Law Offices of Countryman & McDaniel
Air & Ocean Logistics - Customs Broker News
25 September 2013


Good Wednesday Morning from our Observation Deck......overlooking the officially designated "
Cargo City" area and...... Runway 25-Right, at Los Angeles International Airport, voted "Best Cargo Airport in North America."

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       Here is what happened in our industry during the Month of September 2013. We've got further details on MAP-21, the game-changing mandatory new U.S. law.

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FAST -- there's now a transport search engine installed at our www.CargoLaw.com website!

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The Cargo Letter.  We strive to bring you useful information which is timely & topical.  Be sure to visit our website.......http://cargolaw.com
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       Michael S. 
McDaniel, Editor, Countryman & McDaniel, forwarder/broker, hull & machinery attorneys at LAX.

The Cargo Letter:
OUR "A" Section: Trade, Financial & Inland News***
Freight Forwarder Trade Briefs ______________                            
The Cargo Letter Financial Page ______________                               
OUR "B" Section:  FF World Air News***
Freight Forwarder World Air Briefs ____________                         
OUR "C" Section:  FF World Ocean News***
 FF World Ocean Briefs _____________________                                            
The Cargo Letter Cargo Damage Dispatches _____        
       **Back By Popular Demand**
OUR "D" Section:  FF in Cyberspace***
The Cargo Letter "Cyber Ports of Call" _________             
OUR "E" Section:  The Forwarder/Broker World***
7. New U.S. Transport Related Legal Measures ________  
    MAP-21 Enforcement Grace Period Announced -- details of the mandatory new U.S. law        

OUR "A" Section: Trade, Financial & Inland News***
Freight Forwarder Trade Briefs _____________  

    ***2013 East Coast Trade Symposium ....... as U.S. Customs and Border Protection has scheduled the event for Oct. 24 25, 2013 at the Washington Hilton Hotel in Washington, DC. The theme for the Trade Symposium is "Increasing Economic Competitiveness Through Global Partnerships and Innovation." CBP will convene only one Symposium this year.
Symposium Details

    ***WTO Sees Gradual Recovery Despite Cut In Trade Forecast ....... as World trade growth in 2013 and 2014 is likely to be slower than previously forecast. WTO economists now predict 2013 growth of 2.5% (down from the 3.3% forecast in April), and 4.5% in 2014 (down from 5.0%), but they say conditions for improved trade are gradually falling into place. The demand for imports in developing economies is reviving, but at a slower rate than expected. This hindered the growth of exports from both developed and developing countries in the first half of 2013 and was the reason for the lower forecasts, they said. The European sovereign debt crisis has eased significantly since last year, unemployment in the United States has fallen to 7.3% from a post-crisis high of 10%, and growth of GDP (gross domestic product, a measure of a country's output) in Japan has accelerated since the adoption of new fiscal and monetary policies. Although large developing economies have slowed appreciably in recent months, the latest figures from China on industrial production suggest the country may be regaining some of its dynamism. On the other hand, India's economy is still in the midst of a sharp contraction according to composite leading indicators calculated by the Organisation for Economic Cooperation and Development (OECD). However, since the European Union consumes roughly one third of the world's traded goods (including shipments between member countries within the EU) and the EU unemployment rate is likely to remain at or near record levels for some time, growth in trade can be expected to be below average that is, below the 20-year average of 5.4% in the coming quarters.
Learn More About The World Trade Organization

   ***Merrier Christmas? ...... as the holiday import months of July & August were 1.5% higher in volume compared with the same two months in 2012,"says Zepol's CEO Paul Rasmussen, "This is one of the only significant differences in TEU volume from 2012 to 2013, which hints at a more active holiday shopping season.
Learn More About Zepol

    ***Selling The Post Office ..... as the UK government has signalled the start of the privatization process of the 500-year-old state-owned postal utility, Royal Mail, with the publication of an Intention to Float notice by the London Stock Exchange. The Initial Public Offering (IPO) could take place within weeks putting it on a potential collision course with the biggest strike at Royal Mail in years, reported Lloyd's Loading List. The launch could value Royal Mail at around US$3.5Bn, but the government has not decided how much it intends selling, only that it will be a majority stake. Employees will be given 10% of the shares, with the remainder being offered to institutional investors and the public. Free shares will be given to 150,000 UK-based Royal Mail employees, who will be able to apply for additional shares under an employee priority offer. The government argues that the Royal Mail IPO will be given the means to raise the money it needs to invest in the future. However, the Communication Workers Union (CWU) has voiced its opposition to the float and is poised to ballot its members for a strike. The outcome of the ballot will be announced on October 3, is widely expected that union members will vote to strike and October 10 would be the first legal date for a walkout.
Learn More About The Royal Mail

   ***Losening Chinese Controls? ....... as a planned free-trade zone in Shanghai is raising hopes that China's new leaders will revive long-stalled economic reforms as they seek to make their mark.China has become the world's second-largest economy and a driver of global growth thanks to a boom unleashed three decades ago when the Communist Party loosened state control of business and began to embrace the market. But deep reforms slowed over the past decade under the conservative President Hu Jintao, despite pleas from its trade partners, analysts said. Some Chinese academics say the free-trade zone (FTZ) is on par with the special economic zones China set up in the 1980s and its commitment to join the World Trade Organization in 2001. However, foreign businesses are waiting for details to see how far-reaching the changes -- initially limited to the FTZ -- might be. Chinese Premier Li Keqiang, who took office in March, has seized on the FTZ and made himself its top political patron, seeking to claim it as one of the achievements of his young administration. "We will explore new ways to open China to the outside world, and Shanghai's pilot free-trade zone is a case in point," Li wrote in the Financial Times this week.

    ***India Trade Jump ..... as exports increased for a 2nd month, up 12.9% in August to US$26.14Bn year on year, according to the Ministry Commerce and Industry, reported The Hindu. During April-August, exports were up 3.89% at US$124.42Bn year on year. Imports, too, grew 1.72% to US$197.79Bn. The government wants to boost electronics manufacturing to reduce imports. Last year, India imported US$32Bn in electronics. The rupee hit an all-time low of 68.85 to the U.S. dollar last month on concerns over New Delhi's ability to fund its bloated trade deficit.

