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Law Offices of Countryman & McDaniel

THE CARGO LETTER [444]

Air & Ocean Logistics - Customs Broker News

30 June 2008

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Good Friday Morning from our Observation Deck......overlooking the officially designated "Cargo City" area and...... Runway 25-Right, at Los Angeles International Airport, voted "Best Cargo Airport in North America.". Here is what happened in our industry during June 2008!

This is our "Price of Fuel" edition.

To help you find what you need -- FAST -- there's now a transport search engine installed at our Cargo Law.com website!

Contribute your knowledge, stories & company information.......by e-mail to The Cargo Letter.  We strive to bring you useful information which is timely & topical.  Be sure to visit our website.

The Cargo Letter Archives of Past Issues
Michael S. McDaniel, Editor, Countryman & McDaniel, forwarder/broker/trade consultant attorneys at LAX.

INDEX to The Cargo Letter:

OUR "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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 Back To Main Page

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OUR "A" Section: Trade, Financial & Inland News***

  1. Freight Forwarder Trade Briefs _______________

***Fuel Takes A Bigger Transport Indusrtry Bite ....... as U.S. logistics costs rose 7%, or US$91Bn, to a record high of US$1.4 trillion in 2007 driven largely by soaring fuel prices and extra costs to hold slow turning inventory in a soft economy, according to an annual report that tracks trends in logistics spending. Logistics costs represented 10.1% of the Gross Domestic Product, crossing a double-digit efficiency benchmark for the first time since 2000, when logistics costs were 10.3% of the overall economy. Last year marked the 4th consecutive record high for logistics costs, but the growth in logistics expenditures slowed from 11% in 2006, when logistics costs represented 9.9% of GDP. This is a bad sign, driven by fuel costs.

***U.S. Trade Deficit With China Up ..... as there was a marked rise in April to more than US$20Bn, according to U.S. Commerce Dept. statistics released June 11. It's the highest dollar value of the deficit with China in three months and a 25.9% rise over March. The increased deficit reflects higher imports of a wide range of Chinese products from toys and games to televisions, electrical appliances and clothing. Overall, the U.S. trade deficit with all nations hit US$60.9Bn in April, a 7.8% rise over March. Much of that deficit is attributed to oil imports, with the price of crude oil skyrocketing this year. Analysts cautioned the deficit will widen further in coming months, given that oil is now trading above US$130 per barrel.

***10 + 2 Outlined For The Rest of Us ....... as U.S. Customs & Border Protection has posted its draft technical requirements for a proposed security measure to collect more detailed, advance information on import cargo, known as "10+2." The proposed rule requires importers to file 10 types of data identifying the manufacturer, consolidator, buyer & receiver of the goods 24 hours prior to vessel loading overseas. Ocean carriers must transmit two sets of data related to each container. The publication of the data layouts indicates the agency is ready to begin discussions with the trade community about the design of the input fields and other technical matters needed to implement 10+2, which CBP officials predict will be released in final form later this summer.

***U.S. Customs Wants You ....... as concerned members of the public can now report violations of trade law to U.S. Customs & Border Protection through a new online system. The agency has placed the e-Allegations link on its Web site to make it easier for people to report possible trade violations, such as misclassification of merchandise, false country of origin markings, health and safety fraud, intellectual property rights and textile quota evasion.

***The Cuban Door Opens - Just A Crack ...... as the U.S. Commerce Dept. has updated its rules to allow Americans to send cellular phones & related accessories to family members in Cuba. Under existing licensing authorities, eligible family members may send certain items to Cuba in a monthly gift parcel. The rule change expands the list of items to include cell phones and increases the dollar value limit to US$400, enabling shipments of cell phones without reducing the quantity of other humanitarian items.

***Younger U.S. Cows Angry In Korea, But Not Mad ......as on June 10, the cabinet of South Korea President Lee Myung-bak offered its resignations in the wake of nationwide protests over U.S. beef imports. In April, with the support of Lee, South Korea began accepting imports of U.S. beef after previous scares of mad cow disease. The agreement allowed for export of any type of U.S. beef. But public outcry has been fierce, as according to news outlets, South Korean mistrust of government officials runs deep on the topic. In an effort to appease the public, South Korean trade officials urged U.S. exporters like Tyson & Cargill to use younger cattle for their shipments to the East Asian nation. Younger cattle are considered to carry far less risk of attaining the disease. That, apparently, hasn't worked. Thousands have rallied in Seoul to protest the agreement. As a U.S cow, I would not like to be hamburger -- and be angry about this.

***Protecting The Indian Post Office ....... as the Indian Parliament next month will be weighing proposed legislation that would ban private courier services from carrying packages less than 500 grams (17 ounces). The country's communications ministry has placed an amendment to the India Postal Act before the parliament in a bid to shore up the sagging fortunes of India's state-run postal service. Thus, UPS, DHL & FedEx are locked out.

***Closing The Chinese Post Office - In Part ....... as the government has started to impose shipping restriction in advance of the upcoming Olympic games in Beijing. The Chinese Post Office has suspended mailing of liquids or powders as a safety precaution. Other products such as powdered goods, chemical products, unidentified metal, mechanical & electrical products, as well as sealed containers with unidentified gases & liquids will also be banned from delivery.

***New Bonded Logistics Park Near Hong Kong ..... as the Guangzhou Bonded Logistics Park, the ninth bonded logistics park in China, is expected to pass national inspection & be operational in Aug. 2008. The logistics park is located within the Guangzhou Development Zone in Eastern Guangzhou, China, and will provide services including int'l transfer, distribution, procurement & transit trade.

***American Truckers Warn of Cap-And-Trade Environmental Regulations ...... as the American Trucking Assn. voiced concerns to Congress on June 19, over the potential impact of pending federal cap-and-trade emission legislation and urged lawmakers to move cautiously on environmental initiatives. The ATA, warned the panel that the current cap-and-trade legislation could result in a patchwork of local, state & regional climate change regulations that would increase diesel fuel prices even higher. Congress is considering five pieces of climate change legislation that would set up a cap-and-trade system. The "cap" portion of the plan would set limits on greenhouse gas emissions and require large emitters to have an "emissions permit" for each ton of pollutant emitted. The "trade" portion would allow the large emitters, such as refineries, to increase their emission levels above the caps by purchasing the "emission permits" from firms that have not used their allotment. Here's how cap-and-trade works.

