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by Alicia Rudnicki, Editor, The IRTA Report
Short but powerful-that's the plan for The Annual Convention of IRTA, Reefer Transpo 2000, which will convene June 22 and 23 at Baltimore's Hyatt Regency on the Inner Harbor. The streamlined program will provide members with more time for valuable networking and for sightseeing in the beautiful Chesapeake Bay region.
Keynote speaker Bill Bryant, will get the meeting rolling with a presentation entitled "The Global Trade Environment for Fresh Produce."
Bryant is the chairman of the U.S.-based Bryant Christie, Inc., which helps exporters eliminate trade barriers, develop new markets and manage their international government affairs. Aside from aiding clients with international marketing and market access issues such as quotas and quarantines, Bryant Christie provides a variety of Internet-based information services.
From 1994 to 1998, Bryant was vice chairman of the Agricultural Technical Advisory Committee that counsels the federal administration on trade policy issues. In addition to governmental appointments, Bryant is active in industry and community trade-related organizations such as the Executive Committee of the Washington (state) Council on International Trade. He is a graduate of Georgetown University's School of Foreign Service.
Broad Spectrum of Speakers
From a global energy executive to the president of a design/construction company that specializes in climate-controlled structures, IRTA 2000 will offer a broad spectrum of speakers related to refrigerated transportation.
A complete convention schedule appears on page 7. Following are brief descriptions of some of the companies and government agencies providing presentations:
AES New Energy. Vice President David Kessler will talk about "Deregulation and the Refrigeration Industry." AES NewEnergy offers retail marketing of energy. It is located in the U.S. and is a branch of the global energy giant, AES Corporation.
East Coast Warehouse & Distribution Corp. This family owned and operated company has warehouses in Canada as well as at the Port of New York and New Jersey's Port Newark/Elizabeth Terminal. It is heavily involved in importing and distributing a wide range of gourmet foods including 40 kinds of cheese. So the company's executive vice president, Marc Lebovitz, will be well prepared to discuss "Cheese and Dairy Products."
National Fisheries Institute. This fish and seafood trade association represents firms ranging from small family-owned businesses to large multinational corporations. The Institute's director of food technical affairs, Dan Herman, will talk about issues facing the seafood products industry.
St. Onge, Ruff & Associates, Inc. (SORA). An industrial design and construction company, SORA provides full service project management. It has been the leader in ammonia refrigeration since 1946. Today, it also leads in production of climate-controlled facilities that use alternate refrigerants. SORA President David Cooksey will give a presentation on "Refrigeration Systems Technology."
USDA/Foreign Agricultural Service (FAS). Frank Tarrant, director of the Horticultural and Tropical Products Division of FAS will discuss "World Markets for U.S. Agricultural Products." FAS handles the U.S. Department of Agriculture's overseas programs including market development, international trade agreements and negotiations, and the collection of statistics and market information. It also administers food aid programs.
Other Presentations. From claims management to reefer technology to the current concerns of ocean carriers, there will be many other presentations including a number of informal "breakout" sessions. In short, there is something for everyone in the industry.
Who and What Is IRTA?
Established in 1994, IRTA is comprised of more than 300 members from Asia, Europe, Latin America and North America. Our organization formed to fill a void in the transportation industry. Before IRTA there was no single association in which representatives of all areas of the refrigerated transportation industry could meet. We draw together manufacturers, equipment suppliers, ports, warehouses, producers, growers, receivers, consignees and logistics companies.
A registration form for The Annual Conference of IRTA, Reefer Transpo 2000 is available on page 8 of this issue. Or you may electronically register at our website www.irta.org.
See you in Baltimore for great seafood, a stroll on the harbor and some world-class networking!
by Robert C. Mirone
Our year 2000 convention is just weeks away. This year's gathering will be marked by an exceptional event-the presentation of our first Lifetime Achievement Award. I cannot think of anyone more deserving of this honor than Sheldon Meyer. Most, if not all, of you know Sheldon from his many years in the transportation industry as a reporter and editor for the Journal of Commerce, as the JOC's convention and conference organizer and as a director of IRTA.
You may also know Sheldon as the main force in putting together our annual program. What many may not know is that Sheldon is the "father" of IRTA. He put forth the idea for our organization in San Diego, California, in 1994. Sheldon felt that there was a sufficient community of interest among those engaged or having an interest in various aspects of the reefer industry. The International Refrigerated Transportation Association formed several months later.
