The Cargo Letter

THE CARGO LETTER [344]
Air & Ocean Freight Forwarder - Customs Broker News
20 September 1999

Good Monday 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." This month we bring you the new INCOTERMS, a full report of Cargo Damage Dispatches and Pirate news!

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 use our web site:

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

INDEX to The Cargo Letter:

OUR "A" Section: Trade, Financial & Inland News
   1. Freight Forwarder Trade Briefs
   2. The Cargo Letter Financial Page
OUR "B" Section: FF World Air News
   3. Freight Forwarder World Air Briefs
OUR "C" Section:  FF World Ocean News
   4. FF World Ocean Briefs
   5. The Cargo Letter Cargo Damage Dispatches
      * Back By Popular Demand
OUR "D" Section: FF in Cyberspace
   6. The Cargo Letter "Cyber Ports Of Call"
OUR "E" Section: The Forwarder/Broker World
   7. Account of The Argentina Air Loss
      * A Local Account
   8. A Horse Named Kimberlee 
      * Like A Boy Named Sue

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

1. Freight Forwarder Trade Briefs

• New Trucker Allegations Hit Intermodal Operators ........... as the American Trucking Assn. (ATA) alleges that more than 45% of intermodal equipment on the highway today may have unsafe brakes, suspensions, brake lights & tires. It wants the U.S. Federal Highway Administration (FHWA) to impose harsh regulations that would place with railroads & steamship lines most responsibility for inspection & repair of containers, chassis & trailers before they are interchanged to motor carriers. ATA says truckers should not be liable for safety defects when picking up equipment from rail yards & marine terminals. ATA also wants FHWA inspectors to visit those yards & terminals and place defective units out of service until repaired. However, the Intermodal Assn. of North America, representing some 660 steamship, railroad, trucking & intermodal marketing members, says there is not sufficient data to conclude the public is at risk and that federal regulations as proposed by the ATA are premature. In fact, the FHWA may not even have authority to impose such regulations on railroads & steamship lines, said IANA.
• European Commission Says U.S. Unfair ............. as it has criticized what it regards as trade barriers & discriminatory regulations by the U.S. "A considerable number of impediments, ranging from more traditional tariff & non-tariff barriers, to differences in the legal (a possible reference to proposed COGSA '99) and regulatory systems ... still need to be tackled," reads the EC annual report on U.S. barriers to trade & investment. According to the report, U.S. tariff barriers have been substantially reduced in successive rounds of the General Agreement on Tariffs & Trade. But EU exports face "a number of additional customs impediments, such as the customs user fees and the excessive invoicing requirements on importers." The Brussels agency criticized "the discriminatory nature" of the U.S. Harbor Maintenance Tax, still collected on imports, and the proposed new Harbor Service Fee. For air transport, the EC said that it has concerns over U.S. air security regulations & foreign ownership restrictions in air transport. Concerning maritime transport, the EC mentioned U.S.-flag restrictions on domestic shipping (the Jones Act) and on U.S. federal program shipments. The EC said that it is also "disappointed" that the U.S. did not table an offer at the previous World Trade Negotiations on maritime transport.
• But Where'd The Money Go? ............ as investigators look into whether Int'l aid to Russia was stolen. A U.S. government review released this month expressed concern about ships seen carrying grain out of a Russian port but found no evidence that U.S. food aid was being pilfered. The food aid agreement with the U.S. prohibits Russia from re-exporting any of the commodities & restrains the export of similar commodities. The report comes as controversy deepens over U.S. & Int'l aid to Russia amid suspicions that aid money may have been illegally diverted through U.S. banks. Federal investigators are examining what is believed to be a US$10B money-laundering scheme by Russian gangsters through Bank of New York, and they are trying to determine if Int'l Monetary Fund loans or other aid was involved. The Clinton administration has been put on the defensive for its support for aid to Russia, and top officials say they are seeking a full accounting of the IMF money already lent to Moscow. Indeed, we are shocked, shocked to hear even the suggestion of criminal activity in Russia.
• New Incoterms .......... as the Int'l Chamber of Commerce has issued "Incoterms 2000," a revised version of standard trade definitions. The latest edition takes into account the increased use of intermodal transport & clearly specifies the loading & unloading obligations of buyer & seller. "One of the most frequent queries we received about the old version (was) on the allocation of terminal handling charges under FCA (Free Carrier)," said the Int'l Chamber of Commerce. Revised definitions for the FAS (Free Alongside Ship) & DEQ (Delivered Ex Quay) Incoterms reverse the obligation of customs clearance. Under FAS, the seller will now have to clear the goods for export. Under DEQ, the buyer will now bear the responsibility for clearing the goods. Incoterms are a basic reference for sales contracts, widely used by traders across the world. The Int'l Chamber of Commerce said that the Incoterms 2000 should now be incorporated into contracts that are effective from Jan. 1, 2000. Incoterms 1990 remain valid until the end of the year.

  After this date, the new (and some old) Incoterms are:

  • EXW (Ex Works); FCA (Free Carrier); FAS (Free Alongside Ship);
  • FOB (Free On Board); CFR (Cost & Freight);
  • CIF (Cost, Insurance & Freight);
  • CPT (Carriage Paid To);
  • CIP (Carriage & Insurance Paid to);
  • DAF (Delivered At Frontier);
  • DES (Delivered Ex Ship);
  • DEQ (Delivered Ex Quay);
  • DDU (Delivered Duty Unpaid);
  • DDU (Delivered Duty Paid).

  The new Incoterms abbreviations are the same in the latest revision as in 1990, but their definitions have changed & the reference to "duty paid" for Delivered Ex Quay has been removed.

