EU DOCK WORKERS STRIKE

Port trade unions from several European countries have staged mass demonstrations on Monday (Jan 16th) in Strasbourg, France, and elsewhere in protest against planned European Union (EU) rules aimed at opening up cargo handling. The demonstration follows a Europe-wide strike by 40,000 dockers last Wednesday (Jan 11th). Thousands of protesters took to the streets in Germany, mainly in Hamburg and Bremen, while hundreds of workers also staged protests in the Netherlands and Finland.
In Belgium, dockworkers at the ports of Antwerp, Ghent, Ostend and Zeebrugge worked four hours less than usual to attend union meetings about the proposed European ports directive. The European Parliament debated the directive yesterday (Jan 17th), before voting on it today (Jan 18th). The bill would open cargo handling to competition, ending the situation in many European ports in which loading and unloading is run by monopoly handlers. Supporters of the directive say the rules are needed to cut costs, speed deliveries and encourage investment in ports across the EU. But dock worker unions fear it would lead to lost jobs, lower wages and less safety.
 
 
CHINESE NEW YEAR

Due to the Spring Festival in China our offices/agents throughout China will be closed from the afternoon of Jan 29th, 2006 to Feb 4th, 2006. However, all offices will arrange to have partial staff on duty that can deal with any emergencies during the holidays. Please note that all the shipping lines and airlines in China will be closed. To avoid delay of shipments, please make shipping arrangement in advance.
 
SECURITY – GETTING AND KEEPING C-TPAT CERTIFICATION


More than 9,000 importers had applied for C-TPAT certification. New applications pour in every month. But obtaining (and keeping) that certification became more difficult last March, when the Bureau of Customs and Border Protection (CBP) introduced new and stiffer standards.
These new standards, which apply to new applicants and current C-TPAT members alike, mean they must now be able to confirm, among other things, that foreign suppliers, vendors and contractors are performing seven-point container inspections, documenting their procedures for issuing keys, changing passwords, and an array of other best security practices.
You must prepare a Security Profile that outlines the steps you are taking and to conduct ongoing internal audits to ensure that employees, vendors, suppliers and trading partners actually follow enhanced policies and procedures.
Security within the supply chain industries will only continue to increase and become more complex. We urge all our customers to take the necessary steps to become C-TPAT certified while this certification is still voluntary.
Please note that IFF is C-TPAT certified and will always continue to be at the forefront of complying to security rules and regulations.
SECURITY SCARY-NUMBERS
• 11.3 million metric tons of cargo passed through US airports in 2003. Less       than 10% was screened for explosives.
• 100% of air passengers and their baggage are screened for explosives.
• Virtually all passenger flights carry air cargo.
• US will spend $4.8 billion on passenger and baggage screening.
• It will spend $115 million on air cargo security.

 
INCREASING OCEAN FUEL SURCHARGES


Although global oil prices are decreasing, members of the Transpacific Stabilization Agreement (TSA), a discussion group of 12 shipping lines, have announced a sizeable increase to the bunker adjustment fee (BAF) effective January 1, 2006. The increase brings BAF to its highest recorded level – the fuel related surcharge for a 20’ / 40’ container moving from Asia to the US will be assessed at $450 / $590. TSA members are implementing the increased BAF to recover costs from a three month period earlier this year when fuel costs jumped from $275 a ton to $358 a ton.
If global fuel costs continue to decline, TSA member lines are expected to offer BAF relief in the second quarter of 2006.
In addition to the increased BAF, customers can expect to see higher fuel surcharges for inland cargo via both rail and truck. Currently, domestic fuel surcharges range between 15% - 20% depending on which mode of transport and carrier.

 
PORT OF NEW ORLEANS ALREADY HALF BACK


After Hurricane Katrina destroyed about one-third of the Port of New Orleans, the port's chief executive turned an offhand remark into a challenge to restart a vital part of the city's storm-ravaged economy. "It all came out as kind of a joke when someone told me, 'You won't have a ship in this port for six months,''' port chief Gary LaGrange recalled. "My response, with a lot of bravado, was we'll be back at 70% within six months.''
So far, so good. Katrina hit 29 August. The first post-storm ship was in port on 12 September. Just over three months later, the port is running at about half capacity. Before Katrina hit, the Port of New Orleans was getting 36 to 40 ship calls a week. Now, the count is 18 to 20. By March or April, the goal is to hit 70% of pre-Katrina calls.

 
IFF PRICING DEPARTMENT


In an effort to be of better service to our customers, IFF has organized and implemented a Pricing Department for any rate inquiries our customers may have. The objective is to produce and send out quotations no later than 24 hours of the initial request.
Please feel free to continue to work directly with your IFF sales or operational representative for your inquiries. However, if you wish you may also forward your rate inquiries direct to sales-marketing@iffusa.com . It is the intention of IFF to strive for the most expeditious manner for any and all rate inquiries. Please let us know if you have any questions.

 
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