The Cargo Letter 393 Sept. 2003

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Law Offices of Countryman & McDaniel

THE CARGO LETTER [393]

Air & Ocean Logistics - Customs Broker News

30 Sept. 2003

Part 1 of 1

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Good Tuesday Evening from our Observation Deck......overlooking the officially designated "Cargo City" area and...... Runway 25-Right, at Los Angeles International Airport, voted "Best Cargo Airport in North America." Unique to The Cargo Letter, none of us are running for Governor of California.
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Our corporate sponsor &endash;- Interpool, Inc. -- named again to Forbes "Best 200 Small Companies" List -- for the 2nd consecutive year! -- http://www.interpool.com/

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

INDEX to The Cargo Letter:

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

1. Freight Forwarder Trade Briefs ______________

2. The Cargo Letter Financial Page ______________

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

3. Freight Forwarder World Air Briefs ____________

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

4. FF World Ocean Briefs _____________________

5. The Cargo Letter Cargo Damage Dispatches _____

**Back By Popular Demand**

OUR "D" Section: FF in Cyberspace***

6. The Cargo Letter "Cyber Ports of Call" _________

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

7. New Transport Related Legal Cases ___________

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

1. Freight Forwarder Trade Briefs _____________

***Our Top Story ....... as Air France & KLM Royal Dutch Airlines plan an unprecedented alliance, leading Europe toward consolidation in the overcrowded airline industry. The complex proposal, uniting major European airlines under the same corporate umbrella for the 1st time, amounts to a challenge to European regulators to ease stiff rules on big carriers suffering from a historic downturn. Air France said today its offer for KLM values the smaller Dutch carrier at US$909M. Creation of the new holding company, "Air France-KLM", would form an aviation behemoth with annual revenue of US$22.08Bn. KLM shareholders would own 19% of the new entity, to be based in France. The new alliance, uniting Europe's 2nd & 4th largest carriers, would eclipse British Airways as Europe's biggest airline operator with US$12Bn in revenue last year. The companies expect to sign a final pact in 2 weeks & close the deal by April, pending regulatory approvals. The group would serve 226 cargo destinations worldwide, with a fleet of 540 aircraft & employing 106,000 people. A tangle of EU rules on air travel, such as on landing rights, have typically made merger prospects tough. To get around that, Air France & KLM plan to maintain 2 separate carriers under a single holding company. The deal will be scrutinized by competition regulators in Brussels & Washington.

***WTO Bust ...... as at a press conference closing the World Trade Organization's 5th Ministerial Conference in Cancún this month, EU Trade Commissioner Pascal Lamy declared: "I do not want to beat about the bush: Cancun has failed. This is not only a severe blow for the World Trade Organization but also a lost opportunity for all of us, developed & developing countries alike. We would all have gained. We all lose. We will not play the blame game & we will remain open to reviving this process." >> While the conference was a complete failure, the WTO ministers approved membership agreements for both Cambodia & Nepal. Once a ratification process is completed, they will become the 147th & 148th members of the WTO, as well as the 1st least-developed countries to join the trade organization.

***Burkina Faso -- The Country You Never Heard Of ....... as it's President Blaise Compaore, a leader in the dissident group that brought you an early end to the WTO Int'l trade talks in Mexico, on Sept. 26 -- demanded elimination of U.S. export subsidies on cotton. Compaore spoke at the U.N. General Assembly, dominated this year by disagreements over trade & the recent collapse of the WTO talks in Mexico. Poor nations should receive compensation for income lost because they cannot compete internationally with heavily subsidized cotton, according to Compaore. The Burkina Faso government estimates that poor nations in its West African region lost at least US$1Bn each year because of heavy subsidies paid by rich countries. Cotton represents some 30% of export earnings for countries in West & Central Africa, & at least 10 million people depend directly on cotton. Although production in Central & West Africa increased by 14% over a recent 2 year period, export earnings fell by 31%. >>> Burkina Faso has seen 5 military coups since independence from France in 1960, including the bloody 1987 takeover that gave Compaore control of the landlocked, resource-poor nation of 12 million people. Elections since have kept him in power. >> See the Burkina Faso country:

***Central America To Be Free ...... as creation of the U.S.-Central America Free Trade Agreement (CAFTA) is understood to be a "high priority" of the Bush administration. CAFTA "is one of the biggest items on the hemispheric agenda," said Robert Noriega, assistant Secretary of State for Western Hemisphere affairs, to the Institute of the Americas. The 7th round of CAFTA talks, involving the 5 Central America nations Costa Rica, El Salvador, Guatemala, Honduras & Nicaragua, are under way in Nicaragua & the final round is expected to take place in Central America in Dec. Noriega anticipates negotiating the accession of the Dominican Republic to CAFTA by early 2004 and to submit the complete agreement for congressional approval by mid-2004. The agreement is expected to reflect the latest developments in Int'l trade law, Noriega said, adding the recently concluded U.S. trade agreements with Chile & Singapore are models for CAFTA. The agreement will yield economic & political benefits not just for the Central America region, but for the entire Western Hemisphere, Noriega told the Institute of the Americas.

***Chilly Welcome Home ........ as U.S. officials say a program to deport Mexican migrants hundreds of miles from where they crossed the border reduces illegal immigration attempts -- but Mexican authorities complain it is sending a tidal wave of deportees into border towns. Most of the immigrants are caught in the deserts of Arizona, then put on planes by the U.S. Border Patrol & sent to the better-guarded border in Texas. The U.S. authorities say the practice cuts migrants' links to smuggling networks in Arizona. The pilot program has caused anger on the Mexican side, where town officials say they are ill-equipped for the influx of deportees (their countrymen). The program has saved more than 3,000 migrants from the Arizona desert, where authorities were recording roughly one migrant death per day, usually from dehydration or heat stroke. Since the program started, only 1 person has died in the Arizona desert, said a Border Patrol spokesman, who added that the program has saved many other lives. Our suggestion: fix the horribly corrupt government of Mexico.

***EU & SU? ....... as the presidents of the 4 biggest former Soviet Union states -- Russia, Ukraine, Belarus & Kazakhstan -- have signed an agreement to create a "Common Economic Space," with the intention of opening borders to trade, unifying tax and customs systems & creating shared energy, transport and tariff policies. This common market would, according to Russian President Vladimir Putin, "increase (the) competitiveness of our goods in Int'l markets, ease contacts between manufacturers within the Commonwealth of Independent States & create good conditions for the development of our economies." Some officials felt that creating an integrated trading bloc similar to the EU could be beneficial, especially since these countries are not part of the WTO or the EU. The plan is, however, controversial. Nationalists fear that too much sovereignty would be handed over to Moscow. Hey, what about calling it something like, say, the "Soviet Union?"

