Law Offices of Countryman & McDaniel
THE CARGO LETTER 
Air & Ocean Logistics - Customs Broker News
30 Oct. 2003
Part 1 of 1
Not A 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." We're all OK, but completion of this edition was hurried over the past three days (no content complaints, please!) due to some of our homes being in one of the Southern California wildfire areas. It's raining ash & embers, now called "California Snow." The mountain home belonging to one of our law firm partner's father is believed lost. With 16 dead from Los Angeles to San Diego, 10 fires burning, over 800 square miles burned, way over 1,600 homes lost, entire villages destroyed & 12,000 fire fighters on the line from all over the U.S. Western States -- so far it's the biggest disaster in our California history -- but there is just no end in sight. Sadly, some experts are calling this "The Perfect Fire Storm." Again, there is just no end in sight. DONATIONS PLEASE: To the "American Red Cross," marked "For California Wildfires."
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Our corporate sponsor &endash;- Interpool, Inc. -- named again to Forbes "Best 200 Small Companies" List -- for the 2nd consecutive year! --Michael S. McDaniel, Editor, Countryman & McDaniel, forwarder/broker 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 ___________
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs _____________
***FIATA For Shanghai In '06 ........ as it will host the annual general meeting for The Int'l Federation of Freight Forwarders (FIATA) in 2006. The group made the announcement during its recently concluded annual Congress in Bali, Indonesia. The 2004 Congress will be held at Sun City, South Africa. Moscow set to host in 2005. FIATA was established in 1926 & is headquartered in Switzerland. It is the world's largest non-governmental Int'l freight forwarding body & has 2,700 members from 150 countries & regions.
***FDA Bioterrorism Final Rules Published .......... as there are new rules to protect the U.S. national food supply against actual or threatened terrorist acts & other food-related emergencies. Read these new reg.s carefully >>
"Section 307": Prior Notice of Imported Food Shipments" requires food importers to provide the FDA with advance notice of human & animal food shipments imported or offered for import after Dec. 12, 2003
"Section 305": Registration of Food Facilities" requires domestic & foreign food facilities that manufacture, process, pack or hold food for human or animal consumption in the U.S. to register with the agency by Dec. 12, 2003.
***Expect Higher China Prices ........ as starting Jan. 01, 2004, China's tax rebates for exporters will be reduced by an average of 3% - though some sectors will see more reductions or even the elimination of the rebates, reported the China Daily. China introduced the export tax rebates mechanism in 1985 to boost the nation's export trade. This has produced a positive effect on the China economy. With the new export tax rebates system reduced, the Chinese government looks to save billions of yuan every year. The plan is to continue the export tax rebates at a lower rate. For exportation of commodities that China does not promote - such as petrol, zinc & coke -- tax rebate rate will be reduced by a larger margin or maybe even abolished. The rapid growth of China's exports -- with an annual increase of 36.3% in tax rebates -- resulted in export tax rebates amounting to 248 billion yuan of China's central financial deficit. This figure represents more than twice the growth rate of fiscal revenue for the central government.
***Guangdong -- One To Watch ........ as the value of import & exports from China's Guangdong Province jumped by a whopping 25.8% in the 1st 3 quarters this year to US$200.93Bn. Exports accounted for US$106.71Bn, a rise of US$25.1Bn, representing 34.7% of China's total exports. Imports amounted to US$94.22Bn, an increase of 26.6%, representing 31.6% of China's imports. The trade surplus for the 1st 3 quarters was US$12.49Bn. Wow!
***Not Talking -- But Sure Trading ........... as trade between China & Taiwan over the 1st 7 months of the year grew by 22.2% to US$24.6Bn, compared with the same period in 2002. Taiwanese exports to China grew by 15.9% in July year-on-year, a statement from China's Ministry of Commerce said. Over the January-July period, Taiwan exports to China were valued at US$18.8Bn, up by 18.7% compared to last year. Taiwan's imports from China grew by 35.5% over the 1st 7 months to US$5.73Bn.
***Cambodia & Nepal Approved ....... as the World Trade Organization (WTO) has confirmed that on the 11 Sept. 2003, WTO ministers approved both membership agreements, placing them in line to become the 147th & 148th members of the WTO. Using the full working process to gain membership, they will be the first two least-developed countries to join the WTO.
***Russia Land Bridge Promising ....... as exports to Russia through Manzhouli, China's largest land port in the northern Inner Mongolia Autonomous Region, topped US$57.8M during the 1st 3 quarters of 2003, 4 times the level of same period in 2002 -- and growing. Exports of light industry products & textiles reported the largest rise of 624% to reach US$32.5M, accounting for 57.6% of the total volume. The volume of vegetable & fruit exports also went up by 200% during the 9 month period.
***UPS Soars! ....... as it saw a 28% jump in net income for 3rd quarter thanks to a strengthening of its U.S. package business & record performances by both the Int'l & non-package segments. The U.S. package business, paced by a strong 10.2% rise in Next Day Air volume & a 2% increase in the larger ground business, grew 3.2% or 374,000 packages per day compared to prior-year period. Int'l export package volume climbed 8.1% as that unit posted the most profitable quarter in its history. Non-package revenue increased 6.2% & operating profit for that unit jumped a whhopping 92%. "While there were many highlights in the quarter, the accelerated growth in U.S. package deliveries, increasing signs of U.S. economic growth & the strong Int'l performance really stand out," said Scott Davis, UPS's CFO. "We also were pleased with the continuing improvement on the non-package side, because we know the strategy of expanding our distribution & supply chain capabilities will feed the success of all parts of our business going forward." For the quarter ended Sept. 30, consolidated revenue totaled US$8.31Bn, up 7.2% from the US$7.75Bn reported during the same period in 2002. Consolidated operating profit increased 21% to US$1.15Bn. Net income totaled US$739M, an increase of 28% over the prior year's US$578M. Wow!
***We're On Our Own For Cargo Theft? ......... as the U.S. Federal Bureau of Investigation's diversion of resources to fight terrorism means that transport & trucking firms should expect less help from the bureau in pursuing cargo theft, the FBI's lead agent in that area said this month. "The reality is, we're not really the same. We're stretched a little thin. . . . When we handle cargo theft cases now, we look for terrorist funding," Dan Wright, Chief of the FBI's Major Theft Transportation Crimes Unit, told a convention of transportation & security executives. "The bottom line," Wright said, is, "Don't rely on the government to handle all the problems."
