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August, 2007
IIFA Newsletter
Limits of Liability (Cargo Claims)
By Sea - Hague Visby Rules
SDR 2per kilo or
SDR 666.64 per package
By Road - CMR
SDR 8.33 per kilo
By Air- Warsaw/Montreal
SDR 17 per kilo
IIFA Standard Trading Conditions
SDR 2 per kilo
(The SDR rate on 21/08//07 according
to the International Monetary Fund
was
1 Euro = 0.885372 SDR
http://www.imf.org
Incoming President of IIFA 2007
Finbarr Cleary
New IIFA Council for 2007/08
The following were elected as incoming officers of the new 2007 Council at
its first meeting on 19th June 2007.
President
- Finbarr Cleary of Celtic Forwarding Ltd.
Hon. Secretary - Richard Clery of Irish Shipping & Transport Limited
Hon. Treasurer - Paddy Kenny of Schenker (Ireland) Limited
Council Members:
Vincent Brennan of Phoenix International Freight Services Ltd.
Pat Nolan of TwoWay Aramex
Brian Stears of Campbell Freight Ltd.
John O'Hanrahan of DHL Freight
Brett Gourlie of TDG Ireland Ltd.
Retired from last Council:
Graham O'Reilly of TDG Ireland Ltd.
John Bermingham of Expeditors Ireland Ltd., who was Hon.Treasurer.
New Members
At the council meeting in June the following firms were elected as Full
Trading Members:
W.T. Sea- Air International
BBT International Logistics
Toga Freight Services
At a Glance
1)
2)
3)
4)
New IIFA Council
New Members
FIATA World Congress
AEP II
5) Port Congestion
6) CLECAT focuses on
green issues
7) Quinn Direct in Germany
8) Belfast reclaims land
9) Another Jack in the box
10) New Eucon Service
11) Who will control
Irish Continental Grou
12) Pentagon Payments
13) Real Estat
14) Cargo 2000 pioneer dies
15) Alan Hines RIP
16) Aer Lingus
Belfast Route
17) World Trade and the
Doha Round – Last Ditc
18) Irish Ferries’ new ship
19) Piracy Plague
and the last word.
Please feel free to forward
this Newsletter to any
interested colleagues,
who can register to receive
it directly from us at
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iifa@eircom.net
Colm Walsh
Chief Executive IIFA
For the next council meeting there are four applications for consideration
for membership as full trading members:
ICS Forwarding Ltd
Hawthorn Logistics
Hamilton Shipping Ltd
Aquaship Agencies
FIATA World Congress
The FIATA World Congress is taking place in Dubai this year
from October 18 - 22 under the patronage of His Highness
General Sheikh Mohammed Bin Rashid Al Maktoum who is Vice
President and Prime Minister of the United Arab Emirates and
Ruler of Dubai.
H.H. Sheikh
Ahmed Bin Saeed Al
Maktoum President
of Dubai Civil
Aviation and
Chairman of
This is the second time Dubai has hosted this event since 1999.
Emirates Group who
The theme of the Congress is "Economic Mobilisation through
is also Patron of the
Transport Logistics".
National Association
of Freight and
Logistics (NAFL)
in UAE.
With direct flights from Dublin to Dubai, it represents a unique opportunity to make world wide contacts in the
logistics and forwarding world and at the same time view the many landmark developments in Dubai and feel its
dominance as the region's freight and logistics capital.
Please contact us at IIFA@eircom.net or phone 01 8455411 for the Congress brochure.
See also http:www.fiata2007.ae or email any questions directly to FIATA2007@mci-group.com
The venue is The Grand Hyatt Hotels and Convention Centre.
The opening ceremony is on Friday 19th October 8.30 am.
Apart from the business meetings there will be three optional tours for accompanying persons or indeed "active
persons" at a small additional cost.
On 19th October - Dubai City Tour "Taste of Dubai"
On 20th October - Dubai Shopping Tour
On 21st October - Cultural Tour
On the 18th of October there will be golf at the Arabian Ranches Golf Course. Extra charge of US$196.00
Whetted your appetite?
For an updated list of participants at the congress please go to website http://www.fiata2007.ae (weekly update)
P.S. Dubai has a sub tropical arid climate.
