Law Offices of Countryman & McDaniel


Air & Ocean Logistics - Customs Broker News

30 April 2008


Good Thursday Evening 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 what happened in our industry during April 2008!

Sadly, this edition says much about alleged fuel surcharge price fixing in both air & ocean modes while our industry is buckling from energy costs.

Also, we begin this month with commentary from noted vessel safety expert and Countryman & McDaniel lawyer Geoffrey Gill, Esq. on the year's greatest ocean container vessel loss -- M/V Napoli -- a loss we covered day by day over the year with an amazing CargoLaw. photo feature.

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.

The Cargo Letter Archives of Past Issues
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 _______________

***The Cargo Letter ...... as we are humbled that our wesite has topped 18,677,102 hits for the month. Thanks for visiting our photo features! We are also proud that so many of our industry friends have come to us for C-TPAT certification. New cargo claims training & security classes in the U.S. and in China & South East Asia will be scheduled soon. McD

***U.S. Trade Deficit Jumps ....... as it unexpectedly rose for a 2nd straight month in Feb. as a big jump in imports of foreign-made cars offset the 1st decline in oil imports in a year, the Associated Press reported. The U.S. Commerce Dept. said April 10 that the trade deficit rose by 5.7% in Feb. to US$62.3Bn, the highest level since November. Analysts had forecast that the deficit would decline, believing that a severe economic slowdown in the United States would cut demand for imports, AP said However, imports of goods and services shot up 3.1% to an all-time high of US$213.7Bn, reflecting a big surge in imports of foreign cars. Exports also set a record, rising by 2% to US$151.4Bn, reflecting strong gains in the sale of American-made heavy machinery, computers and farm goods, AP said.

***NAFTA Volume Jumps ...... as surface trade among the United States, Canada & Mexico jumped 7.4% in January from a year earlier, the Dept. of Transportation said this month. Trade among the North American Free Trade Agreement partners reached US$65.2Bn, DOT's Bureau of Trade Statistics said in its monthly report. Truck imports to the U.S. gained 0.8% year-over-year to US$22.5Bn, while exports rose 7.9%, to US$21.9Bn. Rail imports fell 3.4% to US$6.6Bn, while exports jumped 26.1% to US$3.8Bn, DOT said. Pipeline imports rose 39.7% US$6Bn, while exports soared 41.8% to US$418M. Surface transportation consists largely of freight movements by truck, rail and pipeline. About 90% of U.S. trade among NAFTA partners moves by land.

***Opening Eastern Trade ....... as Japan and the Assn. of Southeast Asian Nations (ASEAN) completed the signing of a comprehensive free trade agreement on April 14 which is expected to take effect later this year. Under the pact, Japan will remove tariffs on 93% by value of imports from ASEAN within 10 years. Six major ASEAN members - namely Brunei, Indonesia, Malaysia, the Philippines, Singapore & Thailand - will reciprocate by eliminating tariffs on 90% of imports from Japan within 10 years.

***Easing The S.E. Asia Flow ..... as the U.S. Agency for Int'l Development will invest US$7.9M to develop an automated program to significantly reduce the time it takes shipping documents to process through customs administrations in Southeast Asia. The system, which will be developed in partnership with the Association of Southeast Asian Nations, will allow shippers, freight forwarders and transport operators to "avoid the current maze of clearances by using a single-source, data-entry process," USAID said. "By consolidating the information used for licensing, inspections and customs clearances, the system will speed shipments of goods to, from and within Southeast Asia," the agency added.

***China Banks On Latin America ..... as at the World Economic Forum in Cancun this month, Wang Jinzhen, V.P. of China's Int'l Trade Promotion Committee, said 25% of the more than US$90 Bn Chinese businesses invested overseas by the end of 2006 was in Latin America. That represents 30,000 individual projects. The increase has been significant. Thirty years ago only US$200M was invested by Chinese companies in the region. By 2000, it had already reached US$10Bn.

***Roanoke Trade Services Inc. Joins UK Group ....... as the well known transportation--related insurance & surety broker joined with Watkins Syndicate, a large cargo and specialty insurer in the UK and member of the Munich Re Group. Watkins has offices throughout the UK as well as Dublin, Hong Kong, Singapore and Dubais. Roanoke was established in 1935 and has twelve offices throughout the United States. Terms were not disclosed

***Napa: Start Your Engines ...... as a recent study of the wine market in Asia concludes Hong Kong is in a position to gain from developing a regional wine trading and distribution center. Though the Asia market represents only a small proportion of the total wine market, the 10% to 20% growth estimated for China in the next 5 years (including Hong Kong, Singapore, Taiwan & Korea) could double the current consumption value to US$17Bn in 2012 and US$27Bn by 2017. It is estimated that China alone will import US$870M worth of wine by 2017. Int'l wine trading & distribution is largely controlled by London and, in recent years, the British have stepped up their marketing efforts in Asia. But Asia will need its own wine trading & distribution center, says the study, and Hong Kong & Singapore are struggling to dominate the Asia trade.

***Calling American Chicken ...... as Chile's Livestock & Agricultural Service has approved the U.S. inspection, control & certification systems for poultry, allowing these products to enter the Chilean market. Under the agreement, slaughterhouses, cold-storage plants & processing facilities of poultry that are officially reported by the U.S. Dept. of Agriculture's Food & Safety Inspection Service (FSIS) will be incorporated into the list of commercial establishments approved to export their products to Chile. Since the U.S.-Chile Free Trade Agreement entered force in 2004, total two-way trade in agricultural products between the countries has increased from US$1.46Bn in 2004 to US$2.23Bn in 2007, or 65%. In 2006, the U.S. exported US$2.5M of poultry products to Chile, with live birds & egg products accounting for about 90%.

