Good Monday Evening from our Observation Deck......overlooking the officially designated "Cargo City" area and...... Runway 25-Right, at Los Angeles International Airport, voted "Best Cargo Airport in North America.". Here is what happened in our industry during January 2008!

Last week a United Nations Commission on Int'l Trade Law (UNCITRAL) working group meeting in Vienna adopted a draft convention on contracts for the Int'l carriage of goods wholly or partly by sea. This could change the way that all ocean cargo claims are handled in the future -- and your insurance premiums. See World Ocean News.

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

Contribute your knowledge, stories & company information.......by e-mail to The Cargo Letter.  We strive to bring you useful information which is timely & topical.  Be sure to visit our website.

The Cargo Letter Archives of Past Issues

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

INDEX to The Cargo Letter:

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

1. Freight Forwarder Trade Briefs ______________                            

2. The Cargo Letter Financial Page ______________                               

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

3. Freight Forwarder World Air Briefs ____________                         

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

4. FF World Ocean Briefs _____________________                                            

5. The Cargo Letter Cargo Damage Dispatches _____        

**Back By Popular Demand**

OUR "D" Section:  FF in Cyberspace***

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

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

7. New Transport Related Legal Cases ___________            

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 Back To Main Page

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

  1. Freight Forwarder Trade Briefs _____________ 

***C & McD South East Asia Training Gets High Marks ..... as all "excellent" were the ratings of senior executives of Malaysian Airlines, Singapore Airlines, Royal Brunai Airlines, short sea carriers, NVOCCs, port officials, transport insurance brokers & forwarders who attended a series of two day training programs conducted by Michael McDaniel & Byron Countryman of the Countryman & McDaniel Law Firm in Singapore & Malaysia during Feb. 2008. [It is for this reason that there was no The Cargo Letter for Feb. 2008.] With a multimedia approach, the program was a 2 day presentaion which traced the early concepts of transport risk theory, through shipping history to the modern requirements of major Int'l claims handling and the challenges of port security as seen through the Customs-Trade Partnership Against Terrorism (C-TPAT) program. The program feedback was so successful that organizers The Asia Business Forum are now scheduling new expanded programs for the carriers & forwarders in Hong Kong, Shanghai, Singapore & Kuala Lumpur. During the recent educational tour, Countryman & McDaniel also took time to investigate & sail the Malacca Straits into Indonesia, that major trade conduit between Malaysia & Indonesia which is the center of current modern pirate activity.

***Daily Vessel Casualties ...... as our website feature has now been modernized & updated as the most complete Int'l daily casualty report for which no fee is charged. If you don't want the high fees of Lloyd's -- this service provides a daily insight to the hard realities of maritime risk. Editor Christoph Wahner, Esq. has gathered a crew of reporters, second to none. This in large part may explain why the Cargo Law website has now reached a volume of over 19,000,000 hits & 500GB of data per month.

***U.S. Economy Continues To Grow ....... as at an 0.6 % annual growth rate in the 4th quarter, according to a final figure issued March 26 by the U.S. Commerce Dept. The reading matched economists' projections, Bloomberg reported. The 0.6% 4th-quarter growth rate followed a 4.9% GDP expansion in the 3rd quarter, which was the highest rate of growth in 4 years, according to Commerce. Some economists said the U.S. economy was currently in recession, which is declined as quarters of negative growth, Bloomberg reported.

***NAFTA Trade Value Grows ........ as December 2007 value was up 3.1% year over year. In fact only 2 months in 2007 showed declines in the value of monthly U.S. surface transportation trade with NAFTA partners, Mexico & Canada. Those months were Jan., down 0.9%, & Dec., down 0.2%. Year over year the value of surface transportation trade with Canada was up 3.7%, at US$39.6Bn. Trade with Mexico for Feb. was valued at US$21.3Bn, up 2.1%. There are different pictures for the month for trading partner imports & exports. In Dec. 2007 imports from Canada that moved by truck were down 6.7% year over year, while exports were up 5.0%. Imports moving by truck from Mexico in Dec. were up 6.9%, while exports declined by 3.3%. In order from largest, the top 10 states to benefit from surface trade with Canada are Michigan, Illinois, Ohio, New York, California, Texas, Washington, Pennsylvania, Minnesota & Indiana. Top 10 states trading with Mexico, in order from largest are Texas, California, Michigan, Illinois, Arizona, Ohio, Tennessee, North Carolina, Pennsylvania & New York.

***AES Rule Soon To Be Mandatory .... as the U.S. Census Bureau's Foreign Trade Division is gathering resources to help the export industry comply with the soon-to-be-published rule for mandatory use of the Automated Export System. The new AES regulations will require exporters to file shipper's export declarations a certain number of hours prior to departure depending on the transport mode. The time frames are 24 hours prior to lading for vessel shipments, 4 hours before wheels up for air shipments (with exceptions for nearby countries), 2 hours for rail and 1 hour for truck (or 30 minutes for pre-certified secure carriers). The rule will go into effect 30 days after it is published in the Federal Register and be implemented within 90 days. Since last year, Census has conducted visits to 46 companies that were receiving AES compliance rates of 80% or less. One firm visited had a compliance rate of 10%.

***Is China Losing Its Edge? ...... as the giant is feeling the heat of upstarts, as a pure low-cost manufacturing center, but multinational companies can still benefit by sourcing there if they broaden their strategy to sell to the growing Chinese domestic market, according to a study released this month by the American Chamber of Commerce in Shanghai & consulting firm Booz Allen Hamilton. More than half of the 66 foreign-owned or joint venture companies surveyed in Shanghai believe that other low-cost countries are becoming viable manufacturing alternatives, and nearly 20% said they have concrete plans to relocate or expand China operations to other countries, primarily Vietnam & India. Among the reasons behind the decline in competitiveness are the rising value of the renminbi, wage inflation, difficulty retaining staff & fewer tax benefits. Wages for white-collar managers and blue-collar workers have jumped 9.1% and 7.6%, respectively in recent years.