***U.S. To Build India Rail Cars ...... as American Railcar Industries of St. Charles, Mo., and Amtek Auto Ltd. of New Delhi said they plan to create a 50-50 joint venture to manufacture, sell & supply freight railcars and their components to customers in India and other countries to be agreed upon. They plan to begin construction of the facility during the 2nd half of this year, following final site selection. It is expected that the joint venture could begin railcar production in 2009.

***Honda's Green Solution ....... as it has fully deployed its fleet of Auto-Max railcars, achieving a significant reduction in the fuel consumption & CO2 emissions associated with its automobile distribution activities in the U.S. The 400-car fleet of more space-efficient Auto-Max railcars is the only such automaker-operated fleet in use in the United States. Including the Auto-Max fleet shipments, American Honda currently transports about 82% of its Honda & Acura automobiles across the country by rail, achieving the highest rail-shipping rate of any automaker. Honda participated with the Greenbrier Companies in designing Auto-Max, which is exclusively manufactured by Greenbrier.

***The Return of UPS ......... as many companies hesitate to sell globally over the Internet because of the difficulty of facilitating a return if a customer is not satisfied. Another first-to-market solution, UPS Returns allows customers to efficiently return purchased items from 98 countries or territories around the globe. Now, business & residential customers can receive the international return label & commercial invoice via e-mail, local post or from the UPS driver picking up the return package.

***UPS Canada Opens Mega Site ...... as it's "strategic logistics campus" in Burlington, Ontario, has expanded from 800,000 square feet to 975,000 square feet will support faster shipping turnaround for the local, national & int'l businesses it serves in the area. UPS said the site is a "key central supply chain facility in Canada for major national retailers. Increasing e-commerce activity across Canada is driving customer requirements for post-sales service and returns management. The latest UPS expansion also is expected to support after-sales activity and critical parts inventory management for high-value technology components and computer products."

***UPS Service Will Target Pharma Customers ..... as it has expanded capability to manage the shipment of temperature-sensitive medical items, including around-the-clock intervention when necessary to utilize refrigeration or replenish dry ice to protect product quality. It said its "UPS Proactive Response" service will provide around-the-clock attention to help ensure product integrity and is available in 72 countries. It includes dry ice replenishment or refrigeration at select air gateway facilities and intervention in the event of unexpected delays. In a related development, UPS Supply Chain Solutions broke ground this month on a new 215,000-square-foot health care distribution facility in Roermond, The Netherlands, which will open in the spring of 2009.

***UPS Freight Guarantees Canada ...... as the company has expanded it's U.S. on-time less-than-truckload performance guarantee to shipments moving in both directions across the Canada-U.S. border. The on-time service guarantee is available effective June 30 for LTL customers, on both sides of the border, who ship using the current UPS Freight UPGF525 tariff. The new guarantee promises that customers can request a waiver of their freight charges if their shipment fails to arrive as scheduled. Detailed terms of the guarantee can be found in the tariff.

***Goodbye Kinko's ...... as the retail service centers will be rebranded over the next several years to become FedEx Office, a name the company feels better describes "the wide range of services available…and takes full advantage of the FedEx brand."

***Goodbye Blue Dart ...... as DHL is planning to delist Indian express giant Blue Dart from the Mumbai Stock Exchange with an offer to Blue Dart shareholders. DHL, which already owns an 81% stake in India's biggest courier company, wants more direct control over the company, as it attempts to build on growth in the Indian market. Blue Dart's revenue grew 88% in the 1st quarter of this year.

***Goodbye Target ...... as on July 1, 2008, our beloved Target Logistic Services (originally Target Air Freight) officially changes its name to Mainfreight, reflecting the title of its new global parent. The Carson, CA-based freight forwarder & logistics provider was acquired by Mainfreight in Nov. of last year and increasingly is being integrated into the New Zealand company's worldwide logistics operation. Target is a US$200M company with facilities in 38 U.S. cities and a network of subsidiaries & agents in 80 nations. Mainfreight is one of the largest transportation companies in New Zealand with offices throughout Asia & the South Pacific. Mainfreight has some 3,000 employees and NZ$$1Bn in annual revenues.

***Agile Agreement To Acquire ...... as Cosa Freight, a Shenzhen-based freight forwarder is now a part of Agility. The deal is expected to be finalized in the coming weeks. Cosa Freight was estasblhed in 1998 and is a full service ocean freight forwarder with 200 employees in 6 China-based locations, and it also has offices in Hong Kong, the U.S. & Canada. Agility was formerly PWC Logistics.

***Weighty Calculation ..... as the scale company Mettler Toledo has developed a new system that allows the weighing of coupled railroad cars while a train is in motion, eliminating the costs & hazards of uncoupling & positioning each car for weighing. By integrating a dynamic weighing controller with a dynamic rail scale, entire trains can be weighed as they cross the scale at speeds up to 6 mph. Individual rail car weights are obtained without uncoupling cars and train total weights are automatically calculated. Rail car identification information from an RFID tag is integrated into the weighing record. Promising technology for ocean containers.

***Soccer Lemmings Hit The Rails ....... as Switzerland's national railway has told its workers to stop using their normal orange reflective vests after confused Dutch soccer fans started following them on to the tracks. A railway spokesman said the changed strip had been prompted by an incident in the Swiss capital Berne when a group of Netherlands supporters followed a worker on to the lines after mistaking his uniform for their traditional orange dress. "We have now given out yellow vests to all our staff who have to work on or cross the tracks in Basel, where the Dutch fans are now based," a spokesman said on June 20. 1,500 railway staff involved in fan coordination work had already been given yellow vests to help them stand out from the Dutch supporters.