• ISO 9000 To Debut ............ as a Journal of Commerce article reports that a final version of the revised Int'l Organization for Standardization (ISO) 9000 standards series (Int'l quality assurance standards) should be available this month. According to the article, once approval is given, which is pretty much a certainty, the ISO 9000 revisions will be incorporated into a draft Int'l standard and publication will be sometime in fall 2000.
• A Chinese Panama Canal? ............ as Panamanian officials have dismissed American fears that a Hong Kong-based company managing Panama Canal ports will give China control over the waterway after the U.S. departs. Two years ago, Hutchison Whampoa Ltd., known here as the Panama Port Co., won a 20-year concession to control the access ports at the Pacific & Atlantic entrances to the Canal. U.S. Senate Majority leader Trent Lott, R-Miss., has said that will give Beijing undue influence over the canal's operation. He has requested an investigation by the Dept. of Defense. The Canal Commission, a U.S. agency, is being turned over to the Panamanians when the U.S. ends its administrative control & military protection of the waterway in Dec. 31. Panama is obligated to maintain the Canal open to all traffic. China is the 3rd largest user of the Canal. Under the U.S.-Panama Canal Treaties, the U.S. retains the right to intervene in case of a serious threat to the Canal.
• Been To The Panama Canal Recently? ........... as we often forget that there are great adventures out there, like watching major ships transiting the famous Miaflores Locks at the Panama Canal, on live streaming video. We often watch the huge container vessels & navy ships drop down/rise in the locks for their transit to/from the Atlantic to the Pacific on live, web T.V. The 24 & 7 show is even better at night, as the major vessels move under gigantic flood lights. Visit our TRANS-CAMS today, and look under "Canals & Locks"! http://www.cargolaw.com/cameras.html#Canals_Locks
• UPS Ships The Money .......... as United Parcel Service has deposited approximately US$1.8B into a U.S. Internal Revenue Service account for payment of back taxes, penalties & interest in connection with an offshore insurance transfer pricing case, officials familiar with the case said. Although the company may still appeal the ruling in U.S. Tax Court, UPS apparently made the payment in an effort to stop interest from accumulating in the dispute that goes back to 1983. Read the full story in The Cargo Letter [343].
• 1999 FIATA Approaches .......... as Christopher Gillespie has been nominated to succeed Abdelmalek Dahmani as president of the Int'l Federation of Freight Forwarders Assns. Gillespie is the owner of Canadian freight forwarder Gillespie-Munro Inc., & is a member of the board of FIATA. He is expected to be formally elected president at the forthcoming annual Congress of FIATA in Oct. 22-26 in Dubai. Besides the election, delegates from 151 countries from the national & local FIATA organizations will discuss ocean freight, air freight & customs issues. For information on the annual meeting, contact AMS International in Dubai: +971-4-59-95-88; fax +971-4-59-95-89.
• Moammar Wants You .......... as the Associated Press reports that Libyan leader Moammar Gadhafi invited foreigners this month to invest in his socialist country & assured them their businesses would be protected "by law". ``You are welcome to invest in Libya,'' Gadhafi said during a surprise appearance at an investment conference in Tripoli. ``We have laws that protect investments,'' said Gadhafi, who was dressed in a Western-style suit & a dark shirt. ``We are not pirates or rebels or terrorists.'' It was the 1st such meeting in Libya in 30 years. Int'l sanctions were lifted in April after Libya handed over 2 suspects in the 1988 bombing of Pan Am Flight 103. The Libyan men will now go on trial for being "pirates, rebels and terrorists." Gadhafi warned he would not allow investors to pursue the ``exploitative'' strategies, which we assume will include blowing up Int'l airliners. In recent weeks, Libya has been actively pursuing European investment, as delegations have traveled to Europe to promote their country as a tourist destination. Room availability is expected to be quite high. On the domestic front, Gadhafi is said to still rule with an iron grip. He recently directed a 5 hour parade celebrating his 30 years in power. He appoints all military officers & government officials down to the junior level. High-ranking officers are retired young, before they can become a threat, usually with enough money to open boutiques or restaurants. Opposition occasionally surfaces. Several coup attempts have been reported. Despite Gadhafi's penchant for changing residences often and making sure no one knows when or where he will be, there have been close calls. He reportedly was shot in the leg last year, and still uses a crutch.
• U.S. Demands Genetic Ban Be Lifted ........... as the Washington Post reports that Under Secretary of Commerce for Int'l Trade David Aaron stated on Sept. 14, 1999 that the U.S. is losing patience with the European Union's resistance to genetically modified crops and decade-old ban on U.S. hormone-treated beef, which, if not resolved by the new European Commission, may disrupt World Trade Organization (WTO) trade talks later in 1999.
• U.S. To Trade With Single Voice ........... as the Treasury Dept. said it will give U.S. Customs the responsibility to develop a single electronic link to all government agencies requiring access to trade data. The Int'l Trade Data System (ITDS) is designed to operate as a switchboard to distribute shipment information to any of more than 100 government agencies. ITDS has been in development for the past 2 years. The multi-agency link promises to change the way import & export data is processed with the government. But many questions have emerged among industry & government officials in recent months about how the system would be managed & funded. The controversy was compounded by Customs' efforts to develop its future umbrella system, the Automated Commercial Environment. Both systems are competing for funds from Congress. Treasury, which chairs the ITDS board, said it would be easier to seek funding if both systems initiatives worked together.
• Invoice Squabble .......... as a Journal of Commerce article has said that Customs' recently proposed rule to require importers to provide on each invoice a list of all trademarks appearing on imported merchandise & its packaging is "going much further than is appropriate." The article cites another industry source as stating that these proposed requirements could have an enormous impact because few invoices specify trademarks and many goods carry them. The article notes that the proposed requirements also opens the door to penalties for importers not adhering to them.
• Central American Free Trade ............. as according to the Journal of Commerce, Chile will sign a free-trade agreement with Costa Rica, El Salvador, Honduras, Guatemala, and Nicaragua on October 25, 1999, which will open markets to capital goods from all signatory countries, establish customs & antidumping procedures, etc. CAFTA?
• Vietnam Cuts "Red" Tape ............ as it's trade ministry has cut red tape for foreign exporters in a bid to increase trade & investment. Effective Sept. 16, foreign-backed enterprises will be able to export without having to register in advance with the trade ministry, as is the current practice. The move follows fears that Vietnam's complicated administration procedures & unpredictable legal system are keeping potential investors away. Exports in the 1st 8 months of this year reached US$7.2B, a growth of 15%.
• Columbia & The Green Brets At War ......... as more than 200 U.S. Special Forces troops are now in the besieged So. American country to assist local forces in the war on drugs. Cocaine production in Columbia has almost doubled since 1996, along with bombings, murders & kidnappings. Why? Former Communist, antigovernment terrorists who are no longer supported by such pals as Moscow or Havana, have joined forces with the Colombian drug cartels. Together, these forces are said to have more resources than the Colombian Army. The Green Brets are providing special training for Colombian forces, including badly needed direction in the area of human rights for citizens of the country & proper prisoner handling. There is concern by some that current U.S. surveillance flights in aid of Colombian forces could lead to what is called "another Viet Nam." There is, however, no real comparison. Columbia needs the help.
• Aussies Close The Door .......... as Australian dock workers have banned work on Indonesian cargo ships at Australian ports because of violence in the bloodied territory of East Timor. The union had stopped unloading all cargo and ships from Indonesia because of the Indonesian government's role in massacres in East Timor. The nationwide ban has support of Australia's umbrella union body, the Australian Council of Trade Unions (ACTU). Expect delays.
• Hail To The Chief Expeditor ............ as on 15 Sept. Expeditors International of Washington, Inc. announced the appointment of Glenn M. Alger to the office of President effective immediately. The promotion of Alger from Exec. V.P. for North America fills the vacancy caused by the May 1999 retirement of another company founder, Kevin M. Walsh. Alger began his career with Expeditors in July 1981 when he & Peter Rose opened the San Francisco office for Expeditors. While in SFO, Alger held the positions of Regional Mgr. & V.P. He moved to the corporate office in 1992 as a Sr. V.P. & had been promoted to his current position in 1997. The company now has 148 offices & 12 Int'l service centers on 6 continents.
• GeoLogistics Rushes The Net ......... as it has set up an operating unit called HomeDirect USA to market integrated, 3rd party residential delivery & logistics services to retailers & Internet marketers. HomeDirect USA will operate as a separate division of GeoLogistics Network Solutions, which formerly operated under the name Bekins High Value Products Worldwide Logistics. HomeDirect says it will provide delivery to any home in the U.S., plus warehousing, inventory management, assembly, weekend deliveries & marketing services. The move into home delivery by GeoLogistics comes as experts are predicting the market will grow significantly in coming years as Internet retailing expands.
• Frans Mass Gets HIM ............ as the European transport & forwarding group of The Netherlands, will buy the logistic activities of HIM Furness, with distribution centers in the Benelux, France & Britain, as well as branches of Furness in the USA & Taiwan. In all, a net turnover of EUR 38 million is involved, achieved with 500 employees. For Frans Maas this is a major expansion of its current 153 branches in 23 countries.
• Danzas Gets Ireland .......... as it has filled the final gap in its European network by acquiring Irish logistics firm Meadowsfreight, hence strengthening its position in European land transport. Danzas has acquired all shares of the company from Danish DFDS. Danzas has worked together with Meadowsfreight for the last 25 years. Following the acquisition of Nedlloyd ETD & acquisition of the majority of ASG, there are those who say that expansion to Ireland enables Danzas to offer its customers the broadest network density in Europe.
• WorldPoint Logistics Gets Expedited ............. as it has acquired "Corporate Express Delivery Systems - Expedited Inc." ("Expedited"), Dallas, a large time-definite transportation company with 930 employees & annual sales of US$75M. WorldPoint, a Seattle-area-based logistics holding company, will operate the business as "Expedited." The purchase price was not disclosed. Since 1998 WorldPoint has purchased U.S. Shippers, Edmonds, WA, an intermodal marketing company; Alpha Int'l, a broker - forwarder based in NY; & President Container Lines Ltd., an ocean forwarder.
• U.S. Mail Builds Internationally ........... as Oakland, San Francisco & Los Angeles will be the homes of 3 new Postal Service Int'l mail processing plants that will open in California during year 2000. The 1st plant to open will be the LAX Int'l Service Center (ISC), located in Carson about 14 miles south of LAX. Mail processed at the centers will enjoy direct transportation from the centers to Int'l cargo facilities, thus allowing these dispatches to bypass processing at the AirMail Centers.
• UK Shippers Demand Cheaper Roads ............ as British shippers have launched a publicity campaign aimed at changing the UK road transport tax policy. The shippers organization Freight Transport Assn. and its 12,000 members head the move which targets high diesel taxes. According to the FTA fuel is 40% cheaper in France, where the main competitors in trans Channel transport are working. Also annual road tax is much more expensive in the UK, about 12 times the tax rate in France. Visit the Freight Transport Assn.: http://www.fta.org.uk/
• Flying Carpets Flying ......... as the Iran Daily has reports that Trade Minister Mohammad Shariatmadari said carpets would constitute a full 17.9% of non-oil exports under Iran's third 5 year development plan (2000-2005). He said non-oil exports & tourism would generate some US$42B during the 5 years. That's a lot of carpets!
• French Rail Purchase? ......... as French state railways SNCF is poised to make a large acquisition in continental Europe, company chairman Louis Gallois said in a radio interview on 11 Sept. Candidates are said to include the freight activities of Polish State Railways (PKP).
• But No Swedish Rail Sale ......... as Swedish government said on 20 Aug. that privatization of the state railway (SJ) was not on the agenda, extinguishing a furor sparked by the prospect of foreign owners dividing up the much-loved network.
• North American Van Gets Allied Van............ as British logistics group NFC Plc has sold its home-moving business, Allied Pickfords (Allied Van Lines), to the owner of U.S. rival North American Van Lines for US$450M, in a deal that will create the world's largest mover. The sale will give NFC US$400M in cash & US$25M of preferred stock and leave the London-based group with a 20% stake in the combined business. North American Van Lines, owner New York private equity firm Clayton, Dubilier & Rice Inc, will be majority owner of the newly merged business, which will have revenues of over US$2.0B & operate in 36 countries. Pickfords, which traces its history to a transport company founded in England by James Pickford in 1756, is well entrenched in both Britain & the U.S., where it is the only significant player beside North American Van Lines.
• Alameda Corridor Gets Cash Czar ........... as the public agency building the giant L.A. rail cargo expressway has hired W. Dean Martin as chief financial officer. With more than 20 years' experience in financial management, he served as CFO for the Riverside County Transportation Commission since 1995. The US$2.4B project, scheduled for completion in 2002, will speed the flow of cargo & reduce traffic congestion by eliminating conflicts at more than 200 street-level railroad crossings. The posting is not expected to impact Dean's singing career.
• Teamsters Are Cash Czars ........... as there are 142 Teamster union officials who earned more than $100,000 last year despite the union's dire financial condition. That's an increase from 132 officials in the "$100,000 Club" in 1997. Chicago-area Teamsters ranked 1-2-3 in the list with Frank Wsol leading the list for the 2nd straight year. Still, the number of Teamsters in the US$100,000 Club is down from an all-time high of 191 members in 1991, the year before reform-minded union president Ron Carey took office
• LTL Rates Up ........... as an example, Con-Way Transportation Services has announced that its less-than-truckload (LTL) operating components, Con-Way Western Express, Con-Way Central Express & Con-Way Southern Express, will increase their rates and charges by 5.7% effective Monday, Oct. 4, 1999. On 11 Oct. Viking Freight Inc. will follow suit. Consider this across the board.
• S. Africa Y2K Ready ........... as South Africa's Transport Minister Dullah Omar says the country's aviation & shipping industries will ride out any possible glitches caused by the millennium bug. ``I'm confident that we are on course. The essential part of ensuring Y2K readiness is there,'' Omar told Reuters in an interview. ``I can say with confidence that there'll be no problems with regard to air traffic. Also with the ports, we're on course,'' said Omar. He said one example of South Africa's readiness was the recent implementation of a new Belgian-made container handling system named Cosmos.
• China Y2K Warning ...........as China's small & medium-sized logistics companies are ill-prepared for the Y2K problem and will suffer system failures. According to an expert at Shenzhin Shipping Co. Ms Kwong, many logistics firms have simply underestimated the seriousness of the problem. As a result, she warns shipping lines who do not carefully screen their 3rd party contracts for millennium bug compliance may be hit by shutdowns in the delivery chain.
• No Flu At Qingdao ............. as foreign trade in this Shandong province port has increased by more than 9% in the 1st 6 months of this year, at US$3.54B, according to Qingdao Customs' statistics. Exports from the city have risen by 2.8%, bringing in US$1.99B in the 1st half of 1999. In addition, businesses based on foreign funds totaled more than 3%of export value, with over 50% raised from local enterprises.
• Functions & Benefits of the WTO ............ as the Office of the U.S. Trade Representative (USTR) has posted to its Web site documents entitled "America and the World Trade Organization" (WTO) & "The World Trade Organization Works for You", which together provide information on the WTO, an overview of the agenda for future WTO trade negotiations, ways in which the WTO promotes U.S. exports & jobs, etc. http://www.ustr.gov
• Transport Recovery Services Wants $1,522,880,000 ............. as that's about how much believes shippers are owed because of late deliveries. Founded in Omaha, Nebraska in 1998, Transport Recovery Services utilizes patented software to track thousands of UPS, FedEx, RPS, & Airborne packages every hour. Those shipments that arrive late, somewhere between 5-10% of the millions of small packages & letters delivered everyday, result in refund checks for Transport Recovery customers. The major carriers have marketed a money-back guarantee for over 15 years, but they don't want anyone to actually act on it, says TRS. http://www.payusback.com/
• UPS Voted "E" Number One ........... as it has been named the Number One "enterprise networking innovator" on PC Week Magazine's latest Fast Track 100 ranking. The list & a profile of the UPS Global Telecommunications Network are featured in the magazine's September 13 issue. According to PC Week, key indicators of UPS leadership included:
  • UPS' real-time tracking network, featuring a handheld computer (DIAD III) that transmits delivery data & an extensive wireless network fueled by a nationwide alliance of carriers,
  • High-speed networking to large storage devices,
  • A major international upgrade from X.25 private leased lines to public frame relay,
  • UPS' own carrier subsidiary (UPS Telecommunications Inc.), and
  • Significant use of local and wide area networks, gigabit Ethernet, SONET, and ATM technologies. The UPS Global Telecommunications Network, which won a 1997 Computerworld Smithsonian award, uses a combination of telecommunications technologies to provide continuous, immediate access to a broad range of information services, including real-time package tracking & customs clearance. It provides:
    • Voice, data, and imaging communications for nearly 1 million customers, business partners & UPS employees,
    • Collects information on 12 million packages daily,
    • Connects nearly 2,000 operating facilities, and
    • Supports more than 300 UPS systems, including fast-acting Internet services, through which 1 million tracking requests are processed daily.
  http://www.ups.com
• Sky Vision Will See The Crooks ........... as Diversified Auto Technology, a U.S. transport electronic company, will introduce "Sky Vision 2000," its On-Board Anti-Theft camera unit for commercial trailers. The "Sky Vision 2000" will contain a number of strategically located vehicle mounted miniaturized cameras, capable of capturing images in a dark environment as well as daylight. The software will be configured to recognize a theft condition, snap a sequential set of photo images & immediately transmit the images via satellite communication to a central monitoring facility. Should any attempt be made to destroy or tamper with the vehicular mounted VDRS prior to a cargo theft, the software will recognize the attempt & transmit that an emergency condition exists. In addition, high intensity strobe lamps will automatically be engaged to flash upon receiving predetermined instructions. The strobe lamps, capable of being seen at long distances, will produce a "light show" comparable to an outdoor rock concert, alerting law enforcement officials to the possibility of a cargo theft in progress. Sorry, we could not find a web site or E-mail address for this company.
• Mexico Logistics '99 ........... as the Center for Business Intelligence has announced its annual conference which brings together logistics executives from large & small manufactures as well as leading logistics experts & government officials to network & share information. This years event will be on 30 Sept. at San Antonio, TX. For NAFTA's 5th anniversary, government & NAFTA officials such as the Deputy Director of the U.S. Trade Information Center, the Director of the NAFTA Center at U.S. Customs & the Counselor for Business Development, Embassy of Mexico share insights on the successes of the trade bloc, new regulations & new challenges. Companies such as Caterpillar, Michelin Mexico & Dominoes Pizza will give in-depth case studies on their experiences with customs, transport & distribution channels, moving product around Mexico and warehousing strategies. http://www.cbinet.com/
• OWIT 10th Annual Conference Approaches........... as this year's Organization of Women in Int'l Trade event will be held Oct. 3-5 at the Georgetown University Conference Center in Washington, DC. The theme will be "Trade Matters: Trade Policy & Practice in the New Millennium." Featured speakers include Commerce Secty. William Daley, Senator & Presidential Candidate John McCain, Deputy USTR Sue Esserman, Congresswoman Nancy Johnson, and trade experts from Capitol Hill & the private sector. Attending this conference is invaluable for all of us in the field of Int'l trade, and offers the bonus of being able to network with fellow OWIT members from across the U.S. & overseas. http://www.embassy.org/confer.html
• SNAME On You ......... as Baltimore, MD, will the 1999 SNAME Int'l Maritime Exposition. For 2 days, Sept. 30 - Oct. 1, the Baltimore Convention Center will showcase the newest & most innovative technology in the maritime industry. Visit the website. http://www.sname.org
• They Smelled Something Fishy .......... as U.S. Customs Service inspectors at Miami Int'l Airport discovered more than a ton of cocaine hidden in a shipment of fresh seafood from So. America early this month. The stash was concealed in a shipment of grouper, eels & tuna fillets which arrived on an Arrow Air freighter from Guayaquil, Ecuador.
• Spanish Air Heist ........ as an armed gang stole US$3.4M in cash from an armored car company at Malaga airport on 30 Aug. making a clean getaway. A security guard was pistol-whipped in the early morning heist on an Ausysegur company vehicle. Five or 6 men wearing ski masks pulled up to the cargo terminal in a van & fired several shots into the air as 3 Ausysegur guards were lugging sacks of money to a holding area for a flight to Frankfurt via Zurich. The suspects fled in their own van, which was found abandoned near the airport in this city, 325 miles south of Madrid.
• Saudi Smuggling Scoreboard .......... as executions by beheading jumped to at least 72 the number of people put to death in the conservative kingdom so far this year. On 3 Sept. it was a Nigerian woman & an Afghan man for smuggling drugs. On 10 Sept., the total rose to 75 when another Nigerian & Afghan duo were found guilty of smuggling heroin and beheaded. By 17 Sept., the total had reached 79. Some 29 people were executed last year.
• Smuggling Is For The Birds ......... as a drug smuggling effort was foiled when the exhausted courier - a pigeon - landed on an offshore oil platform to rest. The crew of the Norwegian B-11 platform, 190 miles south of Norway, in the North Sea spotted the bird & saw something taped to its legs, the newspaper Verdens Gang reported on 6 Sept. They caught the bird, finding what appeared to be 5 grams of hashish. The bird is now being cared for by the crew. The B-11 platform is part of Norpipe pipeline system that transports natural gas from offshore fields to Germany.
• Had She Ordered One of Those "Special Meals"? ............ as a woman found a rat sitting in her lap during an Air New Zealand flight from Los Angeles this month. The stowaway rodent was 1st spotted aboard the B-767-300 after the plane left LAX on its way to Auckland, via Tahiti. ''The rat was sighted by crew but their attempts to catch it failed when it ran to the rear of the aircraft,'' said an airline spokesman. ''Later in the flight a passenger in business class felt something on her right leg, lifted her blanket and found the rat on her knees.'' The names of the passenger and the rat were not released. Quarantine officials met the plane when it landed at Auckland and conducted a search of the plane including passengers' hand baggage. The rat wasn't found so the plane was quarantined & fumigated. Air NZ said the tourist will be compensated.

