Industry News
From The Cargo Letter


Air & Ocean Freight Forwarder - Customs Broker News
20 September 1996

Good Friday Morning from our Observation Deck...... overlooking the officially designated "Cargo City" area and....... Runway 25-Right at Los Angeles International Airport.

Just returned from our next trip to the Far East, we are even more convinced that freight forwarder education & communication plays a central role in both the success of our our industry and in relations with overseas customers & agents. Many thanks to our host, President L.S. Kim of Asiana Express of Los Angles & Seuol, a leader in Asian air & ocean forwarding (LAX/SEA/JFK/BUE,et al).

Some of our articles are longer than usual in this edition, but we think the information helpful, especially if you are to understand new industry developments where the powerful internet tool is concerned. Also, our article from "Down Under" Correspondent Robert Conway, Esq. may save you claim $s in S.E. Asia.

Contribute your knowledge & experiences to The Cargo Letter. McD

INDEX to The Cargo Letter:

  1. OUR "A" Section: FF World Trade, Financial & Inland News
  2. Freight Forwarder Trade Briefs
    OUR "B" Section: FF World Air News
  3. New Newsgroup For The Air Freight Industry
  4. FF World Air Briefs
    OUR "C" Section: FF World Ocean News
  5. FF World Ocean Briefs
    OUR "D" Section: The Forwarder/Broker World
  6. S.E. Asia Maritime Laws For Freight Forwarders OUR "E" Section: FF in Cyberspace


OUR "A" Section: FF World Trade, Financial & Inland News

1. Freight Forwarder Trade Briefs

Somber Transit Times For our The Cargo Letter Correspondent Pete Bower of Freight World, South Africa's only magazine on freight management, sadly reports that road & rail infrastructure north of SA continues to deteriorate to the point of major world concern. The Zimbabwe system, for example remains serviceable; Zambia is a bit worse; Southern Zaire impossible; Malawi almost unusable.....with Tanzania dreadful and Kenya not much better. Regional strife has all but eliminated reliable service for Rwanda and Burundi. These problems also apply to telecommunications, which are required by railway authorities, for example, to transfer traffic information. Our Correspondent Pete Bower will be providing a full report to The Cargo Letter. If this area of the world is to have must have transportation. While the world remains focused on the welfare of people of in this area.......we all know that transport & trade hold a key to the future.

Circle To Launch Internet Global Tracing &Tracking___and is currently testing its system with selected clients for estimated roll-out later this month.........with access from it's internet web site at . Circle International explains that it was the first Int'l freight forwarder to have a presence on the internet. According to Sr. V.P. Kim Wertheimer, "We have highly developed integrated systems in place utilizing EDI connections with customers to manage inventory, process customs documentation, track shipments, and provide detailed management reports. Utilizing the internet to facilitate shipment tracking will not replace these systems, but will give customers broader access to manage their international shipments." Wertheimer continued, "Because the internet is accessible with limited investment, it is cost efficient, effective, easy, and it works on any hardware standard a customer is currently using. Circle's tracking & tracing tools will be much more extensive than that offered by the express delivery companies." Randy Merrill, Mgr. of Information Services explains, "It will include flight info, shipping documentation details, estimated and confirmed arrival & departure times, even shipment information such as weight, piece count, and shipment description. Everything our customer is concerned about. It's all there, and in addition, our tracking and tracing will be done in real time, with the information made available at every point of the shipping process due to direct EDI links with carriers and our information network of over 350 offices worldwide." McD.........Technology & service continue to define forwarder competition.

APL Also Launches Customer Freight Tracking...... ....and has announced its "second generation" World Wide Web (WWW) Page...... organized to follow the typical transportation order cycle, including an interactive review of vessel and stacktrain schedules; requesting a booking; printing a bill of lading and tracing a shipment to its destination. APL has added express log-on options that provide faster access to tracing, booking and other transactions. Customers can enter and trace multiple shipments with a single query, 24 hours every day. APL's Website may be especially helpful on quota cargo that has been cleared on the U.S. West Coast and is in transit. North American export customers now can now obtain negotiable bills B/Ls by printing them out on their office printer (security steps are in effect), instead of relying on overnight courier services. As a continuing The Cargo Letter theme, we remind YOU that customers such as garment importer Polo are using this service certain carriers (mainly air) continue to move toward the retail market......the freight forward's market. Consider.

