The Air & Sea Magazine from Gebrüder Weiss 03/07

03/07
Gebrüder Weiss in
Canada
The USA network opened a branch office in
Toronto in 2006. Montreal followed in 2007.
The beginning of a success story. Page 3
Better Safe than
Sorry
If ensuring the highest degree of payment
security in foreign trade is a top priority, a letter
of credit is an absolute necessity. Page 6
The Air & Sea Magazine from Gebrüder Weiss
Around the
Globe
Employees from the Weiss-Röhlig network talk
about when and how New Year’s is celebrated
where they are. Page 8

orange globe – editorial
Between 1948 and 2004 global
trade increased by 27 times, while
the production of goods only
increased by about 8 times within
the same period.
Global commerce has been experiencing double-digit
growth since China joined the WTO. Such rapid growth
would not have been possible without having specific
regulations in place that are valid beyond national borders.
With the Incoterms, the International Chamber of
Commerce created a benchmark for the international
movement of goods. In addition to providing these terms,
the organisation also helps to regulate and ensure
con sistency in the processing of documentary credits,
which act as a guarantor for maximum payment security
in foreign trade. Read pages 6 and 7 to learn more about
the types of obstacles that can present them selves in
day-to-day business in connection with commercial terms
and letters of credit. Find out how our staff can assist
you in overcoming these or avoiding them all together.
After the Weiss-Röhlig joint venture had success fully
established itself on the US market, the time was right to
cross the national border to the north. We have dedicated
this edition of orange globe to Canada, the land of two
million lakes.
It all began two years ago with an office in Toronto. In the
meantime, a second one has now been recently opened
in Montreal. With the provinces of Ontario and Quebec
producing nearly two thirds of Canada’s GDP, we have
an excellent strategic position with a third branch in
Vancouver to follow in the medium term.
I am convinced that Canada will play an increasingly
important role within Weiss-Röhlig’s global network. And
not just in international transport, but more and more as a
skilled pro-vider of tailor-made logistics solutions as well.
Neither Christmas nor New Year’s is celebrated the
same way in all cultures. However, as the year comes to
a close, I would like to use the coming holidays as an
opportunity to thank you, on behalf of all of our Air & Sea
staff around the globe, for the trust you have given us
throughout the year. I wish you peaceful holidays and a
happy and successful New Year 2008!
Heinz Senger-Weiss,
Air & Sea Management Board
GW-Air GW Air & Sea–Contact
Sea–Kontakt
Gebrüder Weiss GmbH
Bundesstraße 110, A-6923 Lauterach
T +43.5574.696.207
F +43.5574.70928
air-sea@gw-world.com
www.gw-world.com
orange globe
forwarding abc’s
Country-specific surcharges
AMS Fee/ACI Fee This fee is generally imposed
for goods export into the USA, Canada and Mexico; it is also applied to airfreight
traffic to India. By means of the AMS (automated manifest system) or ACI (advance
customs information), shipment information is sent in advance electronically to the
customs authorities in the respective country.
Heavy Weight Surcharge If cargo volumes
in certain regions or countries are exceptionally high (as is currently the case in China),
shipping companies will pay closer attention to the weight of containers. A weightdependent
surcharge is imposed for heavy loads, which considerably limit the
number of containers ships can carry.
Peak Season Surcharge
Shipping companies impose a surcharge in certain regions when the load volume
increases due to seasonal peaks.
War Risk Surcharge This risk surcharge is applied
to sea freight shipments into war zones or countries with war-like conditions.
A Critical View
Radically Changing Industry
Michael Büchele, Regional
Management Central, talks
about administrative and
operational expenditures that
require increasing amounts of
resources and foresees greater
challenges in the future.
Load – transport – unload. Transporting goods hasn’t
been that simple for a long time. The customer’s requirements
are becoming more and more complex. Total
logistics solutions are in demand. At the same time, the
prevailing conditions in freight traffic are subject to
constant, and at times, sweeping change. Tougher laws,
tightened regulations and new statutes bring about
greater organisational expenditure. The term “security”
has been given a whole new meaning for air traffic in
particular. Rigorous security regulations were introduced
in the aftermath of September 11. Under these provisions,
“regulated agents” such as Gebrüder Weiss became
obligated to adhere to a number of measures affecting
both operative and administrative aspects of airfreight
handling. Among these was the naming of security agents
and the training of employees in the new regulations.
Increased safety standards had to be applied in warehouse
facilities in order to rule out any possible manipu-
lation. Declarations must be obtained from customers so
as to declare them as “known shippers”.
Meanwhile, the surcharge jungle in sea freight is
growing even thicker. From the new low sulphur surcharge
based on the amount of sulphur in a ship’s fuel, to the
peak season, congestion, demurrage and heavy weight
surcharges often applied to shipments to and from China
– and these are just a few of the surcharges imposed by
shipping companies.