***China Slowly Coordinates With C-TPAT ..... as U.S. & Chinese Customs officers have conducted the 1st joint security audit of domestic Chinese manufacturers and logistics providers whose customers participate in the Customs-Trade Partnership Against Terrorism (C-TPAT). countries are cooperating on a trial program that would allow U.S. inspectors access to validate the supply chain security practices of Chinese suppliers. U.S. Customs said the pilot project involved examining the supply chains of 3 U.S. importers who source most of their products from China. U.S. officials hope the pilot project will lead to more regular visits of Chinese suppliers as part of the effort to prevent terrorists from secreting weapons in a shipping container for an attack. Since 2003, more than 7,200 total validations have been completed, Customs said, including 3,011 supply chain validations in 2007. That year also saw 2,601 new member certifications and visits to manufacturing & logistics facilities in 79 countries.

***First Sale Rule At Stake ..... as in a move that many consider ill-conceived & ill-timed, U.S. Customs published in the Jan. 24 Federal Register a notice proposing to eliminate the First Sale Rule. Simply stated, this rule allows for the assessment of import duties based on the factory invoice price as long as well-defined criteria are met. The First Sale Rule has been in place since the federal courts upheld it in 1988. Comments on the proposal are due on April 23, 2008. If successful, this unprecedented change in policy will harm U.S. businesses and consumers alike, and textile and apparel products are likely to be among those hardest hit. Over the last 20 years, the First Sale Rule has helped scores of importers reduce the costs of doing business, savings they can then pass on to consumers. By removing this rule, Customs' proposal would raise retail prices on a wide range of consumer goods, hitting middle-class families especially at a time of growing domestic economic uncertainty. The proposal to eliminate the First Sale Rule stems from a decision by the World Customs Organization rather than direction from U.S. lawmakers or courts.

***Customs Rulings For The Public ...... as U.S. Customs has an online system available to the public to allow users to research Customs rulings. The system, called Customs Rulings Online Search System (CROSS), is a searchable database of approximately 146,000 Customs rulings which can be retrieved based on simple or complex search characteristics using keywords. The rulings in the database span the years 1989 to present & the collections can be searched individually or collectively.

***Hasn't Worked That Well With China So Far ...... as on March 7, 2007, the U.S. Consumer Product Safety Commission (CPSC) announced an agreement with Vietnam aimed at improving product safety of goods imported from Vietnam. The agreement calls for information and technical exchanges to implement consumer safety programs. Similar agreements aimed at improving the safety of consumer products have also been signed with other countries including Canada, Chile, China, Costa Rica, the European Commission, Egypt, India, Israel, Japan, Korea, Mexico, Peru & Taiwan.

***New Border Crossing Requested ...... as the Dept. of State has received an application for a Presidential Permit to authorize the construction, operation and maintenance of a new border crossing facility on the U.S.-Canada border at Buffalo, NY & Fort Erie, Ontario. The proposed bridge, which would accommodate vehicles crossing the Niagara River, would be 1.5 miles north of the existing Peace Bridge. The public is also invited to submit comments on or before April 28, 2008 via email.

***Out of The Ground ..... as in a letter to President George W. Bush, American Trucking Associations Pres. & CEO Bill Graves has called on the White House to release oil from the Strategic Petroleum Reserve (SPR) in an effort to curtail the ongoing, historical run-up in crude oil prices which are hampering various sectors of the U.S. economy & the trucking industry.

***Lack of Mexican Interest? ...... as a government report on the Dept. of Transportation's program to allow Mexican trucks into the U.S. said that too few trips have been taken to be statistically valid. DOT's Inspector General's office released the report March 10 on the program. The report found that at the program's 6-month mark, fewer carriers & vehicles have participated than expected. "No reliable statistical projections regarding safety attributes can be made at this point," it said. Transportation Secretary Mary Peters has been very supportive of the program, which allows Mexican trucks to move beyond a traditional commercial border zone of about 25 miles, for access to full U.S. highways. Although DOT records show 3,680 crossings into the U.S. by project participants, only 247, or 6.7%, went beyond the commercial zone, the report said. About 89% of those went to just one state, California. The Teamsters union criticized the program, saying it was leading to unsafe vehicles on U.S. roadways.

***Green Brown ...... as this month UPS has deployed 167 Compressed Natural Gas (CNG) delivery vehicles in Texas, Georgia and California. The CNG vehicles, part of UPS's global alternative fuel fleet, will help reduce the company's carbon footprint and its dependence on fossil fuels. The CNG truck bodies are identical externally to the signature-brown trucks that now comprise the UPS fleet although they will be marked as CNG vehicles. The trucks are expected to reduce emissions by 20% and improve fuel economy by 10%. UPS operates the transportation industry's largest private fleet of alternative fuel vehicles. This deployment brings the UPS "green fleet" total to 1,629 trucks. UPS began deploying alternative fuel vehicles in the 1930s with a fleet of electric trucks that operated in New York City. The company's "green fleet" has traveled 143 million miles since 2000.

***Pedal Off The Metal ..... as less-than-truckload motor carrier Con-way Freight said Monday it is resetting speed limiting devices on its 8,400 trucks to 62 mph from 65 mph to improve fuel consumption and reduce carbon emissions. The Ann Arbor, Mich.-based company estimated the move would save nearly 3.2 million gallons of diesel fuel per year and eliminate 72 million pounds of carbon from the environment. The fuel conservation will save the company US$12.2M per year at US$3.80 per gallon, the average going rate for diesel fuel on March 10. Con-way's annual fuel consumption is in excess of 100 million gallons of diesel fuel per year. The American Trucking Assn. favors a national regulation mandating the use of speed governors in all new medium and heavy-duty trucks preset at a maximum speed of 68 mph.

***ADM Sues "Big 5" Railroads For Fuel Surcharge Collusion ........ as the world's largest agribusiness filed suit Tuesday against the nation's five major railroads, accusing them of violating antitrust laws and colluding to set fuel surcharges. Decatur, Ill.-based Archer Daniels Midland, one of the nation's major rail customers, said in the federal court filing that it has paid the railroads more than US$250M in fuel surcharges since 2003. ADM does not allege that the fuel surcharges are illegal, but alleges collusion among the railroads in setting them. Filed in a Minneapolis federal court, the suit by ADM names Fort Worth, Texas-based BNSF Railway Co.; Jacksonville, Fla.-based CSX Transportation Inc.; Kansas City, Mo.-based Kansas City Southern Railway Co.; Norfolk, Va.-based Norfolk Southern Railway Co.; and Omaha-based Union Pacific Railroad Co. The suit alleges that the railroads worked together through the Association of American Railroads to set the fuel surcharges. The AAR, which is governed by a board including the CEOs of the five railroads, publishes indices used by railroads to calculate the fuel surcharge rates, according to the lawsuit.