2. The Cargo Letter Financial Page

• Air France. UP with a sharp increase in 1st-quarter net result to Euro 144M (US$153M), compared with Euro 8.2M in the same period of 1998. With the raise of it's net result Air France outperformed European competitors, which reported not so good results. But Air France's result was one of the worst of the last years. Air France also had its pilot strike in 1998. Revenues rose 19% to Euro 2.5 billion. Operating income was Euro 153M.
• AP Moller's. DOWN as net results for the 1st half of this year demonstrated a 37% fall, to US$159M, in net income derived from shipping, because of charges due to exchange rate adjustments.
• Atlas Air Inc. UP for its 6th consecutive record quarter at the end of June. The all-cargo carrier reported revenue per block hour of over US$5,800, an all-time record high. Total operating revenue for the second quarter was up a massive 57.5% over the same period last year, reaching $138.6M.
• China Eastern Airlines. UP with US$6.41M in profit to June compared with a US$43.5M loss for the corresponding period last year.
• China National Aviation Co. UP with US$11.5M profits for the 1st 6 months of 1999. The profits mark an increase of more than 50% compared with the same period last year.
• COSCO Pacific Ltd. UP as the Chinese container leasing firm posted an interim profit of US$66.61M for the 6 months, compared with US$66.57 M the same period last year. However turnover fell 0.6% to US$108.44M from US$109.06M.
• FDX Corp., parent of Federal Express. UP with disappointing results for its just-ended quarter. The package delivery company earned US$159M, or 52 cents a share, during the company's 1st quarter ended Aug. 31. In the same 3 month period last year, FDX earned US$149M, or 50 cents a share. Revenues rose to US$4.3B in the latest quarter, improving from US$4.1B a year earlier, while operating income remained level at US$284M.
• Kuehne & Nagel. UP as net income jumped 10% to US$30M in the first half. Operating profit before interest US$46M, 4% higher.
• Lufthansa AG. DOWN with a 56% drop in 1st-half profits. Pre-tax profits for the first 6 months fell to US$313M, including exceptional items.
• P&O Nedlloyd. DOWN despite strong volumes and increased revenue, there was an operating loss of US$18M for the 2nd quarter.
• Pacer Int'l. UP with gross revenues for the 2nd quarter, ending June 25, of US$195.1M, up 44% from the same period last year. Operating income increased by US$8.3M to $11.3M.
• Qantas. UP with a recorded record net profit for the 12-month fiscal period, ending in June, of US$274M, up 38.3% over the year earlier period. The Australian carrier reported a revenue increase of 3.9% to US$8.5B.
• Sabena Air. DOWN as the Belgian carrier reported a disappointing loss of US$148M in the 1st half of 1999, compared with a US$5.7M profit for the year-earlier period. The 1998 profit was the 1st the airline had seen in years. The price of aircraft fuel, the dollar rate & the conflict in Kosovo have affected Sabena's profits along with many of its competitors. However, Sabena's losses were substantially below budget & far exceeded those incurred by other airlines.
• SairLogistics. DOWN as the air cargo subsidiary of airline company SAirGroup, suffered a downturn during the 1st half of 1999 with a reported US$8.6M loss, compared to a profit of $16.4M last year. The carrier's operating revenue was down 3.1% to US$407.6M. Slow business at Swisscargo, SAirLogistics' main operating unit, was the main reason for the decline, said SAirGroup. Swisscargo, which manages the freight capacity of several airlines including Swissair, Sabena & City Bird, saw a 2.9% drop in cargo to 353,085 metric tons during the 1st 6 months of 1999.
• Schiphol Group. DOWN with 1st half net profit of US$70M, 9.0% less than for the same period last year. Cargo transport dropped by 1.4% to 579,277 tons.
• Swissair Group. DOWN for the 1st half of 1999, as operating profit declined 29.1% net profit for the period fell 31.5%.
• TNT Post Group NV. UP with a 10.7% rise in 1st half net profit as a strong logistics performance countered a sharp drop in results at its express delivery division. The TPG group, which combines the Dutch post office with courier service, TNT, recorded net profit of US$191.7M.
• Yangming Marine Transport. DOWN with a dramatic drop in net profits for the 1st half of 1999 to US$5.4M, down from US$43M in the year-earlier period. A company spokesman said Yang-ming will recover in the 2nd half of the year and is expected to achieve its budgeted US$55M net profit target for 1999. The company expects higher profits as a result of recent rate increases on eastbound Pacific & westbound Asia/Europe rates.