Expeditors Makes Clean EU Rotterdam, the Netherlands and Vienna & Salzburg, Austria earn ISO 9002 certification, making all 24 of its Western European offices accredited by Bureau Veritas Quality International.

Philippines Has A Happy Face.........with foreign trade growing by 23% to US$29.7B since Jan '96. An area to watch. Major increase area........ with Japan.

Professional Help Wanted Countryman & McDaniel Law Offices LAX, a 5 to 8+ year experienced CA & Federal litigation attorney to head transport litigation department. Reply to........


OUR "B" Section: FF World Air News

2. New Newsgroup For The Air Freight Industry

The internet now has a new "Usenet" newsgroup for the air cargo & freight forwarding industry. You may know that a "newsgroup" is a sort of internet information exchange where members post messages and questions for general interest and discussion within the group. As posts are made to the group a copy is routed to your email address.....for those members lacking WWW or Usenet access.

While the air industry has enjoyed wide exposure on the internet, this has been limited to discussion of recreational flight & general passenger airline information. With air cargo making up more than 35% of the total value of all goods shipped anywhere in the world, it was clear that a newsgroup dedicated to the air cargo & freight forwarding industry was needed to address........ 1.) cargo operations of domestic & international air carriers, 2.) interests of small package air freight companies, and 3.) air related interests of the freight forwarding community . This month Michal Douglas, Jim Powell, Martin Brennan and loyal supporters filled an important industry need by establishing the "m.t.a-i.c. mailing list" As a founding member of the new group, The Cargo Letter is pleased to report that you will receive a variety of practical tips regarding carriers, routes, haz mat, regs, etc. You are also able to pose questions and have them answered by leading experts in our field.

The CHARTER of is what our industry has been waiting for. Individuals & companies may request and contribute information & comments on the status of the air cargo industry. Exportation questions are addressed for the beginner as well as specific inquires by shippers. (i.e. "Who supplies ground handling in Merida, Mexico?" or "How do I clear customs in Australia?") Shared experiences of both the air cargo & forwarding community provide immensely helpful information to each other in regard to the do's and don'ts of dealing with unfamiliar airports, cultures, regulations, companies, procedures, and governments. Discussions of a political/violent/inflammatory/abusive nature.....or blatant advertisements, illegal rate discussions, or overblown press releases.......are not allowed.

The group is moderated by air cargo & freight forwarding experts to eliminate repetitive, redundant, illegal, invalid, and inappropriate messages. There are currently over 800 members on the m.t.a-i.c. list comprised of air cargo carriers, forwarders & shippers on-line. For more info, send e-mail to moderator Michal Douglas , or visit the official WWW Home Page at

3. FF World Air Briefs

NCBFAA Is Working For YOU..............with FAA officials to eliminate the shipper certification/security requirements on grounds that they are meaningless and impossibly burdensome. Support our NCBFAA......and write to your Congressman........NOW.

1997 Aircargo Internet Symposium & Exhibition?...........parties interested in suggesting topics , moderating sessions, presenting audio visual presentations or attending should contact Martin Brennan at

Emery Worldwide Goes it replaced the agent Saint Germain and set up its own Buenos Aires office at a cost of US$2M. With an additional office in Chile, its Latin American business generates a turnover of US$86M.

Intra-Asia Moves...........our sources suggest considering Kitty Hawk Air Cargo at DFW for intra-Asia cargo contracts. B727s in addition to domestic opns.