   ***Peru Trade Slide ...... as Reuters reported its central bank slashed its official view of this year's trade balance to a US$666M deficit from its previous forecast of a US$675 M surplus, according to a quarterly report. The bank also changed its forecast for this year's fiscal surplus to 0.4% of gross domestic product (GDP) from its June estimate of 0.7%. It also now sees a wider current account deficit - 4.9% of GDP instead of 4.4%.

    ***China Reopens Log Flume ...... as the ban on the export of hardwood logs from the U.S. has been lifted, a development that spells good news for the Port of Virginia because it reopens an important export market for shippers. Two years ago, log shipments exported to China via the ports of Virginia and Charleston in South Carolina, were banned by the Chinese government because of concerns over invasive pests. Following months of negotiations and extensive research, the Chinese began a year-long pilot programme in June 2012 that paved the way for the resumption of the export of both hard and softwoods to China.

   ***Confederation of Int'l Freight Forwarding Networks Annual Meeting ....... as the CIFFN, an international non-profit group founded in 2011 by 19 freight forwarding network owners representing 4,126 independent freight forwarders globally, is to hold its next annual meeting on Oct. 13 in Bangkok, alongside The Freight Summit (TFS). CIFFN is the world's first and largest confederation of its kind to set up with the goal to improve the freight forwarders networking industry to ensure a safer and more progressive business development environment for independent forwarders. 
Learn More About The CIFFN

   ***Buyers Line Up For The Greek National Railway System ..... as the companies which handed in their expressions of interest were French train operator SNCF, Romania's Grampet Group and Greek building group GEK Terna in cooperation with Russian Railways RZD, a source close to the talks said on condition of anonymity. Selling-off state assets is a central condition of Greece's two bailouts by the European Union and International Monetary Fund worth 240 billion euros, and Athens needs to raise 1.6 billion euros from privatisations this year. Officials hope the TrainOSE sale will raise 200 million euros. TrainOSE operates all cargo & passenger routes on 2,500 km of railways over 500 routes, according to the company's website. The railway network, including track and other infrastructure, is owned by the Railway Organization of Greece (OSE). Since the country's debt crisis broke out in late 2009, Trainose has been restructured with 1.4 billion euros in government funding, which has been used to close loss-making routes and cut nearly half the staff. 
Learn More About TrainOSE

   ***New Medical Labeling Rules ...... as the Food and Drug Administration (FDA) is issuing a final rule to establish a system to adequately identify medical devices through distribution and use. This rule requires the label of medical devices to include a unique device identifier (UDI), except where the rule provides for an exception or alternative placement.  The labeler must submit product information concerning devices to FDA's Global Unique Device Identification Database (GUDID), unless subject to an exception or alternative.  The system established by this rule requires the label and device package of each medical device to include an UDI and requires each UDI be provided in a plain-text version and in a form that uses automatic identification and data capture (AIDC) technology.
Review The FDA Final Rule

    ***Ivory Busting ...... as recent seizures of illegal animal body parts have put the spotlight on improved container security at African ports and the need for further action. Working in conjunction with the Kenya Revenue Authority, the Kenya Wildlife Service (KWS) has stepped up its operations at the port of Mombasa. In mid-July, it seized 2 containers filled with the tusks of 400 elephants. A KWS spokesperson revealed: "Every consignment that passes through the port is cleaned and those consignments that are found to be contraband are intercepted." Kenya is one of the 'Gang of Eight' countries criticised by conservation group CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) for their role in wildlife crime. In August, Chinese company Mozambique Tienhe Trading Development Ltd was fined US$3.5M by a Mozambican court for seeking to transport a variety of illegal animal parts out of the country. The consignment was again discovered hidden among timber in containers at the northern port of Pemba.
What is CITES?

   ***Tell Norfolk Southern When You Want It ...... as NS Intermodal will add a "deliver-by" data requirement to the list of required information on electronic shipping instructions. Deliver-by data are now required for all intermodal containers, truckload containers in Norfolk Southern's EMP domestic container service, private domestic containers and private trailers. "Deliver-by is the date and time customers or their drayage agents expect to out-gate the shipment at the NS destination terminal, and is used to manage loading at origin and unloading at destination to provide the best possible service to our customers" NS said in a statement. NS expects the system will help customers minimise late shipments and reduce the need to reschedule delivery appointments. The railroad will still accept shipment instructions without delivery data, but advises that "qualifying shipments without Deliver-by will receive the lowest priority for loading at origin and mounting on chassis at destination". Deliver-by data can be provided by EDI or NS's online system, accessNS. 

   ***Demanding A More Deliberate Approach To Sleep Apnea ...... as the American Trucking Assn. applauded the House Transportation and Infrastructure Committee for its swift approval of a bill that would prevent the Obama administration from using informal guidance to address sleep apnea. "ATA believes that testing alone for obstructive sleep apnea of truck drivers could cost the industry nearly US$1Bn," said ATA President and CEO Bill Graves. "If our industry is to be burdened with such a cost, then the Federal Motor Carrier Safety Administration owes it to trucking to conduct a full and thorough rulemaking, including collection of scientific data and a cost-benefit analysis." The bill, which was introduced by Reps. Larry Bucshon (R-Ind.) and Dan Lipinski (D Ill.), just last week, has broad bipartisan support, already garnering nearly 50 cosponsors. The bill is being credited for the sudden receptiveness by FMCSA to a rulemaking. Nevertheless, many members agree there is still a need for the legislation.
Learn More About Sleep Apnea of Truck Drivers

   ***C.R. England Contracts ...... as the refrigerated truckload carrier laid off 81 workers. The cuts followed the trucking industry's struggles to grow this year "due to a stagnant economy, increasing federal regulations and a tightening market for drivers," CEO Chad England said in a memo.

    ***Roadrunner Transportation Systems Said Yes ...... as it has acquired refrigerated truckload carrier Yes Trans Inc., based in Salisbury, Mass. The purchase price was US$1.2M, net of cash acquired, plus an earn-out capped at US$1.1M, Roadrunner said. Yes, which primarily transports meat and produce between the Northeast, Midwest and Southeast, generated about US$5M in revenue last year.

