Law Offices of Countryman & McDaniel


Air & Ocean Logistics - Customs Broker News

29 June 2005


Good Wednesday 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 is our industry review for June 2005.

READERS NOTE: There was no Cargo Law.Letter for May 2005, while we were on assignment in Eastern Europe & the Balkans.

We are often asked whether Countryman & McDaniel, conducts training seminars. Yes, from multiple Fortune 100 companies, to smaller forwarders, to the U.S. government, to insurance companies -- for years we have conducted inovative programs for domestic & Int'l claims, Customs, security, trade compliance & post 9/11 industry business practice. McD

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/trade consultant 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 _____________

***Sino Solo ..... as 3rd-party logistics providers (3PLs) increasingly operate in China without a local partner, according to a survey by Eyefortransport. Of those surveyed, 68% are working in China without any Chinese joint venture partner, the "3PLs' Views on the Logistics Landscape in China" survey found. "With regulations on internationally owned companies operating in China being gradually eased, and the government lifting previous restrictions a few months ago due to increasing demand for wholly foreign-owned enterprises, it appears that many global players have opted to set up independently," the survey said. For the 32% that do work as part of a joint venture structure, respondents were asked what they felt were the key benefits to their company in maintaining this strategy. Of these, 32% believed the key benefit of working as a joint venture is the improved operational knowledge & expertise they can gain, and 26% viewed increased brand awareness & reputation within the industry as a key benefit.

***Costliest WTO Dispute Takes Wing ....... as as the U.S. intends to file suit at the WTO to resolve its complaint that EU member states improperly subsidize Airbus, which has overtaken Boeing as the world's largest aircraft maker. The EU responded with its own request to open a formal inquiry into what it claims are illegal subsidies to Boeing after negotiations to resolve the trade impasse broke down. "The United States wishes to talk only about the immediate ending of European launch investment for Airbus, and has never wanted to engage in a serious, even-handed discussion of the much larger subsidy programs for Boeing," said EU Trade Commissioner Peter Mandelson in a statement. "I am confident that launch investment for Airbus is compatible with WTO rules. I also believe that the U.S. is vulnerable on what Boeing receives," he said The dispute is shaping up to become the costliest WTO dispute ever. The EU said the main focus of its concern was subsidies that Boeing received from Washington to locate production of its new 787 aircraft in the state. The EU said tax exemptions & other favors received by Boeing are worth more than US$7Bn, not including billions of research & development grants from the federal government for space & defense projects that have applications for 787 production.

***Border Siege At Nuevo Laredo ...... as Mexican soldiers-turned-drug hit men have taken this border city with the U.S. to the brink of anarchy, infiltrating local police & threatening anyone who gets in their way. Residents & law enforcement officials say the men are the feared Zetas, former members of a military intelligence battalion sent to the border to fight drug trafficking. Instead, they joined the Gulf Cartel, one of Mexico's top drug gangs. They adopted the name Zetas - a radio code for a military commander - recruited followers & made the city of 300,000 their home base. For the past 2 years, the city of tree-covered plazas & hacienda-style restaurants has lived in a state of siege. Many residents are afraid to leave their homes at night, and few tourists venture over from Laredo, Texas, leaving the city's handful of horse-drawn buggies idle. Killings and police corruption became so brazen that President Vicente Fox was forced to send in hundreds of troops and federal agents in March, and the only man brave enough to take the job of police chief was gunned down hours after he was sworn in this month. Nuevo Laredo is the busiest trade area along the U.S.-Mexico border, with an average of 6,000 cargo trucks crossing daily into Texas carrying 40% of Mexico's exports. Just across the Rio Grande is Interstate 35, a main north-south U.S. artery. It's a doorway to the U.S. for millions of dollars of legal & illegal goods. It's stranger than fiction. 

***Textile Steps Taken ....... as the Chinese government on 30 May revoked self-imposed export tariffs on several categories of textile & clothing products in retaliation against import restrictions imposed by the U.S., as well as an EU move to impose similar restrictions. The Chinese move came just 10 days after it announced that it would raise export tariffs 5-fold on 74 categories in an attempt to prevent the U.S. & EU from restricting imports. The government had said at the time that it would remove export tariffs from any categories subject to import restrictions. According to the Customs Tariff Commission of the Chinese cabinet, the decision to revoke export tariffs was made "in the wake of the EU's decision to impose quotas on imports of Chinese textiles, as well as the U.S. decision to re-impose restrictions on 7 kinds of Chinese textile & clothing imports recently." Chinese Commerce Minister Bo Xilai said that all 81 categories for which export tariffs were cancelled were threatened by US & EU import restrictions.

***UPS Adds Major Ground Option ....... as last month while The Cargo Letter was on hiatus, there was a definitive agreement for UPS to acquire Overnite Transportation for US$43.25 per share, or approximately US$1.25Bn in cash. The transaction will allow UPS to expand its service portfolio by offering a variety of less-than-truckload (LTL) & truckload (TL) services to its North American customers. It also will immediately position UPS as a top U.S. LTL carrier & comes just 5 months after the company expanded its air freight services by acquiring Menlo Worldwide Forwarding (formerly Emery). Based in Richmond, Va., Overnite reported net income of US$63.3M in 2004 on revenue of US$1.65Bn. The carrier serves more than 60,000 customers in the LTL & TL segments with operations in the U.S., Canada, Mexico, Puerto Rico, Guam & the U.S. Virgin Islands.

