Industry News
From The Cargo Letter


Air & Ocean Freight Forwarder - Customs Broker News
9 June1997

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

Contribute your knowledge & information ........ by e-mail to The Cargo Letter. We strive to bring you useful information which is timely & topical. Be sure to visit our web site ..........

Michael S. McDaniel, Editor

INDEX to The Cargo Letter:

  1. OUR Top Story
    OUR "A" Section: Trade, Financial & Inland News
  3. Customs Outbound Compliance Now In Effect
  4. Freight Forwarder Trade Briefs
  5. The Cargo Letter Financial Page
    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 Top Story


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

JUNE 5 -- It was no surprise that over 50,000 Hong Kong residents held a candlelight vigil to honor the students who were killed in Beijing. But the early release by Beijing of a prominent dissident from a forced labor camp on the anniversary of the Tiananmen Square Massacre knocked international observers for a loop Wednesday.

Bao Ge, co-founder of the pro-liberties group Voice of Human Rights, was released from a forced labor factory in Dafeng, Jiangsu Province, where he made soccer balls for export, according to a report by the Associated Press. Upon his release, Bao said that he plans to form a political party called the Citizens Assembly Party. Most of the other vocal protesters of Tiananmen Square have been jailed or otherwise purged.

In Hong Kong, an estimated 3500 marchers carried banners and placards through the streets of the Central district to the headquarters of Xinhua News Agency, the unofficial Chinese embassy in Hong Kong. The demonstrations were peaceful, although Tung Chee-Hwa, who will assume leadership of Hong Kong under Beijing's appointment, opposed them.

In a statement to the press Wednesday, Tung said, "Some people have continued to persist on the issue of June 4. Perhaps they should look forward." However, he has not specifically banned further demonstrations once Hong Kong reverts to Beijing control.

The former shipping tycoon further stated, "We must not become a base which will threaten the existence of our country." Beijing has warned Hong Kong against becoming a "base of subversion" and has already outlawed rival political parties, foreign contributions and free demonstrations in what will become a Special Administrative Region of the People's Republic of China.

Forty-one relatives of people killed at Tiananmen Square signed a public petition urging the Beijing government to punish those accountable for the murders. This is the highest number of signatories ever to this annual petition. China has lent a deaf ear to such requests, and holds to their statement that violent action was taken to quell a counter-revolutionary demonstration which threatened the stability of the country.

To support this, the government publishing ministry put out a large-format paperback edition entitled "The Truth About the Beijing Turmoil," in which the picture which appeared in the world's press of a bicyclist who was crushed by a tank is captioned to the tune of "Army troops used utmost restraint in turning back the demonstrators." The volume was printed in English, and is available in many international hotel gift shops in China.

The setting for a televised debate on the subject of future demonstrations drew angry protesters on both sides of the issue. However, the only violence reported was at a rally held in Tokyo at which former student leader Wu'er Kai Xi spoke. A demonstrator attempted to run his car through a row of police cars, but was stopped before causing any injuries to the crowd. The driver and another man were arrested.

Many people showed up at this year's Hong Kong memorials for the first time, stating that they wanted to experience the opportunity to participate in just one demonstration before China assumes control of the colony at midnig ht on June 30.

In Taiwan, demonstrations were peaceful. However, just so Beijing doesn't focus all its attention on Hong Kong, Taiwan announced a series of war games (sound familiar?) to be started on June 23rd in the southern part of the island.

A senior military spokesman in Taiwan said that, "Although the exercises are held close to Hong Kong's handover to Communist China, please do not link the two things together."

Taiwan will test new American F-16 aircraft and missiles, in addition toMirage 2000 fighters acquired from France. They are also expected to try out their upgraded M60A3 tanks and their new French-made "stealth" warships, so named for their ability to evade radar. And so it goes.

[Ed. Note: Read more about Hong Kong at our The Cargo Letter "Cyber Ports Of Call" page, in Part 2.]


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

2. Customs Outbound Compliance Now In Effect

Washington - 7 June -- Gone are the days when the humble SED (Shipper's Export Declaration) can be so thrown together that estimates provided to The Cargo Letter from Dept. of Commerce sources in 1996 suggested some sort of error in over 20% of all filings. On 1 June 1997, the Outbound Compliance Program became mandatory .

Customs' new Outbound Compliance Program has now moved from the 'Informed Compliance' phase which began on 1 Feb., to the 'Enforced Compliance' phase in which the agency will begin to enforce compliance with Shipper's Export Declaration (SED) & manifest requirements. Now, when Customs detects a first violation, it will inform the carrier verbally about the problem. Any 2nd violation detected by Customs will result in both a verbal warning and a formal letter of non-compliance. Any 3rd violation and all which follow will result in penalties and/or bond review as Customs deems appropriate.

