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Michael S. McDaniel, Editor & Publisher, Countryman & McDaniel, forwarder/broker attorneys at LAX.
OUR "B" Section: FF World Air News
3. Freight Forwarder World Air Briefs
OUR "C" Section: FF World Ocean News
4. FF World Ocean Briefs
5. The Cargo Letter Cargo Damage Dispatches * Back By Popular Demand
OUR "D" Section: FF in Cyberspace
6. The Cargo Letter "Cyber Ports Of Call"
Chooses ........... as Oceanwide.com,
based in Montreal, a
laws in line with Int'l standards and set up a transparent & fair arbitration
mechanism for foreign business after its entry into the WTO, according to an
announcement at the recently held Hong Kong 2000 China Investment Policy
Seminar. The government says it will publish all China's laws & regulations
concerning foreign business with WTO members, enterprises or individuals, in
order to guarantee legal transparency after accession. In addition, new rules
on foreign business, except those concerning national security, will be
forwarded to enterprises for review before application. Meanwhile, an
enterprise-oriented consultation & complaint mechanism will be set up to
ensure quick settlement of ordinary legal problems within 30 to 40 days. The
statement promised uniform application of all important laws and regulations.
A fair & independent judicial mechanism will also be set up to ensure the
independence of law. China also promised to reduce governmental interference
in the economy, which would help domestic enterprises stand on their own.
between the U.S. & Chile is edging closer to reality as the U.S. government
begins to study the potential economic impact of this agreement on the
country's industry. President Clinton & Chile's President Ricardo Lagos
proposed developing a bilateral free trade agreement between the countries in
Nov. The goal is to seek the elimination of duties & commercial barriers for
U.S.-and Chilean-origin goods & services traded between the countries. Other
aspects of the agreement will cover investments, trade-related aspects of
intellectual property rights, government procurement, and environmental &
labor matters. The industry must submit comments about the proposed free
trade agreement to the committee by Jan. 29.
6 year sponsorship with the Int'l Olympic Committee on Dec. 31 2000, becoming
the 2nd major sponsor to drop out before the 2002 games in Salt Lake City.
The decision has Olympic marketing officials scrambling to find a
replacement. "We believe this is an extremely marketable category," U.S.
Olympic marketing chief Mark Lewis said in Salt Lake City. "Delivering 50,000
ticket packages for the 2002 Winter Games and doing that in a reliable and
quick fashion is a great marketing platform to prove the sophistication of
any business." UPS was one of 11 global sponsors that donate at least US$50M
in cash, services or products over 4 years. Rumors abound that high-profile
disagreement with the organizing committee for the 2000 Sydney summer games
influenced the decision. UPS claimed that Sydney organizers allowed a rival
Australian delivery company, TNT, to promote its delivery of event tickets in
ways that violated UPS's marketing agreement. Two years ago, another
top-level sponsor, IBM, announced that it would end its association after the
Sydney games that were held this past Sept.
services into eBay's online marketplace. This agreement represents the 1st
time a transportation company has established a shipping center in an
e-marketplace. When a buyer & seller conduct business on eBay, UPS online
shipping options are now available from the eBay web site. From their "My
eBay" accounts, eBay members now have full access to UPS shipping tools &
services, so they can: calculate UPS rates; arrange for package pick-up &
industry's newest holiday toy collection effort -- Transportation for Tots --
completed its inaugural effort, but brought in only 1,500 toys & US$1,000 in
cash -- all for needy kids. The campaign was sponsored by Transportation.com
& the American Trucking Associations (ATA), the national trade association
for the trucking industry. The proceeds were donated to the U.S. Marine Corps
Toys for Tots organization. The campaign kicked-off at the American Trucking
Association's Annual Management Conference & Exhibition on Oct. 29 in San
Diego. There, a Yellow Freight trailer was loaded with more than 700 toys --
later given to the San Diego community. The Transportation for Tots trailer
ended its 6,000 mile trip on Dec. 16 at Wal-Mart in Shawnee Mission, Kan.
Transportation for Tots partners & contributors contributing to the program
included the U.S. Marines Toys for Tots campaign, Yellow Corporation,
eToys.com, National Industrial Transportation League, IBM, Wal-Mart, The
Midnight Cowboy Trucking Network & Community America Credit Union. Surely the
industry will do better next year.
partnership with TIMBERWeb PLC to provide logistics support for the online
electronic trading platform for the business-to-business timber/lumber
market. Through TIMBERWeb's Ariba Dynamic Trade eTrader platform, customers
can arrange for logistics & freight forwarding directly after completing a
deal for product purchase or sale. More, Schenker's Air & Seafreight recently
invited over 100 global managers to the 1st ever joint World Conference. The
stage was Dubai.
group has started a new subsidiary in Shanghai, Schenker Logistics (Shanghai)
Co. Ltd. The new company brings a focus on electrical components & systems,
telecommunications, automobile components, semi-conductors & chemicals from
its 6,100-square-meter logistics center.
recognition by Sun Microsystems for "outstanding performance" under Sun's
Supplier Performance Awards program. Presented recently at a ceremony at the
San Jose Convention Center, the awards honor achievements in the areas of
supplier cost effectiveness, quality, availability & technology.
