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HONG KONG SIGNS ON TO SECURITY INITIATIVE

HONG KONG - The Container Security Initiative (CSI) is now operational at the port of Hong Kong for cargo containers destined for US ports. The move adds Hong Kong to the list of other ports around the world that have signed onto the security agreement including the ports of Rotterdam, Kobe, Shanghai, LeHavre, Bremerhaven, Hamburg, Antwerp, Singapore, Yokohama, Vancouver, Nagoya, Algeciras, Felixstowe, La Spezia, Yantian, Genoa, Pusan, Montreal, and Halifax. The port of Hong Kong is the busiest containerport in the world in terms of the number of cargo containers handles annually. It also ranks number one in terms of the flow of containers into the US. Hong Kong is positioned at a key crossroad in the global trading system, with a high potential to detect items of concern. Last year, nearly 560,000 ocean containers entered the US from Hong Kong, according to Customs. The CSI consists of four core elements - using intelligence and automated information to identify and target high-risk containers; pre-screening those containers identified as high-risk, at the port of departure, before they arrive at US ports; using detection technology to quickly pre-screen high-risk containers; and, the utilization of technologically-advanced, tamper-proof containers. Each year, over 48 million full cargo containers move between the world's major seaports and more than 6 million containers arrive in the US by ship. Most recently, the governments of Malaysia and Sweden have joined CSI, and, in Europe, CBP is looking to expand CSI to at least 11 additional ports.

MENLO WORLDWIDE WINS AIR FREIGHT BUSINESS

REDWOOD CITY - European Navigation Inc., an ocean chartering and vessel management company headquartered in Athens, Greece, has awarded its air freight business to Redwood City-headquartered Menlo Worldwide Forwarding. European Navigation Inc. was established in 1980 and currently has offices in London, New York, Brussels, Singapore and Manila. The two companies have a history. Over the past few years, Menlo has transported air shipments of ship spares for European Navigation Inc., mainly originating from Northern Europe. Menlo Worldwide Forwarding is currently shipping crankshafts for the company from Bombay to New Delhi, India then to Milan, Italy and on to their final destination in Athens.
 
AIR SERVICE BETWEEN US, IRAQ APPROVED
 
WASHINGTON, DC - After a hiatus of more than 13 years, US passenger and cargo airlines have been given the go-ahead to resume service to Iraq. Still, plans by any carrier wishing to serve Iraq and the US directly or via code share must first receive Transportation Department approval. Northwest Airlines reportedly is the only major US carrier that has sought government clearance for direct flights, while United Airlines, a unit of UAL Corp., has sought approval to code-share with Lufthansa AG and Austrian Airlines. A Transportation Department spokesman said there was no timetable for reviewing those applications.
 
AA, BRITISH AIR CAN CODE-SHARE, DOT SAYS

WASHINGTON, DC - The Department of Transportation (DOT) has approved a code-sharing arrangement between American Airlines and British Airways. The agreement took effect May 30 and will last two years. The decision permits each company to sell tickets of the other airline for travel on its own flights, except for nonstop flights between the US and London. The DOT noted that such an arrangement is provided for under the current US-United Kingdom bilateral aviation agreement but said the US goal is to replace that pact with a less-restrictive "Open Skies" agreement. The two carriers applied for code-sharing rights in November, 2002. The code sharing arrangement does not permit the carriers to plan and coordinate services as antitrust immunity would allow. The department has said that an Open Skies agreement, which eliminates restrictions on air services between and beyond the participating countries, is a prerequisite to granting antitrust immunity. The goal of the US remains replacing the current restrictive agreement with Open Skies, the DOT said.

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