Law Offices of Countryman & McDaniel
THE CARGO LETTER 
Air & Ocean Logistics - Customs Broker News
30 July 2011
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
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Michael S. McDaniel, Editor, Countryman & McDaniel, forwarder/broker, hull
& machinery 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 Air 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 U.S. Transport Related Legal Cases ________
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder
Trade Briefs _____________
***United States Steps Back ..... as export products & service growth
declined 0.5% to US$174.9Bn in May following a robust 16.4% growth in the first
5 months of 2011 year on year. Imports increased 2.6% to US$225.1Bn, increasing
the trade deficit by 15.1% month on month to US$50.2 billion in May. U.S.
Commerce Secretary Gary Locke said May's slip comes after a strong 5 month
growth, which shows "we're making progress, but still have a way to
Imports Down ...... as
shipment volume for June decreased 7.4% from the same month in 2010, trade
intelligence firm Zepol Corp. said July 13. The
analyst said the volume, measured in TEUs, also
decreased 4.6% from the previous month. The total number of U.S.-bound
shipments decreased more than 6 % from June 2010. Year to date, U.S. import volume is up 4.8%. Zepol said
the overall June decrease was largely due to a nearly 6% decrease in incoming
shipments from Asia. China played a large part in this, with a 5.8% decrease. Japan, however, showed a 2.5% increase in incoming shipments. Similar
to Asia, shipments from Central America and South America were down 4.9% and 7.6% decrease,
Return To North America .... as manufacturers are showing growing
interest in relocating production in Mexico from Asia or opening new factories
or sourcing there, said a new survey from consulting firm AlixPartners.
The survey of 80, mostly large, companies found 9% of companies have already
relocated production from Asia back to the Americas, so-called "near-shoring." Another 33% are thinking of
near-shoring in the next 3 years. The survey found 63% of respondents believe Mexico is the most attractive location for near-shoring operations,
followed by 19% who believe the United States is most attractive. Thirty percent of the survey respondents
ranked lower freight cost as the most attractive aspect of near-shoring, while
25% said it was speed-to-market. Eighteen percent said lower inventory cost was
paramount, 16% cited time-zone advantages, such as easier management
coordination, and 11% referenced improved cultural alignment with North
Infrastructure Expansion Consequences ......
as coal import volumes were down almost 12% in the first half of 2011 compared
to the same period of last year, with a total 70.5m tons taken in by the
commodity-hungry Asian country between January and June.
Stand Off ...... as trade
tensions are flaring up again, despite a verbal agreement made between the two trade ministries early last month, as conflicting reports
are emerging about whether products from both countries are being detained at
their shared border. On 2 June, Argentine Industry Minister Deborah Giorgi and her Brazilian counterpart Fernando Pimentel came
to a goodwill understanding to make trade restrictions more flexible and to
approve entry licenses within the WTO standard of 60 days. However, Argentine
newspaper Clarín reports the Argentine association of
automobile manufacturers (Adefa) is saying 40,000
Argentine vehicles are reportedly stalled at Brazilian customs. There,
according to Adefa, "made in Argentina" cars are backed up for miles awaiting permission from Brasilia to cross the
border. Meanwhile Brazilian textile & footwear exporters are lodging
complaints over Argentine bureaucratic customs obstructions.
***Border Trucking Debate Far From Over .... as
the United States and Mexico signed a cross-border trucking agreement on July 6, under which
the U.S. will open its roads to Mexican trucks, while Mexico will suspend about US$2Bn in tariffs on U.S. goods. Under the agreement, signed by U.S. Trade Representative Ron Kirk and his Mexican counterpart in Mexico City, Mexico will suspend 50% of its tariffs within ten days, according to a
statement by the U.S. Dept. of Transportation. Mexico will suspend the remainder of the tariffs within 5 days of the
first Mexican trucking company receiving its U.S. operating authority, the statement said. The two countries said
they would issue their first trucking permits in August. Mexico had set retaliatory tariffs on U.S. goods for not allowing its trucks access to U.S. roadways, after the Obama
administration suspended a previous pilot program shortly after President Obama took office in early 2009. Teamsters General President
Jim Hoffa sßaid the program is probably illegal
because it grants permanent operating authority to Mexican trucks after 18
months in the so-called "pilot program" outlined in the proposed rule
published in the Federal Register. Congress has not granted DOT the legal
authority to do so, Hoffa said. Further, DOT would use money from the Highway
Trust Fund to pay for electronic on-board recorders for Mexican trucks. Hoffa
questioned whether DOT can do that legally.
Infrastructure Expansion Consequences ......
as the Ministry of Railways (MOR) was US$294.87Bn in debt at the end of the
first quarter of 2011, causing its asset-liability ratio to reach 58.24%, The
China Daily said. MOR is to issue short-term financing bonds to support
railway construction, purchase of locomotives and capital turnover. This is the
third time the ministry has issued such bonds this year.
Kuehne + Nagel Claims No. 1 ..... as
it was the world's biggest forwarder last year, in terms of combined air and
sea freight revenues, according to the findings by the UK's Transport Intelligence (Ti) in its latest report Global Freight
Forwarding 2011. Then came Deutsche Post's DHL in 2nd
place, with the two front runners being much bigger than those in third and
fourth place - DB Schenker and Panalpina.
The top 10 forwarders account for 44% of the total market - gradually
increasing their share from 40% in 2006, as a result of the largest companies
crowding out smaller ones.
Tapped UPS Supply Chain Solutions For Pharmacuticals ...... as to manage its worldwide
healthcare supply chain. The logistics firm has been managing the North
American distribution, warehousing and transportation needs of the giant
healthcare company since 2003. UPS will now offer the same services in Asia and Latin American markets,
providing transportation services in Europe. UPS is currently establishing distribution centers in China and Brazil to help spread Merck's products in those markets.
***Agility & U.S. Remain Locked In Combat ...... as the 11th Circuit
Court of Appeals sided with the U.S. Justice Dept. last week in a procedural
ruling in the alleged fraud case against the Kuwaiti logistics firm Agility.
Agility and an affiliated company received US$7.7Bn from prime vendor food
contracts with the United States related to the delivery of food and warehousing in the Middle East. In an
ongoing criminal case, the 11th Circuit declined Agility's request for a review
of a U.S. District Court ruling the Justice Department lawfully served the
company with a notice of summons and indictment. Agility said it
"continues to believe the case involves a civil contract dispute and
should not be a criminal matter. Agility's prices, suppliers and business
practices were disclosed to, approved and routinely reviewed by, its U.S. government customer."
