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Law Offices of Countryman & McDaniel
THE CARGO LETTER [433]
Air & Ocean Logistics - Customs Broker News
30 April 2007
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Good Monday evening 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 our industry during April 2007!SPECIAL NOTE: There will be no The Cargo Letter for May 2007 while we are on assignment in Europe.
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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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 IssuesMichael 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 ___________
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OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs _____________
***The Cargo Letter ....... as there will be no edition for May 2007 while we are on assignment in Europe. Our website continues to blossom as traffic jumped to 8,995,010 hits for March 2007. Thanks for your support!
***National Transportation Week May 13-19, 2007 ....... as a new website lists the events for you to attend in American cities & ports.
***Happy 100th Birthday Big Brown! ........ as April celebrated the centennial anniversary of the leader in global logistics which got its start in 1907 when Jim Casey borrowed US$100 from a friend to start the American Messenger Company in Seattle, WA -- later becomming United Parcel Service. UPS is now the world's largest package delivery company & global leader in supply chain services, offering an extensive range of options for the movement of goods, information & funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries & territories & employs more than 400,000 people worldwide. See the great history.
***Sino - Japanese Partnership Hits Heights ..... as China has become Japan's biggest trading partner, surpassing the U.S. Japan's 2-way trade with Mainland China rose to US$214Bn through March, up 9% over same period in 2006. It's the 1st time that China-Japan trade, when Hong Kong is excluded, has exceeded Japan's trade with the U.S. If Hong Kong is included with the mainland, then China surpassed the U.S. as Japan's biggest trading partner in 2004. U.S. trade with Japan rose 10.3% in the period, to roughly US$210Bn. Japanese exports to China rose 21% to US$95Bn, while imports rose at 13% to US$119Bn.
***Japan & Thailand Agree To Drop Tariffs ..... as they have signed a free-trade agreement which will eliminate tariffs on a wide range of goods, from seafood to automobiles. The agreement will abolish tariffs on more than 90% of trade over a 10-year period & is expected to propel trade revenue between the 2 countries.
***UPS Survey Predicts U.S. - China Parity? ..... as a key segment of Asia's business leaders believes the region's economy will continue to enjoy strong growth in 2007, but many are more excited about the growth of India than they are China, according to a new survey by UPS. The survey of 1,200 leaders of small- & mid-sized businesses in Asia also found wide agreement that China will surpass the U.S. as the world's largest consumer economy within 10 years or less. Only 5% of those surveyed said that China's consumer market would never grow as large as that of the U.S., while 57% said the markets would reach parity within 10 years. China has built factories to serve the West, but next these factories will serve the Chinese public. In the long run of many years there will be the customary cost to the China economic engine. The survey:
***China Starts To Feel The Cost of Success ..... as the China National Textile & Apparel Council (CNTAC) has announced that the unit price of textile & garments exported from China has surged considerably. Statistics show that in 2006, the average unit price of exported textile products grew 10.14%. Sales income from the textile industry recorded a year-on-year increase of 21.3% from 2005 while total profits rose 28%. As the Chinese standard of living increases -- so do the prices of its goods to the Chinese public -- who then demand higher wages. The cycle continues until new factory sites are located -- perhaps in India. Remember, it has now been many years since the last television was manufactured in Japan. The labor cost is too high for a Japanese TV, just as for the U.S. The cycle is universal.
***Feeding The China Engine ..... as the China Ministry of Commerce has announced that Chinese firms are no longer required to apply for an import license to import products in 338 categories. The list of commodities that will enjoy a waiver of import licenses include steel products, plastic materials as well as some machinery & electronics products.
***The Power of Eyewash ...... as perhaps feeling the heat from across the Pacific, the Chinese government held a massive pirated goods destruction ceremony over the weekend of April 6 after a nationwide crackdown on counterfeit CDs, books & magazines. The government said it had collected 40 million pirated items from the country's 31 provinces in the largest such raid ever in China. Coincidentally the U.S. government had filed 2 WTO complaints against China alleging widespread violations of copyright piracy. Under WTO rules, the 2 countries have 60 days to try to iron out their differences in negotiations. If they do not reach agreement, Washington will have the right to demand WTO arbitration. The U.S. could then gain the right to impose retaliatory duties & tariffs on Chinese imports if a WTO settlement panel ultimately rules in its favor.
***Full EU Market Access -- For Some ......... as the European Commission (EC) issued a press release April 4 announcing the European Union's (EU) proposal to remove all remaining quota & tariff limitations on access to the EU market for all African, Caribbean & Pacific (ACP) regions as part of the Economic Partnership Agreement negotiations. The only exception would be South Africa where import duties would remain intact for a number of globally competitive products. The EU has proposed to implement the new system as of Jan. 1, 2008 with the exception of rice & sugar, which will be phased in.
***Less EU Market Access For The U.S. ...... as the European Commission published regulation 409/2007 on 16 April 2007 imposing additional customs duty on certain goods originating in the U.S. that are destined for the European Union. The measures are an extension of the steps taken by the EU in retaliation to the "Continued Dumping & Subsidy Offset Act" (the Byrd Amendment) in effect since April 2005. The range of goods which are subject to an additional customs duty of 15% will be increased starting 1 May 2007. More:
***Major U.S.- Korean Trade Deal ..... as after 8 formal rounds of negotiations, starting in June 2006, the Bush administration completed a comprehensive free trade deal with South Korea this month. The U.S. highlighted the benefits of the U.S.-Korea Free Trade Agreement in terms of U.S. export promotion & related job growth. It's considered to be the most significant U.S. free trade agreement since the 1993 North American Free Trade Agreement. South Korea is the world's 10th-largest economy. Two-way goods trade between the U.S. & South Korea in 2006 was valued at US$72Bn. The deal will create new export opportunities for U.S. farmers by either eliminating or phasing out tariffs & quotas on a broad range of products. More than US$1Bn worth in U.S. agricultural exports will immediately become duty free once the trade deal takes effect. Most remaining tariffs & quotas will be phased out over the 1st 10 years that the agreement is in force. About 95% of bilateral trade in consumer & industrial goods becomes duty-free within 3 years of the agreement entering into force, with the remaining tariffs to be eliminated within 10 years. Under the Trade Promotion Authority, Congress may either vote to approve or oppose a free trade agreement negotiated by the White House, but not modify it.
