2010 COMPASS A GREAT HAWAII MEETING

A Great Meeting in Hawaii

            Those who attended our 2010 COMPASS meeting all agreed that they had a great time at the meeting, both the social events and the business programs which provided updates on current information, a presentation on another cost saving opportunity and open forum topics that can lead to some beneficial positions for ship suppliers.

             Our social events included our Opening Reception in the Garden of Statues on the grounds of the Hyatt Regency Maui overlooking the Pacific Ocean.  After business sessions on Friday and Saturday, we as a group, seated in the VIP front row section, enjoyed a typical Hawaiian Luau with all the delicacies of multi-cultured cuisine, from poi to the traditional pit roasted pig, including many other choices for the palate.  The show, "Drums of the Pacific", was electric, again showcasing the cultures of the South Pacific Islands.  The 48 COMPASS people who saw the show had a great time.

             Most who attended commented that this was one of the most enjoyable COMPASS meetings and valuable for the information received.  Standard comments - those that missed this meeting missed one of the best.  However, for those unable to attend, we know that airfare, travel time and to a lesser degree, cost, made attending a more difficult decision.  Thus the purpose of this newsletter is to tell you about the meeting and give you the important and valuable information that was discussed at the business sessions.  We always strive to have value in our programs and we feel that this meeting was no exception.

 Dial Ltd. - A Unique Shore to Ship Message Service

             You will recall that at last year's COMPASS Meeting in Quebec, we learned of and offered a special discounted program for credit card processing through Marathon Processing Systems.  A number of members are reducing their costs in the expense area and receiving good service. 

             At our recent COMPASS meeting in Maui, Neil Baker, Managing Director of Dial Ltd. Located in Essex, UK delivered another excellent savings opportunity to NAMS and CSSA members.

             Through Dial Ltd. - contact vessels fast and efficiently.

Dial provides a low cost shore to ship message service that gives you an automated digital network to all vessels directly from your email.

             Together with our fax and telex solutions, Dial Ltd. gives you an email service to all vessels via any carrier without any contracts.

 GLOBE - XANTIC - SKYFILE - STRATOS- EIK TELENOR - AMOS CONNECT                              TELAURUS - GT SHIPS - L/RAISTING

             Our unique fax service gives you the option to send Low Cost Attachments to vessels paying for the duration of your message and not the KB size.

             Our services are available to you today, go to: www.dialltd.co.uk click ACTIVATE YOUR ACCOUNT complete the form and send - your account will be ready to use within 24 hours.

             There are currently over 100 ISSA and IMPA members using our shore to ship message services.  Many Ship Chandlers are taking advantage of our multi-ship message service, this service allows you to contact as many vessels as required simultaneously.

             Simply send a list of the ships names and flags that you want to contact to ops@dialltd.co.uk . Our operations team will locate each vessel, deliver your message and reply with your free message delivery confirmation.

DISCOUNT PRICE LIST

 SHORE TO SHIP FAX PRICES

CHARGED IN 6 SECOND INCREMENTS ONLY

Inmarsat mini M Fax 9 digit numbers beginning with 76 - USD 0.16

Inmarsat          M Fax 9 digit numbers beginning with  6  - USD 0.22

Inmarsat          B  Fax 0 digit numbers beginning with  3  - USD 0.27

SHORE TO SHIP TELEX PRICES

                        Inmarsat B/C = USD 0.08 cents per 256 bits

SHORE TO SHIP EMAIL PRICE

Email price for Globe, Xantic, Statos, Eik Telenor prices are charged @ USD 0.22 cents per quarter Kilobit, one kilobit is equal to 128 characters including space and punctuation, maximum message size to the vessels = 500 kilobits.

            (Note: 1 kilobyte = 8 kilobits, 1 kilobit - 128 characters)

For Amos Connect, Telaurus, Skyfile, the total charge for each message is USD 6.00

SHIP TO SHORE AND WORLDWIDE DESKTOP FAX PRICES

Please apply for, these will be sent to you via email due to the amount destinations available.

