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Law Offices of Countryman & McDaniel
THE CARGO L
Air & Ocean Logistics - Customs Broker News
=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=
Good Friday Morning from our Observation Deck......overlooking the officially
designated "
The Cargo Letter is now perfectly designed to be
enjoyed on your iPad. Access all
our internet links directly from your device.
Happy
World Maritime Day, Sept. 27. Here is what happened in our industry during the
Month of September 2012.
To help you find what you need --
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.......https://cargolaw.com
Archive of The Cargo Letter ....... www.cargolaw.com/cl-archives.php
Michael S. McDaniel, Editor, Countryman & McDaniel, forwarder/broker, hull
& machinery attorneys at LAX.
I
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs ______________
2. The Cargo Letter Financial Page ______________
OUR "B" Section: FF World Air News***
3. Freight Forwarder World Air Briefs ____________
OUR "C" Section: FF World Ocean News***
4. FF World Ocean Briefs _____________________
5. The Cargo Letter Cargo Damage Dispatches _____
**Back By Popular Demand**
OUR "D" Section: FF in Cyberspace***
6. The Cargo Letter "Cyber Ports of Call" _________
OUR "E" Section: The Forwarder/Broker World***
7. New U.S. Transport
Related Legal Cases ________
Muddying The Waters - a cautionary tale for ocean forwarders
========================================
*****************************************************
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder
Trade Briefs _____________
***A Major
Industry Acquisition .....as
on Sept. 25, C.H. Robinson Worldwide Inc, a major 3rd-party provider of freight
transport, announced it would buy smaller rival Phoenix International for
US$635M in cash and stock to expand its int'l freight forwarding business. C.H.
Robinson, which arranges freight transport through its 53,000 contracted
carriers, said it expects the deal to be modestly accretive in the first year.
The company, which has a market value of about US$9.30Bn, said it would pay
US$571.5M in cash and the remaining in newly issued C.H. Robinson stock.
Sources had told Reuters in June that Chicago-based Phoenix International was
exploring a sale that could fetch as much as US$500M from global logistics
companies, including C.H. Robinson & United Parcel Service. CJ Korea
Express,
www.phoenixintl.com/
www.chrobinson.com/en/us/
***Don't
Miss
Start to plan your trip to the conference:
www.eiseverywhere.com/file_uploads/091abd5b778b145034ccea3ab4063d1a_FIATA12-Conference-Brochure.pdf?utm_source=FIATA+Attendee+eblast+-+Networking+Theme&utm_campaign=FIATA+5.29+Blast&utm_medium=email
FIATA 2012 Video
www.youtube.com/watch?v=JiMHHGvtYQs
***Taking China
To Task ...... as the Obama
administration has filed a complaint to the World Trade Organisation (WTO)
accusing China of subsidizing its auto parts industry to the tune of US$1Bn
over the past 3 years resulting in the loss of thousands of American jobs. The
action comes as the U.S. Presidential campaign heats up and may be seen as
political, given that the announcement was made before Obama's electoral
campaign visit to Ohio - which has more than 50,000 workers employed in the
auto industry, reports London's Containerisation International. It is also a
response to Republican rival Mitt Romney's accusation that Barack Obama was
"being too soft on
***Multiple
Complaints Target
***Counterfeit
Goods Warning ..... as the
British Int'l Freight Association (BIFA) is urging its members to make sure
that their procedures, when accepting consignments for shipment, are as tight
as possible to avoid legal perils in shipping counterfeit goods. The European
Commission recently published statistics showing that EC Customs detained
almost 115 million items that were suspected of violating Intellectual Property
Rights (IPR) in 2011, up on 2010's figure of 103 million. In total 73% of all
IPR-infringing goods originated in
***Fixing Freight
Forwarding Fixes ...... as on
Sept. 14, int'l forwarder Kuehne + Nagel said it had entered into a settlement agreement
with the U.S. government to pay US$28M in a class action price-fixing lawsuit
over surcharges assessed for freight forwarding services.