***What's In A Name? ..... as the Dept. of Homeland Security has issued a notice stating that, effective March 31, the official name of the Bureau of Customs & Border Protection was changed to the U.S. Customs & Border Protection (CBP). We still like U.S. Customs Service which worked well for a couple of hundred years.
***New CBP Disaster Website ...... as U.S. Customs & Border Protection has developed a communication template to provide U.S. importers & cross-border logistics providers information about the operating status of ports of entry in the event of a natural disaster or terrorist attack. Following an event that causes heightened security measures or damages port infrastructure, CBP will post information designed to help traders make decisions on how to continue import operations through their normal port of entry or alternative locations. God willing the site will never be used.
***C-TPAT Doesn't Work For Some? ..... as some say it's too complicated for small forwarders & brokers. But Todd Owen, CBP executive director for Cargo & Conveyance Security said the program that provides incentives for U.S. companies to improve security in their overseas supply chains is not rigid & allows companies to adapt security criteria to meet their operational needs. He told the annual conference of the National Customs Brokers & Forwarders Assn. of America (NCBFAA) April 19 that U.S. Customs & Border Protection realizes a one-size-fits-all approach for the voluntary Customs-Trade Partnership Against Terrorism (C-TPAT) does not work well, especially for a customs brokerage industry that is dominated by small & medium-size businesses. Nearly 10% (643) of the 6,700 eligible companies are certified as C-TPAT members, & 525 of those companies have had their security plans vetted & approved by CBP. So what do you thing about C-TPAT requirements? Is the program too complicated for the small broker?
***3PL Market Surges ...... as following a strong 2005 in which revenues for U.S.-based 3rd-party logistics providers (3PLs) passed US$100Bn for the 1st time, 2006 revenues took it a step further with revenues breaking the US$110Bn mark, according to a report released by Armstrong & Associates, a supply chain management consultancy. The report predicts that the compound annual growth rates for the four 3PL segments profiled will grow between 6% & 15% in 2007, with domestic transportation management projected for 10% to12%, Int'l transportation management at 12% to15%, dedicated contract carriage at 6% to 8%, and value-added warehouse/distribution at 8% to 9%.
***Monumental Mango Milestone ..... as the U.S. Chamber of Commerce & U.S.-India Business Council are celebrating a Bush administration decision to allow Indian mangoes to be imported into the U.S. An effort to import the fruit has been ongoing for 18 years! Who knew?
***U.S. Groups Say "No" To Mexican Trucks ..... as groups including the Teamsters Union, filed suit in federal court last week to prevent implementation of a Bush administration cross-border truck pilot program that would allow Mexican trucks deep into the U.S. The lawsuit, brought by the Teamsters, the Sierra Club, Public Citizen, the Owner-Operator Independent Drivers Assn. & smaller groups, charges that the 1 year pilot program has not met federal disclosure requirements. The plaintiffs are seeking an injunction against the implementation of the project until those requirements can be met. Filed in U.S. District Court in San Francisco, the suit names U.S. Transportation Secretary Mary Peters as a defendant. The U.S. Dept. of Transportation said in Feb. it would begin a 1 year pilot program to allow a government-certified group of 100 Mexican trucking companies to operate beyond the current 20- to 25-mile commercial zones along the U.S. Southwest border.
***Mexican Groups Say "No" To Mexican Trucks ...as after 12 years without implementing the transportation chapter contained in the North American Free Trade Agreement (NAFTA), the U.S. government will finally permit some 100 Mexican carriers to provide door-to-door service between Mexico & the U.S. as part of a 1-year trial. But the major trade association representing Mexican motor carriers wants its government to cancel the controversial pilot program that would permit trucks and their drivers to deliver freight beyond the current north-of-the-border 25-mile limit. CANACAR (Nacional del Autotransporte de Carga), recently appeared before the Communication & Transportation Committee of the Mexican Senate, requesting that it shelve the program that would permit 100 Mexican trucking firms open access to U.S. highways as part of a 1 year pilot project. The organization's president, Tirso Martinez Angheben, notes that, "CANACAR has formally requested not to open the borders for trans-border services and to have the pilot program suspended until conditions for a fair competitive environment are existing and that the Mexican trucking industry has the guarantee of not being subject to unfair inequitable & discriminatory treatment by U.S. authorities." One major objection, according to CANACAR, focuses on what it sees as the U.S. government's lack of compliance with provisions in NAFTA. On one hand, runs the argument, Mexican trucking companies are not allowed to invest in U.S.-based trucking companies or to provide services within the country. On the other hand, U.S. trucking companies have invested in the Mexican infrastructure & have a commercial presence in the country. Ed Note: A possible move here is to mandate U.S. wages & benefits for truckers entering the U.S. The implications are serious & far reaching.
***Southern Border Now All-"e" .... as U.S Bureau of Customs & Border Protection reminds that trucks entering the U.S. through land border ports of entry in the states of California, New Mexico & Texas have been required to transmit advance manifest information through the Automated Customs Environment's (ACE) electronic Manifest (e-Manifest) system, effective April 19, 2007. E-manifests are already required in Washington, Arizona & several North Dakota crossings. Detailed information on ACE enforcement e-Manifest is available Online. www.cbp.gov/xp/cgov/toolbox/about/modernization/carrier_info/electronic_truck_manifest_info/
***No TWIC Yet....... as the Transportation Worker Identification Credential enrollment faces another delay. The program manager for the biometric maritime worker identification card suggested this month that the Dept. of Homeland Security would miss a July 1 legislative deadline to implement the 1st phase of the program by enrolling workers at the 10 highest risk ports. About 770,000 individuals at more than 3,200 facilities across the country will eventually be issued TWIC cards that use digital photographs & fingerprint identification embedded in a smart chip to verify the card holder as authorized for unescorted access to secure areas of a port. The rule covers longshoremen, truck drivers, ralroad workers & port employees. Cards are designed to be tamperproof. TSA has hired Lockheed Martin to handle the enrollment process. The TWIC card will cost workers US$137.25, but workers who already undergo background checks to acquire merchant mariner documents, hazardous material endorsements for their commercial truck drivers' license or cross-border FAST certification, will receive a US$36 discount.