***But The Solution Is Within Us .......... as the most effective security measures are often simple precautions that anyone can learn &emdash; high-tech systems do not provide complete solutions to cargo theft problems, industry executives said this month at the "Cargo Security Forum USA 2003" conference. "Don't forget low-tech or simple human error & don't assume that high-tech will solve all problems," said Randal Mullett, director of government relations for CNF Inc. For example, the director of security for a major freight forwarder said: "99.9% of the time somebody did something stupid" when companies suffer major cargo thefts. We agree.
Ed Note: Cargo crime is a US$12Bn a year problem in the U.S. alone. The problem is in large part the direct result of a failure to establish clear, uncomplicated employee standards & then train personnel as to the reasons why these standards must be followed at all times. This is mostly training, not expensive outsourcing.
***Commerce Dept. Reports On Efforts in Textile Markets ........ as the U.S. Dept. of State has issued its 2nd annual report to the Congressional Textile Caucus. The report focuses on the Bush administration's efforts to open access to textile & apparel markets through new trade agreements, multilateral & bilateral trade negotiations, and transshipment & enforcement efforts. The report discusses decisions expected on whether the U.S. will impose temporary higher tariffs or quotas on a surge of legal textile imports from China, actions made possible by China's WTO accession agreement. Read the report.
***Sleep Or Die! ........ as an envelope sent to a South Carolina postal facility contained a vial of ricin & warned that large amounts of the poison would be dumped into drinking reservoirs if the government did not change a rule requiring truckers to rest after 10 hours on the road, according to the Associated Press. The vial was found at the postal facility in Greenville on Oct. 15. The American Trucking Assn. said on Oct. 23 that it had been working confidentially with the Dept. of Homeland Security to assist the FBI in this investigation. Although the new hours-of-service rule extends daily driving time by one hour to 11, it also cuts the overall workday by one hour to 14 from 15. The approved rule is scheduled to take effect Jan. 4. >> Ricin is derived from the castor bean plant & is relatively easy to make, but can be deadly in very small doses. When inhaled or ingested, fever, cough, shortness of breath, chest tightness & low blood pressure can occur within 8 hours. Death can come between 36 hours & 72 hours after exposure. Just swell.
***Round Up The Usual Suspects ........ as the American Trucking Assn. suggests that the Transportation Security Administration may extend its deadline for U.S. states to conduct fingerprint background checks of drivers certified to haul hazardous materials. Currently, Nov. 3 is the deadline for U.S. states to begin fingerprinting anyone renewing or applying for a new hazmat CDL endorsement.
***Hope Rails ....... as services between landlocked Burkina Faso, in West Africa, and the Port of Abidjan, in Ivory Coast, have resumed after a year-long closure caused by the civil war in Ivory Coast. OT Africa Line said in a bulletin that the border between the countries was officially reopened to road traffic in Sept., & the 1st freight train completed the journey from Abidjan to Bobo Dioulasso, in Burkina Faso, this month. Burkina Faso has traditionally relied on the 1,150-km rail link from Abidjan to Ouagadougou (in Burkina Faso) to carry most of its external trade.
***Singing Rails ....... as U.S. intermodal traffic on the nation's railroads totaled 211,237 trailers & containers for the week ended Oct. 18, breaking the previous record of 210,099 set 3 weeks earlier, said the Assn. of American Railroads. It was also 5.2% ahead of the corresponding pace in 2002. AAR said intermodal rail intermodal traffic was up 6.6% through the 1st 42 weeks of 2003, compared with 2002.
***Speeding Rails ......... as the Bombardier JetTrain high-speed rail locomotive arrived in Tampa this month. The latest in "Made in America" high-speed technology was on display for public viewing at Tampa Union Station. The JetTrain locomotive is the 1st non-electric, high-speed rail solution designed specifically for the American market. Powered by a jet engine, JetTrain technology operates at 150 miles per hour & meets all American safety standards for high-speed rail. "JetTrain technology is U.S. certified, ready to roll now," stated Bombardier Transportation, North America. Bombardier manufactures 20 different intercity & high-speed products, including 7 different high-speed locomotives. It has participated in development of many of the world's leading high-speed rail systems, inclhding the ICE trains used in Germany & the Netherlands, Italy's ETR 500, China's Xinshisu, Spain's AVE 102 & America's Acela. Details here.
***Working Rails ......... as major the major U.S. freight railroads & the Brotherhood of Locomotive Engineers (BLE) reached agreement this month on a tentative collective bargaining agreement -- parties currently finalizing contract language. Contract details were not released pending a ratification vote. With this agreement, the carriers have now reached agreements with unions covering almost 90% of their work force. The National Carriers' Conference Committee of the National Railway Labor Conference, headquartered in Washington, D.C., is the bargaining agent for the 32 railroads, including the nation's largest freight carriers, involved in the current round of bargaining with the 13 major rail unions.
***Union Pacific In The Overnite ....... as it may raise as much as US$467.5M from the initial public sale of shares of its Overnite Corp. trucking unit, Bloomberg reports. Union Pacific bought Overnite for US$1.2Bn in 1986. It plans to sell 25 million shares, with an option for underwriters to purchase another 2.5 million. The initial offering price is expected to be between US$15 & US$17 a share. UP did not say when the shares will be sold. Overnite had year 2002 sales of US$1.33Bn, 11% of UP's total.
***Drive Cheaper ...... as the U.S. Internal Revenue Service has increased the standard mileage rate for business use of automobile from 36 cents a mile to 37.5 cents a mile. The new rate becomes effective Jan. 1, 2004. The IRS has also announced that beginning Jan. 1, 2004 taxpayers who use no more than 4 vehicles at the same time for business may also use the standard mileage method rather than having to track actual expenses.
***Overnight To Mexico ....... as FedEx Custom Critical, Inc., now offers overnight heavyweight freight deliveries into Mexico through its latest service, "Point-to-Point Mexico." This service utilizes exclusive-use vehicles for pickups & deliveries in Mexico. FedEx Express provides the air transportation on these shipments. Point-to-Point Mexico also includes customs clearance on delivery.
***Cutting The Cord ......... as Qualcomm is in a newly created untethered trailer tracking consortium to help provide direction on the development of untethered trailer asset management technology for the transportation and logistics industry. Atlas Van Lines & Swift Transportation join the consortium as a founding members. This group provides direction into how Qualcomm's untethered trailer tracking product will be implemented in the market.