***Forward Air In A Pinch ..... as it will buy the transportation firm Pinch Holdings and a related company, AFTCO Enterprises, for an undisclosed sum. These are privately held transport firms based in Houston, and together generated. about US$35M in revenue last year. Pinch provides expedited line haul, local cartage, exclusive use vehicles, customs services, and pool distribution services through a regional network.

***The Very, Very Big, Big Bridge ...... as approval has been given for the building of a bridge that will link Hong Kong, Macao and the western Chinese province of Guangdong. Price will be around the US$7.7Bn which will make it one of the world's most expensive and ambitious infrastructure projects The 29.6km bridge, first proposed 25 years ago will connect Hong Kong on the eastern side of the Pearl River with Macao and Zhuhai in the west to create a regional economic hub. It is expected to cut travel time between Zhuhai, in Guangdong, and Hong Kong from about 3 hours to 20 minutes. As a fan of the Hong Kong to Macau hydrofoil service -- this is amazing! But will the bridge have cocktail service? McD Check out the illustration.

***Sorry, Your Train Will Be Delayed -- China Needs The Copper ..... as with stopped trains, stolen phone lines & pilfered power cables, Australians are paying a hefty price for China's pre-Olympic building boom, police said on March 13. Organized gangs are being blamed by authorities for stealing copper cabling worth millions of dollars, selling it to China to help construction of buildings including Beijing's "Bird's Nest" National Stadium, site of Olympic ceremonies and track events. "The theft of this stuff has caused the train system to shut down for between 5 & 7 hours. They are not just taking small lengths. They are taking up to 500 meters at a time," Victoria Police detective sergeant Barry Hills told Reuters. In recent weeks, police in Australia's 2nd most populous state have seized more than 15 tons of stolen copper cabling stashed in shipping containers and warehouses. China is the world's biggest copper user, with consumption expected to reach 5 million tons in 2008, up from 4.8 million tonnes last year, according to China's chief copper smelter Jiangxi Copper Co. Ltd. Most is used in fast-expanding power grid infrastructure, as well as construction, electronics & machinery manufacture. Thousands of Victorian commuters have been left stranded by several copper robberies, with thieves risking death by electric shock to steal the precious metal from rail networks for the energy-hungry Chinese market. In neighboring New South Wales state, the government has urged people to help prevent the theft after robbers ran off with communication cables and copper from electricity depots, air-conditioners & scrapped radiators. Australia is not alone. Surging demand in India & China is also driving a wave of copper thefts in the U.S. & the UK, making public utilities an attractive target.

***Thank God They Fully Secured The U.S. Border? ...... as Mexican soldiers battling a violent drug gang & corrupt local police confiscated a sport utility vehicle decked out with extras worthy of a James Bond movie. Cartel members rammed their SUV into a military truck patrolling in the state of Tamaulipas and threw a hand grenade before making their escape with the help of local police, the army said in a statement late March 18. Following a shootout with the gang, soldiers said they arrested four municipal police & confiscated an armored Jeep Grand Cherokee equipped with a smoke machine & spike sprayer meant to deter pursuers. Soldiers also confiscated dozens of rifles, pistols and hand grenades, 3,000 rounds of ammunition and US$20,000 in cash, the army said. President Felipe Calderon has deployed thousands of soldiers and federal police to hot-spots across Mexico, where cartel violence has killed more than 300 people so far this year and left more than 2,500 dead in 2007. Soldiers on busting drug smugglers in Mexico often uncover federal police uniforms, sophisticated radio equipment and even gold-plated pistols & assault rifles. March 18, police arrested a woman on suspicion of overseeing a network of spies that tracked police for the powerful Gulf drug cartel, which dominates smuggling in the state of Tamaulipas. Geeez, when will the U.S. secure its border?

***Old Postmarks .... as a woman who worked for the German postal service has been suspended after police found 29,000 undelivered letters at her home, a prosecutor in the western town of Giessen said on March 10. Some of the letters date from 15 years ago, but most were mailed in the past 5 years. The woman appears to have kept them because she hoped to find money inside, but investigators did not yet know how much cash the pile of correspondence yielded. Prosecutors said she will face charges of "breach of professional secrecy and the postal code" and risks up to 5 years in jail if found guilty. A postal spokesman said all the letters will be passed on to their original destinations. The letters will be accompanied by a note presenting apologies. "The vast majority of people who work for us are honest and reliable and are also disappointed about what has happened," the postal service said.

***Now We Can't Even Find Our Own Weapons of Mass Destruction ...... as a U.S. Defense Logistics Agency depot in Utah mistakenly shipped fuses for a Minuteman intercontinental ballistic missile to Taiwan instead of batteries for a helicopter. The U.S. Defense Dept. said it has "regained control of four non-nuclear nose cone assemblies for a Minuteman missile mistakenly sent to Taiwan in 2006." Air Force Secretary Michael W. Wynne announced the snafu during a news conference at the Pentagon on March 26. The Pentagon said the nosecone assemblies & associated electrical parts are proximity fuses that sense when the missiles approach the ground. It said while not technically "triggers," a nuclear warhead atop a Minuteman would not detonate without the signal from these devices.

