Law Offices of Countryman & McDaniel
THE CARGO LETTER 
Air & Ocean Logistics - Customs Broker News
29 November 2006
Good Wednesday 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's what happened in November -- big news in the Air sector! ....and more reasons to buy quality cargo insurance from your forwarder or broker -- it's dangerous out there!
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
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Michael S. McDaniel, Editor, Countryman & McDaniel, forwarder/broker/trade consultant attorneys at LAX.
INDEX to The Cargo Letter:
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 "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs _____________
***The LAX Webcam .... as we welcome you 24 hours a day to our home -- Runway 25, Right.
***Vietnam Becomes WTO #150 ...... as on Nov. 7 the general council of the World Trade Organization (Geneva, Switzerland) approved Vietnam as its 150th member. The move will give the country's exporters access to more international markets in exchange for reducing high import tariffs. After China, Vietnam is Asia's fastest growing economy, with a gross domestic product of US$61Bn. It's expected to grow around 8% in 2006. Negotiations for Vietnam's admission into the trade group began 11 years ago in Jan. 1995. During the intervening years its state-run economy has undergone significant reforms. As part of its entry into the WTO, the country's trade representatives have agreed to a multitude of changes, including changes to property ownership, agreement to intellectual property regulation, simplification of the tariff structure, and reductions in tariffs for a majority of agricultural and non-agricultural goods, from the current average rate of 17.6% to 13.8% within 5 to 7 years. The country, which has a population of 84 million, will join the WTO 30 days after its National Assembly ratifies the deal. Aslo, in a surge this month, Vietnam achieved textile & garment export turnover of nearly US$5Bn in the 1st 10 months of this year. This represents a yearly increase of 27.2%.
***Russia Steps Toward WTO Membership ....... as the Office of the U.S. Trade Representative (USTR) has announced that USTR Susan Schwab and Russian Minister of Trade & Economic Development German Gref on Nov. 19 signed a bilateral market access agreement that is an important step in Russia's bid to accede to the World Trade Organization (WTO). USTR noted that the agreement resolves long-standing bilateral issues related to trade in agricultural goods and puts in place a bilateral blueprint for protection & enforcement of intellectual property rights (IPR). USTR stated that implementation of the commitments on IPR, agriculture & industrial goods will be important to completion of the final multilateral negotiations on Russia's overall accession package. Russia's tariff commitments include participation in the Information Technology Agreement, which will results in duty-free treatment of IT products, such as computers & semiconductors. Russia agreed to reduce its tariffs on commercial planes & related parts. The country will reduce tariffs on construction and agricultural equipment, scientific equipment and medical devices."Russia's tariffs, when fully implemented, will average 5% in these sectors," the USTR said. USTR stated that Russia must complete multilateral negotiations with all WTO members before it can accede to the WTO. Russia has been negotiating its terms of accession to the WTO, and previously the General Agreement on Tariffs & Trade 1947 (GATT), since 1993. More:
***Textile Compliance Sweep Strikes Fear ....... as teams of U.S. Customs officers will visit factories in Hong Kong beginning Dec. 2 to verify that suppliers are complying with laws regarding the importation of apparel & textiles, Hong Kong's Customs & Excise Dept. said. U.S. and Hong Kong inspectors will conduct a series of factory observations to check whether products are being misdescribed to evade duties and quotas, or are illegally transshipped through 3rd countries using false documents & labels. The joint inspection teams will visit factories that have given their prior consent. But to be clear, the only factories inspected both consented & had advanced word. We're sure the real cheaters will be caught off guard. More.
***U.S. Will Consider APEC Free-Trade Zone .......... as speaking in Singapore before the Asia-Pacific Economic Cooperation (APEC) leaders' meeting in Hanoi, Vietnam, President Bush said the proposal advanced by some of the 21 member economies "deserves serious consideration" and called APEC "the premier economic forum in the region," the State Dept. reported. APEC member economies are Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei (Taiwan), Thailand, the U.S. & Vietnam.
***Giving Away The Store? ....... as the U.S. House Int'l Relations Committee Chairman Henry Hyde, R-Ill., officially released a congressional watchdog report detailing the Commerce Dept.'s oversight of so-called "dual-use" technology exports, or items that have both commercial & military applications. "The study raises fundamental questions about whether U.S. export controls have become inadequate at a time when the U.S. faces a growing number of threats to our interests around the world -- threats which are becoming more complex precisely because dangerous regimes & terrorist groups are moving up the technology ladder," Hyde said. The Government Accountability Office found that less than 1% of exports subject to Commerce regulations were licensed in 2005. The dollar value of unlicensed exports was US$624Bn, while the value of licensed exports was US$1.2Bn, the GAO report noted. Items identified under Commerce's jurisdiction were largely exported to Asian countries, such as China, Taiwan & Singapore, and to European countries, such as France & the UK. The GAO report said top exports by value were aircraft, computers, equipment to make semiconductors, telecommunications equipment & chemicals.
***Potato & Wine Seminars? ........ as the U.S. Dept. of Agriculture will pay out US$200M in funding to 67 U.S. trade groups to promote U.S. agricultural products overseas. This includes US$16.7M for the Cotton Council Int'l, US$6.8M for the Wine Institute & US$6.1M for the USA Potato Board. The fiscal 2006 allocations will be administered by the Foreign Agricultural Service's Market Access Program. The program uses funds from USDA's Commodity Credit Corp. to share the costs of overseas marketing and promotional activities with national agricultural trade groups, state and regional groups, & cooperatives. U.S. agricultural exports for fiscal 2006 are forecasted to be US$68Bn, up from previous record of US$62.5Bn in fiscal 2005. Fiscal 2007 exports expected to reach US$72Bn.
***Mandatory Border E-Manifests In 60 Days ....... as the 1st phase of mandatory compliance with the Automated Commercial Environment (ACE) filing of truck e-manifests will take effect Jan. 25, 2007, all carriers crossing at all U.S. ports of entry in the states of Washington & Arizona and at ports in North Dakota (at Pembina, Neche, Walhalla, Maida, Hannah, Sarles & Hansboro) are required to comply with ACE.