Part of our responsibility is also having up-to-date information
on country-specific regulations. For example, the
maximum allowable weight for containers transported on
the road varies from country to country. Likewise, import
regulations for wood packaging vary throughout the world.
What’s more, they are constantly changing. And,
especially with regard to ecology and safety, we will
be facing even greater challenges in the future.

orange globe – topic
What was once a United States network has now
become a North American alliance. The joint venture
has established two Canadian offices, with one in
Toronto and the other in Montreal. Incorporated into
the international Weiss-Röhlig Organisation, Weiss-
Röhlig Canada has established itself in the local
Canadian market as a dependable and experienced
partner for the movement of goods worldwide.
As neighbouring countries, Canada and the United
States are connected by both common border and
especially the language and culture they share. “The
markets are very similar and have been dependent on
each other for a long time now,” says Arnaud Majstorovic,
Executive Vice-President of Weiss-Rohlig Canada Inc.
For Maj sto ro vic, Weiss-Röhlig’s expansion to Canada was
a logical next step.
Rapid Growth
In the summer of 2006, the joint venture finally began
the Canadian adventure with its own staff in Toronto, the
capital of Ontario. From the start, the company’s strong
background proved very valuable. “It wasn’t as if we were
standing there empty handed as we founded the
com pany; Gebrüder Weiss and Röhlig had already been
active in Canada in the past through agents,” Arnaud
Majstorovic adds. European transport and logistics organisations
were already known on the market and had a good
reputation. “The company’s image surely played a role
in our ability to build trusting business alliances with
customers as well as regional contractual partners.”
A second branch followed only one year later in
Montreal. Canada’s second-largest city after Toronto is
both an important business location and destination
within the GW Group. In Arnaud Majstorovic’s opinion,
being located in this metropolis in the French-influenced
It was five years ago that Gebrüder Weiss dared
to cross the big pond together with joint venture
partner Röhlig to begin establishing a network of
locations in the United States. In no time, Weiss-
Röhlig North America turned into a success story
that continued with the expansion to Canada.
The North American
Connection
The beginning of a success story
„
Other possible locations
would be Vancouver, for
example, for the Pacific trade
and Calgary for oil, gas and
project contracts.
province of Quebec has clear advantages: “We are able to
take care of distribution and customer service in the
best possible way using our own team. This enables us
to better fulfil the requirements of existing regional
customers on the one hand, and acquire new customers
more quickly on the other. We are almost guaranteed
to ex perience rapid growth in the regional market.”
A Seamless Transport Chain
For the Executive Vice-President, there is no question
as to why Weiss-Röhlig Canada is better than the competition:
“Our employees make the difference. They are
highly skilled, anticipate customer needs and are always
avail able.” On top of that, they are extremely flexible,
“which allows us to offer logistics solutions that meet
even the highest demands.” Here, Weiss-Röhlig’s international
network plays an important role. Even with the
small size of the company when considering Canada’s
sheer vastness, nearly all business that has to do with the
international movement of goods can be carried out
through this network. “And we can also count on the local
expertise of our overseas partners,” Arnaud Majstorovic
adds, “which results in a seamless transport chain from
the consignor to the consignee and guarantees that the
forwarding process is carried out smoothly.” In addition to
international air and sea freight, Weiss-Röhlig Canada’s
service portfolio also includes project shipments. Subcontractors
are hired to handle customs clearance, warehouse
logistics and distribution. More than 70 percent
of finished goods importing and exporting takes place
in the provinces of Quebec and Ontario; the activities
are concentrated for the most part over a 700 kilometre
long line between Quebec City, Quebec, and Hamilton,
Ontario. “We cover this area completely with our offices
in Montreal and Toronto, which means we already have
a foothold in a very large market,” says the Executive Vice-
President. Strategic expansion of the network is already
being planned: “Other possible locations would be
Vancouver, for example, for the Pacific trade and Calgary
for oil, gas and project contracts.”
A Promising Future
“Currently around two thirds of our business activities
are focused on the importation of goods, with air and sea
freight accounting for equal shares of this business.
Exports account for one third of our business,” reports
Arnaud Majstorovic. By far, the largest market is Europe
(with a 72% share), followed by Oceania (with a solid 17%
share), Africa (7%) and Southeast Asia (4%).
And the statistics show that Canada is importing more
and more finished goods every year: Seaports and
air ports regularly report record numbers; airlines and
shipping companies are increasing their capacities and
starting to offer new destinations. “These are all signs
that point to a promising future for the transport and
logistics industry in Canada,” Arnaud Majstorovic states
enthusiastically. The Manager sees Weiss-Röhlig Canada’s
greatest potential for growth once again in China: “The
countries of Southeast Asia, the People’s Republic in
particular, are without a doubt the world’s leading producing
countries. And they will continue to hold this
position in the coming years as well.”
