THE CARGO LETTER 
Air & Ocean Freight Forwarder - Customs Broker News
17 February 1998
Good Tuesday Morning from our Observation Deck...... overlooking the
officially designated "Cargo City" area and....... Runway 25-Right, at
Los Angeles International Airport.
Contribute your knowledge, stories & company 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 .......... http://www.interpool.com/cargo.
shtml (This is a "Hot Link" for AOL users.)
Michael S. McDaniel, Editor & Publisher, Countryman & McDaniel,
forwarder/broker attorneys at LAX.
INDEX to The Cargo Letter:
OUR Top Stories
1. LAX Master Plan Gets Wide Support
2. The Freight Detective Is Born
* "He Never Sleeps"
* New Service From The Cargo Letter
OUR "A" Section: Trade, Financial & Inland News
3. Freight Forwarder Trade Briefs
4. The Cargo Letter Financial Page
OUR "B" Section: FF World Air News
5. Freight Forwarder World Air Briefs
OUR "C" Section: FF World Ocean News
6. FF World Ocean Briefs
7. The Cargo Letter Cargo Damage Dispatches
OUR "D" Section: FF in Cyberspace
8. The Cargo Letter "Cyber Ports Of Call"
OUR "E" Section: The Forwarder/Broker World
9. Proposed Amendments to 19 CFR 171 & 172
10. Forwarder - Broker February Holidays
LAX -- The 19 member Assn. of Asian Pacific Airlines (AAA) whose carriers
serve 35% of all Intel passengers at Los Angeles International Airport, have
announced passage of a resolution supporting the LAX Master Plan due to La's
unique Intel role as "The Premier Gateway" between the United States
and the fast- growing nations of the Asia-Pacific region. AAA is monitoring the
LAX Master Plan closely because Asian-Pacific carriers recognize that
modernization of LAX is the only international airport project on the U.S.
horizon for the foreseeable future.
Los Angeles World Airports (LAW) has recently eliminated 2 of 4 concepts
proposed for the LAX expansion project, being 1.] use of Hawthorne Airport for
commuter operations, and 2.] concepts calling for the development of a new
commuter runway in the sand dune area West of the airport.
The two remaining concepts have several features in common, including:
- Construction of 1 or 2 additional runways, to allow airport operators
greater flexibility in scheduling aircraft arrivals & departures for
maximum safety, efficiency & noise reduction.
- An automated people-mover, which will help passengers get to & from
gates, and connect with parking & local transport services
- Expanded cargo capacity, which benefits the regional economy by virtue of
the fact that one ton of air cargo is, on average, 80 times more valuable
than one ton of cargo shipped by sea.
- A new terminal facility with parallel concourses for aircraft gates,
located to the west of the existing terminals.
- A new western entrance to the airport terminal area to improve traffic
- A `ring road' surrounding the airport, linked to the regional transport
network, which will keep traffic off local & residential streets, and
better manage cargo flow in and out of LAX.
LAW Exec. Director John J. Driscoll said "LAX operations are currently
responsible for rate an economic impact of nearly US$43.5B annually. The LAX
Master Plan would contribute an additional US$37B to the regional economy and
create an additional 367,000 jobs. The Master Plan seeks to accommodate a
forecaster growth from 58 million annual passengers in 1996 to 98 million by
2015, and in air cargo from 1.9 million annual tons to 4.2 million." L.A.'s
- "He Never Sleeps"
- New Service From The Cargo Letter
LAX - 17 Feb. -- The Forwarder - Broker attorneys at The Law Offices of
Countryman & McDaniel have added a new feature to their world wide web
service site which is designed to provide users with an all-in-one tool, capable
of meeting virtually all the research & reference needs any business or
personal user might have. "There are many great transport sources available
on the web these days", said a firm spokesman, "but we wanted to
create something entirely different, a site which converts forwarder/broker
desktops into powerful investigative tools for daily use." Following
tremendous effort, The Freight Detective was born. The site is a "One
Stop" for almost anything which anyone might want to know. Use of the site
is designed to improve work efficiency for completion of daily information
"The Freight Detective" welcomes users to undertake two lines of
investigation. There are "General Investigations" where daily
inquiries are made easy, and "Transport Investigations" which pertain
directly to our industry.
"The Freight Detective General Investigations" allow effortless
access to hundreds of services. A few examples are:
- Encyclopedia, dictionaries, thesaurus & writing tools;
- Full Featured Reference Desk;
- Int'l language translators;
- All major search engines & data bases of the Internet;
- Locator engines to find people & businesses;
- Telephone directories, including reverse directories;
- Exchange rate calculator, corporate & business search tools;
- Instant Map Makers - directions to your next appointment;
- Live Port Cameras - watching industry conditions LIVE!;
- Legal resources, search engines & free court forms;
- Medical resources & drug/medicine data bases;
The new service also has a personal side at "The Freight Detective's
- World's largest directory of gourmet recipes;
- Short Courses on wine & cigar appreciation;
- Gourmet food & wine search engines;
- Finder of the best vacations
"The Freight Detective" will continue to add a wide variety of new
features in coming weeks. The site may be found under "The Manifest"
of services at: http://www.cargolaw.com
- Banks "R Us .......... as Danzas North America has
expanded its U.S. export finance program, "Cash Forwarding", to
include import financing. Heller Financial will be the lender to the
importer, providing cash advances to pay for imported goods. Danzas will
manage the program from inspection, payment & delivery of goods. Upon
inspection approval, Heller advances the full invoice amount to the supplier
& Danzas picks up the goods. All transport costs, including insurance,
inspection & import duties are advanced. The importer must repay the
total advance amount, plus interest and a transaction fee, to Heller 60 to
120 days later. Rates will vary, depending on projected import volume &
customer credit histories. Danzas said the total cost will generally be less
than those of an L/C.
- End to NAFTA Dispute Panels? ......... as U.S. industry
associations, such as the American Textile Manufacturers Institute, the
Western Wood Products Association, the Nat'l Assn. of Wheat Growers &
companies such as Bethlehem Steel, have joined to combat the
dispute-resolution provisions of NAFTA and to press Congress to exclude such
provisions from future tr mmerce.
- Trade Insurance Vows To Be "F.A.S.T." .........
as Trade Insurance Services, a subsidiary of Intercargo Corp., has announced
a new initiative in the providing of specialized insurance coverages to
companies involved in international trade -- Flexible Account Services Teams
-- or "FAST", gives both domestic & Int'l customers dedicated
service from a team of specialized personnel with direct access to specific
assigned underwriting, sales & claims executives. The system will
greatly accelerate response time for customer needs. Sixty "FAST"
teams will operate from Trade Insurance Services offices nationwide.
"We developed this program," says Trade's Pres. Bob Kielbas,
"to capitalize on our agency's unique ability to serve customers not
only through their account executive but also by providing access to
experienced underwriting & claims professionals." The new system
allows customers to directly work with decision-makers, bringing flexibility
& timeliness to insurance & risk management issues.