    ***Lincoln Hits 100 ....... as the first coast-to-coast paved roadway in the United States opened on this month a century ago. Known as the Lincoln Highway, the road originally ran for nearly 3,400 miles through 13 states, connecting New York City with San Francisco. As a young army officer, Dwight Eisenhower drove in an army convoy on the Lincoln Highway an experience which lay behind his later support as president for the Interstate Highway System that we enjoy today. And the Lincoln Highway, with some route adjustments and sharing, still serves American motorists, but with the designations of U.S. routes 1, 30, 530, 40 and 50. Across the U.S., there are just over four million miles of roads, about three quarters of them in rural areas. 

    ***The Bliss of Vehicle Death ...... as when Henry Bliss stepped off a streetcar at Central Park West and 74th Street in New York, on this month in 1899, automobiles were a novelty. Thus, he didn't look, and was run over by an almost silent electric taxi. The accident was the first fatality in the U.S. involving an automobile.  At the time, there were fewer than 8,000 motor vehicles in the whole country.  As the number of registered automobiles climbed rapidly, so did the number of deaths.  In 1990, some 45,000 people were killed on the nation's highways.  Since then, safety belts and better car designs have lowered the death toll.  In recent years, the number has trended down to about 32,000 fatalities as of 2011, even though the number of cars continues to increase.
The Cargo Letter Financial Page ____________ 

**China Shipping Container Lines (CSCL). 
DOWN as the world's 9th biggest container shipping line, has posted a year-on-year 1st half net loss of US$200M, little different from the loss posted a year ago.
UP with a 6.5% year-on-year increase in 1st quarter profit to US$489M, on revenues of US$11.02Bn, up 2.1%.                             

OUR "B" Section: FF World Air News***
Freight Forwarder World Air Briefs __________  

    ***The Delta Airlines Honor Guard........ be very proud.

    ***40 Years After First B747 Uplift ...... as Lufthansa Cargo has announced that beginning Nov. 2013 it will launch international flights operated by the new Boeing 777 Freighter that is less noisy and more efficient than its predecessors. The first 3 destinations scheduled for the "Triple Seven" freighter will be Atlanta, Chicago & New York. Unlike the first freighter version of the "jumbo" Boeing 747 that the airline debuted in 1972 to fly 73 tons of cargo and 1.8 tons of mail between Frankfurt and New York powered by 4 engines, the new plane needs only two. The Boeing 777F is able to remain in the air for 10.5 hours with a payload of 103 tons. During that time it can fly 9,000 kilometres non-stop. Air France will also part with its three 747 freighters in 2015. All this said, new models of the B-747 are still being designed & built by Boeing at Seattle -- a truly remarkable platform.
Learn More About The B-777 Freighter

   ***Positive IATA  Report ...... as the International Air Transport Assn. announced that air freight volume in July reached its highest level since mid-2011, showing a continuation of the modest improvement trend experienced in June. Global freight ton kilometers (FTKs) were up 1.2% in July year on year, slightly better than the 0.9% year-on-year increase recorded in June, as growth in Europe and the Middle East offset weakens in Asia. Capacity increased 3.4% versus July 2012, pushing load factor down to 43.3%. However, load factors have stabilised compared to earlier in 2013. Airlines in Europe, the Middle East and Latin America contributed to the improved performance versus a year ago. Asia Pacific carriers' cargo demand fell 1.4% compared to July 2012, while capacity climbed 2.6% Asia Pacific airlines have seen air freight contract 2.1% in the first 7 months of 2013, the largest decline among regions. North American airlines had another month of weak demand for air freight in July, while Middle East airlines led all regions with a 14.4% rise in FTKs compared to July 2012. Latin American carriers' cargo traffic was up 3.1% in July compared to a year ago, with capacity up just 1.7%. 

    ***Boeing Backs Up ...... as the world's biggest air freighter manufacturer, is headed towards its fewest cargo jet orders since the 2009 recession as demand wanes for the overnight shipments that once drove purchases. With 13 sales through July, Boeing's tally was just one-5th the total of six years earlier. Airbus SAS, which didn't begin shipping freighters until 2010, has no orders this year, and the market for secondhand passenger aircraft being converted to fly cargo has dried up, according to Bloomberg. Airbus, based in Toulouse, France, didn't receive any orders for the A330-200 freighter, its only model, from January through the end of July. The plane has 44 orders against 23 deliveries. "This is not a surprise given the current state of the air freight market," said Airbus spokesman Martin Fendt.

    ***American Airlines Cargo Goes e ...... as it has become a signatory of the IATA Multilateral Electronic Air Waybill (e-AWB) Agreement, moving the airline one step closer to paperless air freight operations. "We have been working behind the scenes on this important issue for some time, and we're excited to see our name added to the agreement," said company president Kenji Hashimoto. The IATA agreement provides a single standard agreement for airlines and freight forwarders to carry out cargo contracts electronically. As of Sept. 2, 41 airlines and 187 freight forwarders have joined the multilateral agreement. The company said the move will ultimately help to increase the efficiency, accuracy and speed of processing freight, while reducing errors and costs. The move is one way the airline is looking to minimise its impact on the environment. At the same time, American is undergoing trials with key customers on select lanes with goals of expanding e-AWBs throughout its network.
Learn About The IATA - e-Air Waybill (e-AWB)

   ***U.S. Transportation Command Renews ...... as 
USTRANSCOM has awarded 3 separate contracts worth US$171M each to FedEx, UPS and Atlas Air Worldwide's subsidiary Polar Air Cargo. The companies are being hired to perform a 2nd option year (out of a possible four) on their respective indefinite delivery/indefinite quantity, fixed-price contracts to provide Worldwide Express 5 (WWX-5) small package delivery services for the military. All three contracts will run until Sept. 30, 2014.
Learn About The United States Transportation Command

    ***United Airlines Refills The Cockpit ...... as it has announced that it will recall the "nearly 600 pilots" currently on furlough. The company says it's making the move "to address the airline's future staffing needs," adding that "no United pilots will remain on furlough following the recall." However, The Wall Street Journal notes that United "isn't calling back the pilots because it plans a growth spree."Instead, the airline says the recall is meant to fill positions that will come open as current pilots retire and because of new pilot rest rules United expects will require it to increase its number of pilots.