***The Paperless Intermodal Bill of Lading ...... as TAM Linhas Aereas, through its cargo division TAM Cargo, is in partnership with the Brazilian Federal Tax Authorities, a group of more than 10 companies from different transport sectors and the State Secretaries of Finance to develop an Electronic Waybill (known as a CT-e) project in Brazil. The project is to implement, later this year, a single Transport Waybill format -- a standard document all cargo transporters will issue before shipping -- that will replace the current paper forms with an electronic document that can be used for all transport categories. The CT-e will make TAM's operations faster and more efficient, as some processes related to transport, which are currently manual, will be automated. Currently, when cargos are unloaded from aircraft, they undergo an inspection process in some Brazilian states and cannot be delivered to addressees until a series of manual procedures are completed. Automating the process will reduce the time cargo remains at inspection points, making compliance with legal requirements faster and more efficient, and simplifying issuance of the Waybill -- which currently must be completed on four to seven copies. As well as these benefits, the CT-e will also bring a significant reduction in the use of paper. Currently TAM Cargo issues around 200 thousand waybills per month, which corresponds to 2.4 million documents annually. With the digital system in operation, the company estimates savings of around five tons of paper per year.

***U.S. Trucking Sends Bad Economic Sign ...... as the American Trucking Assn. said its seasonally adjusted For-Hire Truck Tonnage Index fell 3.3% in March 2008, after remaining unchanged in Feb. The group said the change suggested the country might be in a recession that is more serious than previously thought.

***Lawsuit Charges Fuel Surcharge Rigging ...... as the world's largest agribusiness has filed suit against the nation's 5 major railroads, accusing them of violating antitrust laws and colluding to set fuel surcharges. Decatur, Ill.-based Archer Daniels Midland, one of the nation's major rail customers, said in the federal court filing that it has paid the railroads more than US$250M in fuel surcharges since 2003. ADM does not allege that the fuel surcharges are illegal, but alleges collusion among the railroads in setting them. Filed in a Minneapolis federal court, the suit by ADM names Fort Worth, Texas-based BNSF Railway Co.; Jacksonville, Fla.-based CSX Transportation Inc.; Kansas City, Mo.-based Kansas City Southern Railway Co.; Norfolk, Va.-based Norfolk Southern Railway Co.; and Omaha-based Union Pacific Railroad Co. The suit alleges that the railroads worked together through the Association of American Railroads to set the fuel surcharges. Ed Note: See this fuel surcharge charge arise in other modes in this edition.

***Showing The Warts ..... as the U.S. Federal Railroad Administration said it is making its investigation reports of major train accidents and other incidents available online for the 1st time. The move is to increase public awareness about the causes of specific train accidents and to reduce the need for individuals to submit Freedom of Information Act requests

***Riding A Greener Rail ...... as Norfolk Southern has created a "Carbon Footprint Analyzer" which calculates greenhouse gas emissions that occur when rail transportation becomes a larger component in shipper supply chains.

***The U.S. Buys Some Netherlands Rail ..... as Genesee & Wyoming Inc., a Greenwich, Conn.- based company that operates short line and regional freight railroads in the U.S., Canada, Australia & Bolivia, has expanded into Europe by purchasing Rotterdam Rail Feeding (RRF) for US$21.4 M cash. RRF is an independent provider of short-haul rail & switching services in the Port of Rotterdam with 12 locomotives. Inrelated news, Genesee & Wyoming Inc. has signed an agreement to acquire CAGY Industries Inc. for about US$78.4M in cash. Founded in 1975 & headquartered in Columbus, Miss., CAGY is the parent company of 3 short-line railroads: Columbus & Greenville Railway, Chattooga & Chickamauga Railway, & Luxapalila Valley Railroad.

***The Improved Chunnel Turns Around ..... as overall under the direction of the new Groupe Eurotunnel, traffic through the Channel tunnel had a profit of ¤1 million in 2007, leading Jacques Gounon, chairman and CEO of the organization to note that, "2007 shows that the new Groupe Eurotunnel is nothing like the old." Claiming to be the world leader in intermodal transport volume, Eurotunnel moved some 1.415 million trucks on its shuttles during 2007. It reached a milestone of moving its 12 millionth heavy goods vehicle last May. The increase in truck traffic was 9% more in 2007 than 2006. Average door-to-door transit time between France and England is 90 minutes. As truck drivers have become familiar with the automatic registration system installed in 2006, there has been a reduction in the average time for each transaction. Such operations took an average of 45 seconds as 2007 began and by the end of the year that time was reduced to 30 seconds.

***Find A Port .......... as with over 2 million cities worldwide, 1,000 major Seaports & 1,200 Airports, findaport.net brings you the first search engine you need to quickly and efficiently locate the closest seaport or airport for your International shipment or travels. Simply select your destination country and city from the convenient drop-down list and you receive detail listing of the closest airports and seaports located in that country including mileage and an interactive map. It uses a database containing 2.9 million maps and records for cities, airports and seaports. A great new, free tool!

***Evil Eye? ...... as an Italian man was given a suspended jail sentence for staring too intensely at a woman sitting in front of him on a train. A judge sentenced the man in his 30s, whose name was not revealed, to 10 days in prison and a 40 euro fine after a 55-year old woman filed a complaint for sexual harassment. His lawyer said on April 18, he would appeal the sentence. The two met on two separate occasions in 2005 on a commuter train going from Lecco, a town in northern Italy, to Milan. The first time, the man sat next to the woman but she felt he had moved too close for comfort. The next day, the man sat in front of the same woman and according to her complaint, stared at her for the whole journey. The two did not speak and have no plans to date.

***Wearing the Evidence of Transport Crime ...... as the 1st clue that something might have been wrong was when a car pulled into a parking lot in with a "No Parking" sign and post stuck to the front end of her car. A store clerk called around dawn on April 30, to report the car. When officers showed up, the sign had fallen off, and they found a sleeping driver inside. The 23-year-old Manchester, New Hampshire woman was arrested on marijuana charges, and officers were trying to figure out where she hit the sign.

***Transport Accessory? ........ as Senate lawmakers in Florida have voted to ban the fake bull testicles that dangle from the trailer hitches of many trucks & cars throughout the state. Republican Sen. Cary Baker, a gun shop owner from Eustis, Florida, called the adornments offensive and proposed the ban. Motorists would be fined US$60 for displaying the novelty items, which are known by brand names like "Truck Nutz" and resemble the south end of a bull moving north. In a spirited debate laced with double entendre, Senate lawmakers questioned whether the state should curtail freedom of expression in vehicle accessories.