***Canadian Border Inspection Fee Delayed ....... as the U.S. Dept. of Agriculture's Animal & Plant Health Inspection Service said Nov. 17 it's delaying the implementation date for collecting user fees for inspections of vessels, trucks, railroad cars & planes carrying fruits and vegetables grown in Canada or transiting the country. Originally set for Nov. 24 -- now on March 1, 2007 -- all exemptions for the user fee will be lifted on all commercial transportation entering the U.S. from Canada. User fees for airline passenger inspections take effect on Jan. 1. The USDA said recent inspections along the Canadian border have resulted in "numerous interceptions" of prohibited fruits & vegetables originating in countries other than Canada. Interceptions of produce, meat & poultry have increased 94%.
***A Century of Banana War ....... as the Ecuadorian government has taken the 1st step towards suing the EU at the WTO for continuing to unfairly discriminate against its banana exports, violating a series of prior rulings. Its decision to do so, however, has been contested even at home, with some domestic banana producers questioning the wisdom of its strategy. On 16 Nov., Ecuador filed a request for consultations with the EU, charging that Brussels had failed to comply with WTO decisions. This does not mean that a dispute panel will immediately be set up to rule on the EU's banana import regime -- consultations are simply the initial stage in the WTO litigation process. For over a decade, several Latin American banana producers, the U.S., and the EU have clashed over the latter's system for granting preferential market access to bananas from its former colonies in the African, Caribbean, & Pacific ACP) group of countries. Countries such as Ecuador & Colombia, along with the U.S. which intervened on behalf of U.S.-owned banana exporters such as Chiquita, have won a series of cases arguing that the EU's array of multiple tariffs, quotas & import licences did indeed discriminate against Latin American banana exports. History.
***U.S. Beef Battle Continues Winding Down ....... as the governments of Peru & Colombia have lifted their import bans on U.S. beef products. They joined many countries around the world in banning U.S. beef shipments after the U.S. Dept. of Agriculture confirmed a case of bovine spongiform encephalopathy (BSE), or "mad cow" disease, in a Washington state cow in late Dec. 2003. Many countries have since lifted their bans, including Japan. In 2003, the U.S. exported a combined total of US$4M worth of beef products to Colombia & Peru.
***3PL Report Studies Reasons For Use ....... as Fortune 500 companies spent US$158.1Bn on outside logistics services in 2005, according to a new research report by Armstrong & Associates (Stoughton, Wis.). The study, titled "Trends in 3PL/Customer Relationships," says that automotive industry customers spent an estimated US$35.8Bn with 3PLs. The research report utilizes a proprietary database of 2,864 3PL customer relationships and provides detailed information on the top outsourcers to 3PLs, service demand and market size by industry segment. The average customer is reportedly utilizing 3PLs for 3 distinct services: transportation management (20.5%), warehousing (19.3%), and value-added services (18.5%). "The greatest penetration of automotive accounts is by European 3PLs: Ryder, Penske, & Menlo," said Armstrong & Associates. "Retailing relationships are led by Maersk, Meridian IQ and DHL. BAX is the leader for Fortune's technology sector."
***Logistics Teachers To China ......... as DTW, the largest freight forwarder in China, has signed up as the 1st corporate customer in that country to receive logistics training from the American Society of Transportation & Logistics (AST&L), a professional society that promotes continuing education through logistics certification programs. AST&L will open an office in Beijing by Dec. 1. China needs logistics expertise to reduce the economic drain on goods storage and movement in a country where logistics costs are roughly equivalent to 20% of Gross Domestic Product, more than double what they are in the U.S.. In fact, the term "logistics" was said not even in the Chinese vocabulary until 5 years ago. China launched a massive transportation infrastructure spending plan to build highway & rail networks connecting major industrial areas, but completion is still several years away and secondary roads are often unpaved or not wide enough for large trucks commonly found in Europe & the U.S. The majority of logistics companies are small family businesses that own a few small trucks without providing any added value through packaging, assembly or technology-based tracking. AST&L will jointly organize the 1st Sino-American Logistics Conference & Exhibition along with The NIT League and the China Council for Promotion of Int'l Trade. The event in Beijing & Shanghai July 18-21 -- will focus on promoting American imports & logistics practices for shipping from the U.S.
***No Stopping This Logistics Juggernaut - The World Is Next....... as Indian wire services reported Nov. 27 that Bharti Ent. has tied up a 50-50 joint venture with Wal-Mart. "While foreign retailers are not allowed to open stores in India that stock more than 1 brand, Wal-Mart, with US$315Bn in revenues, will manage procurement, inventories & logistics," the Times of India reported. The Indian partner will set up stores under a franchise arrangement to open hundreds of stores, but details, including the size of investment & branding, still to be finalized. The 1st store will open in Sept. 2007.
***Seal -- Or No Seal? ....... as carriers have heard many of the rumors associated with cargo container seals. These urban legends have asserted such claims as all domestic cargo containers, empty or not, must have a cargo seal. What is the truth? To date, cargo sealing is still a wise security best practice, both for border crossing and domestic movement of freight, but is not mandated (with the exception of a state hazardous materials regulation in California). Motor carriers who cross the border and who are not participating in C-TPAT/FAST can do whatever they want &emdash; seal or no seal. Even those involved in C-TPAT are not mandated to use a seal. They will not be cited or fined. However, use of the ISO/PAS 17712 high security seal for C-TPAT/FAST demonstrates security best practices that CBP requires for membership in the programs. Not using it will keep a motor carrier from gaining the benefits of C-TPAT, including the use of the FAST lane, and may jeopardize its participation in the voluntary programs. Customs may view it as not securing the supply chain and see the motor carrier as a risk, therefore losing the C-TPAT and FAST lane benefit of fewer inspections at the border. If the container is not sealed, odds are the carrier (FAST/C-TPAT-approved or not) will have to take the truck to a secondary inspection station and the entire cargo & truck will be examined or x-rayed for possible contraband, weapons of mass destruction, or illegal aliens. If the FAST/C-TPAT member does not have the appropriate ISO/PAS seal, or no seal at all, you can bet it will be duly noted, and the motor carrier's FAST and C-TPAT benefits will be questioned. If you are crossing the border, use of a high security seal will be to your advantage. This is true whether or not you participate in FAST and/or C-TPAT. It looks favorable in the eyes of CBP, but it is not a regulation or statute.