***World Agreement On Cargo Security ...... as the 166-member World Customs Organization voted last week in Brussels, Belgium, to approve an agreement on Int'l standards for cargo security. The non-binding inspection regime has been championed by the U.S. Several countries, including the U.S, Japan, EU nations, Australia & Canada immediately declared their intent to implement the shared principles & assist developing countries in modernizing their border controls. Customs authorities that adopt the new standards are expected to develop systems for electronically capturing shipping data before cargo embarks from a port, use risk management techniques to sort out which containers to inspect and do an outbound inspection using large-scale X-ray-type imaging and radiation detection equipment at the request of the importing nation. The goal is modeled on the U.S. strategy of trying to detect a terrorist weapon in a container before it arrives at a U.S. port.  In addition to providing a road map for customs-to-customs cooperation, the framework calls on customs authorities to expedite customs clearance for companies that prove they have tightened their internal controls for packing a container and ensuring its integrity during transport. Customs authorities that adopt the broad framework must still work out details on how to share information or recognize each other's procedures on a bilateral basis. The U.S. is prepared to provide US$15Mto US$20M during the next 2 years to assist developing countries interested in implementing global supply chain security standards endorsed by the World Customs Organization. U.S. Customs & Border Protection plans to spend US$400M in fiscal 2005 just to manage its own cargo security programs & purchase detection equipment.

***Iran Raises Its Hand ..... as it is to start membership negotiations with the WTO, after the U.S. chose not to block Iran's request for accession at a 26 May meeting of the WTO General Council. The General Council duly established a Working Party on Iran's accession and granted the country observer status, which allows it to sit in on all WTO meetings.  The decision to start accession talks does not mean that Iran will soon become a Member of the WTO. Membership negotiations can take years. Iran, home to the world's 2nd largest reserves of crude oil, will have to carry out far-reaching economic reforms; it must also negotiate bilateral agreements with all Members that wish to do so to in order to secure their support for its membership.

***"Deemed" A Problem ....... as a coalition of large high-tech industry groups called the Bush administration's proposed changes to licensing rules that determine which foreign nationals gain access to U.S. technology development "unfortunate and self destructive." The so-called U.S. "deemed export" rule requires the Commerce Dept. Bureau of Industry & Security (BIS) and State Dept. Office of Defense Trade Controls to determine whether an export license is required to release technological know-how to a foreign national working in the U.S. Since the Sept. 11, 2001 terrorist attacks, the Bush administration & some members of Congress have called for the Commerce Department to strengthen these controls. In particular, the proposed rule, which was released for public comment March 28, would make use of the individual's birth country rather than the country of most recent citizenship or permanent residence as criteria for deemed export licensing. An Iranian-born Canadian green card holder would be considered an Iranian under the proposed rule, leading to denial of an export license for the individual.

***Tianjin On Fire ...... as trade over the 1st 5 months of the year in Tianjin increased by 26% compared to same period last year & amounted to US$30.81Bn, in statistics provided by the city's customs authority. Exports came to US$17.22Bn, while imports totalled US$13.59BN, up 28% and 23% respectively over the same period last year. The European Union, U.S., Japan & Korea remain Tianjin's main trading partners with a total trade value of US$19.28Bn, representing 62.6% of the city's total trade.

***Mexican Rice Bad ...... as the World Trade Organization panel has sided with the U.S. over a dispute involving Mexican antidumping duties on American long grain white rice imports. The WTO panel agreed with the U.S. that Mexico's antidumping duties on rice and various provisions in its antidumping and countervailing duty rules are contrary to WTO rules."Mexico's laws were not applied fairly, and we believe that disadvantaged our rice farmers," said U.S. Trade Representative Rob Portman in a statement. Mexico is an important export market for U.S. rice farmers. Last year, Mexico imported about US$183M of rice from the United States. Mexico imposed antidumping duties on U.S. white long grain rice in June 2002. In addition, Mexico passed amendments to its antidumping and countervailing duty laws in Dec. 2002.The U.S. requested a WTO dispute settlement panel in Sept. 2003, and the panel was established on Nov. 7, 2003. Under the WTO rules, both parties will have an opportunity to appeal the panel report to the WTO Appellate Body.

***Canadian Hard Red Wheat Good ...... as North American Free Trade Agreement panel has found that imports of Canadian hard red spring wheat cause no injury to U.S. producers as was claimed by the U.S.  In Sept. 2002, the North Dakota Wheat Commission and the U.S. Durum Growers Assn. filed petitions seeking antidumping and countervailing duties on imports of durum and hard red spring wheat from Canada. In 2003, the U.S. Int'l Trade Commission (ITC) applied a 14.15% tariff on imports to the U.S. of Canadian hard red spring wheat. "The panel concludes that the ITC's finding that increased volumes of subject imports depressed prices is not supported by evidence," said the NAFTA panel in a 91-page document. "We are confident that the ITC will now do the right thing and move quickly to lift the tariff so that we can resume marketing our high quality wheat to our American customers," said Ken Ritter, Chair of the Canadian Wheat Board.

***Chip Talk ...... as a "live test" of e-Passports that contain computer chips with biographic and biometric information has begun at terminals 2, 4 and 7 of Los Angeles Int'l Airport (LAX) and at Sydney Airport in Australia. The "live test" will run from June 15 to Sept. 15, 2005. Volunteers participating in the test include airline crew and officials of United Airlines, Air New Zealand and Qantas Airlines. These volunteers will present their new e-Passports when arriving in the U.S. through LAX, or upon arrival in Australia through Sydney Airport. The e-Passports contain the holders' biographic information and a biometric identifier, in this case a digital photograph, embedded in a contactless chip set in the passport. Biometrics included in a chip provide a further means by which the identity of visitors may be verified, thus preventing entry by imposters and the use of fraudulent documents.  Biometrics data provide border officials a critical tool in making admissibility decisions, thus enhancing border security. More than 600 criminals or immigration violators have been denied admission as a result of the use of biometrics to the U.S.

***Truckers Set For Fast Pass ....... as U.S. Customs & Border Protection said several smaller ports that have been set up to accept electronic manifests from truckers. The ports are all in the vicinity of Blaine, Wash., where CBP conducted its 1st pilot tests of the truck manifest system. Truckers who set up a special account & are certified to use the system will be able to automatically transmit manifest data and obtain release of their cargo, driver and equipment at the following border checkpoints: Sumas, Point Roberts, Oroville, Boundary, Danville, Ferry, Frontier, Laurier Metaline Falls; Nighthawk and Lynden.  The electronic truck manifest is being developed as a component of the Automated Commercial Environment, CBP's new computer system for dealing with imports & exports. The system is designed to eliminate paperless processing at the border and bring trucks up to speed with other modes of transport that have automated manifest systems. U.S. Customs & Border Protection said it is ready to gradually rollout its electronic truck manifest to other parts of the nation after successfully testing the system at a cluster of entry ports in the State of Washington.