OUR "B" Section: FF World Air News

3. Freight Forwarder World Air Briefs

• ValuJet Lessons Slow To Pay Off ......... as dangerous goods are still making their way on board U.S. airliners. The fiery ValuJet crash that killed 110 people in the Everglades was blamed on oxygen generators carried in cargo. Now banned on passenger airlines, the generators have flown or been intercepted at least 20 times since the crash. The biggest industry change since the ValuJet crash was a requirement proposed by the FAA more than a year later to add fire detection & suppression equipment to old cargo holds by 2001. However, forms filed by the industry show only 11% of the nation's fleet has been converted, halfway to the deadline. On the plus side, a new force of 140 inspectors & lawyers work exclusively on hazmat enforcement, shippers are under scrutiny for the 1st time, & unprecedented criminal charges over the ValuJet crash riveted the industry in July. Overall, the amount of fines proposed by the FAA for hazmat violations are up from US$2.3M in 1994 to US$19.6M in 1998. But there often is a gap of 2 years or more between a violation & the FAA's proposed penalty, with the fine amount tending to shrink. Sears, Roebuck & Co. was cited for shipping 100 signal flares with UPS in March 1997. The US$150,000 proposed fine was settled for US$75,000. Fully staffed since the summer of 1997, the new hazmat teams have organized special inspections in 20 cities in addition to routine checks. For every airline inspected, the FAA has set an undisclosed ratio for the number of shippers that also must be checked to attack an obvious problem area - ignorance on the part of people preparing air shipments. ``I talk to shippers every day that don't really know anything about these regulations,'' said our friend Jim Powell of Torrance, Calif., a hazmat training consultant. "It's just something they think their carrier will take care of for them."
• Near Misses Prompt NTSB Warning ............ as on Feb. 6, a FedEx DC-10 & an Air Canada Airbus A-320 almost collided over Lincoln, Neb. The accident was avoided when the Air Canada plane, equipped with collision-avoidance equipment, detected the FedEx plane and plotted out a path out of its course. Then on March 2, another FedEx DC-10 & an American Int'l Airways L-1011 almost collided about 30 miles west of Salina, Kan. Both planes lost contact with air traffic controllers & neither had collision-avoidance systems. Now the National Transportation Safety Board wants the FAA to expand a 1990 order currently requiring collision-avoidance systems on passenger planes also to cover cargo aircraft.
• China Air Falters After Crash ......... as China Development Industrial Bank (CRIB) has once again expressed interest in taking management control over the troubled Taiwan-based China Airlines (CAL), which is to continue with plans of privatization despite this month's crash in Hong Kong which saw company stock value decrease. China Aviation Development Foundation, which owns the airline, made it clear that plans for privatization were vital for the survival of the airline and would not be put on hold. It had proposed divesting 35% of stock before the end of the year, which is considered essential for the improvement of the airlines safety & management. Chang Hung-i, chairman of CAL resigned following the fatal crash of a CAL MD-11 in Hong Kong which killed 2 people and injured 211 other passengers aboard, which flipped and caught fire while attempting to land in heavy winds. Taiwanese officials are calling for more resignations at CAL and in the state transportation dept.
• Ramp Rats Drop Like Flies ............ as U.S. agents arrested 15 more Miami airport workers on 9 Sept. in predawn raids connected to Operation Ramp Rats, a huge drug sting against ground staff said by authorities to help smuggle cocaine & heroin through one of the busiest crossroads in the Americas. The latest round of arrests came two weeks after 58 American Airlines employees & food service workers were charged with smuggling what they believed to be cocaine, grenades & guns onto planes at Miami Int'l Airport. Officials said the latest suspects worked not for American Airlines but for 3 ramp services companies -- Evergreen Aviation Ground Logistics Enterprises Inc., Dispatch Services Inc. & American Sales & Management. Agents called the alleged smugglers "brazen" because they continued to smuggle after the Aug. 25 Ramp Rats bust, which was widely publicized and brought a security crackdown at the airport. "They told our undercover agents that the coast was clear for drug smuggling. They were wrong,'' U.S. Customs spokesman Pat Jones said. "It's a combination of arrogance & greed.'' The suspects were charged in complaints filed by prosecutors with smuggling phony cocaine. They were paid US$2,000 for each kilo they moved on/off planes and were usually smuggling 5 kilos at a time, agents said. The sting, dubbed ICON for "internal conspiracy," was a spinoff of Operation Ramp Rats, which targeted ramp workers employed by American Airlines and other companies at MIA, the 12th busiest in the world with 34 million passengers a year and 1,200 daily flights. Prosecutors said the Ramp Rats sting turned up glaring security lapses at the airport, which has long been a prime target of South American cartels moving cocaine & other drugs to their No. American distribution hub in Miami. Among the 58 people charged in the Aug. 25 roundup were 30 American Airlines workers, 13 employees of LSG Sky Chefs, a U.S. agriculture inspector, an Immigration and Naturalization Service agent and a Broward County, Florida, sheriff's employee. The others were described as street drug dealers. One of those charged was Jose Toledo, an American Airlines employee who is the son of Puerto Rico's top police officer. One of the incidents that sparked the airport investigation has passed into Miami drug legend. A load of heroin was smuggled onto a plane in coffee packets and was discovered when the crew brewed it and served it to the pilot, who reported his java had a strange flavor. Prosecutors said American Airlines employees flew 300 kg of fake cocaine into Miami aboard flights from Colombia, Bolivia & Ecuador, using their airline passes to get the drugs onto the planes. But the UK also has it's own problem, as on 18 Aug., four British Airways baggage handlers at London's Heathrow airport & two other men were charged with drugs smuggling this month after Customs officials said they had smashed a ring that had brought in heroin from Pakistan. And on 20 Aug., German police said that at least 25 border guards based in the western town of Frankfurt were being investigated on suspicion of drug-trafficking. Stay tuned.
• Weather Delays ........ as on account of Hurricane Floyd, cocaine delays of up to 36 hours were expected at MIA.
• TIACA Expo Approaches ........... as the 20th Int'l Air Cargo Forum & Exposition of the Int'l Air Cargo Association (TIACA) will be held Sept. 26 - 29, 2000, at the Marriott Wardman Park Hotel & Conference/Exposition Center, Washington, D.C. This year's theme is “Dawn of the Air Cargo Century”. http://www.tiaca.org
• BCAA Outraged.......... as the British Cargo Airline Alliiance says the UK government has "sold out" its own cargo industry on 25 Aug. by grating FedEx "fifth freedom rights" to load freight at Pretwick & Stansted airports for delivery to third countries, but without reciprocal rights for Britsh carriers in the U.S. Said Chistopher Foyle of Air Foyle, "If the Britsh Government is willing to give way on a fundamental case of this kind then we must seek protection from the European Commission." BCAA accounts for 96% of the UK independent air cargo sector.
• New London Airport ............... as the World War II airfield of Manston, where Britain designed & tested the famous ``bouncing bomb'', has been bought by Wiggins, a property company which will turn it into a new London airport. With London's airports congested & demand soaring, Manston has a bright future. The main constraint for passenger flights is finding room amid cargo flights at full capacity. Much incoming cargo is fresh food from Africa. Exports on a typical day can include aid for Kosovo & crates of the sex-aid drug Viagra, which is made nearby. Wiggins said last month it expected improvements this year to boost annual cargo capacity to around 200,000 tons. The airport is not far from the Port of Dover and is expected to serve London despite being 65 miles away, along with Heathrow, Gatwick, Luton & Stansted.
• Relations Get Chilly At Polar ............ As the Air Line Pilots Assn., Int'l (ALA), made public on 10 Sept. for the 1st time that the cockpit crewmembers of Polar Air Cargo were 10 days into a 30-day cooling off period over stalled contract talks. "It's become abundantly clear to us that the company just doesn't care whether or not we reach an agreement. In fact, during the eleventh-hour meetings held at the National Mediation Board in Washington, Polar management did not even respond to the comprehensive proposal offered by our negotiating committee. After October 1, we will be released by the Board to pursue self-help measures," said Capt. Dennis Brooks, chair of the Polar Air Cargo crew Master Exec. Council, a unit of ALPA. Last July, ALPA allocated US$2M to Polar crewmembers as a war chest. Negotiations for the carrier had been ongoing since April 1997. Citing the lack of progress, the crewmembers filed for mediation with the National Mediation Board in April 1998. After 15 months of mediated talks, only non-economic issues were settled, with 13 key sections of the contract still open and unresolved. News of the imposition of the 30-day cooling off period was withheld by mutual agreement to a news blackout. A strike could occur as early as 2 Oct. 1999. A strike would be devastating to Polar, which desperately needs to upgrade an aging fleet of early version B747 freighters. The airline suffered heavy financial losses due to the poor economic conditions in Asia last year.
• Delta Goes Next .......... as Delta Air Lines' 9,200 pilots, also represented by ALPA have now begun negotiations for a new contract. The pilots are seeking increases in compensation, including the elimination of 2 tier wage structures in place for pilots in 1st 3 years of employment and those flying the Orlando-based Delta Express operation. 'We are seeking pay rates that will fairly compensate the Delta pilots for their level of professionalism, expertise & productivity,' said a spokesman. 'We are living with pay rates negotiated in 1991 that have not been adjusted for inflation and lag the wages of pilots at other major airlines, in some cases by more than 15%.' In other Delta news, its CFO, Warren Jenson, will be the new CFO of Internet retailer Amazon.com.
• Shanghai's 2nd Airport Opens ........... as Pudong has opened following the safe landing of test flights this month. Among these, volunteers took part in the most recent scheduled flight, a Boeing 767 carrying 259 passengers, to Kunming, Yunnan Province. The same B-767 made the new airport's virgin flight from Pudong to Kunming, on Sept. 16, marking the official opening of operations. The airport will serve cargo & passengers, with Shanghai Airlines offering 4 flights daily to Beijing & Guangzhou. The airfield, 18 miles southeast of the Shanghai city center, is part of efforts to develop the city's eastern Pudong district as China's financial capital. After decades of communist-era neglect, Shanghai also has built a new library, museum, opera house, stock exchange, subway lines, hospitals & expressways and is planning a science museum. The airport & its sleek glass terminal are capable of handling 20 million passengers & 750,000 tons of cargo a year. That is about one-quarter the capacity of the city's main Shanghai Hongqiao Int'l Airport. The new facility could face a shortage of passengers for some time. Pudong's new skyscrapers have remained largely empty so far, and most Shanghai residents live in the western part of the city, closer to the old airport.
• Marriage Minded In Brazil .......... as airlines Varig, Transbrazil, Vasp & Tam are discussing the possibility of merger. Officials say the Brazilian market cannot support 4 Int'l companies. Varig, which has the strongest presence in the market, would "still exist" after the measure. Vasp's president Wagner Canhedo also confirmed that the carrier was open to the idea of a merger.
• LanChile Glows .......... as it announced on 14 Sept. that the U.S. Dept. of Transportation (DOT) officially notified LanChile that it approves the alliance between LanChile & American Airlines that began in September 1997. In order for the alliance to officially come into effect, Chile & U.S. must also sign an Open Skies agreement. This is expected to occur within the next 2 months. As a result of this agreement, LanChile will be able to service a greater number of destination cities in the U.S. & the Caribbean. This includes an improved level of service in the Chilean cities of Santiago, Antofagasta, Punta Arenas, Puerto Montt, & Easter Island.
• EVA IPO? .......... as the Taiwan carrier EVA Air may be preparing for an initial public stock offering in Taiwan, in an effort to raise money for future expansion.
• Air Canada Grab Scrap Continues .............. as Canadian investment firm Onex Corp has countered Air Canada's plans to stall its unsolicited bid for the airline by asking an Ontario Judge to order a shareholders meeting on 8 Nov. Air Canada's management board had earlier delayed the multi-billion dollar bid until a meeting on 7 January 2000, amid concerns that American Airlines' parent, AMR, would gain dominant control of the airline under Onex's proposed merger. Air Canada's pilot union opposes the Onex move to buy Air Canada and merge it with weaker rival Canadian Airlines Int'l, which has lost money in 9 of the last 10 years. The pilots are concerned that the merger will result in a new airline loaded with debt & lead to far more staff cuts than estimated by Onex. In fear of losing their jobs, Air Canada's pilots have engaged financial advisors to deliberate a possible buyout of the airline. Today Air Canada announced net earnings of US$81M, up 23%, from July-August.
• India Ready? ............ as the government express confidence on 10 Sept. that it's air the industry is prepared for the Year 2000 (Y2K) computer bug, and assured there would be normal routing over Indian airspace when the new millennium dawns. ``We are fully confident there will be no problem,'' the Director-General of Civil Aviation, H.S. Khola, told a conference. On being asked about reports of Int'l airlines planning alternate routes to avoid India when crossing to Europe from other parts of Asia, Khola said: ``Normal routes will be maintained (over India).'' Vendor certification & in-house testing on most vital communication, navigation & landing systems was already complete and was currently being examined by external auditors, Khola said. But he added, ``On Sept. 15, we have called a meeting of all the foreign & domestic airlines (on Y2K). If any of them says some action is needed, then we are prepared to take it." They're just going to take everybody's word for it?
• Calling Out The Reserves .......... as Lufthansa Cargo has placed a B-747-200 freighter on reserve deployment to combat the growing number of air traffic delays at Europe's airports. The airline said that traffic delays in Europe "have reached a pitch that is also affecting the punctuality & reliability of Lufthansa Cargo flights." The reserve freighter will be used as needed.
• AA & EVA To Share ............. as the airlines have announced a marketing alliance that includes codesharing on routes between the U.S. & Taiwan, to begin as soon as possible after necessary governmental approvals. Under the arrangement, American will place its "AA" designator code on EVA's flights between Taipei & Honolulu, Los Angeles, San Francisco & Seattle. In the 2nd phase of implementation, EVA will place its "BR" designator code on selected connecting flights operated by American between EVA's US gateways and Austin, Boston, Chicago, Dallas/Fort Worth, Miami, New York & Washington, DC. EVA operates 41 weekly roundtrips between Taipei & the U.S.
• UPS Gets An Education ............ as College students from the Philadelphia area could be starting the semester nearly debt-free thanks to United Parcel Service's newly launched education & employment incentive, "Earn & Learn." UPS's Philadelphia Air hub will begin in the test program whereby part-time UPS employees are eligible for the program the day they are hired and qualify for US$3,000 in education assistance per calendar year with a lifetime maximum of US$15,000. In addition, they qualify for loans of US$2,000 per calendar year with a lifetime maximum of US$8,000, which UPS will pay back as long as the student remains employed at UPS while they are attending college. Program benefits also cover approved mandatory fees & the cost of books and software up to US$65 per class. Benefits increase when a part-time employee is promoted. http://www.upsjobs.com
• BA Won't Perish ........... as British Airways is set to further its expansion into the perishables trade with the opening of a 69,000 square foot freight handling facility at London's Heathrow airport. The new perishables facility, located at Heathrow's Hattan Cross Business Park, is designed to handle 100,000 metric tons of freight a year. BA is investing US$24M to gain a profitable share of the perishables industry, which it says generates some $71M a year.
• Sky Reefer ........... as DHL has launched a perishables shipping service that uses refrigerant packets in place of dry ice. The newly patented, insulated packages will be used in the "ThermoExpress" service and can be adjusted to meet different temperature requirements depending on the goods shipped. By replacing dry ice, a classified hazardous material, DHL says ThermoExpress will reduce paperwork and lower costs for perishables shippers.
• Aerofloral Takes A Closer Look ........... as a US$3.5M pallet scanner comes on line at Miami Int'l Airport, It is a System 2000 type x-ray machine that is capable of examining a Boeing 747 pallet in under half a minute. The carrier, which transports Colombian flowers as well as freight between the U.S. & So. America, is using the equipment on all imported cargo.
• DHL Goes For Five In Canada ........... as it has opened its 5th Canadian gateway facility, joining existing operations in Montreal, Toronto, Vancouver & Calgary.
• Hauling The Mail ............. as the alliance between Delta Air & Air France Cargo will allow U.S. Postal Service mail to be carried on Air France Trans-Atlantic flights, which number 31 per week, from Washington, DC, Chicago, Los Angeles & San Francisco. Meanwhile, mail from France will receive the same rights on Delta's flights between Nice & New York.
• Southwest R"E"models Site .......... as its cargo customers may now track their shipments via the net. What's new is that the system allows customers to follow the progress of their shipment from drop off to the signature of the person who picked it up. Southwest was the first airline with a web site. Don't forget Southwest's weekly "Click 'n Save Internet Specials", discounted fares to destinations from each city Southwest serves.
  http://www.swacargo.com 
  http://www.southwest.com
• A Russian B-767F? ............ as Boeing & Russian aviation company, Ilyushin, are revising plans for a joint venture to convert passenger aircraft into freighters. The plan focuses upon converting a single aircraft, the Boeing 767, which number around 700 globally. The model has along range capability and a freight capacity up to 80 tons.
• Air France To Help Iraq? ............ as the official Iraqi news agency INA quoted a senior Air France official as saying his company was ready to provide means to maintain Iraqi Airways planes grounded since the 1991 Gulf War. The company is said ready to train Iraqi Airways staff & make available the means to maintain civilian Iraqi planes. Iraq's civilian fleet includes Boeing 747s. It is understood that Air France wishes to resume civilian flights between Iraq & France. Iraq is under stringent U.N. trade sanctions which bar Int'l flights to/from the country. Iraqi civil airliners are grounded in Amman, Tunis & possibly other capitals to which they were sent before Iraq came under attack during the Gulf War. However, in related news, Britain accused Baghdad on 18 Aug. of callous disregard for the suffering of its own people after a ship was impounded as it sailed from Iraq with a cargo of baby food & bottles. A Foreign Office spokesman said the shipment's discovery showed up the "hollow propaganda"' of the Iraqi government, which says 9 years of economic sanctions have crippled its economy & caused the deaths of more than a million Iraqis. In response, Iraqi Trade Minister Mohammed Mehdi Saleh said the cargo of baby feeders seized by Kuwait this week had been turned back by Iraqi authorities because it failed to meet health standards.
• Gender Change............ as Boeing intends to convert 757 & 767 planes to freighters by the end of this year. Boeing wants to grasp a big part of the estimated US$15B market for converted freighters between 1999 & 2019.
• LAX Goes Dark .......... as failure of underground power cables plunged travelers and many cargo operations into darkness on Sun., 12 Sept. Power was restored by morning.
• Hold Your Breath ........ as Russia's Sukhoi aircraft builder, best known for its fighter jets, plans to begin flight tests in September of a new passenger plane distinguished by a twin-fuselage design. The twin-engine plane, the SU-80, is Sukhoi's 1st passenger plane & will soon be delivered to Moscow's Zhukovsky airfield for the tests. It has been designed to replace aging AN-24, AN-26, YAK-40 aircraft & similar short-range planes that have already reached 70% of their life spans. The plane can carry 23 passengers or 3.5 tons of cargo up to 1,800 miles at a cruising speed of 540 kilometers per hour. The prototype is powered by General Electric engines.
• U.S. A Hive of Activity ........... as U.S. air traffic control deals with 56,000 flights daily.
• Volumes. Kuwait Int'l Airport (its only Int'l airport) handled 8.3% less cargo last month compared to August 1998, with 9,340 tons of cargo -- 6,600 tons in & 2,740 out. American Air handled 177,068 cargo ton miles in August, up 12.5 %. For Northwest, cargo ton miles of 135,341 were up 44.1%