I will save a fuller exposition of Sheldon's background for our meeting in Baltimore this June. Meanwhile, I just want to thank him for bringing IRTA to life.
A Regretful Goodbye
It is with regret that I announce the departure of an outstanding member of our board of directors. Lucia Avetikian, consul general of Chile at Philadelphia, is being recalled to Chile after many years of outstanding service to IRTA. Lucia's intellectual achievements and always pleasant outlook have made her a highly qualified representative of her country. She fostered what has been a continually growing relationship between the United States and Chile.
Lucia, we wish you the best on your new assignment and, quite selfishly, hope that you are posted again to the U.S.
Law Committee's Efforts
As many of you in the ocean shipping community are aware, the U.S. Carriage of Goods by Sea Act (COGSA) is in the process of being substantially amended. The amendments are far reaching and will be felt throughout the industry. The first article in a two-part series on these proposed changes appears in this issue.
Stephen Galati, a new member of IRTA and of our Law and Legislation Committee, wrote these articles to help our members evaluate how the changes may affect the way business is done. Stephen is a shareholder in the Philadelphia firm of Mattioni, Ltd. Thank you, Stephen, and welcome to our association.
Speaking of ocean shipping, the Law and Legislation Committee is also working on an article commenting on the proposed change in the regulations under section 883 of The Tax Reform Act of 1986. This proposal seeks to tax foreign shipping companies on U.S. source revenue whether derived from the carriage of passengers or cargo to or from U.S. ports. This is a hotly debated topic. If passed, the proposed change will create a ripple effect extending to exporters, importers and consumers.
Keep in Touch
Lastly, I once again remind you that we continue to search for articles of interest to our membership. Anyone who wishes to submit an article, press release or social note may contact IRTA Executive Director Douglas Ravnholdt and IRTA Report Editor Alicia Rudnicki by e-mail irtamail@aol.com or regular mail (The IRTA Report, 4255 South Buckley Road, Suite 118, Aurora, CO 80013).
Reprinted with permission from The Journal of Commerce
A shortage of trained drivers is slowing the trucking industry in Europe, particularly in specialized sectors such as chilled goods and hazardous materials, a European trucking association said in late April.
Driver shortages have been documented in Germany, France, Britain and the Benelux countries, but can be found across the continent, said Marie-Therese Chanetzki, a spokeswoman for the International Road Transport Union (IRU).
According to the IRU, the problem in Europe is not an overall shortage of manpower but a shortage of specialized skills, such as those required to operate refrigerated trucks or navigate large vehicles through congested cities.
Poorly Trained Operators
Chanetzki said that an influx of low-wage drivers from Eastern and Central Europe in some ways compounds the problem by distorting the market and introducing poorly trained operators.
The problem in Britain is exacerbated by a strong pound and by Europe's highest vehicle excise and fuel taxes, according to Geoff Dosseter, a spokesman for the UK Freight Transport Association, which represents shippers who own and operate their own fleets.
The shortage of skilled labor in Britain has been worsening for several years, and may be aggravated by pressure on the market from vehicles from outside Britain. Those drivers, while not operating much between domestic British points, are siphoning off a segment of the market for hauling British goods to Europe, Dosseter said.
New Budget Plan Helps
Britain's recent budget plan alleviates some of the problem by freezing duties on diesel fuel at the rate of inflation and by reducing tax rates on the heaviest vehicles.
"It's a start," Dosseter said. But he added that the nationwide shortage of drivers is "genuine and difficult," and that although the shortage of skilled labor is acute, there is still downward pressure on freight rates and therefore on pay scales for drivers.
The continued low wages for drivers, given the high demand, "is a curiosity," Dosseter said. "I can't explain it."
According to a recent study conducted by the Freight Transport Association, the industry's "unattractive image" makes recruiting difficult. It adds "there are no recognizable career paths for entrants across the full spectrum of potential applicants." The report notes that the average age of drivers of heavy-goods vehicles is rising, "which could lead to further skills shortages as retirements take place."
by Stephen J. Galati, Esquire, Mattioni, Ltd.