***RFID Global Demand Soars ...... as it will reach US$5.3Bn this year and climb to US$27Bn in 2018, according to IDTechEx, a consulting company that provides research & analysis on RFID technology. The U.S. & China are spending the most on RFID, the firm says, and the apparel industry is rapidly implementing RFID for tracking bolts of cloth as well as pallets, cases & individual items of clothing. "Apparel RFID goes even further because there are now hundreds of commercial laundries in the world that are washing uniforms & other clothing, such as hospital garments, with the aid of RFID," experts at IDTechEx reports. "The benefits of RFID vary from efficiency in the factory and reducing stockouts in retailing to error prevention, faster service, reduced cost and eliminating tedious procedures in the laundry & rented-garment sectors." The majority of spending on RFID relates to passive-tag systems and high-frequency (HF) and ultra-high frequency (UHF) technologies, according to the research. "Real-Time Locating Systems (RTLS) are currently the hottest form of active RFID," according to IDTechEx.

***Transport Doggie Dress Up ...... as blow-up dolls, shop mannequins & dogs dressed up as children have all been used to try and justify driving in lanes where vehicles are required to have at least three occupants. "There were some odd people that tried these antics," North Shore city council traffic safety manager Andre Dannhauser told Reuters. Drivers caught trying to beat the system are fined the equivalent of US$114. Enforcement officers taking pictures of offending cars in transit lanes have been treated to a wide range of excuses from caught-out motorists, Dannhauser said. "The most common one is the imaginary passengers they claim we couldn't see because they were so small," Dannhauser said.

***On The Job Transport Training ..... as a firefighter in Japan lost his job after city officials found out he had been driving ambulances & fire trucks for over 20 years without a driver's license, an official in Takaoka City, central Japan, said. The case came to light when the firefighter in his 40s, who had been working for the city for over 25 years, hesitated to show his driver's license during a regular inspection last week, said Shigeru Sawasaki, a Takaoka City official. "He was acting awkward when the inspection took place on the 5th," Sawasaki said. "And when the inspector took the driver's license and checked, it belonged to a family member." "This is a misconduct where no excuses can be made to the citizens. We are sorry to fail the citizens' expectations," Keiichiro Tachibana, the mayor of Takaoka City, was quoted by Sawasaki as saying.

***Transport Industry Converges On Beijing Olympics -- But What About That Food? ....... as it's official -- hungry foreign hordes craving a fix of diced chicken fried with chili & peanuts during the Beijing Olympics will be able to shout "kung pao chicken!" and have some hope of getting just that. As it readies for an influx of visitors for the August Games, the Chinese capital has offered restaurants an official English translation of local dishes whose exotic names & alarming translations can leave foreign visitors frustrated & famished. If officials have their way, local newspapers reported, English-speaking visitors will be able to order "beef and ox tripe in chili sauce," an appetizer, rather than "husband and wife's lung slice." "Bean curd made by a pock-marked woman," as the Beijing Youth Daily rendered the spicy Sichuanese dish, is now "Mapo tofu." And "chicken without sexual life" becomes mere "steamed pullet." According to one widely repeated story, the Chinese name of "kung pao chicken" comes from the name of an imperial official who was fed the dish during an inspection tour. With the Beijing Olympics just more than a month away, a notice on the city tourism bureau website told restaurants to come in & pick up a book with the suggested translations.

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  2. The Cargo Letter Financial Page ____________   

**FedEx. DOWN with a 4th quarter loss of US$241M compared to net income of US$610M in the year-earlier period.  

**UTi Worldwide Inc. DOWN with profit of US$13.5M in 1st quarter ending April 30, compared to US$18.1M in same period a year earlier.                           

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OUR "B" Section: FF World Air News***

3. Freight Forwarder World Air Briefs __________  

 

***Price-Fixing Scandal Grows ...... as 5 additional airlines have pleaded guilty to fixing air cargo rates & will pay fines totaling US$504M, the U.S. Justice Dept. (DOJ) reported June 26. The latest airlines to admit their roles in a "multi&endash;year conspiracy" and the fines they will pay:

Air France & KLM Royal Dutch Airlines, which now operates as Air France-KLM under a single holding company, has agreed to pay a US$350M criminal fine, the 2nd highest fine ever levied in a criminal antitrust prosecution.

Hong Kong's Cathay Pacific, US$60M fine.

Copenhagen, Denmark-based SAS Cargo, US$52M fine.

Amsterdam, Netherlands-based Martinair, US$42M fine.

If the U.S. District Court accepts the plea agreements, the total fines imposed in the DOJ's ongoing air cargo antitrust investigation will reach US$1.27Bn. Other airlines to have previously pleaded guilty and paid criminal fines were British Airways (US$300M), Korean Air Lines (UD$300M), Japan Airlines (US$110M) & Qantas Airways (US$61M). Thus far, only one airline executive, Bruce McCaffrey, the former VP of Qantas' U.S. freight operations, has been punished for his part in the price-fixing crime. In May, McCaffrey, who was facing a possible 10 years in prison and US$1M in fines, agreed to serve 8 months in jail & pay a US$20,000 fine under a plea agreement. We expect more arrests. This price-fixing conspiracy undermines our economy & harms the American people who, due to lack of true competition in this area, end up footing the bill, said the U.S. Justice Dept.

***What Fuel Costs The Air Industry ...... as the leading int'l air transportation trade group predicts the industry will experience a US$2.3Bn loss this year due primarily to the surging price of fuel worldwide. The Int'l Air Transport Assn. (IATA) prediction is a staggering reversal of the group's previous financial forecast for 2008. IATA predicted in March that the industry would see a US$4.5Bn profit, however the estimate was based on an average oil price of US$86 per barrel. "For every dollar that the price of fuel increases, our costs go up by US$1.6Bn," said IATA director general and CEO Giovanni Bisignani

***What Fuel Has Cost Continental Airlines ..... as on June 6 it announced cutting 3,000 jobs and 67 of its fleet to adjust to soaring fuel prices. "The airline industry is in a crisis. Its business model doesn't work with the current price of fuel and the existing level of capacity in the marketplace. We need to make changes in response," said the company's chief executive officer.

***What Fuel Has Cost United Airlines ..... as on June 5 it announced cutting up 1,100 more jobs, and removing 70 airplanes from its fleet. Previously it had said it was cutting 500 jobs.

***What Fuel Has Cost American Airlines ...... as it announced last month that it would cut workers & slash its domestic flight capacity by 11% to 12% in the 4th quarter, after the peak summer season.