***Watch Your Wood! ..... as U.S. Customs & Border Protection (CBP) has begun issuing claims for liquidated damages and/or other penalties against importers, carriers or bonded custodians for importing wood packing material (WPM) in violation of the regulations. The WPM regulations were implemented in a 3 phase approach as means of ensuring that the trade community was fully informed. Regulations require all WPM, including pallets, crates, boxes & pieces of wood used to support or brace cargo, entering or transiting through the U.S., be properly marked to indicate that it has been either heat treated or treated with methyl bromide in accordance with the Int'l Standards for Phytosanitary Measures: Guidelines for Regulating Wood Packaging Material in Int'l Trade (ISPM15), & be free of timber pests. Read the guidelines before you're fined -- Full Enforcement for Wood Packaging Material Begins July 5:
***Vet Your Motor Freight Broker ...as according to the recent Federal Motor Carrier Safety Administration census, there are now 16,930 registered transportation brokers. Numbers have been growing at a rate of 30% over the past 3 years. This is a good indication that brokers serve a useful purpose in the transport marketplace with both carriers & shippers. But choose the broker carefully because your payment of freight charges to a broker which later becomes insolvent -- could leave you responsible by law to also pay the trucker -- a 2nd time for that same service. We see this tragedy every day.
***U.S. Rail Down .... as carload traffic declined 3.4% in March to 1.31 million carloads, compared to the same month 2006, the Assn. of American Railroads reported. Intermodal rail traffic, which comprises trailers & containers on flat cars & is not included in carload figures, totaled 908,109 units in March, down 1.4% compared with March 2006.
***U.S. Rail Safer ..... as the number of train accidents declined for the 2nd year in a row & there were fewer highway-rail grade crossing collisions according to 2006 safety data announced by the Dept. of Transportation (DOT). In 36 states there were fewer train accidents in 2006, over 2005. Statistics released by the Federal Railroad Administration reveal that in 2006 railroads had 402 fewer train accidents nationwide, or a 12.4% reduction from 2005. Specifically, the number of derailments declined 8.3% and collisions between trains decreased by 27.1%. Data for 2006 also reveal that train accidents caused by human error &emdash; the leading cause of all train accidents &emdash; declined 20.2%.
***Acquisitions Do Not Lack Lack Agility ..... as Kuwait-based Agility will buy 3PLs in Texas & New Zealand. It will acquire Australian & New Zealand freight forwarders, LEP Int'l Pty Ltd. & LEP Int'l (NZ) Ltd., and the related project logistics company, Pan Orient Shipping Services Pty Ltd., which trades under the name AFS Projects & Logistics. No financial details were disclosed. Agility, formerly known as PWC Logistics, previously held a 25% equity stake in LEP Int'l. As for Texas, Agility will buy WTS of Houston Inc., and its sister company, World Transportation Services Inc., operating under the name of Global Express Line, for an undisclosed sum. Established in 1980, WTS is a global logistics company employing about 125 staff. Global Express Line is an NVOCC, started in 1982.
***Courier Gets Commodity ..... as Los Angeles based same-day shipping service provider Network Courier has acquired Ohio 3rd-party logistics firm Commodity Logistics Inc. for an undisclosed sum. They will now operate as Network Global Logistics. The combined company anticipates revenues of about US$100M in its 1st year of operations. NGL employs 450 workers at 192 facilities nationwide.
***Coming Home? ...... as DaimlerChrysler AG chief Dieter Zetsche said for the 1st time April 4 that the company is negotiating sale of its Chrysler unit. DaimlerChrysler is the world's largest manufacturer of commercial vehicles, including the Freightliner, Sterling, & Western Star brands of Class 8 trucks in North America. In Feb., Zetsche said he would consider selling Chrysler after the unit posted a US$1.5Bn loss for 2006.
***Con-Way Motors To The Tropics ...... as the regional LTL motor freight carrier has teamed with Caribbean ocean carrier Tropical Shipping for a new LTL/LCL (less-than-containerload) service, entitled TropicalDirect, which provides door-to-port shipping from the U.S. to ports in the Bahamas and the Caribbean.
***Seikan Tunnel? .......as having connected England & France, Hokaido & Honshu, Denmark & Sweden, engineers seeking to span the world are now reviving an old dream -- a tunnel beneath the Bering Strait. The Bloomberg news service reported this month on a briefing in Russia on a plan to build tunnel, with trains, and accompanying oil & gas pipelines and electric transmission lines between Siberia to Alaska at a cost of US$65Bn. Walter Hickel, former governor of Alaska will be going to Moscow shortly to speak at a conference on the subject.
***Dead Heading ..... as a former passenger traveled unnoticed for at least half a day on an executive passenger train, an Indonesian newspaper reported April 27. Anxious family members found the body of Edy Haryanto, 55, sitting in a lavatory on April 26 afternoon, more than a day after he had boarded with a group of friends in the central Javanese town of Tegal. His family became worried when Haryanto didn't get out at the station in Jakarta at the end of the 6 hour journey & his cell phone went unanswered. The body traveled back & forth between Tegal and Jakarta before a janitor told the family he had been unable to clean one lavatory because the door was locked.
***"Moveable Feast" ....... as this new book by Susan Murray reveals fascinating stories & ancient histories behind today's Int'l shipping, global logistics & supply chain management industries. Read about incredible journeys of the things we eat. A fascinating & delightful book for our industry -- it celebrates the inventive brilliance of all kinds of transport containers -- from the Roman amphora to the barrel, the refrigerated steamship to the steel shipping container -- as well as the amazing efficiency of logistics systems, whether that's a high-tech company such as FedEx or the lunch delivery men of Mumbai, using nothing but bicycles, carts & their feet.
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2. The Cargo Letter Financial Page ______
**Alaska Railroad Corp. Down with earnings of US$10.4M in 2006, down from US$12.7M in 2005.
**BNSF. DOWN as profit fell 15% to US$349M or 96 cents a share in 1st quarter, down from US$410M or US$1.09 a year earlier.
**C.H. Robinson UP with a 25.6% rise in 1st quarter net income to US$73M, compared to US$58.1M in the same quarter 2006.
**Cargolux. UP withnet income of US$82.6M in 2006, a 6.5% increase compared to US$77.6M in 2005.
**China Shipping Container Lines. DOWN with a 77% decline in its 2006 profit to US$111.9M over the previous year.
**Continental Airlines. UP with 1st quarter net income of US$22M, which is an improvement over a US$66M loss after the 1st three months of 2006.