  2. The Cargo Letter Financial Page ______

**Burlington Northern Santa Fe Corp. UP with 1st quarter net income of US$455M, up from US$349M in same 2007 period.

**Canadian Pacific Railway. DOWN as 1st-quarter net income fell 29% from a year ago to C$91 million, or 59 cents a share, from C$129 million, or 82 cents, a year ago.

**COSCO Pacific Ltd. (terminals) UP as net profit jumped 47% in 2007 to $427.8M.

** CSX Corp. UP as 1st-quarter profit rose to US$315M, or 85 cents a share, from US$240M, or 52 cents, in the previous first quarter.

**Dubai Ports World. UP made US$420 million in after-tax profits in 2007, a 52% jump over 2006.

**J.B. Hunt Transport Service. DOWN as 1st-quarter profit declined to US$36.4M, or 28 cents a share, from US$44.2M, or 30 cents, a year ago.

**Forward Air Corp. UP as 1st-quarter profit was US$10M, or 35 cents a share, compared with US$10.3M, or 34 cents, a year earlier.

**"K" Line. UP as profit for fiscal year 2007 rose 61% to US$803M.

**Kuehne + Nagel International AG. UP with 1st quarter 2008 net earnings of US$156M, up 18.5% from same quarter last year.

**MOL. UP with a 57.4% jump in net income to US$1.9Bn for its 2007 fiscal year ended March 31.

**Navigators Group, Inc. (transport insurance) UP with net income of US$23,250,000 or US$1.36 per share for the 2008 1st quarter compared to net income of US$19,672,000 or US$1.17 per share for the 2007 first quarter.

**Old Dominion Freight Line DOWN as its 1st-quarter profit fell to US$10.4M, or 28 cents a share, from US$13.6M, or 36 cents, a year ago.  

**Ryder System UP as its 1st-quarter profit rose 9% to US$56.1M, or 96 cents per share, from US$51.3M, or 84 cents, a year earlier.   

**Southwest Airlines. DOWN as net income for 1st quarter 2008 was US$34M, or $.05 per diluted share, compared to US$93M, or $.12 per diluted share, in 1st quarter 2007.

**Union Pacific Corp. UP with1st quarter profit of US$443M, 15% higher than the US$386M in the same 2007 period.

**UPS Inc. UP as 1st-quarter net income rose to US$906M, or 87 cents per share, from US$843M, or 78 cents, a year ago.

**YRC Worldwide Inc. DOWN with a 1st quarter net loss of US$45.9M, compared to a profit of US$1.3M in same quarter 2006.                           



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

3. Freight Forwarder World Air Briefs ___   

***Delta Air Lines The New World #1 ..... as it has agreed to merge with Northwest Airlines to create what would be the world's largest airline. The combined stock value of the companies is US$17.7Bn. The new airline will be called Delta and be based in Atlanta, Delta's current headquarters. The airlines broke off talks in Feb. after their pilot unions could not agree on seniority & how to distribute up flying time on larger aircraft, which draw greater compensation. Speculation resumed on April 13, that airlines were talking again and nearing an agreement as the economic position of the airline industry had continued to deteriorate. Under the deal, Northwest shareholders will receive 1.25 shares of Delta stock for each Northwest share. United & Continental Airlines have reportedly been in talks for several months as well about forming a combined carrier to compete with a larger & more efficient Delta.

***ATA Airlines Calls It Quits.... as in describing precipitating factors in ATA Airlines filing for Bankruptcy protection this month, Doug Yakola, the carrier's COO noted, "the cancellation of a critical agreement for our military charter business," as well as the "tremendous spike in the price of jet fuel in recent months." The agreement was one that had ATA as a member of the FedEx team that provides airlift for moving military personnel and their families to and from overseas destinations. According to ATA, FedEx had informed the airline that it would not be a member of the team for the federal fiscal year that begins Oct. 2008. "This termination is a full year earlier than the term specified in a letter of agreement between FedEx and ATA," says ATA. Since the carrier's scheduled service had suffered greatly from increases in fuel costs and the arrangement as part of the FedEx team represented most of ATA's charter business, the carrier concluded it was necessary to seek bankruptcy protection. ATA had handled its own cargo business, principally at locations in Chicago & Dallas in the Continental U.S., at Hilo and Honolulu in Hawaii and at Guadalajara, Mexico. Shipments pending with the airline could be retrieved at shipper's local ATA Cargo facilities. The airline was not making payments for loss, damage or pilferage of cargo claims, suggesting those who have such claims submit them to the Bankruptcy Court. Court filings & claims information is available at www.bmcgroup.cm/ataairlines

***Skybus Airlines Made It For Only A Year ..... as with headquarters in Columbus, OH, Skybus Airlines began flying in May 2007 & shut down in April 2008. It sought to compete as an extremely low-cost airline, using Ireland's Ryanair as a business model. As with Ryanair, Skybus flew to secondary U.S. airports rather than those that are larger with heavier traffic. In order to generate revenue, it also sold merchandise on board and carried interior and exterior advertising. As one of the only totally non-union U.S. airlines at the time it shut down Skybus was faced with a pilot's unionizing campaign that offered strong prospects of being successful. Skybus did not handle its own cargo, instead it had a relationship with Mercury World Cargo for moving air freight.

Celebration: Skybus At The Begining -- A Dream Now Gone

***C-TPAT Air Reg. Published ...... as U.S. Customs & Border Protection (Customs, CBP) has posted to its website, an outline of minimum security criteria, for air carriers participating, or wishing to participate, in the Customs-Trade Partnership Against Terrorism (C-TPAT) program. See Countryman & McDaniel for your company certification.

***Fuel & Security Surcharge Probe Launched ...... as Japan's Fair Trade Commission is investigating some of the country's biggest express service providers, with government officials on April 16, raiding the offices of Nippon Express, Kinetsu Express and Yusen Air & Sea Service Co., among others. Japanese press reported that 13 companies, as well as the Japan Aircargo Forwarders Assn., are involved in the investigation over price fixing on express services. The allegations center around surcharges for fuel & security costs that were tacked on to cargo fees uniformly by all the companies, which is a violation of Japanese antimonopoly law. With the trade buckling over high fuel prices, the truth of this would be beyond distasteful.

