The importance of International Shipping to Humanitarian aid by fdl51604

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									Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid            Harald Hjelle
____________________________________________________________________________

                                                       4336 ord
                                                       OK, HMH




TR815 International Shipping
Harald Hjelle




 The importance of International Shipping to
             Humanitarian aid




Crest Virginie

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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________




                       TABLE OF CONTENTS



     INTRODUCTION


     I. The necessity of a ‘humanitarian intervention’


           A. General principles


           B. The role of international shipping in the humanitarian aid


     II. The economic factors

           A. The qualitative aspects

           B. The quantitative factors


     III. The issues of international shipping in humanitarian aid

           A. The top problems

           B. The issues


     CONCLUSION
     BIBLIOGRAPHY

     APPENDIX




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid            Harald Hjelle
____________________________________________________________________________




    INTRODUCTION


         Humanitarian aid first appeared in the 19th century in order to give assistance to the
         war wounded and to the slaves (World Convention against slavery in 1840). In the
         fifties, this concept has been extended to the right to help, assist and protect the
         population in danger, victims of disasters or wars either in the developed or/and in the
         third countries. In consequence, many non-governmental organisations with a
         humanitarian purpose have been created such as Doctor of the World.
         Unfortunately, the nature of the situation ensures that the business of transporting
         humanitarian aid is highly unpredictable and risky. And finding a way to get food and
         supplies to those who need them requires flexibility, creativity and a quick thinking.
         The organisations have to exercise every possible routing option and need to have a
         close relation with the transporters.
         That is the reason why international shipping plays an important role for the
         humanitarian aid. Only in acute emergency relief situations, like the natural disasters,
         air transport is used, mainly because of the speed. When the initial needs have been
         seen to, then, the ship takes over.
         We will define, in the first part, the ‘humanitarian intervention’ in order to focus on the
         importance of international shipping. That means that we have to underline the legal
         aspect of such an action. In the second part, we will show the reasons why the non-
         governmental organisations choose international shipping. We will analyse the trade
         matrix in terms of quantitative and qualitative factors. Finally, we will give some
         issues of the importance of international shipping to humanitarian aid.




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________




    I. The necessity of a ‘humanitarian intervention’


         In order to understand the importance of international shipping to the humanitarian
         aid, we need to analyse the general principles of the intervention.




         A. General principles



         Humanitarian aid is possible since the development of non-governmental
         organisations (NGO) that are working closely with transporters. Their role is to
         provide goods and supplies to those victims of natural disasters or wars. In
         comparison, some military interventions have taken place in order to protect and
         assist the population in danger. That is the case, for example, with the military forces
         from the United Nations. But we will not deal with this kind of operation since they get
         their own transportation, which makes easier the assistance.

         Before the second war, international law prohibited the ‘intervention’ by any state
         within the territory of another without that state’s consent: international law prohibited
         unilateral intervention in internal wars and intervention even for agreed, urgent
         humanitarian purposes. The UN established a Charter about the humanitarian
         intervention. This prohibits violations of humanitarian law committed by a state
         against its own citizens. Every state is obliged to respond to those violations,
         individually and collectively, by the use of no forcible actions and countermeasures. A
         variety of intergovernmental and nongovernmental organisations (NGOs) may also
         take part in combating such violations especially when a state is not able to respond
         anymore to them. Moreover, the UN recognised the role of the NOGs (resolutions
         43/131 in 1988 and 45/100 in 1990) and can take the right to consult them when it is
         necessary (UN charter, article 71). That means that the NOGs play an important role
         in the humanitarian intervention.

         The international shipping is one of the starting points of such an intervention. In order
         to provide it, the organisations will need to work closely with the shipping companies.
         That is the reason why we are going to see the importance of those companies for the
         humanitarian aid.




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________




         B. The role of international shipping in the humanitarian aid



         We have seen, in the first section, the legal background of the humanitarian
         intervention and the role played by the non-governmental organisations in such an
         action. We will define, now, the role of the international shipping regarding the
         humanitarian aid.