Nagel's Brazil Play .... as it has acquired the shares of Brazil's Grupo Eichenberg
for an undisclosed sum to provide integrated door-to-door logistics solutions
and to speed up expansion in Brazil. Based in Porto Alegre, Grupo Eichenberg
is a family business with 75 years of history. It provides integrated logistics
solutions and employs 700 in 14 locations.
Logistics In Major Asia Moved ..... as
it has acquired a controlling interest in Chinese companies Shanghai Wisdom
Group and Shanghai Huicheng Logistics. Kerry said the
deals would strengthen its presence in the ocean freight & 3rd-party
logistics sectors. Wisdom is a Shanghai-based non-vessel-operating common
carrier (NVOCC) that Kerry said enjoys a prominent position in the local sea
freight business and ranks in the top 3 companies operating out of Shanghai serving the
Japan & Southeast Asia trade routes.
Forwarding Healthy? ...... as for the 2nd year in a row, Phoenix Int.l
Freight Services, Ltd. has been selected as one of the "Healthiest
Companies in America" by Interactive Health Solutions (IHS), the leading provider
of employee health management programs. Phoenix International was one of
just 44 companies nationwide honored with the award for 2010. The
companies honored significantly improved employee health while reducing
healthcare costs through employee participation in a prevention-based health
program in the workplace. Phoenix Int'l is the largest privately-owned
international freight forwarder, NVOCC and Customs broker headquartered in North America. The Healthiest
Companies in America for 2010 rankings are based on a series of clinical evaluations
of employee participants across an index of key health indicators designed by
Interactive Health Solutions.
***First Overseas Station .... as
Pilot Freight Services will open an office in Amsterdam as the U.S. freight forwarder looks to build on strong growth in the
international arena with its first full office overseas. The expansion follows
a record financial year for the privately-held Lima, Pa.-based forwarder, which
reported US$423.5M in revenue last year, a 31 % improvement over the year
before that was helped by a 60% gain in international business.
Whole Logisitics System Seems ToRun in This Direction .... as Americans love to set records of all
kinds, some of them distinctly off the wall. A good case in point is
Charles Creighton and James Hargis of Maplewood, New Jersey, this month
in 1930, they got in their 1929 Ford Model A roadster
and started off on a run across America — backing up all the way. They arrived in Los Angeles on August
13, 3,340 miles later, without ever having turned off the engine of their car.
Presumably, both drivers had sore necks from looking over their shoulders for
so many miles of driving in reverse. In 1930, there were just over 3 million
miles of roads in the U.S. Now, that number is 4 million.
Your Truck Driver .....
as today they are taken for granted & used by most
truck drivers. The first seat belt law in the U.S. was signed this month in 1955 in Illinois, and went
into effect a year later. The first American cars to have lap seat belts
installed as standard equipment were 1964 Studebakers and three-point belts
were introduced by Ford in 1970. Three-point belts were required on all
cars by federal law beginning with 1974 models. In 1980, over 53,000 people
were killed in automobile accidents. The most recent figures are down to
39,000, even though the population has grown considerably. The drivers may not
believe you, but tell them.
Story of The Month .....
as police say a woman was caught trying to sneak her
common-law-husband out of a Mexican prison in a suitcase following a conjugal visit.
A spokesman for police in the Caribbean state of Quintana Roo says staff at the
prison in Chetumal noticed the woman seemed nervous
and was pulling a black, wheeled suitcase that looked bulky. Spokesman Gerardo
Campos said July 4 that prison guards checked the bag of 19-year-old Maria del
Mar Arjona and found inmate Juan Ramirez Tijerina curled up inside in the fetal position. Ramirez is
serving a 20-year sentence for a 2007 conviction for illegal weapons
possession. Arjona was arrested and charges are
pending. Walmart Mexico refused the luggage return.
History of Cargo Theft ....
as the first of what would be a spate of train
robberies in the U.S. occurred this month in 1873, pulled off by a gang headed by Jesse
James and his brother Frank. Their target was a train of the Chicago, Rock Island and Pacific
Railroad as it passed a spot near Adair, Iowa. The gang found
only US$2,000 in the express car's safe, so they methodically robbed the
frightened passengers of another US$100. After a number of train & bank
robberies, Jesse James was killed in 1882 and the last train robbery in the
nation occurred around 1900. Today, only the venue has changed. There are still
some 360,000 robberies in the U.S., the largest number occur on the nation's streets or highways as
a major impact upon commercial trucking. The main cause?
Usually management oversight. Consult Countryman &
McDaniel for development of proper security & risk management plans.
2. The Cargo Letter Financial Page ____________
The Industry At A Glance
**AMR (American Airlines) DOWN with a net loss of US$286M during the 2nd quarter of 2011.
Compared to its US$11M net loss for 2nd quarter of 2010, these numbers are
of India. UP as 1st quarter net profit grew
21% from a year earlier to US$52M, driven by higher earnings from core
**CSX Corp. UP with 2nd quarter profit of
US$506M, 28% more than the US$414 M earned in the same 2010 period.
**Forward Air Corp. UP as 2nd quarter profit rose 51% year on year to US$12M on the back
of growth at its core airport-to-airport cargo business.
Hunt Transport Services. UP with a record 2nd-quarter
earnings, as its net income jumped 26% to US$65.7M, or 53 cents per share.
**Kansas City Southern (smallest of North America's Class I
railroads) UP with a profit leap of 104% in
the 2nd quarter from a year earlier to US$70.7M.
**Kuehne + Nagel Group. UP with net profit of US$382M in
the first half of the year, 11M more than in the first half of 2010.
**Landstar System. UP as 2nd-quarter net income rose to
US$29.6M, or 62 cents a share, from US$24.4M, or 49 cents, a year ago.
**Pilot Freight Services. UP with revenue of US$112.5M for
the second quarter, ending June 30, 2011, up 18.5M over the same period in 2010.
Railroad. UP with a record profit of US$785M
in 2nd quarter, a 10% year-over-year increase, as strong pricing offset modest
freight traffic growth & US$14M in spending to fight floods.
**United Parcel Service (UPS) UP net with profits of US$1.7Bn in
the 2nd quarter of 2011, up 26% year on year from US$854M.
**Werner Enterprises. UP as net profit grew 31%
year-over-year to US$27.5M as revenue rose 11% to US$515.9M in 2nd
**YRC Worldwide. IMPROVED with a US$39M loss for 2nd
quarter, as revenue grew 12.3% to US$1.3Bn.