            If you activate your account before September 30, 2010 NAMS and CSSA members will receive a further 15% discount.

            Dial also provides desktop email to fax and fax to email.  You can enjoy considerable savings - and increased productivity no fax service, software - contracts.  No setup or ongoing maintenance costs - pay for what you use, cost savings in a number of areas.

ACTION REQUIRED

            You can activate your account by going online to:  www.dialltd.co.uk , complete all sections and send.  Your account will be activated within 24 hours.  Required are: your company information, credit card details and user email addresses.  These are email addresses that you will use to send to Dial Ltd. From.  You can register as many user's as required free of charge.

            This is another opportunity for you to take advantage of cost savings through your Association Membership.  We continue to search for ways to increase our value.

NEW PACKAGING ON MANY PHILIP MORRIS DUTY FREE BRANDS

            At our COMPASS meeting Business Session on Friday, Janet Santana - our NAMS contact with PMDF made a presentation re the new legislation regarding the granting of the Food & Drug Administration the authority to regulate tobacco products.

            The law included a requirement that all brands of cigarettes and smokeless tobacco remove terms such as "light", "ultra light," and "mild" from cigarette and smokeless packaging and advertising by June 22, 2010.

            Beginning in May 2010, PMDF products featuring revised packaging will deliver to direct customers, as available.  There is no set time limit for direct customers to sell their stock of product with the current packaging to their customers or to retail.

            Highlights of the PMDF cigarette packaging changes are as follows:

·         Pack, carton, and case UPC codes will remain unchanged.

·         Current pack descriptors, such as "Lights," "Ultra Lights," and "Milds" will be removed from all packaging.

·         New pack identifiers will be featured on the top of box packings, the bottom of soft packs, and the end flap of cartons.  New pack identifiers will also be featured on all cases.

·         Packaging changes will not occur on all packings.

Old Pack                                New Pack Identifier                    New Pack Available In

Marlboro Lights                      Marlboro Gold Pack                           Box and Soft Pack

Marlboro Lights 100's             Marlboro Gold Pack 100's                  Box and Soft Pack

Marlboro Medium                   Marlboro Red Label                            Box

Marlboro Medium 100's          Marlboro Red Label 100's                  Box

Marlboro Menthol Lights        Marlboro Menthol Gold Pack             Box

Marlboro Menth. Lights 100's Marlboro Menth. Gold Pack 100's     Box

Marlboro Ultra Lights             Marlboro Silver Pack                          Box

Marlboro Ultra Lights 100's    Marlboro Silver Pack 100's                 Box

PMDF New Packaging Timelines

Product Delivery

• PMDF products featuring revised packaging are estimated to begin delivering to warehouses - June 2010

• A packing specific conversion schedule will be provided at a later date.

• There is no set time limit for warehouses to sell their stock of product with the current packaging to their customers or to retailers.

 PDMF Data Reporting Requirements

• PMDF will provide you with data reporting requirements to reflect the new PMDF packaging.

• We recommend that you send in test files to PMDF Data Reporting during the month of April to ensure that your consumer off take date (COT) will be accurately reported.

 KEY DATES

                        Activity                                                                       Date

• Discuss PMDF packaging changes with

      your PMDF Representative                                        Feb. - Mar. 2010

• Establish a warehouse transition plan

_____________________________________________________________

• Send test files to PMDF Data Reporting                               April 2010

_____________________________________________________________

• Execute your warehouse transition plan

• Begin reporting using the new date                                        April - June 2010

      reporting requirements

_____________________________________________________________

• PMDF products featuring revised                                          May - June 2010

      packaging will begin delivering to

      warehouses, as available

_____________________________________________________________

Transition Plan

To support the transition to the new PMDF packaging, establish a warehouse plan which includes the following:

[ ]   Inform your customers or retail accounts of your plans to update order guides and invoices.