***New Order Does Not Like Either Mexican Trucks or Long Trucks..... as the U.S. Congresman who is expected to lead the House Transportation & Infrastructure Committee in the next U.S. Congress said he opposes giving access to U.S. highways to longer domestic trucks and to trucks from Mexico. Rep. James Oberstar (D &endash; Minn.), the current ranking minority member on the committee who is widely expected to be named chairman of the panel when the Democrats take control next year, also said he believes tolls are an unfair way to fund highways. There may be a sea change for transport in Congress next year.
***Intermodal Volume Sets New Record ....... as 3.7 million loads in 3rd quarter, increasing by 4.9% and topping the previous record set in 2nd quarter, the Intermodal Assn. of North America said. Domestic container traffic increased 3.1% in the quarter, but trailer traffic fell by 5%, reflecting a continuing shift of domestic freight to containers, IANA said. Overall domestic volume fell 0.5%, hurt by a decline in manufacturing. The overall increase &emdash; led by an 8.6% rise in international traffic spurred by higher imports &emdash; marked the 18th consecutive quarter of growth and included an all-time monthly high of 1.3 million shipments in Aug., IANA said.
***What's Your Credit Rating? ....... as Jerry Moyes, the former chairman & CEO of national carrier Swift Transportation is offering to buy the trucking firm & take it private. Stock analysts who follow Swift's fortunes note that if the purchase goes through, Moyes will accrue liability of more than US$2Bn. Most recently in reporting 3rd quarter results, Swift had operating revenues that climbed just 0.3% to US$815.0M, up from US$812.9M in 2005.
***Dreaming The Intelligent Cold Chain ....... as Deloitte Consulting LLP and the RFID Research Center at the University of Arkansas are working together to monitor & control conditions in the distribution chain for perishable goods. Deloitte & UA collaborated with Chiquita Brands Int'l (Cincinnati), which provided refrigerated trucks and perishable products from its supply chain. Researchers found that temperatures within a shipping container can vary up to 35% from pallet to pallet, contributing to perishable freight losses. When these adverse events&emdash;such as unacceptable temperature changes&emdash;occur, being able to quickly alert all parties & take remedial action can provide real value. The project shows that wireless & sensory technologies are a cost-effective way to investigate temperature & other conditions within a supposedly environmentally controlled trailer. Preliminary data from the experiment are already beginning to provide insight into a 'real world' environment that until now had been prohibitively expensive to track. Overall, this project--even at this early stage--is bringing into focus the vision of an intelligent cold chain.
***RailAmerica Inc. Acquired ....... as the short-line & regional rail service provider, has entered into a definitive merger agreement with Fortress Investment Group LLC. Fortress has offered RailAmerica's shareholders US$16.35 in cash for each share of common stock, up 32% on the New York Stock Exchange. The total value of the transaction, including the refinancing of RailAmerica's existing debt, is about US$1.1.Bn.
***Company Gets New Agility ........ as PWC Logistics group of companies, which includes GeoLogistics, Transoceanic, & Trans-Link, is re-branding the company by unveiling a new company name & logo -- "Agility " -- now a 20,000 employee company with over 450 offices in more than 100 countries & publicly traded, with annual revenues of US$4.5Bn.
***Pumped Up Logistics? What? ........as Aerobic Creations, Inc.(aerobics workout DVDs) has now created a new Transpacific logistics group as a combination of -- Maritime Holdings US Logistics Inc., FMI Intll, the TUG Logistics Group of companies, Summit Global, SeaMaster Logistics (Hong Kong) Ltd. and AmeRussia Ltd -- to be know as Summit Global Logistics Inc.
***UTi Gains Software Arm ...... as Rancho Dominguez, Calif.-based forwarder UTi Worldwide Inc. has acquired Span America Holding Co. & Span Manufacturing Ltd., a value-added provider of supply chain management software, primarily in North America. The Span Int'l Group of Cos., based near Toronto, was privately held & will now become part of UTi's contract logistics team in the Americas. Span had annual net revenues of US$36M, for the year ended Dec. 31, 2005. Terms not disclosed.
***Blue Ocean To China Rail ...... as Zim Integrated Shipping Service Ltd is partnering with the Chinese government to build 18 rail container terminals in China. The joint venture plans to invest US$2Bn in the next few years to build large-scale rail container terminals in 18 selected cities over 2 phases in China by 2010. The 11 cities included in the 1st phase are Shanghai, Kunming, Chengdu, Chongqin, Wuhan, Xian, Shenzhen, Qingdao, Dalian, Harbin & Tianjin. Cities in the 2nd phase are Zhengzhou, Lanzhou, Shenyang, Guangzhou, Urumqi, Beijing & Ningbo.
***Another Reason For Quality Cargo Insurance ....... as thieves struck forwarder Hellmann Worldwide Logistics twice this month in the UK, stealing more than US$2M of Xbox 360 video game consoles. Latest incident happened Nov. 27 when a truck hijacked shortly after leaving terminal near Lichfield, Staffordshire -- made off with the truck, later found empty. Rather than debate the fine security measures of Hellmann in court -- we are certain these shippers secured coverage through a freight forwarder.
***Changing Wine Into Water ...... as audacious thieves hoping to get rich in a "red gold" rush have caused serious transport disruptions by stealing copper wire from a major Australian train network. There have been over 20 incidents of overhead wires being stolen on Melbourne's rail network since Sept., causing disruptions to about 500 train services & stranding thousands of passengers. Copper raiders have also hit cables on rail lines in Italy, where bridges & even tombs have also been targeted by thieves as worldwide demand for the metal soars. Police said the thieves were acting foolishly because the copper they were stealing would fetch only a few hundred dollars from scrap metal dealers. "What they are doing is life threatening & it's only a matter of time before someone is killed or injured, police said. Copper prices hit an all-time peak of US$8,800 a metric ton in May but are now down more than 23% on that level.