OUR "B" Section: FF World Air News***
3. Freight Forwarder World Air Briefs __________
***Sale of The Century ..... as American Airlines will buy 460 narrow-body
aircraft — 200 from its long-time supplier Boeing and 260 from competitor
Airbus — as part of its giant fleet overhaul. The order is somewhat of a shift
for American, which hasn't ordered planes from Airbus in a few decades. Orders
of historic proportion, these planes will be delivered from 2013 to 2022 and
represent a push for fuel efficiency and modernization. Under the purchase
agreements, American has the right to procure an additional 465 aircraft
through 2025. The U.S. carrier will also benefit from roughly US$13Bn of
manufacturer-provided financing via lease transactions, which cover the first
230 deliveries. In addition to being the largest order in aviation history, the
fact that American partnered with European aircraft manufacturer Airbus is also
historic. With 260 aircraft in the A320 family on order, American has the
flexibility to obtain A319s, A320s and A321s, 130 of which feature the
manufacturer's New Engine Option (neo). NOTE: On the same day the news broke
about the historic purchase order, AMR announced it experienced a net loss of
US$286M during the second quarter of 2011. Compared to its US$11M net loss for
2nd quarter of 2010, these numbers are staggering.
Called "Fragile" ......
as research from the Int'l Air Transport Assn. (IATA) indicated that airfreight
volumes increased slightly in May, although numbers were significantly lower
than 2010 averages. To IATA, this trend speaks volumes about the current state
of the global economy. Citing the widespread political unrest in the Middle East and the European
currency crisis, IATA Director General Emeritus Giovanni Bisignani
called the aviation industry "very fragile." Nevertheless, he said
that May numbers showed some promise. More specifically, he explained
"freight volumes improved by 1.2% over April and passenger volumes were up
by 1.8%. These will help to alleviate some of the pressure on profits from
continued high fuel prices." Still, cargo tonnage couldn't compete with
May 2010 numbers. Dropping 4% from last year, airfreight growth was 3.5% lower
than IATA's projection of 5.5%. In fact, IATA said,
"while the continued expansion of world trade at
around 6% annually could lend support to accelerated freight growth in the
second half of 2011, the performance so far this year has been lower than
***Will The EU Tax Carbon Output? .... as edict
from the European Union (EU) focused on emissions reduction is drawing the ire
of the U.S. Congress and the air cargo industry. Under its so-called Emissions
Trading Scheme (ETS), the EU is calling all airlines to pay taxes to the EU as
part of a "cap & trade" for carbon allowances in an effort to
reduce air emissions created as a result of their flights in EU airspace.
The U.S. House and Transportation Infrastructure Committee made its opposition
to the ETS clear, explaining it has no intention of participating in this
program. This must be stopped.
Winner In Airline Employment ....
as it grew 2.15% in May year on year on the passenger
& cargo side, with freight operator Atlas Air showing the highest increase
in hiring at 15%, according to Bureau of Transportation Statistics (BTS). The
highest recruitment increase following Atlas Air was passenger carrier JetBlue Airways of 6.17% followed by Delta's increase of
4,034 workers, an increase of 5.3%.
Goes Overseas - At Last ..... as
the long-delayed miracle aircraft completed its maiden trans-Pacific
journey and landed in Japan, where the more fuel-efficient jet will undergo testing this
month with All Nippon Airways in preparation for its first
commercial launch. The "Dreamliner"
touched down at Tokyo's Haneda Airport from Seattle early July 3 to applause and a white "Welcome to Japan" banner held by flight attendants and workers. Two fire
trucks shot out celebratory arches of water as the aircraft approached
the hangar. ANA has ordered 55 787s. Qantas & United Continental
Holdings Inc. have each ordered 50, and Japan Airlines has ordered 35. Rival
Airbus' competitor with the 787, the A350, is scheduled to enter service with
Qatar Airways in 2013. Airbus has racked up nearly 600 orders for the new
jetliner, which is also made mainly of carbon-fiber polymers.
Damage Limits For ULDs From IATA ....... as in the course of daily
operations each Unit Load Device (ULD) needs to be checked against its
damage limits prior to loading aboard an aircraft. In order to ensure easy
access to the appropriate damage limit information and enable efficient and effective
ULD inspection in the field, it was agreed by the IATA ULD Panel (ULDP) and
adopted by the Cargo Services Conference (CSC), that the physical attachment of
the ULD Operational Damage Limits Notice (ODLN) will become mandatory for all
NEW ULDs as of 1 Oct. 2011.
The ODLNs to be used for ULDs
***Schenker Kills BAX Global ......
as it will drop the former BAX Global network, shutter Toledo air hub. DB Schenker said July 22 it will shut down the U.S. domestic air cargo network operated for years by BAX Global,
eliminating the last scheduled airline business in the country dedicated to the
heavy freight market. Germany-based DB Schenker,
which brought the business and rebranded it DB Schenker USA, said it would operate in the United States entirely as a forwarder under "a non-fixed asset model."
The company gave no date for the action, but said it will lay off about 700
workers at the airline's Toledo, Ohio, hub and ground 20 aircraft DB Schenker
has operated for its own shipper customers and as common carriage for
forwarders. BAX Global was turning 22 flights and 1.2 million pounds of cargo a
night at the Toledo facility. Those transactional customers include forwarders that
have used DBSchenker's freighter capacity in North America, and they now will
have to depend on passenger airline belly space and the spare wholesale
capacity on FedEx and UPS aircraft. With almost US$3Bn in revenue, over 200
locations and in excess of 10,000 employees, DB Schenker
is one of the leading logistics providers in the Americas.
***Kuehne + Nagel More Perishable .... as
it has expanded its perishable transportation & logistics network by buying
J. van de Put Fresh Cargo Handling of Amsterdam, a Dutch
perishable goods handling agent, for an undisclosed sum. The Dutch company,
located at Amsterdam Airport Schiphol, handles
logistics and customs processes for import and export shipments. J. van de Put,
a family-owned business, has specialized in handling perishable airfreight
cargo, such as flowers, fruits & vegetables, since it was founded in 1976.
Cargo Lightens The Load - Saves $$..... as is phasing in lightweight plastic freight containers the
airline says will cut its fuel consumption and reduce carbon dioxide emissions.