    ***China Postal Airlines Expands ...... as CPA, based in Beijing, has ordered five Boeing 737-300 passenger-to-freighter conversions from PEMCO World Air Services. This comes after an agreement under which Air China Cargo, a joint venture between Air China and Cathay Pacific, will operate four 757-200PCFs for China Postal, following aircraft conversions by Precision Conversions. The aircraft order also follows the recent redelivery of PEMCO's 10th freighter, an 11-position 737-400F for CPA, reports Atlanta area Air Cargo World. The latest round of freighter conversions will be performed at STAECO's Jinan, China facility, PEMCO's partner on more than 40 Boeing 737-300 & 737-400 freighter modification projects. By Sept. 2014, China Postal's fleet will include 15 PEMCO-modified 737-300F & 737-400F aircraft. The first two 737-300 aircraft are scheduled for induction in September, with the remaining 3 being converted in 2014.
Learn More About CPA

    ***Air Cargo Germany ...... as on Sept. 4, the remaining 120 employees of ACG have been dismissed and the remaining two aircraft, B747-400Fs, returned to their lessors.

   ***Passing of A Pioneer ..... as the founder of what was to become one of Australia's largest air freight companies, Wards Air Cargo, Sid Ward has died. He was 99. Ward loved flying since youth, but his time as a flying instructor in England during World War II had made him nearly deaf, and after the war he was grounded when radio use became mandatory. The World War II RAAF and RAF pilot established a courier business in 1959 from a garage shed in Parramatta in Sydney's west, when he owned just one Volkswagen Kombi van to run freight to and from Mascot Airport. Wards Air Cargo Pty Ltd grew to employ 3,000 people in Australia and Papua New Guinea and was operating 18 aircraft when it was bought by Mayne Nickless Ltd in 1979. By 1961 the business had become known as Lennox Air Freight and became Wards Air Cargo a year ago/

>>> Air Seychelles 2nd quarter volume almost tripled to 1.6 million tons, up 283%, boosting cargo revenue to US$3.68M, up 279%. >>> All Nippon Airways (ANA) posted a 9.7% July int'l cargo volume increase to 47,758 tons, its 5th month of year-on-year growth. >>> Cathay Pacific Airways, together with sister airline Dragonair, posted a 0.3 % August year-on-year volume increase to 122,724 mail and cargo tons while year-to-date volume fell 1.5%, the company announced. >>>UAE flag carrier Etihad Airways posted a 37% year-on-year increase in cargo volume to 45,000 tons during Ramadan-induced spike in demand for food items in the Middle East during July. >>> Moscow;s Domodedovo Airport posted a 3.4% increase in air cargo volume in the first 8 months of 2013 year on year, totalling 127,100 tons

   ***Next Time, Pay The Bag Charge ...... as here was something odd about the 30 suitcases that showed up on a flight from Venezuela. The colorful bags weren't registered to any of the passengers on the plane. When French officials opened them up, they discovered why -- 1.3 tons of pure cocaine were stuffed inside the anonymous bags. The street value of the stash? About $270M. The catch was made on Sept. 11, but French authorities didn't publicize the find until Sept. 21. The suitcases came from Caracas aboard an Air France flight to Paris, but did not match any of the passengers on board, CNN affiliate BFMTV reported. "Several" people have been taken in custody, French Interior Minister Manuel Valls told reporters Sept. 21. Venezuelan authorities are also investigating. The country's Public Ministry said prosecutors will investigate, along with the Counterdrug Command of the National Guard at Simon Bolivar Int'l Airport, to see if any criminal activity took place.

   ***Shame ..... as a Customs and Border Protection officer at Los Angeles Int'l Airport has been arrested on suspicion of illegally exporting weapons from the United States to the Philippines. Wilfredo Maralit, 48, of Garden Grove, and his brother, NYPD officer Rex Maralit, are charged with conspiring to violate the Arms Export Control Act and engage in unlicensed firearms dealing, according to the U.S. District Attorney. A 3rd brother, Ariel Maralit, has also been named in a federal complaint. He currently resides in the Philippines."Between Jan. 2009 and March 2013, the defendants engaged in a scheme to smuggle high-powered assault rifles, sniper rifles, pistols & firearm accessories from the United States to the Philippines, where they were sold to overseas customers," according to the District Attorney."As alleged, rather than upholding and enforcing the law as they had sworn to do, these defendants made international gunrunning a family business. The brothers used their knowledge of the law to circumvent it, and sent dangerous weapons overseas without regard for the ultimate destination or targets," U.S. Attorney Loretta Lynch said in a statement. "Criminal conduct by police officers, federal agents, and their confederates cannot be tolerated and will be met with the full force of the law."

    ***Flying The Coop ..... as a unique shipment of 1,150 retired egg-laying hens landed recently at Elmira Corning Regional Airport in Horseheads in upstate New York to live out their two or three remaining years at The Farm Sanctuary at nearby Watkins Glen. The flight was funded by a US$50,000 gift from an anonymous donor who wanted the hens saved from routine lethal gassing after they become unproductive after their two years of productivity. California sanctuary Animal Place rescued 3,000 hens, but there was little space available to keep them on the west coast, reported Atlanta area Air Cargo World. Air Partner arranged the charter eight-hour flight on an Embraer 120 based at Cincinnati/Northern Kentucky Int'l Airport. The consignment needed good air flow, a pressurised cabin and temperature control to keep the hens from overheating. "We looked for a plane that could handle the trip and found an Embraer 120 that fit the bill," said Air Partner North America.
Learn About Air Partner

   ***Ooops! ......as there was a shocking sight for some folks at Hobby Airport on Sept. 5 evening, as they watched a plane take off with a cargo door open. Southwest Airlines said an indicator light came on right after Flight 48 from Houston to Dallas took off. As a precaution, the captain decided to go back and have the door checked. Jeff Weingart was killing time at the airport when he saw it all unfold. "I couldn't believe my eyes," he said. "I couldn't believe a plane as sophisticated as they are would take off with the cargo door open." Southwest says no one was hurt, and maintenance was called out to check the door.