         As we have said earlier, humanitarian aid organisations have to comprise assistance,
         relief and protection operation on a non discriminatory basis to help people in third
         countries, particularly the most vulnerable among them, and as a priority those in
         developing countries, victims of natural disasters, man-made crises, such as wars
         and outbreaks of fighting, or exceptional situations or circumstances comparable to
         natural or man-made disasters. In consequence, international shipping has to get
         humanitarian relief to wherever it is needed in the world. In accordance to the legal
         principles of ‘humanitarian intervention’, it has to act solely on behalf of aid agencies,
         charitable organisations. Then, it has to provide any type of shipping service to these
         organisations committed to providing relief to those in need. That is the reason why
         the international shipping companies involved in the humanitarian aid help the non
         profitable organisations to eliminate many of the difficulties in shipping relief supplies,
         for example delayed deliveries, lost shipments, the high costs of shipping. Moreover,
         any kind of political or economics interests should be involved when a humanitarian
         intervention is necessary. Indeed, the shipping companies could create short or long-
         term contracts with the local organisations in the country which needs assistance but
         do not have to help any kind of guerrilla or political party regarding the policy of non-
         interference in the economic or political affairs of a country. The role of international
         shipping is to ensure that the goods will be accessible to those for whom it is intended
         by all means available and by protecting humanitarian goods but by excluding
         operations with defence implications. Finally, it has to cope with the consequences of
         population movements as refugees caused by natural and man-made disasters and
         assist to repatriation to the country of origin and resettlement there.
          This list is not exhaustive and leads to show how much international shipping is
         important to the humanitarian aid.

         We have seen the role played by the international shipping regarding the respect of
         the UN charter about the humanitarian intervention. We will analyse, in the second
         part, the economic factors of this mode of transport in order to show its importance for
         the humanitarian aid.




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________




    II. The economic factors


         We will divide this analysis in two parts, the qualitative factors and the quantitative
         ones in order to see in details why international shipping is important and so used by
         the non profitable organisations.




         A. The qualitative aspects



         Shipping goods internationally and especially in a humanitarian purpose could be
         risky. One way to reduce export risk to the region is to gather information prior to
         shipment. This includes all the sources and type of information the exporter should
         be aware of when shipping goods to a country, which needs assistance. This includes
         documentation, insurance requirements, customs procedures and so on.
         Correct information made the delivery easier to the port of destination. In many cases,
         shippers have an agent based in the country who is able to maintain control over any
         particular shipment and keep the humanitarian organisation informed of the
         shipment’s progress. Moreover, a precise documentation is a key to minimize the
         risks of cargo delays and lead to correct prior to shipment especially for the
         humanitarian aid. That is the reason why the non-profitable organisations are dealing
         with international shipping instead of using air transport or road transport. The
         communication and information network is established in a way that it makes easier
         the track of the goods until the final destination. A good information network is also a
         useful alternative to inventory. Indeed, goods may need to be stored at the port of
         destination before being sent to the final area. If the humanitarian organisation is well
         informed on the type of consignment, it could manage to know the total demand on
         their stores and the stocks available for the week or a month in order to respond
         correctly to the demand needed.




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________



         International shipping offers secure shipping methods to the ports through shipping
         advisor. They play important role for the humanitarian aid. They are able to commit
         excellent service from the first prompt reply to rate requests, to the last overseas
         communication ensuring problem free arrival at destination. Their access to
         competitive pricing structures coupled with their carefully chosen international agent
         network allow them to offer a wide range of high quality services for the shipping
         needs of the humanitarian aid organisations. Moreover, the shipping advisors are
         committed to lowering the cost of collection and shipping of relief goods (without
         considering the fact that humanitarian aid shipments are exempt from import taxes,
         duties and fees) so that more funds can be used to purchase the supplies desperately
         needed in many parts of the world. Then, they maintain high standards of
         international coordination, constantly updating their network in a way that the
         shipments of humanitarian aid get to those in need in quickly. That is the reason why
         international shipment is so important for the humanitarian aid and is preferred to the
         other modes of transports. Finally, the shipping advisors liase with international
         government offices when required, in order to ensure smooth entry of the
         humanitarian organisation shipments. Additional documentation, when required for
         foreign government approval, is prepared and sent quickly to alleviate additional fees
         at entry ports. They are also able to offer all-risk insurance on shipments, which is
         quite reluctant by some shipping companies especially when shipments have to be
         sent in high-risk countries with political instability. The shippers will then need to
         insure for loss/theft of shipment at lower premiums. In conclusion, the shipping
         advisors are efficient and offer a wide range of secure methods, which attract the non-
         governmental organisations to ship the humanitarian goods via ocean freight. We
         have to add that shipping advisors are used in international shipping via airfreight. As
         we have noticed before, air transport is mainly used when an emergency situation
         occurs and needs to respond quickly almost within 24 hours. That is the reason why
         we only consider the importance of international shipping as sea transport.