***About Time For A Print ........as the U.S. Transportation Security Administration on May 31 began requiring commercial truck drivers who haul hazardous materials to undergo a fingerprint background check in order to renew or transfer their driver license. Workers seeking a new commercial drivers license with a hazmat endorsement have had to undergo criminal history background checks since Jan. as part of a federal security plan to reduce the threat of potential terrorists using truck transport with dangerous loads in an attack.

***Trucking To China Without A Bridge .......... as Yellow Roadway Corp. said it has formed a joint venture with a Chinese investment house to provide freight transportation services to importers & exporters operating in China. Overland Park, Kan.-based Yellow Roadway said it has bought a 50% stake in JHJ Int'l Transportation Co., the freight forwarding subsidiary of Jin Jiang Int'l Industrial Investment Co. Ltd. JHJ is the 2nd-largest air freight forwarder in China. The move highlights Yellow Roadway's desire to expand from a domestic trucking organization to a provider of integrated Int'l logistics services. Yellow Roadway would become the first U.S.-based trucking company to operate in China. Yellow Roadway sought to build a trucking network in the fragmented Chinese market, but would probably start slowly by focusing on the Shanghai region. Earlier this year, Yellow Roadway's logistics subsidiary Meridian IQ acquired Shanghai-based GPS Logistics Group.

***Mexican Test ..... as less-than-truckload carrier Con-Way Transportation Services said its Mexican operating company, Con-Way Mexico Express, will open 6 logistics centers July 4 to serve major markets in Mexico -- in facilities located in Nuevo Laredo, Monterrey, San Luis Potosi, Guadalajara, Queretaro & Mexico City. U.S. motor carriers are not yet allowed to operate in Mexico, so they must contract Mexican trucking companies to move cargo to and from the U.S. border & between domestic destinations.

***A.N. Deringer Inc........ as the U.S. provider of logistics and supply chain services has acquired the freight forwarding and customs brokerage operations in Seattle, Wash. of World Project Services International, Inc. Terms of the purchase were not announced.

***Icelandic Takeover...... as Icelandic Avion Group, which has concentrated on passenger & cargo aircraft leasing, has completed the takeover of Reykjavik-based shipping line Eimskip, for a total selling price of US$355M. Avion was founded in Jan. through the merger of Air Atlanta Icelandic & Islandsflug. Through a group of subsidiaries, the group leases more than 60 passenger and cargo aircraft long-term and short-term and also provides other aviation-related services at seven overhaul workshops in the UK and a maintenance center in Ireland. Following the takeover of Eimskip, the Avion Group said it will be the largest transportation company in Iceland with turnover of US$1.7Bn, 4,400 employees & 80 operating centers around the world. 

***Deutsche Post Next Takeover ...... as Germany's Federal Cartel Office has issued its unconditional approval of DHL's takeover (a big surprise) of the distribution logistics for the large & part-load operations of KarstadtQuelle AG, planned in Jan. & scheduled to take effect July 1. DHL's previously acquired logistics operation of the Karstadt department stores, combined with the large & part-load operations for 2 mail-order groups, Quelle and Neckermann -- to be handled now by DHL Solutions --represent a combined sales volume of US$605M. Under the 10-year contract approved by the Cartel Office, this amounts to a total volume of US$6.05Bn. Proceeds from the sale will go to KarstadtQuelle AG when the logistics operations are transferred. DHL is a fully owned subsidiary of Deutsche Post AG. 

***Bad Bag? ....... as the 27 year-old Australian woman, Schapelle Corby, has been sentenced to 20 years for claiming her luggage, which she claims was used as a "drug mule" without her knowledge somewhere between Australia and Bali.  Drug smuggling in Bali is punishable by death. Robin Tampoe, her attorney, has stated that this is the case of an innocent woman with no prior indicators who simply was unlucky to be picking up her own luggage from the carousel. Her luggage was tampered with when she was sitting on her plane, stated her attorneys. Ninety percent of Australians believe her to be innocent. Full story.


  2. The Cargo Letter Financial Page _________


**FedEx Corp. UP as net income for its 4th quarter ended May 31 rose to US$448M or US$1.46 a share, from US$412M or US$1.32 a year ago.

**Intercontainer-Interfrigo. DOWN with a loss of US$11M for 2004.

**Scandinavian Airlines Systems (SAS) cargo division. DOWN as net income for 2004 was down 68% US$1.5M. compared to SEK 34 million in 2003. 

**Senator Lines. UP as operating income rose 76% in 2004 to euros US$76M. The German shipping line carried 640,854 TEUs in 2004, up 3% on the 621,717 TEUs handled in 2003. 

**United Airlines. DOWN with an operating loss of US$47M in April, marking a US$28M year-over-year improvement.  


***UPS looks UP ......as it has reaffirmed its financial guidance for the 2nd quarter of 2005, saying it expected diluted earnings per share in a range of US$0.82 to US$0.87 compared to the US$0.72 reported during the prior-year period.  

***FedEx Pushed Down ..... as high fuel prices & the cost of opening a new around-the-world air route that won't pay off for a couple of years held FedEx earnings below Wall Street expectations --even after posting a 4th quarter profit -- and the company's stock took an immediate hit, down 8.3% on June 23.  

***Less Is More At EGL ....... as Houston-based forwarder EGL said it will cut about 350 jobs in the U.S. & Europe to improve the results of its activities in those locations. The company expects second quarter gross revenue to be 17% to20% above the 2nd quarter of last year. In 2004, the company's revenues exceeded US$2.7Bn.     

***New IPO At HKG ........ as China Cosco Holdings Company commenced its public offer to Hong Kong retail investors last week. Dealing in the "H" shares of China Cosco on the Main Board of The Stock Exchange of Hong Kong Limited was expected to commence on June 30.                 