***My Grandmother The Trucker? ...... as Schneider National said it was "99% certain" the firm would convert its entire 12,000-truck fleet to automatic transmissions beginning in 2007, part of a growing trend among carriers of all sizes. Fleet operators said they are converting to automatic transmissions, primarily because the trucks are safer. Breaker, Breaker - I'm just hitting the gas peddle! It's not the same.
***Invasion of The Killer Weeds ..... as the U.S. Dept. of Agriculture's Animal & Plant Health Inspection Service wants to generate a public discussion about how best to avoid the import of invasive plants & weeds into the U.S. Anyone can access the discussion & read the comments, but registration is required in order to participate in the discussion.
***It Was Just For The Kids ......as an Australian bus driver who was 13 times over the legal alcohol limit while driving a bus load of schoolchildren had a simple request for police who arrested him for drunken driving, an Australian court heard Nov. 22. "Can I finish my run, at least to drop these kids off?" the driver asked. A country court in New South Wales state was told 50-year old David Stack had a blood alcohol level of 0.26, which is 13 times the legal limit for a bus driver, when he was stopped on Nov. 7. Police were alerted after Stack's bus was speeding & swerving across the road. Now unemployed, Stack to be sentenced in Feb. Kids are not cargo.
***TexMex Border Cams ....... as Texas has started broadcasting live images of the U.S. border on the Internet in a security program that asks the public to report signs of illegal immigration or drug crimes. A test Web site is live with views from 8 cameras & ways for viewers to e-mail reports of suspicious activity along the 1,240 miles of Texas/Mexico border using the Internet. Previously, the images had only been available to law enforcement & landowners where the cameras are located.
***Escape From New Jersey !....... as it appears some wild turkeys were trying to get out of New Jersey before Thanksgiving Day by rail. The NJ Transit said train officials reported a dozen wild turkeys waiting on a station platform in Ramsey, about 20 miles northwest of New York City, on Nov. 22. "For a moment, it looked like the turkeys were waiting for the next outbound train," said a spokesman for NJ Transit. "Clearly, they're trying to catch a train & escape their fate." Transit workers followed the bird's movements on surveillance cameras. A Ramsey police dispatcher said the department had received calls about the traveling turkeys who also were blamed for causing morning rush hour traffic problems on a roadway. The Ramsey Rescue Squad said "Maybe they're trying to make a break."
2. The Cargo Letter Financial Page ______
**Deutsche Post AG (parent of DHL Americas) UP as 3rd-quarter profit rose to US$685.2M, up from US$525.7M in 2005
**EGL Inc. UP with net income of US$19.5M in 3rd quarter, up 2% compared to US$19.2M a year ago.
**Expeditors Int'l of Washington Inc.. UP with a 32% rise in 3rd quarter net income to US$63.8M.
**Neptune Orient Lines. (APL parent) DOWN as 3rd quarter core earnings drop 66 % to US$82M, from US$243M in same quarter last year.
**A/S Dampskibsselskabet TORM (Dutch tanker). UP with net income of US$66.9M in 3rd quarter, marginally over US$66.7M in same period 2005
**Target Logistics. DOWN as net income for fiscal 1st quarter ended Sept. 30 declined to US$276,952 or 1 cent a share, down from US$477,078 or 2 cents in 2005 1st quarter.
**TNT. UP as 3rd-quarter profit from continuing operations rose 5% to US$214M
**UAL Corp. (parent of United Airlines) UP with 3rd quarter net profit of US$190M, its 2nd successive profit since exiting Chapter 11 bankruptcy protection in Feb.
**Volga-Dnepr Group (parent of Volga-Dnepr Airlines & AirBridge Cargo) UP as 9 month revenue increased 55% to a record US$486.9M.
OUR "B" Section: FF World Air News***
3. Freight Forwarder World Air Briefs ___
***US Airways Goes For Delta ...... as the carrier which recently merged with America West Airlines, has made an US$8Bn offer for bankrupt Delta Airlines that would create one of the world's largest airlines. US Airways said it would use about US$4Bn each in cash & stock to buy Atlanta-based Delta. The new airline would operate under the Delta name, following the same branding strategy that America West used in taking the US Airways name after it acquired the airline in Sept. 2005. A merger would impact freight forwarders & shippers who use US Airways & Delta, which is a large provider of belly capacity with US$121M in cargo revenue in the quarter ended Sept. 30. Tempe, Ariz.-based US Airways estimated that the merger would produce US$1.65Bn in annual savings from reduction of redundant operations, including overlapping routes, airport facilities, systems & overhead, as well as lower distribution costs & renegotiated contracts with vendors. The new line would continue to serve all destinations in the Delta and US Airways networks, but with fewer planes. The Delta brand will prevail.
***Has US Airways Set Off Consolidation Wave? ...... as the airline industry was shaken up this month by a multi-billion-dollar offer for a troubled carrier, with experts saying the bid would lead to more deals and leave just a handful of major airlines flying -- that was the description of US Airways' US$8Bn bid for Delta Air Lines. But it could just as easily have described the outlook on May 24, 2000, when United Airlines parent UAL Corp. agreed to buy US Air for US$4.3Bn. At that point back in the spring of 2000, the 6 major carriers were widely expected to shrink to 4 or even 3 from more mergers. But after more than a year of review, the U.S. Justice Dept. blocked the UAL-US Air deal. Then came Sept. 11, plunging fares & air traffic, followed by skyrocketing fuel prices and the growth of low-fare competitors. Four of the 6 major airlines have gone into bankruptcy court a total of 5 times since then. All have cut workers, renegotiated labor deals & slashed other costs. But more than 6 years later all 6 are still flying. But with airlines filling a record percentage of their seats & finally returning to profitability after more than US$40Bn in industry wide losses from 2001 through 2005, the time may finally be right for the long-anticipated consolidation. Assuming US Air does grab Delta, then American Airlines parent AMR Corp. might well grab Northwest Airlines, which is also in bankruptcy & has almost no route overlap with American. And that could clear the way for United and Continental Airlines to get together. Northwest, which helped Continental fend off unwanted takeovers in the 1990s, today has the ability to block any deal for Continental by another carrier. But that would evaporate if Northwest itself is bought, or buys another airline.
