Industry News
From The Cargo Letter


Air & Ocean Freight Forwarder - Customs Broker News
25 April 1997

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

NOTE: After many years of publishing The Cargo Letter as a service to the industry, today marks our first "Double Issue"!. There is so much news and excitement in our industry that a single Internet mailing is not sufficient to contain all the news you need to know. Today you will receive two mailings of The Cargo Letter, Part 1 and Part 2. We welcome your comments, but ask you to bear in mind the many hours of work contributed by our staff in assembling the information and writing the articles featured below.

Because we know that many of our members are located in very remote regions of the world and have limited internet ability, this experiment is designed to determine if problems might be created by this extended format. McD

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

Michael S. McDaniel, Editor

INDEX to The Cargo Letter:

  1. Our Top Story
  2. APL Line Passes The Flag OUR "A" Section: Trade, Financial & Inland News
  3. World Trade Week Approaches
  4. The Cargo Letter Financial Page
  5. Freight Forwarder Trade Briefs
    OUR "B" Section: FF World Air News
  6. Freight Forwarder World Air Briefs
    OUR "C" Section: FF World Ocean News
  7. FF World Ocean Briefs
  8. The Cargo Letter Cargo Damage Dispatches
    OUR "D" Section: FF in Cyberspace
  9. The Cargo Letter "Cyber Ports Of Call"
    OUR "E" Section: The Forwarder/Broker World


Our Top Story

1. APL Line Passes The Flag

-- by Michael S. McDaniel for The Cargo Letter

Oakland - 14 April - It was announced today that Neptune Orient Lines LTD (NOL) and American President Lines will merge, to become a wholly owned subsidiary of NOL. Singapore's NOL will acquire all 24.6M outstanding shares of APL stock at US$33.50 per share in a transaction valued at approximately US$825M.

"The future of the shipping industry belongs to those who have a global vision, and the strategy and critical mass to realize that vision," sai d Mr.Timothy J. Rhein, Pres. & CEO of APL. "Moreover," he added, "this merger in no way lessens APL's commitment to the U.S. flag and American seafaring labor as part of our commitment to the Maritime Security Program (MSP) and the VISA program. Consistent with U.S. maritime policy, we fully ex pect to ensure the continued availability of U.S.-flagged and crewed ships as well as all the network resources of APL for participation in these programs. We expect both companies to realize significant cost savings of at least $130 million annually from the consolidation."

NOL & APL will operate a total fleet of 113 vessels, including 76 container ships with about 200,000 TEUs in total capacity. APL is a leader in the transpacific and intra-Asia trades (approx. 10% of trade), while NOL is very strong in the Europe-Far East trade, as well as the Far East to U.S. trade via the Atlantic. Combined revenues will exceed US$4.0B, ranking NOL/APL among the world's largest carriers.

Following the merger, APL will retain its name and brand in the industry. It and some 4,000 employees will continue transportation operations, headed by its existing management at the Port of Oakland, Calif.

Mr. Lua Cheng Eng, Deputy Chairman & CEO of NOL noted that close economic & security relations have long existed between Singapore and the United States. Under a 1990 Memorandum of Understanding (MOU), Singapore prov ides important support, including major facilities to U.S. forces in the region (after the close of Subic). Several of NOL's vessels were chartered to the U.S. Navy for sealift support during Operation Desert Storm. The Board of Directors of APL will recommend approval of the acquisition at a shareholder meeting to be held later.

As with the earlier P&O-Nedlloyd merger, NOL and APL are in different alliances. NOL is in the Grand Alliance, while APL is in the Global Alliance. NOL says alliance commitments will be honored but it is widely expected that both NOL-APL and P&O Nedlloyd [P &O Container Lines] will have to decide between the two groups. [Ed Note: Indeed, it was learned last week that the P&O-Nedlloyd group had also been set to bid for APL.]