- UPS Mgr. Awarded US$80M ........... as a civil jury has
awarded former manager Linda Channon $80.7 million on claims that UPS
sexually discriminated and then retaliated when she complained. The divorced
mother (47) of 3 grown children, said she was poked in the breast by a
driver under her supervision during an argument in 1993. The driver was
fired but was then rehired and began stalking her, said Roxanne Conlin, her
attorney. Channon, who left the company in 1996, said UPS moved her from job
to job, shunning & excluding her from meetings and giving her
assignments that men were not given. UPS was ordered to pay US$500,000 in
compensatory damages and US$80.2 million in punitive damages. Under a
federal law that would apply to the verdict, however, Channon would be
entitled to no more than US$300,000 in punitive damages.
- Customs To Focus On Drugs ........ as an article in the
Journal of Commerce last month reported that after almost a decade of trying
to balance a dual mandate of trad ilitation & law enforcement, U.S.
Customs says it will now make enforcement, specifically drug interdiction,
its top priority ........ under "Operation Brass Ring". U.S.
importers & Customs brokers should well expect increased inspections of
imports and delays in clearing cargo, according to the article.
- U.S. Customs Scrutiny On Auto Exports .......... as it
moves to stem the export of stolen cars. U.S. Customs has proposed new rules
for exporting new & used vehicles. Exporters must now present the
original or certified copy of the title as proof of ownership of the car to
be exported. Notarized forms are no longer accepted. When a car to be
exported is owned by a foreign national & registered in a foreign
country and no title is available, Customs will require some other
satisfactory proof of ownership. For leased cars, the new rules would
require the exporter to show a letter from the lienholder or owners stating
that they have knowledge of the export. Another rule change requires
documents to be faxed or delivered to Customs at the port of exit at least
72 hours prior to export.
- Customs May Raise Textile Sample Limit ......... as trade
sources report that at a recent meeting of the Committee for the
Implementation of Textile Agreements (CITA), a decision was made to raise
the maximum value for properly marked commercial sample shipments of
textiles & apparel above the current maximum of US$250 to an expected
level of US$800. Currently, properly marked commercial sample shipments of
textiles & apparel, valued at $250 or less, from certain countries, do
not require a Visa or exempt certification and are not subject to quota.
- EU Not A Place ........ as it is still U.S. Customs'
policy that articles originating in the European Community (EC) may not be
marked with 'European Community' or 'EC' as the country of origin, but must
be marked with the names of their country of origin for importation into the
U.S., pursuant to Customs' country of origin marking requirements &
exceptions forth in 19 CFR Part 134.
- Roadway Express CHB ........ as the trucker and its
subsidiary Reimer Express Lines are the 1st LTL motor carriers to fully
integrate their customer information systems with Canadian Customs'
"Release Notification Systems" (RNS). Shippers moving products
into Canada are able to receive shipment status updates as their cargo is
processed within Canadian Customs utilizing Roadway's Status Notification
System (RSNS), which allows users to obtain status info directly from
Canadian Customs via Electronic Data Interchange (EDI). Shipment information
is updated instantly and accessible through "QuikTrak Online" on
Roadway's website (http://www.roadway.com) or by using Roadway's Voice
Response system. Roadway & Reimer customers may track shipments &
obtain customs release info that is accurate.
- Brinks Buying Binge Bolstered ....... as it has acquired
nearly all of the remaining shares of Brink's S.A., the largest armored car
company in France, for payments over 3 years aggregating US$39M. Brinks
continues to corner the armored transport market world wide.
- Fritz Will Duplicate Xerox Deal ........ as Xerox Corp.
has renewed its logistics contract with Fritz Co.s. The contract covers air
& ocean services from the U.S. to Latin America & Europe, and from
Asia, Europe & Latin America to other points. In other Fritz news, last
week the company announced two new members for its Board of Directors, being
Paul Otellini, Exec. Vice President at Intel Corp., & William J.
Razzouk, Pres. & COO at Storage USA, Inc.
- New Circle Brass ........ as Circle Int'l, a leading
provider of global transport & logistics services, announced the
appointment of Edward Au as regional manager, North China operations. Sam
Schotsky has been appointed Sr. V.P.-sales. Schotsky joins Circle after more
than 25 years at LEP Profit
- New BDF CFO ....... as John A. Barrett has been appointed
V.P. & CFO of BDP International, the Philadelphia-based forwarder.
- Monopoly Game Boar raham Lincoln on the road to fame, is being purchased
by Canada's biggest freight railroad, Canadian National Railway Co. of
Montreal, in a US$2.4B cash-and-stock deal.
- MSAS Get Major Brazil Forwarder ........ as MSAS Cargo
Int'l has completed the acquisition of a 51% interest in Cobrac
Internacional de Despachos Advaneiros for US$840,000. MSAS changed the name
of the Brazilian operation to MSAS Cobrac Cargo Int'l SA. Cobrac has ranked
among the top five int'l freight forwarders in Brazil over the past 3 years,
according to the Int'l Air Transport Assn. Cobrac has served as MSAS's
exclusive agent since 1988.
- Changes At "The Journal" ........ as The
Journal of Commerce, the 170-year-old chronicle of trade & transport, is
trimming its newspaper staff and revamping its Internet offerings to reverse
a slide in advertising. The daily is completing a reduction of 65 jobs, or
14% staff, under a US$7M reorganization announced 2 months ago. The cuts
will be offset by 30 new jobs in other areas, including a new electronic
- The Defendant Was Money Hungry ....... as U.S. Customs
agents seized $86,000 in suspected drug money last week from a woman they
arrested at La Guardia Airport who said she swallowed thousands more in
cash. Liliana Giraldo was headed to Colombia on when a Customs inspector
examined her luggage, finding it full of cash stuffed into battery-sized
capsules, each containing about six $100 bills glued to toys. Giraldo
admitted having swallowed 37 capsules containing $22,000, Rapaport said.
Authorities were trying to determine (oh my) if she had indeed swallowed the
- Air Express Int'l Corp. UP with record earnings for the
4th quarter of US$14.5M, up 21% from the year-earlier. 4th quarter gross
revenues rose 9% to US$142.6M while net revenues were up 6% to US$128.5M.
- Amertranz Worldwide Holding Corp. UP for the fiscal 2nd
quarter ended Dec. 31, 1997, with net income of US$313,757, or $0.03 per
share, compared with a net loss of US$1,462,392, or US$(0.25) per share for
the same period 1996. Operating revenues for the 2nd fiscal quarter were
US$25,455,502, compared with operating revenues of US$19,452,096 reported
for same period1996. Amertranz provides forwarding services through its
subsidiaries, Caribbean Air Services Inc. & Target AirFreight.
- Atlas Air Inc. UP with net income for the quarter ended
Dec. 31, 1997 of US$9.1M, or US$.41 per share, the 2nd best such quarter in
its history. Operating income for the quarter was US$27.8M & revenues
- Boeing Co. DOWN with 4th quarter loss of US$498M, blamed
on costs of taking over McDonnell Douglas & production problems in
Boeing’s aircraft assembly plants. The loss compares with a profit of
US$444M during the final quarter of 1996. Boeing’s sales for the quarter
rose 17.5%, to US$11.7B.
