Lufthansa Cargo aircraft crashes at Riyadh

Kizzi Nkwocha | Thu, 1 Jul 2010

Staff found package of depleted uranium when crate burst

The US Federal Aviation Administration (FAA) has fined two companies US$422,500 for sending a radioactive shipment of depleted uranium as cargo on a British Airways passenger flight. 

The FAA alleges that IIS & Allied Services and its freight forwarder, Gallant Freight & Travels, failed to declare the hazardous nature of the shipment, which wasn’t properly packaged or labelled. 

It is reported that the deadly cargo was put on a flight from Mumbai, India, to Logan International Airport, Boston, in 2008. 

The depleted uranium was destined for QSA Global, in Burlington, Canada. which specialises in supplying radiation material used in test devices, industrial processes and medical research. 

Radioactive materials are not allowed to be shipped as cargo aboard passenger aircraft, with some exceptions. 

Employees at British Airways’ Boston cargo facility discovered the radioactive material when the bottom of the shipment’s crate failed, revealing inner packaging warning that it contained depleted uranium and shouldn’t be shipped on a passenger plane. 

British Airways has prohibited radioactive cargo since 2004. But airline spokesman John Lampl said the crate was an “undeclared shipment,” and the screening used in India didn’t detect radiation. 

The shipment cleared customs five days after it landed at Logan. The cargo facility was evacuated when the material was discovered. “Unharmful” traces of radioactivity were detected, Lampl said.

The Journal of Commerce Online - News Story

Tensions with port employers worsen as walkout enters second week.

Tensions increased in the strike by office clerical workers at the Los Angeles and Long Beach ports on Friday as the union picketed a third employer and withdrew its previous wage and benefits proposal.

Cargo handling at the nation’s largest port complex went on unaffected, however, under a waterfront arbitrator’s order that International Longshore and Warehouse Union dockworkers should not honor the picket lines.

The OCU on Thursday began picketing COSCO Agencies (Los Angeles), which performs agency work for China Ocean Shipping Co. The OCU since last week has been picketing Yusen Terminals and the Ports America facilities.

Dockworkers briefly honored the picket lines, but the arbitrator, who had already ruled the OCU was not bargaining in good faith, ordered the dockworkers to return to their jobs.

At the same time, the OCU withdrew its offer to maintain wage and pension levels and left no new proposal on the table, said Stephen Berry, the attorney who is representing 14 marine terminals and shipping lines in the negotiations.

“The OCU claims their actions are aimed at preserving job security, but the harbor employers have already answered that concern by offering protection against layoffs due to existing or new workplace technologies,” Berry said.

He added employers have promised not to outsource or transfer any bargaining unit work away from the OCU and they have added protection against layoffs for any other reason. John Fageaux, OCU president, could not be reached for comment.

Members of the Office Clerical Unit of ILWU Local 63 walked off their jobs at two terminals at midnight June 30 when their three-year contract expired. The OCU, though affiliated with the ILWU, has a separate contract with terminal operators and shipping lines.

The average OCU wage in 2009 was $96,900 and workers receive an additional $66,000 in benefits, according to employers. Employers are offering a $1 per-hour increase and a 10 percent increase in pensions over a six-year contract.

-- Contact Bill Mongelluzzo at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

D.T. Gruelle will be closed on the following dates of 2010:

·         New Year's Day

·         Memorial Day

·         Labor Day

·         July 5^th

·         Thanksgiving Day

·         Christmas Day

The Commission found that the 21 airlines had conspired to introduce fuel surcharges and continue to raise surcharge rates for air cargo to and from Korea between 1999 and 2007.

According to the KFTC, the airlines conspired on four routes: outbound from Korea, and inbound to Korea from Hong Kong, Europe, and Japan.

Conspiracies on outbound shipments from Korea:

In June 2002, Korean Airlines and Lufthansa agreed to introduce fuel surcharge. Later, another fifteen airlines (Malaysian Airline, Swiss International Air Lines, Singapore Airlines Cargo, Japan Airlines International, Nippon Cargo Airlines, All Nippon Airways, Asiana Air, Air France (including Air France-KLM), British Airways, Cargolux Airlines International, Cathay Pacific Airways, KLM Airlines, Qantas Airways, Thai Airways International ) reached an agreement to impose fuel surcharge of 120 won per kg starting from April 16, 2003, and also agreed to raise surcharge rates in October 2004, July 2005 and November 2005.

Conspiracies on shipments from Hong Kong to Korea:

In January 2000, seven airlines (Korean Airlines, Asiana Air, Air Hong Kong, Air India, Cathay Pacific Airways, Thai Airways International, Polar Air Cargo) agreed to start imposing fuel surcharge of 0.50 HK$ per kg from February 1, 2000, and consistently colluded to increase surcharge rates adjusting to oil price hikes.

Conspiracies on shipments from Europe to Korea:

Between December 1999 and February 2000, eight airlines (Korean Airlines, Lufthansa, Scandinavian Airlines, Air France (including Air France-KLM), Japan Airlines International, Cargolux Airlines International, KLM Airlines) agreed to introduce a fuel surcharge of €0.10 per kg starting from February 1, 2000. The cartel was later expanded to involve additional air carriers (British Airways - September 18, 2000, and Singapore Airlines Cargo - December 2003). They agreed to raise the surcharge rates adjusting to oil price increases and actually implemented the agreement.

Conspiracies on shipments from Japan to Korea:

Between September and October 2002, five airfreight carriers (Korean Airlines, Asiana Air, Japan Airlines International, All Nippon Airways, Nippon Cargo Airlines) agreed to impose fuel surcharge of ¥12 per kg starting from October 16, 2002, and continued to reach and implement an agreement to raise surcharges according to oil price hikes.

The commission estimated that these practices had cost exporters 6.7 trillion won in excessive freight charges.

Fines:

• Air France: 3.71 billion won
• Air France-KLM: 5.43 billion won
• Air Hong Kong: 104 million won
• Air India: warning
• All Nippon Airways: 1.3 billion won
• Asiana Airlines: 20.66 billion won
• British Airways: 950 million won
• Cargolux: 2.05 billion won
• Cathay Pacific: 4.1 billion won
• Japan Airlines: 3.87 billion won
• KLM: 7.84 billion won
• Korean Airlines: 48.74 billion won
• Lufthansa Cargo: 12.1 billion won
• Malaysian Airline: 1.12 billion won
• Nippon Cargo Airlines: 1.17 billion won
• Polar Air Cargo: 850 million won
• Qantas Airways: 131 million won
• Scandinavian Airlines: warning
• Singapore Airlines Cargo: 2.35 billion won
• Swiss International Airlines: 265 million won
• Thai Airways: 2.78 billion won

According to newswire reports, Korean Air said that its penalty was reduced by more than half to 22.2 billion won, because it cooperated in the probe and reported the unfair practices voluntarily.

The Korean probe follows similar investigations in the EU, US, Canada, Australia and New Zealand into cargo-carriers and freight forwarders.

USA EXPORT: CLIENT ADVISORY

SOUTH AFRICA PORT STRIKE
Due to a Union strike, all import and export operations are currently encountering service disruptions at the ports in South Africa. As a result, all ports are functioning with limited staff and slowdowns in operations. At this point, there is no foreseen resolution to the current condition. Delays in release of cargo and port congestion should be expected.