**Covenant Transport. DOWN with a US$2.1M or 15 cents per-share 1st-quarter loss, compared with a loss of US$884,000 or 6 cents a year earlier.
**CSX Corp. DOWN with 1st quarter net income of US$240M, down 2 % from US$245M for same period 2005.
**Dubai Ports Authority. DOWN as net profit for 2006 declined 10.6% to $216.9M, compared to US$242.5M a year ago.
**Forward Air. DOWN as net income for the quarter ended March 31, 2007 was US$10.3M, compared with US$11.0M in the prior-year quarter.
**Horizon Lines. UP with 1st quarter net income of US$7.1M compared to US$2.4M in the 2006 1st quarter.
**Hyundai Merchant Marine. DOWN with net income of US$132.3M for 2006, a 68.3% drop compared to the previous year.
**Kitty Hawk Inc. UP as it earned US$8.3M or 15 cents a share in 4th quarter, compared with a loss of US$4.1M or 8 cents a year earlier.
**Kuehne + Nagel. UP as 1st quarter net income improved 28.2% to US$107.6M, over same quarter last year.
**LAN Airlines. UP with net income of US$86.1M for 1st quarter of 2007, an 87.3% increase as compared to net income of US$46.0M in the first quarter of 2006
**Mitsui O.S.K. Lines. UP with net income of US$1Bn in its 2006 fiscal year ended March 31, up 6.3% previous fiscal year.
****Norfolk Southern Corp. DOWN as 1st quarter net income of US$285M dropped 6.6% compared to US$305M in the same quarter 2006.
**Old Dominion Freight Line. UP as1 st-quarter profit rose to US$13.6M or 36 cents a share, from US$13M or 35 cents a year earlier.
**Ryder System. UP as 1st-quarter profit rose 8% to US$51.3M or 84 cents a share, from US$47.6M or 77 cents a year ago.
**Schenker. UP as operating profit rise 46.3% in 2006 to US$498.8M, helped by its takeover of BAX Global at the end of 2005.
**Through Transport Club (TT Club) UP as its total surplus & reserves to US$118.6M in 2006, while its net worth grew 8.6% to US$136.4M.
**Trailer Bridge. DOWN with a loss of US$18,093 after an income tax credit, compared to a net profit of US$7.8M in 2005.
**Union Pacific Railroad. UP with record 1st quarter net income of US$386M, up 24% from US$311M a year earlier.
**UPS. DOWN with 1st quarter net profit of US$843M, down from US$975M in the year-earlier period, while revenue improved to US$11.9Bn, from US$11.5Bn in 1st quarter of 2006.
**U.S. Xpress Enterprises. DOWN as it lost US$2.6M or 17 cents per share in the first quarter, compared with earning US$730,000 or 5 cents a year ago.
**Zim Line. UP as profit was US$80M compared to US$187M in 2005.
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OUR "B" Section: FF World Air News***
3. Freight Forwarder World Air Briefs ___
***U.S.--EU Open Skies ..... as the EU Transport Council approved the U.S. open skies agreement on March 22. However, in a concession to the UK, the agreement won't come into force until March 2008, 5 months later than had been originally scheduled. Much focus is on flights to & from London's Heathrow Airport. On the British side, at present only British Airways & Virgin Atlantic are allowed transatlantic flights from the airport. United & American are the only U.S. carriers permitted to fly to & from Heathrow. The new agreement permits any European carrier to fly from any European city to any city within the U.S. -- usually only from a single European point to a single U.S. point--while U.S. airlines will be able to fly within Europe & to destinations beyond. While complaining that the agreement seems to favor the U,S., there are provisions that may later impede the agreement. 2nd-stage negotiations are to begin 60 days after the agreement's implementation. If a formula for greater operation on U.S. routes by foreign airlines & greater foreign ownership of U.S. airlines is not reached by 2010, European's will be permitted to suspend some U.S. air traffic rights.
***Security Too Expensive? .... as the Airfreight Institute of FIATA (AFI) & the Int'l Air Transport Assn. (IATA) are forming a task force designed to improve the air freight security environment, which they say is increasingly complex & expensive and littered with measures that jeopardize cargo flows. The Global Air Cargo Security Industry Task Force (GACSITF) will be jointly led by IATA & FIATA with an executive coordination team. Membership is open to all industry stakeholder associations.
***U.S. Air Cargo Up ..... as Int'l air freight & express shipments carried by 15 U.S. airlines increased 1.7% year-on-year in Feb. to 1.02 billion revenue ton-miles, according to latest statistics provided by the Washington-based Air Transport Assn. After the 1st 2 months of 2007, ATA members' Int'l air freight & express shipments were up 1.9% to 2.06 billion revenue ton-miles. ATA Airlines are Alaska, Aloha, American, ATA, Continental, Delta, FedEx, Hawaiian, JetBlue, Midwest, Northwest, Southwest, United, UPS & US Airways.
***UPS Takes Root In China ..... as it plans to begin construction of its new regional air hub at Pudong Int'l Airport in Shanghai set to open in 2008. The new air hub is the 1st ever built by a U.S. carrier & has been in the works ever since UPS began direct air service to China in 2001 and received U.S. authority in 2005 for 3 additional frequencies per week, including 2 to Shanghai, under the 2004 U.S.-China aviation agreement. The frequencies created the volume needed for UPS to establish a regional air hub in Shanghai. The new hub will link China to UPS's Int'l network. UPS operates 76 takeoffs & landings per week in Shanghai, with an additional 24 dedicated movements operated by Yangtze River Express. Operations include service to Europe & Asia, in addition to the U.S. Flights are expected to increase as UPS's hub becomes operational & the capacity at Pudong continues to grow. UPS said the hub would be able to sort 17,000 packages per hour by 2012 with a workforce of 1,000. Over the past 5 years, UPS has invested US$600M in China, including becoming the 1st wholly-owned foreign express carrier in China. FedEx will move its Asian hub from Subic Bay to Shenzen's Baiyun Airport in 2008.
***India Post Wants A Cargo Fleet ..... as it will start dedicated air freight service using Boeing 737-200 planes leased from Indian Airlines. The preliminary plan would see India Post lease as many as 3 freighters.
