American Shipper Vol

FMC polls industry on OSRA 6 Nistevo: Collaboration for the cautious 22 H-P picks Schenker, Panalpina 62 Vancouver’s take-charge port 74 800-ACL-1235 www.ACLcargo.com To HANDLE cARG American Shipper Vol. 43, No. 5 May 2001 LOGISTICS 18 Michelin keeps it simple 33 On the Cover E-survivors 18 FORWARDING / NVOs 36 The electronic commerce climate has changed Import industry sets tone for ERP 15 NACA, Ecu-Line form alliance 38 dramatically, with weaker players sent Fish & Wildlife wrestles with automation 40 packing, and the remaining competitors Customs lists textile rules violators 42 under increasing pressure to perform. Which Troy: Hands-on NVO 44 transportation, warehousing and supply chain Hi-Tech’s Jones finds a new way 46 Internet software providers will survive the TRANSPORT/OCEAN 48 shake-up ? Gordon Forsyth asks what may FMC polls industry on OSRA 6 be a more important question: Will the Internet Creel: Deregulation has its limits 8 live up to its initial promise to bring equality MarAd battle shifts to Congress 12 of information to companies of all sizes? How much bigger will boxships get? 50 Kent Line sharpens East Coast focus 52 SMA fixes shortened arbitration process 54 P&O Nedlloyd expands Down Under 55 Collaboration for the cautious 22 TRANSPORT/AIR 56 Kevin Lynch, chairman and CEO ofNistevo Corp, EU fines Deutsche Post $21.6 million 60 has been in the curl o f the collaborative logistics wave. H-P picks Schenker, Panalpina 62 Founded in 1997, the company’s chief goal was building Panalpina buys SwissGlobalCargo stake 63 software “which recognized that, at some point, packages BAX Global signs Airbus, Air France 63 were going to get smaller and move faster, so that more SAir Group reports loss 63 of a company’s product would be moving more often. ” Con-Way expands into air forwarding 63 What’s more, Nistevo protects its customers’ proprietary data in a collaborative environment. TRANSPORT/INLAND 64 STB hears final pleas 12 Truckers in slow gear with QP/WP 66 CN, Wisconsin Central file for merger 67 EGL wins MTMC logistics contract 26 Where the rail meets the water 68 U.S. military transportation strategists already believe Senate bill seeks to repeal railroad tax 71 that commercial logistics firms could do a better job Bill would back short-line railroads 71 at managing defense cargo movements, but they want MTMC adds fuel adjustment system 71 proof. Using the military’s U.S. Southeast logistics Rutter picked to head FRA 71 installations as the testing grounds, the Military Traffic Groups seek retrofit extension 71 Management Command, the surface transportation PORTS 72 logistics unit of the armed forces, awarded a one-year Wallenius Wilhelmsen’s terminal focus 72 contract to Eagle Global Logistics. Vancouver’s take-charge port 74 SERVICE ANNOUNCEMENTS OOCL expands Scan Baltic Express... CMA Power shifts in chartering 28 CGM takes slots on Hanjin’s services ... Edward Hanley and Rod Vulovic, executives with U.S. Lines form Asia/U.S. South America VSA Ship Management Inc., owner and bareboat charterer o f U.S.-flag containerships to Maersk Sealand, see ship DEPARTMENTS owners moving to larger containerships and longer Comments & Letters 2 charters. And, in a new wrinkle, larger shippers Shippers’ Case Law 34 are contemplating time chartering vessels on their own, Satish Jindel 58 as a more cost effective and more reliable alternative Theodore Prince 64 to booking their cargo with carriers. Corporate Appointments 77 Service Announcements 78 Editorial 80 Shippers’ NewsWire daily e-mail, only $60/year. Call 1-800-874-6422 AMERICAN SHIPPER: MAY 2001 1 American Shipper BT! INTERNATIONAL LOGISTICS I I m Publisher Hayes H. Howard Jacksonville [email protected] Comments Editorial David A. Howard, Editor &--------------------- Jacksonville [email protected] Gary G. Burrows, Managing Editor Jacksonville [email protected] Letters Philip Damas, International Editor London [email protected] Brokers’ services shouldn’t be a ‘giveaway’ Christopher Gillis, Deputy Editor Washington [email protected] This is in response to a Comments and Letters item in your April issue, “Giving away the business,” by Chris Gillis (page 4). Tony Beargie, Associate Editor Washington amshpdcl @aol.com While I agree with the writer that customs house brokers have long been giving away their expertise in many areas in order to make Robert Mottley, Associate Editor New York [email protected] minimal profits from entry fees, I do not agree with the last line of the comment, in which the writer eludes to a “good luck” attitude when it comes to now Gordon Forsyth, Contributing Editor New York [email protected] charging for a brokers’ expertise. I have long advocated to any broker, importer or exporter that would listen, that Francis Phillips, Shipping Research London [email protected] brokers are in a unique situation when it comes to counseling