The plastic containers are up to 15% lighter than the traditional aluminum ones
and will require less maintenance, the German carrier said. Lufthansa said it
will start introducing the new containers in the fall and replace a total of
5,000 aluminum containers by 2015. Lufthansa said the switch to plastic
containers will reduce its fuel consumption by about 2,180 tons a year and cut
annual CO2 emissions by 6,867 tons.
To Our Last Anouncement -- The Pacific Ocean Is Still
Visible On Both Sides of The Aircraft ......
as Australian flag carrier Qantas has warned the harassing tactics can be
expected from members of the Australian and Int'l Pilots Assn. (AIPA) on
long-haul flights including making union announcements over in-flight public
address systems. Qantas is assessing the implications of possible work
stoppages and will write to the pilots' union to seek clarification, said a
Qantas statement. "At this stage we don't expect any flight delays or
cancellations," said a spokesman. But the union, which wants to ban
foreign pilots flying Qantas or Qantas-owned aircraft, says it will focus on
raising public awareness and not disrupting flights.
***Selling Your Goods At Unpronounceable Places ...... as India's Central Bureau of Investigation (CBI) has broken a smuggling
ring allegedly run by two Indian Revenue Service officers (IRS) at Thiruvananthapuram airport in a scheme that sold imported
goods as unclaimed baggage. IRS joint commissioner Sofia Joy, assistant
commissioner RS Rosechandran, superintendents Shyam Sunder, MP Hari, Suresh,
Michael, central excise inspector Shiv Kumar Singh
and clearing agent Sugandhan have been charged with
illegal import of goods for sale in Kerala as
unaccompanied baggage, said CBI spokeswoman Dharini Mishra. The alleged conspiracy was revealed when CBI
detectives intercepted four mini-vans containing "unclaimed" baggage
being taken out of air cargo complex for sale in the open market in Kerala, reported the Times of India, adding that they were
allegedly cleared by customs officials. The CBI conducted searches at 7
locations, which led to recovery of incriminating documents that showed
payments made to the government officials by the clearing agents. Still another reason to secure quality marine cargo insurance.
***Just Fly The Plane .... as
U.S. Federal Aviation Administration (FAA) wants FedEx fined US$689,800 for
allegedly not telling pilots they were carrying hazardous cargo in 2009. The
FAA has sent FedEx enforcement letters detailing the allegations, and the
company has 30 days to respond, reports Newark's Journal of
Commerce. The agency alleged that in 89 instances from June 13 to Sept., 2009,
FedEx "failed to provide pilots-in-command with complete, accurate
information on the nature, quantity and weight of hazardous materials loaded on
***I Love You - We're Divorced! ......
as in a case involving Continental Airlines, a federal
appeals court says benefit administrators don't have the power to decide
whether employees' divorces are real or fake. Continental sued 9 of its pilots,
claiming they got "sham" divorces so their ex-spouses could tap their
lump-sum pensions while they still worked for the airline - then remarried the
same partners. The 5th U.S. Circuit Court of Appeals on July 18 upheld a
lower-court ruling that employers can't consider or investigate why employees
get divorced or whether the divorce is genuine. The appeals court dismissed
Continental's 2009 lawsuit, which was filed in federal district court in Houston. A
Continental spokeswoman said the airline was reviewing the ruling before
deciding its next step. The airline, now owned by United Continental Holdings
Inc., had said it paid out US$10M to US$11M in pension distributions pilots had
assigned to their spouses. In a footnote, the appeals court said a
retirement plan administrator might be able to recover a pension payment if a
court ruled a divorce was a sham, but that didn't happen in the Continental
***Volumes >>> Air France-KLM's cargo traffic fell 2.8% in June from a year ago. >>> British Airways & Iberia, now together as the Int'l Airline Group, boosted cargo revenue
7.5% in June from a year ago. >>> Cathay Pacific & Dragonair posted a year on year drop of
9.1% in cargo & mail carried in June to 134,980 tons, while the load factor
was down 8.4% to 67%. >>> Frankfurt Airport (FRA) posted a 6.4% year-on-year decline in air cargo volume in
June to 180,000 tons, attributed an "extraordinarily strong cargo volume
increase the previous year". >>> Lufthansa Cargo has posted a
year-on-year 14.8% increase in throughput to 953,830 tons in the first half of
2011. >>>Singapore's Changi Int'l Airport handled 908,700 tons of cargo in the first 6 months of the year,
an increase of 3.3% over the same period last year. >>> Northwest China's Yinchuan Hedong Airport posted a 22.3% cargo growth to more
than million tons in the first 6 months and is now in China's top 50 airports.
***UPS Bearish On Alaska ..... as
crewmembers got a taste of northern exposure on June 27 when they moved a
60-pound polar bear cub from the Alaska Zoo to the Louisville Zoo in Kentucky. Utilizing a
Boeing 747-400 converted freighter, the UPS team worked with various animal
experts to overcome the logistical challenges of transporting the fragile cub,
named Qannik. UPS got involved in Operation Snowflake
— a title derived from the Inupiat meaning of "Qannik"
— after the Louisville Zoo approached them. Although 5-month-old Qannik had taken up temporary residence at the Alaska Zoo
after being discovered on the state's North Slope in April, the cub needed to be moved. Fortunately, Louisville
Zoo, which recently opened a polar bear habitat, offered Qannik
the ideal location to flourish. The issue was getting her there. Not that this
proved to be an insurmountable task, maintains UPS Airlines' Jackie Blair.
"While UPS is not normally in the business of shipping wildlife, we have
made some notable exceptions in the past," Blair explained. For instance,
"we shipped Keiko the killer whale — star of the 'Free Willy' movies — on
two separate occasions as he was freed into the ocean. And we have shipped
whale sharks for the Georgia Aquarium, beluga whales and a panda for the
Bullet Holes Before Take-Off ..... as
all-cargo carrier Cargolux has grounded a Boeing
747-400 freighter after maintenance staff detected a bullet hole in its
fuselage. The Luxembourg-based airline said the hole was found during a
maintenance A-check after it returned from a charter flight to West Africa. The aircraft flew
July 4, from Luxembourg to Abidjan, Ivory Coast, then Accra, Ghana, and on to Abuja, Nigeria, before returning to its home base on July 5. Cargolux
is Europe's largest all-cargo carrier with a fleet of 16 747-400
***Fly Half The
Way On HBA .....
as another of its planes crashed in a thunderstorm as
it was attempting to land in the Congo on July 8, killing at least 48 people, and leaving a dozen or
more buried in the wreckage. 53 passengers survived. "I confirm the crash
of one of our planes," said Stavros Papaioannou, the chairman & CEO of Hewa
Bora Airways (HBA) told The Associated Press by
telephone. "There are already 46 bodies at the morgue, and another two
that just died in the hospital." He added a
"dozen or more" people were still stuck inside the plane, which was
heading from the giant Central African nation's capital to Kisangani in the country's northeast. Hewa Bora, which means "Fresh Air" in Swahili, has a
history of crashes. In April 2008, one of their DC-9s rammed into a bustling
market after failing to lift off from Goma's airport,
killing at least 40 people - most of them on the ground. A few months later in
September, a Hewa Bora
plane carrying 17 people went down in inclement weather killing all on board. Very sad.