    ***More Snakes On A Plane ...... as an Asian snake was found on a Qantas Boeing 747 airliner in Australia, leading to 370 passengers being grounded overnight. Staff found the 8-inch Mandarin rat snake in the passenger cabin near the door late Sunday before passengers were due to board the flight bound for Tokyo from Sydney Int'l Airport, Qantas said in a statement on Sept. 23. Australia's flagship airline said passengers were given hotel rooms and left Sydney on a replacement plane Sept. 23 morning. Qantas said the original jet would be fumigated before returning to service in case there were other snakes on board. Tthe snake had arrived aboard the jet in a flight a day earlier from Singapore. The mildly venomous Asian snake was about the width of a pencil and did not pose a threat to humans, but it had the potential to cause ecological havoc in the Australian environment if it had escaped the plane with a mate, Canberra Reptile Zoo herpetologist Peter Child said. While snakes rarely pose aviation hazards, a 3-meter (10-foot) python in Jan. clung to the wing of a Qantas flight from northeast Australia to Papua New Guinea. The python died during the flight but was still attached to the wing when the two-hour flight ended.

   ***Go To Hel! ..... as would you board flight 666 to HEL on Friday the 13th? It's a question that many passengers were faced with when making their travel plans to Helsinki, Finland, recently. For superstitious travelers that might be tempting fate. But Finnair passengers on AY666 to Helsinki which has the 3 letter designation HEL don't seem too bothered. In fact, the flight was almost full. And the entire situation has been quite comical for many of the individuals who work for the airline. Finnair pilot Juha-Pekka Keidasto, who will fly the flight from Copenhagen to Helsinki, says "it has been quite a joke among the pilots." Friday the 13th is considered bad luck in many countries and the number 666 also has negative biblical associations. The former, while certainly creepy to the superstitious, actually has roots in ancient history, while the latter has theological connections.

   ***Goodbye To The Goodyear Blimp
OUR "C" Section:  FF World Ocean News***
FF World Ocean Briefs                                                     

   ***Taming A Weighty Danger ...... as on Sept. 20 the Dangerous Goods, Solid Cargo and Containers (DSC) Sub-committee of the Int'l Maritime Organization (IMO) approved proposed changes to the Safety of Life at Sea (SOLAS) convention that will require verification of container weights before loaded containers are placed aboard ships. Misdeclared container weights have been a long-standing problem for the transportation industry and for governments as they present safety hazards for ships, their crews and other cargo on board, workers in the port facilities handling containers, and on roads. "We have worked with the IMO to address the problem of incorrect container weights for over 6 years and now with the input of many governments and industry organizations, including responsible shipper associations, we are pleased that the SOLAS amendments and related implementation guidelines have been approved by the DSC. We appreciate the efforts of all involved," said World Shipping Council (WSC) President & CEO, Chris Koch. He added, "We look forward to approval by the Maritime Safety Committee (MSC) in May 2014 and the final adoption in Nov. 2014. The container shipping industry will continue to work with all supply chain stakeholders on the processes necessary to ensure smooth implementation, which could occur in July 2016."
Learn About The  Int'l Maritime Organization

    ***Expensive Loss ..... as insurers face estimated claims of US$300M to US$400M after the 8,110-TEU 
M/V MOL Comfort split in two with the stern section sinking in June in the Indian ocean while the forward section under tow caught fire and sank in July off Yemen. The estimate, reported by London's Insurance Day, is based on the average value of a container's contents at US$50,000, but then increases on the Asia-Europe route as boxes hold consumer electronics and high-value clothing bound for western markets, said the report. MOL also had a US$66M hull and machinery policy in place for the vessel, with Mitsui Sumitomo holding a 77% share, Tokio Marine 20% and the final 3% placed with Sompo. An additional increased value policy of US$17M was placed in the London insurance market by broker Miller Insurance Services. This policy was led by QBE's Lloyd's syndicate 1036, also known as the O'Farrell syndicate, said the report.

   ***Rates Up ...... as in a message to customers Maersk Line announced new rate increases to take effect from 1 November. The increase is of a minimum of US$600 per 20 foot container and US$1200 per 40 foot container. The rate increases will apply to the route from the Far East, excluding Japan, to Northern Europe and the Mediterranean. "In order to continue offering our broad portfolio of services and high level of reliability, it will be necessary for us to implement a number of rate increases / rate re-directions. We ask for your understanding and look forward to continuing to provide the service you've come to expect from Maersk Line", wrote the company in its communication to customers. If an additional increase should prove necessary, it will be announced by 30 Sept. On the Asia-Europe run, CMA CGM will exact an increase on cargo from north Europe to the Far East of US$200 per TEU and US$400 per FEU on Oct. 1. Likewise for MSC, but this increase also applies on cargo from Med ports.

    ***Service Down ...... as Drewry reports container service reliability decreased in 2nd quarter of 2013 with an on-time average of 70.5% down from 72.8% across all the trades covered by the latest Drewry's Carrier Performance Insight report. It was the second consecutive quarter to decline despite improvements on east-west trade reliability and even in the face of the 40-day dock strike in Hong Kong during April & May. During this time, on time container loading decreased by two per cent to 70%.

    ***So Cal Throughput Returns To Pre-Crash Levels ....... as Inbound imported containers at the Southern California ports of Los Angeles and Long Beach rose 7.5% in Aug. from a year ago, with Long Beach reporting its highest volume since Oct. 2007. Loaded imports rose to 683,500 20-foot equivalent units at the sister ports, according to monthly figures released last week. August's gain topped July's 5.1% increase. The facilities constitute the largest U.S. port complex and together account for about 40% of national cargo volume. The cargo trend reflects the addition of large ships at both ports and the shift of some cargo to Long Beach from Los Angeles late last year. Total August cargo volume including imports, exports and empty containers totaled almost 1.34 million TEUs, up 7.1% from a year ago and above July's 2.3% increase. Year-to-date overall volume rose 3.8% to about 11.12 million TEUs, including a 13.4% increase at Long Beach and 5.6% decline at the Port of L.A.