***C.H. Robinson Buys Germany ....... as it is acquiring Frank M. Viet GmbH Internationale Spedition ("Viet") through a newly formed German subsidiary. Viet is an Int'l freight forwarding & 3rd-party logistics company based in Hamburg. Like C.H. Robinson, it is non-asset based. Viet had annual gross revenues of approximately US$5.6M in 2002. The acquisition is expected to close Oct. 1, 2003. Terms were not disclosed.
***Kuehne & Nagel Buys Old Germany ....... as it is to purchase the forwarding & logistics company Pracht, based in Haiger Hesse, from Hapag Lloyd, effective Jan. 1, 2004. Kuehne & Nagel said the deal will strengthen its range of contract logistics services in Germany & expand its presence in a new regional market. Pracht, founded in 1857 and, since 1980, a wholly owned subsidiary of Hapag-Lloyd, had a turnover of US$234M last year, with 900 employees, placing it amongst the leading midsize providers of integrated logistics services in Germany.
***Matson Name Change ........ as Matson Intermodal System, a subsidiary of Matson Navigation, has been renamed Matson Integrated Logistics. The company's activities have also grown to include domestic intermodal rail service, long haul and regional highway services, Int'l intermodal service, & specialized hauling. New air freight services will also be introduced in the coming months, Matson said.
***World Cargo Alliance To Bangkok ..... as the Miami, Florida-based global network of independent freight forwarders, has chosen Bangkok to host its 6th annual worldwide conference. The site of the meeting will be the Plaza Athenee Hotel where more than 400 attendees representing WCA members in nearly 100 countries will come together over Feb. 11-14, 2004 . Conference details.
***Moscow Moonshine ............ as a federal jury at Boston has convicted Gary Sagendorf, age 52, of attempting to sell 59,000 bottles of counterfeit Stolichnaya vodka that had been brought into the U.S. from Khazakstan. Sagendorf attempted to sell 10 containers of vodka imported from Khazakstan, in the former Soviet Union, including bottles bearing a counterfeit Stolichnaya trademark. Sagendorf faces up to 5 years' imprisonment, followed by up to 3 years of supervised release, & US$250,000 fine. But who got the vodka?
2. The Cargo Letter Financial Page ____________
**AirTran Airways. UP with 6th consecutive quarter of profitability & net income for Q3 of US$19.6M or $0.24 per diluted share.
**Arkansas Best Corp. (parent of ABF Freight System Inc.) DOWN with 3rd-quarter net income of US$17M or 67 cents per share vs. US$18.3M or 73 cents per share in the 2002 quarter.
**Alaska Air Group. UP as cargo revenue was US$63.6M for 1st 3 quarters compared to US$59.4M in 2002.
**C.H. Robinson Worldwide, Inc. UP as for 3rd quarter, gross profit increased 10.3% to US$135.8M in 2003 from US$123.1M in 2002.
**Continental Airlines. UP with 3rd quarter net income of US$133M, including a US$100M after-tax gain from its sale of ExpressJet stock.
**CN. UP with net income up 10% to US$294M despite stronger Canadian dollar.
**Covenant Transport. UP as net income for 3rd quarter was US$4.1M or 28 cents per share, compared with US$3.6M or 25 cents a year earlier.
**JB Hunt Transport Services Inc. UP with record 3rd quarter net earnings of US$32.7M, for 2003 -- on operating revenue of US$622M, compared with US$583M during Q3 of 2002.
**Northwest Airlines. UP as cargo revenue was up 8.9% in the 3rd quarter ended Sept. 30 to US$196M from US$180M last year. For the 1st 3 quarters of 2003, cargo revenue is up 7.9% to $544M.
**Smithway Motor Xpress Corp. DOWN as its net loss for 3rd quarter was US$305,000 or 6 cents per share.
**Swift Transportation (LTL). UP as net earnings were US$24.6M, compared to US$16.3M for 3rd quarter of 2002.
**Yellow Corp. UP as 3rd-quarter profit more than doubled as to US$17.4M or 58 cents a share, over year earlier.
***Roadway Corp. Is No Enron .........as it has been honored with the Nicholson Awards "Best In Industry" award of Trucking/Transportation, for the freight carrier's 2002 Annual Report. The Nicholson Award is sponsored by the National Assn. of Investors Corporation (NAIC). Since its initiation in 1978, the Nicholson Awards program serves as a catalyst to spur publicly traded companies to produce clear, more readable annual reports. Judges are a panel of individual investors who are NAIC members.
OUR "B" Section: FF World Air News***
3. Freight Forwarder World Air Briefs __________
***Major Air Cargo Study ........ as the Int'l Logistics Quality Institute (ILQI) has released initial findings from its 2003 Int'l Air Cargo Quality Survey, which represents the 1st significant compilation of detailed, independent information on shipper satisfaction, issues & spending in the critical intercontinental air freight marketplace. The results highlight the importance shippers place on speed & responsiveness in their global supply chains. Survey respondents indicate that air freight plays a critical role in meeting shipper needs every day. Air shipping is often a standard practice, with "emergencies" representing only 10% of shipments, and is projected to continue to grow, with 85% of shipping managers surveyed expecting to maintain or increase air freight's share of intercontinental transportation spending next year. Service reliability, competitive rates, & fast transit times are the 3 attributes that are most important to shippers in choosing & managing their air cargo providers -- 70% of shippers indicated they would incur significant supply chain issues if their intercontinental air freight shipments are even 1 or 2 days late. In addition, shippers said they are "most concerned about" security & customs regulations, followed by fuel prices, airline financial health & terrorism. In general, shipper satisfaction with intercontinental air freight providers is strong. About 45% of shippers are "very satisfied" with their providers; 38% are somewhat satisfied. Nearly half indicated they see on-time delivery levels of 98%, with only 10% receiving service levels below 90%.
Additional findings from this groundbreaking survey, which included responses from 800 shipping managers who completed nearly 1,500 provider-specific assessments across a broad cross-section of users, will be released over the next 2 months & can be found at the ILQI website. Added findings will include rankings of freight forwarders & integrated carriers that are based on a series of quality criteria; 77% of respondents indicated that having benchmarks of provider quality would benefit them. The McDonough School of Business at Georgetown University & Air Cargo World magazine provided additional support for the survey. Read the report.
