Law Offices of Countryman & McDaniel


Air & Ocean Logistics - Customs Broker News

29 June 2004


Good Tuesday Morning from our Observation Deck......overlooking the officially designated "Cargo City" area and...... Runway 25-Right, at Los Angeles International Airport, voted "Best Cargo Airport in North America." Here's what happened in our industry during June 2004. Will U.S. Ports shut down this week? See our World Ocean News.

To help you find what you need -- FAST -- there's now a transport search engine installed at our Cargo Law.com website!

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 website.

Our corporate sponsor &endash;- Interpool, Inc. -- named again to Forbes "Best 200 Small Companies" List -- for the 2nd consecutive year! -- http://www.interpool.com/

Michael S. McDaniel, Editor, Countryman & McDaniel, forwarder/broker attorneys at LAX.

INDEX to The Cargo Letter:

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

1. Freight Forwarder Trade Briefs ______________                            

2. The Cargo Letter Financial Page ______________                               

OUR "B" Section:  FF World Ocean 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" _________             

OUR "E" Section:  The Forwarder/Broker World***

7. New Transport Related Legal Cases ___________            


 Back To Main Page


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

  1. Freight Forwarder Trade Briefs _____________

***The Competition For Free Trade ...... as the U.S. is working hard to implement more free-trade agreements to benefit U.S. companies, but is still far behind the European Union in using this method to open up markets, a U.S. trade official said this month. The EU has at least 35 free-trade agreements in place. When the Bush administration came to office, the only free-trade agreements ratified or negotiated were the NAFTA with Mexico & Canada, & bilateral agreements with Israel & Jordan. Since then the Bush administration has completed free-trade agreements with Chile, Singapore, Australia, & signed a Central American Free Trade Agreement with 5 countries that will probably also include the Dominican Republic. The Office of the U.S. Trade Representative (USTR) has begun negotiations with Colombia, Peru & Ecuador on an Andean Free Trade Agreement, as well as with Qatar and Thailand & is working on a hemispheric Free Trade Agreement of the Americas. The U.S. is trying to catch up to the EU "to make sure U.S. companies have an opportunity to get their products in those markets," said Gregory Walters, Director of Small Business Affairs. Speaking at the National Industrial Transportation League's seminar on "Free Trade & Logistics," Walters said a big reason for the disparity is that the U.S. seeks agreements that are broader in scope than those pursued by the EU. The EU's approach is strictly to gain market access for its exporters. The U.S. takes a more comprehensive approach to include labor & environmental standards, protection of intellectual property rights, & provisions on investment, distribution & services. The U.S. also includes agriculture in its agreements, while the EU until recently mostly focused on manufacturing because of its own agricultural subsidies. These types of agreements take longer to negotiate, but are necessary "so U.S. businesses can operate on a level playing field because a U.S. company has certain regulatory costs here" that do not exist in other countries, Walters said.

***Bahrain Is Next ..... as on June 15, President Bush notified Congress of his plans to sign the U.S.-Bahrain Free Trade Agreement within 3 months. U.S. law requires the president to give at least 90 days notice to Congress before signing a trade pact. Congress must approve legislation implementing the U.S.-Bahrain agreement before the pact can go into effect. USTR noted that two-way goods trade between the U.S. & Bahrain was US$887M in 2003. U.S. goods exported to Bahrain in 2003 totaled US$509M, including aircraft, machinery, vehicles, pharmaceutical products, toys, games & sports equipment, adding that U.S. exports of agricultural products to Bahrain in 2003 totaled US$14M, including poultry, snack foods, cotton, and processed fruit & vegetables.             

***But Burma Banned ...... as the U.S. Senate has passed a joint resolution that would renew the economic sanctions on Burma imposed by the Burmese Freedom & Democracy Act of 2003. The U.S. House of Representatives approved an identical resolution on June 14, 2004, so the measure will now be forwarded to President Bush for consideration. Under the Act, the ban will last a maximum of 3 years.

***Food From The Drive Through ....... as the new rules designed to thwart bioterrorists could disrupt U.S. food imports, food industry representatives told a panel of the House Energy & Commerce health subcommittee last week. Federal authorities will begin full enforcement (4th phase) in mid-August of the Bioterrorism Act of 2002 with a requirement that those exporting food to the U.S. give American inspectors advance notice before shipments arrive. Products shipped without prior notice will face difficulty. Just over half the estimated 400,000 companies impacted have registered, said the Food & Drug Admin.  Federal authorities inspect only about 2% of food imports, based on assessment of their risk, officials said. The new rules are intended by FDA to speed most products across the border, although some foreign exporters have said they will be driven out of the U.S. market. But so far the Act has not disrupted the industry as importers have warned. Since the start of the 3rd phase of enforcement June 4, there have only been 830 failed entries through the Automated Broker Interface, 591 non-compliant entries filed through FDA's Web-based system & 131 failed in-bond entries. Most entries were accepted once corrections were made. Only 96 shipments were returned to a foreign country & 2 shipments were abandoned. Importers & their agents are filing more than 20,000 prior notices per day through the existing ABI system for transmitting entry data to Customs.

***CSI To The Olympics ..... as with the Olympic Games in Athens just 2 months away, Greece agreed June 25 to participate in a U.S. Cargo Security Initiative designed to thwart terrorists from shipping people, supplies or weapons in sea containers. Greece is the 19th country to sign up for the Container Security Initiative, a program that places U.S. inspectors in foreign ports to select export containers for screening by home customs authorities. The U.S. will loan Greece x-ray type machines that can quickly produce an image of container contents in order to get the program running quickly at the Port of Piraeus transshipment hub. It is unclear exactly how CSI will protect Greece or the Olympic Games from attacks using inbound freight since the program is focused on exports to the U.S. However, the Dept. of Energy has said it would provide radiation detection equipment for Greek ports & border crossings, and it is likely the non-intrusive scanning machines will also be used by Greece to check other shipments. Greece is the 1st European country to join CSI since the U.S. & the European Community agreed to cooperate on setting eligibility requirements & standards for implementing CSI in EU member countries in April.

***DHL Will Come On Strong ..... as it plans to invest US$1.2Bn in its North America operations to significantly increase capacity & service options & US$150M on ads for the project. DHL, which purchased Airborne Inc. last year, is a unit of Germany's Deutsche Post AG. DHL said it would add 7 regional sort centers throughout the U.S. to increase ground delivery capacity by 60%. The centers would service air & ground services. After 2005, DHL said it would build another 5 sorting centers, bringing the total to 24 nationwide. DHL also said it was consolidating air hub operations from Greater Cincinnati/Northern Kentucky Int'l to a primary facility in Wilmington, Ohio. Beyond 2005, DHL plans to add 5 more centers and synchronize all 24 facilities with Canada & Mexico to fully enhance the North American network. This is big yellow Vs. UPS & FedEx.