***
***Larger,
Smaller Railroad ....... as
Genesee & Wyoming Inc.'s (GWI) agreement to acquire Jacksonville-based
RailAmerica for approximately US$1.4Bn, thereby combining the two largest
shortline and regional rail operators in
***Trucker
Turnover Epidemic ....... as
the annual driver turnover rate surged in the second quarter, breaking the 100%
barrier at large truckload fleets for the first time in more than 4 years,
American Trucking Associations said Sept.12. For large truckload fleets with
more than US$30M in revenue, driver turnover rose 16% to 106%, the highest
level since the 4th quarter of 2007. The last time the turnover rate was over
100% was in the first quarter of 2008. The turnover rate at smaller truckload
fleets rose to 86%, a 15-point jump from the previous quarter. The spike put
turnover at its highest level since the 3rd quarter of 2007.
www.trucking.org/Pages/Home.aspx
***Wheels Up ...... as third-party logistics
provider Wheels Group Inc. has signed an agreement to acquire freight broker
and forwarder MSM Group of Cos. for US$18.8M in cash and stock. Toronto-based
Wheels Group will pay almost US$17M in cash and issue 2 million shares of its
stock worth about US$2M for the
***Damco Changes
Country ...... as the major
3PL is relocating its corporate headquarters from
www.damco.com/
========================================
2. The Cargo Letter Financial Page ____________
**Air New
**Cosco. DOWN as first half net loss to
US$770M in the first six months of 2012 from the US$421M the company lost in
the corresponding period last year.
**El Al Israel Airlines. DOWN with a 7.2% decline in 2nd quarter cargo revenue to US$47.6M year
on year as net profit loss narrowed to US$6.2M from US$19.7M last year.
**Evergreen Marine Corp. UP with 2nd quarter net profit of US$29M
on operating income of US$22M.
**FedEx Corp. DOWN with a 1% slip in quarterly net profit to US$459M, drawn on
revenues of US$10.79Bn, up 3% year on year.
========================================
*****************************************************
OUR "B" Section: FF World Air News***
3. Freight Forwarder World Air Briefs __________
***Protection
For American Carriers & Airforwarders ......
as the Airlines for America (A4A), the industry trade organization for the
leading U.S. airlines, commended the Senate for passage of S.1956, which would
allow the Transportation Secretary to direct U.S. airlines to not participate
in the European Union Emissions Trading Scheme (EU ETS) because it violates
international law and U.S. sovereignty. "Congress has spoken -- U.S.
airlines should not be subjected to this illegal scheme that amounts to little
more than a cash grab for the European Union as none of the funds collected are
required to be used for environmental purposes," said A4A President and
CEO Nicholas E. Calio, noting that the House previously passed a similar bill.
www.airlines.org/
***Global Volume
Flat ....... as air freight
demand in July fell 3.2% year on year after 0.1% uptick in June, leaving
volumes flat worldwide, according to the International Air Transport
Association (IATA). The only gainers were the Middle East carriers that posted
a 16% increase in demand on an 11% boost in capacity year on year, helping
raise load factors two percentage points to 45.3% But all other markets
experienced declines and the small recovery seen since the end of 2011 has
stagnated, said IATA. Asia-Pacific carriers saw a 7.6% decline in demand in July
compared to the previous year, the steepest decline for any region, while
capacity dipped just 4.3%. Asia-Pacific carriers have experienced no growth in
freight since the fourth quarter of 2011. European airlines had a 3.6% decline
with a 0.9% rise in capacity.
***Fraud
Warning ...... as the British
Int'l Freight Association (BIFA) is warning its members not to be fooled by
fake emails demanding payment from IATA. BIFA claimed in a news letter that
many of its members have reported receiving fake email demands for payment,
similar to those it warned about earlier in May's edition of BIFAlink.
"Most of the emails bear the usual tell tale signs of a scam such as an
email address for IATA at gmail or Yahoo. However, some of the more deceptive
scammers have managed to replicate @iata.org into the e-mail suffix.
"Don't be taken in," BIFA says. "The only payments made to IATA
will be via your CASS account and unsubstantiated e-mails should be deleted
immediately."
***High
Tech Interference? ..... as
Cathay Pacific cancelled 13 flights to Frankfurt, London, Paris, Malpensa,
Manchester & Amsterdam earlier this month while Cargolux Italia cancelled 4,
arousing suspicions from regular customers that they were being dumped to serve
of high-paying, high-tech shippers demanding mass delivery of new e-gadgets,
reports London's Loadstar. "The implication is that
***High Tech
Boost ...... as air cargo
rates are expected to rise more than 20% as new smartphones and tablets from
Apple, Google Inc (GOOG), Microsoft Corp and Amazon.com (AMZN) Inc flood the market,
benefiting the likes of
***EU
Volume Down ...... as argo
traffic among European airports fell 3.2%, year-over-year, in July, according
to Airports Council Int'l statistics. This decline is in line with the cargo
drop European airports recorded in the first 6 months of 2012. Traffic stalled
3.4%, year-over-year, during this period.