***Goodbye At Mach 2 ....... as the Concorde bowed out Oct. 24 with a spectacular triple-landing finale, closing an era of supersonic passenger travel & leaving the skies to the slower, cheaper jets that proved to be the future of air travel. Three supersonic planes glided into Heathrow Airport within minutes of one another, a majestic sendoff for an aircraft that was a technological marvel. Flight 002, the plane's final Trans-Atlantic passenger flight from New York, touched down last, 4:05 p.m., close behind 2 other British Airways Concordes. The jet from New York's John F. Kennedy Airport zoomed 11 crew & 100 passengers, many of them celebrities and aviation enthusiasts, across the Atlantic in about 3 1/2 hours. Passengers sipped champagne & snapped pictures as they flew. The delta-winged plane made a stately final approach west along the Thames, granted a low-altitude flyby for a last look at the Houses of Parliament, Buckingham Palace and other sights of central London. It was a bittersweet end to nearly 28 years of commercial supersonic travel. British Airways & Air France, the only carriers to fly the Concorde, announced in April that they would retire the jets, citing ballooning costs & dwindling ticket sales. Air France grounded its supersonic fleet in May. The airline plans to announce next week where its fleet of 7 Concordes will be kept. It has said most will likely go to museums, but it is looking into the possibility of keeping one in flying shape for occasional special events. British media have reported one Concorde may fly to the U.S. on Dec. 17 to mark the 100th anniversary of the Wright brothers' 1st manned & powered flight. With cruising speeds of 1,350 mph westbound travelers aboard Concorde got to New York more than 1.5 hours before they left Europe.
***Shutting Down The Five Seven ....... as Boeing is to stop production of the 757 jetliner in late 2004 after over 20 years. The decision reflects market reality for the 757 as well as the growth in range & capacity of our Next-Generation B-737 family. Over the past two decades, more than 1,000 757s have been delivered to 55 customers around the world.
***Air France & KLM Ready To Wed ........ as they have said that they expect to conclude an agreement that would lead to the creation of Europe's leading airline group through a share exchange offer by Air France for KLM common shares. The new group will be called Air France-KLM & will capitalize on well-known brands, strong hubs & complementary networks. This major strategic step is unprecedented in European airline industry.
***BA On Swiss ....... as British Airways & Swiss Int'l Air Lines formally signed a new bilateral cooperation agreement on Oct. 22. The strategic alliance will see the start of codeshare agreements & the provision by BA of a US$38.21M loan guarantee for Swiss.
***Continental On BA .......... as it is incensed that British Airways, the dominant airline at London Heathrow, has continued to purchase the limited number of airport slots available. An "airport slot" provides a carrier with the right to take off or land from an airport. Indeed, British Airways announced that it has agreed to purchase four slots held by 1 of only 2 U.S. carriers permitted to operate at London Heathrow, which is an airport closed to new competition. The purchase comes just after British Airways' purchase of 16 slots from European airline Swiss last month & numerous British Airways slot purchases over the past 5 years. It also marks the 1st time in recent memory that Heathrow slots held by a U.S. carrier have been bought by the dominant British carrier. "Over the past few years, British Airways has ruthlessly strengthened its iron grip on Heathrow by purchasing the limited number of slots held by distressed carriers," said Continental.
***Make Him A New TSA Consultant? ........ as Nathaniel T. Heatwole, a 20-year-old college student with a history of political activism & civil disobedience, got through Southwest Airline's security with box cutters, modeling clay, bleach & notes detailing his intention to bring these things aboard 2 flights. Federal officials are now interviewing Heatwole, trying to figure out just how he thwarted the system -- and why the contraband remained undetected aboard the 2 planes for about 5 weeks. He sent the Transport Security Admin. (TSA) an e-mail saying he had done so, but the messages were never passed on to the airline or the FBI to investigate. Under federal sentencing guidelines, if he's convicted, Heatwole could serve no prison time because he has no prior record & it would be difficult to prove intent to do harm. According to TSA records, 1,018 people have been arrested since Feb. 19, 2002, for attempting to bring banned items onto planes. The agency doesn't have figures on how many were charged or convicted. Rep. Ed Markey, D-Mass., agreed he should do community service with the TSA. Agency officials should listen to him so they know exactly how to prevent a terrorist from doing the very same thing," Markey said. TSA Agency.
***UPS Congratulates Vietnam Deal ........ as U.S. & Vietnam have successfully negotiating the 1st comprehensive air service agreement between the countries --1st since the end of the Vietnam War. The agreement allows airlines of both countries to provide U.S.-Vietnam air service with their own aircraft as well as through expanded code-sharing. The agreement also permits an unlimited number of scheduled all-cargo carriers to operate with no limits on weekly frequencies. "This agreement will permit UPS to connect Vietnam to its global network using its own aircraft whenever that is appropriate," said Steve Okun, UPS's public affairs manager for Asia. "UPS looks forward to building upon its already significant presence in Vietnam under this agreement."
***Emirates Airline Big Buy ....... as the Dubai-based line will start nonstop service to the U.S. next spring, as the world's 1st airline to take delivery of the A340-500 -- the world's longest-range large passenger jet. The new aircraft, designed for flights over 17 hours, will go into service Dec. 1st when it leaves Dubai on its 1st nonstop service to Sydney, Australia - with a flying time of 14 hours. In addition to eight A340-500s, Emirates has on order 26 Boeing 777-300 Extended Range aircraft, 45 Airbus A380s, the world's largest civilian aircraft, 20 A340-600s, 8 Airbus A340-300s & 8 freighters -- a US$26Bn aircraft order book. More than 100 new jets will be delivered to Emirates by 2012.
***Still Moving Forward ........ as Forward Air Corp. has been listed in Forbes Magazine's listing of the "200 Best Small Companies" in America for the 5th year in a row. Forbes editors & staff started with a list of over 3,500 small companies and ranked the 200 best. According to Forbes, companies must pass a tough selection process in order to make the "Forbes 200 Best" list, including a clear record of earnings & revenue growth as well as return on equity. Congratulations.
***Universal Express Is North American ...... as it has signed a contract to purchase North American Airlines. North America is a charter airline based at JFK Int'l Airport, presently operating a fleet of 757 & 767 airplanes. "This acquisition will add over US$160M in revenues. This 1st transportation acquisition will enhance our financial structure, but more importantly our logistical, cargo & luggage transportation capabilities have now been more substantially created," said president Richard A. Altomare >> Universal Express, Inc. owns & operates several subsidiaries including Universal Express Capital Corp., USXP Cash Express division, Universal Express Logistics, Inc., "The Virtual Bellhop, LLC & Luggage Express," and the WorldPost Private Postal Network, Inc.