[ ]   Update your inventory management system

[ ]   Update your order guides and distribute to your customers or retail accounts

[ ]   Send test files to PMDF

[ ]   Educate warehouse personnel

[ ]   Consider other areas of impact

Your Keys to Success

[ ]   Implement an effective transition plan

[ ]   Rotate existing inventory when new packaging arrives

[ ]   Do not alter your PMDF cigarette ordering patterns

            We hope this updates you re the changes.  If you have any questions, we suggest you contact your PMDF representative.

CUSTOMS AND BORDER PROTECTION (CBP)

             By now you have heard that CBP is the next Security effort that involves maritime along with the actual protection of physical borders and customs inspections.  The major maritime effort involves the protection against transfer of any items through cargo (mainly container) that could cause damage to the homeland.  This is a global issue with efforts involving many International organizations.

             We were pleased to have Arne Mielken, advisor to OCEAN make a presentation on the progress of Customs/Border Protection (CBP) initiatives.  Arne has been policy advisor since 2005 for Customs and Taxation Affairs for the European Ship Suppliers Organization (OCEAN).  Since 2008 he has been an advisor to ISSA on customs policies and the World Customs Organization (WCO).

             Each country has ownership of its own security effort.  However, there have been and will continue to be meetings of these organizations to coordinate efforts.  Such a meeting was held in Washington, DC on December 8 - 10, 2009.  During that symposium, issues that involve ship suppliers were discussed.

             The U.S. AEO (Authorized Economic Operator) program is called "C-TPAT".  This system will maintain and evaluate the minimum security criteria and certify, validate and revalidate member supply chains (which would include ship suppliers).  The participants in C-TPAT will make an annual self assessment that will include verification of supply chain security processes and conduct self policing or auditing to ensure compliance.

             Many of the security regulations involving the above are aimed at importers.  It is important to note that goods delivered as ship supply in other countries are not imported into the U.S. as they are meant to be consumed on the vessel.

             Self assessment is one of the steps to acquire AEO status.  We are not sure of the benefits of this status.  We are continuing to monitor and investigate the developments that are in the purview of Homeland Security.  We will ask the specific questions as they pertain to ship supply in this new security initiative.

             What we do know is that one of the highlighted subjects at the symposium was a Business Resumption Plan for a port that had undergone an incident that significantly impacted a port or closed it.  The goal of the Resumption Plan is to make certain the borders are secure during time of emergency while ensuring that legitimate travelers and trade to continue to cross without undue delay.  It is about moving goods and people through Ports of Entry during and following disruptive events.  This is where ship supplies could play an important role and it could be particularly important to:

 ·         Receive communications in a timely manner regarding implementation of emergency plans and reduce the impact on your business.

·         To be advised when customs takes an action that impacts the normal operation of a port or could negatively affect the flow of goods.

·         Be actively involved in being a part of the trusted trade and traveler programs.  This is the area that we intend to investigate to advise members on how they can take advantage of an available status that could have benefits in exchange for involvement in a Port Business Resumption Plan.

             It is our intent, as stated above to educate ourselves and members in the developments of CBP and give you the most up to date information that applies to ship suppliers.

             We want to thank Arne Mielken for making the long, long trip from Brussels to give us a complete overview of the global developments and some direction on how we can monitor and digest all the information.

 ISSA REPORT

             Rocky Rocksborough - Smith, ISSA Senior Executive Vice President gave a comprehensive update on ISSA activities.  Highlights included:

• ISSA is flourishing with 1641 member companies located in 550 ports around the world.  And due to Rocky's direction, the Public Relations program has resulted in ISSA being viewed as an equal by other maritime associations including owners and ship managers.

• The Ship Supplier magazine continues to grow - published and sent out 4 times a year as it lands on the desks of all owners and managers with more than 12 vessels in their fleet.  The latest edition - Green ISSA focuses on members building a proper recycling policy into their operations and being aware of removal and disposal of waste from ships.