The Pacific Trade ....
as prosecutors say a group of workers at a Honolulu Int'l Airport cargo company opened & stole parcels being mailed to American Samoa through the U.S. Postal Service. Stanford Salavea,
Maunaloa Aitaoto, Jonathan Taboniar & Louis Felesi
pleaded guilty Thursday in federal court in Honolulu to
conspiracy to steal mail. Prosecutors say the former ramp employees at Pacific
Air Cargo stole between US$10,000 to US$30,000 worth of property, including
cameras & computers. Pacific Air Cargo operates a weekly cargo flight
between Honolulu and Pago Pago. Sentencing is scheduled for November and the men face a maximum
sentence of up to 5 years in prison and a US$250,000 fine.
***OK - How
Do YOU Like It? .....as in a "twist" over complaints of TSA security
officers "groping" airline passengers, a Colorado woman was arrested
at Phoenix's Sky Harbor International Airport for groping a TSA agent at the
security checkpoint. According to court records, a dear 61-year-old woman,
Yukari Mihamae, of Longmont, Colo., grabbed the left
breast of a female TSA agent July 14, at the Terminal 4 checkpoint. Police said
she squeezed & twisted the agent's breast with both hands. TSA staff said Mihamae refused to go through passenger screening and
became argumentative before she squeezed and twisted the agent's breast with
both hands. Police said Mihamae admitted to the crime
and was arrested on a felony count of sexual abuse. However, Maricopa County
Jail officials said Mihamae was released from custody
on July 16. According to court records, Mihamae lives
in Longmont, Colorado and is self-employed. Perhaps we should just concentrate on
OUR "C" Section: FF World Ocean News***
4. FF World Ocean
United State Cargo? ...... as there is new controversy about the granting of waivers to
the Jones Act for ships carrying oil from the Strategic Petroleum Reserve
(SPR), with allegations that oil companies are tailoring their withdrawals to
avoid using U.S. flag ships. The government set off a furor on June 23 when it
announced the issuance of a blanket Jones Act waiver for ships moving oil sold
from SPR. A promotion group for domestic shipping, the American Maritime
Partnership (AMP), issued a statement within hours stating it was
"dumbfounded by President Obama's decision to
disregard the American maritime industry" and the Energy Dept. reversed
itself, removing the notice of the blanket waiver that had been part of the
original notice of sale of oil from the SPR, but said companies could still
apply for waivers.
The Jones Act (Merchant
Marine Act of 1920) Do
You Konw It?:
Attacks Increase - But Not Successful On Armed Ships ..... as
increased assaults on ships 36% to 266 attacks in the 1st half of 2011, but
successful seizures dropped 28% year on year to 21. Their lack of success was
attributed to carriers' being better prepared or armed, as well as improved
patrolling by naval forces. According to data released July 14, 2011, by the Int'l Maritime Bureau, pirate attacks off Somalia and in the Goa/Indian Ocean region climbed
dramatically in the first 6 months of this year. Figures reveal there were 266
attacks on vessels in this period compared with 196 attacks in 2010. "In
the last 6 months, Somali pirates attacked more vessels than ever before and
they're taking higher risks," IMB director, Capt. Pottengal
Mukundan said. They fired on ships for the first time
during the monsoon season last month, he said. Pirates
hijacked 1 in 8 vessels attacked 1 the 1st half of the year, compared with 1 in
4 a year earlier, the report showed. The most recent successful hijacking took
place on April 30th, with 44 further attempted attacks since then, the IMB
said. Somali pirates took 361 sailors hostage and kidnapped 13 in the 1st half
of 2011. As of June 30, Somali pirates were holding 20 ships & 420 crew
members. But throughout this chaos, no armed merchant ship was taken; this
being the main point The Cargo Letter has made since 2007.
Warning ...... as Alphaliner says growth through 2012 will become "more
alarming" with 2013 orders. Four hundred and forty-eight container ships,
with a combined capacity of 2.78 million 20-foot equivalent units are scheduled
for delivery in 2011 and 2012, adding enormous capacity well ahead of growth in
demand, according to market analysts Alphaliner.
"The market fundamentals are looking less favorable compared to last year,
as an overhang of surplus capacity will continue to plague the industry,"
the container industry analysts said. Deliveries will total 213 ships of 1.34
million TEUs in 2011, and 235 vessels of 1.44 million
TEUs in 2012, equating to annual fleet growth of 8.7%
in each year, Alphaliner said in a report on ship
orders. "More alarming," the firm said, is the large capacity
scheduled for delivery in 2013, which so far has reached a record high of 1.73
million TEUs compared with the previous record of
1.57 million TEUs delivered in 2008. The figure could
rise even higher in the new few months as some yards continue to offer
container building slots for 2013 deliveries. "Most carriers continue to
pile up new vessel orders and the order wave does not appear to be coming to an
end any time soon," according to Alphaliner.
Increases Ghost Fleet .......
as the size of the world's idle containership fleet has risen early this month,
mostly because of the redelivery of chartered ships and withdrawal of ocean
liner services. "Ships set free by service closures failed to find new
employment in a market that is significantly weaker, compared to the last two
months. Thus, for the first time since Nov. 2010 the idle fleet increased
notably," said Alphaliner's latest report.
"A total of 74 ships is currently unemployed
compared to 60 ships a fortnight ago. In capacity terms, the idle fleet has
increased over the last two weeks from 75,000 TEU to 95,000 TEU," it said.
Newly unemployed ships are mostly in the 500- to 2,000-TEU range, including six
ships redelivered by YSC Line which has sought court protection in Korea after failing to pay its creditors.