***First B-767 Freighter ....... asTokyo-based air carrier All Nippon Airways has taken delivery of the first converted passenger-to-freighter Boeing 767-300 aircraft. The plane, already owned by ANA, is the first 767-300 to undergo the Boeing Converted Freighter program which the Chicago-based airplane manufacturer launched in 2005. ANA initially placed 3 firm orders for the conversions and has since exercised 4 additional BCF options in a contract that is estimated to be worth US$136M over 10 years.

***China Olympic Embargo ...... as the Civil Aviation Administration of China announced that China will ban air freight transportation of most dangerous goods (DG) to certain host cities during the 2008 Olympic Games scheduled in Beijing later this year. The ban will be in place from July 1 to Sept. 30, according to a statement published online. The ban affects civil-use explosives, guns, ammunition and other hazardous materials carried by air to Beijing, Shanghai, Tianjin, Shenyang, Qinhuangdao & Qingdao.

***Anger On DHL Withdrawl From U.S. Market ...... as Ohio politicians, businesses & unions are gearing up to fight DHL Express over its decision to close its Wilmington air freight hub and hire UPS to fly its packages instead of incumbent carriers ABX Air & Astar Air Cargo. German postal & logistics group Deutsche Post announced this month that DHL would pare underutilized assets in its ground network and switch to UPS for domestic airlift in North America to stem heavy losses. DHL and UPS hope to finalize an agreement within the next 3 months. Ohio officials also are upset that they provided US$7.2M in tax abatements to DHL, ABX & Astar to promote expansion of the hub only to see it shut.

***UPS Takes Korea ....... as it has acquired 100% of a joint venture it previously shared with The Korea Express Co. to serve the Korea market. "The transformation of the joint venture to a wholly owned subsidiary will allow UPS to grow its business in Korea & better serve its customers in a key market," UPS said in a statement. UPS began operating in Korea in 1988. The company operates 31 weekly flights to & from Incheon Airport using B-747, B-767 & MD-11 aircraft connecting Seoul to Qingdao, Shanghai, Taipei & Anchorage.

***Gemini Air Cargo Regroups ...... as it has filed for bankruptcy protection for the 2nd time in 2 years, but will continue to operate, according to a message from management to employees. The Dulles, Va.-based carrier is the latest airline to be victimized by the deadly combination of sharply rising fuel prices & slow demand in a weak economy. Nine airlines this year have ceased operations, including passenger-based ATA Airlines, Aloha Airlines and Skybus. Last Oct., Kitty Hawk Aircargo went out of business after being whipsawed by high fuel prices, a downturn in business & stiff competition from other cargo carriers. Gemini has 7 old DC-10-30s and operates 4 MD-11 aircraft. Its plan earlier this year was to ground its DC10s by the end of 2009 and replace them with more fuel-efficient, leased MD-11s.

***AirNet Systems Taken As Banking Changes ...... as the Columbus, Ohio-based express carrier cargo with strong ties to the banking industry, has been acquired by Bayside Capital Inc. in a deal worth about US$34M. AirNet said in recent years it has seen a decline in bank services revenues because banks have switched to check imaging technology.

***Time Matrters For Asia ..... as Germany-based courier, same-day & emergency air cargo carrier "time:matters", a subsidiary of Lufthansa, has opened an Asian branch office in Singapore at the beginning of this month. While time:matters does use Lufthansa, it doesn't do so exclusively, as it simply selects the routing that delivers cargo at the exact time needed.

***Mr. Boeing's Iran Visit Blocked ..... as the U.S. Commerce Dept. has moved to block the export of a Boeing 747 from Istanbul, Turkey to Iran Air in Tehran. The 180-day temporary denial order signed by Darryl Jackson, Commerce Assistant Secretary for Export Enforcement, on June 6, prohibits the purchase of the U.S.&endash;made B747 by a London-based middleman from the Turkish operator Ankair for purposes of exporting to the Iranian airline without first applying for the proper export licenses. In addition to Ankair and Iran Air, other parties named in the denial order are Galaxy Aviation Trade Co. and Hooshang Seddigh, both of London, and Hamid Shakeri Hendi & Hossein Jahan Peyma in Tehran. Boeing Corp. was not involed in the attempted export.

***American Airlines Cargo To Moscow ..... as it has announced a new cargo service to Moscow from Chicago's O'Hare Int'l Airport. The regular, non-stop service to Russia's Domodedovo Int'l Airport uses a Boeing 777 freighter. The service will help meet demand for U.S. commodities. The new service operates 6 days a week with eastbound flights leaving Chicago every day but Sunday and westbound flights leaving Moscow daily except Monday.

***Lufthansa Cargo Says - No Paper ..... as it will begin a pilot program in Germany by the end of the year to move air freight with the assistance of electronic, rather than paper, documents. The e-freight project will be the first example of paperless cargo transport from Germany. The paper-free cargo concept is a major initiative of the Int'l Air Transport Assn. Air Canada, Cathay Pacific, KLM, Singapore Airlines & British Airways are among several carriers that are also conducting pilots to develop, test & finalize standards for paperless air freight. Electronic document exchange is expected to simplify a process that on average requires 38 documents per shipment and eventually lead to cost & speed improvements. WARNING: A paper air waybill is still requried in those countries following the Warsaw Convention.

***Volumes >>> Cathay Pacific & sister airline Dragonair together carried 140,698 tons of cargo and mail in May, up 7.8% on the same month last year, the Hong Kong-based carrier said June 13. >>> Hong Kong Air Cargo Terminals Limited (Hactl) had air cargo tonnage throughput for May 2008. A total of 218,696 tons were handled in the month, representing a 7.5% year-on-year growth & cumulative tonnage from Jan. to May 2008 was 1,058,889 tons, up 6.7% compared with the same period last year.

***Curry Spiked Pre-Flight Cocktail ..... as Reuters reports that around 50 pilots each year in India are being grounded because they had consumed alcohol before taking a flight, the country's civil aviation authorities said June 24. The Director General of Civil Aviation (DGCA), a body controlling airline operations in India, said dozens of pilots are found to have consumed alcohol during routine pre-medical tests every year. India is one of the fastest growing aviation markets in the world with dozens of new airlines competing with each other everyday, often resulting in pilots forced to fly at short notices. The country has about 4,500-5,000 commercial pilots and another 2,500 are undergoing training. A flight from India's capital to the eastern city of Patna was cancelled June 20 after a routine medical test on crew members revealed the pilot had consumed alcohol.