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

OUR "C" Section: FF World Ocean News

4. Freight Forwarder World Ocean Briefs

• Major Industry Report For The 21st Century ............. as U.S. Secretary of Transportation, Rodney Slater, has issued, "An Assessment of the U.S. Marine Transportation System," which outlines recommendations to meet the growing challenges faced by the country's marine transportation system (MTS). The report responds to a projected increase in waterborne commercial vessel traffic that is expected to double or triple over the next 20 years. Suggestions for dealing with the predicted surge in marine traffic include better operational efficiency & coordination, increased attention to safety, the implementation of information management systems, and the development of finance mechanisms to ensure adequate expansion of seaports & waterways. In addition, the report calls for the setting up of a MTS National Advisory Council to provide a structured approach for non-federal stakeholders wishing to provide input on national-level issues. The report is available on the Internet. http://www.dot.gov/mts
• M/V Ever Decent Is "T-Boned"............ as the fire aboard Evergreen's 4,211 TEU container vessel was finally extinguished a week after her 23 Aug. collision with the Norwegian Cruise Line ship M/V Norwegian Dream in the English Channel, N.E. of Dover. The Panamanian flagged container vessel (52,090 gross), was moving ex Hamburg with a crew of 40, bound for Los Angeles with 3092 containers. The Bahamas passenger vessel M/V NORWEGIAN DREAM (50,764 gross), was on 12 day Baltic Cruise with 1,600 passengers & 800 crew, until the collision in lat 51 26N, long 01 56E. Norwegian Dream sustained major damage to bow & bridge and berthed at Dover Aug 24, reporting 28 injuries. At least 5 containers where thrown on the cruise ship deck by the tremendous force while others went overboard. The fires were fueled by more than 40 of the cargo ship's containers stowed with ``hazardous'' materials, including paint & paint hardener. It currently appears that Norwegian Dream struck Ever Decent broadside, in the port side fore middle hold. This said, the collision occurred during clear weather, in a major shipping lane, with operating radars. Expect certain Norwegians to walk the plank. The Ever Decent towed to Zeebrugge after her fires were suppressed. Over a period of six days some 6 ships sprayed a total of a million tons (that's tons) of water onto the Ever Decent's cargo in order to extinguish the fire. The greater part of the cargo on the 52,000 ton vessel remained intact, but perhaps soggy. Ever Decent will resume service in the next few days, following completion of temporary repairs at the German yard Blohm & Voss yard. Evergreen says that the containership has now sailed from Europe toward the U.S., before crossing the transpacific. In Oct., the ship will reach Japan, where complete repairs will be carried out during a dry-docking. General average has been declared on the ship. Most of the 1,800 TEUs on board the ship were unloaded in Zeebrugge. The Ever Decent will carry 300 undamaged containers to the U.S. >>>>>> The contributions of our reader Mike Patterson are appreciated. For more, see our Cargo Damage Dispatches, feature below.
• We Won! .......... as the 51st Emmy Awards at Los Angles on 12 Sept. voted "Horatio Hornblower" as Best Miniseries for 1999. In a T.V. world which does not tend to stress naval history, we are quite proud that a quality series which focused upon duty, honor, country & true maritime adventure might take center stage. The great writer C. S. Forester created the Hornblower character who was portrayed by Gregory Peck in the 1950's epic movie "The Adventures of Capt. Horatio Hornblower." But now there is appreciation for a different type of series, one which took all of us down to the sea and presented both the dangers and the past glories of a lifestyle which is directly responsible for most of our past and much of our present. A synopsis of Horatio Hornblower episodes, and other important material is available at a truly outstanding web site. http://www.hornblowertv.com/index.html
• Industry Not Ship Shape ........... as a Journal of Commerce article cites one private-sector source as stating that the marine industry has been late in reporting on its Year 2000 (Y2K) readiness which has made it difficult to get accurate information with respect to what is happening in this area. The article notes that some companies have been public about their desire to "stay home" on New Year's Eve 1999 and cites one industry official as stating that port officials expect a rise in imports during the last couple of weeks before the New Year in order to avoid January 1, 2000.
• America Gets Bigger ........... as the U.S. government has decided to double the limit at which U.S. laws can be enforced from 12 miles from its coastline to 24 miles. The government hopes to crack down on the dumping of oil by ships off the U.S. coast & to protect U.S. fishermen from competition from Asia & Canada.
• U.S. - China To Keep Talking ........... as a Journal of Commerce article reports that maritime negotiators for both countries will open talks on September 20, 1999 in a first attempt in 13 months to put their shipping relations back on course. The article adds that these negotiations will include discussions on eliminating sanctions that each nation places on the other's ocean carriers & shipping services. Indeed, it is understood that the President of COSCO Line met with the FMC last week in Washington, DC.
• You've Got To Say How Much ............. as U.S. Customs says that confidentiality of freight rates in the Ocean Shipping Reform Act doesn't exclude this information from being reported to the agency. Customs collects freight rate cost from import summaries. That information is then passed on to the Census Bureau for trade statistics purposes. "It's not so much that Customs routinely needs this information," said Don Luther, program officer for Customs in Washington. "The real driver behind this is trade statistics reporting requirements." While rates can be negotiated confidentially between carriers & shippers, the regulations don't prohibit other government agencies from having access to that information. "Importers say they don't mind giving us their rate information," Luther said. "The problem is that they usually pass us this data through a middleman -- a customs broker." The concern wouldn't be confidential information in general, because brokers receive this type of data as part of their routine business activity. But that information may pose a conflict of interest for a broker who is also in the freight forwarding business. Industry officials have suggested a variety of alternatives for submitting this information confidentially to Customs, such as filing freight data to a separate Customs system. Another suggestion has been to use the Automated Commercial System Reconciliation Prototype, which allows importers to pay duties on the estimated value at the time of entry & follow up 12 to 15 months later with a more accurate figure. "None of these are viable options at Customs," Luther said. "For now, we have no other choice but to require data on freight charges at the time the entry summary is filed."
• Rates Hit Bottom ......... as shippers are locking into bargain ocean rates by taking advantage of a buyers' market right now. One consultant says the ocean lines were not well prepared for the ocean shipping reform act that partially deregulated the industry. Market-followers are the worst affected because they no longer can be guided by tariff structures published by the leading lines. The result in some cases are rates that are not compensatory, some industry officials said.
• But India - Pakistan Rates Up .......... as according to a Journal of Commerce article, carriers in the India-Pakistan-Bangladesh-Ceylon Conference, which operates in the trade linking the west coast of India, Pakistan, and Europe, has announced that they will raise rates by US$300 per TEU on October 1, 1999. The article notes that this new rate will be valid for 6 months.
• Repositioning Surcharge ........... as shipping lines have introduced container surcharges to counteract equipment imbalances resulting from surging trade to North America. Carriers say existing rates were not enough to support the additional repositioning costs. Ocean carriers in both the Atlantic & Pacific trades have tabled US$250-per-container surcharges to offset the cost of repositioning the empty boxes back to Europe or Asia. In recent months the booming US economy has led to strong domestic consumption and heavy trade imbalances - creating equipment build up in American ports. Mitsui OSK Lines announced it will introduce a trans-Pacific westbound surcharge of US$250-per-container by October; P&O Nedlloyd will apply a westbound equipment surcharge on its non-conference Europe/Montreal service by mid-October; the Trans-Atlantic Conference Agreement will apply the charge on westbound traffic to the US by next month; the Canadian North Atlantic Westbound West Conference and the Continental Canadian Westbound Freight Conferences have also tabled plans for compensatory tariffs.
• Container Forecast: Bright Star In The East ............ as a recent study by Ocean Shipping Consultants (OSC) contains a positive forecast for S.E. Asian ports, which are predicted to gain more than 20% of the world market by 2012. The report anticipates container volumes to increase by 5.14 million TEU next year, compared to 1998, meaning that volumes, which stood at 27.59 million TEU last year, will go up to 33 million TEU by 2000. OSC continues to predict a hike to 105 million TEU by 2012. China, Hong Kong & Taiwan are predicted to see throughput levels go up by 6.34 million TEU in 2000, compared with the previous year, and climb to a total of 84 million TEU by 2012. While the report suggests that concerns over development of markets in east Asia are not justified, it concluded that port investment in Malaysia was too high, & concluded that this could undermine the local market. The report implies there could be negative development in Japan's supply & demand. For the global market, OSC sees container port throughput rising to 218 million TEU by next year, and up to 491 million TEU by 2012. In No. America, there is an anticipated 3.19 million TEU increase from last year, with forecasts of up to 30 million TEU by 2000 & more than 50 million TEU by 2012. N.W. Europe will witness a hike of up to 57 million TEU by 2012, while the Mediterranean can expect up to 44 million TEU by 2012, according to the report.
• West Coast Labor Peace ........... as the Int'l Longshore & Warehouse Union (ILWU) approved a new 3 year labor contract with the Pacific Maritime Assn. late last month, by a 82.5% margin. The contract, which is retroactive to July 1, covers nearly 10,000 West Coast dockworkers. Key labor gains were made in benefits and pensions, particularly for older retirees. Wages also increased. Marine clerk wage increases for skilled categories were adjusted to provide parity among longshore rates.
• California Charges Will Go Up ............ as a 10% hike in wharfage rates, approved by the California Assn. of Port Authorities (CAPA), will be effective Nov. 1, 1999. The increase will apply to fees paid by ocean carriers moving cargo in & out of California's largest public ports including Los Angeles, Long Beach & Oakland. The growth in cargo volume has increased port capital spending and the rate increase is in line with this. Since 1994, California ports have invested more than US$2.5B in new & expanded facilities and expect to inject a further US$2B over the next 5 years. Volumes at California's 3 largest ports have soared by an average of 500% since 1980. Watch out, as East Coast charges become more attractive.
• China Declares War On Pirates? ......... as it will not allow its ports to become a haven for ship hijackers & their stolen goods. According to the Int'l Maritime Organization, 51% of the 47 piracy cases reported worldwide between April & June occurred in Southeast Asian waters. The high number of incidents, which were particularly severe along China's southeastern waters, provoked strong condemnation from the Int'l community, which accused China of failing to arrest or prosecute pirates. China denied the claims, saying it has always maintained a policy of resolute action against piracy. In 1991, China signed the U.N. Convention on Unlawful Acts Against the Safety of Maritime Navigation, followed by the Convention on the Law of the Sea in 1996. However, it appears that this has not been enough to prevent the rising tide of piracy in its waters. According to officials, modern-day pirates have infiltrated official departments enabling them to pass inside information to gang members. Hijacking gangs are also carrying more advanced weapons than were previously employed, leaving unarmed cargo ships particularly vulnerable. In one incident, an entire fleet of cargo ships was hijacked, leaving 23 Chinese crew members dead. Thirty-four other crew members & 2 cargo ships also went missing. To stem growing fears, China's maritime police force has set up sea patrols to safeguard passing ships, and investigations into piracy cases have been stepped up. According to officers, 5 major cases have been cracked in the last year. In June, police detained 24 suspects aboard two hijacked boats in waters off the Island of Nan'ao of Shantou. To read the other side of this controversy, where China is on trial, see The Cargo Letter [343].
• No. 1 Gets Competition ........... as Singapore, now the busiest container port in the world, will now contend with the new & nearby Tanjung Pelepas container port in Johr, Malaysia. The terminal will begin operation in January next year and is reported to be offering dedicated berths to carriers. The port is expected to reach a capacity of 3.8 million TEU by 2001.