Personal Profile
Arnaud Majstorovic
Executive Vice-President of
Weiss-Rohlig Canada Inc.
Age:
36 years
Nationality:
French
Residence:
Toronto
He appreciates:
Discussions,
sunny days,
honest people
He doesn’t like:
People with
a bad attitude,
his Blackberry
Food & Drink:
Mexican food
(especially fajitas),
water
Hobbies:
Cars, painting, travelling
with his family
Motto:
“If it ain’t broken,
don’t fix it!”
Goals:
To further establish
Weiss-Röhlig Canada
and learn something
new every day in the
process

orange globe – focus
Fact Box
Canada
Permafrost and granaries, the Rocky Mountains and endless expanses,
modern cities and remote outposts, national pride and separatist tendencies
– Canada is full of contrasts. The world’s second-largest country has a
fascinating way of combining local colour and cosmopolitanism and is much
more than just the “little brother” of the United States.
Land
In the
of the
Maple
Area: 9,984,670 km²
Population: 32.98 million
Population density: 3.3/km²
Capital city: Ottawa
Official languages: English, French
Form of government: Parliamentary
democracy (federal
constitutional monarchy)
belonging to the British
Commonwealth
Provinces: 10
Territories: Northwest
Territories, Nunavut,
Yukon Territory
Gross domestic product:
1.130 trillion USD (2006)
Economic growth: 2.9 % (2005)
Unemployment rate: 5.9 % (2007)
Currency: Canadian dollar
1 Canadian dollar (C$) = 100 cents
(1 CAD ~ 1.03 USD)
Leaf
The Hudson’s Bay Company is Canada’s oldest
commercial corporation and, at the same time,
one of the oldest companies in the world. With its
origins in the fur trade, to some extent, the HBC
represents the development of the country from a
remote colonial region into a modern cosmopolitan
and economic centre with dynamic cities. Yet what
makes Canada so unique is its natural beauty and
resources: the thundering Niagara Falls, the rugged
Rocky Mountains and the outdoor paradise of
Vancouver Island.
Jacques Cartier was hired by the king of France to find
a sea route to the Orient that should be free of perils and
as short as possible. An Italian had already attempted this
in 1492, sailing under the Spanish flag, yet was un -
successful; Christopher Columbus never made it further
than America. The American continent stood in the way of
Cartier as well, but he landed considerably higher north
than Columbus. It is likely that the Viking Leif Eriksson had
taken a similar route 500 years before him. Viking settlements
were discovered on Newfoundland dating back to
a period more than 1,000 years ago – contrary to the
long-standing opinion that John Cabot had discovered
Canada.
The Indian Village
A helpful Iroquois showed Jacques Cartier the way to
“Canada” – the Indian name for village. As was customary
of that time, Cartier immediately seized the area of land for
his king and, “instead of fulfilling what he was actually hired
to do, he spent most of his time trying to convince the
natives that they were now illegal inhabitants on the land of
a country that belonged to ruler whose kingdom was three
thousand miles away,” remarks university professor John
Munro. All the same, Jacques Cartier gave the second
largest country in the world its name. And he also discovered
the Saint Lawrence River. The French eventually
founded Quebec at the beginning of the 16th century.
The North American continent would later become the
battleground for conflicts that had been going on between
France and England for centuries. After the Seven Years’
War France was forced to cede all of its Canadian colonial
possessions to England.
Canada’s movement towards independence came in
steps: The first one was taken with the British North
America Act, which more or less became the Canadian
constitution. Yet the country did not become completely
sovereign until 1982.
Two Million Lakes
This giant country with two million lakes is divided into
ten provinces and three territories. The population density
is three inhabitants per square meter; in comparison,
Germany has 231. Although Canada is nearly as large as
all of Europe, it has fewer inhabitants than Poland.
It is covered with forests that stretch over vast expanses
as well as large areas of tundra. Almost 90 percent of the
Canadian population lives along the border to the United
States. Vancouver is considered to be “the most beautiful
city in Canada”. Montreal and Quebec have a very European
flair, with a noticeably French influence. This is no surprise,
as Montreal is the second largest French speaking
city in the world and Quebec is the only Canadian province
whose official language is French. Toronto, the economic
centre of the country, is hardly distinguishable in its
appearance from any other typical American city.
The Native Americans, French and English have created
an exciting mix of traditions that still influences Canadian
art and culture today. Canada is the birthplace of countless
artists such as the singers Neil Young, Leonhard Cohen
and Joni Mitchell, the actors Keanu Reeves and Jim Carrey
as well as the pianist Glenn Gould to name just a few. The
most outstandingly unique art is considered to be that of
the Inuit, especially their sculptures and carvings.