***Air Cargo Grows More Slowly ...... as the Geneva-based Int'l Air Transport Assn. said that Int'l air freight traffic in Sept. and the first 9 months of 2006 grew below the historic long-term average of 6%, at 4.9% and 5.2 % respectively. For the month of Sept., Middle Eastern carriers lead the growth with a 13.9% year-on-year increase in freight-ton kilometers, followed by Africa & Asia Pacific, both at 5.8%, then Latin America 2.9%, Europe 2.6%, & North America 2.5%.
***Feulishness Eases ....... as decreases in global jet fuel prices has led many of the world's air carriers to decrease their fuel surcharges (FSC) to US$0.50/kg, or EUR0.50/kg on or near Oct. 26, 2006. However, many major Asia-based carriers did not announce when they planned to decrease their fuel surcharges at that time. The FSC is a fee assessed by the airlines to all freight forwarders.
***Int'l Air Cargo Capacity To Expand ....... as due to increasing passenger traffic and the liberalization of Int'l services, the world airline market is investing in fleet expansion to increase seating capacity & offer improved efficiency. Accordingly, Airbus & Boeing have received record orders for new airplanes in 2006 from airlines all over the world, which have almost doubled their total orders. Such large orders indicate a rapid increase in seat capacity in the near future and thus a corresponding increase in cargo capacity. A significant number of deliveries however, will be utilized for fleet renewal as many airplanes are in need of replacement. Approximately 42% of the deliveries between 2006 & 2010 will be dedicated to fleet modernization, which will result in the increased efficiency & safety of next-generation airplanes.
***Supply Chain Swamps A380 -- But Could It Sink? ...... as FedEx Express has signed an agreement with Boeing to acquire 15 new Boeing 777 Freighter aircraft with options to purchase an additional 15 aircraft. A dramatic example of the impact that a supply-chain & production delay can have on sales, the decision to purchase the 777Fs was reportedly made after Airbus, the European aircraft consortium based in Toulouse, France, announced significant delays in the delivery of its A380. FedEx Express cancelled its order for 10 A380-800Fs. The Boeing 777 Freighter is the world's largest twin-engine cargo aircraft with a range of more than 6,100 nautical miles & a revenue payload capacity of 171,000 pounds. What's next for Airbus?
***More Next Generation Boeing Freighters ...... as Korean Air Lines has also ordered 10 Boeing freighters for delivery starting in 2009. The Seoul-based carrier's order comprises five 747-8F & five 777-200 freighters. Korean Air is adding the capacity to handle Int'l shipments of mobile phones, microchips and other high-tech products. Korean Air also reportedly ordered 15 Boeing passenger planes.
***Benchmark 150 ....... as Boeing & Air China welcomed the delivery of the 150th Boeing airplane to Air China -- the new Boeing Next-Generation 737-800
***UPS Sets A New Int'l Delivery Standard ...... as targeting 30 of the most active trading markets, it will begin offering U.S. air shippers 3 "time of day" delivery options. Its Worldwide Express Plus product will offer 8:30 a.m. or 9:00 a.m. delivery depending on destination. Worldwide Express will provide 10:30 a.m. or 12:00 noon delivery, again depending on destination. And, Worldwide Saver will provide guaranteed end-of-day delivery. The services, which will be available from Jan. 1, 2007, include Australia, Austria, Belgium, Canada, China, Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Indonesia, Ireland, Italy, Japan, Luxembourg, The Netherlands, Philippines, Poland, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, United Kingdom and Vatican City.
***It's What Is Also Happening To Cargo ........ as Delta Airlines has begun testing the viability of an RFID baggage tracking solution in 2004. Delta then estimated that approximately 0.7% of baggage handled is misplaced, which translated into roughly 800,000 bags per year. Transporting those bags to their rightful owners cost the company an estimated US$100M annually. Individual travelers will also have the opportunity to purchase "BagChip" tags directly from RFID, LTD. "BagChips" will host the travelers name, address & phone number as well a unique numeric ID. Airport personnel can scan baggage inventory using hand-held medium range transponders to locate the lost bags at predetermined places within the airport's baggage system. Estimated price for a "BagChip" is US$10 for the 1st version of tags that have not been integrated into any airline's legacy baggage system.
***New DHL Thai Base ....... as it launched its US$22M Southeast Asia hub on Nov. 13 at Bangkok's new Int;l airport. DHL's 129,000 square feet cargo facility at Suvarnabhumi is 5 times larger than its former facility at the old Don Muang airport and has the capacity to handle more than 23,000 pieces per hour. Asia currently leads the world in the air cargo industry with the inter-Asian air cargo market expanding at a rate of almost 11% per year and express volume expected to grow up to twice that rate.
***UPS Expands Home Air Base ....... as it will guarantee US$42.6M of Louisville Regional Airport Authority Special Facilities Revenue Bonds and use the proceeds to build a new terminal at the airport for handling heavy freight.
***Forwarder Buys Airline ...... as Orchard Park, N.Y.-based freight forwarder National Air Cargo has purchased air carrier Murray Air Inc., based in Ypsilanti, MI. Murray Air operates three DC-8 cargo aircraft primarily for the automotive industry. Terms not disclosed.
***Passengers Storm Runway ....... as Brazil's Air Force commander told frustrated air travelers on Nov. 21 he will smooth out snarled air traffic before the holiday season, one day after 40 angry fliers marched onto a runway to protest a 10-hour delay in the city of Curitiba. "We have enough staff for the end of the year & passengers don't need to worry," Luiz Carlos da Silva Bueno said at a public Senate hearing on delays that have forced travelers to sleep on tile floors and stranded politicians in the capital Brasilia during weekends. The Air Force runs Brazil's air traffic control system, which has been thrown into chaos this month by controllers staging work slowdowns over poor pay & lack of staff. The suspension of 10 controllers on duty at the time of Brazil's worst air crash in Sept. has added to workloads. On Nov. 20, nearly 25% of planes were delayed at least an hour. Air travel is vital for businessmen, officials & tourists because of Brazil's vast size. In an incident on Nov. 20, about 40 passengers swarmed onto the runway at Curitiba airport to protest a 10-hour delay in a Gol airline flight to the tourist & commercial border city Foz do Iguacu. They shouted "Respect, respect" and "Gol is useless." A new group of 65 controllers will graduate from a training program at the end of Nov.