    ***New Japan Advance Manifest Requirements ...... as effective March 1, 2014,  they will require an advance manifest filing from both the ocean carrier and the NVOCC for all containerized ocean shipments entering Japan or transiting through Japan.  Ocean carriers & NVOCCs will be required to file an advance manifest 24 hours prior to vessel load (or 24 hours prior to departure for specific short-sea lanes) at either the Master Bill of Lading  (MB/L) or House Bill of Lading (HB/L) levels.   
Visit Japan Customs For Complete Details

   ***New Anti-Piracy Security Handbook ...... as London's Nautical Institute has launched the handbook to help seafarers, shore-based staff and those working in the maritime security industry cope with piracy. It gives practical guidance on preparation and training before entering a high-risk area, self-protection measures while within it and survival strategies if taken hostage. This includes effective implementation of the industry's Best Management Practices (BMP), the onboard implications of taking on armed guards, building a disciplined and supportive onboard team and ensuring immediate action ashore should the worst happen.
Get Your Copy

   ***Safe Haven...... as the Port of Sudan is to provide an alternative maritime hub for maritime security contractors at the Port of Sudan in case of Port Suez closure should further unrest erupt in Egypt. The Sudan-based Maritime Security Services Company (MSCC) hopes to provide a bonded armory service at the Port of Sudan subject approval of an external audit. The company will be exclusively authorized to offer the service to armed security and issue licences and logistical support to protect ships, crews within Sudanese waters and land further north in the Red Sea. The alternative gun base in Port Sudan will mitigate risk of Suez Canal closure to support security contractors who run into trouble from Egypt's Arab uprisings. Latest transit figures show the Suez Canal volume remains steady at 103 in January to highs of 131 in April and low of 103 in July, according to Lloyd's List Intelligence vessel tracking data. 

    ***Pirate Radio ...... as the Togolese government has set up a vessel identification station called "TOGO NAVY" at the military naval base in Lome to be responsible for identifying all ships navigating in its west African coastal waters. The navy has four patrol boats and an air force helicopter to patrol pirate-infested coastal areas, providing 24/7 protection in designated safe anchorages, according to GAC Hot Port News. Under the new arrangement, all vessels must contact the "TOGO NAVY" identification station on a designated VHF channel prior to entering the territorial waters. In cases where the vessel has armed protection, the notification should be made 48 hours in advance and all arms and weaponry should be disarmed prior to entry into territorial waters.

   ***A Good Question ...... as bunker surcharges should be falling faster than fuel prices because of more efficient ships, but this is not happening and shippers are asking, says London's Drewry Maritime Research. No change is evident in bunker surcharges despite the arrival of Maersk's first fuel efficient 18,000 TEUer, and the availability of cheap fuel at Russian ports, said the report. The new 18,000 TEU vessels burn 35% less fuel per TEU carried on a round voyage between Asia and North Europe than 13,100 TEU vessels, which in turn burn 20% less than a 9,000 TEUer, assuming constant speeds of 20 knots westbound and 14.6 knots eastbound. In the 3rd quarter of 2011, the average size of vessel on the Asia-Europe run was 9,158 TEU, which increased 8% over the next year to 9,881 TEU, then by another 9% over the following year to 10,800 TEU. Mathematically, this means bunker surcharges should be falling faster than fuel prices, which is not immediately apparent except for Maersk Line. The availability of cheap Russian bunker oil since the beginning of the year should have brought down fuel surcharge levels. But carriers do not calculate surcharges on the basis of Russian prices. Pressure from shippers for lower or fixed bunker surcharges is expected to remain high.

    ***Lloyd's List of World's Top Container Ports: 
>>> 1) Shanghai 2) Singapore 3) Hong Kong 4) Shenzhen 5) Busan 6) Ningbo 7) Guangzhou 8) Qingdao 9) Dubai 10) Tianjin;11) Rotterdam 12) Port Klang 13) Kaohsiung 14) Hamburg 15) Antwerp 16) Los Angeles 17) Dalian, 18) Tanjung Pelepas 19) Xiamen and 20) Tanjung Priok

>>> Hong Kong Marine Dept. shows the port handled 1.86 million TEU in August, representing a year-on-year decline of 5.9% from two million TEU in August last year, while 1st half container volume fell to 10.7 million TEU with laden boxes, down 6% to 9.3 million TEU and empties dropping off 16% to 1.5 million TEU. >>> Jeddah Islamic Port (JIP) posted a 17.9% year-on-year increase in container volume in the 1st half to 2.3 million TEU, >>> Port of Savannah annual container throughput slipped from 2.98 million TEU in fiscal year 2012 to 2.94 million TEU in 2013. >>> Port of Shanghai posted 13.3% year-on-year increase in container volume in August to 2.95 million TEU.

   ***This Month In U.S. Navy History
1899 - Gunboat 
Concord and monitor Monterey capture two insurgent schooners at Aparri, Philippine Islands.
1915 - Secretary of the Navy Josephus Daniels organizes the Naval Consulting Board to mobilize the scientific resources of the United States for national defense.
1936 - 
Squadron 40-T, based in the Mediterranean, established to protect U.S. interests and citizens around Iberian peninsula throughout the Spanish Civil War.
1941 - U.S. Navy ships escort eastbound British trans-Atlantic convoy for first time (
Convoy HX-150). Although the U.S. Navy ships joined HX-150, which left port escorted by British ships on 16th, the official escort duty began on the 18th.
1944 - Fifth Fleet carrier aircraft begin three-day attack on Japanese shipping and facilities in Visayas, Philippines.
1957 - 
Bathyscaph Trieste, in a dive sponsored by the Office of Naval Research in the Mediterranean, reaches record depth of two miles.
1976 - 
USS John F. Kennedy (CV 67) and destroyer USS Bordelon (DD 881) collide during night operations 100 miles north of Scotland.
1992 - Joint Task Force Marianas stands down after providing assistance to Guam after Typhoon Omar.