Bizarre Politicians
As is typical of many immigrant countries, the population
is very heterogeneous. “If you were to ask ten Canadians
what a typical Canadian is like, you’d probably get ten
different answers,” John Munro writes in his book “The
splendour of Canada”. This sheds light on the fact that
Canada has had a number of bizarre politicians over the
course of its history, which, in some cases, have had a

major influence on the country. Prime Minister William
Lyon Mackenzie-King trusted his mother’s advice above
all else when making important decisions. This alone is
not all that unusual, if you ignore the fact that she had
already been dead for many years and that he received
these messages from the beyond through his terrier.
Even with all of these quirks, he was still able to remain
in office for a total of 21 years.
Prime Minister Pierre Trudeau, who governed with
breaks from 1968 to 1984, officially established bilingualism
in Canada. Trudeau was also the first head of government
who was willing to meet with John Lennon and Yoko
Ono on their “Tour for World Peace”. After having met with
the Prime Minister, Lennon said: “If all politicians were like
Pierre Trudeau, there would be peace in the world.” Under
the leadership of Trudeau, Canada was the first Western
country to begin diplomatic relations with the People’s
Republic of China – much to the annoyance of the US
President at that time, Richard Nixon.
The fact that Canada is a liberal country is reflected
in the “Freedom of Information Act”: Every citizen can
petition the government for official documents. The only
exceptions are cases in which national security could
be jeopardised.
The country is not completely free of tensions, however.
The relationship between Quebec and the English
provinces is particularly problematic. Canada nearly split
apart in 1995. Just a few thousand more votes and the
separatists would have succeeded.
„
If you were to ask ten
Canadians what a typical
Canadian is like,
you’d probably get
ten different answers.
— John Munro
from his book “The splendour of Canada”
Economic Superpower
Canada is a member of the G8 and enjoys a level of
economic growth most other nations can only dream of.
For the last 15 years (!), the economy has been growing
steadily; since 1995 it has been expanding at an average
annual rate of 3.9 percent. Ontario and Quebec are the
economic centres. More than 60 percent of the gross
domestic product is generated in these two provinces. The
major businesses and industries including 85 percent of
the workers are concentrated over a 350 kilometre wide
strip along the border to the United States. In world trade
statistics, Canada is ranked number nine for exports and
ten for imports. The Canadian economy is closely linked to
the US economy: The majority of Canada’s exports are to
the USA, and more than half of all imports come from the
neighbour to the south. Goods with a total weight of
40 million tons are shipped every year on the St. Lawrence
River between the Great Lakes and the Atlantic.
Although Canada is rich in natural resources, the service
sector now accounts for more than two thirds of the GDP,
while the manufacturing industries now account for just
under 20 percent. Other important economic sectors in -
clude agriculture, minerals and natural gas.
Yet there is a price to pay for the strong industrial orientation.
Like the USA, Canada has not exactly won any
international praise for its handling of environmental issues
in the past. It is one of the world’s largest producers of CO 2
and, on the whole, among the industrial countries with the
worst record for environmental protection.
World Champions
On the other hand, Canadians are true lovers of nature.
And there are plenty of natural wonders in Canada. Every
year, for example, countless numbers of polar bears wait
for the Hudson Bay to freeze so they can begin their hunt
for seals. Churchill, Manitoba becomes the polar bear
capital of the world every October and November.
And Canadians love sports too. Besides lacrosse
(a mixture of hockey and handball), the national sport is of
course ice hockey, which was created in Canada in the
19th century. The “Maple Leafs” hold the record for winning
the most World Championships, even though they are
almost never able to compete at full strength because
of the National Hockey League (NHL) play-offs, which
typically take place during the same time.
Canada has hosted the Olympics twice already. The
Summer Games, which took place in Montreal in 1976,
would prove to be a financial disaster. The city was
burdened with debt for many years. The Montreal Olympic
Games are still considered to have been the most
expensive ever organised. But this didn’t stop Calgary
from trying it again in 1988. And in 2010, Canada will
host the Winter Games for the second time. This time they
will take place in Vancouver and Whistler.
Fact Box
Ranked: 1
Canada is the world’s
largest paper producer
and most important
uranium supplier. The province of Quebec is
the world’s largest producer of maple syrup, which
is made from the sap of the sugar maple tree. The
leaf of this tree adorns the Canadian flag.
Ranked: 2 Canada is second only to
Russia in size and has the world’s second largest
oil reserves after Saudi Arabia.
Ranked: 3 Canada is ranked third in the
statistics when it comes to gas or diamond production.