***New U.S. Flag Carrier ..... as the startup carrier American Feeder
Lines' first ship departed Halifax, Nova Scotia, on July 8 to begin a service its backers hope will develop into
a network of routes covering the Atlantic & Gulf coasts. The companty plans a weekly service from Halifax to Portland, Maine, to Boston and back to Halifax. AFL
continues to seek financing for construction of 10 planned ships that would
have nominal capacities of 1,300 TEUs.
Still Champion ..... as Port of Shanghai
continues its upwards trajectory after it overtook Singapore as the world's
busiest container port in 2010, increasing volume 10.5% in the first half year
to 15.3 million TEU, up from 13.8 million TEU in same period of 2010. Singapore handled more than a million less at 14.6 million TEU in the same
period of 2011, an increase year on year of 4.2%. Shanghai's June
volume slowed 5%, while Singapore experienced a slowdown of 3.5% in the same period.
& Slower -- Will The UN Control Ship Design? .....as ships will come to dominate
int'l trade because of conditions imposed by environmental regulations from the
UN's Int'l Maritime Organisation's (IMO) Marine
Environment Protection Committee (MEPC) -- the application schedule of which
China and Brazil oppose. "Ocean carriers will no longer be able to order
what they want, which may, in part, explain why so many orders have recently
been placed," said Matthew Beddow of London's Containerization
Int'l. "The next step for shipping to save the planet will be the
imposition of a carbon tax. The level of the tax could well be linked to how
vessels measure up to their EED [energy efficiency design]," he said.
"Who will be responsible for administering the global measure is
unclear." The subject may well be discussed at the next United Nations
Framework Convention on Climate Change (UNFCC) in Durban at the end of the
year, including the possibility that the IMO may not be involved, he said.
***China Attempts Version of The Jones Act? ........ as the China Ministry of
Transport has announced foreign companies, organizations & individuals will
be prohibited from providing irregularly scheduled maritime cargo transport
across the Taiwan Strait beginning next year, reports Xinhua
News Agency. In a statement announcing the new measures on its website, the
ministry said the direct maritime shipment of goods will be carried out by
enterprises on the Chinese mainland and Taiwan. The move aims to implement an agreement between the Chinese
mainland & Taiwan on direct maritime shipments, according to the statement.
-- Bad As it Can Get On The U.S. Mother River ....... as 2011 has seen the greatest
flooding of the Mississippi River Basin in over 80 years completely shut down
river traffic, displaced thousands of residents and caused what is likely to be
billions in dollars of property damage. Over 6.8 million acres were flooded and
over 10,000 people were forced from their homes during the most significant
flooding since 1927, when over 600,000 people were displaced and about 500
***Example of A
Daily Event ... as the Greek
63,593-ton bulker M/V V Elinakos, chased off a skiff July 12 with 6 heavily armed pirates in the
Gulf of Aden between Yemen and Somalia because of the arrival of Indian navy
frigate and its helicopter gunship. The 3,810-ton displacement missile frigate,
the INS Godavari, received an alert from the Panama-flagged multipurpose vessel,
which was slow-steaming from Singapore to Italy via the Suez when a skiff approached with pirates armed with RPGs and AK-47s and a boarding ladder. "On being
approached by the naval vessel, the pirates dumped their arms, ammunition and
other piracy triggers," the navy said, which was supported by German
frigate Niedersachsen. Had M/V V Elinakos been armed, as is now authorized by the IMO, assistance would not
have been required.
***Matson Rebrands ..... as it has announced name changes for its 3 logistics units
under the new name, Matson Logistics, thereby combining the three entities,
Matson Integrated Logistics, Matson Global and Matson America into one brand. The U.S. company provides ocean transportation,
domestic and int'l rail intermodal service, long haul
and regional highway brokerage, supply chain services, LTL transportation, specialised hauling, and company-operated warehousing and
distribution. "It is important to differentiate ourselves as both a
leading ocean carrier and logistics provider," said Matson president Matt
Cox. "In the past decade, Matson's logistics have diversified, warehousing
and distribution and moving beyond North American markets to China." The 3 company divisions have changed their trade names
from Matson Integrated Logistics to "Matson Logistics", Matson America Transportation Services is now "Matson
Logistics Services" while Matson Global Distribution Services becomes
"Matson Logistics Warehousing".
***U.S. Maersk Unit Wins Major Logistics Deal ...... as Maersk
Line, Ltd., won a multi-year contract valued at up to US$126M to operate and
maintain and container & roll-on, roll-off ships for the U.S. Navy.
Norfolk-based Maersk Line Ltd., the U.S.-flag unit of
A.P. Moller Group, will handle Bobo
Class vessels for the U.S. Navy Military Sealift Command's prepositioning
program. The ships, crewed by civilian mariners, are stowed with military
equipment and supplies and kept prepared for rapid availability during military
and humanitarian relief operations. Earlier this month, Maersk
Line Ltd. won an up to US$71.5M, nearly five-year contract to charter an
ice-strengthened tanker to support the command, and it won a US$66M contract to
operate and maintain 2 command ships in April.
***Crowley Maritime Scores IN Puerto Rico ..... as it has
acquired the business and assets of Puerto Rico Freight Systems (PRFS), a Guaynabo, Puerto Rico-based logistics company specializing in freight
consolidation and less-than-containerload (LCL) transportation
throughout the Caribbean.
Kong's 's Orient Overseas Container Line Eliminates More Free Lunch ...... as OOCLwill
stop providing truck chassis from Sept. at 6 additional port and inland
locations in the east and Midwest, including Charleston, South Carolina -
America's eighth biggest container port. Its no-chassis policy will extend to Charlotte, Knoxville, Birmingham, Minneapolis and Cincinnati. After Sept.
1, truckers either working as suppliers to OOCL or the company's customers
chassis charges are to be billed by truckers to their customers. OOCL told
customers of chassis rental options available at 6 locations.
Chapter 15 Bankruptcy .....
as the Containership Company (TCC), a failed startup container line establihed in 2009 that filed for
"reconstruction" in Denmark this April, has been granted U.S.
government recognition of Danish bankruptcy laws as valid in the United States
under Chapter 15 bankruptcy. Consequently, TCC will be able to enjoy protection
as a debtor in the U.S., where it is seeking US$25M in damages from shippers who
allegedly failed to meet minimum quantity commitments, reports the American
Shipper. The shipping line estimates 83 shippers failed to meet commitments,
representing nearly 100,000 TEU in no-shows. Those shippers who have agreed to settle are said to have done so at
"around 100%" of the penalties set for not meeting their commitments
as part of the contracts signed with TCC.