AEP II
We invite readers of our newsletter to comment on their experience of the introduction of the new system.
A meeting of the Customs Consultative Committee has been arranged for September. Your comments would be
appreciated by close of business on Friday next 24th of August to iifa@eircom.net
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Port Congestion
Congestion will continue to grow as a problem and by all current appearances will become more painful a long time
before that other fear - global warming - causes dramatic changes to the way we manage our affairs.
At the recent Coastlink annual two-day conference in Dublin the "Dublin Declaration" was drawn up which called
for a cohesive and inclusive European strategy to address this issue in European ports. It also raised the question of
the role that regional ports can play.
The Director of the Irish Maritime Development Office, Glenn Murphy highlighted the dependency of this country
on major European ports both for access to EU markets and as transhipment points for its deep sea trade. He quoted
statistics: "In 2006 we estimate that E130bn of goods were transported via our ports and shipping services". He
went on to say that this figure represented over 90% of all traded goods travelling "in and out of our country by
sea". "Over 64% of our trade last year was intra European and European ports are major transhipment points for
Irish trades to the wider global economy".
It is hardly necessary to point out that the causes and the cures may not all lie with the major European ports.
Perhaps an equally critical look could be cast on our own local ports in Ireland with a view to improving the total
process of moving boxes through them?
If you have any comments to make on this please email us at iifa@eircom.net
CLECAT focuses on green issues
European forwarding association CLECAT recently established a working group on sustainable logistics to reflect
the growing importance of environmental issues and their economic impact on the transport sector. The group will
tackle all issues related to sustainability in logistics, with a special focus on environmental EU legislation. The
members met for the first time on 5th July in Brussels and elected Erica Kronhoffer from Green Cargo as
chairperson.
The first meeting concluded that this group could play a significant role in addressing sustainability in logistics from
the uniquely independent perspective of non-asset based service providers. It will review pro-actively the
environmental impact of EU legislation.
Quinn Direct in Germany
According to a report in Lloyds List Quinn Direct is about to open an office in Frankfurt with offerings
including marine. Quinn will offer liability and property cover and is following in the footsteps of firms
such as Mitsui Sumitomo of Japan, QBE of Australia and Mapfre of Spain who have set up in business in
Germany since the beginning of this year. For the past three years the German market has been extremely
lucrative. Quinn is particularly interested in the construction industry, cement, glass and plastics factories,
hotels and the hospitality sector according to Fred Slikker the head of European operations for the
company. The company is aiming only for business clients on the continent. In the UK and Ireland it is
mainly active in private client business.
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Belfast reclaims land
The port of Belfast announced plans to reclaim 48ha of land from Belfast Lough at a cost of £630m (US$1.18bn).
The decision was taken on the basis of a report which predicts that Northern Ireland traffic will double over the near
future and the terminals, quays, warehouses and roads need to be in place to handle that growth.
Another Jack in the Box
There was a report in the IFW last month of a Kenyan man who was discovered loaded into a box being readied for
export to Kenya's Eldoret International Airport at Dubai International Airport. The former Dnata employee
apparently planned to utilise a scheduled weekly charter freighter operated by Emirates to get home. He had packed
himself into a small wooden box with some food, water and an oxygen bottle, to help him breathe at high altitude.
(We hope some of the budget airlines don't hear of this!)
However he did not leave the ground because as the shipment was being palletized, staff heard loud banging inside
the crate and the unorthodox traveller was handed over to customs. The Sales and Service agent involved Air Cargo
Trader (ACT) was still awaiting the results of a police investigation. It denies any prior knowledge of the stowaway,
although some of its staff have been detained by Dubai police.
New Eucon Service
As from July 18th Eucon Shipping and Transport opened a new route between Dunkirk and Dublin. Carrying a wide
range of containers including 20'Dry, 40' HCPW (High cube Pallet Width), 45' HCPW, 20'Flat and 40'flat.
This is a weekly service.
Calls
Dunkirk: Wednesday morning
Dublin: Friday morning
Who will control Irish Continental Group?
The situation as to who will control Irish Continental Group has still not been decided. On Friday 17th August the
independent directors gave more time to the competing sides and were due to make a further statement on the matter
on Monday 20th August.
