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“ADDITIONAL ALL-CARGO SERVICE TO CHINA” mentioning the U.S. Dept. of Transportation was published in the House of Representatives section on pages H11444 on Nov. 3, 1999.
The publication is reproduced in full below:
ADDITIONAL ALL-CARGO SERVICE TO CHINA
The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Illinois (Mr. Lipinski) is recognized for 5 minutes.
Mr. LIPINSKI. Mr. Speaker, in April of this year the United States and the People's Republic of China signed a new civil aviation agreement. In addition to doubling the number of scheduled flights between the two countries, the agreement allows one additional carrier from each country to serve the U.S.-China market beginning in the year 2001.
Currently, three U.S. and three Chinese carriers have the authority to serve the U.S.-China market. The Department of Transportation will soon grant an additional U.S. carrier the right to fly directly to China.
China is the largest market in the world, as we all know, and holds great trading potential for the United States.
All-cargo carriers that provide time-sensitive express service play an important role in promoting trade opportunities for U.S. companies large and small. Express all-cargo carriers are able to connect every business and residence in the United States every day to China. Unfortunately, of the three U.S. carriers allowed to fly directly to China, Federal Express is the only all-cargo carrier serving the market. For this reason, United Parcel Service is now applying to the Department of Transportation for the right to fly directly to China.
United Parcel Service has served the nations of Asia since 1988 and already operates an extensive ground network in China. By applying for the right to fly directly to China, United Parcel Service hopes to expand its Chinese service by using United Parcel Service jet aircraft. United Parcel Service would also provide needed competition in the all-
cargo express market.
As the only all-cargo U.S. carrier, Federal Express now enjoys a monopoly advantage in the Chinese market. Allowing another all-cargo carrier like United Parcel Service into the vast China market would provide U.S. consumers and exporters with increased access in competitive service.
More importantly, United Parcel Service would help meet the growing demand for air cargo service. Even with Federal Express in the market, roughly 60 percent of the cargo that is transported between the United States and China is carried on third-country carriers. In other words, foreign carriers benefit the most from the growing trade between the United States and China. This just is not right.
However, if United Parcel Service is allowed to fly directly to China, then a U.S. carrier would be able to benefit from the growing demand for cargo service between the United States and China.
This would, in turn, benefit the U.S. economy and U.S. workers. In fact, a recent study found that for every 40 additional international packages delivered by United Parcel Service each day, a new job is created at United Parcel.
Let me run that by once again. A recent study found that for every 40 additional international packages delivered by United Parcel Service each day, a new American job is created at United Parcel Service.
In summary, Mr. Speaker, I would like to strongly urge the Department of Transportation to grant United Parcel Service the right to serve China. Awarding that right to United Parcel Service will bring competition to the marketplace, provide much needed service in the air cargo market, and provide substantial economic benefits to the United States and its citizens.
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