Scene Smelled Great ...... as
a malfunctioning forklift dropped an ocean container laden with 462 cases of
wine in Australia on July 21, a spill with a price tag of more than US$1M. The
5,544 bottles of 2010 Mollydooker Velvet Glove
shiraz, with a price tag of US$185 a bottle, fell almost 20 feet to the ground
of a wharf in Port Adelaide as the forklift was loading it for shipment abroad,
according to media reports. "We just couldn't believe it," winemaker
Sparky Marquis said in a report on Adelaide Now. "As you can imagine, this
wine is our pride and joy. To see it accidentally destroyed, and not consumed,
has left us all a bit numb. Sparky Marquis and his wife Sarah are both
left-handed. In Australia, "Mollydooker" means
left-handed. "The container manager said when his team came and told him
what had happened, he was looking around for cameras
to see if it was a 'gotcha' hoax. He realised it was
serious when nobody was laughing," Adelaide Now quotes Marquis as saying.
Marquis said that only one carton among the 462 was undamaged. His staff was
searching through the others to see if any other bottles may have escaped. The
lost wine represents a third of his company's output for a year. Brett McCarthur of Kerry Logistics, the company which operated
the forklift, told Adelaide Now his company moves tens of thousands of heavy
containers each year. "We move hundreds of pallets a day filled with sand
and even stuff that it wouldn't matter if you dropped it from 50 feet in the
air, but the only premium container had to be the one," McCarthur was quoted as saying. Marquis said he was working
with insurers to get compensated for his loss. Onlookers said it looked
"like a murder scene', with red everywhere, but it smelled
***Throughput >>> Russia's Far
East Shipping Company (Fesco) increased its first half container volume 46% year
on year to 214,000 TEU together with a 68^ jump in forwarding intermodal throughput to 91,000 TEU. >>> Port of Hong Kong handled two million TEU in June, a decrease of 2.2% against the
2.06 million TEU handled in June of last year. >>> Port of Long Beach handled 271,113 loaded import TEU in
June, second only to the 275,100 TEU handled in May. >>> Port of Marseille handled 462,781 TEU in the 1st
half of 2011, down 9%,, making it unlikely it will achieve its full year target
1 million TEUs, the second year running it has fallen
short due to labor unrest. >>>Container volume at Oregon's Port of Portland fell 11.2% in June, to 13,320 TEUs and uto volume fell 40% in
June, to 13,067 units, continuing a downward trend in 2011. >>> Port of Seattle container throughput fell back 27.8% in May from the same month a
year ago in a broad decline in international shipping at Pacific Northwest ports. >>> Sydney's Port Botany has hit its 10th annual container
throughput growth with a record two million TEU by the end of the 2010/11
***This Month In U.S. Navy History
1823 - After pirate attack, Lt. David G. Farragut
leads landing party to destroy pirate stronghold in Cuba.
1918 - Armored cruiser USS San Diego (ACR 6) sunk off Fire Island, N.Y. by a mine laid by
German U-boat U-156.
1943 - German submarine shoots down K-47, the first and only U.S. airship lost during WW II.
1944 - Invasion and recapture of Guam begins.
1946 - In first U.S. test of adaptability of jet aircraft to shipboard operations,
XFD-1 Phantom makes landings & takeoffs without catapults from USS Franklin D.
Roosevelt (CV 42).
1987 - Navy begins Operation Earnest Will, escorting first Kuwaiti tanker
convoy in the Persian Gulf.
Navy Now Motivated To Establish Recycling Plan ... as scandal s fast brewing in Cyprus over reponsibility for the July 5
explosion of 98 contraband containers holding explosives that killed 13 and
injured 61, created a 600-meter wide crater, nearly destroyed a Cypriot naval
base and severely damaged a power station. "A combination of apathy,
foot-dragging, red tape, inter-departmental rivalry and classic buck-passing
led to a tragedy that could easily have been averted. The army brass knew what
needed to be done, but were apparently shackled by the civilian administration.
The military wanted a controlled detonation, but the government said 'don't do
anything, wait'," said a highly critical article in the Cyprus Mail
expose. In early 2009, the 23,000-ton Monchegorsk,
registered with the Cyprus Merchant Marine, became the centre of an
international incident involving Iran, Russia, the U.S., Israel, Gaza and Cyprus. The 648-TEU ship with ro-ro capabilities, was apprehended in the Red Sea by U.S. warships in Task Force 151 having left Iran. Following a search, suspicious military material was reported
and the ship was escorted to Limassol in Cyprus. Cypriot authorities made a limited search of the containers, the
result of which was referred to the security council
for clarification, but not disclosed to the public. Once the breach was
confirmed, the cargo was confiscated and unloaded. After the recent explosion,
criticism of the handling and storage of the containers erupted. The Cyprus
Mail newspaper in Nicosia claims officials knew they had a "ticking time bomb, yet for
almost 2.5 years nothing was done to act on this information."
US$300M Bye Bye ......
as in the era of massive belt-tightening budget cuts, the story of two
never-completed, unused Navy ships now being sent to the scrap heap after
costing U.S. taxpayers US$300M is a case study in Pentagon waste. Requisitioned
by the U.S. Navy in 1985, the two motor tankers, USNS Benjamin Isherwood and USNS Henry Eckford, "have never gone on a
mission, were never even completed, yet they cost taxpayers at least $300
million," the Virginia-Pilot's Scott Harper reports. Now, the "ghost
ships" are headed from their dock on the James River in Virginia to a Texas scrap yard to be
dismantled, Harrop writes. And there's one more
catch--the United States awarded a US$10M contract to dismantle four ships, including the Eckford and the Isherwood, to a UK firm, so no money from the reclamation will return to the United States. Inexcuseable.
"Big U" ....
as in order to enhance efforts to preserve and
successfully redevelop the SS United States, the SS United States
Conservancy is selling 2 of the ship's 4 spare propellers to a metal yard
based in Camden, NJ, across the Delaware River from the vessel's current berth on the Philadelphia waterfront. Two additional propellers remain aboard the vessel
and will not be sold. This sale is part of the Conservancy's strategy for
redeveloping the ship, which has been formulated in close consultation with
preservation and maritime experts. It allows the Conservancy to significantly
advance its efforts to repurpose the ship in an appropriate and dignified
manner using important preservation principles and objectives. An additional 4
propellers from the SS United States are displayed prominently at
important sites in New York and Virginia. These sites include the U.S. Merchant Marine Academy, the State
University of New York Maritime College, near the USS Intrepid Sea, Air, and Space Museum in Midtown
Manhattan, and at the Mariners Museum in Newport News, VA. These displays provide important opportunities for many visitors
to view and develop a personal understanding of the propellers and the ship. Sale of the 2 propellers
will provide the Conservancy with funds absolutely critical to plans for the
ship's redevelopment as a stationary attraction.