***Amerijet Int'l Gets Antilles ....... as it has signed an agreement to acquire Antillas Air, a privately held U.S. cargo airline serving Central America & the Dominican Republic. Antillas Air will continue to operate its existing routes with no visible changes at this time. Amerijet Central America has present operations in Guatemala, Honduras, Salvador & Nicaragua. With HQ at New York's JFK Int'l Airport, Antillas was established in 1983 & has grown to operate 20 flights weekly from JFK & MIA Int'l airports into Guatemala, San Salvador, San Pedro, Honduras & Santo Domingo.
***Smaller Kiwi ....... as Air New Zealand is to embark on a new 4 year growth strategy, which is expected to save the airline US$145.6M annually once fully implemented in 2007 -- from all areas of operations. The work force currently totals around 10,000 staff but will reduce by 15%, the majority through attrition.
***Equal Partners ....... as Hong Kong & Macau signed an Air Services Arrangement this month, aimed at promoting the long-term development of air services between them. Effective immediately, airlines on both sides will enjoy equal opportunity to operate scheduled services between Hong Kong & Macau.
***More FedEx China ....... as it is expanding its presence with a new regional headquarters in Shanghai, scheduled to open Dec. 1. FedEx already maintains an Asia Pacific Headquarters in Hong Kong, which will not be affected by the new Shanghai office. The company recently launched the 1st direct express cargo service from the Baoan Airport in Shenzhen, China, to the U.S.
***Dynamite Move At Bang-kok ...... as TNT Express Worldwide is elevating Bangkok's Don Muang Airport operation to hub status, the 4th country in TNT's Asia network. The new airport operation was opened in Terminal One in Feb. 2003 & is dedicated to express services. The hub employs more than 50 staff & is open 24 hours a day, 7 days a week. At present, TNT handles approximately 650,000 shipments annually
***Polar Air Cargo Exercises New Rights ...... as it is to launch a new service between Hong Kong, Malaysia & India -- 3 flights each week connecting Penang & New Delhi with Hong Kong -- made possible by a recent U.S. Dept. of Transportation decision to award Polar rights established under the U.S.-Hong Kong aviation agreement signed in 2002.
***1st With VSD System ......... as Copa Airlines has taken delivery of its first Boeing Next-Generation 737-800 aircraft, the most technologically advanced passenger aircraft available & largest in the Copa fleet. The aircraft features a sophisticated flight deck instrument called Vertical Situation Display (VSD), which builds on the Enhanced Ground Proximity warning system that provides pilots a clear view of the airplane's current & predicted flight path. Copa became the 1st airline in the Americas to incorporate advanced VSD technology when it acquired its 13th Boeing Next-Generation 737-700 aircraft this month.
***Wireless ULDs? ....... as Savi Technology has announced that the U.S. Federal Aviation Admin. (FAA) has granted Supplemental Type Certification (STC) to the Savi 602 system, a dual-frequency supply-chain tracking & asset management device based on the company's EchoPoint Radio Frequency Identification (RFID) platform. Savi is the 1st company to receive certification for RFID technology -- which transmits data over radio frequency waves -- from the FAA. Airlines & cargo services can use Savi RFID tags & system software to improve the tracking & management of Unit Load Devices (ULDs), and to help in identifying & locating suspicious commercial cargo or baggage. Tracking systems based on this technology can also be used to locate meal carts, removable flight equipment, as well as tugs, carts & other ramp equipment that is often misplaced or borrowed by other carriers. The RFID tags are capable of communicating with a variety of sensors to detect environmental changes, such as temperature, atmospheric conditions or light, which can enhance real-time detection of potential security threats. >> The U.S. Dept. of Transportation estimates that air cargo tonnage will increase more quickly than passenger traffic in the coming years. Air freight was a US$13Bn business in 2001 & currently accounts for about 10% of airlines' revenue, according to the General Accounting Office.
***The Forwarders' Cargo Carrier Pilots Joins ALPA ........ as the Air Line Pilots Assn. Int'l (ALPA) unanimously approved merger between ALPA & the Kittyhawk Pilots Assn. (KPA). The Kitty Hawk pilots voted Oct. 15 to merge their independent union with ALPA, with 81% voting to accept merger. Kitty Hawk is the only large-scale scheduled service solely dedicated to freight forwarders, both domestic & Int'l. Kitty Hawk pilots fly B-727 freighter aircraft servicing 50 major airports in the U.S. & Canada. Formed in 1931, ALPA is the world's oldest & largest pilots union, with 66,000 members. In addition to Kitty Hawk, ALPA represents 66,000 pilots at 42 airlines in the U.S. & Canada.
***NYK Eyes Cargo Blimp ....... as it has invested US$916,000 in Nippon Airship Corp., which plans to operate an airship at the Aichi Exposition in Japan, scheduled for 2005. NYK invested in Nippon Airship with the aim of studying transporting cargo & passengers by airship. At present, Nippon Airship is contemplating operating a small airship to engage in publicity & small-scale excursion flight -- eventually operating large-sized cargo airships.
***Secrets of The Concorde ....... as it's crew will not be drawn out. Their lips are sealed. No one will reveal how many passengers may have made love at twice the speed of sound. "One of the things we offer at British Airways is discretion," veteran Concorde pilot Mike Bannister said on Oct. 23 when asked if anybody had ever been tempted to join the "11-Mile High Club" aboard the now retired, needle-nosed jet.
OUR "C" Section: FF World Ocean News***
4. FF World Ocean Briefs ____________
***U.S. Ports Need More ....... as the American Assn. of Port Authorities has commended the Homeland Security Secretary Tom Ridge and the U.S. Coast Guard (USCG) on their new regulations to protect the nation's ports from terrorism, and has asked for an extra US$400M of government money to help pay for implementing them. The final regulations call for port facilities to conduct vulnerability assessments, develop security plans & implement enhanced security measures. AAPA says that enhancing seaport security is a top priority for U.S. ports & notes that the USCG says implementing these regulations will cost US$1.125Bn in the 1st year & US$5.45Bn over 10 years.