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

  3. Freight Forwarder World Air Briefs ____

***The Giant Is Delayed -- With An Eating Disorder ...... as the Airbus A380 may have overcome its weight problem, but the full cost of beating the bulge looked set to mount Wednesday as the European plane maker confirmed delivery delays of up to six months. "We've now spoken to A380 customers and told them how they will be affected," Airbus spokesman David Velupillai said. "The delays range from 2 to 6 months depending on the customer." Airbus, which is betting on the A380 to maintain the lead it took over U.S. rival Boeing Co. in 2003, had warned launch customer Singapore Airlines Ltd. in April that it would receive its planes late next year instead of in March. Singapore CEO Chew Choon Seng has since said he plans to demand compensation. Like most new airliners in development, the A380 struggled to keep its weight down & meet ambitious specifications promised to customers. Final assembly line director Jean-Claude Schoepf and his engineers sent parts back to the drawing board to be pared down, & even the paint was redesigned. Confounding earlier reports that the plane would be 5% overweight, the A380 finally weighed in empty at 309 tons - just 1% over its original working target. But the design challenge, as well as a decision to produce more freighter versions, contributed to a cost overrun estimated by Airbus CEO Noel Forgeard at US$1.77Bn.

***U.S. Cargo Up ..... as Int'l air freight & express shipments carried by U.S. airlines increased 4.1% to about 1.06 billion revenue ton-miles in April, from 988 million in April 2004, according to the latest statistics of the U.S. Air Transport Assn. (ATA). Freight & express activity on Pacific routes increased 2.4% to 515 million revenue ton-miles in April, while on Latin routes freight & express volumes fell 6% to 96 million ton-miles. Traffic on Atlantic routes increased 9.7% to 416 million ton-miles in April.

***BAX HKG ....... as U.S. supply chain management provider, BAX Global has boosted its warehouse capacity in Hong Kong by nearly one million square feet, with the opening of a new logistics center. The 7 story, 200,000 square foot Tuen Mun Logistics Centre has been built to accommodate the firm's customers, particularly in the apparel, fashion, and high-tech sectors, a company statement said  BAX also operates logistics centers at Tsing Yi, Yuen Long, Yau Tong, and at Chek Lap Kok Int'l airport, in addition to a logistics facility in the Futian Free Trade Zone in Shenzhen.

***But Is BAX For Sale? ..... as Brink's Co. is placing its BAX Global air cargo transportation & logistics unit up for sale, the Wall Street Journal reported. BAX Global moves heavy air cargo around the world, through its 500 offices in 133 countries, using its 18-plane air fleet as well as trucks and ships under contract, the Journal said. The company's headquarters is in Irvine, Calif., and its main U.S. air hub is in Toledo, Ohio. BAX could fetch roughly US$500M, the paper reported. Selling the transport unit would allow Brink's to focus more heavily on its home-security division, the nation's 2nd largest, the Journal said.

***Brown Discussions Cool Off ....... as the National Mediation Board has ordered a recess in labor negotiations between UPS & its pilot's union. Under federal law, workers cannot strike or conduct a work stoppage during the recess period. UPS said it remains committed to negotiations with the Independent Pilots Assn. After 32 months in negotiations the Independent Pilots Asson. had called on UPS to make its last, best & final offer on a new pilot contract. The vote on UPS current contract offer & final strike authorization was expected in mid-August.

***New US Airways Looking At Take Off ........ as the U.S. Justice Dept. has completed its review of the proposed merger between America West Holdings Corp. and US Airways Group Inc. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired last week without a formal request from the department for additional information. On May 19, America West & US Airways announced an agreement to merge & operate under the US Airways brand. 

***Last Threshold Crossed For A United Rebirth ....... as bankrupt United Airlines said it has resolved all of its outstanding pension issues following the agreement from 2 unions to its restructuring plans. The Int'l Association of Machinists & Aerospace Workers (IAM) said it had reached an agreement in principle with United on all outstanding issues, including a follow-on pension plan, for new collective bargaining agreements covering nearly 20,000 IAM members at United. On the same day, the Aircraft Mechanics Fraternal Assn. reported that its members working at United Airlines ratified the tentative contract agreement through electronic balloting, with 59% in favor and 41% against.

***Northwest Remains Quite Ill ..... as Fitch Ratings has downgraded the senior unsecured debt rating of Northwest Airlines to 'CCC+' from 'B'. The rating action affects approximately US$1.7Bn of outstanding debt obligations. The Rating Outlook for Northwest remains Negative.

***Air Canada Wants You To Love Used Planes ......... as it is backing out of a deal to buy 18 Boeing 777s and 14 787s after its pilots union rejected a series of cost-cutting measures. Air Canada, which emerged from bankruptcy last fall, ordered the planes in April & the union's leadership endorsed the purchase of the new planes earlier this month. Among the planes Air Canada intended to purchase were 777 freighter models. There is no penalty for canceling the order, Air Canada said. Air Canada said it will turn to the used aircraft market for widebody aircraft. May we suggest the lot at Palmdale, Calif. 

***New IATA Chair ..... as the Int'l Air Transport Assn. (IATA) has appointed Robert Milton, chairman of Air Canada, as chairman of its board of governors for 2005-2006, replacing Jean-Cyril Spinetta, chairman & CEO of Air France.   

***Great! -- Now Our Luggage Will Only Take Days To Arrive ......... as Richard A. Altomare, CEO of Universal Express, Inc. & Chairman of The Coalition for Luggage Security, says that a federal plan to install a missile defense system on commercial airplanes is well-intentioned but misdirected & that the U.S. Congress should initially be focused on testing new solutions to the greater threat of luggage bombs on commercial planes.  According to Altomare, "Luggage security on airlines (and buses & trains) is a time bomb that's just waiting to go off. The White House, Congress & the Dept. of Homeland Security need to start thinking of new, more creative security solutions to the luggage bomb threat. A federally-funded pilot study to assess the security effectiveness of shipping passenger luggage separately from passenger flights is one such idea whose time has come." Altomare is the author of a new Luggage Security policy paper entitled "More Safety, Less Hassle for American Travelers: A Private Sector Solution for the Airline Industry". The Coalition is a voluntary partnership of transportation and logistics businessleaders who are advocating new solutions to enhance passenger and travel luggage security. "The Coalition's luggage security idea could save the federal government US$1.4Bn in luggage screening costs and up to US$6Bn in labor costs, while generating billions of dollars in new revenues for the private freight industry overall and potentially a few hundred thousand new JOBS to our economy," said Mr. Altomare. Does it matter that Universal Express is in the luggage moving business?

