Around the world since 1965 - Celebrating 40th Anniversary

When our retired founder, Eckart Moltmann (nicknamed "EMO") started his little venture in Stuttgart, Germany 40 years ago, neither he nor anyone else imagined that EMO Trans would grow into such a global organization. With over 50 own offices in Australia, Canada, Chile, China, Germany, Japan and the USA as well as a strong network of Global partners, today EMO is represented in every corner of the world and handles well over 1 million tons of cargo via air and sea freight annually.

EMO Trans’ system of partnerships along with our employees’ participation has set us apart from our competitors. The strong work ethics and commitment guarantees that we maintain our strength and stability in this fast changing environment of international trade and transportation. We will continue to grow and plan to open additional offices in Germany, USA and South America.

Our mission to deliver excellent service is the cornerstone of our existence and EMO Trans has been able to fulfill this performance through the efforts of our greatest assets, our people. From inception EMO Trans has valued our employees and recognized outstanding performances and strong leadership; with this it is with great pleasure to announce the appointment of Mr. Olen Wood as President & COO of EMO Trans – USA, and Mr. Wick Campbell as Executive Vice President of the ETB Corporation, our Brokerage division.

We salute all of our employees and thank you, our customers and our network partners in contributing to the success of our company and we are looking forward to many more years of good co-operation.

Jo Frigger, Chairman and CEO

LUFTHANSA takes over SWISS AIRLINES

Lufthansa has agreed to take over Swiss International Airlines in a deal worth up to US$ 409 million. The deal, which ends a long period of speculation, was ratified and signed in Zurich.

CATHAY PACIFIC CARGO adds service to Atlanta

CX is to launch three direct B747 freighter services a week from Hong Kong to Atlanta in the autumn of 2005.

SEATTLE port information

The strategy for Seattle is to “capture market share before Tacoma and Vancouver have significant capacity”. SSA Marine and the port are adding more equipment, more space, more labor, more velocity and reducing dwell time as part of that strategy.

“The bottom line is that our cargo volume is growing so strongly that we had to reactivate some of our older terminals”. These are the words of Seattle port managers as they have seen volume spikes due to the delays in the Los Angeles port region. Volume jumped 18% from last year.

Another big success story for Seattle is the cruise industry which has grown dramatically since 1999. In the past 5 years, Seattle’s cruise industry ballooned from six vessel calls and 7,000 passengers to 150 calls and 562,000 passengers.
In 2005 this number is expected to be even higher.

ARROW Air adds Houston-Latin America freighter

Miami based all cargo carrier Arrow Air has inaugurated a weekly DC-10F cargo service at Houston Intl. airport, linking Houston with vital trade partners in Central and South America and the Caribbean. Cargo from Houston can be routed to 20 regular southbound destinations. The airline expects the service to expand quickly and a second weekly flight is already under review.

Teamsters sign first port drayage contract in 20+ years

The teamsters have signed a contract with Maritech Leasing to represent employee drivers at the company’s Los Angeles-Long Beach operation. It is the first new contract between the teamsters and a port trucking company in more than 20 years. The drivers will be driving company equipment.

Maritech President Bob Kelly noted that independent contract drivers are fleeing the industry as fuel, insurance, and maintenance costs increase the driver’s profits decline. “Our industry must take decisive steps to stem the growing shortage of truck drivers hauling containers from the ports to rail depots, warehouses and distribution centers,” he said. “Drivers are leaving faster than the industry can replace them”

Fuel Surcharges to go up July 11, 2005

The first carrier to announce an increase in the fuel surcharge was Lufthansa today. They will charge $ 0.45/kg for export shipments from USA to worldwide destinations. The airline has a fuel price index which can be accessed on their internet site at: www.lufthansa-cargo.com

Pierpass is coming to the port of Los Angeles

Effective July 23, 2005: All FCL (Full Container Load) picked up or delivered between the hours of 3 a.m. and 6 pm will be charged a traffic mitigation fee of $ 40.00 per 20 ft. and a $ 80.00 per 40 ft. container. This does not apply to empty containers.

We have been informed that the port of Long Beach is following the port of Los Angeles and will cut the “free time” for containers by one day for import cargo. The calculation for “free time” begin from the day the container is discharged from the vessel and not only after the vessel has been completely unloaded.

Strong Indian economy lifts capacity

The Indian economy, expanding at an annual rate of around 7%, is driving a strong demand for imports to the country by industry and consumers, while exports are forecasted to rise a further 15% in 2005-06 after a 24% gain last year.