***B-777-F Soon Launched ..... as final assembly work on the first Boeing 777 Freighter began at the company's Everett, Wash., facility this week. The 777F, which will have a range of 9,045 kilometers with a revenue payload capability of more than 103 metric tons, is scheduled to be delivered to launch customer Air France in the 4th quarter after summer test flights. So far 11 customers have ordered 78 of the freighters. Boeing's relatively smooth progress with the 777F contrasts its experience with the new 787 Dreamliner passenger plane. A number of airlines are now seeking compensation from Boeing, which earlier this week announced a further delay to the 787 delivery schedule. The first 787 is now planned to be delivered in the third quarter of 2009, instead of the original May 2008 date.

***The Great Wall In The U.S. ...... as Shanghai-based all-cargo Great Wall Airlines will add Seattle and Chicago as its 1st two U.S. destinations starting June 2008. The airline will on June 1, start a three-times-weekly service using a Boeing 747-400 freighter on a route of Shanghai, Seoul, Seattle & Chicago.

***Pudong Airport Expands ...... as China's 2nd-biggest airport terminal at Shanghai's Pudong Int'l Airport became operational on March 26, 2008. Pudong Airport handled 2.51 million tons of cargo last year, making it the 4th largest airport cargo hub in the world. The cargo handling capacity is expected to be increased to 4.2 million tons in 2008. In order to meet increased air travel demand, plans and preparations are underway for a 3rd terminal to be built by 2015. The additional terminal is expected to be able to boost the capacity of Pudong to 80 million passengers a year.

***Canine Cocktail of The Day Requires Proper ID ....... as Lufthansa Cargo has opened a new facility that it says is the most modern in the animal facility in the world. The new "Frankfurt Animal Lounge" has total floor space of 40,000 square feet for animals being transported. Previously, facilities were dispersed around the airport complex. Lufthansa said it's one of the leading providers of animal transport on board both its fleet of 19 MD-11 freighters and in the belly holds of Lufthansa passenger aircraft. Aside from fishing bait & ornamental fish, Lufthansa Cargo carries annually more than 14,000 cats and dogs as well as 1,500 horses. It also works with zoos on the transport of exotic animals in wildlife conservation programs.

***Canada Post & FedEx Express Canada Tie The Knot ..... as they have combined forces in the development of Priority Worldwide, a new Int'l express service that will be sold in Canada through Canada Post's retail & commercial networks and delivered worldwide through the extensive FedEx international delivery network. The service starts later this year and will offer an on-time, money-back guarantee and delivery standards of next business day by noon to most USA destinations and 2-3 business days to most of the remaining industrialized world.

***Door-To-Door ........ as Sports Express, LLC, has acquired 2 previously competing door-to-door luggage delivery brands: Luggage Express & Virtual Bellhop. This acquisition makes Sports Express the largest service provider in the luggage delivery category. The company seeks to capitalize on new airline baggage charges, as well as the ability of passengers to disregard airport baggage considerations.

***Biggest Honeymoon Secret Ever? ....... as starting in Sept. newlyweds can start their dream trip on a Royal Air Force mid-air refueling plane, and the chances are they will be blissfully unaware of their luck. Britain's military is leasing a fleet of aerial tankers from a private consortium led by Airbus parent EADS in a landmark outsourcing deal. The converted A330 passenger jets can carry 60 tons of fuel to refuel up to 4 fighters or else serve as transporters carrying 300 troops & their equipment. Officials involved in the project say some of the jets will also double as charter planes for tourists to earn their keep whenever they are not needed to serve the front line. Because new jetliners are more efficient than the decades-old VC-10s & Tristars they replace, there will be enough space for fuel for refueling in the aircraft's main tanks as well as a fully fitted cabin interior for passengers. With a plain livery, most passengers should be unaware their ordinary looking charter jet may have seen action over Afghanistan or Iraq on -- hopefully -- separate missions. The long-range, wide-body A330-200 model on which the tankers are based has a maximum range of 12,500 km or 6,750 nautical miles. With one of its ordinary airline users, it flies daily from France to holiday & honeymoon destinations in the Caribbean.

***So For Our Four Family, The Flight To New York is US$24? ...... as Irish airline Aer Lingus partially backed down April 17, over its refusal to honor an online offer that mistakenly sold business class transatlantic flights for US$8.00. The flights would normally have sold for 1,775 euros one way and the airline said about 300 bookings were involved, with some of those including multiple seats. The former state airline said it was offering the customers involved in the debacle "the option to travel in economy class at the price of their original booking." Originally the airline said in a message to customers: "Unfortunately yours was one of the bookings affected and this email is to notify you of cancellation of your booking and to advise no funds will be deducted from your account." However, the Irish Consumers' Assn. said the purchasers had a binding contract because the offer was made, and it was accepted by Aer Lingus. Consumers booked and paid to bind the contract. The National Consumer Agency also said it had "a very productive meeting" with the airline. The Aer Lingus webmaster is said to be currently seeking political asylum in Haiti.

***About That Metal Plate In Your Head ....... as a woman who claims she was ordered by federal airport screeners to remove her nipple rings with pliers demanded an apology from the U.S. Transportation Security Administration on April 17. Mandi Hamlin, 37, also called for an investigation into the Feb. 24 incident in Lubbock, Texas, saying that snickering male agents violated TSA policy by forcing her to remove the jewelery. The incident is said to have begun when Hamlin, who has a number of piercings, set off a hand-held metal detector and told a TSA officer that her nipple rings were the problem. A small group of TSA officers gathered around Hamlin and allegedly told her she would have to remove the jewelery from her nipples if she wanted to board her flight.

