Industry News
From The Cargo Letter


Air & Ocean Freight Forwarder - Customs Broker News
28 January 1997

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

Welcome new members of the Air Forwarders Association !!

A Message From Michael S. McDaniel: I am very proud to share the news with each of you that readers of The Cargo Letter now number well over 8,000, a combination of our direct subscribers and those who download from our world wide web site at Interpool Corporation. Given the number of copies distributed on networks, our actual readership is vastly larger, including major universities, governments and research institutes. What began years ago as a modest service to forwarder & broker clients of the Countryman & McDaniel Law Offices at LAX, your The Cargo Letter has grown to a truly world-wide service for the industry. Our web site records reveal that The Cargo Letter has some very interesting readers in some unusual places. In coming editions we'll let you know who they are. Many, many THANKS for supporting The Cargo Letter

Contribute your knowledge, articles & information e-mail to The Cargo Letter .........

Michael S. McDaniel, Editor

NOTE: The Cargo Letter is designed & sized to be read using a 12 point Geneva font on a standard 6 inch e-mail field. The Cargo Letter appears in full color only to our AOL subscribers. Please configure your computer.

INDEX to The Cargo Letter [311] :

  1. OUR "A" Section: FF World Trade, Financial & Inland News
  2. Yantian Prospers As Shippers Save Money
  3. Broker - Forwarder Trade Briefs
  4. Charles M. Schayer, Sr. Dies OUR "B" Section: FF World Air News
  5. FF World Air Briefs
    OUR "C" Section: FF World Ocean News
  6. FF World Ocean Briefs
    OUR "D" Section: FF in Cyberspace
  7. The Cargo Letter "Cyber Ports Of Call"
    OUR "E" Section: The Forwarder/Broker World
  8. A Dangerous Commodities Quiz


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

1. Yantian Prospers As Shippers Save Money

-- by Warren S. Levine, for The Cargo Letter

Jan. 26 -- As the focus of China draws towards Hong Kong, it has also settled on the Port of Yantian. Located in southern Guangdong Province, and within a short drive on relatively modern roads from a major production center, the use of Yantian as a port of loading or discharge can save a shipper a considerable amount of money.

The Chinese have begun pouring money and resources into this and other port areas, with an eventual goal of US$10B in the next five years to improve ports overall.

Traditionally, time-sensitive surface freight from southern China has been trucked to Hong Kong because of the quicker and more reliable transfer to the line haul vessel. However, the cost of this service can be almost as much as, or recently, with ocean freight costs dropping, more than the cost of the line haul itself.

Shippers of goods from southern China can already make good use of China's improvements. The arbitrary from such ports as Chiwan and Yantian -- the "standard" add-on -- over the cost of moving a container from Hong Kong to the U.S. has dropped from US$900 a few years ago to less than half that amount today.

One reason for that: direct calls by major ocean carriers. Not barges. The big ones. Another reason: The Port of Yantian is managed in great part by Hong Kong International Terminals.

Credit the economic foresight of President Jiang Zemin. Despite Beijing's carrying on of the ailing Deng Xiaoping's social policies relative to personal rights, Jiang has given his people much more space in the carrying on of business affairs.

If China continues along the lines of its present economic growth, they will certainly be able to raise that ten billion. If they continue to grant greater degrees of freedom of operation to the foreign investors, look for China to attempt to become a major player in the transshipment business in the coming decade.

[Warren S. Levine is a senior executive with Charles M.. Schayer & Co., Denver, CO.]

2. Broker - Forwarder Trade Briefs

3. Charles M. Schayer, Sr. Dies

-- by Warren S. Levine, for The Cargo Letter

Charles M. Schayer, Sr., prominent Denver Customhouse Broker and president of the company which bears his name, died January 7, at his home in Denver of natural causes. He was 83.

Mr. Schayer was a varsity football player at Denver University in 1934, and a veteran combat officer of the U.S. Army. A Purple Heart recipient, Schayer spent 20 days in a coma and months in rehabilitative care in Utah as a result of injuries sustained in the Pacific theatre during World War II.

In 1946 he founded Charles M. Schayer & Co., the oldest Customhouse Brokerage firm in the U.S. Rocky Mountain region. The company had just celebrated its 50th anniversary in business last December.

Mr. Schayer is survived by his wife Faye; son Charles Jr.; daughter Karen Horton; and six grandchildren. Charles M. Schayer & Co. have offices in Denver, Seattle, Los Angeles and Phoenix.

Editor NOTE: Those of us who were honored to know this vital octagenarian will remember his leadership into the 1990's and that his most cherished possession was the well worn U.S. Customhouse Broker License issued to him as serial "Number 001" for the U.S. Intermountain region. Men like this led the way toward global trade and our industry is less today for the passing of Charles M. Schayer, Sr, CHB. >Michael S. McDaniel


OUR "B" Section: FF World Air News

4. FF World Air Briefs


OUR "C" Section: FF World Ocean News

5. FF World Ocean Briefs


OUR "D" Section: FF in Cyberspace

6. The Cargo Letter "Cyber Ports Of Call"


OUR "E" Section: The Forwarder/Broker World

7. A Dangerous Commodities Quiz

-- by Mike Tobin of the Air Cargo Newsgroup

Industry uncertainty continues in the wake of post ValuJet focus by the U.S. FAA on the regulations applying to Dangerous Goods moving by air. If you think commercial airfreight rules are confusing, we will now visit regulations for hand carried or checked in luggage before you take a little quiz.

The principal rules may be found, as follows:

While there are a maze of rules, It should be noted that air carriers have the right to be even more restrictive than the regulations, and specific carrier variances are published in the ICAO and IATA books as well.

For those wondering about such commodities as duty-free items sold onboard commercial flights; dry ice used in catering; compressed gas in the tires; fuel for the aircraft; aircraft batteries; onboard, required fire extinguishers and so on, they all have their own specific provisions/exemptions as well.

Now please take our quiz (Answers follow) ............(limits per IATA Table 2.3.A):

Question #1: Is it permissible to carry a bottle of 151 Rum onboard the aircraft? How about checking it in your baggage?

Question #2: Is it permissible to put a book of safety matches in your luggage?

Question #3: What is the largest size "medicinal or toilet article" you can carry-on or check? (Meaning such items as hair sprays, perfumes, colognes and medicines containing alcohol.)

Question #4: Can you carry onboard your fresh caught Alaskan King Salmon packed in 5 pounds of dry ice?

How well did you know the regs? Let's See................

Answer #1: No, in either situation. Sorry, the 151 rum must go. Divide the "proof" in half to get the percentage of alcohol. Any beverage exceeding 70% alcohol by volume is considered by the regs to be a flammable liquid and is therefore forbidden to be carried on an aircraft in luggage or brought on by a passenger.

Answer #2: No. They may only be carried on your person (not even in your carry-on). And "strike anywhere" matches are forbidden by air transportation, even as cargo. Have you been breaking the law?

Answer #3: The maximum net quantity cannot exceed 0.5 kg or 0.5 L (1.1 lbs. or 1 pt.), total amount per passenger or crew member 4.4 lbs. or 2 qts.).

Answer #4: Nope, the limit for dry ice in carry-ons is 4.4 lbs. (2 kg). And the packaging must allow for release of the carbon dioxide gas. (Alaska locals recommend people use frozen gel ice packs anyway, they're not regulated, seems to last longer and are reusable.) The fish is OK, at least for now.

Ok, so the next time you'll buy the 151 rum at destination !

Editor NOTE: There was far more industry news this week than The Cargo Letter had room to print. We have tried to bring you the most interesting information.



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