SS United States Conservancy:
5. The Cargo
Letter Cargo Damage
**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.
See our new feature for July 2011: "Minor Miracle On The Obi"
See our newest photo feature "Singles Only" - Transportation Disasters Told In A
Daily Vessel Casualties ......
as we don't want you to miss the excitement of our 24 hour reports of the
dramatic events at sea each day -- stories of casualties & pirates ---
almost none of which are carried on your local news. Edited
daily by Christoph
Wahner, Esq. of Countryman & McDaniel.
historic dangers of carriage by sea continue to be quite real. Shippers must be
encouraged to purchase high quality marine cargo insurance from their freight forwarder or
customs broker. It's dangerous out there.
OUR "D" Section: FF in Cyberspace***
6. The Cargo Letter "Cyber Ports Of Call"
Here are our suggested world wide web sites of the
week for your business, your information and your amusement..............
Cargo & Trade>>>>>>
China Ministry of Commerce: Import Tariffs On 33 Commodities To Be Cut
Container Shipping Faces Incredible Over Capacit:
Lay-Ups The Only Option
Famed Freighter SS Robin Arrives At London Royal Docks
Final Rule Amending U.S. Hazardous Materials Regulations Effective Aug. 19 2011
Global Shippers' Forum ......
represents shippers on key international issues before both national
governments and international bodies.
Heavy Tire Explosions - Equivalent To Being Hit By A
Truck ........dramatic video
footage warning of the catastrophic effects & employee danger of inflating
a truck tire that has previously suffered run-flat damage.
Summer 2011 AAPA Seaports Magazine ......
view the fully interactive digital edition
U.S. Census Bureau Releases Third Issue of its Export Newsletter "TradeSource"
U.S. Dept. of Commerce Revokes Antidumping Duties On Ball Bearings From Japan
& Great Britain
Logistics Floor Marking Guide ........free
Trade Shows, Exhibitions, Conferences & Business Events
World Trade Organization Events
6th Annual Canada Maritime Conference ......... 20-21 Sept. 2011, Montreal
8th China Air Cargo Summit 2011 ...... Oct.12-14, Shenzhen, PRC
Air Cargo & Seacargo Americas ...... 2 - 4 Nov. 2011, Miami, FL
Cool Logistics 2011 .....26-28
Sept. 2011, Crowne Plaza, Antwerp Belgium
FIATA World Congress 2011 .......16
to 21 Oct.,
2011 in Cairo, Egypt
Military Vehicles Exhibition & Conference 2011 (MVEC
Cobo Convention 9-11 Aug. 2011, Center, Detroit, Michigan
TOC Americas 2011 .....15-17 Nov. 2011, El Panama
Hotel, Panama City Panama
TOC Middle East 2011 ....... Sept. 27-29, Dubai
World Trade Centre
Transport Security Expo 2011 ......13-14 Sept. 2011, Olympia, London UK
U.S. Commercial Service - Export Administration Regulations
(EAR) Course .....
Aug. 10 & 11, 2011, Los Angeles
WMU's Piracy Conference ........ 17-19 Oct 2001, Malmo, Sweden
Apps For That - iPhones>>>>>>>>>
EchoTrak .....allows supply chain
managers to track & manage shipments with any Apple iPhone,
iPad or iPod Touch devices
and Google's Android phone. Select from multiple
carriers, rates and transit times to rate and save loads using detailed carrier
rates and cost breakdown available for each carrier rated. Users can also use
various load boards to track in-transit, booked & delivered loads and setup
custom watch lists.
Sid Meier's Pirates! ....
the classic game reinvented
Florida Maritime Training Academy ......the
new USCG approved facility
GM Hy-Wire "Car of the Future"
Hitler Rants About Carmageddon In Los Angeles
How The Horder Between India & Pakistan Is
Closed, Every Day ...... amazing
Robin Williams As The American Flag
Running On Empty ......what if
Los Angeles had no cars?
Stealth Warships ........
borrowing technology from the aviation sector
TDI-Panamericana Endurance Challenges 75th Anniversary
of World's Lonngest Highway ....... follow the trek.
United Airlines Breaks Guitars
War of Jenkins' Ear ....... 1739
-1742 maritime conflict between Britain & Spain
Waterproof iPhone Case ..... use to
6 meter depth
Zipcar Vehicle Sharing
OUR "E" Section: The Forwarder/Broker World***
7. New U.S.
Transport Related Legal Cases _______
ABF Freight System Vs. Int'l Brotherhood of Teamsters
U.S. 8th Circuit Court of Appeals (St. Louis)
The court has reversed & remanded a lower court's previous dismissal of ABF
Freight System's lawsuit against the Int'l Brotherhood of Teamsters, YRC Inc.,
Trucking Management Inc. and other related entities. When the original lawsuit
was filed in Nov. 2010, less-than-truckload carrier ABF sought to have the
lower court create an appropriate grievance review committee to resolve the
dispute, or to have the contract amendments benefiting only rival LTL carrier
YRC declared null and void by the court, as required by the National Master
Freight Agreement (NMFA). ABF also sought an award of monetary damages
estimated to be approximately US$750M. ABF will continue to seek that relief on
remand. ABF's contention is that the defendants
violated the NMFA in 2009 and 2010 by entering into concessionary side
agreements with YRC companies to the exclusion of ABF and other companies
signatory to the NMFA. These agreements, ABF claims, led to ongoing significant
wage and benefit reductions and other economic concessions that were applied
only to YRC companies, and not ABF. With more than 8,000 union employees, ABF's lawsuit asserted these concessionary agreements were
unlawful, unfair and inconsistent with the plain language, intent and purpose
of the NMFA, and that they resulted in a substantial competitive disadvantage
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 &
Christoph M. Wahner, Esq. (Countryman & McDaniel) Daily Vessel Casualties
Maria Payne (Countryman & McDaniel)
_The Cargo Letter_
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Air Carriers, Surveyors, Intermodal Shipper's Agents,
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& readers on 6 continents.
Michael S. McDaniel, Editor.
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