***Mixed News On The Rail ...... as for the 4th time this year, intermodal traffic on U.S. railroads set a weekly record, says the Assn. of American Railroads. Intermodal volume of 220,285 trailers & containers for the week ended June 19 was 12.4% above the corresponding week last year, & 1,829 trailers above the record set a week earlier. Trailer traffic was up 15.3%, while container volume showed an 11.5% percent gain, AAR said. Through the 1st 24 weeks of the year, intermodal volume was 4.9 million trailers or containers, up 8.7% from a year ago.  But the news is not all good as there continue to be delays experienced within the U.S. rail network. With increased cargo movements, equipment shortages & allegations of insufficient investment in new infrastructure, these conditions are expected to worsen during 3rd & 4th quarters of 2004.       

***Runaway Train ...... as China's Ministry of Railways handled more than 182 million tons of cargo in May, an increase of 5.4% over same month last year -- as 99,158 freight cars were deployed to carry cargo each day throughout China, a rise of nearly 4% over May 2003. But the country's railway system is facing increasing pressure for freight services, especially in northwest China, because of the growing demand for energy & raw material brought about by the fast growth in the economy. For example, the railway authority in Lanzhou handled more than 28 million tons of cargo in the 1st 5 months of 2004, an increase of 1.93 million tons over same period last year. However, officials report the railway authority in Lanzhou is only capable of meeting one-third of the present rail freight demand in the area by providing 3,000 freight trains daily. Accordingly, the ministry has warned against overcharging shippers of essential state commodities. From Jan. to May, the railway handled 48.21 million tons of essential foodstuffs, nearly 15% more than in the same period last year. The transport of oil also increased by 12% to 49.06 million tons.     

***Another Mexican Roadblock? ....... as a California lawmaker has introduced legislation to bar Mexican trucks from traveling throughout the state unless they met federal air pollution standards. The bill by Assemblywoman Fran Pavley would require Mexican trucks meet the same federal air pollution standards for their model year as their U.S. counterparts in order to come through California. It has the support of environmentalists & California truckers. Pavley said she would not attempt to require the trucks to meet California's tougher state air pollution standards, but legal experts said that a law requiring Mexican trucks to meet federal pollution standards would likely face legal challenge. Gov. Arnold Schwarzenegger has not taken a position on Pavley's measure, the Los Angeles Times said, but we're sure "he'll be baack" on the issue.

***Debris Field ...... as according to new research released by the AAA Foundation for Traffic Safety, vehicle parts, cargo, or other material that has been unintentionally discharged from vehicles onto the roadway is estimated to cause over 25,000 crashes per year in North America resulting in approximately 80-90 fatalities.

***Farmer Brown's Trucking Company ...... as the price of diesel fuel has surged in California, stealing of diesel fuel from farmers' storage tanks has quadrupled in Fresno County & other parts of the Central Valley, the nation's richest farming region, the New York Times reported. Although there have been big diesel thefts in other states, law enforcement officials said California is in a category by itself because prices are highest in the nation & farmland extends across thousands of square miles, making it difficult to patrol. Through mid-June, authorities estimate thieves in the 8 counties that make up the Central Valley have stolen 46,000 gallons of diesel fuel.

***OrderPro Logistics - A Matchmaker ....... as its subsidiary, TransMex Logistics, has developed a customized equipment matching program as a result of the current equipment shortages (both intermodal & over-the-road) throughout Mexico. Due to the imbalance of trade between the U.S. & Mexico, exporters can wait up to a week for equipment availability This wait time has adversely affected the larger volume shippers. The TransMex created program is an effort to match higher volume importers with exporters who can support the demand for northbound equipment. TransMex retains control of the equipment, determining which northbound client will have access to the available equipment. This enables TransMex to offer premium equipment to northbound clients who can support southbound freight as well. One of the 1st participants in this program is Pacer Global Logistics between Mexican points & border gateways, TransMex's largest intermodal marketing client.

***Dope Bagging Up ...... as the World Customs Organization reports the number of drug seizures by customs administrations increased by 15% between 2002 & 2003. Afghanistan remains the world's largest opium source, while Morocco continues to be the main source country for cannabis resin, especially for the Western European market, the WCO said. Similarly, Asia-Pacific accounts for 98% of the world's methamphetamine seizures. In 2003, customs administrations globally seized about 64 tons of cocaine. This equates to a 35% increase over 2002. Nearly 87% of the cocaine seizures were made in Western Europe. More than 7 tons of heroin were seized in 2003.

***Easy As Lifting A Finger ....... as UPS will begin deploying wireless technologies, including Bluetooth & Wi-Fi, to package facilities & drivers in Europe to ensure customers continue to have the most up-to-the-minute tracking information available at all times. The 1st part of the deployment will occur inside UPS sorting centers & hubs. It involves pager-sized Bluetooth scanners, worn on the middle finger, which send package tracking data to small Wi-Fi (802.11b) terminals worn on the waist by package sorters. The Wi-Fi devices then send the tracking data to UPS's computer network, where it can be accessed by customers. When the enterprise-wide deployment is completed in 2007, UPS will have streamlined & standardized more than 55,000 ring scanners in 118 countries; integrated a number of UPS scanning applications into one, improved information flow, & decreased the cost of ownership. By eliminating cables that connect the ring scanners to the wearable terminals, UPS expects a 30% reduction in equipment & repair costs, as well as a 35% reduction in downtime & a 35% reduction in the amount of spare equipment needed. As part of the global deployment, UPS will install as many as 12,000 Wi-Fi access points in more than 2,000 facilities. The resulting Wi-Fi network is expected to be one of the largest in the world.

***Going To Market ...... as AuctionDrop has announced a major initiative that will extend their services through 3,400 locations of The UPS Store. Consumers simply bring unpacked AuctionDrop-authorized items to any The UPS Store location to be professionally packed & shipped to AuctionDrop's centralized processing hub. AuctionDrop's staff handles the necessary steps for selling an item on eBay, including photography, testing, research, listing, customer service, payment processing, re-packing, shipping, & returns.

***EXEL Moves To Excel ..... as it will acquire UK logistics firm Tibbett & Britten as part of a strategic move to combine the businesses. Five years in the making, Exel putting up a cash offer valued at US$601M. Exel said that, based on preliminary analysis, it could achieve cost savings of US$27.5M to US$36.6M per year resulting from the integration & elimination of duplicated functions. Exel has 67,000 employees.