OUR "C" Section: FF World Ocean News***
4. FF World Ocean Briefs ____________
***Antitrust Repeal ...... as the National Industrial Transportation League will make an evaluation of the Ocean Shipping Reform Act a top priority in 2007. In late Sept., the European Union's Competitive Council adopted the European Commission's proposal to repeal Regulation 4056/86, which allows carrier groups to set common freight rates & cooperate on capacity. Before the repeal takes effect in Oct. 2008 the EC will draft guidelines for the ocean shipping industry to follow. Liner carriers in the U.S. trades have been exempt from the country's antitrust laws since the implementation of the 1916 Shipping Act. The privileges, which allow carriers to jointly discuss pricing without breaking the law, were carried over to the 1984 Shipping Act. Antitrust immunity, although more limited today, remains in place in the 1998 OSRA, and has been allegedly used by the liner carriers in discussion agreements to impose uniform surcharges and general rate increases on shippers & NVOCCs.
***Driving The Market - Literally ....... as Global financial services firm JP Morgan Chase is considering buying or leasing ships to support its recent activity in commodity markets, Reuters reported. Commodity trading companies & banks often own or control ships to ensure on-time delivery of products and sustain trading prices. JP Morgan is heavily involved in energy & commodity trading.
***U.S. Ports August Volume Record ....... as they have handled more cargo than ever before. Aug. figures for ports hit 1.44 million twenty-foot-equivalent units (TEUs). This was up 5% from July and is 8.4% ahead of Aug. 2005. Aug., the latest month for which figures were available, also topped the prior year's peak month of Oct., which registered 1.37 million TEU. For 2006, Sept. was expected to reach 1.4 million TEUs & Oct. 1.46 million TEUs, 4.9% and 6.5% ahead of the same months in 2005, respectively.
***New World Alliance Will Depress Winter Capacity ...... as its members APL, Hyundai Merchant Marine, and Mitsui O.S.K. Lines said that from Nov. through April 2007, the alliance will suspend about 4,000 TEUs of capacity per week & adjust services to meet decreased trade demand anticipated during the annual slack shipping season. In late Oct. Grand Alliance carriers Hapag-Lloyd, NYK & OOCL said that from Nov. 20, they would reduce combined capacity in the market by about 3,000 TEUs per week to balance supply & demand.
***But CMA CGM Says Shipping Rate Depression Bad Capacity Perception ...... as its Chairman Jacques Saade has echoed the growing opinion that the current depressed ocean shipping freight rates have been dragged down due to industry perception of, rather than actual vessel overcapacity. Saade told delegates at the Shipper Forum 2006 in Amsterdam this month that volume from Asia to North Europe and the Mediterranean increased by a combined 15.5%, equivalent to 11.5 million TEUs. "Nevertheless, shippers, newspapers, magazines & the media in general have reported that ships ordered for delivery between 2006 & 2009 are much higher than the expected growth in Asia, and in China in particular," he said. "The ship owners started panicking. For no reason that was justified freight rates went down by end 2005, early 2006, by about 30%. By the 3rd quarter 2006 ship owners looked back at their bookings & found that all their ships were almost full, averaging about 95%."
***U.S. Firms Say Depress CMA CGM's Port Effort ....... as American private equity group Carlyle has partnered with rival SSA Marine to bid for P&O's U.S. ports business & prevent the strategically sensitive assets falling into the hands of French shipping giant CMA CGM. It was reported that CMA had broken an understanding that the U.S. ports could only be sold to an American owner, by forming a consortium with Morgan Stanley to bid for the assets, a move likely to cause controversy in the U.S. The alignment between Carlyle and SSA Marine raises the prospect of a hard-fought contest for the ports. Carlyle is one of the world's most powerful private equity firms and CGA CGM generates revenues of over US$6Bn a year. DP World acquired P&O Ports North America in March as part of its US$6.8Bn takeover of London-based Peninsular & Oriental Steam Navigation Co. in March.
***Palm Beach Says No Nukes ....... as it has been confirmed by U.S. Customs & Border Protection that every cargo container being trucked out of ports in Fort Lauderdale, Palm Beach County & Miami will now be screened for radioactive material beginning next spring. An average of 1,500 containers a day leave Port Everglades in Fort Lauderdale, carrying everything from produce to spare parts. The Port of Palm Beach in Riviera Beach counts about 500 trucks daily and Miami's traffic ranges between 1,500 & 2,000 trucks a day. Trucks carrying containers will pass through a Radiation Portal Monitor that resembles a cross between a tollbooth & a weighing station.
***VeriTainer Corp. Means No Nukes ....... as it will begin testing a radiation detector mounted on a container crane spreader at the Port of Oakland starting in Jan. The 60-day test will be held in cooperation with SSAT and the Matson Navigation Co. at the Charles P. Howard marine terminal. It will utilize VeriTainer's "VeriSpreader" scanning technology, which moves -- aboard the gantry crane -- over container cargo in about 1 minute as it scans for potentially dangerous radiation that may be hidden in cargo containers.
***Less America In Jones Act U.S. Shipping? ...... as the U.S. Coast Guard has confirmed a decision made earlier this year that foreign components being utilized in new tankers will not prevent the vessels from operating in the Jones Act cabotage trades. This will apply to tankers currently being manufactured at the Aker Philadelphia Shipyard. The unions are upset because foreign-built components are being used in the manufacturing of ships in Philadelphia. Rear Admiral B.M. Salerno wrote a letter dated Nov. 15 to an attorney for the AFL-CIO which stated: "The fact that some of this manufacturing or 'preassembly work' could, or might, have been done in the U.S. is also not the salient issue in the reasonable administration of this regulatory requirement."
***GE Gets Red Light In Green Lane ...... as the Dept. of Homeland Security is continuing to pursue development of an electronic, tamper-evident device for securing ocean containers despite technical setbacks with the product currently under evaluation. Customs & Border Protection officials within DHS have soured on the device from GE Security -- CommerceGuard --that was the focus of testing so far, and are going back to the drawing board to evaluate products from other companies. The main complaint has been the reliability of the GE device in terms of generating false alarms that force CBP officers to expend limited resources checking intact boxes. Other makers of tracking devices combined with sensors include IBM & Savi Networks. The department envisions a container security device as a key component of its plan to grant so-called "Green Lane" benefits to trusted importers that have taken extra steps to ensure the integrity of their Int'l shipments.
