Piper's Pipeline: June 20 - June 24, 2011

Piper's Pipeline: June 20 - June 24, 2011

by Don Piper
27. June 2011 15:26

New technologies

    Incheon International Airport
  • A new relatively inexpensive security screening technology that requires no human intervention to detect explosives has been developed. Researchers at the University of Florida have developed a system similar to the one that uses psychedelic black lights to make particles glow that are invisible in normal illumination. The researchers have patented a method that automatically detects the tinseled traces of explosives using harmless UV lights, similar to black lights.
  • A Boeing 747-8 freighter, Boeing's new cargo plane, made the international debut at Paris concluding an historic biofuel flight. This is the international debut of the new cargo plane powered by more sustainable aviation fuel. The fuel mixture was 15% camelina-based biofuel mixed with 85% traditional kerosene.

Risk and security

  • Traffic World reports that global supply chains are facing increased risks of hacker attacks. There is a 56% probability of attacks on transport chains, according to a group of 80 executives surveyed.
    • Ninety percent of worldwide trading volume is concentrated on some 39 gateway regions. The failure of one of these could cause huge economic circumstances. The Hong Kong-Shenzhen region handles 14.8% of the world’s ocean container and air cargo traffic.
    • A hacker could infiltrate air traffic, causing planes to fall from the sky, or reset railroad tracks, causing trains to crash.
  • An Iranian shipping line has been indicted in New York on charges that it is part of Iran's effort to obtain restricted technology for its nuclear and missile programs.
    • The 317 count charges claim that the Islamic Republic of Iran Shipping Lines and 15 other defendants of conspiracy to set up shell companies in Singapore, the UAE and the UK to trick major clearing banks in New York into receiving and sending more than $60 million worth of payments. The indictment comes as a result of a 14-month investigation.
  • An effort to deliver $3.6 million to pay Somali terrorists as ransom for release of ships and hostages has resulted in six persons' (3 Britons, 1 American and 2 Kenyans) being sentenced to 10-15 years in prison in Somalia. *
    • Shortly after landing in a small plane in Mogadishu airport, they waited to transfer the cash to another plane for delivery and were arrested. Three of the arrested, including the pilot, were employees of a Nairobi-based security firm.
    • The UN estimates that ship owners paid more than $10 million to get ships released last year.
    • *UPDATE* The president of Somalia has pardoned and released the six prisoners.
  • Monsoon season was expected to reduce pirates' attacks in the Indian Ocean as it has in the past; however, this has not happened. The season begins in May or early June. Three attacks have occurred in the Indian Ocean during June.
    • Over the weekend of June 10 – 12, a tanker was fired on during 34 mph winds and ocean swells of really 15 feet. The following day a Panama bulk carrier was fired on in the same vicinity.
  • Louisville is considered a high risk area for cargo theft. A truckload of diabetes testing equipment was stolen recently, valued at $4 million. It was stolen between 10:00 pm June 18 and 2:00 am June 19 from a carrier lot in Louisville. Louisville joins Miami, Memphis and Dallas-Fort Worth as the most active locations for stolen loads.

Trade, partnerships and regulations

  • Trade between Brazil and China is projected to increase by 30 – 40% this year, and could reach 50%. The average trade between the 2 countries was $15 billion US dollars between 1990 and 2000. In 2003 trade totaled $40 billion US dollars and is projected to increase 30 – 40%, possibly reaching 50% in 2011.
    • Iron ore and agriculture products are a great portion on China's imports from Brazil. Brazil's imports from China include electronics.
  • A fund owned by Oman intends to buy a stake in German container lines Hapag Lloyd, reports Reuters. China's HNA Group, owner of Hainan Airlines, is also an interested party.
  • Motor carriers have petitioned California Governor Jerry Brown for relief from emissions controls that were ordered by the Port of Oakland. The emission restriction affects some 4,400 local drayage trucks, estimated 75% of the Port total. Carriers have prepared for a strike if the controls are enforced.

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