Author's Note: This article is the first in a two-part series that briefly discusses the key areas in which the new, proposed U.S. Carriage of Goods by Sea Act ("revised COGSA" or "the new Act") would change the existing law.1 Part I addresses the history of COGSA, the reasons why revisions are being proposed, and how the coverage of the new Act would differ from the coverage of the original COGSA. Part II, which will appear in the August issue of The IRTA Report, will discuss changes the new Act would make in provisions concerning the carrier's defenses, package limitation and choice of forum.
What is the history of the U.S. Carriage of Goods by Sea Act (COGSA) and what is the rationale for its proposed revision?
COGSA, which was enacted in 1936, is the United States' version of the Brussels Convention of 1924, known as The Hague Rules. The 1936 Act applies to waterborne carriage of goods to and from the United States performed pursuant to the terms and conditions of bills of lading. Cargo shipped pursuant to charter parties is subject to COGSA only if the parties so agree. COGSA does not apply to domestic shipments in the United States that are covered by The Harter Act.
The Hague Rules
The international version of the Hague Rules, originally enacted in 1924, was modified in 1968 by the Visby Protocol ("Hague-Visby" Rules). The Hague-Visby Rules have been adopted by most of Western Europe, as well as Australia, Canada, Hong Kong, Japan and Singapore. Not long after the Hague-Visby Rules were enacted, the United Nations Commission on International Trade Law also revised the Hague Rules, establishing a different liability regime. Completed in 1978, these were called the Hamburg Rules. They were adopted by 22 countries, which, with the exception of Chile, are not major trading partners of the United States.2
The U.S. has not adopted either the Hague-Visby or Hamburg Rules; thus the nation's controlling law on the carriage of goods by sea is more than 64 years old. Due to the age of COGSA and some inconsistencies that have arisen over the years, there has been widespread agreement that COGSA needs to be updated. However, there has been disagreement as to how it should be done. Some carrier interests argued that the Hague-Visby Rules should be adopted by the United States and some said the Hamburg Rules should be followed. Still others argued that the United States should wait for a new international regime. This deadlock resulted in no action being taken.
Seeking a Compromise
To resolve this stalemate, the Maritime Law Association of the United States ("MLA") took on the task of revising COGSA. It wanted to create a compromise solution that, taken as a whole, would be acceptable to the different sectors of the maritime community. The MLA took into account the interests of shippers, carriers, charterers, cargo insurers, P & I clubs, stevedores and terminal operators.3
The MLA proposal, which adds to the framework that was established by the Hague Rules and continued in the Hague-Visby Rules, seeks to move the laws of the United States closer to those existing in other countries. The proposed new Act, while seeking to update and improve the law, represents a compromise among the competing industry interests. In some cases it would modify the prevailing law in favor of cargo interests and in others it would favor carrier interests. As of this writing, the MLA proposal is in the hands of the United States Senate's Commerce, Science, and Transportation Committee. It is expected that the bill will be introduced shortly.
The new Act has a much broader scope of coverage than the original COGSA, which applied only in foreign commerce. In contrast, the revised COGSA would apply to domestic as well as foreign shipments, with the exception of "contracts for transportation in domestic trade exclusively on the Great Lakes, rivers or other inland waters, or the intercoastal waterway."4
Tackle to Tackle
The original COGSA applies as a matter of law, only from "tackle to tackle"-that is, only while the cargo is on the ship or in the process of being loaded or unloaded. The new Act would eliminate the tackle-to-tackle limitation and extend COGSA's application to the period "from the time the goods are received by a carrier to the time they are delivered to a person authorized to receive them."5
This provision would not extend COGSA's coverage to inland transportation to the place of receipt or from the place of delivery. However, as a practical matter, if the carrier receives the goods at an inland location, and/or the person entitled to receive them is located at an inland location, the revised COGSA would apply to inland carriage by the contract carrier as well. For example, if a carrier issues a through bill of lading from Arizona to Rotterdam, the revised COGSA would apply to the entire transit, including the inland portions.
To cover this entire transit, the revised COGSA would provide for a comprehensive liability scheme for all persons who might be involved in this transportation, including ocean carriers, stevedores, terminal operators, freight forwarders and all of their servants, subcontractors,6 etc. State law would be preempted and the federal courts would have jurisdiction to resolve disputes concerning the transportation of the goods.7 However, the new Act would not apply to interstate trucking or rail carriers to the extent that they are performing trucking or rail services, unless they are contracting carriers.