***Schumacher - Marlog Wedding ...... as Schumacher Cargo Lines & Marlog Cargo USA Inc. have merged. The companies, which previously traded as separate departments, will now operate under the name "Schumacher Cargo Logistics."
***Making Shipping Rates Transparent ...... as Drewry Shipping Consultants is introducing new container freight rate benchmarks & indices "in an attempt to make this US$19Bn a year business more transparent." London based Drewry said it has created 150 sets of port region-to-port region container freight rate benchmarks, together with regional & global freight rate indices based on averages of rates paid by shippers to freight forwarders. It said the benchmarks & indices would be updated at least every 2 months and that new services, such as weekly transpacific benchmarks, would follow shortly.
***Matson Navigation Raises Pacific Domestic ....... as it will raise its rates for its Hawaii service by US$100 per westbound container & US$50 per eastbound container, effective Jan.1 to offset the increased cost of terminal handling. Matson estimates that the increase will raise rates by an average of 3.3%. The increase will be filed with the Surface Transportation Board. In addition, the company will raise its terminal handling charge by US$150 per westbound container & US$75 per eastbound container, also effective Jan. 1. Matson's current terminal handling charge is US$325 westbound & US$165 per eastbound container. Consider this a trend.
***More Cars Sent To Sea ....... as the number of vehicles shipped by sea will reach about 19.8 million by 2010, 32% more than the 15 million units shipped in 2005, according to a new report from Drewry Shipping Consultants. The report notes that about a quarter of the 64 million cars produced globally each year are exported. Drewry said that as a result the car carrier fleet is likely to grow about 20% by 2010. Today, the London-based consultants say there are 600 car carriers with 150 ships on order. Major car carrier companies include: Wallenius Wilhelmsen Logistics, Hoegh Autoliners, Eukor Car Carriers, & the car carrier affiliates of the 3 major Japanese liner companies, NYK, MOL, & K-Line.
***Goodbye Great White Fleet After 135 Years...... as Cincinnati-based Chiquita Brands is considering selling off its fleet of reefer vessels operated by subsidiary Great White Fleet following this past summer's scare over fresh spinach, plus sagging prices for bananas. It suspended shareholder dividends in late Sept. as its shares plummeted by 14% &endash; the largest drop since spring of 2003. It has retained Fortis Securities to explore strategic alternatives including a sale of the Great White Fleet, a sale-leaseback & other options. Chiquita's Fresh Express bagged-salad brand was heavily hit by the Food & Drug Administration's ban on bagged fresh spinach over E. coli contamination while bananas, the main cargo of the Great White Fleet, witnessed a price drop since the European Union eliminated a quota & raised tariffs on banana imports from Latin America. The value of Chiquita's shares fell 32% this year. The company was formed in 1871 as the United Fruit Company and became the United Brands Company in 1970, changing its name to Chiquita Brands Int'l 15 years later. Company Flag
***Supercavitatious! ....... as Northrop Grumman Corporation has won a US$5.4M contract from the Defense Advanced Research Projects Agency (DARPA) to determine the feasibility of using supercavitation technology for stable, controllable, high-speed underwater transport. Supercavitation creates a gas cavity between the vehicle surface & the water, thereby reducing drag & increasing vehicle speed. The program's ultimate goal is a new class of underwater craft for littoral missions that can transport small groups of Navy personnel or specialized cargo at speeds up to 100 knots. Wow!
***FMC Pulls OTI Tickets ....... as the U.S. Federal Maritime Commission has revoked 3 OTI licenses for failure to maintain a valid bond. The firms are -- F. Angel & Associates, Miami; Associated Cargo Services, San Leandro, Calif.; & Covenant Int'l Corp., Miami.
***This Month In U.S. Navy History .........
1775 - Continental Congress authorizes privateering.
1776 - 1st salute to an American flag (Grand Union flag) flying from Continental Navy ship Andrew Doria, by Dutch fort at St. Eustatius, West Indies.
1852 - Commodore Matthew Perry sails from Norfolk, Va., to negotiate a treaty with Japan for friendship & commerce.
1870 - Navy expedition to explore the Isthmus of Tehuantepec, southern Mexico, commanded by Capt. Robert W. Shufeldt, enters Coatzacoalcos River to begin a survey for possible interoceanic canal. Support provided by USS Kansas & USS Mayflower.
1917 - USS Fanning (DD 37) and USS Nicholson (DD-52) sink first enemy submarine, U-58, off Milford Haven, Wales.
1918 - U.S. battleships witness surrender of German High Seas fleet at Rosyth, Firth of Forth, Scotland, to U.S. & British fleets.
1924 - USS Langley (CV 1), 1st aircraft carrier, reports for duty.
1943 - In Battle of Cape St. George, 5 destroyers of Destroyer Squadron 23 (Capt. Arleigh Burke) intercept 5 Japanese destroyers and sink 3 & damage 1 without suffering any damage.
1961 - Commissioning of USS Enterprise [CVA(N)-65], the 1st nuclear-powered aircraft carrier, Newport News, Va.
***Rogue Wave ....... as the 440 foot forest products/containership M/V Westwood Pomona -- was hit by a rogue wave over 70 feet high in the Pacific Ocean Nov. 12 night. The wave smashed windows on the bridge & damaged electronics -- forcing vessel to seek temporary shelter in Coos Bay, Ore. -- 1 injury. Who has cargo insurance?
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 Nov. 2003: "Full Speed Ahead !" Amazing.
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!
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..............