***C.H. Robinson Worldwide Seeks 14 ..... as it will open 7 offices in China (Dalian, Tianjin, Qingdao, Shanghai, Ningbo, Xiamen & Shenzhen) & has entered into a binding agreement to acquire the selected assets of Dalian Decheng Shipping Agency Co., Ltd. on June 30, 2004. DDSA is a China-based NVOCC, with 14 office locations throughout mainland China.

***DHL Danzas Air & Ocean On The Border ..... as the logistics division of DHL, has established a brokerage facility in Pembina, North Dakota, on the U.S.-Canadian border.

***Swiss Buy Dutch ....... as Kuehne + Nagel has acquired the Dutch freight forwarder Nether Cargo Services for an undisclosed sum, in a move to extend in the perishables business & in Netherlands' airfreight market. Nether Cargo Services was established in 1990 & reported revenues US$36.72 for 2003.

***TNT Makes Dynamite Buy ..... as it has acquired Swedish-based global freight forwarding company, Wilson Logistics Group, founded in 1843, with revenues of US$863M in 2003. The purchase price was US$308M & has been financed from the logistic giant's cash reserves. Dutch postal, express & logistics group TPG is parent of TNT.

***Scanning On The Fly ...... as Xybernaut Corp. & Beijing Hualixing Sci-Tech Development Co., Ltd have a new cargo inspection solution for container scanning that can scan not only the contents of stationary containers, but even moving containers, such as rail cars. TC-SCAN Cargo Inspection Systems (CIS) will be marketed initially in Japan & Europe. The CIS solution operates on sea, air & rail containers as well as traditional truck bodies. Features include the ability to provide clear scans of container contents when the containers are in motion; the ability to be transported & set up at remote sites, lower cost than alternative devices; safe operation (about the same radiation level as flying in a commercial aircraft for 1 hour); the ability to detect targeted materials; and the ability to be programmed to search for any density compound. Thirteen TC-SCAN CISs are already deployed throughout China, the Middle East & Africa.

***The Postal Triangle .... as a campaign to highlight the quantity of letters that go missing each year has been given a stamp of authority after none of the letters arrived at their intended destination. Letters sent by Postwatch, the UK postal services monitoring group, to 49 members of Parliament urging them to report misdelivered or missing mail, disappeared without trace. Conservative Gillian Shephard, one of the intended recipients of the letters promoting the "Stamp out Misdelivered Mail" campaign said she had written to the chairman of the Royal Mail to complain -- but to date has received no reply. "Perhaps I should have faxed him," she said. The Royal Mail, accused by Postwatch of losing more than 14 million letters a year despite making substantial profits last year, said it had no record of the missing letters. "We have conducted a full investigation & have found no evidence of any problems in the relevant postal areas," a spokesman said. "As far as we are concerned, the letters are not in our system." >> A UK request to the U.S. Postal Service for consultation on the problem will be acted upon when the letter arrives next year.

***Uncle Eddy's Discount Consulting ..... as Edwin Wilson, the ex-CIA agent turned Int'l arms merchant who is serving a prison sentence for selling explosives to Libya, told the Washington Post he plans to set up a customs compliance consulting practice when he gets out of prison in Sept. Wilson, 76, was convicted in 1984 of gunrunning, selling plastic explosives to Libya & plotting to kill his prosecutors. But a judge recently threw out his conviction in the plastic explosives case citing the use of false testimony. On 22 June, Wilson told the Washington Post he plans to move to Washington & advise companies on import-export issues. Do we guess the commodity specialty?   

***Dreaming of The Old Days ..... as the Philippines Bureau of Customs is set to investigate the shipment of 50 boxes of beer from South Korea that were seized at the Cebu Int'l Port June 11 2004. The cargo arrived at the Port of Cebu aboard vessel M/V L. Bhum 235E, & filed under entry number 7377-04 but Customs had discovered that while the shipment was declared as dried mangoes, it actually contained San Miguel Beer bottles with contents. And while this major crime is tracked -- we're watching out for atomic bombs.   

***This Smoke -- No Joke ..... as Chicago lawyer Richard "Mick" Connors was sentenced June 7 to more than 3 years in federal prison for smuggling thousands of Cuban cigars into the U.S & selling them for a fat profit. Connors was taken into custody immediately, despite a request he be allowed to attend his daughter's wedding later this month. Witnesses testified that in the early 1990s he went to Cuba by way of Canada & Mexico almost monthly, bought cigars at US$25 to US$60 a box & sold them in the U.S. for up to US$400 a box. He was arrested at the Canadian border in 1996 with 1,150 cigars.   ________________________________________                            

  2. The Cargo Letter Financial Page __________ 

**FedEx. UP with 4th quarter net income of US$412M, an increase of 47% over Q4 last year -- revenue for the quarter reached US$7.04Bn, a 21% rise.

**Hyundai Merchant Marine. UP with a US$109M operating profit on US$1.04Bn in sales in 1st 6 months of its fiscal year. 

**UAL Corp. (United Air parent). DOWN with a net loss of US$93M for May 2004, including US$53M in reorganization expenses. However, UAL said it still met the requirements of its debtor-in-possession bankruptcy financing.

**Thai Airways. UP with an 11% rise in net profits to US$13.14M for Q2 ending in March.


***Alpine Air Express, Inc. Back In The Black ...... as the 3rd largest U.S. regional cargo airline, with a fleet of 29 airplanes & projected annual sales of $22M+, with its majority owned operating subsidiary, Alpine Air Chile, S.A., returned to profitability on gross revenues of US$2,817,691 with a net consolidated profit of US$64,173 for the 1st quarter ending April 30, 2004.  In April, 2004, the U.S. Postal Service awarded Alpine a multi-year contract to fly routes in the Hawaii. Alpine expects to transport approximately 50 tons of mail daily, with approximately 125 tons transported per night during the Christmas season.

***Interpool, Inc. Pays Dividend .... as it has a cash dividend of US$.0625 cents per share for the 2nd quarter of 2004 -- payable on July 15, 2004 to shareholders of record on July 1, 2004. Interpool is corporate sponsor of The Cargo Letter archives. 