orange globe –
interview
Cash is what’s
really behind a
letter of credit
An interview with Ingrid Scheffknecht,
Seafreight Customer Service and
Project Shipments
Twelve years have passed since Ingrid
Scheffknecht ended up in Sea Freight
after coming from Airfreight via Surface
Traffic. Since then, the work in this area
has always fascinated her. The 44 year
old is also able to apply her extensive
experience when a secure handling of
payments is required in exporting goods.
A letter of credit has been opened. What else do
you need to pay particular attention to after that?
You must make sure that the transport service provider
is brought into the picture right away. I often find that
companies are too careless when it comes to forwarding
the letters of credit. They book a regular container from us,
it’s loaded, and suddenly a letter of credit comes into play
once it’s time to put the transport documents together.
But if the letter of credit happens to contain terms regarding
the organisation of transport that can no longer be
met at this point, substantial problems can be the result.
One of the consequences can be that the container must
be completely emptied and rebooked with another shipping
company. The consignor pays for these costs.
In your experience, what is usually the problem
when difficulties arise in connection with letters
of credit?
It’s usually something little that makes the paperwork
incorrect. It can be a note in a certificate, which the shipping
companies aren’t allowed to formulate in such a way,
or a clause that must be included in the bill of lading. For
example: In the Indian state of Maharashtra it is a legal
requirement that the transport document must have a
specific formulation to regulate certain duties. Now, if it is
expressly noted in the letter of credit that no additional
costs may appear on the bill of lading, the forwarder is
stuck between a rock and a hard place: The passage must
be listed in the transport document. But that wouldn’t
actually be allowed in this case.
What consequences can the consignor expect in
cases like this where there are discrepancies?
The bank pays “under reserve”. The consignor usually
gets his money; however, this occurs completely on the
good will of the consignee. The letter of credit typically
loses the absolute security it was intended to offer be -
cause of this.
What do you recommend to customers to
guarantee that everything goes smoothly?
They shouldn’t let the consignee pressure them into
including formulations that don’t make any sense, like
“Goods may not be transported using a sailing vessel”.
I also warn about terms that restrict the transport process
too much. For example, assigning the shipment to a
special shipping company can become expensive if there
are no containers of that type available at the departure
terminal. In any case, I strongly recommend the customer
to provide us with a copy of the letter of credit in advance.
We can work with the shipping company to go over the
terms in detail, which can often remove obstacles right
away – and save money in the end. Amending a letter of
credit at a later time is extra work that the opening bank
charges for, if there is even still time to do that.
orange globe –
reports
Better Safe
than Sorry
If ensuring the highest degree of payment security in
foreign trade is a top priority, a letter of credit is an
absolute necessity. Even though there is a lot at
stake, the beneficiaries are often much too careless:
Approximately half of all submitted documents are
incorrect.
A letter of credit (L/C) is a payment promise from a bank
separate from the underlying transaction. It has proven to
be a suitable instrument to eliminate (many) risks in international
business.
If the contractual partners agree to a documentary letter
of credit as a payment instrument, the purchaser will then
contact a bank to open up one for the benefit of the seller.
Once the seller has this documentary letter of credit in his
possession, he can be assured that he will receive the
agreed credit amount upon successful delivery of the
goods. On the other hand, the purchaser has the assurance
that he must only pay if the documents conform to the
letter of credit and are presented within the agreed period.
Documentary letter of credits can be subdivided into
export and import letters of credit: With an export letter of
credit, the exporter has a claim to payment for the exported
goods. The purchaser must therefore open the letter of
credit. With an import letter of credit on the other hand, a
company receives goods from a foreign producer and
must therefore take care of opening an import letter of
credit itself.
„
If we are to set up an
irrevocable letter of credit
from this end for a “difficult”
country, we contract a
correspondent bank with
a reputation in that country.
— Austrian Bank for Tyrol and Vorarlberg
There are global regulations for the handling of business
dealings backed by letters of credit. These are outlined
in the “Uniform Customs and Practice for Documentary
Credits” (UCP) published by the International Chamber of
Commerce in Paris. The most current version is “UCP600”,
which came into effect in July 2007. It is binding for all
parties.
There are only a small number of “risk countries” with
regard to business dealings covered by letters of credit.
Unstable countries marked by political turmoil and currency
problems are considered economically problematic on
the whole. The so-called country risk is generally assumed
by banks only in the case of a confirmed letter of credit. “If
we are to set up an irrevocable letter of credit from this end
for a “difficult” country, we contract a correspondent bank
with a reputation in that country,” according to the Austrian
Bank for Tyrol and Vorarlberg.
According to the credit institute, the essential element
of a completely smooth process is to have documents that
conform to the letter of credit: “It begins with agreeing on
conditions that can actually be met, and ends with the
beneficiary adhering to these.” In spite of knowing better,
it appears that many beneficiaries don’t seem to take this
issue seriously enough: “More than half of the submitted
documents contain formal or factual errors.” Numerous
discussions, intervention attempts and a corresponding
financial burden is often the consequence. More over,
documents with errors also give the consignee an easy
target for attack – the only one in the otherwise secure
environment provided by a letter of credit.