***The Giants ........ as the number of 8,000 TEU vessels ordered throughout the world stands at 78, generating an additional capacity of 632,701 TEU, according to a report by UK information & research firm CRS. Eleven of these vessels have been scheduled for delivery in 2005. According to CRS, if it takes into account the right to increase new buildings & the number of 7,000 TEU vessels -- then the number of mega container vessels that have been ordered stands at 100, or 34% of the total newbuildings that have been ordered. The vessels will be delivered between 2006 - 2007. The report said the amount of cargo capacity increases by 7% to 8% annually, but that the market will be able to absorb this additional capacity.
***Double Your Pleasure ......... as the European Union's rules banning the carriage of heavy oil in single-hull tankers to & from European ports became effective last week. Under the regulation, adopted following the oil spills of the M/T Prestige near Spain & M/T Erika off the French coast, the European Union has also brought forward the deadlines to phase out single-hull tankers for the carriage of goods other than heavy oil. The EC claims: "The European Union will now be applying rules which are as strict as current U.S. rules for the gradual phasing-out of single-hull oil tankers." EU also claims that Category 1 oil tankers are the "most vulnerable & the oldest vessels." The final date for the use of these oil tankers under the Regulation is therefore brought forward from 2007 to 2005 subject to an age limit of 23 years, compared to 28 years under current IMO rules. Category 2 oil tankers will be withdrawn by 2010 in accordance with a stricter timetable. The same timetable now applies to smaller, Category 3 oil tankers.
***UK P&I Club Makes Substantial Increase ......... as it is to set a general increase in premiums of 17.5%, "plus the relevant contribution to the cost of the Int'l Group's 2004 reinsurance program," in response to increasing claims. It said: "At this stage, the cost & structure of the reinsurance arrangements are not clear." Announcing the increase, UK Club said: "The Club recognizes that this increase will be unwelcome but believes it is in the best interests of members to take these steps to maintain its financial strength." The Club directors took the decision at their Board meeting in Bermuda this month. The Thomas Miller Group-managed mutual liability insurer said that the Club's investments performed well, with a return of 8% for the 7 months from Feb. to Sept. 2003. A statement added: "Furthermore, the Club's reserve strength, combined with the protection of the Swiss Re reinsurance contract, means that the supplementary premium estimates for all the open policy years (2001, 2002 & 2003) are maintained at nil." The UK P&I Club warned, however, that there was "clear evidence of an increasing trend in claims." It said: "While the claims projections for the policy years up to & including 2001 have shown an overall improvement, there is confirmation of a significant increase in the cost of claims falling on the 2002 year. Looking ahead, it is anticipated that favorable market conditions for the shipping industry, with resulting higher levels of ship utilization, will produce an increased level of claims."
***Marine Insurance: AIG To Take PICC Share ........ as the U.S. insurer American Int'l Group, is to buy a 9.9% investment in the People's Insurance Co. of China (PICC) -- a move set to bolster investors' confidence in China's largest property insurer ahead of its $2Bn listing next month. AIG did not disclose the price of the stake, but it is understood to be about US$200M. The price is in line with the expected valuation of $US2Bn for PICC, which is set to list a 25% to 30% stake on the Hong Kong stock exchange on Nov. 3. Both AIG & PICC are major marine insurers. We pay closer attention to the numbers of Lloyd's syndicates writing marine business since in 1980 there were 140syndicates, but now there are 12. Read more.
***Who Goes There? ......... as impostor crewmembers are continuing to involve ship agents in the smuggling of illegal immigrants & cargo. In the past year, over 20 attempts have been reported to the Int'l Transport Intermediaries Club (ITIC), the specialist mutual insurer of transportation professionals. ITIC says the majority of attempts by crew smugglers over the past 12 months have involved companies in Bangladesh, Argentina, Chile, Ecuador, Peru, Uruguay & others.
***Veg Box Bulletin ....... as U.S. Dept. of Agriculture has produced a new online publication that helps agricultural shippers better define costs & service availability in containerized ocean shipping. The report, "Agricultural Container Indicators," uses 3 indicators to show trends in the movement of shipping costs, variations in shipped volumes, & available capacity in the industry. The report's rate index is focused on both agricultural refrigerated & dry container traffic to Asia. The report also compares bunker fuel charges with world oil prices, as well as currency adjustment factor surcharges with current exchange rates. It also includes any rate increases published by carriers during each proceeding quarter. The new report joins other USDA publications pertaining to agricultural container shipping. They are the "Ocean Rate Bulletin," & "Agricultural Ocean Transportation Trends."
***Korea Wants You To Stop By ....... as fees on transshipment cargo entering into South Korea ports are being waived starting 1 Oct. 2003 until the end of 2005, reported Business Times Online. With South Korea wishing to attract new business, containers entering into South Korean ports for redirection to a 3rd country would benefit from the exemption of port charges.
***Getting Scrappy ........ as lines operating from the U.S. to Asia are seeking a 2 stage increase in freight rates for shipments of metal scrap in the coming months. As demand for metal scrap has grown throughout Asia in recent months, Westbound Transpacific Stabilization Agreement (WTSA) carriers said in a statement that they want a freight rate increase of US$100 per FEU to begin on Dec. 1, followed by another increase of US$100 per FEU starting April 1, 2004. WTSA members include: APL, K Line, China Shipping Group, MOL, Cosco, NYK, Evergreen, OOCL, Hanjin, P&O Nedlloyd Ltd, Hapag Lloyd Container, Yangming Marine Transport Corp. & Hyundai.
***French Comeback ........ as shipping group CMA-CGM has been making significant strides on the world carrier stage, now rated at No. 5 in the world liner league. The company has almost doubled its capacity in the last 2 years from around 130-140,000 TEU to 260,000 TEU today.
***Ghost Fleet Sails ......... as 4 aged ships -- including World War II-era ships ex-USS Canopus & ex-USS Compass Island -- have now been towed from the James River Reserve Fleet in Newport News, Virginia, to be dismantled at the Able UK facility in the Teesside area of northeastern England as part of pilot project authorized by Congress. Vocal opposition in the EU warns that vessels may not be able to withstand the Atlantic & breakup. The James River Reserve Fleet is maintained by the Maritime Admin. (MARAD), part of the U.S. Dept. of Transportation. MARAD has developed an aggressive plan to remove high-priority ships from the James River in an environmentally responsible & fiscally sound manner. For the past 10 years, very few ships have left the James River Reserve Fleet. Twenty-four ships either have been removed or scheduled for removal from MARAD's fleet this year, 23 of them from the James River Reserve Fleet.