***Military Transport "Fuel" Stop ...... as a Russian tank crashed through a villager's house March 4, after the crew stopped to buy more vodka at a nearby shop. Footage from a mobile phone camera showed the tank hitting a corner of the house and a laughing, and apparently drunk, driver awkwardly trying to clamber aboard with 2 bottles of vodka. "Get him out of the tank," screamed a woman in the village in the Urals. On March 7 the army promised to pay compensation and said the tank must have been broken & fallen behind a column heading to a test site for exercises. Earlier it said the vehicle slid on melting ice. "Of course, there were violations, but the crew acted in good faith to catch up with its unit," said Colonel Konstantin Lazutkin, spokesman for Russia's Volga-Urals Military District. "Thank God, they didn't shoot," the house owner said on the video

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  2. The Cargo Letter Financial Page ___  

**Alpine Air Express. UP 26% as net income after taxes to $1,097,544 for 1st quarter in 2008.

**A.P. Moller - Maersk. UP with a 15.3% increase in net profit for 2007 of US$3.4Bn.

** Cathay Pacific. UP with record profit in 2007 US$901.9M from US$525M in 2006.

**Deutsche Post World Net (owners of DHL), DOWN with a 27.5% drop in net income of US$2.04Bn.

**FedEx Corp. DOWN as 3rd-quarter profit fell 6% to US$393M.

**FedEx Ground. DOWN 3% with a 13% drop in 3rd quarter operating income to US$170M.

**"K" Line. UP with net income of US$596M for the nine-month period ending Dec. 31, a 91% increase in the same 2006 period.

**Kuehne + Nagel Int'l AG. UP with net earnings of US$471M for 2007, up 15.9 % from the previous year.

**Lufthansa AG. UP 106% with a profit after taxes of US$2.4Bnfor 2007, more than double over the previous year.

**Lufthansa Cargo. UP with an operating profit of US$200M in 2007, an increase of 66.4% over the previous year.

**Panalpina. UP with net income of US$187M for 2007, up 14.8% from the previous year.

**PSA International. UP as net income rose 59% to US$1.38Bn, on an 11% increase in revenue in 2007.

**UTi Worldwide. DOWN as 4th-quarter profit fell 20% to US$18M, or 18 cents a share, including a restructuring charge that cut earnings by 6 cents a share. Net income for the full year fell to US$98.7M, or 99 cents, from US$103.5M, or US$1.04.                             

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

3. Freight Forwarder World Air Briefs ___

***Aloha Oe To Aloha Airlines ..... as late March 30 that it will halt all passenger service after March 31, signaling the end of an airline that has served Hawaii for more than 60 years. Aloha, which filed for Chapter 11 bankruptcy protection on March 20, was a casualty of fierce competition and rising fuel prices. The airline said it will stop taking reservations for flights after March 31. Aloha has suffered since Phoenix-based Mesa Air Group Inc. launched a new interisland carrier called go! airlines in 2006, triggering a local airfare war. Aloha Airlines was founded in 1946. United will cover the tickets for the thousands of stranded tourists & cargo. Aloha Air Cargo continues.

***Pilots Give Thumbs Down To Delta-Northwest Merger ........as the inability of pilots for the 2 airlines to reach agreement was the deathblow to the proposed merger. Industry analysts felt that combining the 2 major US carriers would have helped alleviate financial problems for both. If the merger were to take place there was speculation that other domestic airlines would have had to follow suit in order to remain competitive. In particular the idea emerged that Continental would work a similar deal with United. The stumbling point for pilots has to do with issues of seniority. Delta executives are reported to have said they would not move ahead with the merger unless their employee seniority was maintained. As pilots from Delta & Northwest entered negotiations, it became apparent they would not be able to reach agreement on the merger of their respective seniority lists. The merger is effectively dead at this point. Delta has announced a 10% cutback in its domestic capacity during the 2nd half of this year. As part of its restructuring since leaving bankruptcy last year, Delta has begun emphasizing its Int'l operations. Delta is reported to be offering voluntary severance payouts to about 30,000 of its 55,000 full-time employees.

***EU-U.S. Air Transport Agreement Now In Force ..... as on March 30 for the first time European airlines can now fly without restrictions from any point in the EU to any point in the United States. "This marks the start of a new era in transatlantic aviation," said Jacques Barrot, VP of the European Commission in charge of Transports. "This Agreement will bring more competition and cheaper flights to the U.S." This agreement is the most ambitious air services deal ever negotiated. The two biggest aviation markets, encompassing 60 percent of world traffic, will cooperate closer in all fields of aviation policy. In May 2008, the European Commission will engage in 2nd-stage negotiations with the U.S. "A fully Open Aviation Area between the EU and the U.S. must remain our objective," added Barrot. All EU airlines are now able to operate direct flights to the U.S. from anywhere in Europe and not just from their home country. The Agreement removes all restrictions on routes, prices or the number of weekly flights. Many airlines will increase the number of flights and destinations. Flights between London-Heathrow and the U.S., for example, will increase about 20% compared to April 2007. With about 50 million annual passengers between the EU and the U.S., the agreement covers by far the biggest international air transport market. The removal of all market access restrictions will stimulate competition. Prices for transatlantic flights are expected to fall. The benefits for consumers could reach up to 12 billion euros over the first five years. The Agreement could lead to the creation of 80 000 jobs on both sides of the Atlantic. The Agreement was signed on April 30, 2007 at the EU-U.S. Transatlantic Summit in Washington. It replaces 21 bilateral agreements between Member States and the U.S. with their nationality restrictions. Until now, EU airlines could not operate flights to the U.S. from outside their home country.  

***Feulish ...... as British Airways World Cargo & American Airlines Cargo increased their fuel surcharge to US$0.85 per kilos, effective March 20. "The market continues to be affected by rising fuel prices and it has become necessary to increase our fuel surcharge in line with our index," said BA management. Meanwhile, European all-cargo airline Cargolux will increase its fuel surcharge on all shipments to 0.95 euros per kilo, or the local currency equivalent, effective March 31. The Luxembourg-based airline's surcharge has been 0.90 euros per kilo.  

***Airbus Delivers 3rd Giant .... as on March 11 it handed over Singapore Airlines' third A380 superjumbo that is now being operated between Singapore and London Heathrow. The Asian airline uses its first two A380s, delivered after a long wait in Oct. & Jan., respectively, on the route between Singapore & Sydney.

***US Airways Shares ...... as profit sharing checks totaling US$49M were distributed to employees on March 17, as the airline celebrates its second consecutive year of profitability since merging with America West in 2005. US Airways' profit sharing program sets aside 10 percent of the airline's annual pre-tax profits excluding special items. The airline posted a 2007 net profit (excluding special items) of US$427M as announced earlier this year.