***Ryanair Slumming? .... as it is to launch a new transatlantic airline serving the U.S. East Coast offering fares as low as US$12. In an exclusive interview with Flight Int'l magazine, Ryanair boss Michael O'Leary says that the recent Open Skies agreement has made this possible. The agreement allows airlines to operate transatlantic flights without individual national bilateral deals from 2008. O'Leary expects the services to secondary airports such as Baltimore, Providence in Rhode Island & New York Long Island Islip Macarthur "to be full." He expects sales of food, drink, duty-free goods & in-flight entertainment to be a major revenue earner. However, the new airline will have a "premium class" like "the best in the business" such as Virgin Atlantic. O'Leary says: "By mid 2009, we will be carrying 70 million passengers at 23 bases across Europe." While Cargo Letter doubts a US$12 fare would/could be around after the promotional period, the Ryanair concept takes advantage of "Open Skies" agreements -- and would likewise create belly cargo alternatives at secondary airports.
***Parent Buys Parent ...... as the company that owns ATA Airlines, Global Aero Logistics Inc., acquires World Air Holdings Inc. for US$315M. World Air Holdings is the parent company of World Airways Inc. & North American Airlines Inc. The transaction is expected to be completed in the 3rd quarter of the year at which time the carriers will be run as 3 separate airlines. Operating out of Oakland, Calif., North American Airlines is a small carrier with10 planes. World Airways has 17 wide body aircraft used for charters. ATA is the country's largest military charter airline. It also offers service to Hawaii, including cargo business, under a code-sharing alliance with Southwest Airlines. ATA is the only carrier with direct service from the U.S. Mainland to Hilo.
***FedEx Takes Hungary .... as expanding its global services in Eastern Europe, FedEx Express will acquire Flying-Cargo Hungary Kft. Privately held, the Hungarian company has partnered with FedEx since 2003. There will be no change in the ordinary operations of the company.
**NYK No Longer Lighter Than Air .... as it has ended its interest in the airship business by selling its 58.8% stake in Nippon Airship Corp. (NAC) to Tochiki Steamship Co. for an undisclosed amount. The Japanese shipping company invested in the passenger/cargo dirigible operation in Sept. 2003, but has decided to sell after Tochiki revealed its expansion plans.
***Romance at 35,000 Feet ........ as Mat Clarke celebrated his 1st day flying on April 19 aboard Gatwick flight TCX 037K for Fuerteventura in the Canary Islands as a newly promoted Capt. of a Boeing 757 with his wife at his side. And when Mat announced "this is the Captain speaking" wife Charis just had to listen -- she was his 2nd in command. The husband & wife team work for Thomas Cook Airlines and Mat completed his Captain's training last month. You guys! Don't join the Mile High Club at work!
***Welcome To The Friendly Skies ..... as a Nigerian cargo jet flying from Minnesota to San Bernardino for repairs last week received an important lesson in equipment maintenance & earned an escort by U.S. fighter jets. The 3 member Associated Air Cargo (no such company found by us) crew of the Boeing 727, did not maintain adequate communication with air traffic controllers during the flight & was greeted by 2 F-16C fighter jets from March Air Reserve Base near Riverside as they approached Southern California airspace April 24 evening. The military escort, requested by the FAA, guided the plane to a landing at San Bernardino Int'l Airport without incident.
***Almost Bagged ..... as baggage handler at Dublin Airport narrowly escaped being sealed in the cargo hold of an Aer Lingus flight to New York -- thanks to his mobile phone, an air accident report said April 19. The Airbus 330 was on taxi for take-off on Dec. 28, 2005 when his phone call raised the alarm & air traffic control recalled the plane so he could be freed. The accident report says the baggage handler, who was leading 2 teams of loading crews for the 325 passenger flight, was locked in the hold following confusion about number of items of luggage. There was "a clear breakdown in communications," the report said. OK, how about an intercom in the cargo holds?
***Israel Air Force Nearly Shoots Down Suspicious Continental Airlines Flight ...... as 4 IAF jets were ordered to contact the Continental Boeing 777 Flight 90 from Newark, New Jersey which failed to make radio contact with the requisite security codes prior to approaching Ben Gurion. An Israeli government spokesman informed April 12 that 2 F-15s & 2 F-16s Israeli jets came close to shooting down the Continental plane that lost contact with Ben Gurion Airport's air traffic control as it approached Israeli airspace. He added that the 4 fighter jets forced the Continental plane to change its course, at which point the pilot renewed contact. All 273 passengers disembarked safely.
***"Beaming Up" To The Final Frontier ..... as the ashes of "Star Trek" star James Doohan were blasted into space on April 28 when a rocket carrying a symbolic portion of the late actor's cremated remains were launched in New Mexico. Doohan, beloved for his role as the USS Enterprise's Chief Engineer Montgomery "Scotty" Scott, died aged 85 in 2005, but plans for his posthumous rendezvous with the stars have been repeatedly delayed. However, launch organizers Space Services Inc.(SSI) are confident that Doohan's wishes were finally granted when their SpaceLoft XL rocket blasted off from the Spaceport America private launchpad near Las Cruces, in New Mexico. Doohan's posthumous spaceflight saw him follow in the footsteps of "Star Trek" creator Gene Roddenberry, whose remains were fired into space by SSI in 1997, 6 years after his death. SSI offers a variety of services for families wishing to shoot remains of loved ones into space. Launching a single gram of ashes comes with a US$495 price tag, while sending remains into deep space, a service which comes into effect from 2009 will cost up to US$12,500.
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OUR "C" Section: FF World Ocean News***
4. FF World Ocean Briefs _______________
***Port of Los Angeles Centennial ........ Happpy 100th Birthday to America's largest container port .... although 1st cargo was received here over 300 years ago.
***U.S. Trades Up ..... as container traffic more than doubled in the past decade to an estimated 46.3 million TEUs in 2006, making the nation 2nd only to China as the largest market for containerized trade, according to the Dept. of Transportation. In 1996, 22.6 million TEUs passed through U.S. ports. The top 10 U.S. container ports accounted for 85% of U.S. containerized traffic in 2005, up from 78% in 1995. West Coast ports handled nearly 55% of all containerized trade in 2005, up from 42% in 1980, reflecting the growth of the Asian trade. Of the 26 million containers that entered the U.S. in 2005, 11 million were ocean containers & more than 15 million arrived by truck or rail. Import containers by all modes increased 37%, from 19 million, in 2000. Read the report, "America's Container Ports: Delivering the Goods."