   ***Growing Arctic Ice ....... as about a million more square miles of ocean are covered in ice in 2013 than in 2012, a whopping 60% increase -- and a dramatic deviation from predictions of an "ice-free Arctic in 2013," the UK Daily Mail noted. Arctic sea ice averaged 2.35 million square miles in August 2013, as compared to the low point of 1.32 million square miles recorded on Sept. 16, 2012, according to the National Snow and Ice Data Center. A chart published Sept. 8 by NSIDC shows the dramatic rise this year, putting total ice cover within two standard deviations of the 30-year average. "We are already in a cooling trend, which I think will continue for the next 15 years at least. There is no doubt the warming of the 1980s and 1990s has stopped," Anastasios Tsonis of the University of Wisconsin told London's Mail. The surge in Arctic ice is a dramatic change from last year's record-setting lows, which fueled dire predictions of an imminent ice-free summer. A 2007 BBC report said the Arctic could be ice free in 2013 -- a theory NASA still echoes today. Meanwhile, global surface temperatures have been relatively flat over the past decade and a half, according to data from the U.K.'s weather-watching Met Office. Climate skeptics have spent months debating the weather pattern, some citing it as evidence that global warming itself has decelerated or even stopped. "The absence of any significant change in the global annual average temperature over the past 16 years has become one of the most discussed topics in climate science," wrote David Whitehouse of the Global Warming Policy Foundation in June. "It has certainly focused the debate about the relative importance of greenhouse gas forcing of the climate versus natural variability."
Read More And See The Satellite Photos

   ***Modern Marvel ...... as after 18 months lying on her starboard side, salvage workers pulled the capsized 
M/V Costa Concordia cruise ship upright on 17 Sept., off Tuscany, completing the complicated parbuckling in about 19 hours. Fifty-six giant pulleys slowly lifted the ship, revealing a section of hull darkened by rust and algae during 20 months underwater. After stabilizing the wreck, workers will empty its hull of water and prepare it to be towed to port, where she will be scrapped. The trial of Capt. Francesco Schettino for manslaughter continues.
Watch It Now

   ***Treasure Bonanza ..... as aFlorida based treasure hunting firm has discovered a 450-year-old ship that wrecked off the Dominican coast. Among its valuable cargo -- the single largest cache of 16th century pewter tableware ever discovered. The ship was also carrying extremely rare Spanish silver coins from the late 1400's through the mid 1500's and several gold artifacts. This unprecedented find of 16th century pewter will re-write history books, as many of the maker's marks stamped into the fine pewter have never been seen before. While the value of the gold & silver recovered is easily determined, surprisingly, experts place the value of this four and a half century old pewter collection into the millions. The collection includes plates, platters, porringers, salts and flagons in an array of sizes and styles. Divers from Anchor Research and Salvage (a Global Marine Exploration, Inc. company) working with the Punta Cana Foundation painstakingly excavated the wreck site under contract with the Underwater Cultural Heritage division of the Dominican Minister of Culture. CEO Robert Pritchett said, "Sample artifacts from these newly discovered wreck sites indicate that we may have found an entire fleet of early Galleons that wrecked on their way back to Spain carrying the riches of the new world." 

    ***Sticky Situation ....... as port officials responding to the Sept. 9 spill of 1,400 tons of molasses in Hawaii waters plan to let nature clean things up, with boat crews collecting thousands of dead fish to determine the extent of environmental damage. Some 233,000 gallons of molasses spilled from the leaky pipe as the sugary substance was moved from storage tanks to ships sailing to California. The crews already have collected about 22,000 dead fish from waters near Honolulu Harbor, and they expect to see more in the coming days and possibly weeks, said Gary Gill, deputy director of the Hawaii Dept. of Health. "Our best advice as of this morning is to let nature take its course," Gill told reporters at a news conference at the harbor, where commercial ships passed through discolored, empty-looking waters. Matson Navigation Co. is taking responsibility and will pay for the clean up. The state didn't require Matson to plan for the possibility, Gill and a state Dept. of Transportation spokeswoman said. Vic Angoco, Sr. VP for Matson's Pacific operations, said the company had been loading and transporting molasses at the harbor for about 30 years.

    ***Drug Rescue ..... as the French Navy managed to save 10 tons of cannabis from the flames after the Syrian crew of the Tanzanian-flagged 1,530 dwt 
M/V Luna-S set fire to 20 tons of the contraband drug in the Mediterranean south of Sardinia. "To our knowledge, this haul is the biggest ever seized by the French state in the Mediterranean. It's an exceptional take," said a senior French customs official. Pulling alongside M/V Luna-S, the French Navy, aided by Algerian counterparts, began the task of tackling the fire, which took several hours to put out. "It was an act of clearly prepared sabotage," the official said, adding that the crew did not put up any resistance when the Luna-S was boarded. The ship was towed into Toulon and its 8-man crew was taken into custody, where they face 10 years in prison. This is the third cargo ship caught transporting tonnes cannabis in the western Mediterranean in the past six months, the others being the Adam in April and the Gold Star, which were taken by the Italian Coast Guard.
The Cargo Letter Cargo Damage Dispatches                        
            **Back By Popular Demand**

We're sorry, but there were so many sinkings, explosions, pirate attacks, fires, cargo mishaps, battles on the water & other disasters at sea that we do not have room to print even the highlights this month. Many people lost their lives at sea this month!! 

But you can read all this month's disaster news at our special Internet web feature which provides full details of each event -- our Vessel Casualties & Pirate Activity Database.  Bookmark the site and visit every day! Updated twice daily.

SPECIAL NOTE:  Please view the dramatic new pictures at our special "Gallery of Cargo Loss" website feature. 

See our feature for Nov. 2003: "Stepping In It" to honor the 2013 passing of the Goodyear Blimps.

See our newest photo feature "Singles Only" - Transportation Disasters Told In A Single Photo!

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. 

NOTE: The historic dangers of carriage by sea continue to be quite real.  Shippers must be encouraged to purchase high quality marine cargo insurance from their freight forwarder or customs broker.  It's dangerous out there.

OUR "D" Section:  FF in Cyberspace***
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>>>>>>

American Airlines ....... how it could bail out of the US Airways merger -- and why it might want to


Cargo Drone Boom: Why Drones Aren't Just for Dropping Bombs Anymore

Megabus ......... over 30 million passengers & carries packages -- who knew?

Supply Chain 247 -- 7 Best Practices That Transform Samsung Supply Chain

Terrorist Attack On M/V Cosco Asia in The Suez Canal, 31 Aug. 2013 ......... the 10,062-TEU vessel was attacked while exiting the north end of the canal.