***Where The Hell Is Your Airport? ....... as a KLM flight headed for Hyderabad in India's south skipped its destination & flew across India because the pilot was unaware the city had a brand-new airport, a report said March 24. The confusion occurred barely hours after the Rajiv Gandhi Int'l Airport in the Hyderabad suburb of Shamshabad became operational after midnight March 22, with flights landing & taking off, said the Times of India. The pilot of the KLM flight, which had taken off from Amsterdam, at first headed towards Hyderabad's old airport and was told by air traffic control the facility had been closed. When directed to fly to the new airport, the unnamed pilot replied: "What's that?" and flew instead first to New Delhi, from where he took the plane to Mumbai after being declined permission to land. The plane had on board 230 economy & 13 business-class passengers when it approached Hyderabad at 1:45 a.m. Indian time on March 24. It had been due to fly out of Hyderabad to Amsterdam at 3:35 a.m. with more than 230 passengers. The Times of India cited an anonymous source as saying the Dutch airline's pilot had been reluctant to land in Shamshabad because its headquarters in Amsterdam had not received a notice about the closure of the old and the opening of the new facility. The new airport, built at a cost of more than US$600M, opened for flights after a week's delay prompted by airline requests for more time to switch to the new facility & operational reasons such as shifting of equipment.                    



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

  4. FF World Ocean Briefs _____________     

***For Sale: Hapag-Lloyd ....... as the supervisory board of TUI AG approved a decision to "prepare a separation of container shipping from the group." All options will be examined, said the board statement, including spin-off, merger or divestment as a single entity. Hapag-Lloyd became one of the top five shipping lines in the world after acquiring CP Shipsin 2005. Its 2007 revenues topped US$9Bn. Singapore-based NOL is reportedly interested in the line. A number of other parties are rumored to be interested, but only Ian Karan of Hamburg has expressed interest in the line. Hapag-Lloyd's largest volumes transit the Atlantic trade lines (1,456,000 TEUs in 2007). This is closely followed by the Asia-Europe lane at 1,374,000 TEUs and the trans-Pacific lanes at 1,044,000 TEUs.

***Pirate Take-Down! ...... as French naval forces on April 11 were called upon to rescue the crew of the luxury sailing cruise ship S/V Le Ponant, owned by Compagnie Des IIles du Ponant, a subsidiary of France's CMA CGM, after she was hijacked by pirates off the coast of Somalia. Don't miss our photos of vessel capture & subsequent rescue and pirate take-down.

***Pirates Push Oil Market ...... as an attack on the Japanese very large crude carrier M/T Takayama April 21, was believed to be one factor helping boost oil prices to record high April 21, when the contract for light sweet crude oil for delivery in May briefly hit US$118.05 per barrel on the New York Mercantile Exchange. The NYK vessel was sailing in the Gulf of Aden Monday morning at about 4:40 a.m. local time, when a small, unidentified boat "fired some sort of munition." The ship was about 440 kilometers east of the Yemeni city of Aden when the attack occurred. Crew discovered a 20-millimeter hole on the port side near the ship's stern. The company said a few thousand liters of fuel oil appear to have leaked through this hole, but it has since been patched. In an interview with Japanese broadcaster NHK, A crewmember told Japanese broadcaster NHK the ship was attacked 4 times by pirates. A German Navy frigate, the Emden, launched a helicopter to intercept the pirates who fled.

***Political Correctness For Pirates? ...... as the Sunday Times of London reported on April 17, the Royal Navy, once the scourge of brigands on the high seas, has been told by the Foreign Office not to detain pirates because doing so may breach their human rights. Warships patrolling pirate-infested waters, such as those off Somalia, have been warned that there is also a risk that captured pirates could claim asylum in Britain. The Foreign Office has advised that pirates sent back to Somalia could have their human rights breached because, under Islamic law, they face beheading for murder or having a hand chopped off for theft. A Foreign Office spokesman said: "There are issues about human rights and what might happen in these circumstances. The main thing is to ensure any incident is resolved peacefully." The guidance is the latest blow to the robust image of the British Navy. Last year 15 of its sailors were taken prisoner by the Iranians and publicly humiliated. Ed. Note: We have no words for this Sunday Times of London report. You can't make this stuff up -- so here is the full report:

***Puerto Rico Price Fixing Charged ...... as a class action lawsuit has was filed on 22 April against the 4 major liner carriers operating between the U.S. mainland & Puerto Rico. Century Packing Corp. filed the case, which claims unlawful price setting in violation of the Sherman Act and asks for triple damages, in the U.S. District Court for the District of Puerto Rico in San Juan. The suit alleges during the period since at least 2004, the defendants &emdash; Horizon Lines, Sea Star Line, Trailer Bridge and Crowley Maritime &emdash; "conspired to fix, raise, maintain and/or stabilize prices" on their routes to Puerto Rico. The lawsuit follows word that the U.S. Justice Dept. is investigating all four major container carriers between the U.S. mainland and Puerto Rico -- Horizon Lines, Crowley Maritime, Sea Star Line & Trailer Bridge. The lines have received requests for information and federal agents visited the offices of several on April 17, seizing files.

***Fuel Surcharge Fixing Charged ..... as the European Shippers' Council said thiis month its members are being overcharged when its comes to fuel surcharges set by liner conferences Trans Atlantic Conference Agreement and the Far Eastern Freight Conference. Analysis for the ESC conducted by Meyrick and Associates found that TACA's published BAF level of US$607 per TEU was US$422 higher than the actual fuel costs, while the FEFC surcharge level of US$456 per TEU was nearly US$100 above the Meyrick estimate. With the trade buckling over high fuel prices, the truth of this would be beyond distasteful.

***Proposed New World Ocean Cargo Law Up For Review ..... as the United Nations Commission on International Trade Law has recently released the Report of UNITRAL Working Group III. This is the present & probably final form of the Draft Convention on Contracts for International Carriage of Goods Wholly or Partly by Sea which hoped will replpace U.S. COGSA, the Hague Visby Rules and the Hamburg Rules. It will be presented to the UNCITRAL Commission at its meeting at U.N. headquarters in New York that begins June 16. If it approves the draft treaty, it is expected to be presented to the General Assembly in the fall. Ed. Note: In many ways, this should be called the Maritime Lawyers Full Employment Act.

***Low U.S. Dollar Brings Container Shortage ...... as many U.S. companies seeking to export their goods are facing shortages of containers to ship them, the Wall Street Journal reported April 10. The shortage is threatening to limit the benefits that U.S. producers can gain from one of the few bright spots in a troubled economy, the Journal reported April 10. Finding enough of the ocean containers used to be easier, because surging imports brought them in to West Coast ports, the Journal said. But with plunging U.S. dollar making American goods more attractive to foreign buyers, the tide has shifted in recent months, the paper said. Shipping containers and the way they are being handled reflect how the U.S. interacts with the global economy, which is one reason the problem has emerged now. Chassis to carry containers are also in short supply in some areas, the Journal said, citing Maersk.