***UPS & The Self-Delivering Package ....... as it has developed a suite of technologies, including software, hardware & process changes, to improve customer service & internal efficiency. Full deployment of the new network in the U.S. will be completed by 2005. The foundation for the new system is a "smart label" affixed to packages moving through the UPS network. Information from the label is transmitted to UPS before the package is even picked up by a driver. The software allows address information on a package to be preprocessed & corrected, if necessary, before physical arrival at a UPS sorting center. Customers will also be able to request a change in the destination of a package while it is in transit. UPS employees loading trucks today must learn hundreds of addresses or ZIP codes for each delivery area. With the new network, each package will arrive with specific instructions on where it should be placed inside a delivery vehicle. "That enables a driver to view all packages in order of delivery, reducing the time to select packages & the miles required to complete deliveries," UPS said. Initial deployment of the network suggests that UPS can reduce the mileage clocked by its delivery trucks by more than 100 million miles a year, saving 14 million gallons of fuel. Wow.

***FedEx Ground Move ......... as it has opened a new, fully automated terminal in Wheeling, Chicago. The distribution facility features the latest package-sorting technology and is the 2nd automated terminal to open as part of FedEx Ground's US$1.8Bn network expansion plan. Announced a year ago, the investment calls for the addition of 10 new hubs & expansion of 23 existing hubs, as well as the relocation or expansion of more than 300 pick-up and delivery terminals. The new 107,000 sq. ft. Wheeling terminal is triple the size of the center in Northbrook that it is replacing.

***Being Seen In The Right Places ........ as U.S. Bureau of Customs & Border Protection (CBP) has expanded its contract with ObjectVideo, a video surveillance software company specializing in physical security applications. The CPB has agreed to buy an enterprise-wide license of the software product VEW (Video Early Warning). The multi-million dollar agreement permits deployment of VEW software at all borders & points of entry, as well as at seaports, airports & Int'l locations that Customs deems necessary for homeland security. Please urge your employees to use proper make-up.

***New Transport PLA-ZA ....... as the Massachusetts Institute of Technology's Center for Transportation & Logistics has signed a multiyear agreement with the government of Aragon, one of 17 autonomous regions into which Spain is divided, to assist in creating an Int'l program for education & research in logistics. The government will build the new center in Zaragoza, the capital of Aragon, with MIT & PLA-ZA, a local logistics development, acting as partners in the project. Plataforma Logistica de Zaragoza, or PLA-ZA, has developed & operated a logistics park southwest of Zaragoza near the city's Int'l airport.

***Fritz To The Rescue ........ as the Int'l Federation of Red Cross & Red Crescent Societies has activated a new logistics management software developed by the Fritz Institute. The Int'l Federation spent about a year working with the San Francisco-based Fritz Institute to develop the system, which it believes will speed up the relief process by 20% to 30%. The Humanitarian Logistics Software (HLS) will gradually become the standard for Red Cross/Red Crescent operations around the world. Lynn Fritz, Director General of the Fritz Institute, & former chairman & CEO of commercial logistics firm Fritz Cos. (now part of United Parcel Service), said this is an example of instilling much needed commercial logistics systems practices into the humanitarian aid supply chain. HLS specifically addresses logistics needs of humanitarian relief organizations operating during emergency phases of disasters, he said. Through Web-based technology, HLS allows up-to-date tracking of food, non-food, gifts-in-kind & financial information about the commodities in the supply chain. It also allows for fast reconciliation of needs versus what has been pledged or purchased and does it at a demand level per project per item.

***White Paper On Network Optimization ........ as USCO Logistics, a provider of supply chain management & distribution services (a subsidiary of Kuehne & Nagel), has issued a "white paper" saying that many companies mistakenly conduct optimization studies that are almost exclusively data-driven. "Their assumption is that you just plug in the relevant data on size, weight, volumes, ship-to points & other factors and output the ideal network design," said Ashutosh Dekhne, supply chain engineer for USCO & author of the "white paper." The point of network optimization, Dekhne said, is to assess the number, size & location of required distribution centers in order to achieve a balance between service levels & logistics costs. USCO Logistics' white paper is available online.

***Terrorists For A Day ........ as this month ABC News secretly shipped 15 pounds of depleted uranium from Jakarta, Indonesia, to Los Angeles, as a test of security at a major U.S. port. A container in which the uranium was placed was properly flagged by U.S. Bureau of Customs & Border Security automated tracking system and examined by inspectors wearing radiation detectors. The spent uranium did not set off the detectors, and the container was released "because it didn't pose a threat," the source said. Later, a trucking company, whose employees had become suspicious, found & reported ABC's shipment, which consisted of a lead pipe, sealed with the uranium inside, that had been placed in a suitcase. Maersk was the ocean carrier involved in the incident. Great work!

***Heavy Import Tariff .......... as Singapore executed 2 convicted Malaysian importers (drug traffickers) last week, despite appeals for clemency from lawyers & a human rights group. Both men were hanged, bringing the number of people hanged in Singapore so far this year to 12. Over the past 4 years, 88 people have been hanged, mostly for drug offenses. The government says the death penalty effectively deters drug addiction. Anyone caught in possession of more than 15 grams of heroin in Singapore faces the death penalty. And let's not forget about that penalty for graffiti.

***Moving Target? ....... as the U.S. Dept. of Transportation will not stop requiring placards for hazardous material shipments, although the Dept. of Homeland Security wants to change or discontinue the familiar diamond-shaped labels because they could be a magnet for terrorists.

***Buying The Atlantic ........ as Travelers Property Casualty Corp. has signed a definitive agreement to purchase renewal rights to the majority of Atlantic Mutual's commercial lines inland marine & ocean cargo businesses written by Atlantic Mutual's Marine Division. The transaction offers Travelers the ability to acquire up to approximately US$110M in new net written premium plus the related unearned premium reserve currently on Atlantic Mutual's balance sheet. Travelers expects the transaction to be accretive to earnings in 2004. "This transaction, like the Royal & SunAlliance USA renewal rights agreement we announced recently, is in line with our strategy of supplementing internal growth through quality acquisitions that complement our core businesses," said Travelers COO.