***U.S. Ports To Hit All Time High ........ as according to the monthly Port Tracker Report, traffic at U.S. retail container ports is expected to break an all-time record in July. The July number would be an all-time record, topping the previous record of 1.51 million TEU set last Oct. 2006.The report was released by the National Retail Federation, a retail trade association, and Global Insight, a provider of economic and financial information. The ports surveyed in the report -- including LA/Long Beach, Oakland, Tacoma, Seattle, New York/New Jersey, Hampton Roads, Charleston, & Savannah. The report also said that Feb. container volumes were up 14.9% from the same month in 2006.
***Fewer Total Losses ..... as there has been a dramatic reduction in the number of total losses of merchant ships since the year 2000. New statistics released by the Int'l Union of Marine Insurance (IUMI), which represents marine underwriters worldwide, indicate that 67 ships (of 500 gross tons & over) were total losses in 2006, compared to 140 in 2000 & a peak of 182 during the 1990s. However, this news is heavily diluted by an equally dramatic increase in serious partial losses, up by 200% since 1998.
***Weak Dollar Promotes U.S. Shipping ..... as according to an annual review published by the Paris shipbroker Barry Rogliano Salles & information service AXS Marine the rise of the Euro against the Dollar in 4th quarter of 2006 played a role in strengthening the container shipping market. The report said "it has helped to maintain ships close to full, especially on east-west routes." The dollar's relative weakness & lower U.S. economic expectations "kept a lid" on Far East-U.S. trade & moderated growth.
***TSA Says Space Tight ..... as the Transpacific Stabilization Agreement said last week that containership utilization on the world's busiest trade lane is higher than 90% on most sailings, after a dip in early March. The TSA, a liner conference of 12 ocean carrier members, in March pledged to be more transparent about market data & operating costs after rates stagnated in 2006, impacting the profitability of most members. On the 2 most heavily used corridors -- local & intermodal cargo arriving at California ports, & freight moving by water to the East Coast via the Panama Canal -- utilization was 91% & 94%, respectively, at the end of March the TSA said. During much of Feb., prior to the Lunar New Year factory closures in Asia, vessel utilizatio held steady in the 95% to 100% range. TSA carriers are forecasting 9% to 10% Asia-U.S. cargo growth for 2007, and slightly higher growth during 2008.TSA members are AOL, CMA CGM, COSCO, Evergreen, Hanjin Shipping, Hapag Lloyd, Hyundai, "K" Line, Mitsui O.S.K., NYK Line, OOCL & Yang Ming. Mediterranean Shipping Co. joined TSA this month -- the world's 2nd largest container line, operating 326 ships with a combined ship capacity of 1.06 million TEUs.
***Evergreen Group Unites ..... as the 4 carriers under the Taiwanese company will adopt the unified name of Evergreen Line starting May 1. Evergreen Marine Corp. (Taiwan), Hatsu Marine, Italia Marittima SpA, & Evergreen Marine (Hong Kong) Ltd. will adopt the unified common trade name Evergreen Line for Int'l marketing. Beginning May 1, the 4 carriers will also issue a unified bill of lading title as Evergreen Line.
***Canada Is A Little More Expensive..... as shipping lines of the Canada Transpacific Stabilization Agreement will raise their fuel recovery charges to the following levels, effective May 1:
* US$435 (from US$345) per 20-foot container.
* US$545 (from US$455) per 40-foot container.
* US$615 (from US$510) per 40-foot high cube container.
* US$690 (from US$580) per 45-foot container.
* US$12 (from US$10) weight-measure adjustment.
CTSA members are APL, COSCO, Evergreen, Hanjin, Hapag-Lloyd, Hyundai, "K" Line, MOL, NYK, OOCL & Yang Ming.
***New York Is A Little More Expensive .... as the Republic of Panama has approved a proposal to restructure the Panama Canal's pricing system. The action followed a recommendation from the board of directors of the Panama Canal Authority. In general, there will be a 10% increase per year over the next 3 years. Under the new tariff, the price for filled containers will increase to US$63 in May 2008, and to US$72 in May 2009. The price for empties will rise to US$50.40 & US$57.70, respectively. For other cargo types, adjustment & implementation dates of the new toll rates will depend on the vessel type.
***Marshall Islands Registry Stands Alone ..... as its officials have announced their Int'l fleet registry has surpassed 1,440 vessels, representing more than 36 million gross tons. Int'l Registries Inc., the maritime & corporate administrator of the Micronesian nation, also said that more than 25% of the 2008 liquefied natural gas newbuild tonnage is slated for the Marshall Islands registry. The Marshall Islands are not among the 179 member countries of the United Nations' Int'l Labor Organization, and thus not obliged to abide by the ILO's core labor standards -- elimination of forced labor, child labor & discrimination, and respect for freedom of association & right to collective bargaining.
***COSCO Sets Hight Goal ..... as China's biggest ocean carrier plans to add 66 vessels to its fleet, to be built at four Chinese shipyards. The new vessels -- including containerships, car carriers, tankers & bulk cargo ships -- represent more than 5 million DWT. The vessels, some of which are to be built by COSCO's own shipyards, are due for delivery between 2008 & 2010.
***Rickmers Holding Goes Public ..... as the parent company of ocean carrier Rickmers Line, this week launched an initial public offering for its Singapore-based ship-leasing vehicle, Rickmers Maritime. The German carrier is offering shares of the trust at 92 cents to US$1.06 in hopes of raising US$182M. Rickmers said the trust would be its long-term mechanism for ship owning. It would begin with a fleet of 10 vessels, with the 1st right of refusal on 9 others.
***NYK Berths Green .... as the Japanese carrier said it will by 2009 deploy 38 containerships with the ability to "cold iron" at ports, or shut down the onboard diesel power generators while at berth & connect directly to more environmentally friendly shore-side electrical power. NYK said the initiative will cost US$22M.