***Dragon Ho! ....... as Macau casino tycoon, Stanley Ho, is reported to be buying an 80% stake in budget air carrier, Golden Dragon Airlines, which is based in the former Portuguese enclave, for US$20M, the China Daily reported. The newspaper article said Mr. Ho was making the investment through his helicopter unit, East Asia Airlines. Golden Dragon is expected to start services in the 2nd half of 2006 & has already obtained rights to fly to 10 destinations - 8 in China, another to Hanoi in Vietnam & the last 1 to Vientiane in Laos.

***Guanzhou Portal ...... as construction has started for a new airport in Jiangxi province, which is expected to be ready for operation by the end of 2006. The new airport in Guanzhou will be the 2nd biggest airport in the southeastern province after Nanchang Changbei Airport. The new airport with an investment of US$50.75M is designed to handle a freight volume of 108 tons of cargo & mail and 200,000 passengers yearly by 2015.

***Another China 1st ...... as China Southern Airlines is negotiating with the Government of Peru to operate a direct service between the two nations, Xinhua News Agency reported. The agency report said talks on the issue were continuing following the recent visit to Guangdong by the Peruvian President Alejandro Toledo.

***Volumes .......... American Airlines experienced a 6.2% year-on-year decrease in cargo traffic in May, when it carried 186,661 system cargo ton-miles. >>> British Airways carried 401 million cargo ton-kilometers in May, down 7.5% from the 434 million cargo ton-kilometers reported in May 2004. >>> Continental Airlines reported an 8.2% decrease in cargo revenue ton-miles for May to 76,152 cargo revenue ton-miles from 82,933 in May 2004. >>> Icelandair Cargo transported 7% less cargo tons in May, over same month last year. >>> Dragonair handled 20.4% more freight year-on-year in May; it carried 29,346 tons of cargo compared to 24,373 tons in the same month last year -- on a total of 15,675 flights during May, 14.9% more than in May 2004. >>> Frankfurt Airport (FRA) handled 152,062 metric tons of airfreight in May - a new record, up 3.2%. >>> United Airlines reported a 3% year-on-year increase in system cargo ton-miles for May at 170,444 system cargo ton-miles as freight increased 4.8% to 142,140 cargo ton-miles, while mail was down 5.2% to 28,304 cargo ton-miles.

***Wonder Bra ........ as a Boston woman who apparently stuffed US$46,950 in cash in her bra before trying to board a plane to Texas for plastic surgery has sued a federal agency, demanding the return of her money. The money was seized from Ileana Valdez, 26, after a security check at a metal detector at Logan Int'l Airport on Feb. 3. Valdez told authorities she was heading to Texas for plastic surgery on her buttocks & breasts. "I don't know why she was carrying it (the cash) in her bra," said Boston lawyer Tony Blaize, who filed the suit in U.S. District Court in Boston on behalf of Valdez. In her suit, Valdez said a male Drug Enforcement Administration agent told her she had a nice body & didn't need surgery &emdash; then seized the cash, claiming it was drug money. Valdez, a single mother, said in her suit that she has no criminal record and earned the money by selling her Dorchester business and 2 parcels of property in Boston's Jamaica Plain section. A spokesman for the DEA in Boston, said he could not comment on the lawsuit, but said federal asset forfeiture laws allow agents to seize suspected drug profits. This is not a commercial for Traveler's Checks.                  



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

  4. FF World Ocean Briefs ________________

***Shipper Peak Season Warning ...... as planning is essential because double-digit container growth continues & infrastructure capacity remains limited in the run up to the peak importing season, the Transpacific Stabilization Agreement (TSA) warned transpacific shippers last week. The TSA said its carrier members have all finalized their 2005-2006 service contract negotiations with customers shipping goods from Asia to the U.S. The TSA warned that while rate increases achieved in those contracts, plus a US$400-per-40-foot container peak season surcharge, would help meet service & schedule commitments during the June-Nov. peak period, additional cost pressures continue.

***But More Reason For Optimistism ........ as the upcoming transpacific peak season will not be affected by the same levels of port congestion that blighted U.S. West Coast ports last summer, according to speakers at the Port of Long Beach's "Pulse of the Ports Peak Season Forecast Conference". Last year cargo & vessels were often delayed for a week or more at U.S. West Coast ports because of labor shortages at rail yards, port shipping terminals & trucking companies. Experts also underestimated trade growth, which reached 12% after initial forecasts of less than 5%. For this year, cargo gains of between 10% to 15% have been forecast. In preparation for this year's increase, speakers at the conference said that extra workers & equipment have been added, and that cargo has been moving smoothly throughout the year so far. "All of the signs during the 1st 6 months have been extremely favorable," said John Joseph of Limited Brand. "So I think there is reason to be optimistic." Some speakers were concerned about a possible shortage of truck drivers. "If they can't get more turns (cargo shipments), and make more money, we're not going to get more drivers," said Bob Curry Jr. of California Multimodal Inc.

***But Vancouver On Strike -- At A Bad Time ....... as more than 1,000 owner-operator drivers who handle containers at the Port of Vancouver, which is the busiest port in Canada, launched a strike on June 27 in a bid for higher pay & extra money to cover increased fuel costs. The industrial action could lead to losses totalling US$24.33M a week.

