance policy voidable by the insurer from the beginning. In this case, the insured, in his application, stated that the vessel was a lobster boat. The vessel was, rather, a gill-netter, as known to the insured, who was also the operator of the vessel. Gill-netting is more hazardous than lobstering & commands a higher insurance premium. Vessel was involved in collision while returning from a gill-netting voyage & injured parties filed claims. The insurer brought a declaratory judgment action, seeking to void the policy. Trial court ruled against the insurer, finding that the vessel was not engaged in fishing at the time of the collision. The appellate court reversed, holding that under both admiralty law & state law, a material misrepresentation that would influence a prudent insurer in determining whether to accept the risk renders the policy voidable as a matter of law. Same applies to cargo policies. Read The Decision
Altadis USA, Inc. v. Sea Star Line, LLC
U.S. Court of Appeals for the 11th Circuit
August 7, 2006, LLC, No. 05-14988
Domestic intermodal shipment controlled by COGSA, not Carmack -- Court ruled that, in the absence of a separate domestic bill of lading covering the inland leg of an intermodal shipment, the Carmack Amendment does not apply to a maritime contract covering a shipment from a US possession to an inland US location where the intermodal bill of lading specifically incorporates the Carriage of Goods at Sea Act (COGSA). In the instant case, plaintiff shipper arranged with defendant maritime carrier for the shipment of a container of cigars from Puerto Rico to Tampa via Jacksonville. The bill of lading called for the container to be transported overland from Jacksonville to Tampa, incorporated COGSA, and extended the application of COGSA to the overland carrier. The container was stolen during the overland portion of the shipment. The cargo owner brought suit against the maritime carrier, who then brought in the overland carrier. Suit was brought more than one year after the cargo was scheduled for delivery. Defendants moved for summary judgment, contending that the one-year statute of limitations in COGSA applied. Plaintiff argued that the two-year statute of limitations in the Carmack Amendment applied since the loss occurred during the overland portion of the shipment. After reviewing various cases holding that, with regard to international shipments, the COGSA provision is controlling where there has not been a separate domestic bill of lading, the court decided that the same logic applied to domestic intermodal shipments.
Further analysis of this case by Andrew D. Kehagiaras, Esq. of Countryman & McDaniel
In Altadis USA Inc. v. Sea Star, LLC, (above) the U.S. Court of Appeals for the 11th Circuit has ruled that because the parties to an Int'l through bill of lading agreed to extend the application of the Carriage of Goods by Sea Act ("COGSA") to the inland delivery point, COGSA's 1 year time-for-suit provision applied, and the plaintiff's case was time-barred. The court rejected the plaintiff's argument that the Carmack Amendment applied to the inland transit, during which the cargo sustained damage. The 11th Circuit cited to the 4th, 6th, & 7th Circuits, as well as to an earlier 11th Circuit case, for the proposition that the Carmack Amendment was inapplicable to an inland domestic segment of international through transportation in the absence of a separate bill of lading for that domestic segment. Finally, the 11th Circuit held that the plaintiff's argument for the applicability of the Carmack Amendment was inconsistent with the Supreme Court's holding in Norfolk Southern v. Kirby, where the Court held that a through bill of lading requiring the "substantial carriage of goods by sea" was a maritime contract. So the Supreme Court, in order to further the interest of uniformity within general maritime law, upheld the application of COGSA's liability scheme, which the 11th Circuit found to be appropriate in Altadis. Read The Decision
Caman v. Continental Airlines, Inc.
U.S. Court of Appeals for the 9th Circuit
Aug. 2 2006, No. 03-56810
Warsaw Convention -- Mr. Guy Caman developed deep vein thrombosis (DVT) while on an Int'l flight. In his attempt to recover damages from the airline, the district court granted summary judgment to the airline finding that failure to advise Carman of the risks of DVT was not an "accident" under the Warsaw Convention. The court held that Caman's DVT was not a result of an "unexpected or unusual event" and therefore is not an "accident" under the Warsaw Convention. In addition, the 9th Circuit held that the airline's failure to warn was not an "event" under the Convention. Finally, the ciurt held that Caman must first show there was an "accident" under the Warsaw Convention before making an inquiry to determine whether the airline's omission permits liability. AFFIRMED. Read The Decision
Liberty Mutual Insurance Company v. Secunda Marine Services Ltd
Nova Scotia Court of Appeal
June 30 2006, 2006 NSCA 82
Court ruled that, in a claim brought by vessel owner for damages arising from a broken tail shaft, the hull insurer bears the burden of proving that the owner or its agents did not exercise due diligence. The ship was insured under an Institute Time Policy (Hulls). In this policy, though, the Inchmaree Clause had been replaced by the newer Liner Negligence Clause, which provided broader coverage. The policy covered breakage of shafts provided that such did not arise as a result of any lack of due diligence on the part of the insured. The ship successfully completed all required inspections & surveys. The court ruled that the "lack of due diligence" provision amounted to a defense & that the burden of proof was on the insurer to prove such lack. Read The Decision
Written from wire stories, the Associated Press, Reuters, Hong Kong Shipping News, Lloyds & other world sources.
The Cargo Letter Correspondents:
Michael S. McDaniel Esq, Editor (Countryman & McDaniel)
David Schuchman -- Interpool Corp. -- Webmaster of The Cargo Letter Archive
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