• Rumble On The Danube ............ as Romania will ban Yugoslav ships from its Black Sea-Danube canal as long as Belgrade obstructs Danube River shipping, Transport Minister Traian Basescu said on 10 Sept. But Basescu made clear the ban was limited to the canal, a waterway under sole Romanian jurisdiction -- a shift from previous statements that Yugoslav vessels would be barred from all Romanian waters. The Romanian ban was prompted by Belgrade's demands that Romanian, Bulgarian & Ukrainian ships secure permits to use Yugoslav waters. Basescu made clear the Yugoslav ban applied only to the strategic Franz Joseph canal on the Danube. The canal bypasses a stretch of the Danube where traffic was halted by the destruction of bridges during the 11-week NATO air campaign. Neighboring Bulgaria also complained of Yugoslav restrictions on Thursday and said it might also retaliate.
• DSR-Senator Says No.......... as it is embroiled in a legal dispute with European courts following refusal to post a guarantee that it will pay a fine to the European Commission. The dispute concerns the US$14M fine imposed by the EC on DSR-Senator, the payment of which was postponed pending the outcome of the Trans-Atlantic Conference Agreement carriers' appeal of the EC decision. The German carrier, owned by Korea's Hanjin Shipping, would not comment on reports that the payment of the fine would endanger its financial state. DSR-Senator, which has lost money for years, has now operated in the black for several months. Still, there are reports that the carrier is on the threshold of bankruptcy.
• "Joint Service Contract" To FMC .......... as Hapag-Lloyd & Columbus Line, are seeking the seal of approval from the U.S. Federal Maritime Commission (FMC) on a unique joint agreement. Under provision of the new Ocean Shipping Reform Act, if the "Connecting Carrier Agreement" is approved, it will create a single service contract for the liner services of the 2 companies, allowing them to sign joint service contracts with common rates & rules. Such an agreement, the 1st of its kind, would give the lines a more competitive edge and offer a more rounded service that could benefit both shippers and carriers, according to a spokesman from the FMC.
• COSCO Shuffles ............ as China Ocean Shipping Company is consolidating in Southeast Asia with major restructuring of its Hong Kong & Singapore operations. Cosco Pacific, based in Hong Kong, will gain a 14-24% stake in Singapore-based Cosco Investment, making it a major shareholder. Meanwhile, Cosco Hong Kong, which controls Cosco Pacific, will take a 49% share in Cosco Holdings, which is also based in Singapore. Under the restructuring, Cosco Hong Kong will effectively take control of Singapore's Cosco operations.
• APL Goes Live .......... as it has introduced live interactive schedules on the Internet, a 1st in the ocean carrier industry. Carriers have traditionally published printed schedules, generally weekly or monthly, or they have posted "static" customer schedules on the Internet on their own or through 3rd party schedule providers. But updates of APL's live schedules are now made on a real-time basis, automatically updating sailing dates and times directly from the company's global logistics routing system ......... just like the airlines. http://www.apl.com
• Ocean Group Buys Dutch ...........as the parent company of MSAS Global Logistics, has acquired Dutch ocean forwarder Malenstein Rotterdam BV. Malenstein, with sales of US$14.5M, offers ocean freight consolidation for shipments to the U.S., ocean freight importing from the Far East, European trucking & warehousing services. A.W. Fenton, a U.S. customs broker acquired by Ocean last year, acts as Malenstein's customs clearance agent & deconsolidator in the U.S..
• Trans-Pacfic Soars Toward Y2K .......... as eastbound traffic has started to grow in double digits since May this year, according to the Hong Kong Liner Shipping Assn. Traffic demand is reported to be especially strong for South China to US, with a buoyant growth of 15%. It is expected that the traditional peak season will be extended towards the end of Oct. this year with companies trying to send their shipments to customers' destinations before 2000. However, with numerous new entrants joining this trade route and the operators' heavier investment in raising total shipping capacity & efficiency, it is estimated that last year's severe shipping space shortage will not happen again this year. Seven more shipping companies have entered the trans-Pacific route this year, effectively increasing the number of players to more than 20. Supply has been said to be more than adequate.
• Hong Kong To Be A Mickey Mouse Operation? ............... as the future of 4 new container terminals planned for it's Lantau Island hangs in the balance amid fears that they could jeopardize talks with the Walt Disney Corp. over a proposed theme park on the island. Disney has already expressed concerns that 3 existing power plant chimneys on Lantau will spoil the view if plans to build a Disney theme park go ahead. Container terminals 10, 11, 12 & 13 had initially been planned at locations close enough to the site earmarked for Disney's proposed park to make them a potential eyesore. But in August, government officials announced plans for container terminals 10 & 11 to be relocated to the West to avoid upsetting talks with Disney. This idea has since been called "Goofy" and scrapped because of the slump in growth of container throughput, but no new site has been proposed. Meanwhile, plans to go ahead with terminals 12 & 13 on sites at Lantau are under serious review.
• Canadian Water Will Stay Home ........... as Fairplay reports that the country intends to veto any plans to export fresh water by tankers from the Great Lakes to thirsty parts of the world. Environment minister David Anderson said the government will present legislation this autumn banning bulk fresh water exports. Anderson said he was acting on a report from the Int'l Joint Commission (IJC) stating that neither Canada nor the U.S. would be violating Int'l trade rules by banning bulk exports. Under Canadian law, the federal government can ban shipments from the Great Lakes and any boundary waters but would have to persuade its provinces to institute similar prohibitions. The IJC said there is not a surplus of water in the Great Lakes to justify bulk exports.
• Bangladeshi Troops To Chittagong .......... as the government has stationed 200 troops in the port of Chittagong in a bid to curb the incidents of theft, piracy & labor troubles which have recently plagued the port, which by far the country's largest. Looters set fire to the 8,197 dwt Indonesian bulker M/V Karya Sentosa last week after it was abandoned by its crew after running aground in the port on September 1. A detachment of 50 police was unable to stop people looting the cargo & valuables of the abandoned 1972-built vessel and had to return to shore.
• Nintendo Has Cool Idea ........... as the Japanese video game manufacturer is counteracting the recent rate hike on the North America trade, by using reefer containers to transport its home video game machines. The Western Hemisphere is Nintendo's biggest export market, accounting for 69% of the 4,069 FEU of cargo it shipped by sea in 1998. Europe accounted for 28% of sales. Nintendo, which uses 3 Japanese shipping companies & APL for shipments to No. America, is using the reefer boxes on an experimental basis as part of cost-cutting measures. A company spokesman said it intends to use reefer containers for 20-25% of its shipments to No. America, but is not looking to use them for shipments elsewhere.
• Please Deliver My Cargo On Sunday ........... as Tokyo's Port & Harbor Bureau has ruled that external trade containerships carrying out stevedoring work on Sundays will be exempt from port entry & pier usage fees for a period retroactive from July 1, 1999 to March 31, 2000. The measures are intended to make Sunday stevedoring work, which had previously been carried out as a temporary measure, a permanent fixture. Officials at the port hope it will lead to the opening of port services throughout the year, fully utilizing its facilities & strengthening competitiveness.
• Iran Heads Back .......... as Some 80% of port activities have now been privatized, with the workforce reduced by 1,800. Iran plans to privatize 20% of its commercial naval fleet during a 5 year development plan which begins in March 2000.
• World Coal Loading Record Set ........... as Norfolk Southern Corp. loaded the billionth ton of coal at it's Lamberts Point's Pier 6, the largest coal-transloading terminal in the Northern Hemisphere, extending 1,850 feet into the Elizabeth River. Lamberts Point is the only such facility in the world to mark this achievement. The billionth ton was loaded aboard the Panamanian flagged M/V Loire Ore, an 895-foot vessel bound for The Netherlands. It would take 15,385 ocean-going vessels to transport the billion tons of coal shipped through Pier 6 since it opened in 1962. End-to-end, the vessels would stretch 2,258 miles - nearly the length of the Mississippi River. A billion tons of coal also would: fill the Louisiana Superdome 300 times, fill nearly 11 million 100-ton coal hopper cars, and form a train stretching 104,000 miles - which is enough to circle the Earth 4 times, travel from New York to Los Angeles 37 times or fly halfway to the moon.
• Step On It! ................ as ships entering public berths at the port of Kawasaki will be exempt from moorage fees, providing they arrive one day ahead of the set stevedoring time. According to port officials, vessels of 1,000 grt and larger will be exempt from the time of entry until 0730 hours the following day, effective Oct. 1, 1999.
• Sea Change For Filipino Crewing? ............. as action is being taken against the large numbers of Filipino seafarers presenting questionable claims for "moral damages" and other stress related work injuries. Manila fears that the situation could have negative long-term affects on the industry. For years, shipping lines have opted to employ inexpensive Filipino labor. With the increasing numbers of illicit claims from workers, the lines now rethink their costs. Because insurance premiums are rising for ships with Filipino workers, it is becoming cheaper to hire labor from other countries. Although the Philippine's shipping crew industry receives some of the best benefits in the global maritime industry, the group may suffer because some take unfair advantage.
• Behold The Reefer Giants ............ as world's biggest reefer container ship, M/V Dole Chile, is being prepared for delivery by German shipyard HDW. The 36,000-GT newbuilding, the 1st of 2 innovative ships for Dole Fresh Fruit Int'l, is due for delivery later this month. Sister ship M/V Dole Colombia is set to follow in Nov. 1999. The GL-classed boxships are 620 feet long & 97 feet wide, each with a capacity of about 2,000 TEU, making them the largest reefer vessels in the world. According to HDW, the ships have been fitted with the biggest floating nitrogen cooling plants ever installed. Both vessels are open-top design to facilitate efficient loading & have a speed of 21 knots. The sister ships have been earmarked for banana trade between So. America & the U.S.
• Port of L.A. Throughput ............... as our port continued to set records for import volumes, handling 176,445 TEUs in July, surpassing the previous record set 2 months ago. The port's July import total was 20% above July 1998. Through the 1st 7 months of 1999, the port has handled 1.06 million TEUs of loaded import containers, 10% ahead of the year-earlier period. "Economic stability in Asia, though still somewhat fragile, has ignited a sudden and welcome recovery in export shipping," said Al Fierstine, director of business develop for the port. Export volumes rose 8% to 66,948 TEUS in July. Overall, Los Angeles handed 330,245 loaded TEUs, the 2nd-highest 1 month total and third consecutive months the port topped 300,000 TEUs.
• Call For Naval & Cargo Research Papers .......... as the Faculty of Nautical Sciences of the Spanish University of Cadiz is hosting the forthcoming "2nd Int'l Conference on Maritime Innovation & Research" as a tribute to the 500th anniversary of the School of Biscain Pilots. This school, based in Cadiz, was the 1st school in Spain to provide maritime education & training. Papers dealing with any maritime issue will be most welcome although particular attention will be paid to those putting forward studies on "maritime innovation and research." Suggested topics include Control Systems & Maneuvering; Maritime Law; Dangerous Cargo; Naval Architecture; Navigation Systems & Naval Radioelectronics; Ergonomics; Maritime Education & Training. Deadline for the submission of abstracts is Nov. 30th, 1999. Cadiz is the oldest city in western Europe. http://www.uca.es/facultad/nauticas/congreso
• Baltimore Marine Expo .......... as Maryland will host the two-day 1999 SNAME (Society of Naval Architects & Marine Engineers) Int'l Exposition on Sept. 30 & Oct. 1, to showcase the newest & most innovative technology, which is revolutionizing the maritime industry. The venue will be the Baltimore Convention Center. For more information or to request a brochure, call (207) 842 5508, or e-mail >> mcarigan@divcom.com
• Did You Know? ............. why "starboard" is the right side of a ship? During the 8th Century, Viking ships always had their rudder or "steering boad" on the right side.
• This Month In U.S. Naval History ........... Sept. 9, 1961, USS Long Beach (CGN 9), the world's 1st nuclear-powered surface warship, was commissioned. And this week, This in naval history: Sept. 15, 1950, U.S. Marines landed at Inchon, near Seoul, Korea. In a surprise thrust deep behind the front lines, Communist invaders were forced to fall back northward.