Two parties are bidding to take over the company - Eamonn Rothwell, the ICG chief executive's group Aella and
the partnership of One51 and Doyle Shipping - Moonduster. Both have offered E22.00 per share for ICG and
because each indicated to the independent directors that they would not support the other's bid there is stalemate. An
hour before the deadline for final offers - set on August 3rd for Friday 17th August - millionaire developer Liam
Carroll told the market had increased his stake from 18.6% to 19.06%. According to reports he is unlikely to table a
bid as his interest is in the group's property portfolio. After the deadline passed on Friday 17th another window of
opportunity for the sides to reach agreement was offered by the independent directors.
On Monday, 20th August, 2007, Aella made an offer of E24.00 per share. The independent directors have
recommended this improved offer. Under the terms of the offer, any new bid for ICG will have to be more than
E25.50 per share to receive the backing of the independent directors.
4
Pentagon Payments
The Irish Times of the 18th August reported on a case involving a Pentagon contractor who over-charged for
shipping items to key military installations, including Iraq and Afghanistan. A South Carolina defence contractor
has pleaded guilty to defrauding the Pentagon of $20.5 million over almost 10 years by adding hundreds of
thousands of dollars to the cost of shipping spare parts such as metal washers and lamps. According to court records
C&D supplied small hardware components, plumbing fixtures and electronic equipment to the military. The
company used a government system that fast-tracked items to priority military installations. C&D submitted the
shipping costs separately and the system paid them automatically.
In one instance, in 2006, the government paid C&D Distribution $999,798 for shipping two washers valued at only
19 cents. The Pentagon paid 112 of the fraudulent invoices until the scheme was detected last September. A
Pentagon spokesman said that steps have been taken to improve internal controls. Also among the Invoices was a
2004 order for a single $8.75 elbow pipe that was shipped for a total of $445,640. Also in the same year, a $10.99
machine thread plug was charged out at $492,096for shipping. Last year six machine screws worth a total of
$59.94, shipping costs to the tune of $403,436 were invoiced.
A co-owner of C&D Distributors Ms Charlene Corley (47) acknowledged her role in the fraud but maintained her
twin sister, who was also a co-owner of the business was the main benefactor who used the money to buy luxury
homes, cars, plastic surgery and jewellery. The court heard that her sister took her own life last October after being
approached by federal investigators.
Real Estate - Savills Hamilton Osborne King
Summer Report (edited)
According to his summer report on Industrial real estate developments, Gavin Butler, Associate, of Savills Hamilton
Osborne King comments that since the beginning of this year in North Dublin there has been a burst of new activity,
where construction of new units is well under way at Northwest Business Park and Premier Business Park in
Ballycoolin, North City Business Park in Finglas, Airside Enterprise Centre in Swords and the Port Tunnel Business
Park in Clonshaugh.
The major part of speculative construction at these schemes has been for starter/enterprise units ranging from 200
sq.m to 500 sq.m. in size. Most of the larger buildings under construction are not being built speculatively but are
being built to the specific requirements of occupiers as bespoke facilities.
Over the last six months sales of approx. E25 million have been agreed with occupiers on a design and build basis at
Northwest Business Park resulting in a total of over 15,000 sq.m. currently under construction. The strongest prices
achieved this year for new buildings of between 1,500 - 3,000 sq.m in the greater Dublin area was at North City
Business Park where approx. E2,260 per sq.m. was achieved. Record prices of up to E3,175 per sq.m have been
achieved for smaller units of between 200 - 500 sq.m at Airside Enterprise Centre in Swords.
New developments to come on the market on the south side of Dublin over the past six months include Kingswood
Park at the Kingswood/N7 junction and a new starter unit development at Grants Avenue in Greenogue Business
Park just off the N7 near Newcastle. Prices of approx. E2,315 per sq.m have been achieved for starter/enterprise
units in this locality. In September, construction is due to start at Profile Park, a new commercial development of
approx. 40 hectares situated beside Grangecastle on the Nangor Road in Dublin 22. Profile Park will be the first
major new commercial development on the Naas road in over ten years. Almost half the land will be developed for
industrial purposes and the first buildings are due for completion in early 2008.