***Interpool Acquired ..... as the container & chassis leasing leader has entered into an agreement to be acquired by private equity funds managed by affiliates of Fortress Investment Group. Stockholders would receive US$27.10 in cash for each share of Interpool common stock that they hold. The total transaction value, including assumed debt, is US$2.4Bn. Interpool was founded in 1968 & had said in its annual report to the U.S. Securities and Exchange Commission that at the end of 2006 it had a fleet of 238,000 chassis, the largest in the world & a container fleet of 756,000 TEU. Further, Maersk Line has entered into an agreement with with Interpool's Chassis Division, Trac Lease, one of the world's largest chassis lessors, to supply detailed tracking data for its chassis trailer freight moves in the Northeast & Midwest. Trac Lease will be employing "Poolstat", its proprietary chassis management system, which receives daily chassis tracking information from more than 450 reporting locations in the U.S. PoolStat currently has 1,300 registered users worldwide.
***Matson Navigation Company Creates A 3PL ........ as the parent company Alexander & Baldwin, Inc. will form a new subsidiary, Matson Global Distribution Services ("Matson Global"), to expand its logistics service menu to include warehousing and distribution, freight forwarding & NVOCC services. "In the robust U.S. &endash; China trade lane, warehousing and distribution services are at the epicenter of the supply chain,"said the company.
***South Carolina Containerizes .... as it has approved a proposal which states that it will continue condemning 1,800 acres along the Savannah River & work with Georgia to develop a massive new shipping terminal. The bill creates a state commission, comprised of the governor, legislators & state agency directors, to work with Georgia in developing the new US$500M terminal.
***"Tracking Trash: Flotsam, Jetsam, & the Science of Ocean Motion" ........ as an exciting new book from Loree Burns chronicles the work of our dear friend Dr. Curt Ebbesmeyer -- or "Dr. Beach" to us -- who tracks trash in the name of science. From sneakers to hockey gloves to LEGO pieces, Curt monitors the watery fate of cargo spilled into the ocean. The journeys he has documented are astounding and some &emdash; like the rubber ducks that drifted thousands of miles from the Pacific Ocean across the Arctic and into the Atlantic &emdash; have attracted substantial media attention. But the information Curt collects is much more than casual news; it is important scientific data. And with careful analysis Curt is using his data to understand & protect our world ocean. This unique book is now available online and in bookstores everywhere -- buy it now! Book Review.
***Throughput >>> Port of Antwerp, Europe's 2nd largest port, handled 44.7 million tons of cargo in the 1st quarter of 2007, an increase of 11.8% compared with Q1 of 2006. >>> French Port of Dunkirk handled 13.96 million metric tons of cargo in the 1st 3 months of 2007, a 1% improvement from the 1st quarter of 2005, but the port's roll-on/roll-off traffic jumped 21% in the same period to 2.84 million metric tons while its container throughput increased 12.5% to 55,000 TEUs. >>> Florida'a Jacksonville Port Authority (Jaxport) recorded its busiest cargo-handling year in 2006 &emdash; its 6th consecutive year of cargo growth &emdash; with 8.6 million tons, a 3% increase over 2005. >>> Loaded container imports at the Port of Long Beach dropped 10.4% in March as the Southern California port saw its total monthly throughput decline 3.6% to 541,107 TEUs, compared to 561,194 TEUs in the same month last year. The port's loaded imports in March were 252,998 TEUs, down from 282,440 TEUs a year before. Loaded outbound containers improved 5.7 % to 125,529 TEUs, from 118,728 TEUs in March 2005. Empty containers in the month were up 1.6% year-on-year to 162,580 TEUs. >>> The Port of Montreal is continuing to grow 3.8% after handling a record 25.1 million tons of cargo in 2006, slightly more than the 24.9 million tons it handled the prior year when the throughput wasa port 11.8 million tons of general cargo including 1.29 million TEU of containerized cargo, 7.7 million tons of liquid bulk & 5.6 million tons of dry bulk cargo. >>> Port of Rotterdam put aside industrial action during the 1st quarter to record a 10 % increase in container traffic to 2.54 million TEUs. >>> Port of San Diego moved 2.9 million metric tons of cargo in 2006, a 6% increase over 2005 >>> Port of Shanghai has overtaken Hong Kong to become the world's 2nd-largest cargo port for containers, behind Singapore, as the 1st quarter of the year saw movement of 5.88 million TEU, while Hong Kong port processed 5.5 million TEU in the same period. The Chinese central government has been focusing on the port of Shanghai to drive the development of Eastern China.
***This Month In U.S. Navy History .....
1776 - The Continental Navy frigate Columbus captures HM Tender Hawke; this is the first American capture of a British armed vessel.
1783 - George Washington proclaims the end of hostilities with Great Britain.
1805 - Naval forces combat pirates & capture Derne, Tripoli; raise 1st U.S. flag over foreign soil.
1848 - A Navy expedition to explore the Dead Sea and the River Jordan, commanded by Lt. William F. Lynch, reaches the Dead Sea.
1854 - Sailors & Marines from sailing sloop Plymouth, protect U.S. citizens at Shanghai.
1861 - President Lincoln extended blockade of Confederacy to Virginia & North Carolina port
1862 - Battle of New Orleans; Union Navy under David Farragut runs past forts into Mississippi River.
1865 - Body of John Wilkes Booth brought to Washington Navy Yard.
1914 - First combat observation mission by Navy airplane, at Veracruz, Mexico.
1934 - In the 1st Navy movement through the Panama Canal, more than 100 ships transited.
1952 - USS Hobson (DMS 26) sinks after colliding with USS Wasp (CV 18); 176 lives lost.
1974 - Naval forces begin minesweeping operations in the Suez Canal Zone.
1993 - Secretary of Defense orders Armed Forces to train & assign women on combat aircraft & most combat ships, but not to ground combat positions.
1993 - Branch Navy Hospital Adak, Alaska, responds to crash of civilian Chinese airliner by providing lifesaving treatment and medical evacuation of 89 injured passengers. Only 1 passenger out of 265 passengers died.
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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 APRIL 2007: "Boxing Up The Rhine" -- the tale of M/V Excelsior which STOPPED Europe
See our other new feature for April 2007: "Did Pepito Flores Need To Die?" M/V Astoria
See our newest photo feature "Singles Only" - Transportation Disasters Told In A Single Photo!
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.
