BOW WAVE 185

Innovation Edition

news and views on trade, insurance and risk

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Wavy Line	sam@wavyline.com
(c)2003 WavyLine.com	Issue No 185 09 Jun 03
Published free of charge to Readers
Editor: Sam Ignarski
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In this issue:

1. Welcome
2. Export Forum Meeting
3. New On-Line Indices for Iron Ore
4. APL Launches KISS Style Bill of Lading Facility
5. BIMCO Lay Offs
6. And Finally...

1. Welcome

Taken from David Samuels, The Light Stuff--Learning to fly the Goodyear blimp in: Annals of Aviation--an article in the current edition of the New Yorker (June 9th, 2003). Highly recommended.

Blimp Pilots prefer to think of themselves as captains of airships; indeed blimp flight has an oddly nautical feel. The ship rises upward like a balloon, yet feels supported underneath, too, as if it were floating on water. Equipped with motorized propellers and a set of steering controls, blimps are easier to navigate than hot-air balloons, which lack thrust. The two hundred thousand cubic feet of helium trapped inside a Goodyear blimp can lift about twelve thousand pounds. The aircraft's two side engines provide aerodynamic control, allowing a pilot to fly precise figure eights or box patterns over a sports stadium

The derivation of the word "blimp" is unclear. One common explanation is that it was coined in 1915 by Lieutenant A.D.Cunningham, of the British Navy. During an inspection at a landing strip in Capel, England, legend has it, the lieutenant playfully poked one airship's balloon with his thumb; an amusing sound was produced when the bag's fabric snapped back into shape, and Cunningham responded with a verbal imitation: "Blimp".

http://www.newyorker.com/main/magazine/

New Readers this week include:

Adrian Conroy of Cameron Richard and Smith Insurance Services Limited. William Swigart of Santanaship
Simon P Knowles of Poseidon Adjusters (New York) Stuart Armstrong of Solicitors Hill Dickinson
William Mahoney of Safety Management Systems in Maine John Beavan-Vaughan of Standard and Poors
Transport claims man Bart Mertens of Aon Belgium
Capt. Nick Thomas of Noble Denton in Doha,Qatar

News of Readers

Quality and Safety Expert Gary Hartland notes in his latest newsletter:

"QSE recently had a consultant stuck on a vessel for 9 days, in addition to the planned visit.

With the Gulf war and the fall out from 9/11, travel security and many of the privileges and corner cutting we have become accustomed to no longer exist.

Regardless of how tourists are treated, if you embark or disembark a commercial ship in the USA YOU must be in possession of a valid visa, even if you are a British Passport Holder"

Readers Write:

Author Gregory Sams writes:

Dear Sam,

Re: KILLER BISCUITS WANTED FOR ATTEMPTED MURDER

I am not sure why I receive Bow Wave, and was honestly scrolling through to find the "delete me" clause when I came across the hilarious story above. Just slightly disappointed, from the insurance connection, to see no mention of Ms. Burnett suing Pilsbury for the trauma she suffered as a result of their negligence in packaging.

I did write a very thought-provoking article concerning the insurance industry in my book Uncommon Sense and also touch upon it in a separate piece of writing, "My brush with the fuzz at Dead Woman's Bottom."

See these respectively, at

http://chaos-works.com/ch29.html and
http://chaos-works.com/dwb.html

Contact him at:

greg@chaos-works.com

Insurance Consultant Tim Walker writes:

THE STATE STREET CALEDONIAN CHALLENGE 2002--22/23 JUNE 2002

I have now started training for one of the most gruelling weekends of my life. The training has, however, been interrupted for a week or so by a hernia operation on 29th April.

On Saturday 22nd June, I and my three fellow team members, my cousins Tamzin, Tiffany and Tracy, collectively known as the "T WALKERS" will be setting out from Fort William to walk 54 miles, through the night, non-stop, down the West Highland Way towards Loch Lomond. We will finish up in Ardlui, sometime on Sunday 23 June. This is ten times worse than running a marathon - it is twice the distance and involves keeping going all night - and the West Highland Way has a rougher surface with a few more gradients in it, than the streets of London or New York.

Why, you may wonder, am I doing this? My team is seeking to raise at least £5,000. Funds raised go to The Scottish Community Foundation, which makes grants to small charities who help at local level to meet needs and improve quality of life. People with disabilities, the elderly, disadvantaged children - literally thousands - have been helped through last year’s Caledonian Challenge and we aim to do even better through this year’s event.

So to make my exertions worthwhile, please back me with your pledge. I am sure you get many sponsorship requests, but this one is different. The Challenge is no picnic and the beneficiaries are not major household name charities. They are local, volunteer-led groups who strive on a shoestring to meet local needs - our unsung heroes. So please dig deep for them in the confidence that your money will go where it is really needed and will have a significant impact. Your generosity will give a welcome boost to me too and will keep me going in those depressing hours just before dawn.

I hope you will be able to assist. (Cheques to Scottish Community Foundation please-Scottish Charity Number: SCO22910
See:

http://www.caledonianchallenge.com

Contact Tim at:

timwalker@aliwal.freeserve.co.uk

Some items this week with news of Innovation.

Enjoy.

2. Export Forum Meeting

Peter Salmon has written in with the agenda for the next meeting of The Export Forum which will be held on Thursday, 26th June 2003 in the offices of SITPRO in Oxford Street, London. The Export Forum meets every 6 to 8 weeks to discuss International Trade, Finance and Letters of Credit problems/issues.

10:00 Coffee Reception

10:30 Update on Recent Court Cases John Turnbull Sumitomo Mitsui Bank

10:55 Supply Chain Security Issues Andy Walker
SITPRO

11:25 Provisional EU enlargement Speaker tba.

