News
Container Carrier Losses Reach $11 Billion

More pain expected in 2010 as volume, rates recover slowly

The world’s top 22 ocean container carriers lost some $11 billion in the first nine months of the year and face further losses in 2010 as the industry digs out from the worst downturn in its 50-plus history.

Sixteen of the carriers that have published third-quarter results reported cumulative operating losses of $9 billion in the first nine months of 2009, according to a survey by AXS-Alphaliner, the Paris-based shipping analyst and consultant. This compares with a combined operating profit of $5.3 billion in the corresponding period of 2008.

The remaining six carriers — Mediterranean Shipping Co., CMA CGM, Orient Overseas International Ltd., Hamburg Sud, United Arab Shipping and Pacific International Line — are estimated to have incurred another $2 billion in operating losses from their liner units.

The total shipping revenue of the 16 carriers publishing results — including Maersk Line, Hapag-Lloyd, China Shipping, “K” Line and NYK Line — plunged 40 percent in the first nine months, to $56 billion from $94 million a year earlier.

The Transpacific Stabilization Agreement, a discussion agreement of carriers that control 90 percent of U.S. containerized imports from Asia, last week predicted losses in that trade would hit $20 billion this year, and recommended an “emergency revenue program” involving a rate hike of $400 per 40-foot container on Jan. 15. The Westbound Transpacific Stabilization Agreement, representing carriers in the U.S.-to-Asia trade, on Monday followed with its own recommendation for similar hikes.

Most ocean carriers surveyed by Alphaliner expect cargo volume and rates to recover in 2010, but most also expect to lose money next year.
 
 
Wood Packing

***CUSTOMER ADVISORY***
WOOD PACKING REQUIREMENTS
 
Compliance to International Standards for Phytosanitary Measures (ISPM) #15 Standard for Wood Packing Materials (WPM)

Recently we have sent numerous advisories regarding countries that have started to enforce compliance to ISPM #15. As of January 1, 2010 Malaysia will be the next county to require this. Please find following list of countries from the USDA website that currently support this regulation.
 

 
 
Leading Military Logisticians From Over 10 Countries set to Discuss Their Top Challenges and Strategies for 2010 and Beyond

 

ABU DHABI, UAE, October 28 /PRNewswire/ -- International Quality and Productivity Center (IQPC), a leading provider of international, tailored, industry-driven conferences, today announced the dates of the 3rd Annual Defence Logistics Middle East Summit 2009.

Defence Logistics Middle East 2010, which will be held from 24 to 27 January 2010 at the Armed Forced Officers' Club inAbu Dhabi, will address a number of highly topical issues including successful logistics transformation case studies; practical solutions for generating military effect through joint military and industry cooperation; latest concepts and technology for achieving end-to-end process visibility and effective outsourcing strategies.

The impressive expert speaking panel includes, Major General Ken Dowd, Director of Logistics, J-4, USCENTCOM; Baudouin Heuninckx, Advisor to the Head of Air Material Branch, Belgian Ministry of Defence; Colonel Furio Zanatta, Logistic Command, 2nd Division - 1st Department, Head 1st Office "Combat Aircraft", Italian Air Force; Colonel Raimo Petasnoro, Chief of Logistics, Army Materiel Command, Finland Army Materiel Command; Captain Frank Hruska, Assistant Chief of Staff for Logistics and Infrastructure (N4) for Commander, U.S. Naval Forces Central Command, and Ozlem Ergun, Associate Professor and Co-director, Centre for Humanitarian Logistics.

Designed to transform the region's military logistics infrastructure into a true force multiplier and revolutionize the operational capability of the Armed Forces, the newly expanded conference programme will also include a number of streamed sessions in 2010 to allow attendees to tailor their own learning experience. Attendees can choose sessions ranging from best of breed procurement; inventory and spare part management and humanitarian, joint and expeditionary logistics operations.

Other exciting add-ons include pre and post-conference workshops, one of which is to be conducted by George Bond, who is the Chairman of NATO Allied Committee 135. George will share NATO's Codification experience and its shared spare part and inventory management strategies, which have assisted in achieving incremental cost-savings.

Grace Chng, Conference Director, IQPC Middle East says "The 3rd Annual Defence Logistics Middle East event looks set to surpass all expectations in terms of its speaker line-up and content. Even prior to marketing the event, we have gained resounding interest from the armed forces within the region as they move towards building their logistical and supply chain capabilities for improved readiness and cost effectiveness."

About IQPC Middle East:

For over thirty years, IQPC has helped the world's leading corporations solve their business challenges through the sharing of practical industry solutions and global best practice. In the process, the company has built a formidable reputation for quality and value. During this time, the Middle East's most progressive companies have benefited from IQPC's unrivalled global reach, which has connected international expertise with regional and local leaders.

 
 
Agility Hit By Fraud Indictment


Agility Hit By Fraud Indictment

The lawsuit alleges that since 2003, PWC, The Sultan Center Food Products Company (TSC) and Tarek Abbul Aziz Sultan Al-Essa, Agility’s CEO, have made false claims for payment under PWC’s multi-billion contracts with the U.S. Defense Logistics Agency to supply food for the U.S. military in Kuwait, Iraq and Jordan.
The complaint alleges that Agility knowingly overcharged the U.S. for fresh fruits and vegetables that PWC purchased through TSC. The complaint also alleges that PWC failed to disclose and pass through rebates and discounts it obtained from its U.S.-based suppliers.
TSC is a retail chain founded by Sultan Al Essa’s uncle, Jamil Abdul Aziz. He and four other Sultan family members are stockholders in TSC that has shares in PWC/Agility.
The case was initially filed by whistleblower Kamal Mustafa Al-Sultan, a cousin of Sultan Al-Essa and owner of a Kuwaiti company Kamal M. Sultan Co. that had originally partnered with PWC in order to obtain U.S. government contracts.
In 2003, PWC won a contract to become the prime food vendor to U.S. forces in Iraq and Kuwait. As a result PWC’s business grew from $77 million in 2002 to $3.69 billion in 2006. However, reports say PWC won the contract without Kamal, its original partner.
Agility acknowledges the lawsuit was instigated by Kamal, “who has a long history of strong animosity towards PWC, its officers and its employees.” The company says it is “surprised and disappointed that the government has decided to intervene.”
In July 2009 Agility announced it had been awarded U.S. army contracts worth over $6.0 billion with DynCorp International and CH2M Hill for logistics support in Afghanistan. "The task order value is $643.5 million for the one-year base period. The award also includes four one year option periods with a total evaluated value of $5.874 billion," the company said in a statement.
 
DHL Pays $9.4 Million for Export Violation

R.G. Edmonson | Aug 6, 2009 6:26PM GMT
The Journal of Commerce Online - News Story
Security | International Air | Regulation | Trade | Government + Regulation | Asia | Africa | Middle East | United States
U.S. alleged more than 300 barred shipments to Iran, Sudan, Syria
DHL agreed to pay $9.4 million to settle allegations it violated U.S. export controls for shipments to Iran, Sudan and Syria, the government said Thursday.
Export regulators alleged the express carrier violated Office of Foreign Asset Controls regulations between August 2002 and March 2007, making more than 300 shipments to Iran and Sudan. Regulations bar shipments for most goods under Iran transaction and Sudan sanction regulations.
DHL further violated regulations by failing to maintain records on other shipments to Iran, government officials said. Waybills allegedly lacked required descriptions of the goods.
In addition to the settlement, DHL agreed to improve its compliance program, and hire an outside auditor to monitor compliance.