***Freight Forwarder In The Cookie Jar .......... as the CEO of freight forwarder KM Logistics pleaded guilty in federal court to mail fraud, wire fraud, & bankruptcy fraud. Wm. J. Findley, III, 57, of Rochester, Mass., pleaded guilty to stealing money from the escrow account of KM Logistics, Inc. which held customer funds. Findley was the CEO, Treasurer, CFO sole stockholder of KM Logistics, Inc., located at 83 York Avenue in Randolph, Mass. From at least May 1997 through Nov. 2001, Findley was said to have embezzled more than US$1.6M in customer funds that KM Logistics was supposed to use for shipping costs on behalf of its customers. On behalf of its customers, KM Logistics paid customers' freight bills to the carriers. The stolen funds were principally used for stock day trading. Theft from the KM Logistics customer escrow account drove the business into bankruptcy. Bill, you are in big trouble.

***Cambodia Reduces Meat Imports ........ as citizens in Phnom Penhare are being urged to eat more dogs as part of a crackdown on stray mutts wandering around the capital of the Southeast Asian nation. Although dogs, along with creepy-crawlies such as spiders, beetles & crickets, are found regularly on menus in deeply impoverished rural areas, eating them is frowned upon in the relative sophistication of Phnom Penh.

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2. The Cargo Letter Financial Page ____________

**Atlas Air Worldwide Holdings (parent of Atlas Air & Polar Air Cargo) DOWN for the year ended Dec. 31, 2002, a net loss of US$36M on revenues of US$1.2Bn.

**FedEx Corp. DOWN as profit dropped 19% to US$128M, or 42 cents a share, in the 3 months ended Aug. 31.

**Geodis (French trucking & forwarding) broke even in 1st half of this year for the first time since 2000, as net income was US$220,000.

**Panalpina. DOWN with net income of 50.9 million Swiss francs (US$36.9M) in the first half of 2003, down 1.5% from CHF 51.7 million in the 1st 6 months of 2002.

**Peninsular & Oriental Steam Navigation Co. (parent of P&O Ports) narrowed its net loss to £9M (US$14M) DOWN in 1st half 2003 from £55.6M in the corresponding period of 2002

**Target Logistics. UP with net income of US$45,133 for 4th quarter, compared with net loss for 4th quarter ended June 30, 2002 on US$29,321,254 revenue, a 10.5% increase.

**UAL Corp. (holding company of United Airlines) UP with net income for Aug. of US$68M, excluding reorganization expenses of US$114M. The majority of reorganization expenses were non-cash items resulting from the rejection of aircraft. Operating profit for the month was US$105M. WOW! Beating bankruptcy.

***Frontier Airlines IPO ....... as it plans to sell 3.7 million shares of its common stock to match an effective shelf registration statement previously filed with the U.S. Securities & Exchange Commission. Underwriters have the option to purchase up to an additional 555,000 shares of common stock from Frontier to cover over-allotments, if any. Frontier intends to use 60% of the net proceeds from the offering to pay down a portion of its government-guaranteed loan, and the remaining proceeds for working capital & capital expenditures.

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

3. Freight Forwarder World Air Briefs ______

***U.S. Air System Won't Measure Up ......... as major improvements to aircraft are needed for the U.S. air transportation system to get where it needs to go in the next 35 years -- when volume will have doubled, according to a report by the National Research Council. The whole system, in fact, needs an overhaul if it is to meet a doubling of demand for air transportation, said the new report. Cleaner, quieter aircraft are keys to increasing the system's capacity, the report said. Otherwise, it said, public objections to the noise & pollution caused by airplanes will limit airport growth. The council recommended investments in improved aircraft design & new propulsion technologies, such as hydrogen fuel & advanced fuel cells. Other kinds of aircraft that could contribute to a more efficient air transportation system include supersonic business jets; giant flying wings for carrying cargo; and aircraft that can take off & land vertically without runways, the report said. The report said the U.S. ignores an important goal for civil aeronautics that Europe recognizes: satisfaction of consumer needs. Another flaw in the U.S. vision for aviation is that it doesn't aim to continue its dominance of the aeronautics industry, while Europe is intent on overtaking the U.S., the report said. The report, written by representatives of industry, academia & the government, notes that a group named by the European Commission set forth a vision for European aviation in the year 2020. Among its goals was primacy of the European aeronautics industry, a supersonic aircraft that would carry 1,200 passengers & an air traffic system that would set the world standard for efficiency. FAA.

***2002 Didn't Measure Up ....... as consulting firm The Colography Group says that the airfreight industry in 2002 suffered one of the worst years in its history. Domestic U.S. shipment volumes last year fell by nearly 6% compared to 2001 levels, Colography reported in its "Domestic Air Cargo Trends "study. The number of shipments declined by 5.9% to 2.6 billion. But data from the 7 core domestic airfreight competitors tracked for the report showed that volume wasn't the only thing that took a nosedive: Revenues fell by 2.9% & tonnage dropped 4.1% last year. None of the core carriers, which represent 99% of the domestic U.S. air market, reported year-over-year gains in both shipment volumes and revenue. This is the 1st time in the study's 18-year history that has been the case. The U.S. Postal Service (USPS) took some of the hardest hits, as its share of the air expedited market fell to 40.1% from 42.5% in 2001. Expedited shipment volumes fell by 11.1%, mostly due to what the consulting firm called "significant share erosion" of its Priority Mail product. Priority Mail represents 84% of the postal service's air revenue.

***Tighter Still ........ as the Bush administration is considering tighter rules for cargo shipped on passenger airlines, include requiring background checks for workers who deliver the cargo and additional scrutiny of shippers. It is understood that the goal of the plans would be to screen 100% of everything that is high risk, as opposed to every single box. The government is also considering outfitting aircraft with hardened cargo containers that can withstand an explosion, but airlines have resisted purchasing the containers because of their US$15,000 price tag. The industry wants to avoid having to X-ray, swab or sniff the 2.8 million tons carried on passenger flights each year as belly cargo. Indeed, U.S. Senate & House of Representatives negotiators agreed last week on a US$29.4Bn bill to fund the new Dept. of Homeland Security next year after they dropped a requirement that all cargo carried on passenger planes be screened.