5. The Cargo Letter Cargo Damage Dispatches

We're back! "Cargo Damage Dispatches" was one of our most popular features, for years, until Steve Schultz of Whitefish Bay took a much deserved break in 1998 from gathering all the information each month. Indeed, the West Coast's ILWU has put up a special web site, just for our previous reports. We've now brought the feature back, at least in part. The Cargo Letter is searching for volunteers to fill Steve's big shoes. Please apply, and to our readers, please let us know of casualties in that most dangerous place ....... out there.

Many of our past reports, many of them chilling, are available at both The Cargo Letter Archives and at a web site set up by the West Coast's ILWU. http://www.geocities.com/CapitolHill/Senate/7190/disaster.html

The Sierra Leone tanker M/T WORLD KINSHIP (49,827 gross), loaded with crude oil, is delayed at Dar es Salaam due to a defective single buoy mooring. The SBM is being replaced. (Saturday Sept. 18 1999)

The Hong Kong area has been severely affected by typhoon "York", with at least one person killed, over a hundred injured and almost all transport above ground at a halt. Several vessels were blown aground, including crane vessel OHI 5000 (36,367 gt) and container vessel M/V TEMPO (16,135 gt). (Friday Sept. 17 1999)

The Russian general cargo vessel M/V VOLGA 4003 (4,911 gt), touched bottom, causing water ingress, in the vicinity of Gogland Island, off St. Petersburg, on Sep 10. Vessel subsequently berthed at St. Petersburg, where an inspection revealed torn bottom plating over a 60 foot length. (Wednesday Sept. 15 1999)

The Panama oil/chemical tanker M/T PERGAMOS ((,631 gt), Gdynia for Three Rivers with a cargo of liquid urea, grounded on Hatterbarn Reef, in lat 55 52N, long 10 51E, on Sep 12. Tugs are presently on scene. (Tuesday Sept. 14 1999)

The Singapore container vessel M/V X-PRESS JAYA (6,973 gt, built 1980) had fire in engine-room Sep 10 following main engine turbo-charger explosion about 90 miles from Jebel Ali. Vessel will be towed to Jebel Ali. (Monday Sept. 13 1999)

The bow of the Thai LPG carrier M/T PAK ONE, which sank off Koh Kud, Trat, in August 1996, has moved upwards & is now only 4 to 5 meters below the surface. The cargo of liquified petroleum gas is keeping the bow upright. (Saturday Sept. 11 1999)

The Chinese M/V SHUN LONG (711 gt), from Hong Kong with containers, sank off the Ninepin Islands, in lat 22 15.25N, long 114 21.95E, Sep 8. All crew safely rescued. (Friday Sept. 10 1999)

The St.Vincent & Grenadines bulk carrier M/V WELL SPEEDER (16,184 gt), Port Louis for Lagos with cement, had water ingress in Holds Nos. 1 & 2 during bad weather & reported sinking in lat 20 23S, long 56 26E, Sep 6. Crew abandoned & rescued safely. (Wednesday Sept. 8 1999)

The Singapore bulk carrier/container vessel M/V BLUE MASTER (20,578 gt) was in collision with the U.S. F/V MASTER STEVEN (142 gross) off New Orleans Aug 27. Blue Master was holed in her No.1 starboard fuel tank & leaked about 50 barrels of oil. She subsequently arrived New Orleans Aug 28. Master Steven sustained bent outrigger. (Tuesday Sept. 7 1999)

The Maltese M/V KRISTINA (2,478 gt, built 1973) touched bottom in Black Sea on Sep 3, was abandoned by crew and subsequently sank in approximately lat 44 20N, long 33 12E. (Monday Sept. 6 1999)

The vehicle carrier M/V GRANDE EUROPA (51,714 gt, built 1988) grounded near "Kennedy Tunnel", River Schelde, while proceeding to berth at Scheldequay, at 0300, local time, today. Vessel was refloated at 0535 & proceeded to berth on her own. (Saturday Sept. 4 1999)

The St. Vincent & Grenadines M/V SONIA (4,659 gt), Southampton for Greece, laden with grain, reported Sep 1 in Sandown Bay, Isle of Wight, with water ingress into her engine-room. Vessel down in the stern & listing to starbord. Vessel requested tugs, pumps & divers, for underwater repairs. Tug on scene & has commenced pumping operations. Pumps coping; situation remains stable. (Wed., 1 Sept. 1999)

An Argentine Boeing 737 aircraft crashed on take-off from an airport near Buenos Aires, Aug 31. 80 people are believed to have died in the crash. Seven passengers are believed to have survived. (Thursday September 2 1999) See our exclusive, eyewitness story "Account of The Argentina Air Loss", below.

The St.Vincent & Grenadines M/V IRIS I (1,847 gt), Thessaloniki for Rouen with yellow corn, sank in lat 41 42N, long 009 42W, Aug 29. All 8 crew safely rescued. (Tuesday Aug. 31 1999)

The Barbados M/V VANESSA C. (1,853 gt), for Great Yarmouth with wheat, contacted a wall while entering Great Yarmouth & later took water in a hold and settled on bottom at Berth1D, Great Yarmouth. Crew taken off. Surveyors to attend. (Monday Aug. 30 1999)

The Cambodian bulk carrier M/V LEVENT (19,914 gt), Belawan for Bremen loaded, had a fire in her generator room while on passage through Straits of Dover Aug 23. Discharged cargo at Brake same day. Subsequently arrived Bremen Aug 25, where detained under Port State Control after inspection. (Saturday Aug. 28)

The Maltese bulk carrier M/V KARTERIA (21,266 gt), from New Orleans with iron oxide fines, had explosion in her holds in lat 37 28N, long 45 30W, Aug 25. Two persons killed & 2 injured. Vessel proceeding under own power to Ponta Delgada, where ETA noon, Aug 28. (Friday Aug. 27 1999)

The Canadian F/V RED SUN (221 gt) was reported taking water west of Petit Passage, Nova Scotia, on Aug 23. The crew successfully halted the leak & pumped out the water and the vessel proceeded to port under her own power. (Thursday Aug. 26 1999)

The Panamanian m container vessel M/V EVER DECENT (52,090 gt), Hamburg for Los Angeles with containers, was in collision with the Bahamas m passenger vessel M/V NORWEGIAN DREAM (50,764 gt), on 12 day Baltic Cruise with 1,600 passengers and 800 crew, in lat 51 26N, long 01 56E, late Aug 23. Norwegian Dream sustained damage to bow and bridge and berthed Dover Aug 24. Ever Decent is still on fire Aug 24 with tugs in attendance. (Wednesday August 25 1999) See our full story, above.