At the penalty stage, carriers are subject to fines up to US$1,000 per violation if SEDs are filed late. The American Shipper magazine has suggested that carriers many simply accept fines as the price of doing business because paying the fine is easier than losing a customer's freight. Indeed, U.S. Customs says that enforcement focus will be on carriers ......... at the beginning.

The U.S. Bureau of Census, which is responsible for ensuring exporter and freight forwarder compliance with SED requirements, has established a world wide web site to help you & your customers with the following tips and instructions:

  1. Correct way to fill out the SED (with samples);
  2. Telephone numbers providing SED assistance;
  3. Table of Forms & Guide.

3. Freight Forwarder Trade Briefs

4. The Cargo Letter Financial Page

The 1ST Quarter 1997 Results

Fiscal Year End Results


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

As you will see ........much has happened since our last edition.......
1.] on 6 May A sailor & two 18-year-old women (twins), thought to have died after jumping overboard from the M/V Bunga Terasek on 5 Feb. off Australia, were found 6 May on Cape York Peninsula near Coen, Queensland, Australia;
2.] on 7 May M/T Ming Hui (Chinese) and the M/V Soon Li Fa (Panamanian) collided in the South China Sea southwest of Hong Kong. The crew of the Ming Hui was rescued after the vessel caught fire and sank the next day;
3.] on 7 May M/V The Lubo No. 2 ((Singapore)) collided with the M/V Yucheng (Chinese containership) and sank on in thick fog, in a narrow channel between islands near Dalian, China, with 15 trucks and 73 people aboard. There are 7 dead;
4.] on 10 May South Korean containership M/V Jang Yung sank after being in a collision, in thick fog off the Korean coast, with the cargo ship M/V Lucky Star. The Jang Yung's containers (with YOUR freight) posed a navigational hazard;
5.] also on 10 May M/V Tobias (U.S) capsized and sank 600 feet offshore near Morgan City, La., after hitting a Chevron Corp. satellite petroleum well;
6.] on 11 May M/V Sofia (Finnish general cargo ship) ran aground off Helsingborg, Sweden while sailing with containers from St. Petersburg, Russia, to Rotterda;
7.] on 14 May M/V Jang Yung Lotus (South Korean), sailing from Pusan, South Korea, to Moji, Japan, with general cargo in containers, was in a collision with the M/V Lucky Star (South Korean.). The bow of the Lucky Star hit the Jang Yung Lotus on the starboard side, puncturing the No. 2 cargo hold. Conditions in the area included dense fog. The M/V Jang Yung Lotus sank soon after near Pusan. A small fuel spill was reported and some of the Jang Yung Lotus' 45 containers were reported afloat;
8.] on 15 May the U.S. Coast Guard cutter USCGC Cowslip and the container ship M/V Evergrade (Evergreen Line, bound for Tokyo) collided 10 miles up the Columbia River in heavy fog, slightly injuring one crew member, damaging both vessels and spilling diesel fuel into the Columbia River;
9.] REPORTED 16 May that the M/V Kapitan Man (Russian), operating in the Strait of Juan de Fuca in Washington, used a laser against a Canadian Air Command CH-124A Sea King on 4 April. The two aboard, a Canadian Air Command pilot & a U.S. Navy officer, reportedly suffered eye burns and were temporarily blinded at midday 5 miles N.W. of Port Angeles, Wash. The ship was searched at Tacoma, Wash., by the U.S. Coast Guard on 7 April, on its route between Tacoma, Los Angeles and Vladivostok, Russia. Nothing was found. Protests have been made with the Russian government. Allegations say that the ship was a "spy vessel," recording the transit of the U.S. Navy's lead vessel of the U.S.S. Ohio (SSBN 726)-class Nuclear-powered Ballistic Missile Submarine, based at Bangor, Wash. M/V Kapitan Man has an unusually large number of antennas aboard.
10.] On 21 May, COSCO's M/V Yan He (725-TEU capacity containership of COSCO Container Lines) collided with a fishing vessel on the Chao Phraya River in Thailand, and 10 aboard were killed when the vessel capsized;
11.] On 21 May police found the M/T Daniel, carrying 1,300 tons of fuel, aground in the delta of the Maas/Rhine River. After freeing herself, it was observed that the vessel could not maintain a straight course, and it was stopped and boarded. The master was drunk, and was not allowed to proceed for another 8 hours.
12.] on 22 May a 25-year-old man fell overboard from the M/V Hedda (Liberian containership) 1,000 miles S.E. of Norfolk, Va. Two HC-130H Hercules aircraft from Coast Guard Air Station Borinquen, Puerto Rico, searched an area the size of Delaware. No luck.;
13.] on 22 May M/T Coastal Eagle Point (U.S. tanker built in ran aground 22 May in Tampa Bay, Fla., after a steering casualty. The tanker was carrying 280,000 barrels of No. 6 fuel oil. There was no spill, and the ship was refloated;
14.] on 24 May the tug Venture (U.S tug built in 1922) had trouble at the compensating works of the Soo Locks on the Canadian/U.S. Great Lakes. The tow capsized when it was pinned against the gates by the current and during attempts to free the vessel, it rolled. All crew members were able to get off the tug before it capsized.
15.] on 25 May M/T Mes I (Honduran tanker) had an explosion & fire in its engine room while anchored near Sultan Shoal off Singapore. Two crew members were killed and three were injured. The crew abandoned the ship and were rescued by a supply vessel;
16.] also on 25 May M/T Elisa D'Alesio (Italian tanker) caught fire off Sardinia, Italy, with 350 tons of fuel aboard. The crew abandoned the ship and were rescued, while tugs worked to extinguish the fire;
17.] also on 25 May M/V Wana Naree (Thai) lost power in the Panama Canal after having entered the system at Balboa, Panama. The ship ran aground between Buoys 80 and 82. It was refloated by Panama Canal Commission tugs and escorted to Gamboa for an inspection;
18.] on 26 May M/V Wakeke (Indonesian) caught fire while under repair at Tanjung Priok, Indonesia. The three people aboard were rescued. Tugs towed the Wakeke 4 miles offshore and the ship last reported still ablaze;
19.] On 28 May, Sri Lanka Navy vessels intercepted several boats of the Liberation Tigers of Tamil Eelam (LTTE) north of Trincomalee, Sri Lanka. Seven vessels were destroyed and 50 people killed;
20.] also on 28 May M/V Atrotos (Bahamian general cargo ship) ran aground in the Elbe River between Buoys 11 and 13 on 28 May;
21.] on 29 May M/V Athena (Greek.) was damaged 29 May while anchored in the outer harbor of Tincomalee, Sri Lanka. The ship, with 52,000 tons of wheat, had sailed from Necochea, Argentina. An underwater explosion flooded the engine room;
22.] on 2 June M/V Yani Express, with 62 aboard, sank off Pulau Muda, Sumatra, Indonesia, killing 14 and 20 are missing;
23.] on 4 June M/T Daqing No. 243 (Chinese) sank in the Changjiang River in China following a fire in its No. 3 cargo tank and leaving 8 missing;
24.] On 4 June M/T Gole (Turkish) exploded and caught fire - status unknown; ..................and there were even more incidents we had no room to tell you about in this edition of The Cargo Letter.