5
Vacancy Rate
The first six months of this year has seen the vacancy rate move back over the 10% mark. In December 2006 the
rate had fallen below 10% for the first time this decade. The increase is due to a number of medium to large sized
facilities which have come to the market recently. These include the Whelan facilities in Dublin 12 and Dublin 15
and two facilities occupied by Tesco and Fedex in Ballycoolin. These alone account for over 30,000 sq.m of space.
Industrial land values are likely to grow by between 5-10% with building values rising by another 5% before the
end of the year, according to the report.
Development Land Market
In an interesting comment the report says "property development in Ireland, has become far more sophisticated in
recent years with the emergence of stronger planning policies from local authorities and more discerning buyers for
the end product. The emergence of Framework Plans, Master Plans and Action Area Plans has greatly assisted
developers in ascertaining the true potential of lands, while also delivering sustainable developments. Developments
such as Adamstown, where the provision of both physical and social infrastructure have been paramount are likely
to become far more commonplace. On the negative side, the preparation of such plans can add considerably to the
timescale for development but as the process becomes more streamlined, this should become less of an issue"
Savills website - http://www.savills.ie
Cargo 2000 pioneer dies
Mr. Ron Cesana project director of the Cargo 2000 airfreight quality
programme died on 8th June while on holiday in his home country
Italy. Ron was 66.
Some members may remember Ron when he spoke at a lunch the
association had in Cruzzos restaurant in Malahide a few short years ago.
At extremely short notice he acceded to our request to address us at that
time.
Ron had a long and distinguished career with AEI before taking on the
challenge of Cargo 2000. Ron was most recently in the process of
developing proposals for small and medium-sized forwarders that have
previously lacked the technical infrastructure to join Cargo 2000.
Mick Fountain, the chairman of Cargo 2000 initiative underscored
Cesana's great merits for the airfreight industry and assured the industry
that the next development steps for Cargo 2000 will be realised with the
same commitment as Ron had envisaged.
Alan Hines RIP
All of his friends and acquaintances will be sad to hear of the untimely death of Harry Hines’ son, Alan,
aged 36.
Alan, who is survived by his wife and daughter, was laid to rest in St. Fintan’s Graveyard in Sutton on
Monday, 13th August, 2007.
6
Aer Lingus Routes from Belfast International Airport
(BFS)
Following the announcement of a new base in Belfast, Aer Lingus also announced full details of the schedule and
routes that will operate. In all the debate about its effect on Shannon, the extent of the services that will be on offer
has not been so apparent.
The routes that will be served, their dates of commencement and their weekly frequencies are:
Destination
Amsterdam
Barcelona
Geneva
London Heathrow
Rome
Budapest
Malaga
Faro
Weekly
14
5
2
21
4
3
4
3
Starts
December 10th
ditto
ditto
Jan 14th
Feb 25th
ditto
ditto
ditto
World Trade and the Doha Round - Last Ditch
Since its beginning in Doha in November 2001 and the failure in Cancun in 2003 the World Trade Organisation's
Doha round of talks has been painful.
It suffered another setback in Potsdam in June when the G4 countries failed to reach agreement. A meeting of minds
in Potsdam would have brought a more positive atmosphere.
Ministers from the 21 members Asia-Pacific Economic Cooperation (which excludes the EU, India and Brazil) met
in Cairns, Australia in July this year and urged the opposing parties to show flexibility and offered to mediate
between the factions.
Overall failure of the Doha round will mean the removal of the possibility of 150 countries lowering barriers to
global trade in goods and services worth more than $14 trillion per year. A successful outcome will boost global
commercial trade, including increased shipments of millions of tons of grains, cotton, meat products and industrial
goods from steel to machinery, textile and clothing. The Doha agenda is designed to lift millions of people out
of poverty but has stalled over a failure to make deals on rice, poultry, bananas and manufactured goods.
In 2006 global merchandise trade was valued at $11.7 trillion, of which manufactured goods accounted for about
70%, while mined fuels and agriculture products accounted for about 8%. Other fuels, minerals, ores and metals
accounted for the remainder.