****Homing In ....... as the U.S. Dept. of Homeland Security plans to seek industry proposals to develop on-board anti-missile systems to protect commercial aircraft from terrorist attacks using portable, shoulder-fired missiles. The Bush administration is willing to spend up to US$100M during the next 2 years to adapt military countermeasures, such as heat-seeking flares, for use on commercial aircraft. The 2004 Homeland Security budget includes US$60M for research into aircraft defense systems, but Homeland Security officials previously said they were unsure that placing the expensive technology on each aircraft was the most cost-effective way to deal with the terrorist threat.

***Big Hit ....... as Emery Worldwide Airlines will pay a US$6M federal fine for violating Haz Mat laws by failing to identify shipments properly, parent company CNF Inc. said. Emery, the air cargo carrier that ceased operating in 2001, pleaded guilty this month in U.S. District Court in Dayton to 12 counts of violating the Hazardous Materials Transportation Act. The violations occurred at Emery's hub in Dayton in 1998. Haz Mat under the law can include paint & nail polish.

***New Marshall In Town ....... as the U.S. Homeland Security Dept. will train as many as 5,000 customs & immigration agents to serve as Air Marshals when U.S. airliners are especially threatened by terrorists

***Who Are You? ....... as by next summer anyone buying an airline ticket would have their personal information run through a database that rates their potential for terrorism. Still under development is a device that would use X-ray technology to allow airport security personnel searching for bombs or weapons to see through people's clothes to their naked bodies. The proposals represent some of the newest tools in the government's arsenal against terrorist attacks. They also illustrate the ongoing struggle among freedom, privacy & security interests. Well, got weapons? Read the report.

***Who Are You? ........ as on Sept. 19, JetBlue Airways, based at Long Beach, CA, publicly acknowledged it had provided Torch, a Pentagon contractor & provider of terrorist risk assessments based in Huntsville, Ala., with data on more than one million passengers. The company had done so after "an exceptional request by the Dept. of Defense," said David Neeleman, JetBlue's founder & CEO. "This was a mistake on our part and I know many of our customers feel betrayed by it." On Sept. 22, the Dept. of Homeland Security & the Federal Trade Commission said they have opened investigations into JetBlue's conduct. Lawyers for Torch Concepts confirmed that "no identifiable customer data was released to any 3rd party, including the Dept. of Defense or the Transportation Security Administration, and that all the data has been destroyed. Right.

***One Step Beyond ....... as the U.S. Dept. of Transportation has made final with slight modification its July 14 interim decision expanding U.S.-Hong Kong air traffic rights for 6 all-cargo carriers. FedEx Express, United Parcel Service, Evergreen Int'l Airlines, Kalitta Air, Northwest Airlines & Polar Air Cargo can begin additional weekly flights between Hong Kong & 3rd countries Oct. 26. The carriers were granted interim authority to serve other countries on a limited basis out of Hong Kong after the U.S. & China agreed in Oct. 2002 to liberalize their existing bilateral aviation agreement to include such "beyond" country-to-country rights.

***Open Skies For U.S. & Thailand ........ as the countries have reached an open skies agreement that eliminates restrictions in the existing bilateral arrangement for air express and cargo carriers The agreement expands free market notions to the tightly controlled aviation market by getting rid of government controls on the flight frequencies, types of aircraft and prices. United Parcel Service issued a statement last week welcoming the agreement, which was not publicized by U.S. officials. When the agreement takes effect still has to be worked out.

***Open Skies For Albania....... as U.S. Transportation Secretary Norman Mineta & Albanian Acting Minister of Foreign Affairs, Luan Hajdaraga, signed an open-skies aviation agreement that establishes a liberal, market-based aviation regime allowing airlines of each country to operate to, from or beyond each other's territory. Open-Skies agreements allow airlines to determine how often they fly, the kind of aircraft they use, & the prices they charge. The agreement applies to both cargo & passenger services in the booming Albanian market.

***Getting Things Strait ....... as China's state-owned Xinhua News Agency reports the Chinese government negatively views a Taiwanese announcement this month that the island nation intends to operate indirect charter cargo flights to the mainland via Hong Kong & Macau, without offering access to mainland carriers such as China Southern Airlines, according to Commercial Aviation Today. The China Civil Aviation Assn. says that China is ready for talks on direct air links with Taiwan & wants mainland carriers to be allowed to operate such flights too. Officials said 2-way direct cargo flights across the Taiwan Strait would save time & expense for shippers.

***British Airways On Swiss ....... as it will join with Swiss Int'l Air Lines (Swiss) to have joint operations between the UK & Switzerland with codesharing on Heathrow Swiss routes starting next month. The move will give customers access to worldwide destinations via London & Zurich. In addition, BA will enter into a slot exchange agreement for 8 Heathrow daily slot pairs from Swiss. British Airways will support a US$37M credit facility for Swiss, to be secured against slots at London Heathrow. Swiss will also enter the oneworld alliance, of which British Airways is a founder member.

***China Flight To The Future ..... as air travel in China continues to grow at a rapid rate, the world's largest country will need 2,400 new jet airplanes worth US$197Bn over the next 20 years, according to a market forecast by Boeing. Boeing said in its study that China will add 1,960 new airplanes to serve its domestic markets including Hong Kong & Macau. "China is one of the fastest growing markets in the world for commercial aviation," said Boeing Commercial Air Group. "China's 20-year gross domestic product (GDP) forecast is 6.2% - the highest in the world, & Boeing projects that domestic air travel growth will outpace GDP growth over the next 2 decades." China's air travel is forecast to increase at a rate of 7.1% annually from this year to 2022, compared with the world average of 5.1%. In its global forecast, Boeing said the world fleet will more than double by 2022 to 34,000 airplanes. During this period, 5,890 airplanes will be retired from commercial service & replaced. During the next 20 years, airlines will take delivery of more than 24,000 airplanes worth US$1.9 trillion.

***United Airlines Goes Cheap ...... as Denver will be the launch hub for the airline's new low-cost operation (LCO), an essential element within its portfolio of products. The LCO will serve predominantly leisure markets & feature a simplified fare structure with low-cost business and leisure fare options. The LCO will launch from Denver Int'l Airport in February 2004. The LCO fleet will launch with four Airbus 320 aircraft in Denver, and expand to 40 A320s by the end of 2004, 19 of which will be based in Denver. From Denver, the LCO will fly to Reno, Las Vegas, Phoenix, New Orleans, Tampa, Ontario, California, & Orlando. >> Ed. Note>> Given that the U.S. trade deficit in goods increased to US$45.3Bn in July 2003, as imports increased more than exports -- and considering that very huge bail-out of the airline with U.S. taxpayer money that United Airlines received after Sept. 11 -- we rather expected to see United buying Boeing planes from the U.S., not Airbus from Europe, for the new LCO operation. Nothing against Europe, but whose money saved United? You know, the taxpayers at Boeing. Did we U.S. taxpayers miss something?