Cargo & Trade>>>>>>
2006 Transport Topics Top 100 For Hire Motor Carrier Fleets
C-295 Army/Air Force Joint Cargo Aircraft ........ fresh horses
Current Trends in Shipping & Their Impact for Shipping Finance
Air Cargo's Top 5 Challenges
Asia-Pacific Economic Cooperation (APEC) Forum, Nov. 2006 ....... documents produced at Hanoi event
Contract Performance Management Now: The Foundation of Procurement Initiatives Part I: Spend Management .......free white paper
European Commission Green Paper - Future Maritime Policy
European Liner Affairs Assn. .......... proposals for a revised system of liner conferences, including a trade assn. to collect & discuss data among other things
Foreign-Trade Zone Manual -- U.S. Customs & Border Protection
Importing into the U.S.: A Guide for Commercial Importers ........complete information about importing process & import requirements -- entry, duty, marking, classification & more
International Free Trade Agreements
Int'l Institute of Marine Surveying ....... certificate program
Int'l Trade Commission ....... includes U.S. & world trade guides & information
OTEXA (Office of Textiles & Apparel) -- U.S. Commerce Dept.'s Int'l Trade Administration ........ includes trade agreements, quotas, policies & trade data for textile and apparel imports & exports
Reduce Transportation Costs By Up To 30% ........ free report
RFID At The Item Level -- More
Setting Up A Warehouse On The Fly ......... off the shelf
"Training & People Development in the Global Logistics Industry" .....white paper focuses on the reasons and the need for training & development in our industry
U.S. Code ....... searchable database of the legal Codes of the U.S.
U.S. Dept. of Commerce Interactive Tariff & Trade Dataweb ....... provides Int'l trade statistics & U.S. tariff data to the public at no charge. Includes scheduled U.S. tariff reductions
U.S. Import Quotas
What The Trade Community Should Know About U.S. Rules of Origin, Preferential & Non-Preferential Rules of Origin
World Trade Organization Int'l Trade Statistics 2006 Report ....... and previous editions
J. J. Keller's Transport Security Manual
Rand McNally Motor Carrier 2007 Road Atlas
Roadside Inspections & DOT Compliance Audits Manual
USS Midway Gift Books
World Freight & Logistics Directory .......over 14,000+ freight forwarders & logistics providers on CD
Trade Shows, Exhibitions, Conferences & Business Events Worldwide
World Trade Organization Events
1st Yangtze Shipping Forum .......10-13 Jan. 2007, Shangri-La Hotel, Wuhan, China
4th Annual North American Supply Chain & Logistics Summit .........4-5 Dec. 2006, Austin, Texas
2006 Trade Symposium - U.S. Customs & Border Protection -- "The World of Trade - Five Years After 9/11." ....... Dec. 13-15, 2006, Washington, D.C.
2nd China Int'l Container & Intermodal Transportation Development Forum ......15-16 Nov 2006, Beijing , PR China
Intermodal Exhibition & Conference 2006 ........ 5-7 Dec. 2006, Hamburg Messe, Hamburg, Germany
Intermodal South America 2007 ........24-26 April 2007, Transamerica Expo Center Sao Paulo, Brazil
Int'l Logistics & Transportation Conference & Exhibition Israel ....... Feb. 13-14th, 2007, Airport City, Lod
Logistics & Supply Chain Forum ........May 6-9,2007- Cruise Ship M/V Norwegian Dawn, NY. -- 9th year.
Managing Offshore Relationships in China & Beyond ......... March 5 -6, 2007, Los Angeles, CA
Free Webcasts - Now>>>>>>>>>
"It's All About Supply Chain Visibility"
"Making Plans Today for Tomorrow" ....... improved visibility of orders & inventory -- the real-time best practices of workload planning
"A Guy Witnesses A Road Accident" -- hysterical. Never mess with little old ladies!
Consent ..... it's come to this?
How Many Have Your Same Name? .......there are 1,048 people named James Bond in the U.S.
The Day At LAX In Time Lapse
National Dog Day
No Matter What Your Politics ...... funny
Nostalgic Walk Down T.V. Lane ....... worth a watch
Season Shot ...... ammo with flavor .... what?!
Things You Don't See Every Day ....... with "contributions" form The Cargo Letter photo libray.
Track The 2006 Capitol Christmas Tree
What Did She Say?
What Happened To The Roaming Gnome?
WTO ......... World Toilet Organization
Remembering Those Overseas At Christman & The Holidays>>>>PLEASE
Operation Military Pride - 101st Care Packages
SOS - Support Our Soldiers !
Friends of Our Troops / Military Mail Call
Operation USO Care Package
Operation Dear Abby.net - Messages from Home
DefendAmerica News - Support our Troops
Military Support Packages
Kitchen Table Gang - Send A Package to a Soldier
VFW Foundation: Operation Uplink
OUR "E" Section: The Forwarder/Broker World***
7. New U.S. Transport Related Legal Cases ____
American Home Assurance Company v. AGM Marine Contractors, Inc.
U.S. Court of Appeals for the 1st Circuit
Nov. 8, 2006, No. 05-2310
The court issued a decision applying state insurance law in an admiralty case. While the details of the dispute & the intricacies of the insurance policy are not of lasting importance, the case points out that admiralty law is not totally isolated from other fields of substantive law, particularly where, as here, there is an absence of a federal statute or a federal judicially created rule governing the issue. Read Opinion
De La Rosa v. St. Charles Gaming Company, Inc.
U.S. Court of Appeals for the 5th Circuit
Oct. 31, 2006, No. 05-41563
In an unpublished opinion, the court ruled that an indefinitely moored gaming vessel is not a vessel for purposes of general maritime law & not subject to the admiralty jurisdiction of federal courts. In this case, the gaming vessel was afloat, but had not moved since arriving at its Lakes Charles mooring in 2001. The owners had no intention of moving the vessel. Plaintiff alleged personal injury from a slip & fall on carpeting outside the elevator. The court held that there was no jurisdiction to hear the case in admiralty. Read Opinion
Asoma Corporation v. SK Shipping Co., Ltd.
U.S. Court of Appeals for the 2nd Circuit
Oct. 24, 2006, No. 05-5308-cv
The court ruled that where the charterer is also the consignee of the cargo, the forum selection clause in the charter party prevails over the forum selection clause in the bill of lading. Read Opinion
Sun Ace Shipping Co. Case .......South Korean company banned from U.S. ports & ordered to pay a US$$400,000 penalty & US$100,000 community service charge for concealing illegal discharges. Read Opinion
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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