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Asia Shipping News Nov 22, 2000

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Nov 23, 2000, 3:00:00 AM11/23/00
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SHIPPING NEWS HEADLINES
Wednesday, November 22, 2000

SchedNet http://www.schednet.com

* MRA's intentions clear
* All eyes on China's logistics sector
* Tide turning in Russia's favour
* HK, Korea Customs co-operation
* UK P&I Club adds second channel
* CX October traffic figures
* Vietnam Airlines' Boeing deal done and dusted


MRA's intentions clear
======================
MEMBER Lines of the Mediterranean Rate Agreement (MRA) have disclosed
their rating intentions for trade from Asia to Mediterranean
destinations next year.

The MRA intends to adjust rates by a minimum of US$150 per TEU on
April 1, and by a minimum of $250 per TEU on August 1.

Member lines of the MRA are APL, CMA CGM, Hapag-Lloyd, K-Line, Maersk
Sealand, MISC, MOL, NYK, OOCL, HMM, P&O Nedlloyd, Senator and Yang
Ming.

All eyes on China's logistics sector
====================================
GUANGDONG officials have vowed to liberalise the province's logistics
industry after China joins the WTO, a move which will allow more
overseas retail companies to set up shop.

The province's vice governor Xu Deli believes that WTO membership will
accelerate reform in the transportation, warehousing and express mail
industries as foreign companies are attracted in order to upgrade the
province's logistics sector.

The vice governor is also encouraging domestic companies to form
overseas subsidiaries to encourage the flow of Guangdong-made products
to international markets.

Tide turning in Russia's favour
===============================
RUSSIAN President Vladimir Putin is touting his nation as an
integration junction linking Asia, Europe and the US, and an ideal
alternative to present shipping routes.

Given that the distances involved in moving freight across the vast
nation would be considerably shorter, geographically at least, Mr
Putin's rhetoric holds some merit.

Eyeing the long-term opportunity with more than a passing interest,
Russia is busily upgrading its ageing container terminals in
Vladivostok and St Petersburg.

With box traffic able to make its way across the Trans-Siberian
Railroad in less than half the time taken at sea, Mr Putin is aware
that bottlenecks at container ports can quickly erode the competitive
advantage of the Russian land bridge.

To this end, Russia is seeking foreign investment to aid its bold
plans, which include the reconstruction of the rail line connecting
North and South Korea coupled with its connection to the
Trans-Siberian Railroad; and even linking Southeast Asia to Europe via
Kunming in China.

In theory at least, freight bound for Europe and the US east coast
could move by rail across Russia and Europe to Rotterdam, resulting in
significant time and cost savings.

Of major concern, of course, is safety, but Mr Putin insists that
cargo moving across Russia is no less safe than freight moving through
traditional shipping lanes.

With old political constraints falling it may only be a matter of time
before Russia takes a sizable slice of the global transshipment pie.

HK, Korea Customs co-operation
==============================
THE 21st Customs Co-operation Conference between the Republic of Korea
and Hong Kong was held in Hong Kong on November 14 and 15.

During the conference, John Tsang Chun-wah, Hong Kong Commissioner of
Customs and Excise, said that demands on customs services around the
world had changed dramatically because of the increase in the volume
of international trade and the rapid development of technology. In
order to meet these demands, Customs administrations had to step up
their co-operation to modernise Customs practices.

The two administrations agreed to work closely together to promote in
the region the concept of multilateral co-operation in combating
customs frauds and other transnational crimes.

UK P&I Club adds second channel
===============================
TO enable loss prevention bulletins to be understood by a wider
audience, the UK P&I Club has decided to publish them in Chinese as
well as English.

Bulletin no.164 on the international group's recommendations regarding
the carriage of calcium hypochlorite cargoes, published this month, is
the first to appear in both languages.

The club's Hong Kong branch say the impetus stems from Chinese members
who wish to distribute bulletins to masters and crews whose first
language is Chinese.

The bulletins have appeared regularly since 1997. They focus on
incidents, dubious and illegal activities, official proposals, new
regulations and decisions from around the maritime world. The material
derives from members' claims but has wider ramifications. The club
aims, therefore, to make the material available as quickly as possible
in case it affects other members' immediate plans or operational
procedures. They are posted on the club's web site, www.ukpandi.com.