***Gap Widens .... as the U.S. trade deficit widened in April to a record US$48.3Bn, the Commerce Dept. said.                           



OUR "B" Section: FF World Air News***

  3. Freight Forwarder World Air Briefs __________  

***Air Is THE Way To Go ........ as the value of air freight moved in the U.S. is US$2.7Bn a day, & has doubled from 1993 to 2002 to become the fastest growing segment of the cargo industry, according to a new report from the Dept. of Transportation's Bureau of Transportation Statistics. Between 1993 & 2002, the total amount of freight transported in the U.S. grew 18% to 16 billion tons, & the value of that freight grew 45% to US$10.5 trillion. Of that amount, trucking moved 64% by value & 58% by weight, BTS said. The report also said almost US$1 out of every US$13 shipped in the U.S. was for a shipment that required an air-truck combination.

***Landmark Agreement ..... as the number of weekly flights between the U.S. & China looks set to grow 500% after the countries signed an air services agreement this month, according to the U.S. Dept. of Transportation (DOT). The DOT added that the agreement will also substantially increase the freedoms of U.S. carriers doing business in China, including the right for U.S. cargo airlines to establish hubs in China. The last agreement to expand U.S.-China air services was concluded in April 1999, when each country's carriers were allowed to increase their weekly flights in the market from 27 to 54, & each side was allowed to designate one additional airline - for a total of 4 - to serve the market. The new agreement will allow 5 additional airlines from each country to serve the U.S.-China market. The U.S. may name one additional all-cargo airline, while China may name either a passenger or cargo airline, to start service later this year. The agreement also will allow an additional 195 weekly flights for each side - 111 by all-cargo carriers & 84 by passenger airlines - resulting in a total of 249 weekly flights at the end of a 6-year phase-in period. A total of 14 of these flights will be available for new U.S. passenger services later this year. UPS Chairman & CEO Mike Eskew applauded the landmark agreement, noting that it "will accelerate the flow of goods into & out of China, providing substantial benefits to American workers, businesses & consumers."

***We'll Look Later .... as the U.S. House of Representatives refused on June 18 to require inspections of all cargo shipped on passenger airline flights, heeding arguments that technology is not available, & losing the freight would drive carriers into bankruptcy. With its 211-191 vote, the House ignored election-year cries that the government must do what it takes to enhance security in an era of unabated terror threats. Currently, only a small percentage of cargo aboard passenger flights is inspected, & uninspected cargo is supposed to come only from shippers known to the government.

***We'll Think About It ..... as the European Union transport ministers rejected a U.S. proposal for an open skies agreement this month, saying they want further negotiations. The European governments reportedly want the U.S. to allow access by European airlines to the U.S. domestic cabotage market. EU officials say U.S. airlines already have some access to intra-EU routes.  The U.S. has agreed to allow up to 49% of a U.S. airline to be owned by European investors, an increase from the current 25% non-U.S. ownership ceiling. But the U.S. is not willing to open its domestic routes to European airlines.

***New Star Slower To Rise ..... as the new Guangzhou Baiyun Int'l Airport, originally due to open on June 21, is now expected to begin operations later this summer. According to airline sources, some equipment at the new facility is not quite ready for operations, with the baggage handling systems of particular concern. A recent test identified about 150 problems, including glitches in the communication & transport systems. But earlier this month China's state-controlled media was reported to have said most of the hitches had been resolved and the remaining "petty problems" would be cleared up by opening day --- these words last heard from Hong Kong's Chek Lap Kok Airport before the disastrous opening in July 1998. Baiyun, which will have annual capacity for 25 to 27 million passengers & 1 million tons of cargo by 2010 and 80 million passengers & 2.5 million tons of cargo by 2030, is trying to woo Int'l parcel delivery services & airlines crucial to its success. Air France, Singapore Airlines & Lufthansa are among the carriers due to have regular services to/from Baiyun.

***China Southern's Big Baiyun Box ...... as the airline has invested US$454M to set up the biggest airfreight facility in mainland China. The facility built in Baiyun Airport in Guangzhou covers 410,000 square meters & is expected to open on the same day as the Baiyun Int'l Airport. China Southern said 4 A330 cargo planes & 21 A320 aircraft will be signed by China Southern to be used next year, while 6 EMB145 aircraft are to be introduced in Guangzhou.

***Arrow Air Emerges Poetically ..... as its reorganization plan has won the approval of Chief U.S. Bankruptcy Judge Emeritus A. Jay Cristol. Under the plan, the nearly 60 year old, MIA based cargo airline will move forward without bankruptcy protection. The airline's emergence from bankruptcy took place in what is considered to be the shortest time for any Int'l air cargo carrier. Immediately after confirming the plan, Judge Cristol--himself an avid aviator--recited a poem he wrote about the airline's new phase: "As of today I shot an Arrow into the air. The reorganization plan was very fair. Go fly your birds everywhere. Haul your cargo with a great deal of flare. Keep your planes on the runway & out of the muck. May you continue to operate with the best of luck."

***Big Cargo Appetite ...... as Korean Air plans to convert 20 of its 747-400 passenger aircraft to freighters to take advantage of the growing market for air cargo in Asia. Boeing Co. said Korean Air ordered 20 conversion kits. Boeing will convert the 1st aircraft through a certified aerospace maintenance shop & redeliver the plane to Korean Air in Aug. 2006. Korean Air will convert the remaining planes.

***New U.S. Air Cargo Hub ....... as the Cincinnati/Northern Kentucky Int'l Airport will be able to send fully loaded flights to Asia thanks in part to a new US$18M runway & facilities investment being made by the U.S. Dept. of Transportation.  To be completed in 2005.

***Skyteam Welcomes Ivan ..... as it has accepted Russian airline Aeroflot's bid to become a member of its alliance. Aeroflot's entrance into the alliance is contingent upon approval from the Russian government & fulfilment of quality standards required by SkyTeam for all members. SkyTeam member airlines are Aeromexico, Air France, Alitalia, CSA Czech Airlines, Delta & Korean Air.

***Rebuilt TWA Flight 800 May Now Save Lives ...... as a 93-foot section of TWA Flight 800, which blew up off New York in 1996, has been reassembled & now serves as a teaching tool for air crash investigators at the at new NTSB Academy in Washington's northern Virginia suburbs at Ashburn, VA. The National Transportation Safety Board rebuilt a section of the 225-foot Boeing 747-100 in a hangar in Calverton, N.Y., as part of its investigation into the accident. Through peeled-off sections of the aircraft's skin can be seen rows of seats, many intact, that conjure images of the 230 people who perished minutes after takeoff from Kennedy Airport on a July 17, 1996, flight to Paris. The NTSB found that Flight 800 was destroyed by a center fuel tank explosion, probably caused by a spark from a short-circuit in wiring that ignited vapors in the tank. Safety board officials hope the reconstruction of Flight 800 will help teach aircraft accident investigators how to examine wreckage for clues to a crash's cause. The NTSB Academy itself is a result of the Flight 800 investigation & cost US$60M. 