APL is the oldest continuously operating U.S. carrier, carrying the U.S. flag to the Far East in the late 1860's and serving her country in times of crisis for over 100 years. Other APL accomplishments include:

1848 - The Pacific Mail Steamship Company starts mail service between Panama and U.S. Pacific Coast. To China in 1867.
1938 - Company renamed American President Lines to celebrate its tradition of naming ships after U.S. Presidents.
1951 - APL acquires 1000 small containers and introduces them into trans-Pacific service.
1973 - First fully containerized vessels enter the APL fleet.
1975 - APL establishes subsidiary to offer international cargo consolidation services.
1979 - APL starts first dedicated express container train across the U.S.
1982 - 45-foot container first introduced by APL, followed shortly by the first 48', 53' and first microprocessor reefer containers.
1984 - APL inaugurates first scheduled double-stack rail (StackTrain) service and introduces worldwide on-line cargo tracing for customers.
1988 - World's first "post-Panamax" containerships enter trans-Pacific service for APL.
1995 - APL enters into Global Alliance agreement, expands into Asia-Europe and Asia-Latin America trades.
April 1997 - In an ironic and historic move, APL "returns to its 1848 roots" with announcement this week of direct container service between the U.S. East Coast and Panama, with connecting services to/from Costa Rica, Colombia and Venezuela ......... its first service in modern times to link North America with a trading region other than Asia.

Thus APL is once again a North/South carrier ......... but under whose flag? McD


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

2. World Trade Week Approaches

-- by Michael S. McDaniel for The Cargo Letter

LAX - 22 April -- When World Trade Week kicks off on 1 May, it will mark 71 years since the observance was "invented" at Los Angeles in 1926. At the time it would have been difficult to predict that:

Although World Trade Week went nationwide in 1935, it still finds it's home in The City of Angels. An impressive range of events for 1997 will span the entire month of May as participants gather in Southern California from around the globe. Full details are now available at "TradePort", the greatly enhanced web site of the Los Angeles Area Chamber of Commerce. This is "The Premier" international trade website with over 150,000 guest visits each month ...

Now available is the "1997-1998 World Trade Information Guide" with listings of all organizations, current world trade stats and info on World Trade Week's activities. "This is the most comprehensive guide for the small business person and a great asset to larger companies who are now considering the international market," according to organizers. Your free guide is available, by sending a self-addressed business sized envelope with $US0.78 cents in U.S. postage affixed to:

World Trade Week - Southern California
The Guide
c/o L. A. Area Chamber of Commerce
350 S. Bixel Street
Los Angeles, California 90017

3. The Cargo Letter Financial Page

Given that this is "First Quarter Earnings Season", we present a new feature which provides you with the highlights of "who is doing what" in our industry.

4. Freight Forwarder Trade Briefs


OUR "B" Section: FF World Air News

5. Freight Forwarder World Air Briefs


OUR "C" Section: FF World Ocean News

6. Freight Forwarder World Ocean Briefs

7. The Cargo Letter Cargo Damage Dispatches

Sadly, and as usual, it has been a very unfortunate 3 weeks where losses at sea are concerned. We limit our report to cargo vessels with..........

1.] The M/V Cis Brovig (Norwegian-registry containership) collided on 25 March with M/V Oriental Bay (British-registry containership) in the Elbe River. The Cis Broving had a steering failure. Both ships sailed to Hamburg, Germany, for repairs;

2.] M/V Tayabas Bay, sailing from Dipolog to Dumaguette in the Phillipines, was assisted by the Philippine Navy on 26 March after it developed engine problems and began drifting near Siaton Point;

3.] also on 26 March M/V Cita (Antigua & Barbuda-registry cargo vessel) has been declared a total constructive loss by its hull insurers, as while sailing from Southampton, England, to Belfast, Northern Ireland, with 220 containers it ran aground early 26 March off Newfoundland Point in the Isles of Scilly and all crew abandoned the ship (1 suffered a broken leg) with some 100 containers lost overboard, laiden with clothing, tires, tobacco & vehicle batteries;

4.] The bodies of 4 Greek Navy personnel were recovered on 29 March from the Antipliarchos Lascos-class Guided-Missile Patrol Boat H.S. Antipliarchos Kostakos (P 25) after its sinking at 1845 on 4 Nov. from a collision with M/V Samaina (Greek-registry ro/ro);