***Boeing Big Buy Seen ......
as it has forecasted
***Airbus
See Freighter Boom ...... as
its most recent Global Market Forecast, the European aircraft manufacturer
projected that the global aviation sector will generate a demand for 3,000
freighters by 2031. This figure, which represents a near doubling of the global
freighter fleet, will be propelled by increased urbanization and economic
growth in emerging regions, according to Airbus. Overall, Airbus estimated that
the industry will necessitate 28,200 passenger and freighter aircraft, valued
at US$4 trillion, by 2031. The Asia-Pacific will lead the world in aircraft
demand, accounting for 35% of aircraft deliveries, followed by
***American Cargo Goes Back To Space ...... as Hawthorne, Calif.-based
Space Exploration Technologies (SpaceX) and NASA have set an Oct. 7 launch date
for the first of 12 contracted cargo missions to space. The upcoming launch
follows the successful attachment of SpaceX's Dragon cargo spacecraft to the
International Space Station (ISS) in May. ISS program managers confirm the
readiness of Dragon and Falcon 9, the rocket carrying Dragon, for the SpaceX
CRS-1 mission, as well as the ISS's availability to receive Dragon. The
spacecraft will filled with nearly 1,000 pounds of cargo. In a press release,
NASA said SpaceX's mission ushers in a new era of freight transportation.
www.spacex.com/
***Air Fixing Now Up To US$100M In Fines ...... as Japanese freight forwarder
Yamato Global Logistics Japan Co. Ltd. has agreed to plead guilty and pay a US$2.3M
criminal fine for its role in a conspiracy to fix certain fees related to air
cargo services from Japan to the United States, the U.S. Justice Dept.
announced on Sept. 19..As a result of the department's price-fixing
investigation, 14 companies have either pleaded guilty, or agreed to plead
guilty and pay more than US$100M in criminal fines.
***B747-8 Engine
Trouble ....... the National
Transportation Safety Board (NTSB) has ordered checks of all GEnx engines for
cracks on Boeing 747-8 cargo planes in an urgent bulletin released Sept. 14.
The NTSB also said all 747-8s should be grounded until the inspections take
place. The agency said GE has used a field ultrasonic inspection method to
inspect the fan midshaft on all in-service and spare GEnx-1B engines, used on
the 787 Dreamliner. The similar but smaller GEnx-2B engines on passenger
versions of the 747-8 have also been inspected, the NTSB said, but
approximately 43 GEnx-2B engines on 747-8F cargo airplanes that have not yet
been inspected. GE says fewer than 10 planes need to be inspected, and that
task should be completed within a few days. The first engine issue took place
when a GE engine had a failure on a 787 during a runway test in
***Growing Your
Own ...... as Delta Airlines
plans to purchase the Bakken oil field in
***Cargo-XML ..... as Descartes Systems Group says
it has developed an innovative technology bridge that helps air cargo messaging
participants move from older software to new Cargo-XML standards in partnership
with the Int'l Air Transport Assn. (IATA). The solution provides bi-directional
translation & message version control between legacy Cargo Interchange
Message Procedures (Cargo IMP) and the new Cargo-XML schema. Since 2009, the
IATA Cargo-XML Task Force, on which Descartes is a participant, has been
developing new XML standards designed to innovate how the air cargo industry
communicates and offer industry stakeholders an alternative to Cargo-IMP
messages. The new Cargo-XML standards are designed to provide airlines,
forwarders and their trading partners with more robust capabilities for data
capture, enhanced data exchange and accuracy in support of the e-freight, an
ability to keep pace with rapidly evolving customs and security requirements
and reduce costs.