***World Ocean Lanes Generally Up ..... as the fastest growing sector was the Europe-Asia lanes, which increased 16.1% from 2006 to 2007. Though a smaller volume (890,000 TEUs), Latin American trades rose 12% in 2007. The Atlantic trades rose 4.6% in the same period. Trans-Pacific trades were up 10.2% while Australasia remained flat.

***Maersk Is #1 ....... as the A.P. Møller-Maersk operated fleet will exceed 2 million TEUs in capacity by the end of this month, said the research service AXS-Alphaliner. The Danish carrier has doubled its fleet since hitting the 1 million-TEU mark in Dec. 2004. The 2 million-TEU total includes ships operated by Maersk Line as well as affiliates Safmarine and MCC Transport. Carriers such as CMA-CGM, MSC, China Shipping, Hapag-Lloyd and Hamburg Sud have all grown their fleets more quickly than Maersk since 2000. The 3 largest carriers &emdash; Maersk, MSC and CMA CGM &emdash; had a 34.1% market share.

***Panama Canal Authority Seeks $ Support .......as it is looking to put debt finance in place for US$2.3Bn by the end of the year, a figure at the upper end of its borrowing forecast, according to ACP administrator Alberto Aleman. Under its expansion plan proposal the ACP had said it would need to borrow between US$1.5Bn & US$2.3Bn to cover the shortfall between revenues and capital expenditure between 2009 and 2011. The total cost of the expansion project is US$5.25Bn, with most of the project being covered by internal resources. Toll increases lifted annual revenues last year to US$1.76Bn and planned incremental adjustments of around 10% a year are expected to lift that figure to US$2Bn this year. But the difficulties being felt in the US, which accounts for 65% of Canal traffic, is beginning to show signs of affecting volumes passing through the waterway.

***Indian Inbound Incites ....... as detention charges on containers in Indian ports are upsetting importers there, according to a report in the Economic Times. The problem is that shipping lines continue counting & charge for container detention days even when their offices are closed, argued shippers. So, if an empty container is dropped at a port on a Friday evening after the carrier's office is closed, it's not counted as turned in until the office opens on Monday morning. The problem is exacerbated when there are national holidays as another day of detention is incurred. With detention charges in India's biggest port, Jawaharlal Nehru, running about US$100 per day, the charges soon add up. Importers also argue that much of the five days of free time is taken up just taking delivery of the box, not to mention transporting it to its destination & back to the port. Cargo owners also say that capital is locked up because the lines require them to pay detention charges in advance and then get a refund if the box is delivered on time.

***Tropical Shipping Gets Caribtrans ..... as the carrier of containerized freight in the Bahamas and Caribbean, has signed a definitive agreement to acquire the assets of Miami-based Caribtrans, Inc. Terms of the agreement were not announced. Caribtrans has served the Caribbean since 1985 and is a leading provider of less-than-container load and full-container load consolidation services from the U.S. to the Caribbean & Central America.   

***Baja Mega-Port On Hold? ....... as the Mexican government has told potential investors in the Punta Colonet port project that it has decided to delay bidding on the US$5Bn project until 2010. The decision was announced to possible French investors, such as shipping giant CMA CGM, at a welcome session of the World Economic Forum of Latin America held recently in Cancún, Mexico. Differing versions of the Punta Colonet port, located about 150 miles south of San Diego, Calif., have ranged in cost from US$1Bn to US$9Bn and varied in scale from smaller than the Port of San Diego to as large as the ports of Long Beach & Los Angeles combined. Envisioned as a nearly all-intermodal operation, current plans call for containers to be transported via rail to U.S. mainline rails near the intersection of the California, Arizona & Mexican borders. The Mexican government's current vision is for Punta Colonet to be in the 5 million TEU-a-year size range when fully constructed in about 2020, about the size of the current New York-New Jersey port complex, the third-busiest U.S. container port complex.

***India Is Outsourcing? ...... as the state-run company Shipping Corp. of India is pondering outsourcing the management of its ships, according to reports. Indian shipping minister T.R. Balu said the decision "is primarily due to the acute shortage of qualified and competent seafaring officers, which in the recent past has resulted in the loss of trading days." OK, so will their customer help-line be answered by people in Iowa?

***New Port At Aqaba ..... as a United Arab Emirates development firm has won the contract to relocate & redevelop a port in the Jordanian seaside city of Aqaba. The US$5Bn port will be built in three phases and will cater to cargo and passenger ships as Jordan seeks a slice of increasing business on the Red Sea. Aqaba is located on the narrow strip of land between Israel and Saudi Arabia that touches the Red Sea, which is linked to the Mediterranean Sea by the Suez Canal. The project will see Al-Maabar, the U.A.E. developer, shift the port to the southern side of Aqaba. Al-Mabaar has other projects in Morocco, Tunisia, Libya, Sudan & Egypt.

***World Container Demand To Fall? ...... as the world's two largest container manufacturers &endash; China Int'l Marine Containers (CIMC) & Singamas Container Holdings &endash; have reported increased profits for 2007 but warned that demand is likely to fall this year due to uncertainties over global trade growth. CIMC, the largest manufacturer, reported a 12% increase in profit to US$452M. Singamas's profit soared 88% to US$34M. CIMC's 2007 output totaled 2.1M TEU, comprising 1.86M TEU of dry freight units (up 37%), 73,000 reefers (+39%) and 58,000 specialized containers, including tanks (+1.7%). Singamas produced a record 838,638 TEU last year, up 44%

***China's Green RTGs ...... as Da Chan Bay Terminal One in the Port of Shenzhen has taken delivery of 30 electric rubber-tire gantry cranes, making it the first terminal in the world to operate wholly with electric-powered RTGs.