***Volumes >>> Cathay Pacific & sister airline Dragonair carried a combined 121,101 tons of cargo and mail in Feb., a 7.6% rise year-on-year. >>> Houston-based Continental flew 85.5 million cargo revenue ton-miles during the month, a 5.4% increase compared to 81.1 million cargo revenue ton-miles in Feb. 2007 >>> Lufthansa Cargo's capacity in 2007 was up 2.2%, while its cargo load factor climbed 1.4% points to 69.1% >>> Chicago's United reported an 8.3% increase for Feb. at 163.7 million system cargo ton-miles, driven by a 38.9% gain in mail shipments to 21 million cargo ton-miles.

***Please Bring Your Seats To The Full Upright Position & Hold Your Fire ..... as a gun belonging to the pilot of a US Airways plane went off as the aircraft was on approach to land in North Carolina on March 24, the first time a weapon issued under a federal program to arm pilots was fired. The "accidental discharge" Saturday aboard Flight 1536 from Denver to Charlotte did not endanger the aircraft or the 124 passengers, two pilots and three flight attendants aboard, said Greg Alter of the Federal Air Marshal Service. It is the first time a pilot's weapon has been fired on a plane under a program created after the Sept. 11, 2001, terrorist attacks to allow pilots and others to use a firearm to defend against any act of air piracy or criminal violence. The Transportation Security Administration is investigating how the gun discharged and is being assisted by the Air Marshal Service, Alter said. Officials did not say where the bullet hit. The Airbus A319 has been removed from service, the airline said. If that bullet had compromised the shell of the airplane, i.e., gone through a window, the airplane could have had a bigger problem. Don't keep a round in the chamber, stupid.

***Madam, Human Remains Must Be In Your Checked Luggage ...... as 2 elderly women stunned police at Munich airport when they passed through security with a human skull & several bones in their carry-on luggage, German authorities said March 12. Security staff spotted the human remains in a sealed bag belonging to the women, aged 62 & 63, when they arrived in this southern German city from Brazil and put the bag through an x-ray scanner, police said in a statement. During questioning, the women told authorities they had been carrying out the last wish of a man who died 11 years ago in Sao Paulo to be buried in Italy. After checks with Brazilian authorities, the police allowed the women to continue on to Naples with their baggage intact.              

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

  4. FF World Ocean Briefs _____________                                                   

***Perils of The Sea ..... as the Int'l Union of Marine Insurance said "there has been a dramatic increase in the number of ship total &partial losses, and the upward trend looks likely to continue." The organization of marine underwriters said statistics released last week indicate that the number of total losses of ships 500 gross tons was 92 in 2006. That's a 37% revision upward compared to an early estimate of 67 made this time last year. IUMI's early estimate for total losses for 2007 is 82. But if a similar upward revision takes place over the intervening year, that number could hit 112.

***Terrorrist Threats Afloat ..... as a recent academic report from Singapore said there are "grave shortcomings" with ship security alert systems "which, if not corrected, will leave a critical loophole open for terrorists to easily exploit." The report, The use of SOLAS Ship Security Alert System, was released by the S. Rajaratnam School of International Studies in Singapore. It said the state of the system poses risks for coastal populations from terrorist threats. This is because the systems that are to be used by ships' crew to alert government authorities of imminent terrorist threats will not alert anyone near the ship when danger is about to strike," author Thomas Timlen wrote. "Instead, the information is sent potentially thousands of miles away to the ship owner, who often must verify the alert before advising the so-called 'flag state' of the ship. The flag state then must consider if and how to notify the coastal state where the ship is located. By the time that happens, the terrorist attack would probably already have been completed, with devastating consequences." Timlen said he is expecting the Int'l Maritime Organization to examine the issue.

***Syria Ports At Level 2 ..... as the U.S. Coast Guard said it will impose conditions of entry on vessels arriving from Syria, because ports there are not maintaining effective antiterrorism measures. The conditions were effective March 20, the agency said in a notice. While in Syria vessels must implement measures per the ship's security plan equivalent to "security level 2," place guards at each entry point & make sure guards have total visibility of the ship while the vessel is in port. They have to attempt to execute a declaration of security while in the Syrian port and report all security actions in the ship's log, Major ports in Syria include Latakia and Tartus. When coming to the U.S., ships must report actions to the Captain of the Port prior to arrival into U.S. waters, & place armed, private security guards at the access points to the ship when in U.S. ports.

***TWIC To Be Mandatory In Sept. 2008 ..... as the Transportation Worker Identity Card (TWIC) will become mandatory on Sept. 25, 2008, as proof of identification for all personnel, including commercial drivers, entering seaports in the U.S. The TWIC program requires a full background check prior to issuance of the TWIC card. However, the Canadian Trucking Alliance (CTA) was successful in lobbying for the Free & Secure Trade Program (FAST) background check to be recognized by the TWIC program. This means that drivers who already have FAST cards will not be subject to the duplicate background check, but are still required to obtain the TWIC card. CTA plans to continue its lobbying efforts for elimination of the TWIC application fees for commercial drivers who already have FAST cards. Meanwhile, TWIC enrollment continues to be initiated across the U.S. To check the port enrollment:

***10+2 Gets A Nod ..... as the World Shipping Council has submitted comments to the docket in favor of the proposed "10+2" rulemaking that seeks to gain more advance data on the commercial parties involved in producing, packing, shipping and receiving international ocean shipments. Importers or foreign exporters would be responsible for submitting 10 types of information. Custodial carriers would be required to submit 2 pieces of information about the shipment's status and location on the vessel. U.S. Customs and Border Protection wants to plug the data into its automated targeting system to prescreen containers for potential security risks before they are loaded on a vessel at a foreign port. The new information is widely considered to be an upgrade over the manifest data submitted by ocean carriers 24 hours prior to vessel loading, but many international businesses question whether the extra data will actually improve security enough to justify the information technology and logistics costs.

***TT Club Stays Up .... as the London-based mutual insurer which covers roughly 70% of the world's container fleet, said March 27 its net worth increased 9% to US$148.7 M in 2007, the 6th consecutive year-on-year rise. Net claims "in a largely disaster-free year" for the insurance industry were down 1.7% at US$119.1M.