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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>>>>>>
Brazil Link ....... ecomomy & trade
Brazilian-American Chamber of Commerce
Export Institute USA's Ask the Experts Page ........ resources & consulting
Fritz Institute ........ works to improve disaster relief management & logistics
Global Maritime Television Channel Online ........ May 2007, but test it now
Importance of Freight Forwarders
Logistics Map of Russia .......new -- logistics development & market potential
Port of New Orleans Continues To Rebound
Port Pilots ......... day in the life & video
Reuters Trade & Transport Insight Service .......... amazing & free
Supply Chain Visibility Roadmap: Moving from Vision to True Business Value ......free whitepaper
U.S. Flight Delays & Causes At A Glance
U.S. Generalized System of Preferences Guidebook .........encourages use of GSP duty-free treatment by increasing understanding of GSP
U.S.-Canada Softwood Lumber Agreement FAQ
World Trade Organization (WTO Annual Report on World Trade in 2006 .... details country by country
PRODUCTS>>>>>>>>>
Int'l Freight Forwarding Trading Alliance ....... post your information for free
Piers ...... Immediate access to intelligence you can use to identify best prospects among top 300,000+ companies in U.S. import-export trade. Special Deal
U.S. State Transport Statistics 2006
EVENTS>>>>>>>>>
Trade Shows, Exhibitions, Conferences & Business Events Worldwide
World Trade Organization Events
2nd Annual Canada-Asia Maritime Conference .......Sept. 10 & 11, 2007, Westin Bayshore, Vancouver, BC, Canada
2nd Annual Trans-Pacific Air Cargo Conference ......... June 5 & 6, 2006, Hyatt Regency Century Plaza, Los Angeles, CA
4th Annual Short Sea Shipping Conference ......... April 16-18, 2007, JW Marriott Orlando Grand Lakes
XVI Congress of Latin American Ports .......... 23-27 April 2007, Rosario, Argentina More
94th Annual American Short Line & Regional Railroad Assn. (ASLRRA) Convention ........April 22 - 24, 2007, Baltimore Marriott Waterfront, Baltimore, Maryland
2007 D/C Expo & Conference ......... May 22-24, 2007, Navy Pier in Chicago, IL
2007 Forwarderlaw Conference -- Global Solutions For Global Risks ......... May 17 & 18 2007, Singapore
2007 Int'l Trade Symposium & Maritime Banquet .........May 10 & 11 2007, Norfolk Marriott Waterside
2007 World Ports Conference ............April 27 - May 4, Houston
Crossroads 2007 -- Supply Chain Innovation Summit ......... 21-22 May, Zaragoza, Spain
D/C Expo Supply Chain Logisitcs IT ......... May 22-24, Navy Pier, Chicago
IAPH 2007 World Ports Conference ........... April 27 - May 7 2007, Hilton Americas, Houston
Intermodal South America 2007 ........24-26 April 2007, Transamerica Expo Center Sao Paulo, Brazil
Int'l Industrial Control & Automation Technology Exhibition & Conference .......8 to 11 March 2007. Cairo &endash; Egypt
Logistics & Supply Chain Forum ........May 6-9,2007- Cruise Ship M/V Norwegian Dawn, NY. -- 9th year.
Maritime Security Forum: Piracy ........ May 14, Stamford Marriott, Stamford, Connecticut
National Maritime Salvage Conference & Expo 2007 ........Oct. 9-11, 2007 Hyatt Regency Crystal City, Arlington, Va
OceanTech Expo 07 ...... Sept. 5-7, Providence, Rhode Island
Trade Winds Marine Risk Forum ....... 10-11 May 2007, Fairmont Hamilton Princess, Bermuda
Virginia Maritime Assn. Int'l Trade Symposium ...... May 10 & 11 2007, Norfolk Waterside Marriott
Free Wecasts>>>>>>>>>
Live Teleconference on C-TPAT: Important New Developments ......... May 29, 2007, from 2:00 p.m. to 3:30 p.m. Register for a CD transcription of teleconference
Win the Battle: Image-based Spam
General Interest>>>>>>>>>
The 21 Biggest Technology Flops ... remember?
Car Crashes Leading Cause of Death For Americans Abroad
China Impressions: First trip to Beijing [Ed Note: Our trips have always been excellent, except for the auto traffic. McD]
Deep Blue Marine ...... treasure hunting on a grand scale
George Lucas In Love ........ not to miss
Great Sites For Kids -- American Library Assn.
If You Like Horses ......... We've never seen anything like this!
Harbor Duck For Sale ........ start your new business! More.
PyrateCon ....... site for Pirates, Buccaneers & Privateers
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OUR "E" Section: The Forwarder/Broker World******
7. New U.S. Transport Related Legal Cases _______
Sea Hawk Seafoods, Inc. v. Exxon Corporation
U.S. 9th Circuit Court Court of Appeals
No. 05-35468 -- April 16, 2007
State law determine prejudgment interest rate>> Ruled that, in a diversity action in federal court for damages arising from an oil spill, the rate of prejudgment interest to which a prevailing claimant may be entitled is determined through the application of state law, not federal law. The damages arose from a 1989 oil spill in Prince William Sound, Alaska. Plaintiff filed an action for economic damages in state court. The action was removed to federal court, which heard the case based on diversity of the parties. Plaintiff prevailed on its claim & also sought prejudgment interest. Defendant contended that, since the case was in federal court, the federal principles regarding award of prejudgment interest should be applied. The appellate court ruled that prejudgment interest was a substantive issue and, when a case is heard under diversity jurisdiction, state law provides the basis for all substantive issues. Plaintiff did well on prejudgment interest. Read The Decision.
Sentry Select Insurance Company v. Royal Insurance Company
U.S. 9th Circuit Court of Appeals
No. 05-35323 -- April 6, 2007).
Seaman's work extends beyond insurance coverage>> Court ruled that the marine coverage endorsement on the business insurance purchased by a ship operator did not provide coverage for the on-shore work being performed by a seaman when he was injured. Thus, while the ship operator was liable, under the Jones Act, to the seaman for his injuries, it was unable to recoup those monies from the business insurance company, since the policy only covered work performed on the ship. Read The Decision.
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Written from wire stories, the Associated Press, Reuters, Hong Kong Shipping News, Lloyds & other world sources.
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The Cargo Letter Correspondents:
Michael S. McDaniel Esq, Editor (Countryman & McDaniel)
David Schuchman -- Interpool Corp. -- Webmaster of The Cargo Letter Archive
Andrew D. Kehagiaras, Esq. (Countryman & McDaniel)
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