5.] M/V Tanto (Norwegian-registry 1,003-gt general cargo vessel) ran aground near Rovdeforden, Norway, on 30 March, while sailing from Kristiansund to Spain with 600 tons of dried fish and was refloated by the salvage vessel M/V Mega Mammut;

6.] M/V Tzanetis (Cypriot-registry freighter) collided with the CII Carbon docks in Chalmette, La., late 1 April, with minimal vessel damage, and severe dock damage;

7.] M/T Osung No. 3 (South Korean-registry tanker) sank the night of 3 April after running aground on a reef off Koje Island, South Korea least 27 vessels are working to contain the resulting spill;

8.] also on 3 April..... M/V Pol America (Polish-registry containership) lost 23 containers overboard in heavy winds and seas up to 30 feet off Nantucket Island, Mass. Most of containers apparently sank, but at least one, carrying candy, washed ashore on the eastern section of the island, including thousands of Hershey Kisses, Tootsie Rolls and other candy;

9.] also on 3 April M/V Dennis Danielsen (Cypriot-registry cargo vessel) sent out a broadcast that its cargo had shifted during a storm in the Cabot Strait, resulting in a Canadian Air Command C-130E Hercules contacting the ship for assitance off Newfoundland;

10.] on 5 April fire destroyed two vessels and damaged a third at Zamboanga City, the Philippines. The wooden-hulled M/V Petron was destroyed when fire began in the vessel's engine at 0530. Massive explosions were heard up to 4 miles away. Three crew members suffered serious burns and as many as 10 other crew are missing (7 now confirmed dead). The fire was fueled by the vessel's cargo, which included 250 tanks of liquefied petroleum gas & 13,000 gallons each of diesel fuel, gasoline and other petroleum. A research vessel operated by the Western Mindanao College of Fishery and Marine Sciences and the Philippine Department of Science and Technology was destroyed by the spreading fire. Also, a vessel owned by Fortune Navigation Lines, unloading rice, was damaged;

11.] on 6 April a fire began on the forward deck of M/V Tiger Wave (Singaporean-registry container ship) in the southern Andaman Sea and was brought under control;

12.] on the night of 7 April, M/V Edward L. Ryerson ( U.S.-registry 730-foot "classic Laker"-design bulk carrier.) suffered a turbine failure due to boiler problems five miles off shore between Milwaukee and Port Washington, Wis.;

13.] M/V Woo Yang Friend (Panamanian-registry dry cargo ship) collided with M/V TA-Explorer (Liberian-registry) off Fukuyama, Japan, at 2330 hrs. on 8 April, resulting in minor crew injuries;

14.] M/V Rinos (Cypriot-registry dry cargo ship) suffered a fire in its No. 1 cargo hold while unloading general cargo at Apapa-Lagos on 8 April;

15.] M/V Green Flake (Maltese) took on water 10 April, northwest of Scotland while carrying frozen fish from Inverness, Scotland, to Iceland and was saved after a helicopter dropped pumps to the ship;

16.] also on 10 April, a barge sank near Texas City, Texas, partially closing the Houston Ship Channel;

17.] also on 10 April, a sophisticated mobile crane collapsed at the Port of Los Angles while hoisting a 63,000 kgs Korean factory module from the No. 3 hold of M/V National Dignity (Madregal Line), causing both crew injury and total cargo damage into the millions of U.S. dollars. Pacific area cargo attorneys Countryman & McDaniel of LAX are investigating the loss;

18.] M/T Formosa Six (Liberian-registry tanker), carrying ethylene dichloride, and the bulk carrier M/V Flora, which was empty, collided 0115, 12 April in the Gulf of Mexico, 2 miles south of the Southwest Pass of the Mississippi River. Some of the tankers cargo spilled, but evaporated quickly and broke down in the atmosphere;

19.] M/V Toba (ro/ro operated by Wilhelmsen Lines) struck a Paceco container crane at the White Bay wharf in Sydney, Australia, on 13 April;

20.] M/T Pampero (St. Vincent and the Grenadines-registry tanker) broke in half and sank 6 miles off Guanabo, Cuba, at 1420 14 April. The vessel was sailing in ballast from Matanzas, Cuba, to the Nico Lopez oil refinery in Havana. At least 3 explosions and a fire were reported before the ship broke up. Eighteen of the crew members, some of them injured, were rescued, one was killed and five, including three Romanian deck officers and the Romanian master, are missing.;

