Air Carriers servicing inbound cargo over the Atlantic are lowering their fuel surcharge from EUR 0.35 to EUR 0.30 per kg of actual freight weight, effective January 3, 2005. By reducing the surcharge, the carriers are responding promptly to the fall in jet fuel prices in the past two weeks. That decline is reflected in the fuel price index to which the cargo carrier refers in calculating its fuel surcharge. The index is based on the average price of aviation fuel in the world's five key spot markets for crude oil and kerosene.

If you have any questions, please contact your IFF sales or service representative.

The German road tax (the Maut), postponed for more than a year, has finally been introduced on January 1, 2005. The tax will be EUR 0,15 per kilometer and will include the empty positioning. Many European countries already charge toll fees for trucks using motorways, bridges, and tunnels. The EU-Commission aims at harmonizing road toll systems towards one system in order to entail the impact of trucks on the road net. Furthermore, the toll fees are to include costs for tailbacks, environmental impact and risk of accidents. Again, this will concern all road transports within Germany as well as between Sweden, Holland, Belgium, France, Luxemburg, Switzerland, Austria, Italy, Spain, Portugal, the Czech Republic and Slovakia.

We are all victims of this tax. We will charge the tax separately on our invoices.

If you have any questions, please contact your IFF sales or service representative.

Due to recent storms in parts of California and Nevada the UP Rail Road (UPRR) suffered severe damage.

This has lead to an embargo by UPRR to the following destinations: Chicago, Kansas City, St. Louis, Council Bluffs, Cleveland, Columbus, Detroit, Indianapolis, Louisville, Pittsburgh, Boston, NYC (Kearny NJ), Philadelphia, Baltimore, Norfolk.

There is a serious backlog of containers accumulating in the Los Angeles/ Long Beach Ports. As a result temporary alternative routing guidelines have been implemented until the situation has improved. It is expected that this embargo to the above destinations will continue for the next 2-3 weeks.

If you have any questions, please contact your IFF sales or service representative.

Commencing January 1, 2005, the U.S. is imposing new reporting requirements for hazardous materials. An undeclared hazardous material is defined as "one offered for transportation without any visible indication to the person receiving it, such as a dangerous goods declaration or a placard, that a hazardous material is present."

Within thirty (30) days of its discovery, an electronic or written report must be made to the government of the undeclared hazardous material(s). The report must be filed by the entity in "physical possession" or having "physical control" of the shipment at the time of its discovery.

If such a shipment is involved in a spill or similar incident, additional reporting requirements, such as immediate telephone reporting, may be required.

Shippers News Wire reports that Department of Homeland Security (DHS) officials have stated that Customs-Trade Partnership Against Terrorism (C-TPAT) is evolving from a purely voluntary program in which industry adopts recommended supply chain practices to one in which participation will be based on minimum security standards.

DHS sources also noted that C-TPAT will transition to a "universal requirement for the whole industry." According to the article, some Customs and Border Protection (CBP) officials are indicating that the new C-TPAT rules could be implemented within thirty (30) days.

If you have any questions, please contact your IFF sales or service representative.