www.iata.org/workgroups/pages/cxml.aspx
www.iata.org/whatwedo/cargo/tracker/july-2011/pages/cargo-xml.aspx
***Aerolineas
http://en.wikipedia.org/wiki/SkyTeam
***Airways &
Qantas Divorce ....... as
they have agreed to terminate their joint business as of
***Dubai
Airports' Big Expansion .....as
part of its US$7.8Bn Strategic Plan 2020,
***Southwest
Cargo At ATL ..... as in the
first six months of it's new cargo operation at
***Volumes >>> Air France-KLM has posted a 7.8% year-on-year
decline in cargo in August attributed to weak Asia-Pacific and the
***Conveyor Death .......
as US Airways has been fined US$21,000 by an
www.nydailynews.com/news/national/airways-hit-21-000-fines-baggage-worker-crushed-conveyor-belt-article-1.1161930
***Breaking The
Speed Limit ...... as Boeing
Business Jets (BBJ) set a new world record for "Speed Over a Recognized
Course" when a BBJ flew non-stop from Los Angeles to Auckland, New Zealand
for installation of its VIP interiors. The BBJ, a 737-700 modified for VIP use,
made the 5,658 nautical mile (10,479 km) trip in 13 hours, 7 minutes and 54
seconds. The record-setting trip was monitored by the National Aeronautic
Association based in
http://cdn.airnation.net/wp-content/uploads/2012/09/boeing_bbj_world_record_2bna-e1347903198270.jpg
***Really? ....... as American Airlines and
United Airlines will face a federal trial for negligence claims when jets owned
by the carriers were flown in to the World Trade Center Twin Towers in New York
City destroying them. Nearly 3,000 people were killed in the attack on
***Forced Cargo ..... as when an
***Dropping In On
Kent, Washington ...... as
FAA investigators are trying to find out why a cargo plane lost a landing gear
door in mid-flight. The door, nearly the size of a refrigerator, crashed onto a
quiet street outside
www.youtube.com/watch?v=7lO1Tfy0Pis
***Good To Know About That "Find My iPad" App ....... as a flight attendant for
Horizon Air was arrested on Sept. 21 for allegedly stealing a passenger's iPad
computer.
***Thanks, But
I'll Just Take A New Bag ......
as a sewage pipe that ruptured at London Heathrow's Terminal 5 covered dozens
of British Airways passengers' bags in raw sewage on Sept. 3. The Daily
Mail of London reported: about 100 suitcases were covered in the raw filth when
a pipe in the sewage system burst in Terminal 5?s baggage hold. Many passengers
were still waiting to be reunited with their suitcases today after the airport
sent them off to be cleaned.' "The smell was absolutely foul, as was the
mood of the passengers who had to leave without their bags," one unnamed
source said to The Sun, a British tabloid. A spokesman for airport operator BAA
Heathrow acknowledged the incident to The Independent. "We appreciate this
will be upsetting for passengers," the spokesman says. "The bags have
now been cleaned and are being reunited with their owners." British
Airways has apologized to its customers.
***Shrouding
Yourself At Turin ...... as a
man posing as an airline pilot was arrested Sept. 21 at
========================================
*****************************************************
OUR "C" Section: FF World Ocean News***
4. FF World Ocean Briefs
***100
Years After Titanic ...... as
the World Maritime Day (Sept. 27th) theme for 2012 is
"IMO: One hundred years after the Titanic", which will focus on the
Organization's roots and raison d'être, i.e. safety of life at sea. One of the
consequences of the sinking, in 1912, of the Titanic, in which more than 1,500
people lost their lives, was the adoption, two years later, of the first
International Convention for the Safety of Life at Sea (the SOLAS Convention).
The 1914 version of the Convention was gradually superseded, respectively, by
SOLAS 1929, SOLAS 1948, SOLAS 1960 (the first adopted under the auspices of
IMO, then known as IMCO) and SOLAS 1974. SOLAS 1974 is still in force
today, amended and updated many times.
World Maritime Day 2012 Links, Events & Videos
www.imo.org/About/Events/WorldMaritimeDay/wmd2012/Pages/default.aspx
***The Storm Has Passed - For Now ...... as the International
Longshoremen's Association (ILA) and United States Maritime Alliance (
***Deminished
Spirit? ...... as general
confidence levels in the shipping industry dropped to the 4-year low to 5.3 of
a scale of one to 10, according to int'l accountant and shipping adviser Moore
Stephens. Oversupply of ships and a sluggish global economy were blamed by many
respondents. "Supply trends are negative. Banks are reluctant to put out
any money, let alone new money. The economic outlook, particularly in
www.moorestephens.com/shippingandtransport.aspx
***Great Expectations ......
as import cargo volume at the nation's major retail container ports is expected
to increase 8.5% in Sept. compared with the same month last year, and strong
increases are expected into the holiday season, according to the monthly Global
Port Tracker report provided by the National Retail Federation and Hackett
Associates. ugust was estimated at 1.43 million TEUs, up 4.4% from last year.
Sept. is forecast at 1.49 million TEUs, up 8.5%; Oct. at 1.48 million TEUs, up
11.7%; Nov. at 1.32 million TEUs, up 1.9%; and Dec. at 1.25 million TEUs, up
2.7%. Jan. 2013 is forecast at 1.23 million TEUs, down 3.8% from Jan. 2012. The
first half of 2012 totaled 7.7 million TEUs, up 3% from the same period last
year. For the full year, 2012 is expected to total 16 million TEUs, up 4.2%
from 2011. These figures reflect this month's addition of Port Everglades in
www.nrf.com/modules.php?name=Pages&sp_id=393
www.nrf.com/
***Global Fleet
Grows ....... as this month our friends at the Bow Wave e-zine featured a report on the
2012 data on world fleet numbers. After an annual growth of almost 10%, as of
Jan. 2012, the world fleet reached a total tonnage of 1,534 million dwt. At the
beginning of the year, there were 104,305 seagoing commercial ships in service.