Types of documentary letter of credits
An irrevocable letter of credit can be neither
amended nor annulled without the ap-proval of
the opening bank, the beneficiary and eventually
the confirming bank.
With a confirmed letter of credit, the advising
bank assumes an independent pay-ment obligation
with its confirmation in addition to the opening
bank’s obligation.
With an unconfirmed letter of credit, the advising
bank (credit office) only carries out the
instructions from the opening bank. The bank is
not considered a participant and is not liable for
the payment.
Some special types of
letters of credit
A transferable letter of credit enables the primary
beneficiary (exporter, broker) to make his claims
from the letter of credit available in whole or part
to one or more secondary beneficiaries (the actual
supplier).
A red clause or green clause letter of credit
contains clauses in the documentary letter of
credit that entitle the exporter to an advance payment
to finance advanced charges from the commercial
transaction.
A back-to-back letter of credit is an instrument
used to finance intermediate trade. The beneficiary
exporter from the original letter of credit
contracts his bank to open a back-to-back letter
of credit for the benefit of the vendor.
A standby letter of credit (standby L/C) is a
common hedging instrument used internationally
that was originally created by banks in the USA.
A standby L/C combines features of a bank
guarantee and a letter of credit and is now used
throughout the world.

A Milestone for
World Trade
The history of trade can be traced back at least
140,000 years. At that time, long-distance trade
relations already existed in Africa, the cradle of
civilisation, with some trade activity stretching
over several hundred kilometres. For the first time,
a set of regulations for the international movement
of goods, which were to be valid across the globe,
were drafted by the International Chamber of
Commerce (ICC) in 1936.With the Incoterms,
the ICC created a benchmark.
Completely different trade customs had developed
throughout the world over the course of history. Misunderstandings
and disputes between importers and exports
were the result. The creation of the Incoterms (International
Commercial Terms) made many of these differ-ences
of opinion a thing of the past.
“The Incoterms regulate the transfer of cost and risk as
well as some of the obligations of the purchaser and seller
resulting from the purchase contract,” says Klemens
Strohmer, Product Manager Seafreight Central Eastern
Europe. The commercial terms, however, do not at all
replace the purchase contract. “This is because they don’t
contain any information about the transfer of ownership or
the terms of payment.”
The terms have been revised periodically since they
were first published. The currently valid version of the
“Incoterms 2000” takes into account in greater depth the
growing number of duty-free zones, electronic data interchange
and the changing state of transport systems.
Klemens Strohmer recommends that contractual partners
make sure to agree on the current version of the
“Incoterms 2000” and to specifically note this in the
purchase contract.
Problems start to arise when the Incoterms are misunderstood.
The terms “ex works” (EXW) and “free carrier”
(FCA) cause the most confusion. “EXW is often incorrectly
used to define that the purchaser assumes the costs and
risks for the entire transport starting from the seller’s warehouse,”
says Klemens Strohmer. But that would be for-
Info Box
The Incoterms comprise 13 terms
that are subdivided into four groups:
Group E (Departure): The seller makes the goods
available at his own premises. The transport costs
and risks are borne by the purchaser.
Group F: The seller hands the goods to a carrier
named by the purchaser. The main transport costs
and risks must be borne by the purchaser.
Group C: The seller concludes the transport
contract and assumes the transport costs, but not
getting that the costs and risks for loading and cargo shift
protection are assumed by the purchaser for EXW as well.
If EXW has been agreed to, the seller is only obligated to
make the goods available at his premises.
And FCA does not mean that the seller must deliver
the goods to a shipping terminal. Here you have to
differentiate: If the named place is on the seller’s premises,
the delivery is completed once the goods have been
loaded onto the means of transport provided by the
carrier that has been designated by the purchaser. If the
named place is somewhere else, the delivery is completed
once the goods have been made available to the carrier or
a third party, unloaded, on the seller’s means of transport.
Finally, Klemens Strohmer generally recommends
precisely defining the place of cost and risk transfer. “If
only “free on board” (FOB) is agreed to in the purchase
contract, the seller has the option of choosing the port
that best suits his needs.“ For example, for a container
transport from Graz to the USA, the seller could have the
container shipped to Koper be-cause the pre transport
would be cheaper for him than to Bremerhaven. For the
purchaser, however, the sea freight costs to the USA might
be end up being more expensive.
And the interplay between Incoterms and letters of
credit should not be underestimated: All of the transport
documents are created based on the delivery conditions
„
included in the let-ter of credit.