U.S. Customs and Border Protection Announces Upcoming Enhancements in Automated Commercial Environment (ACE)


C3 Reservations .........web-based dock scheduling

Purdue University -- Lean Six-Sigma Certification Online


Transport Events


Trade Shows, Exhibitions, Conferences & Business Events Worldwide

World Trade Organization Events

6th Optimising Port Development Conference .......... 4-5 Dec. 2013, London

9th IATA Cargo Claims & Loss Prevention ......... 19 - 21 Nov., 2013, Limerick, Ireland

11th Annual European 3PL Summit & Chief Supply Chain Officer Forum ..........12-14 Nov., Amsterdam

Asia Pacific Rail 2014 .....18-20 March 2014, Hong Kong

Air Cargo & Logistics Asia Conference and Exhibition ......... 16-18 Oct. 2013, Singapore

Battleship USS Iowa Veteran's Day ............ 9 Nov. 2013, Port of Los Angeles

Cargo Logistics Canada Expo + Conference .......... 29-30 Jan. 2014, Vanouver, Canada

European International Freight Conference 2013 ........ 21-23 Nov. 2013, London

FIATA World Congress 2013 in Singapore ....... 16-19 Oct. 2013

IATA Legal Symposium 2014....... 23 - 25, Feb. 2014, San Francisco

Intermodal Europe 2013 ......8-10 Oct. 2013, Hamburg Messe, Hamburg Germany

Intermodal Asia 2014 ........1-3 April 2014, Shanghai World Expo Center, Shanghai

Marine Insurance Association of Seattle 2013 Golf & Bowling Tournament and Banquet ........ Oct. 7 2013

SNAME 2013 Annual Meeting & Expo ........ Nov. 6-8, 2013, Hyatt Regency Bellevue - Bellevue, WA

Transport Security Expo 2013 ........13-14 Nov. 2013, Olympia, London UK

U.S. Customs and Border Protection 2013 East Coast Trade Symposium 24-25 Oct. Washington, D.C.

Western Cargo Conference (WESCCON) ......... 17-20 Oct. 2013, Racho Las Palmas Resort, Rancho Mirage, CA

Apps For That - iPhones & Droids>>>>>>>>>

BACtrack Mobile Breathalyzer App ........ your own mobile test facility for the fleet

General Interest>>>>>>>>>

Actor Jimmy Steward ........ amazing WWII training film by the entertainer would became an Air Force Major General

Aeros: First Flight Soon For New Airship Design

Captain Kirk watches Miley Cyrus Performance

Cruise Ship or ?


Exhilerating Video

First Full-Size Helicopter That Takes Off & Lands All By Itself

The Humor of Ronald Reagan

JAL 787 Inaugural Water Cannon Salute At SFO

Maintaining the Ship of Mercy

Mars on Earth The Haughton-Mars Project

NASA Crashes Heleicopter

OMG Landing 

Prison Ship Martyrs' Monument

They Almost Look Real

Tour The Boeing 737 Flight Simulator Built In A Garage

Why Are Cell Phones Banned During Flight?

Why I Want To Win The Lottery

OUR "E" Section:  The Forwarder/Broker World***
  7. New U.S. Transport Related Legal Measures _______  

    ***MAP-21 Enforcement Grace Period Announced.......as the Federal Motor Carrier Safety Administration will be providing a 60-day phase-in period beginning 1 October 2013 for the new operating authority and minimum financial responsibility requirements to allow the industry to complete all necessary filings.  Under 32915 of the "Moving Ahead for Progress in the 21st Century Act" (MAP-21), anyone acting as a broker or freight forwarder and subject to FMCSA jurisdiction, including motor carriers, must register and obtain broker or freight forwarder authority from the FMCSA.  Under 32918, financial security requirements are amended and increased so that all FMCSA regulated brokers and freight forwarders must obtain and file with the FMCSA a surety bond or trust fund agreement in the amount of US$75,000. 

MAP-21 is intended to establish a clear definition of the three types of operating authorities for domestic interstate logistics companies: freight forwarder, broker, and carrier.  As will now be enforced, a freight forwarder is one who assumes carriage liability under a bill of lading but subcontracts the load to a carrier and does not physically perform carriage or operate equipment.  A broker is one who does not assume liability for carriage, does not issue a bill of lading and merely appoints an identified carrier on its customer's behalf as agent.  A carrier assumes carriage liability under a bill of lading and performs physical carriage / operates equipment.  Under the new changes, there will ultimately be separate operating authority numbers for each authority type and the provider is to make clear under which authority it is acting.  Without additional broker or freight forwarder authority, motor carriers will no longer be permitted to fully subcontract or "convenience interline" a load. 

Proper compliance by your operation will not only avoid regulatory penalties but will facilitate a more accurate risk forecast as to legal liabilities.  We encourage you to contact the attorneys at 
Countryman & McDaniel for a consultation <info@CargoLaw.com >            
Written from wire stories, the Associated Press, Reuters, Hong Kong Shipping News Lloyds & other world sources.
The Cargo Letter Correspondents:
Michael S. 
McDaniel, Esq. Editor (Countryman & McDaniel)
Christoph M. Wahner, Esq. (Countryman & McDaniel) 
Daily Vessel Casualties
Bruce Lindsay, Esq. (Countryman & McDaniel)
Maria Jackson (Countryman & McDaniel)

The Cargo Letter_
since 1978)

    A world news service for Air/Ocean Freight Forwarders, NVOCC's, Consolidators, Indirect Air Carriers, Surveyors, Intermodal Shipper's Agents, Inland Carriers, Customs Brokers and Liability& Marine Underwriters world-wide .............a free service to more than 8,000 industry subscribers & readers on 6 continents.
          Michael S. 
McDaniel, Editor.

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The Cargo Letter_ is published by The Law Offices of Countryman & McDaniel:  Legal, Business, Marine Insurance and Claims representation of Air/Ocean Freight Forwarders, NVOCC's, Indirect Air Carriers, Shipper's Agents, Inland Carriers and Customs Brokers......and Liability & Marine insurance Underwriters since 1978 in the United States & world-wide via The Cargo Law Network.  Member, Maritime Law Association of the United States, FIATA and others.

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