Dry bulk carriers saw the largest growth of tonnage, 17%, reaching now a 40.6%
share of the world total. This is followed by oil tankers, which grew by 6.9%
and now account for 33.1% of the world fleet. The third most important vessel
type is container ships, with a share of 12.9% of the world fleet; their
tonnage grew by 7.7% during 2011. The general cargo fleet continued its
relative decline, being the only major vessel type with a smaller tonnage
compared to previous year.
www.wavyline.com/
***Singapore Joins The Armed Vessel Solution ...... as the Maritime and Port
Authority (MPA) has authorized the deployment of armed security contractors on
board Singapore-registered ships when sailing through pirate-infested waters.
"While armed security personnel may lawfully bear arms, they will still be
liable under Singapore's laws if they use their arms on board the ship without
lawful excuse, as a person on board is not exempted from criminal liability in
respect of any offence that he commits on the ship," said the MPA
statement. The MPA said the new guidance is "in line with the revised
interim guidance being promulgated by International Maritime Organization
(IMO)". As we have pointed out for some years now, in modern times, no armed
vessel has ever been taken by pirates. The solution was there all the time,
Yet, The Cargo Letter and the Countryman & McDaniel attorneys were frequently
challenged for this opinion.
***New Antitrust Probe ......
as reports from Bloomberg and Reuters say executives of several major shipping
companies that operate car carriers were interviewed by antitrust authorities
today in
***Slow
Steaming To The Airport ......
as shipping lines embarking on super-slow steaming in a bid to cut fuel costs,
shippers appear to be more open-minded to send their goods by air, according to
***Leasing Trend Continues ......
as London based Drewry Maritime Research has published its latest Container
Leasing Industry 2012/13 report, saying container lessors are expected to
experience overall growth in 2012 but due to the slowdown in shipping market,
newbuild lease rates have been slackening over the past few months. The Drewry
report said the rental container fleet increased 10.6% in 2011, improving on
the 9% returned in 2010 with a 9.5% compounded rate for the two years combined.
***Important To
Know The Weight ...... as
talks continue within the IMO (International Maritime Organization) to
introduce mandatory weighing of containers. The goal is to avoid accidents
& equipment damage due to overloaded containers, poorly loaded vessels
consuming additional fuel and revenue loss for terminals and shipping lines
from transporting containers with under-declared weights. Port operators can
significantly improve both safety and productivity by allowing crane operators
to know exactly what weights they are lifting, enabling vessels to be correctly
loaded and by ensuring all containers are charged according to actual weight.
As a forensic tool, verification of container weight will expose a short-loaded
container or help determine where in the supply chair a shipment may have been
pilfered.
***Not Guilty .......
as the managing director of APL Dubai, Steve Dolan, who was implicated in the
smuggling of 30,000 handguns and faced 50 years in prison, has been acquitted
in
***Inchcape
Expands ....... as marine
services provider Inchcape Shipping Services (ISS) has opened 10 new offices in
***China -
Taiwan Trade Up ...... as sea
shipping services between
Xinhua reports
***Throughput >>> Port of Hamburg has achieved cargo volume growth
of 2.7% in the first half of 2012 to total 65.8 million tons, while container
throughput was up 1.9% year on year to 4.4 million TEU. >>> Hong Kong Marine Dept. figures show the
port handled 1.9 million TEU in Aug, representing a year-on-year decline of
9.2% over the 2.1 million TEU in Aug. of last year. >>>
***This
Month In
1804 - USS Intrepid (Lt. Richard Somers) blew up in failed attack on
1813 - USS Enterprise captures HM brig Boxer off
1915 - Secretary of the Navy Josephus Daniels organizes the Naval Consulting
Board to mobilize the scientific resources of the
1918 - USS Mount Vernon torpedoed by German submarine
off
1941 - U.S. Navy ships escort eastbound British trans-Atlantic convoy for 1st
time (Convoy HX-150). Although the U.S. Navy ships joined HX-150, which left
port escorted by British ships on 16th, the official escort duty began on 18th.