***When Will That Air Container Arrive? ......... as a recent Travelocity.com study found:

Top 5 Airports with Fewest Flight Delays: 1. San Diego; 2. Milwaukee; 3. Seattle/Tacoma; 4. Ft. Lauderdale; 5. Tampa/St. Petersburg

Top 5 Airports with Most Flight Delays: 1. Atlanta; 2. Chicago O'Hare; 3. Newark; 4. Dallas/Fort Worth; 5. New York La Guardia.

***Loving The 737 ...... as U.S. carrier Southwest received its 400th Boeing 737 plane this month -- one of nine 737-700s Southwest will receive in June, part of 47 slated for this year. Southwest, the launch customer for the 737-700, has received 163 of the model since 1997. "Southwest almost single-handedly created the low-cost airline business model that so many airlines are striving for today," said Boeing.

***Still The Virgin At 20 ....... as Virgin Atlantic Airways celebrated its 20th birthday June 21.  Sir Richard Branson also marked the occasion this month by successfully setting a new Guinness World Record for completing the fastest crossing of the English Channel in an amphibian vehicle, Gibbs Aquada. Virgin Atlantic launched its 1st service on June 22, 1984 with 1 aircraft & 1 route, Gatwick to Newark.  Two decades later Virgin Atlantic flies to 22 different destinations worldwide as far apart as San Francisco and Shanghai with a fleet of 29 aircraft. 

***Volumes >> Dragonair carried 121,446 tons of cargo between Jan. & May 2004, compared with 99,514 tons during same period in 2003, up 13.7%. >> Frankfurt Airport (FRA) May throughput rose to 147,315 metric tons, an 18.2% increase year on year.                    



OUR "C" Section:  FF World Ocean News***

  4. FF World Ocean Briefs ___________________ 

***Deadly Piracy Again On The Rise ........ as the Piracy Reporting Center at the Int'l Maritime Bureau (IMB) said pirate attacks on commercial vessels in 2003 rose 20% to 445 incidents. Pirates killed 21 crew in 2003, more than twice the number of deaths in 2002, using weapons such as rocket-propelled grenades & recoilless rifles. In most incidents, the attacks were carried out by sophisticated crime syndicates, not by rogue criminals. Corrupt port officials who leak sailing schedules to pirates are responsible for many attacks, the Piracy Reporting Center said. Cargo losses per vessel in 2003 ranged from US$8M to US$200M. Indonesia's Navy Chief of Staff, Bernard Kent Sondakh has ordered his commanders to shoot dead armed pirates operating in key waterways including the busy Strait of Malacca & will meet soon with his counterparts from Malaysia & Singapore to seek ways to increase joint patrols in the Strait.

***U.S. Navy Eyes Pirate Booty ..... as Malaysian officials have accepted an offer from the U.S. Navy to help improve anti-piracy security in the Strait of Malacca, the sea lane that carries nearly one-third of the world's trade, reports the Information Warfare Site. U.S. naval patrols of the Strait have been ruled out for the narrow sea channel that runs past Malaysia, Indonesia, & Singapore. But accepted is the U.S. offer to share intelligence & maintain joint training exercises to help prevent a terrorist disruption in the channel.  It is understood that both sides made it clear that there will be no joint patrols of the waterway, and the U.S. will not try to usurp Malaysia's territorial primacy there.

***Security View From The Ridge ..... as the U.S. is in full compliance with the Int'l Ship & Port Facility Security Code that goes into effect July 1 around the world, Homeland Security Secretary Tom Ridge declared in a speech last week at the Port of Los Angles/Long Beach. Congress passed parallel legislation to meet U.S. obligations under the Int'l Maritime Organization rules and the Coast Guard is supervising the implementation by government agencies & industry of necessary security improvements identified through vulnerability studies. The Coast Guard has received nearly 100% of the security plans & assessments required under law, Ridge said. Ports & vessel operators have already begun adding security measures such as tighter background checks on employees and access control to sensitive areas, higher fencing, & surveillance cameras. The Coast Guard will now conduct simulated terrorist attacks on port facilities to determine where vulnerabilities still exist, Ridge said. Related testimony from U.S. Coast Guard:

***A Different Security View Abroad ...... as the Int'l Maritime Organization said "the status of compliance by port facilities" in meeting requirements of the Int'l Ship & Port Facility Security (ISPS) Code has not yet reached a satisfactory level, despite repeated calls to governments to intensify their efforts." In contrast, "most of the ships liable to the code will meet the July 1 target compliance date," said the IMO. "Unless prompt action is taken urgently by all parties concerned, we may live to regret any delay in acting, as we should have done within the 18-month period since the IMO security measures were adopted by the 2002 Safety of Life at Sea (SOLAS) Conference," IMO said. Ten days before the July deadline, 39 governments had responded to the IMO's most recent ISPS Code compliance survey, representing 83.6% of world merchant shipping by gross tonnage & 67.4% by number of ships. On June 21, out of 21,283 ships liable to the Code, 16,676 had submitted ship security plans. The governments had issued 7,015 Int'l Ship Security Certificates (ISSCs), for a total of 33%, up from 28.7% on June 16. Also June 21, out of 6,582 port facilities liable to the Code, 2,244 had submitted port facility security plans. Only 1,065 had their plans approved, for a total of 16.2%, up from 10.8% on June 16. As an example of the problem, Santos port officials in Brazil say their security plan will be approved before July 1 -- but that it will take months to implement, including constructing miles of higher fences, installing an electronic identification system for 20,000 people who pass through the port's 60 entrances daily and putting up a closed circuit monitoring system with nearly 500 cameras (check back in 2010). Ships heading to the U.S. from ports that don't comply with the code, for example, could be searched by the U.S. Coast Guard and, in the most extreme cases, be ordered back to sea.   


ISPS Code Database

***Will Concerns Shut U.S. Ports This Week? ....... as the American Trucking Assn. (ATA) has raised serious issues facing intermodal freight carriers. While the threat of a port shutdown by independent truck drivers looms, ATA offers its insights into what intermodal trucking firms consider to be their key issues. Without resolution to the issues, the group says the future of intermodal freight capacity is at stake.  ATA says that for decades, foreign-owned Steamship Lines (SSLs) have engaged in harsh business practices & received special antitrust exemptions that have combined to establish an increasingly difficult business environment for motor carriers engaged in moving intermodal freight at U.S. ports. ATA mentions recent flyers circulating among independent drivers calling on them to park their rigs from June 28 through July 4th, in order to force a "Nationwide Shutdown" of America's ports. Issues cited by ATA include:

--  The SSLs own or lease more than 750,000 chassis, & interchange them to trucking companies to deliver intermodal containers to the SSLs' customers. If motor carriers refuse to take unsafe or non-compliant chassis, eventually the carriers  are punished by being offered no further work.