The Doha round, launched in the Qatari capital has involved numerous other negotiations, including trade in
services, trade and environment, anti-dumping, fishery subsidies, specific development issues, trade related
intellectual property and trade facilitation.
Since the round was launched, member governments have, among other things, already agreed to eliminate all
forms of export subsidies in agriculture, to remove barriers to trade on 97% of least developed country exports, to
reduce the highest agriculture and manufacturing tariffs by the widest margins and to reduce red tape and
bureaucratic delay in customs procedures. Among the differences still needing resolution in the agriculture and
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NAMA negotiations is the precise magnitude of tariff cuts, and reductions in trade distorting domestic farm
subsidies and the degree of flexibility to be extended to developing countries in opening their markets to greater
competition from imports.
In an effort to try and bridge gaps it was hoped that the G4 group might smooth matters over. However, in June, the
trade and agriculture ministers of the group - US, European Union, Brazil and India- failed to bridge those gaps
when they met in Potsdam in June.
The G4 had been holding talks parallel to the WTO multilateral discussions all along, and after Potsdam that group
has now thrown in the towel and it is now back in the WTO court. The hope is now that the WTO and its chief
Pascal Lamy will be able to pull all the collective 'cochones' out of the fire in talks that are due to begin on
September 3rd.
Blueprint
Overseeing the Doha round talks respectively on agriculture and industrial market access, the New Zealand and
Canadian chairmen have come up with a draft blueprint which is a lifeline to world trade diplomats that hopefully
will get the talks back on track.
The proposals put forward by Crawford Falconer, the New Zealand chairman of agriculture negotiations and Don
Stephenson the Canadian chairman of industrial market access talks have met with a mixed reaction.
Don Stephenson's text concerning industrial market access - NAMA (non agricultural market access negotiations)
suggests that the final rate of duty for rich nations at the end of the Doha Round should be around 8% - 9% and for
developing countries between 19% and 23%.
It also suggests that tariff cuts for manufactures be implemented over four years for rich nations and over eight
years for developing nations. In talks to date the rich countries have pushed for the final rate to be around 10% for
developed nations and 15% for developing nations.
The WTO director-general and former EU Trade Commissioner Pascal Lamy defended the proposed texts as being
representative of members' views that offer " a fair and reasonable basis for reaching ambitious balanced
agreements." Commenting on the mixed reactions to-date he said "what separates (them) to-day, is smaller than
what unites them".
For information - http://www.wto.org
Irish Ferries' new ship
Irish Ferries' new ship on the Rosslare, Cherbourg and Roscoff route is to be named "Oscar Wilde". It will continue
to operate under charter to Color Line, who sold the vessel to ICG, on the Oslo to Kiel route until Irish Ferries takes
delivery in September.
Built in Turku in 1987, the 31,914 gt ship will carry up to 1,458 passengers and 580 cars. This is a 40% capacity
increase compared to the "Normandy" which currently plies the Rosslare/Roscoff route. It will be able to carry more
vehicles (62 versus the current 43). Cars will be carried on a separate deck from the freight deck. The ship will have
a speed of 21.5 knots, cutting one hour off current cruising times.
Other vessels in the fleet have literary links, "Ulysses" and "Jonathan Swift".
8
Piracy Plague
The International Maritime Organisation has made a formal approach to the United Nations Security Council for a
naval task force to police the Somali coast. This follows a recent upsurge, which has seen two food aid ships
hijacked offshore.
A former senior UN official, according to a report in Lloyd’s List, has said the attacks are preventing ships from
delivering food supplies to hundreds of thousands of Somali civilians caught up in hostilities or affected by drought
and in dire need of humanitarian relief supplies.
The executive director of the World Food Programme, Josette Sheeran has also pleaded for the world to act. The
appeal by WFP came following the killing of a Somali guard who helped to repulse a pirate attack on a ship that had
just delivered food to the Somali port of Merka.
"For us it's very important to be able to buy food and have it delivered by ship, because it is much cheaper" said
WFP spokeswoman, Christiane Berthiaume.
and the last word.......
"An idealist believes that the short run doesn’t count.
A cynic believes that the long run doesn’t matter.
A realist believes that what is done or left undone in the short run, determines the long run"
Sidney J. Harris (1917 -1986)
American journalist and author
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