***Breakng Shame ...... as some 45,000 workers of the ship-breaking industry in Chittagong are now working in hazardous atmosphere risking life in handling of old equipment used to break ships and dealing with toxic chemicals in their daily routine work. At least 300 workers of the yards have died & about 550 were handicapped in accidents in the last 18 years. At present workers of 30 ship-breaking yards in Chittagong are working at high risk of accident, particularly explosion of gas cylinder & oil tankers. Sources said, one worker at a ship-breaking yard was killed & 3 others were injured in a gas explosion in a scrapped ship on April 9 this year at Shitalpur area. In the worst workplace accident at any shipyard in recent memory, at least 16 workers were burned alive & 50 others injured seriously as an oil tanker caught fire during scrapping at Shitalpur Ship Breaking Yard on May 31 in 2000. Ship Breaking Yards emerged as an industry after 1985. Over the last 2 decades it has flourished as a large industry. At present 30 yards are running business in the Chittagong port city.
***Worlds Longest Canal Is Digging ......... as work on the Jinghangyong Canal in China, began at the end of Sept. The section now under construction is between Hangzhou to Ningbo, with a length of 237.89 km and an investment of US$302M. It is by far Zhejiang Province's biggest river trade project. When completed in 2007, it will become the #1 waterway for the province. According to government figures, Hangzhou handled more than 1 million TEU last year, out of which, only 2,685 TEU were carried to the ports of Shanghai, Ningbo or Shenzhen for export. Most of the rest went by land. According to the Marine Dept. in China, transportation fees by land to the Port of Ningbo for export cost US$300 more for each TEU compared with sea transportation, & US$400 more to Shanghai. When the waterway is completed, in Hangzhou alone, it will save up to US$250M a year in transportation costs for export cargo.
***Bigger Neighborhood ....... as there are more than 210,000 prently known life forms in the world's oceans, but this could be only a fraction of the total number of marine species, according to early results from a marine census. Scientists from around the world are expected to complete the census of the world's oceans by 2010, when they hope to have a better understanding of the waters that cover nearly 70% of the Earth's surface.
***FMC Revokes 11 OTI Licenses .........as the Federal Maritime Commission took action this month for failure to maintain valid bonds with the agency. They are All Points Freight Forwarding, Manalapan, N.J.; All World Logistics, Kearny, N.J.; Dominicana Air & Ocean Freight Corp., Miami; Fagiola PSC USA, Houston; Global Cargo Corp., Miami; Global Logistics Services, Cudahy, Wis.; Green Freight LLC, Seattle; JB Han Co., Carson, Calif.; PDS Express, Bayonne, N.J.; PRO Freight Ocean Cargo, Opalocka, Fla.; and Transworld Export Services, Jersey City, N.J.
***The New "Pacific Shipper" ......... as beginning this month it will boast a new look & expanded coverage. The magazine will be converting to a standard 8 x 10-7/8 inches publication size, which will align it with its sister publications: The Journal of Commerce, Shipping Digest, The Florida Shipper, & Gulf Shipper. The changes will serve to salute the publication's rich 77-year history while providing customers with a magazine that will continue to be a "must-read" well into the future.
***Ringing In New Discovery ........ as Odyssey Marine Exploration has recovered a ship's bell believed positively identifies wreck of the SS Republic, currently being excavated in the Atlantic Ocean off coast of Georgia. SS Republic was a sidewheel steamer lost in deep water in 1865 after battling a hurricane for 2 days. All crew & passengers made it safely off the vessel, although a number of passengers eventually died on one of the rafts before rescue. The ship, New York for New Orleans, was reportedly carrying a large cargo of gold specie. See the bell.
***USS Midway Starts Home ........ as the soon-to-be museum ship has weighed anchor in Bremerton, Washington & begun the journey to her old home in San Diego! She will stopover briefly in Oakland for a fresh coat of paint & some restoration work -- then it's straight to San Diego. Planned arrival is Dec. 2003. WOW! Take a look!
***Throughput >> Port of Hong Kong handled 1.1 million TEU in Sept. or 6.6% less containers than in the same month last year. >> Port of Long Beach total throughput in Aug. fell to the equivalent of 390,717 TEU, an 8.5% drop from Aug. 2002. >> Port of Savannah, Ga. handled 390,936 TEUs in July to Sep., 11% more than in same period of last year. >> Port of Shanghai surpassed the 8.61 million TEU mark on Oct. 14, which was the same amount of freight it handled for the whole of 2002, on track to become the 3rd busiest port in the world this year & is set to overtake South Korea's port of Pusan, but would still trail Hong Kong & Singapore. >> Port of Shenzhen recorded a container throughput of 1.08 million TEU in Sept., just 10,000 TEU shy of Hong Kong's figure last month. >> Port of Singapore has preliminary throughput figures for the month of Aug. which show an increase of 10.1% year-on-year to 1.622 million TEU from 1.473 million TEU in the corresponding month in 2002. >> Port of Tianjin recorded throughput of 2.24 million TEU over the 1st 3 quarters of the year, a rise of 25.6% over same period last year. >> Port of Zhangzhou port handled a total of 1.63 million tons of cargo, representing a whopping year-on-year growth of 60%.
***This Month In U.S. Navy History
*1797 - USS Constitution is launched at the Charlestown Navy Yard, Boston, Mass. Ship is now the oldest commissioned ship in U.S. Navy.
*1812 - U.S. sloop of war Wasp captures HM brig Frolic.
*1923 - First American-built rigid airship, USS Shenandoah, is christened. It used helium gas instead of hydrogen.
*1842 - Commodore Thomas ap Catesby Jones, commander, Pacific Command, mistakenly seizes Monterey, thinking the U.S. has gone to war with Mexico.
*1846 - Lavinia Fanning Watson of Philadelphia christens the sloop-of-war Germantown, 1st U.S. Navy ship sponsored by a woman.
*1864 - Lt. William Cushing sinks Confederate ram CSS Albemarle with a spar torpedo attached to bow of his launch.
*1922 - Navy League of the U.S. sponsors 1st annual celebration of Navy Day to focus public attention on the importance of U.S. Navy. Date was selected because it was Theodore Roosevelt's birthday.
*1943 - First women Marines report for duty on the West Coast, Camp Pendleton, Calif.
*1943 - The Navy accepts its 1st helicopter, a Sikorsky YR-4B(HNS-1), at Bridgeport, Conn.