1957 - Bathyscaph
1992 - Joint Task Force
1992 - Joint Task Force
***False
Testimony ....... as a
Miami-based marine surveyor was sentenced today for lying to the Coast Guard
and for falsely certifying that inspections had been performed on two ships,
which were designed to ensure the ships were seaworthy and did not pose a
threat to the crew or the marine environment. Alejandro Gonzalez, 60, of
***M/V Liberty Star ...... as the former NASA vessel
used to recover solid rocket boosters from the Space Shuttle, will become the
new training ship at the U.S. Merchant Marine Academy in Kings Point, N.Y. The
vessel is one of two NASA-owned and United Space Alliance operated merchant
vessels serving as recovery ships. Each is used in retrieving spent Solid
Rocket Boosters (SRB's) following the launch of Space Shuttle missions. Her
sister is the M/V Freedom Star. The Maritime Administration will relocate the
vessel from
http://en.wikipedia.org/wiki/MV_Liberty_Star
***Shackleton's
Epic Reimagined ...... as a
crew of 6 British & Australian adventurers will re-enact Sir Ernest Shackleton's
epic Antarctic small boat voyage. With only 4 months to go before the
'Shackleton Epic' adventure gets underway, a significant milestone has been
reached with the sea trial and the expedition's naval element is eager to get
going on the trip of a lifetime. The 'Shackleton Epic' has been in development
since 2008 when The Honourable Alexandra Shackleton, grand-daughter of Sir
Ernest, had the idea of an expedition to honour one of the greatest leadership
and survival stories of all time. Now, a crew of six British and Australian
adventurers will attempt to become the first to authentically re-enact Sir
Ernest Shackleton's treacherous boat voyage from
www.timjarvis.org/shackletonepic/
========================================
5. The Cargo
Letter Cargo Damage Dispatches
**Back By Popular Demand**
We're sorry, but there were so many sinkings, explosions, pirate
attacks, fires, cargo mishaps, battles on the water & other disasters at
sea that we do not have room to print even the highlights this month. Many
people lost their lives at sea this month!!
But you can read all this month's disaster news at our special Internet web
feature which provides full details of each event -- our Vessel Casualties & Pirate
Activity Database. Bookmark the site and visit every day! Updated
twice daily.
www.cargolaw.com/presentations_casualties.html
www.cargolaw.com/gallery.html
See our new feature: "Hurricane Isaac Grounds M/V
Hansa Berlin"
www.cargolaw.com/2000nightmare_singles.only.html#MV.Hansa.Berlin
See our newest photo feature "Singles Only" - Transportation Disasters Told In A
Single Photo!
www.cargolaw.com/2000nightmare_singles.only.html
Daily Vessel Casualties ...... as we don't want you to miss the excitement of our 24 hour
reports of the dramatic events at sea each day -- stories of casualties &
pirates --- almost none of which are carried on your local news. Edited
daily byChristoph Wahner, Esq. of Countryman & McDaniel.
www.cargolaw.com/presentations_casualties.php
NOTE: The historic dangers of carriage by sea continue to be quite real. Shippers must be
encouraged to purchase high quality marine cargo insurance from their freight forwarder or
customs broker. It's dangerous out there.
========================================
*****************************************************
OUR "D" Section: FF in Cyberspace***
6. The Cargo Letter "Cyber Ports Of Call"
Here are our suggested world wide web sites of the week for your business, your
information and your amusement..............
Cargo & Trade>>>>>>
10 Years after the Maritime Transportation Security Act
www.gao.gov/products/GAO-12-1009T
Cargo Canaveral
www.portcanaveral.com/cargo/cargo.php/
Is the Juice Worth the Squeeze?
www.roanoketrade.com/topics/IsJuiceWorthSqueeze_JOC_0712-0812.pdf
Key Factors in Motor Carrier Selection: Balanced Risk Assessment
www.chrobinson.com/en/us/Resources/White-Papers/
Maritime TV
www.maritimetv.com/
Inside The McDonald's Supply Chain ....... from Inbound Logistics
http://myvenue.venuecom.com/emt/newsletter/3223/31565/1361
Obama Administration Challenges China's Export Subsidies To Auto and Auto Parts
Manufacturers in China
www.ustr.gov/about-us/press-office/press-releases/2012/september/obama-administration-challenges-china-auto-subsidies
A Simulator Study of The Effects of Singing On Driving Performance .......a questional study of the effects of singing on truck
drivers. Really?
www.sciencedirect.com/science/article/pii/S0001457512002552
The U.S. Needs a Department of the Supply Chain
http://mhlnews.com/global/us-needs-sept-supply-chain-0912/
UPS 2012 Pain in the (Supply) Chain Healthcare Survey
www.ups.com/content/us/en/bussol/browse/industries/pain-in-the-chain.html?WT.mc_id=VAN700372
PRODUCTS>>>>>>>>>
PalletPal Level Loaders
www.southworthproducts.com/contentmgr/showdetails.php?id=27&tp=VE1HUj0xLHRpZD0xOTE5LA%3D%3D
Walkie Tug Handles 20,000 Pounds
www.americansalesdevelopment.net/Electric-Tuggers.html
EVENTS>>>>>>>>>
Transport Events
www.transportevents.com/
Trade Shows, Exhibitions, Conferences & Business Events
Worldwide
www.eventseye.com/
World Trade Organization Events
www.wto.org/english/news_e/meets.pdf
2012 FIATA World Congress ...... 8-12
Oct. 2012, Hyatt Regency Hotel, Los Angeles
www.fiata2012.org/ehome/index.php?eventid=23377&
www.facebook.com/pages/Transportation-Intermediaries-Association/117074095521
7th World Cargo Symposium .......12-14 March 2013, Doha, Qatar
www.iata.org/events/wcs/Pages/index.aspx
8th International Conference on Marine Technology (MARTEC) ......20-22 Oct., Malaysia
http://martec.umt.edu.my/
10th 3PL Summit........22-24 Oct.