***Bye Bye Boeing ....... as Lufthansa Cargo plans to sell its eight 747-200 freighters within a year & switch entirely to smaller, but more efficient, MD-11 aircraft as part of a wider fleet restructuring designed to reduce operating costs & free up capital for future investments. Well, at least Boeing now also owns the MD-11.

***Service Provider Buys Service Buyer ........ as Integres Global Logistics, a provider of software for supply chain visibility, has acquired Key Transportation Services, an air freight forwarder with offices in Chicago & Dallas. Integres Global Logistics is based in Rancho Cordova, CA. Jack Compton, owner of Key Transportation, will continue to manage the company as a unit of Integres.

***Everybody Loves Hartsfield ....... as it has enjoyed a 6.05% increase in cargo traffic for the 6 months to July above same period in 2002, and expects further growth during autumn, which annually accounts for the busiest shipping months of the year. British Airways' new service at Hartsfield adds a 3rd 747-400 all-cargo flight to London-Stansted continuing to the Middle East. British Airways, China Airlines, Polar Air Cargo & C A L Cargo Airlines have also announced additional cargo flights.

***Easy As Ezycargo ....... as a new internet-based cargo portal has been launched by Global Logistics System (HK) Co. (GLSHK) & Cargo Community Network of Singapore. The portal has initial support from 4 leading Asia-Pacific airfreight carriers: Cathay Pacific Cargo, Japan Airlines Cargo, Qantas Freight & Singapore Airlines Cargo. Customers will be able to make allotment & free-sale bookings, review flight schedules & check cargo space availability as well as track & trace their shipment. The service will also offer up-to-date AWB stock management, e-invoicing & e-payment facilities. Ezycargo

***Charles McKinley's Big Day Out ......... as on Sept. 9, a New York man trying to save a few dollars on his air fare is under investigation for stowing himself in an air cargo crate that was delivered to his parents' home near Dallas -- a 2 day, 1,500-mile trip via Pilot Air Freight from New York to Texas, with a stop or two along the way. McKinley was delivered at the front steps of his parents' home in the Dallas suburb of DeSoto in a box marked as containing computer parts. He was spotted by a delivery man who noticed a pair of eyes staring at him through the wooden slats in the crate & then called police. McKinley, from Brooklyn, apparently packed himself in the box -- perhaps with the help of a friend -- and sent himself air express on a Kitty Hawk freighter flight that went from the New York area, with a stop near Niagara Falls, New York, to Fort Wayne, Indiana. His crate was then sent to Dallas/Fort Worth airport on another plane & delivered to his parents' home. Lucky for McKinley that he was traveling in pressurized cabins with climate control, because he could have easily been killed if he flew in a cold, unpressurized compartment. He was charged with stowing away on a cargo jet. He could face up to a year in prison & a US$1,000 fine if convicted. For the shipment cost -- Charles could have flown 1st class! Dah!

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

4. FF World Ocean Briefs ______________

***Advancing The Advance Manifest Rules ......... as U.S. Bureau of Customs and Border Protection officials said they will not meet the Oct. 1 target for issuing final rules requiring freight carriers to pre-file cargo declarations prior to arrival at the border -- maybe by Oct. 10. The rules are primarily designed to prevent terrorists from smuggling weapons or themselves into the U.S. through the Int'l freight system. Customs wants shipping data in advance so it can run it through targeting systems, make risk assessments and notify a carrier to hold the cargo for further examination if necessary. Customs is already collecting ocean manifests 24 hours prior to lading in foreign ports under a separate agency initiative predating the Trade Act. Customs averages about 20 "do not load" messages to carriers per week. Most holds involve issues of incomplete or vague data, and companies typically are able to provide the information in time to get the cargo on the vessel before it departs.

Customs has agreed to make special software fixes to its vessel manifest system to help non-vessel-operating common carriers that complained that steamship lines were not releasing their cargo in a timely fashion after Customs clearance. Under the 24-hour rule, NVOCCs were allowed to use the AMS program previously reserved for carriers, but had to take charge of their shipments after they reached the port. The redesigned system is supposed to identify the house bill of lading & the master bill of lading in a consolidated shipment so that it is clear to the carrier exactly what Customs has approved for release and allow the NVOCC to move its shipment off the terminal.

***State of The Union ......... as total number of container ships in the world was 2,905 as of Jan. 1 2003 -- with a total capacity of 5.916 million TEU, an increase of 11.6% from last year, according to a report by NYK. The report said the number of new containers ships completed last year increased by 8%, with an additional capacity of 683,000 TEU, 25% of which belonged to 6,000 TEU vessels. Last year, the number of container ships scrapped amounted to 67,000 TEU, while new orders came to 430,000 TEU, a drop by 6% compared to the year before.

***Confidedntial Service Contracts For NVOCCs? ........ as the Federal Maritime Commission (FMC) has received new petitions & issued time extensions relating to efforts by non-vessel-operating common carriers (NVOCCs) to enter into confidential service contracts. Accordingly, Bax Global, C.H. Robinson, Ocean World Lines, United Parcel Service & the National Customs Brokers & Forwarders Assn. of America all have pending petitions on file. This is the BIG issue to follow.

***Canada's 96-hour Notification Rule In Effect ....... as all vessels of 500 tons gross tonnage or more must now request clearance at least 96 hours prior to entering Canadian waters from seaward. Where the estimated time of arrival of the ship in Canadian waters is less than 96 hours after the time the ship departed its last port of call, the request is to be submitted as soon as practicable.

***Maemi Blew Big Time ....... as South Korea's worst-ever typhoon caused US$1.3Bn in damage, battering the nation's main port & industrial southeastern coast and leaving 121 people dead or missing. Maemi blew into the country with such intensity (135 mph) this month that it tossed shipping containers into the air and toppled 8 giant cargo cranes & damaged three others in Busan, South Korea's largest port. Government officials said it would take at least 15 months to restore the cranes. See The Damage.