importers and exporters. The Customs Modernization Act of 1993 gave importers and exporters three experts Simon Heaney, Research Asst. London [email protected] to draw information from: trade lawyers, trade consultants and customs brokers. In this group it is the broker that is filing the entry and, therefore, has to have the most Michael Merrill, Electronic media Jacksonville mmerrill @ shippers.com information concerning how the importer is doing business, so that the broker make the correct assessment on both valuation and duty payment. Virginia Powers, Graphics Any broker who is worth his salt is expertly versed in both the Harmonized Tariff and Advertising Cathy Avolio, Advertising Manager U.S. Customs regulations. With this knowledge, the broker should have the same right and New York [email protected] Nancy B. Barry advantage to charge fees comparable to both lawyers and consultants. It is only when Jacksonville [email protected] brokers start to realize their worth that this “giveaway” attitude will finally disappear. Circulation Karyl DeSousa Kerry Cowart Bill Julich Jacksonville [email protected] president, To subscribe call Delmar International 1 (800) 874-6422 Jamaica, N. Y. New York (212)912-1077 Fax:(212)912-1244 Good times ahead for giants of the sky 5 World Trade Center, Suite 9259 New York, New York 10048 The Antonov Design Bureau’s goal to finish building the second world’s largest London +44 (20) 8970-2623 commercial cargo plane is more than just a novelty for the Ukrainian aircraft manufacturer. Fax: +44 (20) 8970-2625 The AN-225 has a payload of250 tons and room on its back to handle a cargo “pod.” Empire House The first plane was designed and built in the late 1980s for the former Soviet Union Empire Way, Wembley North London HA9 0EW, England space program. The plane made its debut to the world’s airline industry in 1989 at the Washington (202)347-1678 Paris Air Show. Fax: (202) 783-3919 The behemoth AN-225 caught the attention of air carriers, but lacked general market National Press Bldg., Rm. 1269 Washington, DC 20045 interest. It also fell victim to the economic devastation of Soviet Union’s collapse. A Jacksonville (800) 874-6422 (904) 355-2601 second plane sat in pieces at the Antonov Design Bureau’s manufacturing plant in Kiev. Fax: (904) 791-8836 But all of that is about to change. The Antonov Design Bureau, along with financial 300 W. Adams St., Suite 600 P.O. Box 4728 support from British cargo airline Air Foyle, is assembling the second AN-225, named Jacksonville, FL 32201 the Mriya (Ukrainian for “Dream”), with the purpose to transport commercial cargo. wbpa The Russian heavy-lift air-transport business got its start with the AN-124, a former INTERNATIONAL ® Soviet military transporter with a 150-ton payload. The planes have become common- American Shipper is published monthly, except one place in the transportation of heavy, outsized cargo throughout the world. About 20 additional issue for the Southern Region only. Pub- lished on the 15th of each preceding month by Howard AN-124s are in commercial operations today. Publications, Inc., 300 W. Adams St., Suite 600, P.O. Box 4728, Jacksonville, Florida 32201. Periodical post- Executives of the airline industry’s three AN-124 operators, Volga-Dnepr Airlines, age paid at Jacksonville, Florida, and additional mailing Antonov Airlines (Air Foyle) and Polet, forecast steady growth not just for heavy-lift offices. Subscriptions $60 per year for 12 issues;$180 for air mail; $5.00 for single copies. Telephone (904) cargo but also for general hi-tech freight. 355-2601. Late last year, Sony found itself in a capacity crunch with traditional airline services American Shipper (ISSN) 1074-8350) as it planned for the delivery of its PlayStation II video game units to overseas markets. POSTMASTER: Send Change of Address Form 3579 Sony turned to Volga-Dnepr to charter AN-124s. Sony reportedly experienced a 5- to American Shipper, P.O. Box 4728, Jacksonville, Florida 32201. percent decrease in losses and damages to its cargo that it would have otherwise experienced with traditional airline services. Printed in U.S.A. Copyright © 2001 Howard Publications, Inc. The problems for the AN-124s and A-225s, however, will be increasingly restrictive 2 AMERICAN SHIPPER: MAY 2001 ABILITY. T he new world leader in Project & Heavy L ift Car go transport is ready to offer CUSTOMIZED SERVICE WHERE AND WHEN YOU NEED it. Constructing more than 300 voyages ANNUALLY FROM THE WORLD'S LARGEST FLEET OF HEAVY LIFT BREAKBULK VESSELS, I NT ERMARINE CAN MATCH THE RIGHT VESSEL TO YOUR CARGO. For cargo lifts in excess of 600 tons, MOVEMENT OF STRUCTURES AS LONG AS A FOOT- BALL FIELD, ACCESS TO PRIMITIVE AND SHAL- LOW DRAFT PORTS, INLAND TRANSPORT AND CON- STRUCTION CRANE SERVICES, INTERMARINE HAS runways and tighter cargo areas of airports.

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