The country’s recent spate of aviation deals with Britain, the US and China will provide a much needed capacity for imports and exports moving by air, whether as bellyhold or on dedicated freighters. A major feature of the Indian air cargo scene is the expansion of direct international flights into regional hubs thus bypassing the congestion difficulties associated with the major centers of Mumbai and Delhi.

Air India, Jet Airways, Continental Airlines, Delta and Northwest Airlines are among the airlines who will benefit from this “open sky” policy. India’s growing role as an automotive component supplier for the global market and the strong demand for imported telecom equipment are also supporting air trade.

EMO Trans has worked with our partners Uniworld Logistics in India for several years now. You can find Uniworld offices in these cities in India: Ahmedabad, Aurangabad, Bangalore, Chennai, Cochin, Hyderabad, Kolkata, Mumbai, New Delhi, Pune, Tuticorin and Tirupur. www.uniworld-logistics.com

Los Angeles won’t see peak repeat this year

Shippers should anticipate peak-season delays moving cargo through Los Angeles-Long Beach, but the delays will be nowhere near as severe as they were last summer and fall.

The expected delays will come on the 20% or more spike in cargo volume that occurs each year as retailers bring in shipments from Asia for the holiday shopping season. Frank Baragona, President of CMA CGM Steamship Line, suggests that shippers and importers should build in a two-to three day buffer into their supply chains for the peak season.

Modest delays are anticipated at intermodal rail yards and on the rail networks leaving from So. California to the eastern half of the nation, although performance will fluctuate from day to day.

Containers are currently moving through the many on-dock rail yards on demand with a maximum delay of about 18 hours. Union Pacific Railroad has added 7,000 trainmen and about 2,500 engineers in the past two years, expanded its motive power roster with more than 1,000 locomotives, and increased its fleet of double-stack cars by 10% this year.
A shortage of harbor trucking capacity persists. The number of drivers in LA-Long Beach has declined 20% from a peak of 32,000 in 2001, while cargo volume has increased by 30% in that time. Jim Mc Kenna, President of the Pacific Maritime Association, confirms that the International Longshore and Warehouse Union has hired 6,000 part-time workers and promoted another 2,000 from part-time to full-time positions since last fall.

As of June 15, 2005 until August 14, 2005 the following “Peak Season Surcharges – PSS will apply for containers from Asia to the USA:

20 ft. 40 ft. 40 ft. HC
West coast $ 150 $ 200 $ 225
IPI – railroad inland US ** $ 190 to $ 225 $ 200 to $ 300 $ 225 to $ 340
All Water/Panama Canal ** $ 265 to $ 300 $ 350 to $ 400 $ 395 to $ 450
** depending on carrier

Bunker Fuel Surcharges $ 310 $ 410 $ 460
(July 1 to Sep. 30/05)

New “arrivals” at Emo USA

Congratulations to Daniel Almendrades (District Sales Manager Texas) and his wife Renata on the birth of their 2nd son, Emilio (7 pounds, 12 ounces), born June 17, 2005

Lisa Allardi, our Regional Sales Manager based on Boston gave birth to a healthy baby girl, Morgan Ashley on June 26 (6 pounds, 14 ounces) Congratulations to Lisa and her family!!!

Anniversaries

20 years Tom Brown, Hartford, CT
10 years Karen Rojas, Los Angeles, CA

Congratulations Tom and Karen, and “Thank You” for all your hard work over the years.

Worldwide Meeting in Frankfurt, Germany

The EMO Trans worldwide meeting took place in Germany this year and was attended by nearly 100 participants from 32 countries. The 3 day annual event was exquisitely organized by our German Management team. New ideas and future plans were made. Strategies were developed that will help guide our company through the next years.
EMO Trans was founded 40 years ago this year and hopefully, with your help, we will keep going and moving forward for many years to come. Thank you for your loyalty to our company.

Winner of the month

Alberto Rivera is the winner of our “two bottles of Sonoma Wine” this month. Congrats! Next month we will give away a picnic basket full of goodies for that romantic summer picnic with your loved one. Please let us handle many of your shipments as each one will be entered into our monthly drawing.

Thank you for your business. We appreciate it very much.

If you enjoy reading this newsletter and have a friend or collegue who you believe might benefit from it, please forward it on. We encourage your ideas and suggestions. EMO Trans respects your privacy. We do not share your information with anybody and will only use this data to send you information via this newsletter. Thank you for taking the time to read our newsletter.

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