***Competitor Lines Unite ..... as responding to diminished freight volumes in movements between Asia & the U.S. and increasing costs for bunker fuel, Maersk, CMA-CGM Liner & MSC Line have signed a vessel sharing agreement aimed at enabling the 3 shipping lines to address their cost issues while still serving the market, without having to add capacity. The revised service will use post-Panamax size vessels with capacity of 8,000 TEU on its largest loops, and 4,000 TEU ships on the shorter loop. The larger vessels will provide a greater level of efficiency at less cost for the shipping lines while providing a more environmentally friendly solution, according to comments by Maersk. The new routing will replace current capacity for the lines while providing two extensive new services for port coverage between Asia & California. The string using five 4,000 TEU vessels operated by Maersk under the U.S. flag will call on Kwangyang, Busan, Kobe, Shimizu, Nagoa, Yokohama, Los Angeles & Oakland. Westbound service begins at Los Angeles on March 25, eastbound from Kwangyangon April 12.

***U.S. Volume Way Down ..... as container imports at the major U.S. ports have declined for 7 consecutive months with February's inbound volume estimated to be down nearly 10% year on year, according to the monthly Port Tracker report of the National Retail Federation & Global Insight. The report said inbound traffic will continue to reflect the slowdown in the U.S. economy with weak or negative growth over the next several months. In Jan., the most recent month for which actual numbers are available, import volume at the U.S. ports surveyed by Port Tracker -- Los Angeles-Long Beach, Oakland, Tacoma & Seattle on the West Coast; New York-New Jersey, Hampton Roads, Charleston & Savannah on the East Coast; and Houston on the Gulf Coast -- dropped 4.3% year on year at 1.24 million TEUs.

***Southern California Goes Down ...... as the ports of Long Beach and Los Angeles experienced an 11% drop in cargo vessel calls during the first two months of 2008, with decreases affecting nearly all vessel categories. Declines ranged from 4.7% for container vessels to 83.4% for repair vessels. Total vessel calls at the two ports during Jan. & Feb. declined to 878, a loss of 100 vessel calls over the same period in 2007. March appears to be off to a good start, but it far too early to tell if the trend will hold. Experts predict that a general cargo slowdown would continue through the 2nd quarter, with expectations of increases during the 3rd & 4th quarters of 2008.

***Southern Calfornia Ports Must Grow ...... as although volume was down in the Port of Los Angeles 1.3% in 2007, with China accounting for 55% of Los Angeles' volume, at a value of US$115.2Bn -- the trend is still upward. The two San Pedro Bay ports (Los Angeles & Long Beach) could handle 65 million TEUs by 2030. Six of the 7 terminals in Los Angeles are proposed to be expanded, projects that if completed would lift capacity in Los Angeles alone to 21.5 million TEUs. The other terminal, APM Terminals' Pier 400, could be expanded, through the addition of reclaimed land, if demand drives it.

***MarAd Movie Sees Sea Roads .... as it has released a 17-minute video that provides an overview of the federal government's new Marine Highways Initiative. The MHI utilizes America's coasts and inland waterways to help reduce the number of trucks on the nation's roads and freeways while moving large loads of cargo onto ships and barges. MarAd says the video makes a strong case for expanding the use of America's waterways to expedite short-sea shipping and reduce landside traffic congestion from wheeled, over-the-road transport vehicles. Another benefit would be the reduction of carbon emissions in the environment due to fewer vehicles on the roads. Download is free.

***Sinotrans Rising ..... as the China National Foreign Trade Transportation, the nation's logistics giant, is pushing ahead with plans to sell more assets to its listed unit, Sinotrans. The company is listed on the Hong Kong stock exchange. Last Oct., Sinotrans, a partner of global players such as Deutsche Post's, DHL and Korean Air, agreed to buy US$156.2M worth of freight forwarding, shipping agency & warehousing businesses from its state-owned parent. China National now plans to sell a second batch of assets to Sinotrans. That means it will have floated all of its key assets on the market. Shares of Sinotrans Shipping have fallen 24% this year and Sinotrans has dropped 33%, underperforming a nearly 20% loss in the index of Chinese companies listed in Hong Kong .

***Matson Navigation Boosts Bunker ..... as the Oakland-based Jones Act carrier will raise its shipping fuel surcharge by 2.25% effective April 6, due to rapidly escalating fuel prices. The increase, which will boost the carrier's surcharge to a record 33.75%, will affect Hawaii, Guam, the Commonwealth of the Northern Mariana Islands & Micronesia. Matson last raised its surcharge in Jan.

***Did't Work Out Well With China So Far ...... as the U.S. Consumer Product Safety Commission (CPSC) has created an Import Surveillance Division which is tasked with inspecting, detecting & stopping hazardous products from entering into the U.S.. The port of Long Beach, CA will be the first port to have a permanent CPSC presence, with additional staff to be added at other ports as the new division expands.

***Watch Your Wood ..... as importers are reminded that the loose wooden dunnage, which is used to wedge & hold cargo needs to comply with ISPM 15 requirements. Directive 2004/102/EC implementing the Standard for Phytosanitary Measures (ISPM 15) in March 2005 made provision for a transition period until 31. Dec. 2007 allowing dunnage made from bark free wood that was free from pests & signs of live pests to be used without adherence to the ISPM 15 standard. This transition period has now expired and dunnage which is landed after 1 Jan. 2008 must comply with the ISPM 15 requirements. Plant inspectors in the ports of unloading may call for the re-export or destruction of dunnage not meeting the required standard. More information visit the Forestry Commission in the UK.

***M/V Global Patriot Opens Fire ......as the ship on short term charter to the U.S. Navy's Military Sealift Command, fired warning shots at a small boat approaching the ship as it was preparing to transit the Suez Canal March 24. There were no reports from M/V Global Patriot of casualties. M/V Global Patriot was approached by several boats while preparing to transit the Suez Canal. The boats were hailed and warned by a native Arabic speaker on M/V Global Patriot to advise them to turn away. Other warning steps, including a signal flare, were used to caution the boats. One small boat continued to approach the ship & received 2 sets of warning shots 20-30 meters in front of the boat's bow. All shots were accounted for as they entered the water. The incident is under investigation. The U.S. Navy's 5th Fleet Command is cooperating with Egyptian authorities, including the Suez Canal authorities, through the U.S. Embassy in Cairo. Remember the USS Cole.