• The ISSA Quality Standard has been reviewed and upgraded with an effective date of January 1, 2011.  The new elements address Environmental operations, procedures and food handling.  Carnival only purchase food from vendors/suppliers that conform to the relevant ISO food safety standards, which have been incorporated into the updated ISSA Standard.

• The new ISSA website was unveiled at the Istanbul Convention last year.  It had an extensive makeover.  You can see for yourself - go to www.shipsupply.org.

• ISSA has enlisted the aid and services of Arne Mielken to lobby and keep ISSA informed of all developments in the newest security efforts put forth by the Customs/Border Patrol initiative.  This is the next security push that is not focused primarily on ports but includes them.  There is a more complete report from the presentation given by Arne at the COMPASS meeting.

• ISPS Code.  Some port operators are sheltering behind their interpretation of the code to deny port and terminal access citing security concerns.  Some port operators are using the ISPS code as a money maker, charging for accompanying "security officers" to gain access to ships.

             ISSA is working this problem by garnering support from other organizations to      help intervene at IMO level and have port operators abide by the legislation that     specifically cites ship to shore and shore to ship interface.

             Intertanko (the independent tanker operators' trade association) is supporting this             effort because they are finding their members are being charged $500 for a 500             yard minibus ride accompanied by a "security officer". If anyone experiences this    type of behavior or policy, please notify Spencer Eade, ISSA Secretary in             London.

• Future ISSA Conventions/Meetings

             ISSA has been conducting some regional meetings - Norway, Denmark, Holland, Malta and Cypress and had one planned for Ghana, Africa which has been   postponed to 2011.

             Regional meetings may well begin to replace the ISSA Convention.  This is under future consideration.  However - the ISSA Convention is scheduled to continue as           follows:

                         2010 - Dubai UAE  - November 20 - 21
                        2011 - Copenhagen - Oslo ferry in May
                        2012 - Cadiz, Spain
                        2013 - London, UK on a cruise ship in the Pool of London

• Collections Help - Recently, Bruce Haley (ISSA lawyer) has been engaged to help members recover sums due - one a recovery of 70,000 Euros for a member in Cameroon by skillfully following the progress of the delinquent ship and arresting it in Singapore where it stopped briefly to bunker.  An option for you to consider re collections is to call ISSA's London office, sooner rather than later.

            Rocky Concluded:

             It's my hope that you can see the value of ISSA membership and continue to         support our International and National efforts.

 SHIPSERV & SHIP SUPPLIER ISSUES

           In mid-May, Mr. Matti Kokkala, Executive Vice President of ISSA sent a letter to Mr. Paul Ostergaard, Chief Executive of ShipServ in Copenhagen in which he listed a number of concerns about certain aspects of ShipServ's operations and dynamics between ISSA and ShipServ.

             These concerns included:

 ·         Aggressive marketing tactics being employed by telesales employees

·         Misunderstanding of the discount being offered by ShipServ for entry into ShipServ pages and not for trading service subscriptions

·         The high level of the trading service subscription - $1,250 - could it be discounted to ISSA members?

·         Acquisition of Mariner's Annual - could it be a conflict of interest due to the relationship with ISSA - i.e. adding a numbering system to Mariner's Annual

             These issues were discussed at length at the COMPASS Meeting.  An additional issue of ShipServ's access to proprietary trade information was also raised.

             As a result of the discussion, letters were written and delivered to ISSA from NAMS Representative Alan Kotz and CSSA Representative Rocky Rocksborough - Smith outing the concerns expressed above and requesting a reply re any action or explanation of positions that result from discussions between ISSA and ShipServ.  We will keep you informed of any further developments.     

 COMPASS Accompanying Persons Tour

           The purpose of the tour is to give the accompanying persons a taste of the surroundings of our meeting, a look at the culture and attractions that they otherwise might not know about and a very delicious lunch at an outstanding restaurant.

             This year the group met for breakfast, sponsored by Cambridge Agencies.  Our tour guide told them some of what they would see on the tour, then off on the tour bus.