2012, Antwerp
http://events.eft.com/eu3pl/index.php
http://events.eyefortransport.com/3pl/pdf/EFT_3PL-Summit_US-2_Online51.pdf
17th Annual Regional & Business Aviation Industry
Suppliers Conference .....14-16 Nov. 2012, Paradise
Valley (Scottsdale), AZ
http://link.pentonav.com/u.d?I4GroRZPU-ypWTcMfs1qn=2371
18TH World Route Development Forum .......29
Sept. - 2 Oct. 2012, Abu Dhabi
www.routesonline.com/events/150/the-18th-world-route-development-forum/
19th Annual GAD 2012 - Global Airport Development Conference
..... 5 -
www.icbi-gad.com/page?xtssot=0
21st Annual Admiralty and Maritime Law Conference ........
www.utcle.org/conference_overview.php?conferenceid=1029
AirCargo 2013 ......... 10-13 March 2013, Red
Rock Casino,
.www.aircargoconference.com/
Air Cargo Africa 2013 ........ 20-23 Feb. 2013, Johannesburg, South Africa
www.stattimes.com/aca2013/
Cargo Security Summit ........Nov. 12 - 14, 2012 - Washington, DC
www.cargosecuritysummit.com/?mac=IDGA_OI_Featured_2011&elq=00499ca597cb44c69968d45fb0d7baa8&elqCampaignId=311
Council of Supply Chain Management Professionals Annual
Global Conference 2012 ..........Sept. 30-Oct. 3,
Atlanta
http://cscmpconference.org/
Intermodal Europe 2012 ......... 27-29 Nov. 2012, Amsterdam RAI, Holland
www.intermodal-events.com/wcnb
JAXPORT 2013 Logistics & Intermodal Conference ......18-20
March 2013, Omni Amelia Island Plantation Resort, Amelia Island, Florida
www.jaxportconference.com/?6095b020
Maritime Piracy & Security Summit ....... 30+
31 January 2013, London
http://v11.vuturevx.com/exchange-sites/Whitmore%20Group/59/events-pdfs-eu/mps4-marketing-agenda.pdf
Transport Security Expo 2012 .......14-15 Nov.,London Olympia
https://secure3.eventadv.com/Niche/Registration/VisitorLanding.aspx
World Cargo Symposium 2013 ......12-14 March 2013, Doha, Qatar
www.iata.org/events/wcs/pages/index.aspx
Apps For That - iPhones>>>>>>>>>
Find iPhone ....... for when a flight attendant misplaces your device.
Numbers ........ make
stunning spreadsheets, charts & graphs
General Interest>>>>>>>>>
Arctic and Northern Maritime Heritage
www.nauticapedia.ca/Articles/Arctic%20and%20Northern%20Maritime%20Heritage.php
A Toy Train In Space
www.frequency.com/video/toy-train-in-space/60792480
FedEx Office TV Ad "Candidates"
www.youtube.com/watch?v=u2eojFZ0c20&feature=youtube_gdata_player
Freeing The Siren: The Evolution of The Starbucks Logo
http://blog.nrf.com/2012/09/12/freeing-the-siren-the-evolution-of-the-starbucks-logo/
HMHS Britannic
www.maritimeprofessional.com/Blogs/Maritime-Musings/September-2012/HMHS-Britannic.aspx
Keepsake Aircraft Carrier Offer Sought
www.marinelink.com/news/keepsake-aircraft-carrier347550.aspx
Navy To Commission Littoral Combat Ship Fort Worth
www.navy.mil/submit/display.asp?story_id=69676
www.navy.mil/view_image.asp?id=133972
RMS Olympic
www.maritimeprofessional.com/Blogs/Maritime-Musings/August-2012/RMS-Olympic.aspx
USS Somers - the only U.S.