***Throughput >>> Hapag-Lloyd's global container volumes increased 9% to 5.45 million TEUs >>> Port of Helsinki handled 11.9 Mt of containerized cargo traffic last year, an increase of 16% on 2006. Container traffic grew by 2% to 435,000 TEU and ro-ro traffic increased by 18%, with the number of trailers reaching 550,000. >>> Throughput at the container terminals operated by National Container Co., Russia's biggest container handler owned 50:50 by First Quantum Petroleum and FESCO, increased 18.6% last year to 1,556,444 TEU.

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

1781 - Continental sloop ship Saratoga goes down will all hands in a sudden gale, three days after sailing from Cap Francais, Haiti.

1799 - USS Constitution recaptures American sloop Neutrality from France.

1800 - USS Essex becomes the 1st U.S. Navy vessel to pass the Cape of Good Hope.

1814 - HMS Phoebe & Cherub capture USS Essex off Valparaiso, Chile. Before capture, Essex had captured 24 British prizes during the War of 1812.

1848 - USS Supply reaches the Bay of Acre, anchoring under Mount Carmel near the village of Haifa, during its expedition to explore the Dead Sea and the River Jordan.

1880 - USS Constellation departs New York with food for famine victims in Ireland.

1898 - Assistant Secretary of the Navy Theodore Roosevelt proposes the Navy investigates the military application of Samuel Langley's flying machine, beginning naval aviation.

1922 - USS Jupiter is recommissioned as USS Langley (CV 1), the Navy's 1st aircraft carrier.

***The Hunt For HMAS Sydney ..... as an Australian team searching for a lost World War II cruiser has located the wreck of the German merchant raider that sank it. HMAS Sydney went down off the west coast of Australia in Nov. 1941 after being attacked by DKM Kormoran. HMAS Sydney was the largest vessel from any country to have been lost with no survivors during the war. By finding the Kormoran, the team is "halfway to solving where the Sydney is," project leader Ted Graham said. The Australian government has given AU$4M to the search team - the Finding Sydney Foundation - to fund their efforts to locate the cruiser. HMAS Sydney was sailing back to Australia from Sumatra on 19 Nov. 1941 when the Kormoran - disguised as a Dutch merchant vessel - launched its attack. Both ships sank as a result of the battle. All 645 of those on board the Sydney were lost, but 317 of the Kormoran's 397-strong crew managed to escape by rowing to the Australian coast, where they became prisoners-of-war. The loss of HMAS Sydney was described as "Australia's major maritime mystery". The team found the wreck of the Kormoran amid a large field of debris, some of which could be pieces of the Sydney itself. They will now use a remote-controlled vehicle to search the wreck - and look for clues as to HMAS Sydney's whereabouts.

***Precious Cargo ..... as a scrawny, black & white female kitten has apparently survived a trip across the Pacific Ocean & North America inside a shipping crate. The Cleveland Animal Protective League says a Cleveland company that received the crate of spooled steel coil found the kitten inside one the spools on March 7. The mother cat & other kittens found in the crate were dead. The crate came to Samsel Supply Co. from Singapore. It was sealed Feb. 4 and shipped 3 days later. The approximately 12-week-old kitten has been checked by a veterinarian and has responded well to being fed. It will be kept in quarantine for 3 weeks to make sure it doesn't pass any infectious disease to other animals.

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

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

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

See our new feature for March 2008: "The Light At The End of The Tunnel" - M/V Zhen Hua 10 & 23

Our other feature for March 2008: "Mess At Manzanillo" - M/V CMA CGM Dahlia

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

You Tube feature: "Container Gantry Gone"

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

NOTE: The historic dangers of carriage by sea continue to be quite real.  Shippers must be encouraged to purchase high quality marine cargo insurance from their freight forwarder or customs broker.  It's dangerous out there.

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

Cargo & Trade>>>>>>

2008 U.S. Trade Policy Agenda and The 2007 Annual Report of the President of the U.S. on the Trade Agreements Program

Documents Used to Verify Free Trade Agreement Claims for Textiles & Wearing Apparel.

Heavy Lift & Project Forwarding International

Hong Kong Trade Links

International Law Directory

Marine Job Search

Texts of Most International Trade Agreements

U.S. Customs Automate Commercial Environment (ACE) Training & Reference Guides

U.S. Customs' Foreign-Trade Zones

U.S. Customs - Foreign-Trade Zone Manual

U.S. Customs Informed Compliance Publications -- ABC's of Prior Disclosure

U.S. Customs Informed Compliance Publications -- Buying & Selling Commissions

U.S. Customs Informed Compliance Publications -- Customs Enforcement of Intellectual Property Rights

U.S. Customs Informed Compliance Publications -- Works of Art, Collector's Pieces, Antiques & Other Cultural Property.

U.S. Customs: C-TPAT Accomplishments FY 2007

U.S. Navy Reservists Train for Customs Inspection Mission

Women In Trucking ..... membership includes people at 80 corporations, 11 trucking schools, 203 drivers, 133 non-driving individuals & 56 students.

PRODUCTS>>>>>>>>>

Find A Port

Highspeed Air Hoist.

Hungary Logistics Outlook To 2012

Rufaa Track....... global shipment tracking system

EVENTS>>>>>>>>>

ExpoDataBase

Transport Events

Trade Shows, Exhibitions, Conferences & Business Events Worldwide

World Trade Organization Events

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

MARAD Approved Maritime Security Awareness Classes

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

Asia Pacific 3PL Summit........ April 21-23 2008, Singapore

China Transpo ........ April 24-26th, 2008 in Beijing Exhibition Center

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

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

Intermodal South America 2008 ........ April 15-17 2008, Transamerica Expo Center, Sao Paulo, Brazil

MARAD Approved Maritime Security Awareness Classes

Multimodal 2008 .... 22 to 24 April 2008, Birmingham, UK

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

Transportation & Logistics Council's 34th Annual Conference........ April 20-23, 2008, Catamaran Resort Hotel, San Diego

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

Transportation & Logistics Council's 34th Annual Conference ......... April 20-23, 2008, Catamaran Resort Hotel, San Diego

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

Free Webcasts>>>>>>>>>

DOT Vehicle Compliance Best Practices ...... Wed., April 23, 2008

Managing Accident Liability Exposure ........ Tues.,May 20 2008

Driver Management Software Overview ...... Tues., April 8, 2008

General Interest>>>>>>>>>

5 Electric Cars Already Making History, Not Hype

Countryman & McDaniel Buy This 1973 Corvette - Byron bids Live!