***Derrie-Air Has Your Back ....... as readers of The Philadelphia Inquirer & Philadelphia Daily News opened their papers June 7 to see ads for a new airline called Derrie-Air, which purportedly charges passengers by the pound. But the new carrier will never get off the ground. It was a one-day advertising campaign about a fake airline by Philadelphia Media Holdings, the papers' owner, and Gyro ad agency. Visitors to the airline site learn that Derrie-Air is the world's only carbon-neutral luxury airline, and it justifies its fare policy by saying that it takes more fuel to move heavier objects. The carrier pledges to plant trees to offset every pound of carbon its planes release into the atmosphere. Derrie-Air's sample rates range from US$1.40 per pound to fly from Philadelphia to Chicago to US$2.25 per pound to fly from Philadelphia to Los Angeles.                         

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OUR "C" Section:  FF World Ocean News***

  4. FF World Ocean Briefs                                                     

***Could Higher Oil Prices Slow Or Reverse Globalization? ...... as skyrocketing energy prices could slow globalization and cause a "fundamental realignment in trade patterns," suggest economists Jeff Rubin and Benjamin Tal from the Canadian Imperial Bank of Commerce (CIBC). The following are quotes from their article "Will Soaring Transport Costs Reverse Globalization? >>> "The duration of a typical sea voyage from China to North America is 4 weeks. Including inland costs, shipping a standard 40 ft container from Shanghai to the U.S. eastern seaboard now costs US$8,000. In 2000, when oil prices were US$20 per barrel, it cost only US$3,000 to ship the same container. But at US$200 per barrel, it will soon cost US$15,000 in transport costs to ship from China to the U.S. eastern seaboard. >>> So we are seeing an end to the time when the price of container shipping was the bargain of all bargains." Read the article:

***Sea Pirates Bloody Growth ........ a must read Forbes article from June 12, 2008

http://www.newsweek.com/id/141140

***UN Takes Piracy Stand ....... as the Security Council adopted a resolution on piracy on June 2, authorizing countries to carry out antipiracy actions in Somalian waters. That action was hailed by Int'l Maritime Organization Secretary-General Efthimios E. Mitropoulos, who said it was "a positive step in the right direction." Under terms of resolution, which was adopted unanimously, the Security Council decided that, following receipt of a letter from Somalia to the UN Security Council president giving the consent of Somalia's Transitional Federal Government (TFG), states cooperating with the TFG would be allowed, for a period of 6 months, to enter the country's territorial waters and use "all necessary means" to repress acts of piracy and armed robbery at sea, in a manner consistent with relevant provisions of international law.

***M/V Amiya Scan Is Freed ...... as she was released June 24, by pirates in Somalia, ending a month-long hostage drama. The ship was hijacked on May 25 when it was some 80 nautical miles off the northern coast of Somalia. She was en route from Kenya to Romania, heading for the Suez Canal. Following capture of M/V Amiya Scan by Somali hijackers, she was then taken down the East Coast of Somalia and held offshore close to the town of Eyl. Media reports said the pirates were demanding a US$1M ransom, but owner Reider Shipping said it believed it would be "irresponsible to provide any details of the ongoing dialogue with the hijackers over the course of this incident because it would encourage would-be pirates & add further danger to the victims of such attacks."

***The Cargo Letter Disagrees With RAND On Pirates ....... as acts of piracy & terrorism at sea are on the rise, but according to a RAND Corp. study there is little evidence to support concerns from some governments and int'l organizations that pirates & terrorists are beginning to collude with one another, according to a RAND Corp. study issued this month. The think tank said the objectives of the two crimes remain different -- piracy is aimed at financial gain while the goal of terrorism is political. While the RAND study is correct as to the classic definition of many single incidents, it fails to appreciate the extent to which that Islamic Terrorism has influenced & injected itself into the many incidents of terrorism which we endure on the high seas today -- much less the clear threat we face in days to come. The pirates have become terrorists -- and the terrorists have become pirates.

***Anti-Trust Immunity Beyond Its Time? ...... as regulation should be reviewed with an eye towards examining whether ocean carriers should continue to enjoy antitrust immunity, the Maritime and Coast Guard Subcommittee of the House Committee on Transportation and Infrastructure was told June 19. "We believe that Congress should conduct a comprehensive review of the Shipping Act. The int'll liner business has changed substantially in last 10 years, in part driven by the shipping act reforms of the 1980s & 1990s," said Michael Berzon, chairman of the ocean transportation committee of the National Industrial Transportation League. The hearing focused on management of the Federal Maritime Commission and regulation of int'l shipping. It followed one held in April where some committee members were critical of management of the commission. Congress asked for a further update in 3 months.

***No Time For Tariffs ....... as the National Customs Brokers and Forwarders Assn. of America Inc. has reiterated a call for the end to requiring non-vessel-operating common carriers to publish tariffs & for terminating antitrust immunity for liner carriers. They are "almost uniformly negotiated individually with individual customers and only later published in tariff form, and that the cost of tariff publication needlessly increases NVOCC costs, reducing their flexibility and competitiveness." said NCBFAA President Mary Jo Muoio last week. She also questioned the FMC's recent action to allow the Ports of Los Angeles & Long Beach's Clean Truck Plan to take effect (see below).

***No Time For Terrorists ...... as there is only a "tiny" chance that all foreign ports serving the U.S. will be ready to apply controversial security legislation requiring the scanning of all containers before arrival into the United States by the July 2012 deadline, a new report commissioned by the World Customs Organization claims. U.S. Congress passed the law last July as part of the 9/11 Commission Implementation Act of 2007 designed to protect the country from another terrorist attack. The study by the University of Le Havre said 100% scanning would cause an immediate slowdown in world trade and disrupt port operations in the short term. According to the study, the U.S. imported 18.5 million containers in 2006, up 10.2% over 1997. During that time frame Asia's U.S.-bound market share has risen from 61.9% to 74.4%. China alone has increased its share to 45.7% from 19%. As a consequence all regions outside of Asia have suffered a shrinking in market share with Europe down from 21% to 13.4%.