***PSI Initiative Makes Progress ......... as the U.S. & the Republic of Croatia have signed a reciprocal Proliferation Security Initiative (PSI) Shipboarding Agreement, allowing mutual inspections on vessels to deter shipment of weapons of mass destruction. "If a U.S.-flag or Croatian-flagged ship is suspected of carrying proliferation-related cargo, either party to this agreement can request the other to confirm the nationality of the ship in question and, if needed, to authorize the boarding, search and possible detention of the vessel & its cargo," the U.S. State Dept. said in a statement. Croatia is the 4th state, after Liberia, Panama, and the Marshall Islands, to sign a PSI initiative with the U.S. as part of an effort to implement higher security standards on vessels in flag registries.

***Safe Cargo Practices Makes Progress ...... as the New York-based National Cargo Bureau (NCB), a non-profit surveying company, has issued a "white paper" urging the implementation of the Int'l Maritime Organization (IMO) Code of Safe Practice for Cargo Stowage and Securing, known as the CSS Code. The CSS Code contains a series of 13 annexes providing recommendations concerning the stowage & securing of non-standardized cargoes, for which a vessel does not have an approved fixed or installed securing system on board. "The Code represents something of a departure from tradition, effectively utilizing an engineering approach requiring a balance between securing forces and potential upsetting forces," NCB said in its paper. Annex 13 of the Code provides simplified methods of calculating that balance. "A knowledge of basic physics & mathematics is still required, but calculus is avoided. The methodology is user friendly and well within the capabilities of the average deck officer," NCB said. For more information about implementing the CSS Code, call NCB at (212) 785 -8300. 

***Mass Disruption Dials Wrong Numbers .... as the post-Sept. 11 security blanket designed to keep nuclear material out of U.S. ports still has plenty of holes, including scores of false alarms from radiation detectors, scientists told Congress. The Port Authority of New York and New Jersey security manager said the facility receives "about 150 alarms a day" from the 22 radiation portal monitors at the site. That's more than 10 times the number of false alarms originally expected. Federal agents at these facilities use radiation detectors on about 45% of containers, and they plan to raise that to 85% at the end of the year after receiving additional detectors. Since Sept. 11, the government has spent hundreds of millions of dollars at U.S. ports & overseas posts in an effort to keep out a so-called "dirty bomb."' Characterized as a "weapon of mass disruption," a dirty bomb would spread radioactive material over an area but not likely cause the high death toll of a nuclear weapon.

***Eagle Eyes...... as on June 2, 2005, U.S. Customs & Border Protection (CBP) Commissioner Robert Bonner & Maryland Governor Robert Ehrlich Jr. unveiled a highly sophisticated cargo inspection system at the Baltimore seaport. The system, called the Eagle, is designed for inspecting cargo containers and trucks at seaports and other ports of entry. CBP will use the Eagle primarily in its efforts to thwart terrorists from smuggling weapons of mass destruction into the U.S. The machine will also scan for illegal narcotics & other contraband. The Eagle, a self-propelled imaging system, can rapidly inspect trucks & cargo containers, even when loaded with dense cargo. The Eagle's x-ray source provides high-energy operation resulting in greater cargo penetration and faster inspection. The system is able to scan a sea container in approximately one minute. An image of the scan is immediately available to CBP officers to evaluate and assess any potential threat. CBP has deployed about 165 mobile, truck-mounted gamma-ray systems since the Sept. 11, 2001 attacks, as well as some semi-fixed systems.

***The Night Has a Thousand Longshore Eyes?  ........ as in a statement issued May 26, James Spinosa, President of the Int'l Longshore & Warehouse Union issued the folloing statement: "Probably every rank-and-file longshore worker in the Int'l Longshore & Warehouse Union has a personal story to confirm the Congressional members' concerns that our waterfront is less secure now than before 9/11. Broken container seals, lack of inspections, inadequate enforcement of the Code of Federal Regulations governing port security & stowaways smuggled in containers are all old news to our members. For nearly 50 years, the union has trained its members to perform the kind of physical, visual inspections of cargo containers and scrutiny of manifests against actual container contents so crucial to keeping American ports secure. Unfortunately, those who own the shipping lines and run the ports have become overly dependent upon remote technologies that are neither as thorough nor perceptive as the human eye. It's time for our nation's ports to go back to using America's first line of defense: the longshore workers who understand how the waterfront works and are the 1st to see when something is amiss."

***Grand Alliance Determined To Continue ...... as its members Hapag-Lloyd, Malaysia Int'l Shipping Corp. (MISC), NYK Line, & OOCL have vowed to continue with the alliance, despite the impending takeover & possible alliance withdrawal of P&O Nedlloyd by A.P. Moller-Maersk. Meanwhile, A.P. Moller-Maersk has bought a 3rd major block of shares in its takeover target P&O Nedlloyd, moving quickly to increase its stake in the company ahead of the acceptance date of its bid.

***AADA Goes Up ...... as member lines of the Asia Australia Discussion Agreement (AADA) have announced they will impose rate hikes next mont. From July 1, a rate increase will be levied on all export shipments from China, Hong Kong and Taiwan bound for ports in Australia of US$500 per TEU and $1,000 per FEU for both dry and refrigerated cargo. The 15 ocean carriers participating in the voluntary discussion forum are: ANL Container Line, CSCL, Cosco, Fesco, Hamburg Sud, Hanjin Shipping, Hyundai Merchant Marine, "K" Line, Maersk Sealand, MSC, MOL Line, NYK Line, OOCL, P & O Swire Containers, & Gold Star Line (ZIM Line). 

***FEFC Bunker Up ...... as member shipping lines participating in the Far East Freight Conference (FEFC) that serves the trade from Europe & the Mediterranean to Hong Kong, Macau and South China are raising their Bunker Adjustment Factor (BAF) next month. From July 1 to July 31 the BAF level charged will be US$199 per TEU.

***Welcome To Los Angeles, Now Get Out --Fast! ...... as beginning July 1, shippers will have 4 days instead of 5 to move their shipping containers out of terminals at the Port of Long Beach before late fees begin to accrue. Free time calculations will not begin for cargo held by U.S. Customs & Border Protection for security-related inspections until the cargo is released for pickup, according to a news release issued by the port. Demurrage, or storage fees, at Los Angeles area terminals range from US$60 to US$75 or more.  In most of our lives, the "Free Time" was 7 days, but do you remember 14?