- CGA. UP as France's Compagnie Generale Maritime said it
posted a profit last year, the first since 1989. CGM reported estimated net
profits of US$13M for 1997, following deficits of FFr183 million in 1996 and
FFr498 million in 1995.
- CMA. DOWN as losses at France's Compagnie Maritime
d'Affretement, the French shipping line, worsened markedly last year, as the
company reported a net deficit of 120M French francs (US$20M), compared with
a loss of Ffr7 million in 1996.
- Delta Air. UP with net income for the Dec.1997 quarter
US$190M, up 51% from the December 1996 quarter net income of US$125M.
Operating income for the Dec. 1997 quarter was US$332M, up 47%.
- Eagle USA Airfreight. UP with record revenues for the 1st
quarter increased 44% to US$97.6M. Net income for the quarter totaled
US$5.9M a 30% increase.
- Expeditors Int'l of Washington (NASDAQ:EXPD) UP with
record net earnings of US$12.9M for the 4th quarter of 1997, an increase of
73%. Net revenues for 4th quarter1997 increased 45% to $84,457,000. Total
revenues & operating income were US$270,149,000 and $19,560,000 in 1997,
increases of 22% and 71%, respe vely. Net earnings per share for the 4th
quarter were US$.48, an increase of 66%. For the year ended Dec. 31, 1997,
net earnings rose to US$38.4M, an increase of 58%. Net revenues for the year
increased to US$291M, up 44%.
- Greyhound Bus Lines. UP for the 4th quarter with net
income of US$4.6M, more than four times the US$1.1M reported a year earlier.
Operating revenues were up 11.7% to US$199.9M for the quarter, and up 10.0%
to US$771.1M for the year.
- The Hub Group. UP with revenue totaling US$271.6M for the
4th quarter ended Dec. 31, 1997, representing an increase of 5.4% over same
period 1996. Intermodal revenue increased 1.3% to US$215.7M. Truckload
brokerage revenue increased 22.5% to US$34.7M, while logistics revenue
increased 30.3% to US$21.1M. Net income increased 15.8% to US$2.8M from
US$2.4M in the comparable period last year. Earnings per share for the 4th
quarter was $0.36 versus $0.40 in the 4th quarter of 1996. Total revenue for
1997 increased 19.2%. Union Pacific Railroad's suspension of intermodal
carriage in key corridors & major service problems throughout their
entire network interrupted rail service nationwide in 1997. The most severe
problems occurred from mid- October to mid-December & it was very
difficult to move Hub Group freight in those lanes controlled by or
dependent upon the U.P.R.R. network.
- J.B. Hunt Transport Services Inc. UP with 4th quarter
1997 net earnings of US$7.0M, or 19 cents per share, compared with 1996 4th
quarter earnings of US$5.4M or 14 cents per share. Led by a 23% growth in
revenue from the company's flagship U.S. truckload operation, revenue for
the quarter generated from the strategic core businesses of van (including
intermodal) & dedicated contract & logistics services was up 17%
over same period 1996. Total revenue increased 9% to US$415.2M.
- Matson Navigation Co. UP with US$19.1M in 4th quarter
operating profit, a 14% increase from a year earlier. 4th quarter revenue
increased 6%, to US$177.4M, primarily reflec r intermodal volume on the
mainland. Container volumes on the Hawaii service were down 1% lower, with
autos down 11%.
- Mercury Air Group. UP with record net income for the 2nd
quarter ended Dec. 31, 1997. Net income for the quarter of fiscal 1998 was
US$2M, a 54% increase, as compared to US$1.3M in the comparable quarter of
1997. Net income per common share basic, was US$O.28 this quarter as
compared to US$0.18 for the same period last year. Mercury is based next to
Runway 25-Right, at LAX.
- C.H. Robinson Worldwide, Inc. UP for the year ended Dec.
31, 1997, gross revenues were US$1.791B, an increase of 11.5%. Net revenues,
increased 15.1% to US$206.0M in 1997. Income from operations was US$56.7M in
1997, an increase of 13.4%. Net income from continuing operations increased
11.4% to US$36.1. Founded in 1905, C.H. Robinson Worldwide, Inc., is the
largest 3rd party logistics company in No. America.
- Union Pacific Corporation (NYSE: UNP) DOWN with a net
loss of US$152M, or US$.62 per share, in the 4th quarter of 1997, reflecting
the impact of severe congestion at its railroad subsidiary during the
quarter, as well as the costs of its Service Recovery Plan. In total,
estimates that are these congestion problems reduced net income by
approximately US$353M, or US$1.42 per share.
- United Airlines. UP in its best year yet, on 4th quarter
net earnings of $32M and operating earnings of US$91M.
- Tropical Shipping. UP with 4th quarter operating income
of US$8.9M, up from US$5.2M a year earlier, as revenue rose to US$60.2M from
US$53.6M. For the year, operating income rose to US$25.3M from US$22.2M as
revenue increased to US$213.1M from US$195M. Cargo volume increased 16% in
1997. Gross cargo volume for Dec. 1997 was 1,729,167 kilos.
- Yang Ming Marine. PLUNGE as revenues increased by 4% to
NT$32.93 billion, but operating profits took a massive dive of 40%, falling
to NT$1.74 billion for the 1997 year.
- The Birth Of FDX ......... as trading began on 28 Jan. in
shares of FDX Corp. (NYSE: FDX), the new holding company comprising Federal
Express Corp. (FedEx) and Caliber System, Inc. FDX Corp., a US$15 billion
global transport & logistics powerhouse, will offer a broad portfolio of
services. Read about the acquisition of Caliber by FedEx in The Cargo Letter
 from last month. The new stock should be a powerhouse.
- Interpool Continues To Climb ......... as Interpool Inc.
(NYSE: IPX) announced on 27 Jan. that it has filed a shelf Registration
Statement with the U.S. Securities & Exchange Commission for the
proposed sale of up to US$400M of shares of its preferred or common stock or
its unsecured debt securities. The securities may be offered from time to
time, at prices and terms to be determined at the time or times of sale.
Interpool, was founded in 1968, is one of the world's leading lessors of
cargo containers used in Int'l trade and is the 2nd largest lessor of
intermodal container chassis in the U.S. Interpool leases its containers
& chassis to over 200 customers, including nearly all of the world's 20
largest Int'l container shipping lines. Interpool is corporate sponsor of
The Cargo Letter world wide web home page.