         We have seen that international shipping is important for humanitarian aid because it
         offers quality services. We are going to analyse the quantitative factors, which
         underline the importance of international shipping in the humanitarian intervention.




         B. The quantitative factors



         The business of transporting humanitarian aid is quite risky and highly unpredictable.
         Logisticians in the non-profitable organisations often have little or no notice of what
         and how much material they must move, not to mention when and where it is to go.
         That is why an excellent communication network is key to getting supplies to the right
         place at the right moment. As soon as this network is well defined, the transport from
         the point of origin may start. International shipping is important for humanitarian aid
         for different reasons, which imply quantitative factors.
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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________



         First of all, international shipping provides a huge volume loaded and unloaded. Roll
         on/Roll off (Ro/Ro) ships are often used because they contain some nine acres of
         loading space which is the equivalent to the area of almost four major league baseball
         fields combined. These ships are equipped to handle rolling cargo only as medical
         transport vans. So they have a huge loading space and could fit an important volume.
         That is one of the reason why the humanitarian organisations may choose this mode
         of transport as a starting point even if, later, they will need to store the goods and then
         ship them by road, rail for example. In once, they are able to load a huge quantity.
         The military and especially the navy have an important fleet. They sometimes work in
         coordination with humanitarian organisations because they have the vessels available
         in time and have a huge loading space. This is the case for example with the
         American navy who was working in cooperation with the non-profitable organisations
         in the Balkans in 1999. The Maritime Administration also maintains a reserve fleet as,
         for instance, 31 ro/ro vessels. In an other hand, many U.S cargo competing for the
         private sector of defence transportation pledge additional support as part of their
         peacetime agreements with the Defence Department. So under the Voluntary
         Intermodal Sealift Agreement, 35 U.S flag companies operating more than 200 cargo
         ships and ocean-going barges make immediately required capacity available to the
         Defence Department in time of national emergency. And no matter that ports are too
         primitive to accommodate America’s modern cargo because NATO (North Atlantic
         Treaty Organisation) allies in Germany, Greece, and the Netherlands are providing
         the port facilities and helping the transhipment of goods to smaller operators (as
         trucks for example) that provide final delivery. That was the case in Albania and
         Macedonia where more than 400,000 refugees remain after the Balkan offensive in
         1999. In conclusion, cooperation between private and public shipping sector makes
         easier the shipment towards the countries where the humanitarian aid is necessary.
         We can see the importance of international shipping for the humanitarian aid and why
         it is rather preferred to another mode of transport.

         Secondly, international shipping is one of the cheapest modes of transport used. And
         as we have seen earlier, the humanitarian aid is working closely with the shipping
         advisors or some organisations have created their own ‘humanitarian transportation’
         (for example the Rotary Foundation Humanitarian Transportation Grants, World Wide
         Aid Project). These types of organisations help to offset the costs of shipping relief
         supplies anywhere around the world.

         Finally, the development of containerisation and unitisation has been important in
         international shipping including air, road, and rail transport. The means of loading and
         unloading in shipping have been developed towards the containerisation. That is one
         of the reasons why international shipping is used to the humanitarian aid. It is
         possible to ship a huge volume of relief goods even if, later on, it is necessary to
         switch with another mode of transport. And this unitisation makes easier the
         combined transport.

         We have analysed in this section the importance of international shipping in terms of
         quantitative factors. We are going, now, to underline the issues of international
         shipping in the humanitarian aid.
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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________




    III. The issues of international shipping in humanitarian aid


         In order to see the issues of international shipping in the humanitarian aid, we will,
         first, analyse the ‘top problems’, which still remain for the relief agencies related to
         sea transport.




         A. The top problems



         We have seen that international shipping is often the starting point in the relief work.
         Unfortunately, the shipment is not necessarily delivered to the point of destination.
         Most of the time transhipment is needed. Other modes of transports have to be used
         because the goods have to be sent to an area located in the countryside or inland.
         Another reason is that the area is not practicable through the international shipping
         way. This mode of transport is not the only one and combined transport is quite often
         necessary. Moreover, the relief organisations have to coordinate the movements
         through a communication network linking vehicles to their bases. Unfortunately, this
         exchange of information occurs to be extremely difficult (problem of warfare on the
         road, third-world frontiers bureaucracies, the weather, lack of infrastructure, pilferage).
         In conclusion, international shipping is very important to humanitarian aid and should
         be linked closely to the whole logistics network from the shipment of the supplies to
         the delivery at the final destination in order to have a clearly picture of the whole
         logistics process in relief work and the role played by the international shipping. It
         makes understandable the need of a humanitarian aid and the focus on the shipment.