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.


OUR "D" Section: FF in Cyberspace

8. The Cargo Letter "Cyber Ports Of Call"

The Cargo Letter's Site of The Week

Hong Kong 1997 ......The Return To China
A bilingual site from China Internet Corp. (CIC), to celebrate Hong Kong's return of sovereignty to China, with a pictorial history, background, archives, events, & an online encyclopedia.

Hong Kong Stock Market

Our Other Cyber Ports of Interest

Country Desk Office Phone Numbers ........... Travel warnings & Consular Info.

U.S. Customs-Administered User Fees

Asia-Pacific Economic Cooperation (APEC) ....... Tariff Database

Center For Taiwan International Relations (international)

U.S. Statistics Site (FedStats) ......... links users to statistics gathered by 70 agencies on topics ranging from agriculture to transportation to the Census Bureau.

Holidays Around The World ......... is a must for your international business. Know when gov't offices are closed., when to send a gift, etc.
For an e-mail list each month, write: to

Credit Reports For Chinese Companies (not authenticated)

The World Guide 1997/98 ........... alternative reference to the countries of our planet. Up to the minute information on 217 countries. Global maps together with illustrated graphs & statistics of key global issues.

World's Chambers of Commerce Directory ......... the 1997/98 edition includ es addresses of all the chamber of commerce in more than 200 countries. (More than 300 Pages and 3000 listed, with many details)

WTO Dispute Settlement Activities ....... summary of the World Trade Organization's (WTO's) dispute settlement procedures.

Unisys Corp.'s Worldwide Transportation Market Sector Group ........a service from the computer giant to our industry.

New Contest From Mariners' Museum the Newport News, VA. organization has announced its "3rd Maritime Puzzler Contest. Just go to the site and attempt to identify the random photograph selected from the archives of more than 400,000 images. The first 3 entries which correctly identify the photo will win a free "Electronic Postcard"

Maritime Research ........ as The Mariners' Museum has announced that the Research Library Card Catalog is searchable for FREE with approximately 8,000 volumes of books represented. Nearly 90% of the 75,000+ volumes will be uploaded this summer.

Roadway Express ........ Small Business Resource Center to help these businesses navigate and locate information on the World Wide Web.

Aeronet Worldwide ......... air / ocean forwarder, with HQ at Irvine, CA. Web site with full tracking capabilities.

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