- Hall Of Fame Winners Named ......... as air cargo
industry pioneer leaders who have played key roles in the development of the
airfreight industry world-wide have been named to the inaugural
International Hall of Fame of The International Air Cargo Association
(TIACA). Industry veterans were Robert Prescott, Flying Tigers' founder;
Chester Mayer, founder of AEI; John Emery, Jr., chairman/CEO of Emery Air
Freight; Albert Plessman, founder chairman of KLM Cargo, the oldest
continuous cargo carrier; Richard Jackson, CEO, Seaboard World Airlines;
Oleg Konstantinovitch Antonov, founder & designer of heavylift aircraft,
Fred Smith, founder/chairman of Federal Exp ers of Cargolux, Robert Arendal,
Gunnar Bgorkvinsson, Johannes Einarsson & Einar Olafsson.
- U.S. - Japan Skies Open ......... with announcement of a
new aviation agreement to boost both the number of flights & carriers
serving a US$10B yearly market between the 2 nations. U.S. passenger &
cargo lines have won new rights to serve Japan in exchange for allowing All
Nippon Airlines (ANA) & Nippon Air Cargo to join Japan Air Lines (JAL)
in enjoying unrestricted U.S. access. The so-called incumbent U.S. carriers
(United, Northwest & FedEX) which already enjoy extensive rights under
the original 1952 air treaty, will gain full rights to offer service between
any U.S. points to any points in Japan, and will also be entitled to fly
beyond Japan to other points without limitations. Over the course of the
agreement, 2 new U.S. carriers to be named will join those with limited
rights. Non incumbent all-cargo carriers, UPS & Polar Air, will gain new
opportunities to transport goods beyond Japan and one additional all-cargo
carrier will enter the market in 4 years. JAL claims Japanese negotiators
gave away much more to the U.S. than they managed to achieve for Japanese
lines, a sentiment which is shared by ANA & many analysts already
calling the new agreement a win-loose situation with the U.S. firmly
entrenched as the winner.
- London Won't Cover The Bug ........ as insurers warned
last month that airlines worldwide would be grounded if they failed to
protect their computers from the "Millennium Bug". Lloyd's
insurers said they would withdraw cover for airlines that did not adapt
their systems before 2000. In the U.S. some experts reports that the FAA is
lagging behind in updating & testing its software for `Year 2000 Bug'.
The administration had expected to finish upgrading its most critical
systems by Nov. 1999, but independent analysts say the deadline won't be
met. The USA Today newspaper reports that up to 50% of flights in the U.S.
could be grounded as a result of the FAA's delay.
- Emery Sets The Record ........ as the largest commercial
charter flight ever commissioned in the U.S. departed New Orleans, La. for
Palmdale, Calif. on Feb. 10, carrying a liquid oxygen tank built by Lockheed
Martin for the X-33/VentureStar Reusable Launch Vehicle. The move was
handled by Emery Worldwide's Emery Expedite! charter service. It will be the
1st U.S. charter for the Airbus A300-600ST Beluga cargo aircraft, the
world's largest cargo aircraft by volume (cargo compartment more than 23
feet in diameter &123 feet long & a max load of 103,616 pounds). The
dual-lobed aluminum oxygen fuel tank is more than 12 feet high, 20 feet wide
& 27 feet long was shipped to the Lockheed Martin Skunk Works facility
in Palmdale where it will install into the X-33 vehicle. The X-33 will
demonstrate design & operational aspects for VentureStar, a
single-stage-to-orbit Reusable Launch Vehicle (RLV) that will reduce the
cost of placing payload in low earth orbit from $10,000/pound to
$1,000/pound. Way to go Emery! More, Emery has now been chosen by Wal-Mart
as primary airfreight carrier
- Korea Rates To Jump ........ as South Korea will increase
the price of int'l air freight, effective this week. This is the 1st time
South Korea has received approval to raise the cost of Int'l air freight
since 1990 and permits Korean Air & Asiana Airlines to raise their
air-cargo fares on all Int'l routes by 30%, effective February 16.
Meanwhile, the Ministry of Construction & Transportation is raising
landing fees on Int'l routes by 10% effective 1 March. Strong protests from
domestic & foreign airlines have failed to deter the Ministry. The price
increases are forecast to cost foreign airlines an extra 3.8 billion won a
- EU Volumes Up ........ as European lines carried 5.3%
more Intl. air cargo last year than in 1996, according to the Assn. of
European Airlines. But the Asian crisis may finally have started taking its
toll, as EU carriers reported a rise of only 0. % for Dec., after increases
of 7.3% for Nov. and 5.9% in Oct. Overall traffic between Europe & the
Far East increased only 5.5% during 1997, as did traffic on No. Atlantic
& So. Atlantic routes. Mid- Atlantic traffic jumped 11.7%. Routes
between Europe & Sub-Saharan Africa declined 1.4%.
- Asia Volume WAS Up ........ as Airport Councils Int'l
reports that cargo volume to - from Asia grew during the first 10 months of
1997, before the Asian financial crisis fully developed. Cargo volumes
handled by Asian airports through Oct. last year increased by 12.3% from a
year earlier. Volumes for the month of Oct. were up 9.1% over year-earlier
figures. Indeed, Cathay Pacific said its cargo traffic has remained strong
despite currency devaluations which have played havoc with Asian economies.
Meanwhile, Latin America reported drops in cargo volumes of 2.9% through of
1997 and 15.8% for Oct. Ten-month volume was up 6.4% for Europe and 7.6% for
- Other Volumes ......... as Hawaiian Air Cargo Ton Miles
(CTMs) flown in December 1997 were 4,574,000, a decrease of 10.1% from
5,086,000 flown in December 1996; and for 1997 totaled 55,628,000, an
increase of 9.0% from 51,023,000 in 1996.
- Top 1997 Ports ......... as Airport Councils Int'l
reported that Memphis (up 16.8%), topped the airport league table for cargo
handled in the first 10 months of 1997, followed by Los Angeles (up 9.8%)
& Hong Kong (up15.6%). Boston's Logan Int'l Airport handled 814,655,016
Lbs. of air freight in 1997, a 7.1%. Oakland Int'l Airport handled 1.5B
pounds or nearly 678,000 metric tons of air cargo, an increase of 10.02%.
- Target Targets China ........ as Amertranz Worldwide has
announced that its Target AirFreight Inc. subsidiary has received a Class-A
License for its China joint venture to operate a variety of transport
services in China. The license, which was issued to Target International
Freight Ltd., a joint venture formed by Target AirFreight in China in
October 1997, was one of only a few i sued in all of China in 1997. Target
will operate in Tangshan, Beijing & Tianjin, initially. Chris
Coppersmith, president of Target AirFreight, said, "The Class-A license
issued by the Chinese government allows us to extend our freight forwarding
operations to important areas of China. Our hope is that this addition will
help to make us a leading forwarder in Asia."
- Newark Gets Cargo Center ........ as Newark's Int'l Air
Cargo Center opened it's new 292,000 square-foot facility last month. As the
primary tenant, SAS will increase its freight capacity with 62,000 sq. feet
for operations & 12,000 square feet for offices. The US$35M state of the
art terminal is now the main U.S. hub for SAS, and will handle cargo &
mail for such Star Alliance partners as Lufthansa Cargo & United
Airlines Worldwide Cargo. The facility also houses Virgin Atlantic Cargo
& EVA Air cargo. EVA is considering using freighters at Newark so it can
fully utilize the space. SAS was the 1st overseas carrier to move its
operation from JFK to Newark about 7 years ago.