OUR "C" Section: FF World Ocean News

4. FF World Ocean Briefs

Industry Ponders P & O - Nedlloyd other lines worry that uncertainty over the future of the main container consortia may further depress freight rates. None of the other lines are said to have known anything about the planned merger......before it was announced......which will create the new carrier .........operating 112 ships and 540,000 TEUs, and with 224,000 slots......the most standing slots. The new line is predicted at 2.3 million TEUs annually, making it 3rd in the world along with Sea-Land Service Inc. P&O-Nedlloyd will have 8,000 employees, with 1,400 jobs being eventually cut. Royal Nedlloyd will pay US$175 million to P&O Containers to equalize share holding. P&O, in the Grand Alliance, and Nedlloyd, in the Global Alliance, say they will honor existing commitments but few in the industry doubt the merger will eventually lead to another major shake-up in container rates. [Note: This story was the subject of our note to the special bulletin members of The Cargo Letter within an hour of the announcement]

Taiwan Reconsiders...........and is said to soon approve movement of foreign vessels between Chinese & Taiwan ports. The approval is said motivated by interest in protecting the Taiwan market and was prompted when foreign flag vessels such as from France and Germany began to by-pass Taiwan ports. U.S. operators had similar plans.

Iraq Problem Sends No tensions with Iraq are said to pose little concern to shippers in the Gulf, one of the world's busiest waterways. Industry officials say insurance risk premiums are unchanged

TWRA To Allow FAK the 11 shipping lines of the Trans-Pacific Westbound Rate Agreement (TWRA) are said to allow discounts under their service contract program to shippers of "Freight All Kinds" (FAK) cargo in a bid to attract mixed cargo. TWRA's managing director says the lines acted because FAK cargo is an important growth segment of the westbound market. He says, "We want to attract & retain a major share of that small shipment business''.

Dry Canals For The Americas? the possible opening of rail/road links in Nicaragua & Honduras has renewed concern for the future of the 100-years old Panama Canal. Nicaragua has contracted an Int'l consortium to carry out a feasibility study for the construction of a new railroad network. Honduras is studying building a similar project between Puerto Castilla, on the Atlantic, and Puerto San Lorenzo, on the Pacific, with costs estimated to be US$300M less than the Nicaraguan project. With CTNR traffic representing less than 5% of cargo through the Panama Canal every year, or only 4% of all commodities that are transported by sea worldwide .......experts doubt that any new world transport route should be expected. Panama points out that since 1850 it has had a railroad (turned over in concession last month to a Hong Kong company) that unites both oceans in 4 hours less than that projected for the Nicaragua system. [The canal and the six U.S. military bases in the Canal Zone will pass into Panamanian jurisdiction on Dec. 31, 1999, according to the treaties signed in 1977.]


OUR "D" Section: The Forwarder/Broker World

5. S.E. Asia Maritime Laws For Freight Forwarders

-- by Robert Conway, Esq.
with Michael McDaniel for The Cargo Letter

SYDNEY 19 Sept -- As transport links between South East Asia and the world have grown dramatically, importers and exporters are faced with a baffling mix of different languages, business cultures and legal systems. Facing these obstacles can often be the most significant challenge for a transport & trade organization.

Not surprisingly, laws applicable to ocean moves vary from by country. This article will highlight some of the more important points to bear in mind for YOUR operations in S. E. Asia. Traders & their transportation providers need to know what law applies, how the courts deal with B/L clauses, which courts can hear disputes and what limitations are provided for damage to cargo. Although shipments to South East Asia are generally governed by the law of the exporting country, shipments from S.E. Asia are generally governed by local law.

Conclusion: Freight forwarders & shippers dealing with S.E. Asia face several very different legal systems in the region, each reflecting the level of economic development and history of that country. It is clear that, to succeed, YOU must be fully prepared. Part of that preparation clearly includes a careful study & analysis of markets & products, and an understanding of the legal aspects of trade......particularly concerning YOUR exposure for damage to cargo. It is not only the manner in which a legal system approaches problems, but the issues a legal system believes important which determine how cases and disputes will be resolved. This can lead to results and decisions very different to those expected.......and often to YOUR detriment. Absent an understanding of the legal systems for these most significant regional trading partners.......there can be exposure to potentially more problems than YOU realize.

[Robert Conway, Esq. is a partner in the firm of Conway & O'Reilly, transportation attorneys at Sydney, Australia... ]


OUR "E" Section: FF in Cyberspace

We are limited by space in this edition, but suggest you visit................

Asian Business (A 30 year old Asian business weekly magazine aimed at Sr. level executives)

Port Authority of Thessaloniki (an important port in S.E. Europe) [an error occurred while processing this directive]