***European Union Has Little Time For Terrorists ..... as it's advanced cargo declaration scheme is behind schedule and might have to be postponed, according to the European Community Shipowners' Association. One year before the security legislation is due to come into force, the pace of the development of information technology systems in some national capitals is not fast enough and it is "increasingly doubtful" that the deadline will be met, the Brussels-based association said. The advanced cargo declaration scheme, also known as the 24-hour rule, is the EU's version of a U.S. system requiring that cargo interests file container manifest information a day before loading. It is designed to prevent terrorists from using onboard boxes as a conduit for weapons of mass destruction.

***Dubai Ports World C-TPAT Certified ...... as one of the top 3 global marine terminal operators in terms of container throughput, announced it has been certified by the U.S. government for meeting the minimum-security guidelines of the Customs-Trade Partnership Against Terrorism. The Dubai-government owned company is the only foreign marine terminal operator enrolled in the voluntary program. C-TPAT focuses on importers who implement approved security plans designed to prevent criminals or terrorists from exploiting international shipments and the global transportation system to move weapons, dangerous goods or people. C-TPAT importers are rewarded by receiving lower risk scores and faster clearance from U.S. Customs & Border Protection. So much for the fire storm last year over Dubai Ports ability to run some U.S. terminals. We like these guys.

***Port of LA "Clean Truck" Program Meets Firestorm ..... as in a move that is sure to fuel the fire, the Los Angeles City Council gave its approval to the Port of Los Angeles' controversial Clean Truck Program (CTP) this month. "I applaud the City Council for saying enough is enough," said Los Angeles Mayor Antonio Villaraigosa. "When 1,200 lives are cut short every year by toxic emissions coming from the port, we have a moral mandate to act fast and effectively. That is why LA is committed to a clean truck program that will clean and green our ports for the long haul." Transport industry insiders, however, have long viewed the CTP as a political stunt designed to scrap the free market drayage system now in place. "We have every confidence that this program will be ruled illegal once it reaches the courts," said Matthew Scrhap, manager of environmental affairs for the California Trucking Assn. "This move will do nothing to strengthen the port's case." Indeed, some analysts suggest that it may even prompt the American Trucking Assn. (ATA) to take its threatened legal action sooner than later. "Chances that the port of Los Angeles will succeed with its plans to mandate new policies for drayage drivers are just two", said Curtis Whalen, executive director of the American Trucking Assn's Intermodal Motor Carriers Conference: "slim and none". Meanwhile, CTP advocates are telling local citizens that the plan designed to help mitigate port-related, diesel truck emissions represents a "landmark" which adds further momentum to the port's transition to a License Motor Carrier-based truck concession system beginning Oct. 1, 2008. Not surprisingly, the plan has been embraced & aggressively promoted by the Teamsters. NCBFAA President Mary Jo Muoio last week also questioned the FMC's recent action to allow the Ports of Los Angeles & Long Beach's Clean Truck Plan to take effect.

***Slow & Green Are Less Fuelish ..... as experts believe shipping companies' desire to operate ships more slowly to save money will absorb most of the additional capacity added to the world containership fleet over the next year. Only about 15% of the 70 or so post-Panamax services have incorporated slow steaming and there is strong indication that others will follow, absorbing at least 50 new vessels. The economics are compelling, he said. Giving the example of an 8,000-TEU ship that costs about US$43,000 a day to charter, a 10% reduction in speed will reduce daily fuel costs from US$158,968 to US$86,535 when bunker fuel is selling for US$640 per ton. Even if a ship owner has to add a ship to an eight-ship string in order to maintain a weekly port rotation, they have the potential to save about US$450,000-US$470,000 per steaming day.

***COSCO Bridge Orders Are More Green ...... as it has cut the speed of its entire box fleet by 10%, but the scheme will not be extended to Cosco's remaining fleet, which includes bulkers, tankers, heavy lift, general cargo, car carriers & specialist vessels. This is because these ships already operate at slower speeds of around 10 knots-13 knots, compared with boxships which average 22 knots-25 knots. The container fleet also used a higher percentage of bunkers, consuming about 65% of Cosco's total bunker needs. Pointing to the success of the speed reductition program, Cosco saved nearly 30,000 tons of fuel in March.

***But Speed Reduction Is Not For All ...... as China Ocean Shipping China's largest shipping company, has ruled out plans to launch a fleet-wide speed-reduction program following the introduction of a similar initiative at its liner fleet.

***China Olympic Embargo ...... as to enhance security control during the 2008 Beijing Olympic Games, the Chinese government has announced restrictions to the ocean freight transportation of dangerous goods (DG) discharging, loading and/or transiting through Chinese Ports during the competition period. The Shanghai Port Administration Dept. will impose restrictions from July 18, 2008 through Aug. 31, 2008. Commodities include explosives, hydrogen peroxide, chemical fertilizer, acetone, vitriol, nitric acid, hydrochloric acid & ammonium nitrate.

***PRC Direct ...... as Taiwan is expanding shipping links with China allowing all Taiwanese residents to take direct passenger ferries to the mainland. Travelers from anywhere in Taiwan can fly to the outlying islands of Kinmen or Matsu to board ferries that run to east China's Fujian province - a trip which was previously restricted to Kinmen & Matsu residents.

***Vietnamese Ports Blocked ...... as they are so congested that it may not be until new capacity is added in 2010 before the problem is solved, according to speakers at a recent shipping conference in Ho Chi Minh City. Representatives from Maersk Line and the Danish carrier's sister company, APM Terminals, said cargo sits in Vietnam's container terminals far too long, causes chronic backlogs, according to a report from Port Strategy magazine. Not much near-term help is on the way. A new set of terminals south of Ho Chi Minh will add lots of capacity and the ability to handle larger container vessels, and existing terminals are also being expanded.... but 2010 is a long 18 months away.

***Thailand & Myanmar Dig Each Other ...... as they have agreed to jointly construct a deep-sea port in Tavoy, Myanmar and have developed related infrastructure projects to facilitate cargo transportation from Europe and the Middle East. Foreign ministers from both nations signed a Memorandum of Understanding (MoU) which demonstrates the determination of both governments to develop a deep-sea port, constructing a 130-kilometer road from the port to Thailand, as well as the nearby industrial zone.