--  Many foreign-owned SSLs do not spend sufficient money to maintain & repair their own chassis to meet existing federal safety regulations.

--  Increasingly, motor carriers are being directed to reposition intermodal equipment without prior notice by the SSL -- without additional compensation for these secondary moves.

  --  Many months after freight is delivered, the motor carrier gets paid less than previously agreed rate. If the motor carrier insists on the agreed rate, SSLs simply refuse to pay. Truckers then face overwhelming potential court costs, and/or a high probability of being shut out of the market. 

  --  Motor carries are generally required to sign onto a common contract called the Uniform Intermodal Interchange & Facilities Access Agreement (called "UIIA") whereby motor carriers agree to be responsible for the chassis which they do not control, do not own, & cannot maintain.

  --  If a chassis breaks down on the highway, the motor carrier must fix it, & then attempt to seek reimbursement from the foreign SSL. Motor carriers lose thousands of dollars annually in unreimbursed repair expenses to fix the SSLs' chassis. 

  --  Time spent in ports by drivers can range from 30 minutes to 4 hours or more (2-3 hour delays becoming common). These delays reduce significantly the number of deliveries a driver can perform. Truckers are often paid a flat rate for delivering a container -- so extra time hurts. (All according to ATA)

***Pssst! Port Shut Down? ...... as a flyer has been distributed to harbor drivers throughout several U.S. ports over the past 2 weeks, targeting the period of June 28-July 4 as a possible time period for work stoppage. The goal of the action, the flyer alludes, is to highlight increased trucker costs for fuel & insurance as well as a lack of increased compensation by their customers. However, a Port of Long Beach statement said: "Many [in the industry] feel that a work stoppage is unlikely to occur because fuel prices have recently decreased & truckers lose income when they do not work." Port staff are closely coordinating communication efforts with various state & police agencies as well as the Ports of Oakland & Los Angeles to keep those in the trade up to date & informed of developments. June 28, 200 truckers on strike at Newark & 30 at New Orleans. Fizzle?

***End of Track For Immunity Approaching? ...... as the European Shippers' Council has welcomed the European Commission's competition directorate's discussion paper & its view that the antitrust immunity of liner conferences in Europe appears not to be justified. "ESC is greatly encouraged by the European Commission's proposal to repeal Council Regulation 4056 of 1986 that has given shipping lines immunity from normal rules of competition," the Brussels-based shippers' organization said. The EC is now expected to come forward with a "white paper" containing concrete proposals for action "leading to the withdrawal of current block exemption for liner shipping," the ESC added. The EC paper, said EC services "would propose to repeal the present block exemption for liner shipping conferences."  Organizations representing ocean carriers, who want to retain the pricing immunity of conferences, have not publicized their reactions to the EC document. Carriers are expected to argue that the review is not over. One deciding factor in the reform of the conference antitrust immunity in Europe will be that European member governments, rather than the EC, have the final say in any reform or repeal of the regulation.

***Singapore Follows Canada & U.S. ...... as ships calling at Singapore will now be required to complete a security form 24 hours before arrival, the Maritime & Port Authority (MPA) of Singapore said in a new port circular, which also gives guidelines for ships coming from so-called "dirty" ports. Coinciding with the new Int'l Ship & Port Security (ISPS) Code which comes into effect July 1, the MPA is requiring all passenger ships, cargo ships of 500 gross tons and above & mobile offshore drilling rigs to submit a Pre-Arrival Notification of Security (Pans) 24 hours in advance. The Pans includes information on whether the vessel is in possession of a valid Int'l Ship Security Certificate (ISSC), the current security level of the ship, the last 10 ports of call, and whether any additional security measures were taken during any ship-to-port or ship-to-ship interface.

***Cook'in At Shanghai & Tianjin ...... as the China mega ports witnessed double digit growth during the 1st 5 months of the year. Foreign trade through the Port of Shanghai amounted to US$105.6Bn, up a whopping 43.8% compared with the same period in 2003, according to figures released by Shanghai Customs. Exports accounted for US$58.32Bn, up 42.3%; while imports accounted for US$47.3Bn, up 45.8Bn year-on-year. Meanwhile, import & export trade through the Port of Tianjin during the same period rose 39.1% to US$24.5Bn. Exports accounted for US$13.44Bn, up 37.2%; while import accounted for US$11.06BN, up 41.5%, according to figures released by Tianjin Customs.

***The Mighty Few ...... as only 15% of all the berths in China along the eastern coast of the country are handling 85% of the country's cargo throughput, according to the "China Industry Annual Report (2004)" compiled by the mainland's State Information Center. According to the report, the remaining 85% of berths in the country are small & medium sized and therefore can only handle the remaining 15% of China's freight volume. In addition, the report highlights the fact that port charges in China remain low, giving port operators a greater opportunity to make a profit. The report also suggested that container ports in the mainland's coastal areas as well as logistics & river ports located in what it described as "convenient places" will be the attraction for investment in years to come.  

***Giant Joins The Giant ..... as the Port of Rotterdam said it expects the Dutch government approval for the construction of a 2nd giant container terminal to be called "Maasvlakte 2." To be built by reclaiming land from the sea, the new container terminal will occupy 2,500 acres & provide an estimated handling capacity of about 8 million TEUs a year, according to the Port of Rotterdam. Construction of the dike & the filling of the area with sand will cost US$3.1Bn. New roads will also be required, as well as the building of quays, other civil works & the purchase of handling equipment. Rotterdam is already the largest container port in Europe.   

***Joining The Million TEU Club ...... as Port of Houston Authority (PHA) has celebrated the groundbreaking for the Bayport Container & Cruise Terminal with a special ceremony held at the industrial site on June 21. Built out in phases over 15 to 20 years to meet market demand, Bayport is expected to have enough space for 7 ships & a 378-acre container storage yard. It will have a maximum capacity of about 2.3 million TEUs - a 200% increase over PHA's current container handling capacity. Completion of the 1st phase of Bayport is targeted for mid-2006. The 1st phase will include 1,700 feet of the ultimate 7,000 foot wharf & approximately 65 acres of the ultimate 1,043 acre facility. 