The Incoterms regulate
the transfer of cost and risk
as well as some of the
obligations of the purchaser
and seller resulting from the
purchase contract
— Klemens Strohmer
Product Manager Seafreight Central Eastern Europe
the risk of loss or damage of the goods nor
additional costs resulting from events that take
place after the goods have been transported.
Group D (Arrival): The seller assumes all costs
and risks until the arrival of the goods at the named
place in the destination country.
FAS, FOB, CFR, CIF, DES and DEQ are purely sea
freight terms applied exclusively for sea freight
transports.
orange globe –
news
Interested in Air & Sea
The non-profit organisation “Junior Achievement (JA)
Hong Kong” works in cooperation with business and
educational establishments to highlight the importance
of practical training and continuing education.
Within the scope of JA’s “Job Shadowing” programme,
companies from various sectors give young
people from pre paratory schools the chance to learn
more about professional life in their businesses. The
goal is to get students excited about different careers
and prepare them for the future as well.
Weiss-Röhlig Hong Kong was among the companies
to take part in this year’s programme, giving
a total of 8 young adults the chance to learn about a
specific department in depth. Under the guidance of
a mentor who explained the tasks and procedures in
detail, they delved into the exciting world of sea
freight import, sea freight export, airfreight import
and airfreight export.
Taiwan Opening
On 11 October, the Weiss-Röhlig Taiwan team
in vited guests to an official opening party at a very
special location: the Grand Hotel in Taipei, where the
decision was made one year ago to begin independent
activities on the Pacific island. More than one
hundred customers, representatives from renowned
airlines and shipping companies as well as numerous
colleagues from the international Weiss-Röhlig network
accepted the invitation.
The host was especially pleased to welcome the
Austrian trade delegate and the representative of
the Austrian and German tourism office. Among the
overseas guests were the Air & Sea Management
Board member Heinz Senger-Weiss and Network
Manager Joe Lässer from Gebrüder Weiss as well
as the Managing Director from Röhlig, Ian Hamon. In
his welcoming speech, Franz Haghofer, Managing
Director of Weiss-Röhlig Taiwan, thanked Management,
partners and all participants for their support
during the turbulent start-up phase.

orange globe –
inside
Happy New Year!
Nearly all cultures celebrate the turn of the year with their own special traditions and festivities.
But it’s not just how the new year is celebrated throughout the world that is very different –
when it is celebrated is not the same everywhere either.
This is due the different calendars on the one hand,
and how the International Date Line runs on the
other. For example, the inhabitants of the Kingdom
of Tonga, an ar-chipelago in the Pacific Ocean, will
be the first to wake up on 1 January 2008.
In Samoa, however, only about 1,500 kilometres
further northeast, this won’t happen until 24 hours
later. orange globe asked employees from the
Weiss-Röhlig network when and how New Year’s
is celebrated where they are.
Twice is Twice the Fun
This only happens in Cape Town: Here, New Year’s
is celebrated not once, but twice. On 2 January, the
carnival-like festivities reach their climax with the holiday
“Tweede Nuwe Jaar” (“Second New Year”). Thousands of
people in brightly coloured and elaborate costumes sing
and dance as they parade through the city. They are armed
with drums, trumpets and colourful umbrellas – that match
their costumes, of course – and whistles that hang from
their necks. The so-called “Coon Carnival“ is a celebration
of the mixed culture found in South Africa’s “mother city”
that can be traced back to Malaysia, New Orleans, Africa,
Holland and England. The colourful parade has its roots
in the people’s parades after the abolishment of slavery
in the 19th century. Coloured people remained wage
slaves at that time, but because they didn’t have to serve
the white people on “Tweede Nuwe Jaar” they used this
day to celebrate. Ever since Nelson Mandela took part in
the festivities as a masked “coon” among the lively crowd
nine years ago, it’s been official: The “Coon Carnival” is
a part of the new South Africa.
Candice du Randt, Sales Manager,
Rohlig Grindrod, South Africa
A Big Deal
New Year’s in New York – “a big deal”! People from
around the globe come to the city that never sleeps to
celebrate New Year’s. The preparations for the gigantic
party are already in full swing the day before, and New York
City seems to be one huge construction site. Then on the
31 December more than 500,000 people gather at Times
Square in the heart of Manhattan. Spellbound, they (and
nearly a billion people in front of the television screen)
watch and cheer at exactly 23:59 p.m. as a sparkling ball,
the legendary “New Year’s Eve Ball”, slowly drops from the
top of building number one. They are “ringing in” the New
Year. After the “ball drop”, the masses of people pour into
the countless clubs and bars in New York City. Tickets
have to be purchased up to a year in advance. Nevertheless,
most of the bars are crowded to overflowing. Those
who have lived in New York for a long time like to avoid
Times Square altogether: Many prefer to celebreate New
Year’s far away from the (tourist) chaos, with their families
or at private parties.