Navy ship to experience a mutiny that resulted in executions
www.maritimeprofessional.com/Blogs/Maritime-Musings/September-2012/USS-Somers.aspx
Voice mail Accident Hilarious
www.funnieststuff.net/viewmovie.php?id=2998
Why Couldn't We Save Glacier?
http://maritimematters.com/2012/09/glacier-recedes-into-history/
WWl Submarine Mystery Disapearance Honored
www.marinelink.com/news/disapearance-submarine347649.aspx
========================================
*****************************************************
OUR "E" Section: The Forwarder/Broker World***
7. New U.S.
Transport Related Legal Cases _______
MUDDYING THE WATERS ....... a cautionary tale
As an NVOCC on an ocean import ending at the port (CY/CY), more often than not
you will also act in the seperate capacity of a Customs House Broker. Most
Brokers issue a Delivery Order (D.O.) on behalf of the importer to the
on-carrier once the cargo has cleared U.S. Customs. The traditional purpose of
the D.O. is to notify the on-carrier as to cargo location & availability.
The customer has requested door delivery and you have accommodated this request
by arranging the inland transportation with an independent motor carrier. The
Delivery Order does not describe the nature of the service you are providing or
your status. However, your Customs Power of Attorney incorporates your standard
Terms and Conditions of Service which limit your agent liability for cargo loss
& damage, perhaps using the terms and conditions of the NCBFAA as a model.
If the bad thing then happens to the cargo while being transported by the motor
carrier to final destination inland, you are not responsible as an agent
arranging the service, but only for any independent negligence. You are covered
by your liability limitation, either because the cargo is damaged while in the
custody of a third party or by the monetary damage limitation (usually US$50
per shipment), right?
The answer is definetly yes,
under traditional industry design, case law and the correct interpretation of
cutomer agreements. But not necessarily, if your company falls prey to the
wrong claim lawyer in a court which has little or no experience with
transportation cases.
Though the scenario described above fits the accepted business model of
NVO/CHBs followed in the industry for many years, we are now seeing the trend
of claims by plaintiff attorneys representing subrogating cargo insurance
companies which intentionally attempt to obscure the well-defined multimodal
roles of NVO/CHBs and attempt to claim the CHB is no longer acting in the
capacity of a customs broker for the inland dray, but instead has
magically assumed the capacity of a motor carrier or Title 49 freight
forwarder, liable to the cargo interests under the Carmack Amendment for the
damage to the assured's cargo.
This twisted theory of claim springs from the very broad definition of
motor carriers and freight forwarders within the Carmack Amendment
(at 49 U.S.C. section 13102) and various court decisions which hold an entity
need not be licensed either as a motor carrier or domestic freight forwarder to
be found liable as one, if they "held themselves out" as a motor
carrier or Title 49 freight forwarder to any of their customers, even though
they did not do so for the particular transaction at issue. The allegation is
made that your duties as a CHB only involved clearing the cargo and you
represented you would transport the cargo inland in accepting the door-to-door
shipping request. Thus, the subrogation attorney makes the completely spurious
arguement you somehow held yourself out as a motor carrier or Title 49
forwarder.
Worse, the claimant lawyer disingenoully attempts to deny application of your
Terms and Conditions to limit your liability for the loss by the false argument
that the document no longer applies to your actions as a "motor
carrier" or "Title 49 freight forwarder," as your customs
broler duties were over and finished at the moment the cargo cleared.
This twisted theory of claim recovery against international ocean
forwarder/brokers has become a "flavor of the month" tactic by the
industry claim attorneys, and you need to know.
The Countryman & McDaniel attorneys can help prevent such a claim nightmare. It only
requires taking steps to clarify your actual legal capacities on operationg
documents, such as your Delivery Order. Countryman & McDaniel is available to revise your transportation documents Terms and
Conditions of Service and Service Agreements to see that you are not challened
by this ploy, simply because your documents do not clearly define your role for
the inland drayage.
========================================
Written from wire stories, the Associated Press, Reuters, Hong Kong Shipping
News Lloyds & other world sources.
******************************************************
The Cargo Letter Correspondents:
Michael S. McDaniel, Esq. Editor (Countryman &
McDaniel)
Christoph M. Wahner, Esq.
(Countryman & McDaniel) Daily Vessel Casualties
Maria Payne (Countryman & McDaniel)
=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=
_The Cargo Letter_
(since 1978)
A world news service for Air/Ocean
Freight Forwarders, NVOCC's, Consolidators, Indirect Air Carriers, Surveyors,
Intermodal Shipper's Agents, Inland Carriers, Customs Brokers and
Liability& Marine Underwriters world-wide .............a free service to
more than 8,000 industry subscribers & readers on 6 continents.
Michael S. McDaniel, Editor.
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_The Cargo Letter_ is published by The Law Offices of Countryman
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Insurance and Claims representation of Air/Ocean Freight Forwarders, NVOCC's,
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