Geocashing and Geocashing

Halcyon Jets

Hot Pockets - be sitting down

New Gulfstream G650

Price!pinx .......search for a product, then arrange to be notified by e- mail when the price drops. Get the lowest price.

Rotten Neighbors

SHIPWRECK! Pirates & Treasure Exhibit ........ Detroit Science Center

Transport Moments: Some Suggest Mr. Turner Had Been Drinking

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

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

***No Strict Liability On M/V DG Harmony ....... the U.S. Court of Appeals for the 2nd Circuit issued an important decision which clarifies the standard used to determine the liability of shippers and carriers transporting hazardous cargo under the Carriage of Goods by Sea Act ("COGSA"). A spectacular explosion & fire destroyed the container M/V DG Harmony off the coast of Brazil in 1998. Under the holding of this case, shippers will not be held strictly liable for damage caused by hazardous goods if both the shipper and the carrier had pre-shipment knowledge of the dangerous nature of the cargo, even if the carrier lacked information about the precise characteristics of the cargo and its hazards. Instead, in such a case the shipper's liability will be determined on negligence principles. In particular, where the carrier alleges that the shipper failed adequately to warn the carrier about the characteristics of the particular shipment. About US$20M of cargo was lost in the accident, which also destroyed M/V DG Harmony after a fire that lasted 3 days. The chemical that the court said caused the explosion and fire was calcium hypochlorite (hydrated), commonly called calhypo. It is commonly used as a disinfectant to treat, for example, swimming pools & drinking water. On M/V DG Harmony, the cargo was stored near a bunker tank that was heated to make the fuel pumpable. The 2nd Circuit said in the case of M/V DG Harmony, "the ship-owning interests may not have known 'the precise characteristics of the cargo,' but they knew that calhypo was an unstable substance that became vulnerable to combustion when heated. Despite this knowledge, the ship-owning interests exposed the calhypo to the general condition -- heat -- that induces such combustion. As a result, although they may prevail on a negligence theory, the ship-owning interests 'cannot prevail on strict liability.' " Read The Decision

Exxon Shipping Co. v Baker

Argued to the U.S. Supreme Court

Feb. 27 2008 - No. 07-219

Court Below: 490 F.3d 1066

U.S. 9th Circuit Court of Appeals

PUNITIVE DAMAGES AND MARITIME LAW (Whether an Award of Punitive Damages that is Significantly Larger than Compensatory Damage is Appropriate and Whether Maritime Law affects the Final Judgment. The issues in this case are whether an award of punitive damages that is over 100 times that of the compensatory damage amount is appropriate and whether the application of maritime Law affects the final judgment. The claims in this case are tied to the well-known catastrophe when the M/T Exxon Valdez supertanker ran aground in Alaska in 1989 while under the command of Hazelwood, a relapsed alcoholic. There has been widespread litigation and eventually the commander of the ship was found to have been not only negligent but also reckless. A jury for the U.S. District Court for the District of Alaska awarded US$5Bn in punitive damages against Exxon under federal maritime law for lost income and similar economic harm to commercial fishermen and other private parties. Applying the Due Process Clause, the U.S. Court of Appeals for the 9th Circuit (Court of Appeals) reduced the award to US$2.5Bn from the original US$5Bn, which is still five times what the court found was the total, fully compensated loss to all private economic interests. The Petitioner, Exxon has once again appealed to the U.S. Supreme Court (the Court) to address the question of whether punitive damages are appropriate when the person was the ship's master and not the ship's owner. The Court must also determine whether the Court of Appeals was correct in holding that maritime law can expand the penalties under Congressional statute to include punitive damages. The Petitioner asks that the court review the award of punitive damages that are over 100 times the compensatory damages decided by the court to rectify the environmental damages that have already been rectified. Petitioner argues the award of punitive damages for US$5Bn is in excess and outside the scope of the Clean Water Act. Petitioner claims the Court of Appeals incorrectly reduced the punitive damages award by half because it is still too highly disproportionate in light of the compensatory damages award. The Court granted a Writ of Certiorari on Oct. 29, 2007.  

Trans-Tec Asia v. M/V Harmony Container

U.S. 9th Circuit Court of Appeals

11 March 2008 No. 06-55397

ADMIRALTY LAW / MARITIME LIEN / FOREIGN SUPPLIER Opinion (McKeown): Trans-Tec Asia (Trans-Tec) generated a Bunker Confirmation for the sale of fuelbunkers to be supplied to the M/V Harmony Container (Harmony), a Malaysian-flagged vessel. Kien Hung Shipping Co. (Kien Hung) was designated as the buyer and Trans-Tec as the seller. While Trans-Tec delivered the bunkers to the Harmony, shortly thereafter, Kien Hung went bankrupt leaving Trans-Tec unpaid. Hamburg Sud bought Kien Hung and sailed the ship to California. Trans-Tec filed suit in a Los Angeles federal court claiming a maritime lien & unjust enrichment. The district court granted summary judgment for the Harmony and its owner because it found that Federal Maritime Lien Act (FMLA) did not allow the supplier to obtain a maritime lien under the circumstances. However, the Ninth Circuit reversed and held that a maritime lien did arise because of the plain language of the FMLA and the enforceable choice of law clause found in the General Terms and Conditions agreement. The 9th Circuit did agree with the district court in finding that Malaysian law governed the contract formation. In applying Malaysian law, the 9th Circuit also agreed with the district court that the Terms and Conditions were incorporated into the contract due to Kien Hung's acceptance of the fuel bunkers without protest of the terms. REVERSED IN PART, AFFIRMED IN PART, AND REMANDED. Read The Decision 

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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)

Maria Payne (Countryman & McDaniel)

Christoph Whaner, Esq. (Countryman & McDaniel)

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