***Ice-Cream Stick Viking Ship ...... as a dream set sail for England from the Netherlands on April 8. The 15-metre (50-foot) long ship, named after the Norse god Thor, is made from 15 million recycled ice-cream sticks glued together by U.S.-born stuntman Robert McDonald, his son and more than 5,000 children."If you can dream it you can do it ... I want to teach children that anything is possible," McDonald said. Badly injured as a child in a gas explosion that killed the rest of his family, he has loaded his ship with cuddly toys and plans to reach London and visit children in hospitals. He & his crew hope to cross the Atlantic later on the ancient Viking route to North America via Iceland & Greenland.

***Banana Yellow Rage ...... as an APL container loaded with export bananas was torched by rebels as it moved from the Philippine town of Compostela to Davao City, Philippine news outlets reported April 19. The assailants apparently disengaged the reefer container from the truck (which was owned by APL Logistics), then poured gasoline on it and set it ablaze to protest what they called exploitation by banana export companies. The rebels said called for wage hikes for banana plantation workers before fleeing.

***Throughput >>> Port of Antwerp in Belgium handled 46.2 million tons of freight in the first three months of 2008, a 3.4% increase from the first quarter of 2007. >>> California ports of Los Angeles & Long Beach combined container volume in March decreased 7.6% to 1.08 million TEUs, down from 1.17 million in the same month last year. >>> Port of Montreal saw a 9.4% increase in containerized cargo and a 3.6% increase in total volume, which rose to 26 million tons in 2007. >>> Port of Rotterdam in the Netherlands experienced a 6.8% year-on-year rise in throughput during the first quarter, handling 105 million tons of cargo.

***This Month In U.S. Navy History

1778 - Capt. John Paul Jones of Ranger leads a landing party raid on Whitehaven, England.

1778 - The Continental Navy sloop Ranger captures HMS Drake.

1783 - George Washington proclaims the end of hostilities with Great Britain.

1884 - USS Thetis, USS Bear & USS Alert sailed from New York to search for Greeley expedition lost in Arctic.

1912 - USS Chester (CL 1) & USS Salem (CL 3) sailed from Massachusetts to assist RMS Titanic survivors.

1914 - First air combat observation mission by a Navy plane, at Veracruz, Mexico.

1921 - U.S. Naval Detachment left Yugoslavia after administering area around Spalato for 2 years to guarantee transfer of area from Austria to new country.

1945 - In only U.S. use of guided missiles in World War II, two BAT missiles release at Balikpapan, Borneo.

1952 - USS Hobson (DMS 26) sinks after colliding with USS Wasp (CV 18); 176 lives lost.                                 



   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!! Don't miss the pirate attack on  M/V Seabourn Spirit

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 photo feature for April 2008: "River Rescue" - M/V MSC Sabrina - amazing container rescue in St, Lawreance River

See our other photo new feature for April 2008: "Paradise & Pirates" - S/V Le Ponant - Commandos Retake Vesse! from pirates - 5 dead

Our continuing saga for March 2008: "Back To The Beach" - M/V Riverdance

You Tube feature: "Container Gantry Gone"

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..............

Cargo & Trade>>>>>>

ACE Portal Application and Program Participation

ACE Overview

Are My Goods Subject to Quota?

Asia-Pacific Trade Agreements

Belgian Foreign Trade Agency

China 3PL Market Survey 2008

City Data For U.S.

Divisions Persist On Anti-Dumping Draft Text

Ease of Doing Business in 178 Countries

Global Sources Magazines ...... free

EU Commission Press Release: 9th meeting of the Joint Customs Cooperation Committee

Maritime Job Search

Mother of All Wine Runs At Sea

Use of SOLAS Ship Security Alert System ....... academic report from Singapore said there are "grave shortcomings"

U.S. Customs: Clearing Customs ...... what you need to know

U.S. Customs: Duty Drawback

U.S. Customs Import Safety

U.S. Customs: Importing Coffee

U.S. Customs: Importing Mushrooms

U.S. Government Accountability Office Report .......how U.S. trade preference programs affect the United States

U.S. Interactive Tariff & Trade Dataweb .......Int'l trade statistics & U.S. tariff data to the public, free.

U.S. Presidential Proclamation -- April 17, 2008 -- Changes to the Harmonized Tariff System (HTS)

U.S. Trade Remedy Investigations ...... many resources related to anti-dumping duty (ADD) & countervailing duty (CVD) issues for U.S. imports.

USTR's Generalized System of Preference Guidebook - 2008 Version

US-VISIT Process



ARL Terminal Resource Planner ........managing resources for port and terminal operations.





Transport Events

Trade Shows, Exhibitions, Conferences & Business Events Worldwide

World Trade Organization Events

1st Journal of Commerce Container Transport Investment Conference ....... Jan. 14-15, 2008 in New York City

3rd Annual California International Arbitration Conference ...... Friday, May 2, 2008, The Doubletree Guest Suites, Santa Monica, CA

4th China 3PL Summit ..... 16-18 June 2008, Shanghai

2008 Value Chain and Logistics Outsourcing Exchange ...... May 28, 2008 at the Phoenician Resort in Scottsdale, Arizona

Greening the Supply Chain Conference ....... June 9-10 in Sacramento, Calif.

Int'l Congress of Maritime Arbitrators ......5 - 9 Oct. 2009, Empire Riverside Hotel, Hamburg

Int'l Freight Week ...... 23-25 Nov. 2008, Abu Dhabi National Exhibition Centre

London Maritime Arbitrators Assn. Spring Seminar ..... May 7, London

Longshore Seminars ....... Anaheim, California

Comprehensive Seminar (2 Day) &endash; May 13 & 14, 2008

Advanced Seminar (1 Day) &endash; May 15, 2008.

MARAD Approved Maritime Security Awareness Classes

Port & Shi[ Int'l India ....... Oct. 23-25 2008, Mumbai

Transport Logistic China ........ 17-19 June 2008, Shanghai New Int'l Expo Centre

RORO 2008 Conference ....... 20-22 May, Gothenburg, Sweden

Seatrade Asia Awards 2008 ......... 13 May 2008, Island Ballroom, Shangri La Hotel, Singapore

Shipdex Conference ....... May 14, Hamburg, Germany

Transport Logistic China ........ 17-19 June 2008, Shanghai New Int'l Expo Centre

Virginia Maritime Association Int'l Trade Symposium ....... May 8-9 2008, Norfolk


General Interest>>>>>>>>>

Below The S/S United States ...... once America's Flagship -- bowels of the big ship

Carne Asada is Not A Crime?