***FMC Complaint Resolved ....... as it has entered into a settlement agreement with the major ocean carrier agreements & members who serve inbound waterborne U.S. trades with Asia, including the Transpacific Stabilization Agreement (TSA) & two TSA-related bridging agreements. The settlement addresses carrier practices & provides, among other things, for payment of US$1,350,000 in lieu of a civil penalty & for the carriers to refrain from certain practices involving discussion and agreement on rates & negotiation of service contract terms particularly affecting NVOCCs.

***Imunity Endangered ...... as the Tripartite Shippers' Group comprising organizations representing shippers in the U.S., Europe and Asia, has called for the outright elimination of the liner carriers' antitrust immunity that permits liner conferences and discussion agreements to set rates. In a joint statement signed after the group's annual meeting in Margaux, France Sept. 11-13, the Tripartite Shippers' Group said it believes the primary function & role of ocean carriers' conferences & discussion agreements "have far outlived their original purpose."

***World Maritime Day....... as 25 Sept. marked the celebration of the annual event which is used around the world to focus attention on the global importance of the maritime industries to world trade & to emphasize in particular Int'l Maritime Organization's work to promote safety & security in shipping and to help protect the marine environment.

***See-Through Containers ....... as the Maritime Assn. of the Port of New York and New Jersey has been awarded an US$850,000 port security grant by the U.S. Transportation Security Admin. (TSA) for development of an acoustic detection technology that can rapidly check for threats inside cargo containers without disturbing their contents or presenting hazards to nearby personnel. Developed by entrepreneur Alan Greene & inventor Frank Rees of Greene Rees Technologies, LLC, the Parametric Ultra-wide Band Sounding (PUBS technology promises to revolutionize the complex, potentially hazardous process of remotely examining loaded cargo containers. The technology will acoustically "look" inside a container by sending out sound signals & analyzing "backscatter" data to rapidly & reliably detect threats. Ultra Wide Band (UWB) radar has been suggested as a possible solution. However, its ability to only examine the morphology of the cargo involves examining numerous container-cargo "images," generally, without the benefit of 3-D tomography afforded certain forms of airport luggage interrogation. PUBS technology overcomes the compelling need for metallic wall-penetration while matching the image-resolution powers of UWB, but does so through use of non-linear-acoustically generated "impulses" rather than its ultra-wide-band microwave radar counterpart. Since every material has its own distinctive molecular make-up, PUBS technology aims at revealing the nonlinear-acoustic signature of any item so it can be readily identified against a database.

***Australia Opts For Security ....... as security legislation to help safeguard Australia's maritime transport system has been introduced into the country's Parliament. The government will develop systems under the new legislation to regulate, monitor & audit security measures to ensure compliance with the new arrangements, with the Dept. of Transport & Regional Services assuming the role of regulator. The Bill gives effect to the Int'l Ship & Port Facility Security Code, which was developed by the Int'l Maritime Organization to address maritime security around the world. The Code is to be implemented by July 2004. "A failure to meet the IMO requirements has the potential to have serious consequences," said a spokesperson.

***Nigeria On Pirate Patrol ...... as it has received a 3rd U.S. warship under a security cooperation program aimed at ending crude oil theft, civil unrest & piracy in the Niger Delta. The NNS Nwambe is one of 7 former U.S. Coast Guard cutters being refurbished and sent to Nigeria by the U.S. Dept. of Defense. The first 2 ships arrived in March & the remainder are due shortly. Priced at US$3.5M each, the vessels arrive without arms & ammunition but are fitted with cannons & machine guns by the Nigerian authorities before deployment. Armed gangs mounted on barges prowl the Niger Delta swamp to find exposed sections of pipeline. Using a technique known as hot-tapping, they puncture pipelines & fit their own valves to divert tons of crude into their boats. Nigerian authorities estimate that criminal gangs operating in the oil region are stealing 200,000-300,000 b/d of crude oil&emdash;about 10-15% of daily production&emdash;and transferring it to ocean-going vessels for sale abroad.

***New Haz Mat Rules ....... as the U.S. Coast Guard as issued a final rule updating its regulations relating to handling of packaged & bulk-solid dangerous cargo at waterfront facilities. These updated regulations reflect improved safety procedures & modern transportation methods, such as the use of containers. The rule also updates requirements for handling these dangerous cargoes and incorporates industry standards. The changes come into effect on Oct. 27, 2003. The New Rule.

***New Can Regs? ........ as legislation designed to shift responsibility for the safety of container, chassis, & trailers&emdash;the "roadability" of those units&emdash;has split the intermodal world. H.R. 2863 is the Intermodal Equipment Safety & Responsibility Act of 2003. That bill would make safety the responsibility of the ocean shipping lines & railroads that own the equipment, rather than the motor carriers that pick up & deliver containers & chassis. In addition, the bill would require federal authorities to inspect equipment & maintenance records at least every 3 months, and to inspect & repair equipment each time prior to offering it to a motor carrier.

***Can Stack ....... as the U.S. Occupational Safety & Health Admin. has proposed a rule that would permit vertical tandem lifts of empty shipping containers at U.S. ports. A vertical tandem lift (VTL) is the lifting of 2 intermodal containers together, one on top of the other, connected by semiautomatic twistlocks. The proposed rule would allow VTLs of empty containers with a combined weight not exceeding 20 tons. OSHA has asked for additional comments "that pertain to the risk of lifting loaded versus empty containers" before proceeding further. Comments on OSHA's proposal for VTLs must be submitted by Dec. 15. Contact Paul Rossi, OSHA, Office of Maritime, Directorate of Standards & Guidance - (202) 693-2222.

***MOL To The Rescue ....... as it has achieved good results in initial tests of technology to purify seawater being pumped into a vessel's ballast tank. The company said it is using an exclusive filter that offers safe & certain removal of marine organisms. The filter also resolves clogging problems with a unique cleaning process. When a vessel sails without cargo, she must take on seawater as ballast to ensure stability & safe navigation. Int'l Maritime Organization (IMO) estimates say some 12 billion tons of ballast water is moved around the world annually. Aquatic organisms moved from one area to another in ballast water may infest the new area, affect its ecological systems, & destroy the marine environment, and adversely affect economic activities such as commercial fishing. For example, in the U.S. Great Lakes the problem is critical.