Contracts of Carriage
The revised COGSA would apply not only to situations where bills of lading are issued, but also to all contracts calling for the carriage of goods by sea, except charter parties. This would eliminate ambiguities in COGSA where it was unclear if the 1936 Act applied to electronic bills of lading and sea "waybills."
The revised COGSA would not apply to "towage contracts" themselves, but would apply if a bill of lading were issued under a towage contract and negotiated to a third party. In the same way, although the revised COGSA would not apply to charter parties, if a bill of lading were issued in connection with a charter party and a third person's rights were governed by that bill of lading (such as through negotiation) then the revised COGSA would apply.8
Finally, the revised COGSA would apply to deck carriage, but not to the carriage of live animals. In the rare instances where live animals are carried, the Harter Act will continue to apply.
Stephen J. Galati, Esquire, is the new chair of IRTA's Law and Legislation Committee. He is a graduate of the United States Merchant Marine Academy and Tulane University School of Law. He is a shareholder with the firm of Mattioni, Ltd. Mr. Galati's practice is concentrated in all areas of maritime and transportation law, including cargo claims, charter parties, ship operation and management disputes, inland transit and maritime liens. Stephen Galati can be contacted c/o Mattioni, Ltd. 399 Market Street, Philadelphia, PA 19106, Tel.: 215-629-1600, Fax: 215-923-2227, e-mail: sgalati@mattioni.com. He welcomes any questions about the above article or related areas of law.
Notes
1. This article is intended only to provide a brief overview. For a more detailed explanation of all the proposed changes and the reasons therefore, please contact the author or the Maritime Law Association. Also, the final version of the revised COGSA is subject to modification by Congress and the exact terms of the new COGSA enacted into law will not be known until the President signs the bill.
2. Countries that have adopted the Hamburg Rules include Austria, Barbados, Botswana, Burkina Faso, Cameroon, Chile, Egypt, Guinea, Hungary, Kenya, Lebanon, Lesotho, Malawi, Morocco, Nigeria, Romania, Senegal, Sierra Leone, Tanzania, Tunisia, Uganda and Zambia.
3. "Revising the Carriage of Goods by Sea Act", Final Report of the Ad Hoc Liability Rules Study Group, at p. 4.
4. Revised COGSA, section 1(b); "Revising the Carriage of Goods by Sea Act," Final Report of the Ad Hoc Liability Rules Study Group, at p. 10.
5. Revised COGSA, section 1(e).
For the pre-loading and post-discharge period, the Harter Act, 46 U.S.C. App sections 1190 et seq. applies as a matter
of law.
6. "Revising the Carriage of Goods by Sea Act," Final Report of the Ad Hoc Liability Rules Study Group, at p. 9.
7. Id. at p. 10.
8. Id. at p. 12.
Global Intermodal Awards Announced
HAVE YOU OR HAS YOUR COMPANY CREATED what you think is a "best solution" for improving and promoting intermodalism? The European Intermodal Association (EIA) is holding a competition to reward innovators in the industry. EIA wants to hear from you. It says the "playing field will be global and concern the whole intermodal industry."
The awards will be announced in November at an intermodal conference in Genoa, Italy. Applications should be received before September 30, 2000.
There are four categories of awards based on kinds of intermodal providers. These are:
For more information about the European Intermodal Association and the awards, contact EIA on the web at www.eia-ngo.com.
Container Inspector Exams Scheduled Through 2001
THE INSTITUTE OF INTERNATIONAL CONTAINER LESSORS, INC., (IICL) will hold its Inspectors' Certification Exams in more than 45 locations around the world on November 11, 2000 and November 10, 2001. The sites will include Chicago, Hong Kong and London.
The Institute's U.S. Chassis Exam will be given throughout the United States in cities from New York to New Orleans to Los Angeles.
As the only existing certification program in the container and chassis industries, the IICL examinations provide an important measure of competence in the field of equipment inspection and repair. The IICL has certified more than 6,100 inspectors over the past 17 years.
For more information, including fees and scholarships, contact the Institute of International Container Lessors at Box 605, 630 Old Post Road, Route 22, Bedford, NY 10506, U.S.A. Call them at (914) 234-3696 or fax (914) 234-3641. E-mail may be sent to Lrae@iicl.org and the Institute's website can be accessed at www.iicl.org.