***Dubai Ports World Plants Spanish Foot ....... has acquired a 60% stake in a container terminal in the Port of Tarragona in Spain. It would be the 1st terminal in Spain for the rapidly growing Dubai-based terminal operator. The deal is subject to EU approval.

***Desert Tribesmen Freeze Port .......Economic Times said that the Gujjars, the nomadic tribesmen who are mostly located in the northwest of the country in the State of Rajasthan, near the Pakistan border, have blocked rail lines out of Jaipur, Rajasthan's capital About 700 miles away, in Jawaharlal Nehru Port near Mumbai, it has halted container movement at the gateway where more than 60% of the country's containers are handled. For more than a month, the Gujjars have been protested in every way imaginable, though mostly in India's capital, New Delhi. They are seeking to actually be classified as lower down the class hierarchy in India than they currently are, as that would allow more of them to get government positions and places in universities. India runs an aggressive affirmative action program to rectify centuries of rule under a strict caste system. In some cases, that means up to half of places are held for people on the lower rungs of the caste sytmem ladder. Last month, the Gujjars virtually shut down Delhi by blocking roads and entry to office buildings throughout the city. Now, their blockage of the rail line in Jaipur has caused the delay of 15,000 containers, a commerce ministry official told the Economic Times. The ministry is trying to divert containers around the trouble using different rail routes, but delays will be inevitable. What's worse for exporters & importers in India, the Gujjars are persistent and determined in their plight. The 14th Century seems in vogue these days.

***Throughput >>> In 1st quarter of 2008, Hong Kong's total port cargo throughput increased by 14% compared to a year earlier to 62.6 million tons. >>> Adjacent ports of Los Angeles & Long Beach, respectively the No. 1 & 2 busiest container ports in the nation, are down a collective 7% over the 1st four months of 2007, as combined volumes fell to 4.56 million TEUs in the 1st four months of this year from 4.9 million TEUs reported in the year-ago period. >>> U.S.-Flag Great Lakes fleet moved 11.9 million tons of dry bulk cargo in May, a 2% decrease compared to a year ago. >>> APL transported 201,700 40-foot containers in the 4 weeks ended May 30, up 13% from the year earlier period, Singapore-based parent Neptune Orient Lines reported.

***M/V Doulos ........in service 94 years -- longer than any other passenger ship in existence

***The Last Liberty Ship ....... as U.S. Maritime Administration's fleet's final vessel may be sold to Greece & turned into a museum. Maritime Administrator Sean T. Connaughton has signed a memorandum of understanding to pursue an agreement to transfer the Liberty ship S/S Arthur M. Huddell to the Greek government for use as a museum. Donation of the ship to Greece has been under discussion for several years. The World War II-era S/S Arthur M. Huddell is moored in the James River Reserve Fleet site at Fort Eustis, Va., is named after a former president of the Int'l Union of Operating Engineers. American shipyards built 2,751 Liberty ships during World War II, in the largest shipbuilding effort in history. Two other Liberty ships formerly in the Maritime Administration's National Defense Reserve Fleet, S/S John W. Brown & S/S Jeremiah O'Brien, are operating as museum ships. While other redesigned & repurposed Liberty ships remain in service, none remain in service in the form they had in World War II. The Victory ship S/S Lane Victory is also a museum ship at Los Angeles. 

***This Month In U.S. Navy History

1812 - U.S. declares war on Great Britain for impressment of Sailors & interference with commerce.

1813 - Fifteen U.S. gunboats engage 3 British major ships in Hampton Roads, Va.

1815 - Trials of Fulton I, built by Robert Fulton, are completed in New York. This ship would become the Navy's first steam-driven warship.

1870 - USS Mohican burns Mexican pirate ship Forward.

1898 - USS Charleston captures island of Guam from Spain.

1913 - First fatal accident in naval aviation, Ensign W. D. Billingsley killed at Annapolis, Md.

1934 - Commander in Chief, Asiatic Fleet Adm. Frank Upham reports to Chief of Naval Operations that based on analyses of Japanese radio traffic, "Any attack by (Japan) would be made without previous declaration of war or intentional warning."

1945 - Okinawa declared secure after most costly naval campaign in history. United States had 30 ships sunk & 223 damaged, mostly from kamikaze attacks, with 5,000 dead & 5,000 wounded, while the Japanese lost 100,000 dead.

1950 - North Korea invades South Korea beginning Korean Conflict.

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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 June 2008: "Too Little Runway - Too Much Plane" - TACA Flight 390 - June 2008

You Tube feature: "Container Gantry Gone"

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>>>>>>

Arthur D. Little: Journey 2.0 in Sustainable Transport ......... explores emerging threats to revenues in the transport sector & investigates potentially significant business opportunities to overcome these.

Asia-Pacific Tariff Database

B2X ......sourcing products from China

Bow Wave ........ the leading transport industry e-zine from our Pal ..... Sam Ignarski ...... get a free subscription

Challenges to Scanning 100% of U.S.-Bound Cargo Containers

ChinaVitae - Who's Who In China .......a resource of biographical information on more than 3,000 Chinese leaders

Egyptian International Trade Point

How To Become A U.S. Customs Broker

International Trade Law Resources

Port Management International ....... new

Proper Customs Duty Deductions for Freight & Other Costs

Slovenian Business Portal

The World's 1000 Largest Manufacturers 2008: The Chinese Influence

Transportation Assn. of Canada

Transport Costs Could Reverse Globalization ........implications of the fuel crisis

U.S. Caribbean Basin Trade Partnership Act

U.S. Census Bureau - Website for Mandatory Automated Export System (AES) Final Rule ......... regulatory resources, procedures & penalties

U.S. Customs Automated Commercial Environment (ACE) At-a Glance .......functionality of the ACE system

U.S. Customs - Importation of Commercial Samples

U.S. Customs Quota Book Transmittals (QBTs)

U.S. Customs Publication -- U.S. Rules of Origin, Preferential & Non-Preferential Rules of Origin.