- Honolulu To Get Largest Cargo Facility ........ as United
is spending US$7.8M on building a 58,000 square-foot warehouse, with space
to allow it to grow to 110,000 square feet later. The new facility will
include a 4,000 sq. foot refrigeration unit. The building, scheduled to open
its doors this spring, is part of UAL's US$30M investment in expanding
global cargo facilities during 1998.
- Huge New Guangzhou Center To Start ........ as work on
the mammoth US$2.4B new Guangzhou Int'l Airport will begin this year. The
new port will handle 2.5 million tons of cargo annually, as well as 80
million passengers. Unfortunately, more than 20,000 people from 6,000
farming families in 9 villages will have to be moved to make way for the
airport, which is due to be operational by the first half of 2001.
- HKG Charges Draw Complaints ... as the Hong Kong Assn. of
Freight Forwarding Agents is complaining of increases in freight handling
charges & "hidden es are set to increase by as much as 30% when the
new airport opens in July. The fact that Chek Lap Kok is farther from
Kowloon than the existing airport is certain to add further increases to
transport costs. "While costs for large shipments may go up moderately,
smaller shipments will be greatly affected and it is the consumer who will
have to bear the brunt of this cost," said Alice Lui, manager of the
Hong Kong Assn.
- Did The Industry Flunk? ........ as the Air Courier
Conference of America believes that many of the violations for which air
couriers were cited after recent inspections by the U.S. Dept. of
Transportation involved new, complex paperwork requirements for cargo
shipments. The DOT increased its monitoring of commercial air-courier
shipments with a joint surveillance operation conducted by the Federal
Aviation Admin. (FAA) & the Dept. of Transportation Office of the
Inspector General in Oct. & Nov.1997. The agency said couriers have
"unacceptably low compliance" with standards designed to keep
HAZMAT cargo off commercial airlines. Ten of the 17 courier services tested
in Miami the last week of Oct. were willing to accept packages from shippers
they had not dealt with previously, but none of the 10 followed the security
procedures. None of the 13 airlines that agreed to carry the packages
followed the procedures, the report said. Two of the 11 courier services and
5 of the 21 air carriers tested during the 1st week of Nov. at JFK failed to
follow the FAA rules. ``It was obvious air carrier personnel were accepting
packages even though they were unfamiliar with required procedures,'' the
FAA inspector general reported. Another round of inspections are to be held
this month ``due to the unacceptable level of compliance,'' the inspector
- KLM Buys 100% Of Martinair ......... as it acquires 50%
of the shares currently held by Nedlloyd. The strong position of Martinair
in the int'l air freight market now greatly strengthens KLM's hand in air
freight. Additional infor is available on Nedlloyd's home page:
- Northwest Takes Bite Of Continental ......... as last
month Northwest Airlines bought a 14% stake in Houston, Texas based
Continental Airlines as part of a strategic alliance linking the USA's 4th
& 5th largest carriers. The airlines said they will operate code share
flights, honor each other's tickets & cooperate in ticketing,
reservations, baggage handling and cargo. Delta Airlines had held talks with
Continental for more than a year over the possibility of merging under a
single name, creating the largest U.S. line. It is understood, however, that
Continental owners preferred the Northwest proposal.
- BAX Global Gets New Wings ........ with an agreement to
acquire the privately held Air Transport International LLC (ATI) for cash of
about US$30M. ATI is a U.S.-based cargo & passenger airline with a fleet
of DC-8 aircraft providing services to BAX Global & other customers. As
a result of this move, BAX Global is suspending its efforts to establish its
own certificated carrier operations. NOTE: Larry L. Rodberg, founder of BAX
Global 26 years ago, has been posthumously honored by The International Air
Cargo Association's (TIACA) inaugural International Hall of Fame. The
announcement of the 1st annual list of honorees was made at TIACA's annual
dinner, held recently at the British Houses of Parliament as part of the
Assn.'s annual general meeting.
- AIR China Will Expand Dedicated Freighters ........ with
plans to introduce new cargo services to the U.S. this year. Four B-747F
planes are now in service with daily flights. Air China is examining the
prospect of services to Latin America, by establishing a station in MIA,
where it currently interlines with Fine Air. In April, Air China will double
the number of Combi flights to SFO from 3 to 6 a week, as well as adding 3
new weekly Combis to JFK. China & the U.S. have agreed to raise the
number of flights between the countries, which currently stands at 278 a
week. On the domest de, Air China plans to set up a road feeder service
& a regional air freighter network with a new fleet of B-737Fs &
B-757Fs, to be based at Beijing's Capitol Airport, where an 11,000
square-foot complex will be built.
- The Eagle Swoops .......... as Eagle USA Airfreight has
signed a letter of intent to acquire S. Boardman (Air Services) Ltd. a
privately held full service freight forwarder based in London, England, with
US$25M in revenue. Eagle (Nasdaq/NMS: EUSA) has announced the closing of its
public offering on January 30, 1998 of 1,750,000 shares of Common Stock.
- Arrow Won't Stop ........ as the all-cargo line has begun
Houston's only nonstop all-cargo service to Iquitos, Peru, with same-plane,
one-stop service to Quito, Ecuador, and direct one-stop connections to Lima,
Peru & Guayaquil, Ecuador. To be operated with a DC-8- 62F.
- Northwest Cargo To Manila ........ as the carrier ignores
Asia woes & rapid capacity expansion by the competition to launch
freighter service between the U.S. & Manila, its 7th Asian market. The
twice-weekly service will add 220 tons of cargo capacity to Northwest's
current route & feature a B-747F departing Chicago on Sundays & New
York on Wednesdays with stops in Anchorage, Tokyo & Bangkok, before
ending in Manila. Return-service departs Manila on Wednesdays and stops in
Tokyo & Anchorage before ending in Los Angeles. The 2nd return-flight
departs Manila on Fridays and stops in Tokyo & Anchorage before Chicago.
Meanwhile United Airlines canceled it's Manila service last month.
- Aramex Int'l & Qantas Sign Deal ........ as the Int'l
express & forwarding company specializing in the Middle East &
Indian Sub-Continent, announces it's appointment as the Cargo Sales Agent
for Qatar Airways in the eastern states of USA.
- New Incarnation For The MD-95 .......... as Boeing has
"introduced" & renamed the newest member of its commercial
airplane family -- the Boeing 717-200 twinjet. The 717-200 was first
introduced in October 1995 as the McDonnell D uglas MD-95 and serves the 100
seat market. No cargo version has been announced. In more Boeing news, the
company achieved a significant milestone when employees rolled the 3,000th
Boeing 737 out of the manufacturing facility in Renton, Wash. last month.
