Server: Netscape-Enterprise/2.01 Date: Wed, 31 Dec 1997 20:57:22 GMT Content-type: text/html
Legal Transportation News
Compliments
of the Law Offices of Charles H. Veigel, P.S. Vol. 3 issue 2Copyright © 1997, Charles h. Veigel, All Rights Reserved
Fall 1997
While the export community awaits the Supreme Court's decision on whether it will hear the Shoe appeal, the Association of American Port Authorities (AAPA) recently decided that it will not file a brief supporting the government’s appeal. Two lower courts ruled that the harbor maintenance fee is a tax and violates Art. 1, § 9, clause 5 of the United States Constitution providing "[N]o Tax or Duty shall be laid on articles exported from any State."
Instead, the AAPA is reviewing alternative revenue options for ports if the Supreme Court decides it will not hear the appeal. Among the alternatives, the AAPA may suggest that each port pay its own costs of dredging or it may recommend a completely new financing system.
Traffic World News, October 11, 1997
The Federal Express Corporation recently bought Caliber, a small package delivery company. FedEx will pay $2.4 billion for Caliber’s stock. Once the deal is concluded, Federal Express will become a $15 billion dollar transportation company providing total logistics. Other Caliber units include Viking Freight System and Roberts Express.
Traffic World News, October 11, 1997
Shipper Groups and Air Service Providers Discuss Performance Standards in Frankfurt
At the 10th International Frankfurt Airfreight Days, shipper groups and service providers discussed performance standards. Shippers are concerned that direct and indirect air carriers double book freight and frequently do not disclose the name of the direct air carrier. Direct and indirect air carriers complain that shippers cancel shipments at the last minute and often do not deliver the cargo at all. Also, direct air carriers contend that they often carry the freight for only a small fraction of the total movement. Large volume shippers are requiring their service providers to guarantee reliability, cost effectiveness and timeliness.
Traffic World News, October 17, 1997.
Undercharge Litigation - Update -
ASK Financial, Inc. is encouraging its clients (motor carriers) to publish credit rules in their motor carrier tariffs, trucking bills of lading and transportation contracts. These provisions will permit the carrier and its attorneys to collect late payment charges and penalties.
Shippers should request a copy of the carrier’s credit rules and ensure payment is made in accordance with those rules. Otherwise, shippers should be encouraged to negotiate credit rules with their chosen motor carrier.
Humboldt Attorneys File Additional Undercharge Claims
Attorneys for the defunct motor carrier, Humboldt Express, filed suit seeking payments for undercharges against an additional 33 shippers in a North Carolina Federal Court. More than 1000 cases have been filed against shippers since the carrier filed for bankruptcy protection in February of 1996.
Journal of Commerce, August 29, 1997
United States & Japanese Talks Over Aviation Markets Falter
The United States and Japan failed to reach an agreement in September resolving an aviation dispute. The United States is insisting that U.S. direct air carriers (Northwest Airlines, United Airlines, unit of UAL Corporation and Federal Express) be given unrestricted freedom to fly over Japan and to other countries.
Journal of Commerce, September 25, 1997
FAA Proposes Fining Reuters America, Inc. of N.Y for Hazardous Materials Violation
On October 16, 1997, the Federal Aviation Administration (FAA) proposed fining Reuters America, Inc. ("Reuters") a $100,000 civil penalty for shipping undeclared hazardous materials.
Reuters is cited for knowingly offering hazardous materials for transportation by air when materials were not properly classed, described, packaged, marked and labeled as required by the Department of Transportation’s hazardous materials regulations. Reuters has 30 days from receipt of the FAA’s letter to respond to the notice. FAA News.
FAA Fines World Airways
In a consent order and settlement agreement, the Federal Aviation Administration (FAA) and World Airways, Inc. agreed to pay a civil penalty of $610,000 for violations of security regulations while flying in South Africa and Ireland.
The details of the security violations could not be disclosed. Because World Airways is a U.S. certificated carrier using a U.S. registered civil aircraft, it must be operated at all times in compliance with U.S. aviation regulations. FAA Press Release APA 141-97.
FMC Announces Compromise Settlements
On October 1, 1997, the Federal Maritime Commission (FMC) announced it reached compromise agreements for alleged violations of the Shipping Act of 1984 and Commission regulations recovering civil penalties in a total amount of $954,000.
The FMC reached compromise agreements with Alexander Air Express, Inc., Federic Henjes, Inc., Honorwell Shipping Ltd., Kawasaki Kisen Kaisha Ltd. ("K" Line), Ocean World Lines, Inc., RF International Ltd., South Seas Steamship Co., Ltd., and Three Hands Corp.
FMC Administrative Law Judge Retires
Administrative Law Judge Charles E. Morgan has retired from the Federal Maritime Commission. Judge Morgan was an administrative judge from 1961-1997.
FMC Issues Strategic Plan
In September 1997, the Federal Maritime Commission (FMC) presented its strategic plan providing a blueprint for agency action in the next five years. The plan identified the FMC’s mission, strategic goals and factors that may affect the FMC’s goals.
For those interested in reviewing the FMC’s strategic plan, we suggest you visit http://www.fmc.gov/STRATPLN.htm.
U.S. Customs Suggests Checklist To Avoid Compliance Problems and Meeting "Reasonable Care" Requirements
On January 22, 1996, U.S. Customs published a discussion draft concerning the importer’s obligation to use reasonable care in connection with its importing operations. Customs recently decided to adopt a checklist approach as a means of providing guidance regarding an importer’s obligation to exercise reasonable care. Failure to follow the checklist/publication will generally constitute the failure to exercise reasonable care. Importer’s should remain current on the checklist and the Customs Modernization Act. For a copy of the proposed checklist, please contact Charles Veigel at (206) 583-2330 or cveigel@counsel.com.
Employment Law Tips - Access to Personnel Records in Washington State
Washington state statutes require employers to permit an employee to review his or her personnel files at least once a year (except information that relates to criminal investigations or work product with respect to a lawsuit). The employee is also permitted to remove from the file irrelevant or inaccurate information or to place a corrective statement in the file.
The Legal Transportation News is not engaged in the practice of law. It also does not dispense legal advice. If you have a legal problem, contact a competent attorney as soon as possible
International Trade & Commercial Transactions
Litigation
Transportation/International Shipping
Import & Export Trade Law
Employment Law
Corporate/Commercial
Law Offices of
Charles H. Veigel, P.S.
Attorneys and Counselors at Law
Grand Central on the Park
Suite 253
216 First Avenue South
Seattle, Washington 98104
(206) 583-2330; Fax: (206) 682-4461
E-Mail: cveigel@counsel.com
web site - http://www.TransportationLaw.com