U.S. National Traffic Scorecard

U.S. Record of Vessel in Foreign Trade Entrances ........weekly electronic query report

U.S. Priority Trade Issues

U.S. Trade Program Areas

 

PRODUCTS>>>>>>>>>

China Airport Industry Report 2008

Real-Time Maritime Tracking

Ship My Vehicle

 

EVENTS>>>>>>>>>

ExpoDataBase

Transport Events

Trade Shows, Exhibitions, Conferences & Business Events Worldwide

World Trade Organization Events

1st Journal of Commerce Container Transport Investment Conference ....... Jan. 14-15, 2008 in New York City

2nd Int'l Railway Symposium ...... 15-17 Oct., Istanbul, Turkey

4th China 3PL Summit ..... 16-18 June 2008, Shanghai

4th China Int'l Container & Intermodal Transportation Development Forum ......Sept. 5-6, 2008, Renaissance Tianjin TEDA Hotel & Convention Center,Tianjin, China

7th Annual Maritime Security Expo .........18-19 Nov. 2008, Long Beach Convention Center

2008 China Warehousing Annual Conference & Exposition ....... Sept. 23-24 in Beijing

2008 Value Chain and Logistics Outsourcing Exchange ...... May 28, 2008, Phoenician Resort, Scottsdale, Arizona

Annual U.S. Customs and Border Protection Trade Symposium ....... 29 &endash; 31 Oct., 2008, JW Marriott, Washington, D.C.

CargoFacts 2008 ...... 15 Sept. 2008, Loews Miami

FIATA 2008 World Congress .......... 23-26 Sept. 2008, Vancouver, Canada

Greening the Supply Chain Conference ....... June 9-10 in Sacramento, Calif.

Int'l Congress of Maritime Arbitrators ......5 - 9 Oct. 2009, Empire Riverside Hotel, Hamburg

Int'l Freight Week ...... 23-25 Nov. 2008, Abu Dhabi National Exhibition Centre

Logistics Expo Panama ........15-16 Oct. 2008, Panama

MARAD Approved Maritime Security Awareness Classes

MarineLog 2008 Global Greenship Conference & Expo ....... 16-17 Sept 2008, Washington, DC

Port & Shi[ Int'l India ....... Oct. 23-25 2008, Mumbai

Terminal Operations Conference Europe 2008 .........17-19 June 2008, Amsterdam

Transport & Infrastructure India 2008 .............27-29 November 2008, Mumbai, India

Transport Logistic China ........ 17-19 June 2008, Shanghai New Int'l Expo Centre

 

General Interest>>>>>>>>>

15 Ridiculously Useful Websites

California's Gold

Cholesterol Management .... for all of us

Cockpits of Famous Aircraft

Felon Spy - You Need To Know Who Your Neighbors Are

Food For Film

Global4D ......... a new type of earth globe -- see what the Earth looked like 5 million years ago.

Global 4D Video

Guide to the Auto Industry

Hell's Kitchen - The Game

Home Cooking Movie Food Trivia Game

Hot Sauce Harry's ..... the site you have been looking for

Dr. John Coleman Cries Hoax .......... founder of The Weather Channel, the U.S. national television network, weighs in on the other side of Global Warming

Martindale's The Reference Desk .......... answer every question

Movie Food ......... cinema snacks around the world

OPEC ....... those oil guys who control your life

Physicist Debunks Cellphone Popcorn Viral Videos ...... you will not get cancer

Point Sur Light, CA ....... still in service after 120 years

Ryugyong Hotel ........North Korea Ghost Hotel ..... amazing

Speed Humps

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OUR "E" Section:  The Forwarder/Broker World***

  7. New U.S. Transport Related Legal Cases _____

 

Exxon Shipping Company v. Baker

U.S. Supreme Court

June 25, 2008, No. 07-219, slip op.

A divided U.S. Supreme Court reduced punitive damages that had been leveled against Exxon Shipping Co. as a result of the 1989 Exxon Valdez oil spill -- from US$2.5Bn to about US$500M. Originally a jury had awarded US$5Bn in punitive damages, but it had been cut in half in an earlier Ninth Circuit Court of Appeals decision. With Justice Samuel Alito recusing himself from the case because he owns Exxon-Mobil stock, the court voted 4-3 to remand the case back to the 9th Circuit Court of Appeals with orders that under maritime law punitive damages in the case should not exceed compensatory damages awarded in the case: US$507.5M. Read The Decision

 

The Rice Company (Suisse), S.A. v. Precious Flowers Ltd.

U.S. 5th Circuit Court of Appeals

April 2, 2008

Owner Not Compelled to Arbitrate Cargo Damage Case: The Rice Company wished to ship rice from Louisiana to Togo. It voyage-chartered a vessel from IBN Agrotrading GmbH (IBN), a Germany company, to do so. The vessel was owned by Precious Flowers Limited, a Phillipine company, and was chartered to IBN by an agreement that included a London arbitration clause. During transit, seawater pierced the hatch & damaged the rice. Rice Company brought suit against IBN, the vessel, & Precious Flowers alleging that the damage to the rice occurred due to unseaworthiness of the hatch covers on the vessel. The Rice Company moved to compel arbitration in New York. The District Court (S.D. Tex.) denied the motion to compel arbitration, and the Rice Company appealed. The Court of Appeals looked to 3 contracts in determining that arbitration should not be compelled. Specifically, the Court examined the voyage charter between IBN and The Rice Company, the cargo contract or bill of lading which was part of the voyage charter, and the time charter between IBN and Precious Flowers.The Court found that a New York arbitration agreement in the voyage charter between IBN and The Rice Company might bind IBN, but it did not bind Precious Flowers. Precious Flowers did not sign the voyage charter and, furthermore, Precious Flowers had specifically agreed to London arbitration in its time charter with IBN. The Court rejected an argument by Rice Company that Precious Flowers must arbitrate in New York because maritime law forbids re-litigation of issues if they were decided in previous litigation. The Court reasoned that this was an in rem doctrine that exists only for maritime liens over ships, and does not confer jurisdiction over the owner. Also, acceptance of this reasoning would force owners into arbitrations to which they never agreed. Therefore, the Court of Appeals affirmed the holding of the lower court.  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)

Maria Payne (Countryman & McDaniel)

Christoph Whaner, Esq. (Countryman & McDaniel)

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