The historic rollout occurs 31 years after Boeing rolled out the 1st 737-100
on Jan. 17, 1967. The B-737 is the best-selling commercial jetliner of all
time. Airlines have ordered more than 3,870 737s, almost 40% of the more
than 9,800 Boeing commercial jets ordered. Currently, more than 280 airline
operators in more than 100 countries fly 737s. It is estimated that more
than 825 B-737s are in the air at all times, with one taking off every 6
- The High Cost Of Moving In Europe ......... as the Assn.
of European Airlines reports that costs at most European airports are much
higher than in the U.S. & Asia. Compared to the U.S., average handling
costs in Europe are 70% higher, while the figure for Europe versus the Far
East is plus 40%.
- Update On NCBFAA Shippers Assn. ......... as a Journal of
Commerce article reports that the National Customs Brokers and Forwarders
Association of America (NCBFAA) formed a shippers association in fall 1997
to increase the negotiating clout of its nearly 700 consolidator &
forwarder members. NCBFAA transportation counsel Ed Greenberg states that
group took this step because the specter of confidential contracting under
pending maritime reform, combined with continuing antitrust immunity for
ocean carriers, means that the vast majority of ocean cargo will be moved
under contracts once reform takes effect, and that 3rd parties are therefore
consolidating into larger, more powerful negotiating units". The
Journal reminds, however, that there are still legal questions over whether
forwarders have the right to sign service contracts. The FMC maintains that
they cannot, but the NCBFAA states that such a position contradicts U.S.
- FMC "Vision Of The Future" ......... as a 5
year plan has been released by the U.S. Federal Maritime Commission which
covers 4 main strategic aims: compliance, balanced enforcement, efficient
regulatory process & internal capabilities. To deal with each of the
goals FMC will have to develop & use improved enforcement programs and
instigate a greater response to overseas trade with disfavored conditions.
FMC is aware of the fact that there are issues outside of its control that
could influence the success of this plan. There is some concern that the
proposed Shipping Reform Act of 1997 will create problems, perhaps adjusting
the commissions status. Other important factors in the plan include avoiding
the threat of confrontation between foreign government entities, which could
occur if FMC resources had to be stretched.
- Drawback Bonanza Overlooked By Importers ......... as $2
Billion in Duty Drawback goes unclaimed each year. American Shipper magazine
reports that duty drawback, which is a refund of U.S. Customs duties paid on
imports of materials which are either exported or used in the manufacture of
exported articles, goes unclaimed. The article states shippers lack in-house
knowledge of drawback or that they can hire specialists who prepare &
file drawback claims on their behalf with Customs.
- P&O Nedlloyd's Star .......... as it is acquiring the
container shipping business of Blue Star Line Ltd. sidiaries. Blue Star Line
has a strong position in the refrigerated cargo market and operates from the
Southern to the Northern Hemisphere, including routes between Australia/New
Zealand & No. America as well the Middle East & Asia. It also
operates between No. Europe, Mediterranean and Central & So. America.
Blue Star owns 11 ships with a total container capacity of 15,000 TEUs. It
has 4 chartered ships with a capacity of 7,000 TEUs. It owns approximately
10,000 TEU containers. Throughput in 1997 totalled 186,000 loaded TEUs.
- "American Consolidators Assn." Formed ........
as a recent Journal of Commerce article reported that consolidators,
mirroring the proliferation of multi-carrier alliances in ocean shipping,
are increasingly joining forces on their own, pooling freight to increase
their buying power with ocean carriers. In Dec. 1997, four heavy-volume
consolidators formed the American Consolidators Assn., a devise to pool
thousands of CTNRs moving between the U.S. & Europe, and receive the
highest possible discount from carriers in the Trans-Atlantic Conference
- Global Alliance Sinks ........ as NOL-APL, Hyundai &
Mitsui O.S.K. Lines have given their partnership a new name, the New World
Alliance, and have changed their sailing schedules which will take effect
between now and March. The New World Alliance will replace the Global
Alliance of APL, Mitsui O.S.K. Lines, OOCL & Nedlloyd.
- TWRA Will Allow Individual Contracts .......as the
Transpacific Westbound Rate Agreement has reversed policy and will permit
individual conference members to negotiate & sign service contracts for
all dry-cargo commodities. TWRA’s earlier refusal to permit individual
contracting was cited as a reason for P&O Nedlloyd’s recent
announcement that it will leave the TWRA. Individual contracts will be
subject to broad conference guidelines to be adopted this month, to begin
about March 10. TWRA has designated all rates in its exempt-commodity
tariff, including forest products, wastepaper scrap metal & other major
items, as "open" rates. Other than being subject to guidelines on
the length of service-contract terms or extensions, these exempt-commodity
rates will not be filed in an internal tariff.
- APL & TMM Upgrade Mexico Service ........ with
deployment of 6 containerships on their Asia-Mexico service, resulting in
transit-time improvements & add'l capacity. As to cargo security in
Mexico, the carriers will launch the 1st and only double-stack container
service between Manzanillo & Mexico City. Besides a weekly line-haul
call at Manzanillo, the carriers will also offer 4 weekly sailings that
connect with the Manzanillo service at Los Angeles. These sailings include
the fastest transit times between Asia & Los Angeles. Transit times to
Manzanillo will be 13 days from Yokohama, 17 days from Hong Kong or
Shanghai, 20 days from Singapore, or 22 days from Malaysia. Westbound, the
transit time from Manzanillo to Manila will be 25 days, an improvement of 7
days. In related news, Hanjin Line has become the 1st Korean carrier to make
direct calls at Mexico's Port of Manzanillo, using 2,700-TEU class vessels
which will also cut transit times by more than 7 days.
- Battle Of Long Beach Continues .......... as over100
cities & gov't agencies are supporting the Port of Long Beach in its
appeal of a court ruling that has prevented development of a container
terminal for China's COSCO Line. The Port is asking California’s Court of
Appeal to overturn a Superior Court decision which held that the project
didn't comply with environmental laws. The lower court ruled that although
the project’s environmental analysis was adequate, the port had “pre-committed”
to the terminal project even before completing the review. At issue is the
very historic site of the former U.S. Naval Station, Long Beach.
- Evergreen Takes Main Italian Port ........ as it has
beaten other shipping companies in a battle to gain control of one of
Italy's main ports, Taranto. Evergreen has been granted control of The
concession to operate the port will cost Evergreen Lire 1.2 billion a year.
By the end of construction Evergreen will have installed 18 post-panamax
cranes at the port.
- FTA Ignites Fuel Surcharge Debate ... as the Freight
Transportation Assn. says that shipping lines & conferences are imposing
fuel surcharges in the major container trades despite falling fuel prices.
FTP said its own fuel monitor showed that marine fuel prices had been
falling rapidly since Oct., following a "moderate" price increase
from late Aug. to the end of Oct.. "Even when the effects of exchange
rate fluctuation are included to take account of the economic turmoil in the
Far East, the cost of purchasing fuel in U.S. dollars has fallen
markedly." The Assn. said some members have refused to pay the
surcharges, which have ranged from a few dollars to US$70 per TEU. FTA said
it supports this policy
- TWRA Complains About Japan Charges ........ as the
Transpacific Westbound Rate Agreement says combined charges at Japanese
ports now range from US$354 to US$385 for handling & processing a 1 x
40' container from vessel through the terminal gate. The TWRA has levied a
terminal handling charge for Japanese ports since 1995, but has not adjusted
it since. TWRA members estimate that the terminal charge allows recovery of
less than 25% of carriers’ actual costs associated with the charges.