Logistics North America. The name change concludes the integration of CTI
Logistx of Jacksonville, Florida, & TNT Logistics of Ontario. The merger came
about due to the Netherlands-based TNT Post Group's acquisition of CTI
Logistx from the CSX Corporation on September 22 this year. The combination
of the companies creates the 7th largest logistics company in North America.
logistics division of Belgian Railways, has acquired a majority interest in
the Japanese transport company HN Saima, increasing its stake to 51%. ABX
purchased shares from the Japanese group Hanshin. The transaction was funded
from the internal cash flow of the Italian company, Saima Avandero, which was
bought out by ABX in 1999. HN Saima employs a 100-strong staff & operates
primarily in the air/sea sector, as well as in logistics. The company is to
change its name to ABX Logistics Japan. In 1999 HN Saima's turnover stood at
some US$30.13M, significantly higher than the US$19.08M of 1998.
logistics provider based in London, has acquired Total Logistics Co., a
provider of similar services based in Australia & New Zealand. Founded in
1986, TLC manages supply chains in that region for pharmaceutical & health
care companies, including Pfizer and Johnson & Johnson.
statement with the U.S. Securities & Exchange Commission for an underwritten
initial public offering of its common stock. A substantial portion of the net
proceeds of the offering will be used to reduce outstanding bank debt. The
offering of shares will be led by Morgan Stanley Dean Witter, Credit Suisse
First Boston, Deutsche Bank, Merrill Lynch & Co. and UBS Warburg LLC. in the
1st half of 2001. More, Pacer has concluded its purchase of Rail Van, Inc.,
based in Columbus, Ohio, which supplies truck brokerage & rail supply
Customs is finally ready to start the bidding process for developing its
Automated Commercial Environment. Congress just passed a US$1.8-trillion
wrap-up appropriations bill, which includes ACE's 1st installment of US$130M
in funding for fiscal 2001. The bill awaits President Clinton's signature.
The system is needed to replace the agency's aging Automated Commercial
System, which is subject to "brown outs." Customs said ACS would eventually
shut down under the increasing volumes of data & trade demands. ACE is
expected to cost more than US$1.4B & take 4 to 5 years to build.
extending a test of its electronic quota preprocessing program until Dec. 31,
2002. Customs started the program 2 years ago to allow certain quota entries
(classified in the Harmonized Tariff Schedule under chapters 61 & 62) to be
processed prior to carrier arrival resulting in reduced quota processing
time. The test had been scheduled to terminate on Jan. 1. Customs will
continue the test at 4 ports. They are the Port of New York/New Jersey, JFK
Int'l Airport, the Port of Los Angeles, & Los Angeles Int'l Airport. The
agency said it wants to expand the test to all U.S. ports
industry wants to modernize the import entry process then the duty drawback
laws must also be significantly overhauled. The agency made this statement in the 3rd version of its Entry Revision Project, which was released this month. Drawback is a refund of custom duties paid on imported goods which are later re-exported or used in manufacture of exports. "It was a law designed for the 1930s," said John Durant, director of Customs' Commercial Rulings Division.
"Even without drawback, companies won't stop exporting. Drawback returns have
fallen off significantly in recent years due to Int'l agreements to reduce
tariff barriers, such as the North American Free Trade Agreement. Customs
paid US$433M in drawback refunds to the industry in fiscal 2000. Durant also
pointed out that drawback recipients often spend an average of 40% of their refunds covering administrative costs to process returns. It also adds significant processing costs to Customs' operations. "It's so cumbersome," he said. "It hurts both Customs & industry." Cumbersome or not, even a bad U.S. system is better than all the many nations which have no such fairness mechanism.
for holiday shopping convenience, the government warned those who buy goods
from abroad to check on the costs and rules for bringing them into the U.S.
Internet shoppers are liable for customs duties & other fees on imports. Such
fees - separate from normal shipping & handling charges - sometimes exceed an
item's retail price. Customs Commissioner Raymond Kelly said: "Shopping on the Internet seems quick & easy but buying gifts or other goods online from a
foreign source turns the shopper into an importer who may be subject to
complex import regulations.'' For instance, a permit is needed to bring in
soft cheeses such as brie & certain meat products such as pate, customs said.
A license is needed to import a gun, and made-to-measure suits from Hong Kong
are subject to quota restrictions.
exchange provider says that Tokio Marine & Fire, a Japanese insurance
company, has joined its system. Tokio Marine & Fire becomes the 1st insurance
company to join bolero.net. Tokio Marine said that it will use the Bolero.net
system to issue insurance certificates to its customers electronically around
the world. Bolero has just finished its first-round funding of US$50M.
Bolero.net reported that 50 large multinational corporations, banks,
logistics companies & business-to-business exchanges are now part of its
network, supported by 35 application & service partners.
purchase of up to 50.1% of the outstanding shares of common stock &
associated rights of American Freightways Corp. at a price of US$28.13 per
share. The cash tender offer, which was oversubscribed, expired Dec. 21,
2000. FedEx announced that approximately 16,964,992 shares were properly
tendered, including approximately 4,187,346 shares subject to guarantees of
delivery. As a result of the merger, American Freightways will become a
wholly owned subsidiary of FedEx.
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