11:50 ICC Update Gary Collyer
BN Amro Bank
12:15 Open Forum

12:40 Lunch

No charge is made to attendees and any interested Bow Wave Readers are welcome. Please contact Peter at:

peter@wktuk.com

3. New On-Line Indices for Iron Ore

Ian Staples has written in with a description of his firm's new indices:

Freight Investor Services Ltd (FIS), who are specialist freight derivatives brokers, have launched two new iron ore price estimates prompted by the expansion of the 530 million tonne annual seaborne iron ore trade.

These will be known as ‘Iron Ore 1’ (C+F Rotterdam) and ‘Iron Ore 2’ (C+F China).

With world steel production increasing almost 4% from 903 million tonnes in 2002 to an expected 938 million tonnes this year, global iron ore production has similarly expanded from 1.09 billion tonnes last year to 1.12 billion tonnes this. Much of the increase has been prompted by China’s booming economy- the Chinese now import over 130 million tonnes of iron ore,
approximately a 20% annual expansion.

The annual F.O.B settlement prices of iron ore have recently increased 9%, while the freight costs associated with moving the product have gained over 100% on the key freight routes. Shipping costs currently represent between 33-47% of the delivered iron ore price.

Given this price volatility and lack of market transparency, FIS will produce a weekly benchmark C+F Iron Ore price.

John Banaskiewicz, Managing Director of FIS, believes it is "incredible that such a huge market does not have an active price benchmark. An index price will allow for the development of more accurate pricing and the potential to develop derivative trading opportunities’. These in turn will facilitate forward pricing for steel companies, iron ore consumers and producers.

The vast majority of iron ore is traded on an annualised fixed price basis, resembling the thermal coal market of five years ago. Thanks to electricity deregulation, coal has become an annual 300 million tonne derivative trading market. Iron ore has the same potential to change over the coming years.

For further details contact FIS at:

info@fis-ffa.com

4. APL Launches KISS Style Bill of Lading Facility

Paul Barratt has sent in details of Container Carrier APL's new software that allows customers with limited or no Internet access to submit bill of lading (BL) instructions electronically.

The product, known as BL Instructions (Desktop), allows customers to create instructions offline in a pre-determined format, and then e-mail them direct to APL. It is, he says, particularly efficient and cost effective for those small and medium-sized enterprises (SMEs), which currently fax instructions that have to be re-keyed into the APL system.

BL Instructions (Desktop) was developed in-house in response to customer needs, in this instance, by APL India's IT team. After a successful late 2002 launch there, where many customers have limited or no Internet access, the software is now available in more than 30 countries.

The software is designed to help APL's customers achieve full compliance with the Advance Manifest component of the Container Security Initiative (CSI), which requires information about goods being shipped to the United States to be lodged with US Customs at least 24 hours before being loaded.

What does all this amount to? Fairly simple. E-filing costs just US$10, whereas there is a US$30 charge for filing by fax, plus it saves APL time and the need to re-key data."

For further information go to:

http://www.apl.com/html/bills_of_lading.html

5. BIMCO Lay Offs

We understand the Copenhagen-based trade body The Baltic and International Maritime Council (BIMCO) is laying off a number of its staff, as much as "10 to 15 per cent" according to one source.

Evidence here perhaps of the industry's ability or willingness to pay for infrastructure in 2003.

Definition of infrastructure: something that everyone wants for which no one wants to pay..

Hard lines on those affected and on the organisation itself which does a very good job in its chosen fields.

http://www.bimco.dk/

6. And Finally...

Reader Dave Letteney sent in this item aimed at all pun loving Readers everywhere:

Each year the Washington Post's Style Invitational asks readers to take any word from the dictionary, alter it by adding, subtracting, or changing only one letter and supply a new definition.

Here are the 2002 winners:

In-taxication: Euphoria at getting a tax refund, which lasts until you realize it was your money to start with.

Rein-tarnation: Coming back to life as a hillbilly.

Fore-ploy: Any misrepresentation about yourself for the purpose of getting sex.

Gi-raffiti: Vandalism painted very, very high.

Sar-chasm: The gulf between the author of sarcastic wit and the person who doesn't get it.

Inocu-latte: To take coffee intravenously when you are running late.

Hip-atitis: Terminal coolness.

Osteo-pornosis: A degenerate disease. (This one got extra credit).

Karma-geddon: It's like, man, when everybody is sending off all these really bad vibes, right? And then, like, the Earth explodes and it's like, a serious bummer.

Glib-ido: All talk and no action.

Dop-eer Effect: The tendency of stupid ideas to seem smarter when they come at you very rapidly.

And, the winner of the Washington Post's Style Invitational:

Ignor-anus: A person who's both stupid and an asshole.

PS--Received with thanks from Bobby Jayme in Manila, PH

ARK (AP) -- Some Wal-Mart customers soon will be able to sample a new discount item -- Wal-Mart's own brand of wine. The world's largest retail chain is teaming up with E&J Gallo Winery of Modesto, Calif., to produce the spirits at an affordable price, in the $2-5 range.

While wine connoisseurs may not be inclined to throw a bottle of Wal-Mart brand wine into their shopping carts, there is a market for cheap wine, said Kathy Micken,professor of marketing at Roger Williams University in Bristol, R.I. She said: "The right name is important."

So, here we go:

The top 12 suggested names for Wal-Mart Wine:

12. Château Traileur Parc
11. White Trashfindel
10. Big Red Gulp
9. Grape Expectations
8. Domaine Wal-Mart "Merde du Pays"
7. NASCARbernet
6. Chef Boyardeaux
5. Peanut Noir
4. Château des Moines
3. I Can't Believe It's Not Vinegar!
2. World Championship Riesling

And the number 1 name for Wal-Mart Sparkling Wine ...
1. Nasti Spumante

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