***Int'l Standards Organization Counts To 45 ...... as it is close to adopting a new 45-foot container standard. Standard 20-foot & 40-foot containers have long been recognized by the ISO, but 45-foot-long containers have not had their own international standard specifications despite their increasing use in the maritime industry. The ISO technical committee on freight containers, called "TC 104," has made progress on the 45-foot container standard at meetings held in London May 12-13.  "My expectation is that each of these will be approved & that the amendments will be published later this year," said an executive with Horizon Lines.

***Brazil Stands Against Terror ..... as it has enrolled the Port of Santos, the largest port in South America, in the U.S. Container Security Initiative, and will selectively inspect cargo bound for the United States, U.S. Customs and Border Protection said. Now CSI is operational in 36 ports around the world. 

***A Faster Columbia River ........ as after 18 years of planning, the Columbia River Channel Improvement Project has finally been given the go-ahead. "This is fantastic news for the thousand companies in our region that depend on the Columbia River to move their products," said the Columbia River Channel Coalition. "The judge's decision will help ensure the Columbia River continues to serve the region's US$15Bn maritime industry," said the Port of Portland. When completed, the additional 3 feet of depth will allow draft-restricted bulk ships to carry an additional 6,000 tons of grain & container ships to carry hundreds of additional containers, making a Columbia River port call more cost-effective for ocean carriers and Northwest businesses & farmers. 

***Port To Door ........ as U.S. truckload carrier Schneider National has signed a definitive agreement to acquire American Port Services, a provider of port transloading, warehousing and distribution services. Upon the deal's completion, Schneider said it will have a significant presence in major U.S. ports and become the 1st national full truckload provider to offer transloading services. Transloading is transferring freight at an intermodal transfer point from one bulk container to others in order to move freight on more efficiently.

***APL Continues Strong ...... as sustained volume growth continued at APL during the 4 week period ended May 6, as the Singapore-based carrier reported that it increased its container traffic 14% to 152,600 40-foot equivalent units (FEUs) when compared to the same period last year. With no sign of a slowdown, the carrier reported that its strong growth figures for April/May brought its cumulative container traffic to 651,800 FEUs for the year to date, showing an overall increase of 13% in volume when compared to a year ago. "This reflects continued strong demand growth," said Neptune Orient Lines, parent company of APL.

***CP Ships Is CP Ships ..... as it will adopt the "CP" prefix for its vessel names and repaint the funnels and hulls of its owned and long-term chartered ships, under the company's new policy to move to a single brand name. For the 1st time in more than 20 years, ship names will now be prefixed with "CP," replacing existing brand names. For example, "Canmar Venture" will become "CP Venture."  Ship funnels will carry the CP Ships red and white checkered flag against a field of dark blue. The flag will appear as it did in a CP Ships funnel design introduced in 1946. The new color for hulls will be the same red as in the flag. The group said it will stop using its seven brands: ANZDL, Canada Maritime, Cast, Contship Containerlines, Italia Line, Lykes Lines & TMM Lines.

***Ditch Flow Up ...... as the number of new Panamax-sized container vessels moving through the Panama Canal grew 6.4% in the canal's Oct.-May reporting period, including a record 117 transits by larger vessels in May. The Panama Canal authority says the latest transit reports show the push toward vessels of 900 feet or longer is accelerating.

***China Moves To The Front -- Again ....... as construction has begun on what China says will eventually be the world's biggest shipyard, part of the country's plan for taking a dominant role in the industry. China's biggest shipbuilding company began building the 5-mile-long facility late last week on an island in the Yangtze river, north of Shanghai. The US$3.6Bn new shipyard is meant to quadruple Shanghai's current shipbuilding capacity to 12 million tons by 2015. China, the world's 3rd largest shipbuilder, has been eager to cash in on global boom in shipping that has largely been a result of its own surging exports & demand for raw materials. China now holds about 10% of the world shipbuilding market.

***Houston Vessel Pilots Want 2 Hulls ....... as effective July 1, any wide-body vessel entering the Houston Ship Channel with a beam of 120 feet or greater will be required to be double-hulled when sailing in darkness on the waterway & while in ballast.

***Los Angeles Board of Harbor Commissioners Open Wallet ...... as they have adopted a US$693.5M 2005/2006 fiscal year budget for the Port of Los Angeles. The budget focuses on expenditures for safety & security, environmental initiatives, waterfront revitalisation, & furthering operational efficiencies at the largest U.S. seaport. The Port estimates container volume for the 2005/2006 fiscal year to hold at 7.3 million TEU, the current U.S. national record held by the Port for fiscal year 2004/2005.

***Throughput >>> Container volume at the Port of Auckland, New Zealand, rose 5% in May, compared to the same month in 2004. For the 12-month period ended May 31, container volume at the port was down 3% to 642,529 TEUs against the comparable previous year. >>> Container traffic at the Port of Hong Kong marginally increased 1.8% to 1.86 million TEUs in May. >>> The Georgia Ports Authority (GPA) said April was a record month for container tonnage, with 1.22 million container tons moved across its docks, an 11.7% increase over the same month in 2004, as container throughput in units at its ports in April increased 12.8% to 153,897 TEUs. >>> Jurong Port in Singapore said its container throughput for the first 5 months of the year jumped 59% to 368,000 TEUs from 232,000 TEUs for the same period in 2004. >>> Port of Long Beach container traffic volumes jumped 20.7% in May, as the total number of loaded & empty boxes that crossed the port's docks increased to 564,886 TEUs from 468,029 TEUs in May 2004.

***FMC OTI Licenses Revoked ....... for failure to maintain valid bonds.  The firms are All World Services, Miami; Formosa Int'l Freight Forwarder, Valley Stream, N.Y.; J&N Transportation, Buena Park, Calif.; & North American Van Lines, Fort Wayne, Ind.

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

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

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

1870 - USS Mohican burns Mexican pirate ship Forward.