Members and correspondents are important sources for bulletin content.
In the past, less information has been received from Asia Pacific than
other parts of the world. It is hoped that bulletins in Chinese will
stimulate more response from the region.

Danny Ng, UK Club loss prevention co-ordinator for Asia Pacific, based
in Hong Kong, said the club would be considering translating other
materials from English.

"We regard this exercise as part of an ongoing policy of giving
members what they want in the form they require it and quickly enough
for them to make real use of it".

CX October traffic figures
==========================
CATHAY Pacific Airways released its October traffic figures, which
show the company experienced strong demand across the global network.

The company set a new record for freight tonnes carried during the
month with the figure standing at 74,062 thousand. This surpassed the
previous monthly record of 69,965 thousand tonnes, which were handled
in September. The airline carried 631,606 thousand tonnes of freight
over the first 10 months of this year, a growth of 16.4 per cent over
the corresponding period of last year.

Ian Shui, general manager, network, said: "Overall demand remains very
robust throughout our network, particularly in the area of cargo. The
number of business travellers is also much higher than it was a year
ago."

The figure for cargo mail tonne kilometres in October stood at 419,195
thousand, while the figure was 3,391,083 thousand for the first 10
months of the year, a 9.6 per cent rise year-on-year. These figures
stemmed from 2,191 flights in October and 20,266 flights over the 10
month period, an 8.7 per cent rise year-on-year.

The available cargo per mail tonne kilometres stood at 557,510
thousand for October and 4,692,412 thousand for the 10-month period, a
6.6 per cent rise year-on-year. The cargo and mail load factor was
75.2 per cent for October, and 72.3 per cent for the 10-month period,
a rise of 2 per cent over the same period last year.

Vietnam Airlines' Boeing deal done and dusted
=============================================
VIETNAM Airlines, the national airline of the Socialist Republic of
Vietnam, has signed a letter of intent to purchase up to three
long-range Boeing 777-200ER (extended range) jetliners.

The value of the order when finalised is expected to be US$480 million
at list prices.

Vietnam's Minister of Finance, Nguyen Sinh Hung, and US Secretary of
Commerce, Norman Mineta, witnessed the signing of the agreement
between Vietnam Airlines and The Boeing Company during a ceremony held
in Hanoi as part of President Clinton's visit to Vietnam.

The agreement is the first step towards contract and configuration
discussions between Boeing and Vietnam Airlines.

The ceremony also was attended by Nguyen Tien Sam, Director General
for the Authority of Civil Aviation of Vietnam (CAAV); Michael Frisby,
US Counselor for Commercial Affairs to Vietnam; Nguyen Xuan Hien,
president and CEO of Vietnam Airlines; Ray Bracy, vice president of
Boeing Commercial Airplanes; Christopher Flint, Asia-Pacific sales
director for Boeing Commercial Airplanes; and other officials
representing the airline, Boeing and the US Department of Commerce.

"We welcome this opportunity to bring our countries closer together,"
Mr Frisby said. "Boeing has been active in Vietnam since the lifting
of the trade embargo in 1994 and this is another important step in
Vietnam-US relations."

Trade relations between Vietnam and the US have improved significantly
over recent months. In July, the two nations signed a landmark trade
agreement that will establish normal trading relations. Administration
officials have indicated that they will seek approval by the US
Congress early next year.

"We look forward to further developing our working relationship with
Vietnam Airlines as we proceed into a new trade era between our two
countries," Mr Bracy said. "As tourism and trade increase in Vietnam,
we anticipate becoming an integral part of enhancing the economy and
status of this country."

Vietnam Airlines recently renewed the leases on three 767-300s that
have been in operation since 1995, connecting Vietnam with
destinations that include Singapore, Manila, Kuala Lumpur, Hong Kong,
Paris, Taipei, Kaohsiung, Seoul, Osaka, Sydney and Melbourne.

One additional leased 767-300 will join Vietnam Airlines' growing 767
twin-aisle jetliner fleet in the near future.

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