In order to provide our customers with the most current information available, the Phoenix News Summary is emailing industry news updates. Our summaries can also be read via our web site, www.phoenixintl.com, on the Industry News page.

Pilots end Korean Air strike – JOC - Operations at Korean Air returned to normal, two days after the government intervened to end a strike by pilots at South Korea 's largest airline.

Phoenix International reduced the air export fuel surcharge to $0.45/kg USD, effective December 13, 2005 .

 No change for TACA fuel charge – JOC - The Trans-Atlantic Conference Agreement said its Bunker Adjustment Factor will be held unchanged through Feb. 15.

 Two steps forward, one step back – Logistics Today - Solving capacity problem will require a long-term and concerted effort. The railroads took financial hits in 2005. The UP incurred $31 million in hurricane-related costs, and reported $214 million higher costs in the third quarter of 2005 but recovered only $180 million in surcharges. UP expects 10% to 15% of its older contracts to come up for renewal in 2006 and it will take that opportunity to increase prices as much as 20%. And it's that uneven balance that is causing some shippers to see red. Truckload carriers continue to report very tight capacity. The trend for freight is still up while the ability to find drivers may actually be more constrained by relief efforts following hurricanes Katrina and Rita. On the waterfront, shipyards are near capacity building massive containerships to handle trade that has focused mostly on China . Larger vessels will begin to drive changes through the maritime industry as they find fewer ports that can accommodate the new class of super containerships. The larger ships will bring about an increase in feeder services to hub ports where the draft and landside capacity exists to handle the larger ships. Air freight volumes have also been on the rise in international lanes, while domestic U.S. volumes have stagnated. Carriers are adding freighter capacity and airframe companies are stepping up programs for freighter conversions. There is some hope for progress in "open skies" talks which could also benefit international air freight. Labor issues are boiling up, led by problems at airlines. Pilots at UPS and FedEx are pushing issues with management. On the ground, the International Brotherhood of Teamsters has targeted Overnite Transportation (recently acquired by UPS) for organizing efforts. IBT has also teamed with a group of international trade unions which are, together, targeting integrators DHL and TNT. And on the broader logistics front, acquisitions continue to shake out the industry — the latest big deal is German railway Deutsche Bahn's purchase of BAX Global to supplement its Schenker forwarding operations. FedEx and UPS are rumored to be eyeing an acquisition in Europe following Deutsche Post World Net's successful bid for Exel.

EC calls for end to liner conferences – American Shipper - The European Commission proposed to repeal the European Council Regulation which grants liner conferences an exemption to set common freight rates and cooperate on capacity. Repealing the exemption will benefit EU exporters by lowering transport prices whilst maintaining reliable services. This will enhance the competitiveness of EU industry.

The Committee for the Implementation of Textile Agreements (CITA) has issued the 2006 quota levels for China . This notice also lists the ELVIS requirements for these shipments. For the text of CITA's notice, see http://otexa.ita.doc.gov/fr2005/chiestlielv.htm

Our summary articles are compiled from a number of public sources that, to the best of Phoenix’s knowledge, are true and correct. In the event any information provided is erroneous, Phoenix International Freight Services, Ltd. accepts no liability or responsibility.