EAA's "Salute to Veterans" B-17 Tour

Guided-Missile Frigate RSS Steadfast (FFG 70)

Hot For Words

Inland Orange Conservancy

Oasis Camel Dairy

Road Kill

Stranded Ship at Cabaritan Beach, Cagayan ........ can you supply facts of the loss?

Stuff White People Like

"THE" Honda Commercial ........the recording cost US$6M, took 3 months & required 606 takes, but there are no computer graphics or digital tricks.


The Most Powerful Vessel Diesel Engine in the World!

Tricia Walsh Smith ........ the happy marriage


Why Japanese Subways Run On Time ...... don't miss this

Zap Electric Vehicles



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

  7. Report On The Wreck of Container Vessel M/V Napoli & New Reported Case ____________

With Added Commentary by Geoffrey Gill, Esq.

Attorney of Countryman & McDaniel and Former Merchant Deck Officer

The 900 ft., 53,409-deadweight-ton British container ship, M/V Napoli (built 1991), enroute to Le Have & Sines, took on water Jan. 18 2006, after developing a hole on the starboard side in gale-force 9 conditions -- in 40ft seas and 70mph winds --as she made way through the English Channel, 50 miles off the Lizard in Cornwall. The 26 crew abandoned ship without injuries. The vessel was off loaded and ultimately cut up for salvage.

M/V Napoli was built in 1991 by Samsung Heavy Industries in South Korea. She was deployed on Mediterranean Shipping Co.'s service between North Europe and South Africa via the Canary Islands on charter from Zodiac Maritime Agencies Ltd. The registered owner is Metvale Ltd.

Sailing at a speed of 11 knots, the 4,419-TEU vessel was on passage in the English Channel on Jan. 18, 2007 when she suffered a structural failure of the hull causing the engine room to flood. The ship was under tow towards Portland when the decision was made to intentionally ground it in Branscombe Bay due to a risk of sinking. The bow section was several months later taken to the Harland and Wolff shipyard in Belfast for disposal. Work to remove the remaining stern section will begin in early May.

On April 22, UK Marine Accident Invstigation Branch (MAIB) issued its report upon the investigation into plate buckling in the area of M/V Napoli's engine room forward bulkhead in heavy seas, determined to have been the result of insufficient buckling strength in the affected area. The failure to detect this potential deficiency was attributabled in part to the current classification society practice that requires buckling checks only in the way of the midships 40% of a vessel's length. More generally, the margin by which a container vessel's designed hull strength exceeds maximum expected loads was found to be not quantified and does not explicitly take into account all factors that may increase bending moments.

The design of theM/V Napoli, rather than its condition or structure, was to blame for the structural failure of the containership in the English Channel in Jan. 2007, the British investigation has found. The incident drew Int'l attention when scavengers looted containers washed up on the Devon Coast. The MAIB, an independent branch within the United Kingdom's Dept. for Transport (DfT), has recommended a review of the technical rules used in containership design and said at least 12 other ships of similar design could have the same flaw.

MAIB has identified a number of factors that contributed to the failure of the hull structure, including:

• The vessel's hull did not have sufficient buckling strength in way of the engine room.

• The classification rules applicable at the time of the vessel's construction (1991) did not require buckling strength calculations to be undertaken beyond the vessel's amidships area.

• There was no, or insufficient, safety margin between the hull's design loading and its ultimate strength.

• The load on the hull was likely to have been increased by whipping effect, as it slammed into the heavy seas.

• The ship's speed (11 knots) was not reduced sufficiently in the heavy seas, with wave heights up to 9m. "It is almost certain that a reduction in speed would have significantly reduced the risk of hull failure," says the report.

While all potentially relevant factors cannot be assessed with empirical certainty, the investigation revealed numerous factors of concern. These most significantly included:

1. The effect of "whipping," which is the flexural vibration of a hull structure resulting from abrupt vertical deceleration when a flared bow or stern heavily impacts the water surface ("slamming" or "pounding").

2. Inaccuracies in container weights and positioning, given that a significant percent of loaded containers exceed their respective manifested weight and that up to 10% of containers loaded aboard a vessel are stowed in other than their planned or designated stowage position.

3. Short & long term failure to report structurally impacting events and operational equipment deficiencies to the involved classification society denies an opportunity to detect and remedy potential danger sites or otherwise permit more informed operational decisions.

Concerns illuminated within by MAIB report, together with concerns raised by the recent container stow failure on M/V ANNABELLA, suggest that the container shipping industry should, and likely will, be caused to assess and remedy various systemic and operational deficiencies. The larger question is whether the industry will bring itself to an acceptable level of self-regulation or will be compelled to accept external, and likely more onerous, external regulation.  

Follow our extensive Cargo Law photo coverage of this loss as the saga progressed throughout 2007 ........

The MAIB Report -- And More

Be sure to read our Geoff's article "The Human Element: Safety Lessons From Other Domains" in this month's issue of Professional Mariner magazine



U.S. 9th Circuit Court of Appeals

24 April 2008

Capt. & First Mate of a Taiwanese fishing vessel were stabbed & killed by a crewman, Shi, while the vessel was in Int'l waters. The other crew ultimately overpowered Shi and imprisoned him aboard the vessel. They set course to Hawaii, where the vessel was intercepted by the U.S. Coast Guard approximately 60 miles from Hilo, Hawaii. The Court held that the district court had jurisdiction over Shi. 18 USC § 2280 codifies the U.S.' obligations under the Maritime Safety Convention to extradite or prosecute those who commit acts of maritime violence. The statute provides federal jurisdiction over acts committed on ships if "the offender is later found in the U.S. Voluntariness of Shi's arrival is irrelevant for that analysis. Because maritime violence and piracy are universally condemned, due process does not require a nexus between the offender and the U.S.


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)

Maria Payne (Countryman & McDaniel)

Christoph Whaner, Esq. (Countryman & McDaniel)


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