***Shihu -- New Port Choice ........ as the Chinese Government now allows foreign vessels to load & unload at Shihu port in Fujian Province following the granting of "Category-One" status to the port. The port was built in 1998 & has 3 berths which can handle 3,000, 10,000 and 30,000 tons of freight, respectively. The port is also constructing a 50,000 ton berth.

***Big Ditch Record ....... as on July 3, 2003 a record 24 Panamax ships transited the Canal. Furthermore, on the same day a record 934,488 Panama Canal/Universal Admeasurement System (PC/UMS) tons of cargo were transported through the Canal.

***Ditch Mules ....... as the Panama Canal Authority has purchased 34 locomotives from the Mitsubishi Corp. as part of a multiyear contract, 16 of which will be assembled in Panama by Mitsubishi & Canal Authority employees, starting in June. The locomotives, which run on tow tracks along the walls of locks on the canal, are used to keep ships centered in the lock chambers by means of cables attached to the vessels. Each locomotive weighs 55 tons, operates with two 290 horsepower traction units, & has a towing capacity of 311.8 kilonewtons.

***Jammed By The "Condom of Death" .......... as B.C. Ferries is responding to criticism by a former employee that its evacuation procedures are unsafe for some passengers, because some say that elderly, disabled & infant passengers would have little chance of surviving a major emergency at sea. In the event of an emergency, able-bodied passengers are asked to abandon ship by jumping down evacuation chutes. They land on an inflated platform, and are then directed to waiting life rafts. The equipment is nicknamed "the condom of death" following a series of mishaps during a training exercise One person who jumped down the chute hurt his back. The next person to go down the chute broke his shoulder when he came down on top of the 1st man. Both men wound up "jammed" in the bottom of the chute. One expert says he's not surprised a woman died in one of the chutes during an exercise in England.

***Bah Bah Black Ship ........ as animal welfare group the RSPCA has claimed almost 6,000 of 57,000 sheep are now dead on board the M/V Cormo Express, the sheep ship stranded in the Persian Gulf since Aug. 2003. RSPCA will launch a US$84,000 national advertising campaign to highlight the plight of the sheep. Industry body Livecorp says an advertising campaign by the RSPCA would be outrageous waste of money. Livecorp says if the RSPCA was really concerned about the animals' welfare, they would be better off putting their time and money to helping find a port willing to take the sheep. Meanwhile, Australia is still negotiating to find a buyer for the stranded sheep. Australia denies that the Saudi Government's decision to reject the shipment has nothing to do with the disease, "scabby mouth" or that it was in retaliation for Australia's involvement in the U.S.-led war against Iraq.

***FMC Revokes OTI Licenses ........ as failure to maintain valid bonds resulted in lost licenses for Cargo Carriers Ltd. of Cheektowaga, NY; Exim Forwarding in Houston; Full Service Logistics of Rancho Dominguez, CA; & JCW Int'l Group in South San Francisco.

***Proudly Wear'in The Green?............ as unlucky cruise passengers who took a dip in a ship's luxury pool last week had their hair turned bright green. Chlorine in the water on the P&O cruise ship M/V Oceana dyed the hair of 9 passengers when they went for a swim. The on-board hairdressing staff had to work to change their hair color back to normal before the ship docked at Southampton. A spokeswoman for P&O Cruises confirmed that the incident had happened & that, as a "gesture of goodwill" (a term suggesting fear & loathing of lawsuits) the passengers had been referred to the ship's beauty salon for "corrective treatment". The swimmers were men & women, all with either very fair or dyed hair.

***Arrr! .... as Long John Silver's restaurant chain has celebrated "Int'l Talk Like A Pirate Day" this month. Long John Silver's is named after famous pirate & cook that sailed upon the Hispaniola in the popular book, "Treasure Island." Talk Like A Pirate Day began in 1995. Go online to select your own pirate name. "Talk Like a Pirate Day could one day be as big as Halloween," said Mike Baker, chief marketing officer of Long John Silver's. Mike needs to increase his medication.

***Squid Killers ....... as shockwaves from scientific tests carried out by the Spanish Navy have killed 4 giant squid - one the length of a bus - off the Spanish coast in recent days, the head of a marine protection agency has claimed. Luis Laria, president of the marine protection agency, said the navy ship Hesperides was working in the area and the shockwaves from equipment used to study the ocean floor had killed the squid. The giant squid, the mythical monster that attacked Capt. Nemo's Nautilus in the Jules Verne adventure "20,000 Leagues Under the Sea", is the world's largest invertebrate & lives as deep as 2,000 meters (6,560ft).

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

1779 - Captain John Paul Jones, in Continental Navy frigate Bonhomme Richard, captures HMS Serapis.

1918 - USS Tampa lost with 118.

1922 - Report on observations of experiments with short wave radio at Anacostia in the District of Columbia starts Navy development of radar.

1925 - Submarine S-51 (SS 162) sinks after collision with SS City of Rome off Block Island, Rhode Island.

1931 - Keel laying at Newport News, Va., of USS Ranger (CV4), 1st ship designed & constructed as an aircraft carrier.

1941 - In 1st successful U.S. Navy escort of convoys during World War II, Navy escorts turn over HX-150 to British escorts at the mid-ocean meeting point. All ships reach ports safely.

1941 - Launch of first Liberty ship, SS Patrick Henry, in Baltimore.

1942 - Armed Guard on SS Stephen Hopkins engages German auxiliary cruiser Stier and supply ship Tannenfels. Stephen Hopkins & Stier both sink.

1944 - Battleship USS West Virginia (BB 48) reaches Pearl Harbor & rejoins the Pacific Fleet, marking the end of the salvage & reconstruction of 18 ships damaged on Dec. 7, 1941. One of the Pearl Harbor survivors was back to do her worst.

1944 - Special Air Task Force (STAG-1) commences operations with drones, controlled by TBM Avenger aircraft, against Japanese in Southwestern Pacific.

1950 - First Marine Division rescues Seoul, South Korea.

1957 - Bathyscaph Trieste, in a dive sponsored by the Office of Naval Research in the Mediterranean, reaches record depth of 2 miles.

1957 - In project Stratoscope, Office of Naval Research obtains sharp photographs of sun's corona from 1st balloon-borne telescope camera.

For More Information.