*1944 - Fast Carrier Task Forces attack Japanese shipping & installations in Visayas & northern Luzon.
*1962 - Atlantic Fleet begins quarantine operations to force Soviet Union to agree to remove ballistic missiles & long range bombers from Cuba.
*1983 - Terrorist bombing of Marine barracks at Beirut airport in Lebanon kills 241 members of 24th Marine Amphibious Unit.
U.S. Navy History Center
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!!
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.
SPECIAL NOTE: Please view the dramatic new pictures at our special "Gallery of Cargo Loss" website feature.
>>> Our Current Photo Feature ..... "Pelicans Peril" -- an amaz-z-z-z-ing story of a container vessel.
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 & your amusement..............
California Wine Institute .......... re Federal Trade Commission report on direct shipping of wine.
Europe Energy & Transport Digest
E-Mail Tracking ........ who really sent that E-mail message to you?
Fleet Week In San Diego
Galileo ..........planned European satellite navigation system. Applications for concessions must be received by the EC not later than 5 Dec. 2003.
Int'l Maritime Organization ......... model security courses.
Kellysearch ....... new Int'l B2B Int'l product & service search engine.
Maritime Assn. of the Port of New York & New Jersey ......... interview with Captain Wm. G. Schubert, U.S. Maritime Administrator -- discusses Maritime Security Program (MSP), Maritime Transportation System (MTS) initiative, & short sea shipping.
Maritime Security Requirements
FDA Bioterrorism Final Rules Published
NAFTA: A Decade of Strengthening a Dynamic Relationship ........ pamphlet outlining results of NAFTA Free Trade Commission meeting, held this month in Montreal, Quebec, Canada.
Panama Canal Authority Advisory For Small Vessels
Regional Warehouses -- Return of The Concept
U.S. Customs "Textile Status Report for Absolute Quotas"
U.S. Homeland Security Announces Significant Steps in Enhancing Maritime Security
Assn. of Ship Brokers & Agents (USA) .......... distance learning courses.
China Logistics Report ........ covers distribution, logistics & transportation in China.
Glossary of Supply Chain Terminology
U.S. National Motor freight Classification (NMFC)
Who's Who In Logistics Online
Global Supply Chain Conference ....... Nov. 12, 2003, Online 11:00 am ET. "Supply Chain Security Without Tears" from Hau Lee, Stanford University & "Auto-ID: The Next Supply Chain Revolution" from Kevin Ashton, Auto-ID Center, MIT
2nd Annual South & Central American Air Freight Conference ........ 12 to 13 Nov. San Jose, Costa Rica.
2nd Intermodal Africa Conf. ......... 5 - 6 Feb. 2004, Capetown.
Int'l Work Boat Show ...... Dec. 3-5, 2003 Morial Convention Center, New Orleans, LA.
Los Angeles Transportation Club ........ Sat., Nov. 1, 2003 Disneyland Grand Californian Hotel -- 2003 Presidents Reception & Dinner Dance.
L.A. Harbor Transportation Club .......... Nov. 6 2003, Reef Restaurant, Port of Long Beach, CA. Speaker, Gail Ruderman Feuer, Sr. Attorney, Natural Resources Defense Council. The Port of LA is working under a US$50M settlement for failing to perform a full environmental review. The settlement with NRDC stipulates the port must equip the new China Shipping terminal with capacity to operate vessels with electrical power when at berth, incorporate low-emission yard equipment, and investigate low-profile cranes so as to not obstruct harbor views.
Marintec China 2003 .......... 2- 5 Dec, 2003, Shanghai New Int'l Expo Center, Pudong, Shanghai. Both Marintec China & Port China will be held at Shanghai -- world's 4th busiest port & center of the China's maritime industry!
MRO Expo/Supply Chain Management Expo ....... Nov. 1 2003, Toronto, Ontario.
Preparing For The ISP Codes ....... Nov. 19, 20 & 21 2003, State University of New York Maritime College
Supply Chain Management: The Truth Beyond the Promise ........San Francisco, CA, 3-4 Nov. 2003.
U.S. Customs & Border Protection Trade Symposium ........ Nov. 20-21, 2003, Washington, DC. Includes trade security & unification of functions at the border.
"Dawn of the Dead"
National Beef Cookoff ....... Winning Recipes.
OUR "E" Section: The Forwarder/Broker World***
7. New U.S. Transport Related Legal Cases _______
Maritrend, Inc. Vs. Serac & Co. Shipping
5th Circuit U.. Court of Appeals
Oct. 16, 2003
MARITIME LIEN: There is a strong presumption that a federal maritime lien exists when necessaries are provided to a vessel. In this case, plaintiff stevedore provided stevedoring services to a ship at the direction of the ship's local agent. When the agent failed to render payment, plaintiff brought suit against the agent and the ship, in rem. Evidence indicated that the invoice for stevedoring services was sent only to the agent, but stated that it was for the account of the owners/agents and/or charters of the named vessel. Other evidence indicated that stevedore traditionally pursued claims against vessel if the agent did not promptly pay. The court ruled that the party attacking the presumption of a maritime lien for supplying necessaries to a vessel has the burden of clearly showing that personal credit of the owner, charterer, or agent was relied upon.
Royal & Sun Alliance Insurance Vs. All Freight
U.S. District Court for So. Dist. of New York
July 23, 2003,
WARSAW CONVENTION: Plaintiff subrogating insurance company sued defendant indiret air carrier (forwarder) to recover for non-delivery of 4 crates of aircraft parts. Plaintiff Royal moved for partial summary judgment asserting that the unamended Warsaw Convention of 1929 applied -- to defeat the forwarder's damage limitation.
OVERVIEW: Subrogating plaintiff argued that the indirect air carrier could not avail itself of the limitations in the Warsaw Convention because it failed to comply with the requirements of Art. 8(c) of the Warsaw Convention -- a failure to note stopping places on the HAWB. In opposing the motion, All Freight asserted that the case was governed by the Hague Protocol to the Warsaw Convention which did not require Art. 8(c) compliance. The court rejected the insurance company's argument that the Hague Protocol was inapplicable because the U.S. did not sign it. The court found that by ratifying the Montreal Protocol No. 4 (MP4) to Amend the Warsaw Convention, the U.S. expressly consented to adhere to the Hague Protocol, contained within MP4 itself. Plaintiff's motion for partial summary judgment denied. Limitation is valid.
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
Cameron W. Roberts, Esq. (Countryman & McDaniel)
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