***L.A. Is SAFEr .... as part of its approach to continually update the Port of Los Angeles' comprehensive security plan, the Harbor Commission has approved a contract with SAFE (Secure Around Flotation Equipped) Boats Int'l for 2, state-of-the-art Port Police patrol boats, used to protect & maintain the Port's borders & boost waterside security. The SAFE Boats will cost approximately US$800,000. The U.S. Coast Guard uses identical boats, which feature full, 31- & 36-foot cabins & a lightweight construction that allows faster response time. The 2 rapid-response SAFE(TM) Boats will be used to patrol the Port's 3,300 acres of water, which spans 43 miles. The L.A. Port Police is the only U.S. police force dedicated exclusively to port activities. Port Police enforce all federal & local laws applicable to Port responsibilities, including cargo protection, pollution investigation, vessel traffic control & narcotics interdiction. Indeed, the cost of a modern port is high, as Los Angeles has just adopted a US$600.1M fiscal year 2004/2005 budget which will support enhanced security measures, environmental programs, operational efficiencies, community outreach, maritime education, & customer-oriented requirements for the Port of Los Angeles. Operating revenues are estimated at US$400.6M, an increase of 25.4% over last year's budget, primarily due to anticipated higher cargo throughput anticipated next year.

***Breathing Easy At Port of Los Angeles ...... as it opened the world's 1st Alternative Maritime Power (AMP) container terminal at Berth 100 of the China Shipping terminal on June 21. AMP involves fitting the wharf with electricity, converting the electricity to a voltage compatible to a ship through a transformer, and then plugging-in the ship to the clean electrical power instead of its diesel engine while the ship is at dock. Through this process, more than 1 ton of smog-forming NOx (a mixture of nitrogen monoxide & nitrogen dioxide) & 87 lbs. of particulate matter in the air is removed from the air each day the ship utilizing AMP. Six additional Port customers have signed Memorandums of Understanding to study the use of AMP at their terminals.

***Almost Quiet ...... as rank & file members of the Int'l Longshoremen's Assn. (ILA) at ports on the Atlantic & Gulf Coasts approved a 6-year master contract on June 8. However -- several ILA port areas rejected their local agreements & will resume bargaining in order to reach a settlement within the next 4 months, when their local contracts expire.

***Panama Maritime Authority Almost Ready ..... as the agency that administers the Panamanian shipping registry reported it has issued full term Int'l ship security certificates to 65% of the fleet that has filed its ship security plans. Some 4,677 ship security plans had been filed by ship owners & approved. Eight days before the July 1 deadline of the IMO's Int'l Ship & Port Facility Security code, the Panama Maritime Authority said it has issued some 3,059 5-year Int'l ship security certificates to the vessels that have completed all requirements for the issuance of the certificates. Panama is the world's largest shipping registry, more than 20% of the world shipping tonnage.

***Slowing The Ditch .... as the Panama Canal Authority faced a backlog of 55 vessels waiting to transit the Canal earlier this month, but predicted it would improve the situation. The backlog is due to a lane outage & a 15% increase in traffic, the Authority said. Vessels waiting to transit the canal should return to normal levels -- below 40 -- shortly. On June 8, the Canal Authority reported that one of its lanes was closed to replace the locomotive tow tracks at its Atlantic locks. The lane is now back in operation. These lane outages are scheduled to take place once every month, for a maximum of 11 days for each outage, from June until Oct.

***Wi-Fi At Port of Amsterdam .... as a new network covers the whole Port area & brings mobile wireless network access to the Port Authority vessels up to 2000 meters from shore.

***Evergreen's Tall Order ..... as the Taiwan shipping group has ordered 14 large containerships from the Japanese shipyard Mitsubishi Heavy Industries & plans to order another 20 "S-type" vessels of 7,000-TEU capacities from the same shipyard after the fall of 2008 & another 20 "B-type" ships of 8,000 TEUs. The total order, if confirmed in full, represents 54 ships & exceeds the 49-ship, US$3BN ship order plan announced in 2003. The latest order from Mitsubishi is for 10 ships of 7,000-TEU capacities & 4 of 4,500 TEUs, due to be delivered between Aug. 2005 & Aug. 2008.  

***Empty Sack ..... as more than 40 containers, each filled with 21 metric tons of Brazilian coffee, were cleared by Brazil Customs at an inland facility in late 2002 & early 2003 and taken by trucks to Port Santos for shipment to New Orleans, Rotterdam & other ports. When they were opened, there was only dirt, cement or sand inside matching the weight of the purported coffee.

***Once 80 Proof Ship To Regain Punch ..... as the 19th century clipper Cutty Sark -- once one of the fastest ships afloat but now decaying in dry dock -- needs urgent repairs costing over 12 million Britsh pounds. "She is falling apart," says Marie-Helene Bowden of the Cutty Sark Trust, of the ship that 1st brought tea from China in 1869 & is now a major London tourist attraction. In an ambitious scheme, the dry dock where it has stood for 50 years would be flooded & the ship's hull filled with water to help treat rust & corrosion riddling the ship. Thanks to an innovative way of blasting rust by passing an electrical current through the water to the ship's metal frame, the vessel would keep most of its original parts & remain intact. Chlorides, the major culprits of corrosion, would be "sucked out" of the ship's ironwork & wood. A solution would also be put in the water to fend off any bacteria harming the woodwork. An trial experiment on part of the ship's base began in Nov. & has already proved successful. Cracks in the timbers leak around 700 liters of the water a day into the dry dock at Greenwich, southeast London, graphically demonstrating the extent of the damage. Project leaders said that once the scheme was given the go-ahead, the dock would be filled with water to balance pressure inside & stop the leaks. "It is miraculous that it has lasted for 135 years & hopefully, when our work is complete, it will last for another 150 years," said the project site manager.

***Throughput >> Port of Dalian handled 170,000 TEU in May, up 35% year on year. >> Port of Fangcheng in Guangxi Province handled 33,000 TEU over the 1st 5 months of the year, up 26% year-on-year -- & 7.068 million tons of cargo, up 29.2% -- a record high on services to 738 vessels. >>  Port of Hong Kong's total throughput was 9.07 million TEU from Jan. to May, up 11.7% year-on-year. >> Port of Long Beach handled 468,029 TEU in May, a 20.5% increase over the 388,386 TEU recorded for same period 2003 -- 242,910 TEU were imports, a 23.6% rise; while exports reached 84,502 TEU, a 10.3% growth, while empties handled by the port amounted to 140,617 TEU last month, a 22%  increase over May 2003. >> Tianjin Port throughput was 333,100 TEU, up 40.3% year-on-year.