- Korean Ports Charges To Rise ......... as the government
will attempt to increase charges on port facilities by 7.6% in April. The
Ministry of Maritime & Fisheries Affairs will meet for final
consultation on the matter before the rise can be made effective.
- Philippine Port Charges To Rise ........... as the Port
Authority is planning major increases in facility rental charges at
government-owned facilities over the next 5 years. Charges at the South
Harbour, which handles int'l traffic could rise by as much as 250% which
should translate into higher terminal charges for CTNRs.
- Expeditors Names New Ocean Brass ...... argo division.
Brian Coughlin has been promoted to Director - European Ocean Cargo
Services. Scott Kelly has joined the Company as Director - Ocean Cargo.
Coughlin joined Expeditors a decade ago, serving the Company in Chicago,
Boston & Seattle corporate headquarters. Coughlin relocates to
Rotterdam. Kelly brings 17 years of ocean liner cargo sales & management
- Throughput Reports ........ as containerized-cargo volume
through the Port of Tacoma last year totaled 1.16 million TEUs, an 8%
increase from 1996. Vehicle shipments through the port increased by 37%, to
107,000 units. Volume through the Port of Beaumont, Texas, increased 15%
last year to 3.144 million tons, mainly due to grain.
- Shipco Gets Two More ......... as the NVOCC has opened
offices in Toronto & Antwerp, Belgium. There are now 27 offices.
- Lykes Renames Fleet ....... on joining the new CP
organization, the Lykes Lines Ltd fleet will be known as follows:
Stella Lykes: Lykes
Almeria Lykes: Lykes Navigator
Margaret Lykes: Lykes Discoverer
Genevieve Lykes: Lykes Explorer
- NYK Fined $425,000 For Mislabling Cargo ......... as
Nippon Yusen Kaisha Ltd. (NYK Line) has agreed to pay a US$450,000 fine to
the FMC to settle charges of mislabeling goods in the transpacific market,
an effort to give shippers a lower rate than the one in the applicable
tariff or service contract, occurred mainly in the eastbound transpacific
trade. The FMC has fined two other major carriers -- “K” Line and
Hyundai -- in similar cases in recent months. Expect lawsuits by these lines
against the NVOCCs soon to recover the fines.
- Use Of False Name Costs NVO Bundle ........ as the FMC
has fined Portman Square Ltd., an HKG NVOCC, US$797,500 for misdeclaring
cargo on at least 29 shipments carried by Hyundai. The NVO entered a service
contract with Hyundai using a false name, and falsified cargo “to enjoy
lower rates than those it should have been charged,” the FMC said. The
commission’s fine, $27, by law.
- London Reports 1997 Losses ......... as fewer seafarers
lost their lives last year compared to 1996, according latest reports from
the Institute of London Underwriters (ILU). Figures show a marked fall in
the number of fatalities among crew serving on ships of over 500 gt, from
1,190 in 1996 to 263 last year. There were also fewer total losses last
year. As of the end of Dec., 89 ships had been posted as total losses,
compared to a comparable figure for 1996 of 105. Although fewer ships were
lost last year, the total tonnage involved was up, 739,164 gt against
653,775 gt by the end of 1996. Fifty-one crew were killed and 30 injured
aboard vessels during PIRATE attacks last year, according to the Int'l
Maritime Bureau. In its annual report of piracy, released 19 Jan., the
Bureau said that there were 229 PIRATE attacks aboard ships last year.
- Aft Section of M/V MSC Carla Heads To Breakers ........
as what remains of the Panamanian-registry 55,241-gt, 40,912-dwt, 2,868-TEU
motor containership built in 1972 at Landskrona, Sweden; operated by
Mediterranean Shipping Co. has left Las Palmas in Spain's Canary Islands
under tow for demolition in No. Spain. The ship broke into 2 pieces on early
25 Nov. during a storm 110 miles north of Sao Miguel Island in Portugal's
Azores Islands. The ship broadcast a message late 24 Nov. that its rudder
had failed and 2 Portuguese military helicopters rescued all 34 crew from
the aft section. The MSC Carla's stern was taken in tow by the tug Fotiy
Krylo. The forward section, with as many as 1,200 CTNRs aboard, sank 30 Nov.
The MSC Carla was sailing from Le Havre, France, to Boston with 2,400 CTNRs.
Ocean CARGO disasters this month include the following ..........
1.] 9 Jan. PIRATES attacked the M/T Isomeria (British operated byShell) at
the Port of Santos, Brazil. Two crew, both British citizens, were shot by Uzi
weilding PIRATES while propane at a terminal of Petroleos Brasileiros S.A.;
2.] 11 Jan M/T Timoan (Honduran) was captured by PIRATES who beat up the
crew, smashed communication equipment, stole cash & personal effects &
transferred about a 1/3 of the ship's 3m litre cargo of gasoline to another,
unidentified tanker off the Malaysian coast near Pulau Auro. It lasted
about15 hours. The crew were bound & had their eyes covered with
tape. The Tioman had been on a voyage from Singapore to Thailand;
3.] 13 Jan. M/V Altnes (St. Vincent & the Grenadines) capsized & sank
after it collided with M/V Shannon (Cypriot.) in heavy fog east of Anholt
Island, Denmark. Visibility was 1,200 feet. The 17 crew were rescued
by M/V Shannon & brought ashore;
4.] 15 Jan. M/V New Baron (Panamanian operated by Cho Yang), sailing from Okgae,
South Korea, to Lae, Papua New Guniea, ran aground on rocks in strong winds
& heavy seas and later sank. Two Philippine crew were killed &18
are missing, including the Master;
5.] 15 Jan. M/V Sunny Glory (Belize) ran aground leaving the Port of Kashima,
Japan. The ship took a starboard list near a breakwater & almost
capsized, with most of its superstructure submerged. Two crew are missing;
6.] 16 Jan. M/V Flare (Cypriot) broke-up & sank. in the Gulf of St.
Lawrence. A Canadian government helicopter rescued 4 crew from a capsized
lifeboat but 15 others were killed and 6 are missing.