21.] also on 14 April, M/V Arad (Romanian- registry dry cargo ship) ran aground at the outer entrance to the Port of Novorossiysk, Russia;

22.] M/V Pelfisher (Maltese-registry containership) collided with M/V Sun Pegasus (Romanian-registry containership) while docking at Hayderpasa in Istanbul, Turkey, on 16 April;

23.] also on 16 April, M/V Svendborg (Antigua and Barbuda-registry dry cargo ship) ran aground at the approaches to the Port of Goole, England, on 16 April;

24.] M/V Algolake (Ca nadian-registry bulk carrier) ran aground the night of 17 April approaching Algoma Steel while downbound in the St. Mary's River with taconite and is taking on water with damage to the No. 1 and 2 ballast tanks, current condition unknown.

[Ed Note: Our international cargo industry is uncertain by nature. Protect your business and encourage your customers to purchase quality Marine Cargo Insurance from a quality marine underwriter such as Intercar go Insurance Company ...... 800.338.4904]

Update on M/V Cita ....... as the Antigua & Barbuda registry 3,083-gt, 3,900-dwt, 241-TEU cargo vessel, owned & operated by Reederei Gerd A. Gorke ran aground early 26 March west of St. Mary's off Newfoundland Point in the Isles of Scilly, and then slipped off the rocks into deeper water on 9 April in bad weather. The ship was carrying containers from Southampton, England, to Belfast, Northern Ireland. The salvage vessel M/V Salvage Chief, has recovered 98% of the petroleum & paint aboard the Cita, but these salvors are now waiting for word on what to do with the ship, which has been declared a total constructive loss by its hull insurers.


OUR "D" Section: FF in Cyberspace

8. The Cargo Letter "Cyber Ports Of Call"

Air Cargo Page Update ........ as the MTA-IC Home Page has recently been expanded with over 1000 air cargo related links to:

* Airports
* Airlines
* Cargo Airlines
* Air Forwarders
* Air Cargo Organizations
* Air Cargo Services
* Air Cargo Periodicals
* Related Newsgroups

Air Cargo Lines .........searching for their web sites.

1997 Seaports of the Americas ........ annual publication of the American Association of Port Authorities. Links to ports info.

Port of Hong Kong 1997 ........... as the latest Hong Kong port handbook is available free from the Marine Department to companies and persons connected with the shipping industry.

Spanish Freight Forwarders ....... ANATRANS Federacion Nacional de Agencias de Transporte de Espana (Freight Forwarders Association Spain)

Status On UPS Pilots Strike Threat? .......try the Independent Pilot's Association, who will be taking a strike vote starting next week.

Safcor Freight ........ one of Southern Africa's largest and longest established freight agents.

Unisys Transport Site ........ designed to help Unisys Transportation clients successfully implement strategies & solutions to increase competitiveness in the world market and offering links to the Int'l Airline Transport Association (IATA) and key organizations in the industry.

Business Seek .............. a free search engine lets you find companies from all the world by name, country, activity, etc. Listing provides company Web site, e-mail, postal address, fax, telephone, activities, products, languages spoken, and description of services.

USITC Releases Confidential Trade Report ........... as the U.S. International Trade Commission (ITC) just released a public version of its "confidential report" to the U.S. Trade Representative (USTR) titled Advice on Providing Additional GSP Benefits for Least Developed Countries.

FAA Air Traffic Control Training Division

Relocating Your Staff Members? ................. if so, make it easy with the Virtual Relocation library of selected links to a wealth of great information. Resources here include everything from real estate & relocation to careers, education, travel, taxes, insurance, mortgage, rentals and much more. (U.S. cities)

Good Talk On Today's Sales Call? ............ use the "Daily-A-Day" history e-mail list which provides one memorable historical event by each day, with a unique feature of links for further information. To obtain a free subscription, just mention The Cargo Letter and send e-mail to:

Search For Internet Domain Availablity ...... there are many Internet search engines for this information, however, this is the most useful.


OUR "E" Section: The Forwarder/Broker World

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