         Another problem is the customs clearance. Indeed, the relief organisations (NGOs)
         that provide most of the firsthand assistance had shipments blocked by customs
         officials. This was the case for France-based Médecins Sans Frontières or Doctors
         without Borders in Albania in 1999. They have to provide relief work to Kosovar
         refugees and other civilians injured or displayed by the war. The story was very
         different for the NATO allies who have their own communications network and its own
         vehicles. Even if international shipping is very important for the humanitarian aid, the
         relief agencies, then, have to clear the customs, which is a question of local control.
         We have seen that the shipping advisors take into account the customs clearance.
         But relief goods are related to an unpredictable transport where such problems still
         occur even when the documentation is complete.




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________



         Shipping relief supplies via sea transport may not be efficient in some cases when it is
         coming from the non-governmental organisations. Indeed, these relief agencies may
         have to maintain political neutrality to operate effectively on both sides of a war zone.
         It could be hard to concentrate only on the shipment of the supplies via cargo. So they
         do welcome the humanitarian aid provided by NATO. They help in bringing equipment
         and supplies to the final destination. Coordination is necessary between those two
         forms of aid and both sides have to work together to supply the population in need by
         means of transport. That is the reason why international shipping demanded by
         NGOs is not always efficient and the relief agencies need to cooperate with a
         governmental organisation as NATO.

         Then, relief organisations report that food in most of the cases is getting correctly to
         the final destination (see appendix 1). Unfortunately, sanitation, medical supplies and
         clean water are now critical issues. International shipping could provide food easily to
         the port of destination but it is much more difficult to ship clean water via sea transport
         and medical supplies particularly when it is necessary to assemble them (for example
         basic hygiene products or surgical equipment). It appears that this kind of equipment
         have to be assembled before being shipped in a logistics centre in a developed
         country. Then, it is important to take a great care of these medical supplies and a
         heavy handling material could be needed. So air carriers might be required instead of
         sea transport.

         Finally, there are plenty of humanitarian organisations that try to find the best solution
         to ship relief supplies. That means that they have to find the best transporters in order
         to get cost reduction, quality control on the goods and so on. As we have seen sea
         transport is one of the most important modes for humanitarian aid. Unfortunately,
         some problems may occur during the shipment because of a lack in the
         communication network along the supply chain of relief goods. That is the reason why
         the non-governmental organisations should create their own ‘humanitarian aid
         transport’ in order to concentrate only on this kind of shipment. It will probably
         underline the importance of using international shipping.

         We focus, in that section, on the remaining problems of shipping relief supplies via
         sea transport. We are going, now, to look at the potential issues to those problems.




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________




         B. The issues



          International shipping is often considered as the starting point in the humanitarian
         aid and combined transport is necessary in order to get the relief supplies to the final
         bases. But the exchange of information could be difficult and makes harder the
         shipment. That is the reason why the non-governmental agencies need a good
         communication network from the first shipment to the final delivery. Through sea
         transport, they will get the first information on the consignment, its size and the
         administrative documentation (customs clearance and so on). This first step makes
         the relief work done on time, at the right place. To improve the information from the
         beginning, the NGOs, international shippers, local transporters need to work together.
         Moreover, the quality of the information about the shipment could ease to prevent the
         demand and forecast it (since many NGOs may have warehouses locally
         implemented). That is why international shipment really needs to be considered, as
         part of the supply chain for the humanitarian aid and everything at that point has to be
         clearly controlled in order to enable a good achievement to the final destination.

          Another alternative is to have international shippers only specialised in relief supplies.
         This is the case of some shipping advisors or some transporters as, for instance,
         Humanitarian Aid Transport (H.A.T) services who are specialised in the transportation
         of relief cargo throughout the world or World Wide Aid Project. All these specialists
         have been created to help offset the costs and difficulties involved in shipping relief
         supplies. They provide and complete all the necessary international paper work.
          Many relief agencies even start to have their own transport section. We can give, as
         examples, the Rotary Foundation Humanitarian Transportation Grants, Link Romania
         who started first with shipping humanitarian aid to Romania in 1990. That
         specialisation enables the NGOs to obtain extremely competitive prices on transport,
         door-to-door service with an insurance program guaranteeing all shipments delivered
         on time and intact. Some NGOs are even committed to improve the contribution that
         transport makes to effective and sustainable development. This is the case of
         TRANSAID Worldwide which is a small British charity organisation trying to develop
         capacity in countries to build long-term solutions in order to reduce the number of
         emergencies. For example, they build a system to track relief supplies from the point
         of order to the time they are delivered (for Save the Children in South Sudan). Either
         the international shippers are specialised in relief aid, or the non-governmental
         agencies create their own transport service, which will improve the level of service in
         providing humanitarian aid.