***Lure of The Sea? ..... as police in Cyprus are investigating reports of group sex cruises offered to British tourists off the holiday island, authorities said June 25. Vacationers are suspected of lewd acts aboard a cruise ship(s) which carries out short cruises from the Ayia Napa resort in south east Cyprus. "We are at the initial stage of inquiries. It is early to say whether criminal offenses have been committed but it does appear there is a case to answer," deputy police chief Sotiris Charalambous said. Police said the drugs & "bombes" -- a lethal mix of cheap spirits & pure alcohol -- may have been given to women passengers oblivious to the organizers' motives. Private Mega television has shown pictures it said were taken aboard one cruise boat crammed with people, with several of them in a state of undress. One Web site advertising cruises from Ayia Napa has explicit images splashed across it with pictures of characters dubbed "Popeye the Sailor" & "Father Sleaze." Yes, Google has this.

***This Month in U.S. Navy History ___

1813 - USS President anchors in Bergen, Norway.

1833 - USS Constitution enters drydock at Charlestown Navy Yard, Boston for overhaul. Vessel saved from scrapping after public support rallied to save her following publication of Oliver Wendell Holmes' poem, "Old Ironsides."

1865 - Confederate raider Shenandoah fires last shot of American Civil War in Bering Strait.

1917 - Navy convoy of troopships carrying American Expeditionary Forces arrives in France in WWI.

1933 - Commissioning of USS Macon, Navy's last dirigible.

1945 - Okinawa declared secure after most costly naval campaign in history. U.S. had 30 ships sunk & 223 damaged, mostly from kamikaze attacks, with 5,000 dead & 5,000 wounded, while the Japanese lost 100,000.

1948 - Berlin airlift initiated to offset the Soviet Union's blockade access of U.S., France, & Great Britain to their sectors of Berlin.

1950 - North Korea invades South Korea beginning Korean Conflict. 

1950 - To support United Nations call to assist South Korea, President Harry S. Truman authorizes U.S. naval & air operations S. of 38th Parallel, Korea.  


   5. The Cargo Letter Cargo Damage Dispatches                        

            **Back By Popular Demand**

We're sorry, but there were so many sinkings, explosions, pirate attacks, fires, cargo mishaps, battles on the water & other disasters at sea that we do not have room to print even the highlights this month. Many people lost their lives at sea this month!!

But you can read all this month's disaster news at our special Internet web feature which provides full details of each event -- our Vessel Casualties & Pirate Activity Database.  Bookmark the site and visit every day! Updated twice daily.

SPECIAL NOTE:  Please view the dramatic new pictures at our special "Gallery of Cargo Loss" website feature. 

See our new photo feature for June 2004: "Sea (to) Land Express"

NOTE: 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.  It's dangerous out there.



OUR "D" Section:  FF in Cyberspace***

  6. The Cargo Letter "Cyber Ports Of Call"                      

Here are our suggested world wide web sites of the week for your business, your information and your amusement..............

80% of Companies At Wi-Fi Security Risk

Is Just In Time Dead?

Marine Surveyor On-Line Courses ....... from State University of New York

Masters of Logistics Study ...... Logistics Management, Georgia Southern University & the University of Tennessee. Quick survey needs you. Are you a Master?

Office of Foreign Assets Control ...... updates file of blocked persons.

Patterns of Global Terrorism 2003 ........ U.S. Dept. of State released details of 208 acts of Int'l terrorism during 2003, including at least one act of maritime terrorism. On 2 April 2003, in Dravao, the Philippines, a bomb exploded on crowded passenger wharf - 16 killed & 55 wounded.

Preliminary Determination of Antidumping Investigation: Wooden Bedroom Furniture From China

Remarks by Deputy Secretary of Homeland Security James Loy at the National Cargo Security Council Annual Convention ..... June 15, Las Vegas.

RMS Titanic Protection Agreement

Supply Chain Management: How Nike Recovered From Its Supply Chain Disaster

U.S. Dept. of Agriculture's Foreign Agricultural Service ......2002 Trade Act established program to provide technical assistance & cash benefits to farmers & fishermen negatively impacted by imports.

U.S. Int'l Trade Commission Report: Economic Effects of Significant U.S. Import Restraints - 4th Update.     



Asia Pacific Logistics and Who's Who In Logistics? ...... Armstrong's Guide to Global Supply Chain Management.

Flight Explorer Professional Version 5.0 ...... flight tracking & weather

Utility MTS ..... 1st web service to track materials at the shipping unit level.

Vigilo Risk .......new security briefing for the global transport, insurance & supply chain industries.



Transport Events

15th Annual BreakBulk Conference & Exhibition .... Sept. 15-17, 2004, New Orleans Marriott in New Orleans, LA.

2004 SNAME Maritime Technology Conference & Expo ...... Sept. 30 to Oct. 1, Washington Hilton, Washington, DC.

China World Shipping (CHI Shipping NA) .... 15-16 July 2004, China World Hotel, Beijing. Hosted by COSCO Group, Drewry Shipping Consultants & Maritime China.

Forum for Motor Carrier General Counsels ..... July 25-28 at The Lodge at Vail, CO.

Pacific Homeland Security & Natural Disasters Conference and Expo ... Oct.5-6, 2004, Marriott City Center, Oakland.

TMC Int'l ....... 3rd annual meeting in Mexico City July 15-16.

U.S. Maritime Security Expo ... Sept. 14-15, Jacob Javits Convention Center, New York.

Wireless Warehouse Europe Conf. & Exhibition ....Oct. 14-15, Brussels.


FOR FUN>>>>>>>>>

Int'l High IQ Society ..... take the test.




OUR "E" Section:  The Forwarder/Broker World***

  7. New U.S. Transport Related Legal Cases _____ 

Port of Stockton Vs. Western Bulk Carriers

9th Circuit U.S Court of Appeals

June 15, 2004).

Failure of prevailing party to seek attorneys' fees when it prevailed in a lawsuit means that attorneys' fees generally will not be awarded. A ship owner sued the port authority after ship was delayed due in part to excess sedimentary deposits in shipping channel. Port authority prevailed in this case, but neglected to seek attorneys' fees until it was too late -- 2 years later, the port authority brought a separate action to recover its attorneys' fees & costs in the earlier action. Court held that the port authority waived its claim to attorneys' fees when it failed to file an appropriate motion within the relevant time in the original litigation. Read the decision.  


Written from wire stories, the Associated Press, Reuters, Hong Kong Shipping News, Lloyds & other world sources.


The Cargo Letter Correspondents:

Michael S. McDaniel Esq, Editor (Countryman & McDaniel)

David Schuchman -- Interpool Corp. -- Webmaster of The Cargo Letter Archive


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