Thursday, June 22
8:00-8:15am
Continental Breakfast
8:15-8:30am
Welcoming Remarks
Robert C. Mirone, President, International Refrigerated Transportation Association
Bill Ralph, President, Journal of Commerce Group
8:30-9:00am
Keynote Address - The Global Trade Environment for Fresh Produce
Bill Bryant, Chairman, Bryant Christie
9:00-9:30am
World Markets for U.S. Agricultural Products
Frank Tarrant, Director, Horticultural and Tropical Products Division, USDA/Foreign Agricultural Service
9:30-10:00am
Meat Exports and Imports - Industry Reports
10:00-10:30am
Cheese and Dairy Products
Marc Lebovitz, Executive Vice President, East Coast Warehouse & Distribution Corp./Safeway Trucking Corp., Divisions of Romark Logistics Corp.
10:30-10:45am
Coffee Break - Sponsored by Port of Wilmington
10:45am-11:15am
Seafood Products (Chilled and Frozen)
Dan Herman, Director of Food Technical Affairs, National Fisheries Institute
11:15-11:45am
Latin America and Mexico
John S. Chagin, President, Pacific Delaware, Inc.
12:00-1:30pm
Luncheon
IRTA Executive of the Year Award
IRTA Lifetime Achievement Award - presented to Sheldon Meyer, Conference Director, Journal of Commerce Group
2:00-3:00pm - Breakout Session I
Reefer Perishable Commodity Technology
Moderator: Barbara J. Pratt, General Manager, Reefer Operations & Marketing, Maersk Sealand
2:00-3:00pm - Breakout Session II
Refrigerated Warehouse Technology
Refrigerated Warehousing at the Port of Wilmington
Moderator: John E. Reece, Port Engineer, Port of Wilmington
Refrigeration Systems Technology
David Cooksey, President, St. Onge, Ruff & Associates, Inc.
Application of Computer Technology
Michael P. Webster, President, ICETECH.COM Inc.
Deregulation and the Refrigeration Industry
David Kessler, Vice President, AES New Energy
2:00-3:00pm -Breakout Session III
Claims & Claims Management
Moderator: Joe Carone, Team Leader Recovery, Fireman's Fund McGee Marine Underwriters
David Y. Loh, Attorney, Nicoletti Hornig Campise & Sweeney
Ghulam Suhrawardi, President & CEO, National Marine Consultants Inc.
Christian H. Wilson, President, Portlight, Inc.
3:00-3:15pm
Coffee Break - Sponsored by Maryland Port Administration
3:15-4:15pm
Breakout Session I, II and III (continued)
4:30-5:00pm
IRTA Annual Membership Meeting
5:00-6:30pm
Cocktail Reception
Friday, June 23
8:00-9:00am
Continental Breakfast
9:00-10:15am
Ocean Carriers
Moderator: John P. LaRue, Executive Director, Port of Corpus Christi
10:15-10:30am
Coffee Break
10:30-11:45am
Surface and Air Transportation
Moderator: William Armbruster, Logistics Editor, The Journal of Commerce
Peter M. Diefenbach, Assistant Director, Nippon Cargo Airlines
Mike Navaroli, Executive Director, Envirotainer Services
Additional Sponsorships from:
Do you have a joke or funny anecdote that you would like to share? Just pass it on to The IRTA Report by e-mail irtamail@aol.com. Here are a few to pass around.
Palatable Advice?
Always keep your words soft and sweet, just in case you have to eat them. -Anonymous
New Office Vocabulary
Seagull Manager-A manager who flies in, makes a lot of noise, dumps over everything and then leaves.
Chainsaw Consultant-An outside expert brought in to reduce the employee head count, leaving the brass with clean hands.
Ohno-second-That miniscule fraction of time in which you realize that you've just made a big mistake.
Percussive Maintenance-The fine art of whacking an electronic device to get it to work again.
Idea Hamsters-People who always seem to have their idea generators running.
-Source: Joke of the Day (www.joker.org)
NEED TO CONNECT WITH IRTA? CALL TOLL-FREE (888) 454-IRTA. AVAILABLE THROUGHOUT NORTH AMERICA, OUTSIDE NORTH AMERICA DIAL (303) 690-3233.