Thomas Gilgen, Branch Manager New York Office,
Weiss-Röhlig USA
Lion Dance into the Year of the Rat
The festivities surrounding the Chinese New Year begin
in Hong Kong on the second new moon after the winter
solstice. For 15 days, they shape the life of the former
British crown colony. The families have already cleaned
their homes from top to bottom to sweep out the bad luck
from the past years and make room for the good luck that
is to come. The Lion Dance at the start of the New Year
festivities is the traditional way of welcoming the deities of
the heavens and earth. On the following day, the Chinese
pray to their ancestors and the gods. In the coming year, 7
February will be the day when the Year of the Rat moves on
into the Year of the Pig. On this occasion, the government
organises a gigantic fireworks display in Victoria Harbour.
People wish each other Happy New Year by say ing “Mit Xin
Nian Kuai Le” (in Mandarin) or “Gong hay fat choy” (in Cantonese).
Even with all of the Chinese traditions there is still
room for a touch of the “West”: In Hong Kong there are a
good number of people who also celebrate the Western
New Year with “countdown parties” on 31 December.
Monica Tang, Weiss-Röhlig Hong Kong
Life according to the Lunar
Calendar
In Dubai, 1 January is just like any other day of the year
as the local people don’t celebrate the Western New Year at
all. The Islamic calendar doesn’t begin with the birth of
Christ but rather with the Hijra, the departure of
the prophet Mohammed from Mecca to Medina. For this
reason, the Islamic calendar is also called the “emigration”
calendar in Arabic. It is solely a lunar calendar and,
depending on the phase of the moon, is ten or eleven days
shorter than the Gregorian solar calendar. According to this
calendar, the Islamic world is currently in the year 1428, until
the New Year begins on 10 January 2008.
Most foreigners invite friends into their homes on New
Year’s to spend the last day of the year with them. I personally
like to cook something special. Organising sparkling
wine and beer can be quite a challenge. A special licence is
required in Dubai to be able to purchase beverages that
contain alcohol. This year I’m going to take off a few days so
that I can celebrate New Year’s at home in Austria.
Bernd Dona, Management Assistant Dubai Office,
Weiss-Röhlig UAE
Imprint: orange globe, the customer magazine of Gebrüder Weiss Ges.m.b.H.. Media owner, editor, publisher: Gebrüder Weiss Ges.m.b.H., Bundesstrasse 110,
6923 Lauterach, Austria. Responsible for the content: Michael Büchele, T +43.5223.206.441. Editorial staff: Silke Lechner, T +43.5223.206.449. Production:
Raimund Fink, Design: Dalpra&Partner, Götzis, Planning and language adaptation: Markus Grabher, grafikdesign.com, Print: Buchdruckerei Lustenau
Secret Recipes and Dreams
of Footballing Fame
Weeks before New Year’s Eve, Chilean families are
already busy discussing which aunt is going to prepare
the culinary delights and which uncle will take care of
the special alcoholic beverages. An “empanada” is a
traditional part of the meal, which is a delicious pastry
turnover with cheese or grandma’s secret mincemeat
filling. And the barbeque is on in front of every house.
There are ribs, steaks and spicy “chorizo” sausages.
Neighbours stop by to try a taste of this or that. And
there are plenty of drinks. You’ll always find the national
drink “Pisco Sour”, which is a cocktail made of Pisco
brandy, lime juice, syrup, egg whites and ice.
The boys play football in the street and dream of being
Ronaldhino, or fly kites that they can hardly see anymore in
the dark of the night. All the while, the adults sit together
outside and indulge in memories of the past: The men tell
stories to anyone who will listen about their former football
talent; the women about the beauty they had in their
youth.
At midnight, when colourful fireworks light up the sky,
they jump up and down together and hug and kiss each
other. Between the loud sounds of Latino music you can
hear the congratulations: “Feliz año nuevo!”
Anthony Roe, Managing Director Santiago Office,
Röhlig Chile
“Put a shrimp on the barby!”
A typical expression in Australia. Celebrating New
Year’s in shorts and a t-shirt – what sounds like a dream to
any European, is something that is completely normal
“down under”. Most “blokes and sheilas” bring in the New
Year with friends in the back garden over a nice barbecue
and more than a few “Tooheys”. Just like in many other
parts of the world, there are many fireworks displays – the
most spectacular of these is the New Year’s fireworks
display in Sydney over the Harbour Bridge. But the
weather has the final say if there are going to be rockets
and the like at all: Uncontrolled fireworks could easily start
a bush fire, and Australia is often home to strong winds
at this time of the year. On New Year’s day everyone
meets – where else – at the beach to surf, soak in some
rays and relax.
(A bit of Australian for you: barby = BBQ, bloke: fellow,
sheila: lady, Tooheys: Australian beer)