***Volumes >> Port of Auckland volume was up 8% to 652,474 TEU for the 12-month period ended August 31, compared to the 12 months ended Aug. 31 2002, and up 4% year-on-year compared to Aug. 2002 >> Port of Savannah volumes have continued their double-digit growth during the 1st 2 months of its latest fiscal year as for July & Aug., Savannah handled 260,790 TEUs, up 14.2% over year-earlier period. >> Qingdao Port in east China's Shandong Province saw cargo volumes top 100 million tons for the year, through Sept. 20, up 14% over the year-earlier period, as container volumes reached 3 million TEUs, up 26% over the same period in 2002. >> Sri Lanka's Colombo port saw transshipments in Aug. increase by 24.4% year-on-year to 124,067 TEU. >> Port of Los Angeles, the largest North American container port, increased 8% on inbound containers in Aug. to 354,400 TEUs, up from 327,500 TEUs in Aug. 2002.

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5. The Cargo Letter Cargo Damage Dispatches

**Back By Popular Demand**

We're sorry, but there were so many sinkings, explosions, pirate attacks, fires, cargo mishaps, battles on the water & other disasters at sea that we do not have room to print even the highlights this month. Many people lost their lives at sea this month!! Grounding of the M/V Sealand Express! Collision of M/V Sea Liberty with M/V Arabian Express!

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

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

>>> Our Current Photo Feature ..... "Pelicans Peril" -- an amaz-z-z-z-ing story of a container vessel.

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.

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

Canadian National Railway Fact Book ......... available on the web site.

Heightened Security Slows U.S. Cross Border Traffic

London Shipping Law Center

Performance of Customs Business by Parent & Subsidiary Corporations ....... Final Rule on "Customs Business," (2003 Federal Register. (Vol. 68> Search terms: 47460.)

Product Lifecycle Management (PLM) Applications

Society of Marine Arbitrators

The High Cost of Supply Chain Data Errors

U.S. Coast Guard ....... port security best practices.

USS Midway Museum Project Takes Shape

Virtual Warehousing

PRODUCTS>>>>>>>>>

OrderPro Logistics .......... a new website.

SAMSys Technologies Unveils New UHF RFID Reader

Wheat Wireless Services ...... new high-speed service provides Internet services such as voice, video, data & e-mail to vessels at sea.

EVENTS>>>>>>>>>

4th Annual Marine Finance Forum ........ Oct. 16, Harvard Club, New York City

13th Annual Int'l Air Cargo Conference & Exhibit ......... May 10 - 14 2004, Beau Rivage Resort & Casino in Biloxi, Mississippi.

2003 American Trucking Assn. Management Conference & Exhibition ......... Oct. 19-22 San Antonio Marriott Rivercenter & San Antonio Marriott Riverwalk

ASBA/BIMCOAnnual Cargo Conference .......Oct. 23-24, 2003, "Trends in Int'l Commodity Movements," Wyndham Miami Beach Resort Miami Beach, Fl.

Federal Maritime Commission Seminar ....... Boston, Oct. 22, 2003 -- overview of responsibilities of vessel operators, ocean intermediaries, & maritime shipping service users in U.S. foreign trades.

LA Harbor Transportation Club ........ 6pm Oct. 9 2003, The Reef Restaurant, Port of Long Beach. Speaker: John Doherty, CEO, Alameda Corridor Transportation Authority. Agency that built the US$2.4Bn freight rail expressway on time & on budget has formed an ad hoc committee to explore possibility of expanding the agency's mission to include other projects that improve the movement of goods in the region.

Los Angeles Transportation Club ........ 80th Annual Meeting & Election of 2004 Officers, Marriott Norwalk Hotel, Norwalk, California

Marintec China 2003 .......... 2- 5 Dec, 2003, Shanghai New Int'l Expo Center, Pudong, Shanghai. Both Marintec China & Port China will be held at Shanghai -- world's 4th busiest port & center of the China's maritime industry!

Marine Insurance Club ........6.30 p.m. on Thurs, 2nd Oct. 2003, Ming An Insurance Co., (HK) Ltd., 22nd floor, Ming An Plaza, 8 Sunning Road, Causeway, Hong Kong. Samson Lok will speak on a hot topic: ISPS &endash; Int'l Ship & Port Facility Security Code.

Seatrade London Int'l Maritime Convention ....... set to return Oct. 18-20, 2005, ExCeL in London's Docklands. More than 3,500 participants from 47 countries.

Supply Chain Excellence 2003: Procurement & Inventory Strategies Symposium .......... Oct. 17, 2003, Chicago.

Supply Chain Management: The Truth Beyond the Promise ........San Francisco, CA,11/3/03-11/4/03

World Maritime Technology Conference ....... 17 - 20 Oct. 2003, San Francisco.

FOR FUN>>>>>>>>>

Create Your Own 3D World

Johnny Cash ....... his 2003 VMA-winning video, "Hurt."

StarTrek Elite Force II

Game Trailers

Made For Mobile Short Films

Mafioso Radio Network

"The Weather"

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

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

Astra Oil Co. Vs. Rover Navigation

U.S. 2nd Circuit Court of Appeals

Sept. 22, 2003

Court ruled that a 3rd party who is closely connected to one of the parties to a marine contract may enforce an arbitration clause. In the instant case, a trading company entered into a voyage charter with a ship owner. The charter contained warranties of speed & seaworthiness and included an arbitration clause for resolving disputes. When the time-sensitive cargo arrived late, plaintiff (an affiliate of the trading company) demanded arbitration. Defendant owner contended that only the charterer could enforce the arbitration clause. The court held that the arbitration clause could be enforced by plaintiff since the claims arise under duties allegedly created by the charter & plaintiff has a sufficiently close relationship to the charterer. Astra Oil Co. Vs. Rover Navigation

***The Importance of "Terms & Conditions" ...... as FedEx has won its appeal of an earlier decision handed down by a U.S. District Court in San Diego. As a result, the company will not be liable for refunds of transportation charges for shipments delayed due to the strike by the Int'l Brotherhood of Teamsters in 1997. Despite clear language in the FedEx "Service Guide" indicating that the FedEx Express Money Back Guarantee does not apply to delays due to strikes and the company's press release announcing the suspension of the money-back guarantee during the period of the strike, 2 shippers represented by class action trial lawyers filed a lawsuit against FedEx Express. The district court had earlier issued a ruling, without a trial, which would have resulted in payment of damages totaling approximately US$70M. Read About "Terms & Conditions"

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

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The Cargo Letter Correspondents:

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

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

Cameron W. Roberts, Esq. (Countryman & McDaniel)

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