The Turkish bulk carrier M/V MELIKSAH (10,992 gt), Russia for China with fertilizer, reported taking water in her engine-room & subsequently sank off Dondra Head, Sri Lanka, Aug 23. All 27 crew rescued safely. (Tuesday August 24 1999)

The U.S. dredge barge MARICAVOR (571 gt) sunk at her moored position at the Port of Miami on Aug 20. All 4 crew members evacuated the vessel safely. Officials are on the scene to begin an investigation into the sinking. (Monday Aug. 23 1999)

CMA-CGM resorted to unloading containers from its 3,538-TEU vessel M/V Ville de Capella, after failing to tug the ship out of Hong Kong's port. The Ville de Capella, which runs the "MEX" service between Asia & the Mediterranean, had its journey cut short when it got caught in Typhoon Sam which hit the SAR on 22 Aug., disrupting most maritime & cargo schedules.

The Bahamas bulk carrier M/V MANDARIN ARROW (35,998 gt) while waiting to berth at Fletcher Challenge, Duncan Bay, was caught in a cross current & grounded on sandbar on Aug 17. Refloated & berthed. Sustained minor hull damage. (Saturday Aug. 21 1999)

The German stern trawler F/V GERDA MARIA (2,122 gt) had a fire on board in lat 53 28.7N, long 02 55.5E, Aug 18. Crew abandoned & all safely rescued. Still drifting on fire Aug 19. Tug Waker on scene. (Friday Aug. 20 1999)

The German container vessel M/V NAVIGIA (2,240 gt) had main engine failure & disabled in the North Sea off Hanstholm 18 Aug. Tug proceeding and will tow her to Hanstholm. (Thursday Aug. 19 1999)

The Singapore bulk carrier M/V SEA CRANE (26,951 gt), Mobile for Yokohama, reported main engine problems Aug 16. She has diverted to Honolulu at reduced speed to effect repairs. ETA Honolulu 21 Aug. (Wednesday Aug. 18 1999)

The Belize M/V GOLDEN VIRGO (6,158 gt) while anchored at Mukalla drifted aground in strong winds Aug 10. Tug proceeding from Aden. (Tuesday Aug. 17 1999)

The German container vessel M/V CONTSHIP HARMONY (31,207 gt, built 1997), struck underwater object in Gulf of Aqaba Aug 15 & sustained flooding to a forward area. Proceeding under own power for Aqaba. (Monday Aug. 16 1999)

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

U.S. Customs Intellectual Property Rights ........... Customs has posted to its Web site a June 1999 publication entitled "Customs Enforcement of Intellectual Property Rights" as part of its series "What Every Member of the Trade Community Should Know About." 

U.S. National Shipbuilding Research Program 

Starship Millennium Voyage ....... a three year voyage of exploration around the world and into the next century by scientists on the 75' M/V Starship. Learn about the world on daily basis with journals and satellite links. Very cool! 

Maersk Line Country Pages .......... info at a glance on the leading trading nations & their fleets (look under "About Us"). 

TRACKER ............ a PC solution for unclaimed property management. The system streamlines the task of complying with state unclaimed property reporting laws by collecting, managing & filing unclaimed or abandoned property data. TRACKER also generates search letters to owners, maintains activity logs & creates reports in pre-approved formats for all states & jurisdictions. 

Descartes Software - "Delivery Net" supply chain & control software. 

Active Software ..........provider of eBusiness integration software products has announced the successful implementation of the ActiveWorks Integration System at C.H. Robinson Worldwide, Inc. ActiveWorks enables real-time interfaces to occur between C.H. Robinson's transportation & customer management applications, enhancing just-in-time distribution capabilities for time-sensitive customer orders. 

Provia Software ........... is the software supplier to 4 of the top 5 3PL providers listed in the July issue of Inbound Logistics. The article, "Recognizing 3PL Excellence," is the result of a poll of Inbound Logistics readers to identify the best providers of 3PL. 

Seattle Ships Page ........... a ship-based website for the Puget Sound area. Seattle. Vessel Traffic Service radio frequencies supplied for each vessel. Covers those companies that have a ship of a significant size at a local dock. Included are both the Washington State Ferries & BC Ferries fleets as well as the U.S. & Canadian naval and Coast Guard fleets in this area. 

Humber Maritime ......... many great ship photos and UK shipping information. 

Deck Scaling Equipment & Offshore Supplies 

Attorneys Fees & Fraud ........... how to spot attorneys who abuse the system. 

Top Insurance Fraud Stories of The Month 

Web Security & Your Data: Use It Or Lose It! 

Maritech ASE Research Announcement

Bunker World ........ marine fuels, tankers & more. 

Steamer Columbia Foundation ......... 97 years and needing your help. 

For Sale: World War II P.T. Boat. An original Elco, once under lease to Clark Gable. 

HomePage.com ............ offers a free service to scan your photos and post them on the web for you in a private photo album. Create a company album and link it to your web site. Share photos with the family. System allows you to add voice descriptions! 

Mind Control of Machines ....... the industry is in it's infancy. Help for the disabled for now, but imagine the ability to move cargo in you mind. 

Shanna McCullogh Online ...... a strange tribute to The Cargo Letter and our TRANS-CAMS. We had nothing to do with this, but somehow could not pass up showing it you. The world of International cargo is seldom seen as sexy! But why? Go figure. 

Poland Shopping project ........ featuring our The Cargo Letter Shopping Mall. 

The Puppy Cam Network 

Bottled Water Boutique ......... and we thought we'd seen it all! 

OUR "E" Section: The Forwarder/Broker World

7. Account of The Argentina Air Loss

• A Local Account

-- by Dr. Diego Lopez Saavedra for The Cargo Letter

An Argentine Boeing 737 aircraft crashed on take-off from an airport near Buenos Aires Aug 31. Eighty people are believed to have died in the crash. Seven passengers are believed to have survived.

Indeed, we have not yet recovered of the impact caused by this terrible casualty. The airport in which this casualty occurred is located in the middle of the city of Buenos Aires. This was something that everyone expected to happen sometime, even when everyone pretended that there was not a problem. The tragedy could have been even worst.

There has been a long discussion before this casualty occurred about the necessity to move this airport to somewhere else. Certainly this discussion will start again now. One of the most important access roads to the city runs alongside the airport.

By a miracle, the traffic lights were red at the very moment when the airplane crashed and the cars were stopped just a few meters from where the airplane crossed the avenue. If not, the airplane would have crashed against dozens of cars that were leaving the city at that time. Certainly, God did not wanted this to happen.

Apparently, one of the engines of the plane (Boeing 737 built in 1973) had problems before taking off. This is not confirmed, but what seems to have happened is that the plane tried to take off and something happened with one or both engines after it has reached the "point of no return" speed. The plane then continued its way, crossed the avenue that runs alongside the airport and stopped at a golf driving range where around 300 persons were practicing golf. Once again, it seems that God did not want this tragedy to be bigger, as the plane was stopped by a small hill before it reached the place where these persons were playing golf.

About 70 people were killed and 30 could survive. It seems as if only one door of the plane could be opened (the one at the back) and thus, most of the passengers could not leave the plane while it was burning.

What a horrible scene! May God bless us.

Our colleague, Dr. Diego Lopez Saavedra is a senior attorney in Buenos Aires, Argentina. We appreciate comments & descriptions of this event which are not available to any of us from other sources.

8. A Horse Named Kimberlee

• Like A Boy Named Sue

-- by Michael S. McDaniel with thanks for The Cargo Letter

There are no words to express our thanks for the giant hearts which each of YOU opened on 17 July 1999 for our dear Kimberlee Countryman. From across America and around the world .............. there was an outpouring of love & hope by thousands of YOU for our dear 16 year old Calabasas High School cheer leader who faced & beat the odds! Liver cancer at age 16, and a father at The Cargo Letter who would not wait for his daughter to just come up on a hospital transplant list in Los Angeles. Byron Countryman searched the country, fighting to save Kimberlee's life, and did.

Now that Kimberlee is back home with us, the transplant a success, and starting to enjoy her senior year at Calabasas High School, we will take a moment to thank you all once again for the increddible kindness and love shown by each of you to Kimberlee and our families during this tragic nightmare. I can't thank each of you by name, the list would be both too long and not complete. There were so many thoughtful messages and similar stories of courage. This said, one letter we received brought a bright spark to our girl which seemed to launch her spirits upward. I want to share this letter with you.

Following is an example of the amazing emotion which Kimberlee's personal battle has drawn from the hearts of good people from around the world. As you will see, Kimberlee is now honored in far away South Africa in the manner of that old Johnny Cash song "A Boy Named Sue" ......... with her own race horse! Here is the amazing letter from our long time The Cargo Letter friend, Peter Bower:

"Dear Countryman Family and Friends,

I am a hardened shipping journalist of 25 years experience, and I live in a land where rape, pillage and death are everyday (and I mean EVERY day) occurrences. So it's not often a story gets through to me emotionally.

However, reading your e-mail about Kimberlee hit that spot in every father's heart which reduced me to ... well ... a soppy old fart with tears on his cheeks.

I have three kids, all younger than Kimberly and all - thank God - in robust health.

Yet, as a father, I can understand the will to do the best for one's kid - tirelessly. Go for it, Dad! In a small cosmic way, in a corner of South Africa, there's another Dad who sends you thoughts of strength and will to get you through the dark times.

We're a horsey family, and I have just had to get a pony for my two younger kids. This I did yesterday, and now we need a name for the beast. Traditionally, we name our animals after typefaces. (My suggestion of "Arriba-Arriba" - yes, there is a typeface with this name - was met with a VERY old-fashioned look by my 8 yr. old daughter!).

We now have the perfect name, and I am honoured to name him "Kimberlee".

Kimberlee being a traditionally girls' name, the fact that he's a gelding will be a cause for question, and my kids will be pleased to tell how their pony is named in honour of a young lady of courage and strength, and her family, in America.

We're confident our nag's going to be a little star in the riding world in Gauteng (our province) and I hope he'll prove an inspiration to your Kimberlee too.

Once he's on our farm and we have a photo of him and his new riders, we'll send you a copy. Meanwhile, we wish you strength in the difficult times ahead.

But here's a more practical suggestion: When Kimberlee's strong enough, and the parents willing, please accept an invitation to visit South Africa for some R & R. You can stay with us, close to the airport, as long as you like, and there is nothing less strenuous than viewing game in the Kruger National Park!

With our best wishes, thoughts and our prayers

PETE, VANESSA, GEOFFREY, MICHAEL AND CATHERINE BOWER.
Gauteng, South Africa"

When she was able, Kimberlee responed to us:

"I just received your E-mail about the pony and I was completely taken back. That was amazing! I have a horse named after me that lives is South Africa..That is so cool. To all of you, I am doing just great and I want to thank all of you for all of your support along the way. I love reading the E-mails, and getting so many balloons (my room looks like it's going to fly away!)."

Our Kim now trades regular e-mails with here new freinds in South Africa ......... and to get the latest news about her new pony.

Intense medical reatment continues for our girl, but she improves every day while enjoying the gift of life. Thanks again to you all. McD

Recently, one of the on-line message networks received a container transport question. What is a "bulk pulse"? Gary Rempel answered that Bulk pulses are pulses or legumes such as dried peas, shipped in bulk. Nothing to do with power surges or medical instruments!

Assembled from wire stories, the Associated Press, Lloyds, Reuters, Hong Kong Shipping News & other world sources. Error processing SSI file