1884 - Navy relief expedition under Cmdr. Winfield S. Schley rescues Lt. A.W. Greely, USA, and six others from Ellesmere Island, where they were marooned for three years on Arctic island.

1913 - First fatal accident in naval aviation, Ensign W. D. Billingsley killed at Annapolis, Md.

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

1941 - First escort carrier, USS Long Island (CVE 1), commissioned.

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

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

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

U.S. Naval History Center

***CSS Hunley Was Civil War High Tech ........ as conservators of the Civil War submarine H. L. Hunley, working with the Naval Historical Center (NHC), discovered previously unknown stealth feature called a deadlight while removing the concretion on one of the 10 glass ports, June 15. The deadlight, which served like skylights that run along the top of the submarine, served as both a stealth and safety feature on Hunley, by stopping light from getting out and water from getting into the submarine. The skylight is covered by a hinged iron plate, or deadlight. A pin could be removed from one hinge, allowing the iron plate to drop down and let light in to the otherwise dark vessel. On the evening of Feb. 17, 1864, the Confederate vessel CSS H.L. Hunley became the world's 1st successful combat submarine by sinking USS Housatonic. After signaling to shore that the mission had been accomplished, the submarine & her crew of 8 vanished. Read the whole story.  

***Baby Longshoremen Scam ...... as the State of Massachusetts said it is investigating allegations that longshoremen's unions in Boston have placed children as young as 2 1/2 years old on the payroll in a scheme to give them higher wages as adult dockworkers. Attorney General Thomas F. Reilly said that his office & state police were alerted to the alleged scam by the Mass. Port Authority, which oversees the port of Boston. Because seniority is determined by when a union member first receives a union card, regardless of the number of hours worked, union members who got their children enrolled are believed to have ensured them higher pay. A person beginning work at age 21 typically makes about $16 an hour, Reilly said. A 21-year-old whose father 1st put their name on the payroll at age 2 would start at about US$28 an hour. "This has been going on for generations. It's part of the culture,'' the state said. "It keeps the jobs in the family & rips off the public and over time puts the state at a competitive disadvantage," said an Attorney General representative.                                        


   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. You will be amazed.

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

See our new feature for June 2005: "White Planes Can't Jump" ...... a just updated feature for you from our past you will enjoy.

See our newest photo feature "Singles Only" - Transportation Disasters Told In A Single Photo!

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.............. from a more simple time.

American Association of Port Authorities Coloring Book.........fun download for kids & FREE!

Are You A Master of Logistics? ........ take the survey.

C-TPAT Program

Event Management Software ........ shippers track their cargo.

Mad Cow Disease ....... the whole story

New Applications For Importers/Exporters

PierPASS Program ........ the new plan to ease port congestion. Read More

National Transportation Safety Board Findings: Staten Island Ferry Crash, Oct. 2003 ......... failures of the NY Dept. of Transportation & failures of the Capt.

Report On Expected Impact of Ending European Shipping Conferences Immunity

Shipping Intelligence Network

Special Government IT Report .........both federal & local--seem to have an especially hard time with IT.

UPS's Corporate Sustainability Report ....... annual report reinforces ongoing commitment to balancing economic, social & environmental objectives.

U.S.-Cuba Trade Association

U.S. Navy Online Stress Management Program ........ try it for yourself.

U.S. Navy Ship To Ship Cargo System

The Fortune 100 ..... can you name them?

Web Globalization Report Card 2005



AfterOfficeHours ........ If you currently publish a directory of services or correspondents the old way, this new service will certainly save you money & may well result in greater circulation.

CargoTrax 24x7 Global Intermodal Real Time Live Tracking Solution

ElectraDoc ......... offers Regular Mail, Certified, Registered, Priority, & Express Mail/document service to be delivered in seconds.

Flight Tracker Personal Edition

Laytime & Demurrage, 5th Edition

OAG MAX Online

Outsourcing & Offshoring Industry Almanac



Transport Events

World Trade Organization Events

American Assn. of Port Authorities Port Security & Safety Seminar ......... July 27-29, Sheraton Meadowlands Hotel & Conference Center, East Rutherford, N.J., hosted by the Port Authority of New York & New Jersey.

Intermodal USA 2005 ........ July 26-27, J.W. Marriott, Miami.

OffPeak Program from PierPASS at the Ports of Los Angeles and Long Beach .......... July 7, 2005,a free Journal of Commerce program.

TLS CEE Congress ..... Sept. 29-30 2005, Veletrzni Palace, Prague.

Track & Trace Summit ....... Oct. 17-19 at the Fairmont Turnberry Isle Resort & Club, Miami, FL.

Transport & Logistics & Int'l Trade .... Dec. 8-9. Tallinn, Estonia


FOR FUN>>>>>>>>>

American Assn. of Port Authorities Educational Tool Kit

Blowing Things Up!

Int'l Space Station ....... since 1961, only 400 people have ventured into space.

Int'l Submarine Escape & Rescue Liaison Office

Lake Champlain Maritime Museum......... voyage of scooner Lois McClure now in progress to New York.

Meet The KC-330 Advanced Tanker

Pilot Briefing!

NASA -- New Digital TV

Transformational Space Corp.



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

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

Spector Vs. Norwegian Cruise Line Ltd.

U.S. Supreme Court

June 6, 2005 WL1321165, 125 S.Ct. 2169

U.S. Maritime Law: Foreign-Flagged Cruise Ships Operating in U.S. Waters Are Subject to Americans With Disabilities Act: The U.S. high court reversed the U.S. 5th Circuit Court of Appeals, which had held the ADA did not apply, due to a presumption that absent a clear indication of congressional intent, general statutes do not apply to foreign-flag ships. The Supreme Court held the "clear statement rule could limit Title III's [of the ADA] application to foreign-flag cruise ships in some instances, when it requires removal of physical barriers, it would appear the rule is inapplicable to many other duties Title III might impose." The ships which were the subject of the suit were flagged in the Bahamas.The cruises in question departed from Houston. Implications for logistics is clear. 


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

Libby Thompson (Countryman & McDaniel)


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