7.] 18 Jan. M/V Agios Pantaleinos (Honduras) sank 28 miles south west of
Sardinia Island with a cargo of ammonium solphite. The cause was a shift
of cargo due to very bad sea conditions. Of the 9 crew, only 2 have been
rescued by Italian coast guard helicopters;
8.] 20 Jan. M/T Dae Won (South Korean) had an explosion & fire in its No.1
cargo tank while anchored at Ulsan, South Korea. The crew was cleaning the
ship's tanks. Four people were rescued, 3 were killed and 1 is
9.] 28 Jan., a search for M/V Universe 808 (Belize) after it failed to
arrive at Yokkaichi, Japan. The ship left Kawasaki, Japan 27 Jan. rive at
Yokkaichi to load cargo including polystyrene before sailing to China. The
vessel & all hands are presumed lost;
10.] 29 Jan. M/T Yu Hwa 2 (Panamanian liquefied petroleum gas carrier), sank
while sailing from Pusan, South Korea, to Yosu, South Korea, with
butadiene. Eight of the crew were rescued & 1 is missing;
11.] 30 Jan. M/V Kirre (Estonian-registry) sailing from Riga, Latvia, to Seaham,
England, with timber, had a cargo shift in high winds & rough seas off
Klaipeda, Lithuania. The Kirre had a 10-degree starboard list and 40% of
its cargo was dumped overboard;
12.] 2 Feb. M/V Delfin del Mediterraneo (Spanish container ship) capsized &
sank 248 miles off Cabo San Vincente, Portugal. Thirteen crew were rescued
from 3 lifeboats by Spanish government personnel. Chief Engr. Angel Gomez was
13.] 2 Feb. M/V Dogruyollar IV (Turkish general cargo) sank 30 miles S.E. of
Cape Carbonara, Sardinia, Italy. The 11 crew were
14.] 4 Feb. M/V Bushey (Equitorial Guinea) is being held for ransom off Somalia
by PIRATES. A group of about 20 heavily armed pirates forced their way onto the
ship as it sailed off the country by firing across its bow from a
speedboat. The Bushey was sailing with salt between Masawa, Eritrea, &
15.] 4 Feb. M/V Malabo (Belize) took on water in its engine room. The flooding
was barely controlled and the ship sailed to Brest, France;
16.] 5 Feb. M/V Antelope (Honduran), sailing from Shimizu, Japan, to South Korea
w/ aluminum coils, capsized & sank south of Cape Irago, Japan, in a storm.
Of the crew, 6 were rescued & 2 are missing. However, 3 of the 6 later
17.] 7 Feb. M/V Fei Cui Hai (Chinese operated by COSCO) sank in the South China
Sea off southern Vietnam. Thirty-one of the 34 crew are missing;
18.] 7 Feb. M/V Agan (Russian dry cargo ship) sank 100 miles off Ulung Do, South
Korea. It was carrying scrap from Nakhodka, Russia, to Masan, South Korea. Four
crew were killed;
19.] 7 Feb. M/V Jade Sea (China, Qingdao Ocean Shipping Co) of 30 crew in
S. China Sea. The vessel was 30,000 tons;
20.] 11 Feb. M/V Hanjin Barcelona ran down & sank the processing vessel F/V
Alaska off Alaska in calm seas with clear viability. All 33 crew were
rescued. There will be an inquiry.
NOTE: Due to seasonal weather there were many, many more groundings, barge
losses, fires & other disasters we had no room to report. Large loss of life
was reported in the fishing fleets and on ferries. It was a BAD month at sea. We
mourn the many vessels lost.
This report only stresses 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.
Here are our suggested world wide web sites of the week for your business,
your information and your amusement ...............
1998 Connecticut Maritime Conference, 23-25 March at the Stamford Sheraton,
Stamford, Connecticut, USA. The Chairman of Lloyds Register will be speaking.
1998 Air Cargo Internet Symposium. April, at SFO.
United Airlines Worldwide Cargo Tracking. New!
Descriptions Of Air Cargo ULDs From Gulf Air.
WTO. Understanding Rules & Procedures Governing Settlement of Disputes
IMF & The World Bank
Your Favorite Comic Strips
-- by Dave Jordan CHB, for The Cargo Letter
Customs Service published a notice of proposed rule making containing
significant amendments to regulations, principally 19 C.F.R. §§ 171 & 172,
relating to the filing of petitions for relief from penalties, liquidated
damages, & seizure cases. In the words of Customs "The proposed
regulations are briefer and are designed to allow more flexibility and useful
contact with Government officials in an effort to administer cases in the most
efficient way possible. These proposed regulations promote a more
customer-friendly atmosphere and eliminate needless or redundant
Among the highlights of the proposed changes are:
- All provisions dealing with petitions on unsecured fines & penalties
and all seizure cases will be contained in § 171 and all provisions dealing
with petitions on "secured" assessments (liquidated damages &
international carrier bond penalties) will be contained in § 172.
- Language anticipating the filing of electronic petitions.
- Relaxation of signature restrictions for petitions relating to certain
non- commercial violations.
- The imposition of a petitioning period as short as 7 working days
"when the running of the statute of limitations is imminent" is to
become an option for Customs in all cases, not just cases involving
violations of 19 USC 1592.
- Elimination of second supplemental petitions.
- Elimination of requirement for Headquarters approval of broker penalty
cases in excess of $10,000.
- The regulations are to authorize acceptance of late petitions, but provide
that "lateness of filing may be considered when considering (sic)
remission or mitigation of a claim and less generous relief, if otherwise
merited, may be afforded". See also T.D. 94-38, the "Guidelines
for Cancellation of Claims for Liquidated Damages".
- A provision that any payment made in compliance with a mitigation decision
will act as an accord and satisfaction whereby the paying party has elected
to resolve the case through the administrative process and has waive a
device to neutralize the effects of the decision in Trayco, Inc. v. U.S.
- A reservation of Customs’ right to demand a waiver of the statute of
limitation before accepting a supplemental petition where the statute will
be available as a defense to all or part of the case within one year from
the date of decision on the original petition for relief.
- Elimination of the $1,000 minimum for supplemental petitions in broker
- Institution of a single standard of review for TIB petitions without
regard to whether all or part of the merchandise entered under the TIB is in
Deadline for filing of comments on these proposed rules is April 3. For the
full text of the NPRM, see pages 5329-5338 of the 2 Feb. Federal Register or
contact the author, Dave Jordon of Dave F. Jordon Consulting Serives, Inc.
Phone (310) 375-1180
Fax (310) 375-3569
February 18 - Wednesday Gambia, Independence Day Nepal, National Democracy
February 20 - Friday Kuwait, Kuwait Liberation Day Virgin Islands (British),
February 23 - Monday Andorra, Bolivia, Caribbean Islands, Dominica, French
Guiana, Uruguay & Venezuela all celebrate Carnival Brunei Darussalam,
National Day Guyana, Republic Day Luxembourg, Shrove Monday
February 24 - Tuesday Andorra, Bolivia, Brazil, Caribbean Islands, Dominica,
French Guiana, Panama, Portugal, Uruguay & Venezuela all celebrate Carnival
Estonia, Independence Day Haiti & Liechtenstein, Shrove Tuesday
February 25 - Wednesday Bolivia, Carnival (still going!) Haiti, Ash Wednesday
Jamaica, Ash Wednesday Kuwait, Kuwait National Day Tahiti, International
February 26 - Thursday - Feb/New Moon Sri Lanka, Maha Sivarathri Day
February 27 - Friday Dominican Republic, Independence Day
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