             The group traveled out to the uplands of the island where they enjoyed spectacular views and toured the Lavender Hill Farm, where various varieties of Lavender are grown and provided to the distribution of many various lavender products.  Then off to more viewing stops and lunch at the General Store in H'aile Mali, one of the 5 best restaurants on the island.  The tour then proceeded to the North Shore to view the rousing waves and the windsurfers flying through the air, more viewing points and then a return to the hotel to enjoy the afternoon with their family.

 COMPASS Golf Tournament

           On a warm windy day in Kaanapali, 10 golfers gave up their day at the beach to compete in the annual COMPASS golf tournament on the Royal Course at the Kaanapali Golf Club.  This course has hosted the Wendy's Senior Skins game for the past few years with pros Jack Nicklaus, Loren Roberts, Arnold Palmer and Fred Couples participating.  On this day, youth was served.  The group of Alex Zeagman, Austin Zeagman (Seagulf) Neil Baker (Dial Ltd. Speaker) and Dennis Tamamoto (Aala Ship Supply) shot a sizzling 63.  Left in the dust were the groups of Bob Zeagman, Brett Crouthamel (Harbor Ship) and Craig Bishop (Clipper Ship) at 75 and Bill and Gay Robinson NAMS HQ and Greg Patrick (Trionics) - 76.

             We had a great day to play our scramble format - allowing all to enjoy a sociable and competitive round.

 Sponsorships for the Meeting

           Most of you are aware of the higher level of expense when a meeting is held in Hawaii.  We had a tremendous amount of support from our sponsors this year.  We have instituted levels of sponsorships - Platinum, Gold and Silver to recognize the levels of support.  No matter the level, we appreciate all our sponsors' generous contribution to the fiscal support of our meeting.

             These are our sponsors for the 2010 COMPASS Meeting:

Platinum

             Philip Morris Duty Free, through their contribution in sponsoring each one of our events at the meeting.

 Gold

             Wuensch Sales sponsored the Hospitality Suite, Morning Refreshments and the Welcome Reception.

 Gold

             Cambridge Agencies & Poseidon Vancouver sponsored the Accompanying Persons Breakfast and the Welcome Reception.

 Gold

             Elaborate Communications sponsored the Accompanying Persons Tour and the Welcome Reception.

 Silver

             These companies, plus our Platinum and Gold Sponsors, sponsored the Welcome Reception on Thursday night.

                        Dial, Ltd.
                        Henry Company - Diplomatic Marine Division
                        Kerger marine Electric
                        Trionics
                        Van Steen Marine Supply (VMS)
                        Viking Fasteners
                        World Wide Metric

             We gratefully thank all our sponsors for your continuing support of our Annual COMPASS Meeting and your interest in NAMS and CSSA throughout the years.

 Election of Officers and Directors

             At the Annual Meeting of Members, the following members were elected:

 Officers for a term of 1 year

             President - Max Goldberg - Kamil Ship Supply
            Vice President - Peter Gronbeck- Atlantic Cordage
            Secretary - Nils Gjesteby - Klausen Gestby
            Treasurer - Don Rush - Delaware Ship Supply

 Directors for a term of 3 years

             Nils Gjesteby - Klausen Gestby
            Jack Peltz - Peltz Marine
            Bobby Wuensch - Wuensch Sales

 NEW MEMBER

             We are pleased to welcome SIKA USA, Inc. as a new Associate Member of NAMS.  SIKA's specialty is measurement, control and calibration.  They will be stocking gauges, thermometers and calibrators that suppliers will wait to buy directly.  SIKA is a subsidiary of Dr. Siebert & Kuhn GmbH.

 Contact information:

             Andy Buchanan, President
            SIKA USA, Inc.
            1500 S. Sylvania Avenue
            Suite 109
            Sturtevant, WI 53177
            Ph:  (262) 886-2695
            Fax: (262) 321-0604
            Email:  ab@sika-usa.com
            Web:  www.sika-usa.com