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________



          We have seen that shipments of medical humanitarian aid are more difficult and
         require more documentation. This leads to show that international shipping is
         important for humanitarian aid but it has to ‘navigate’ through bureaucratic obstacles
         and barriers of some regulations governing relief work shipments. That is the reason
         why non-governmental organisations, local authorities, transporters have to work
         together for the same goal: the humanitarian aid. Moreover, improvements have to be
         done against pilferage of cargo especially during transhipment of the relief supplies.
         NGOs should try to ensure more and more direct distribution from the developed
         countries through sea transport for example from the point of shipment. It seems
         important for international shipping, nowadays and particularly for this type of
         transport, to collaborate closely with logisticians working for the NGOs since sea
         transport in relief operation is part of a logistics process and is mostly the starting
         point. Moreover, the relief organisations should recognize the long-term interests of
         aid transport and many international shippers should see the advantages of the image
         gained by being a shipper of humanitarian relief. This relation could improve the
         efficiency of the shipment of humanitarian supplies.




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________




    CONCLUSION


          International shipping plays an important role for the humanitarian aid. It has to
         respect some legislation about the relief work and the principle of ‘humanitarian
         intervention’. From the economic point of view, sea transport is efficient regarding
         qualitative and quantitative aspects. Unfortunately, a lot of problems in international
         shipping become obstacles to the relief operation especially when we consider this
         mode of transport either as a transit point or as the starting point of the humanitarian
         supply chain. This leads to take it as a first step in the logistics process of
         humanitarian aid. International shipping is not the only transport involved in this
         market and it is difficult to underline the amount of aid needed because of the
         unpredictability of these relief operations. That is the reason why an important
         communication and information network is required and a strong relation between
         international shippers inter and nongovernmental organisations, local transporters
         have to be built. NGOs should develop more and more a humanitarian aid transport
         service within the organisations or should work closely with international shippers
         specialised in this type of aid.
          The market of humanitarian relief is stable as far as volume is concerned but locally
         very precarious mainly because of the gigantic number of aid agencies making all
         their own contracts for transport. It becomes urgent to create more and more direct
         distribution network starting from the developed countries.
           Finally, international shipping is not the only transport involved in the humanitarian
         aid. It is important to consider that we tried to give an overview of the importance of
         this mode in that market. It is difficult to separate international shipping from the other
         modes of transport and to analyse it without any links related to the humanitarian aid
         supply chain.




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid            Harald Hjelle
____________________________________________________________________________




    BIBLIOGRAPHY



                  Literature:



               The logistics of humanitarian aid (Henk Vlaming, 2000)
               Effective collaboration (Sarah Nanchollas, TRANSAID Worldwide, 05/00)
               The goat in the python (McClintock, Andrew, sept 1995)
               Kosovo and the Law of ‘ Humanitarian Intervention’ (ASIL, oct 1999)
               A shipping guide to Russia (Gordon Feller, feb 97)
               Transporting relief (William B. Cassidy, Traffic World, apr 1999)
               The future of European humanitarian aid- the NGO view (NGO VOICE, 1999)
               Help wanted (William B Cassidy, Traffic World, apr 1999)
               Med humanitarian aid shipments Reg (Ludmila Maksimova, 2000)
               In times of crisis, logistics is on the job (Toby B. Gooley, Radnor, sept 1999)
               Logistics without a hiccup (Frank N. Wilner, Traffic World, apr 1999)
               Partnership for Growth (Link Romania, 2001)
               Humanitarian Grants (The Rotary Foundation, 2001)



                  Web-sites:



              www.doctoroftheworld.org
              www.monde-diplomatique.fr
              www.france.diplomatie.fr
              www.theshippingadvisor.com
              www.oneworld.org
              www.transportaid.com
              www.hatransportservices.co.uk
              www.odin.dep.no
              www.redcross.org
              www.shipaid.net




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________




      APPENDIX



         Appendix 1:


                 World food relief through the World Food Program


                 Most important destinations for relief




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Crest Virginie                                          TR815 International shipping
The importance of international shipping to humanitarian aid           Harald Hjelle
____________________________________________________________________________




         APPENDIX 1



                 World food relief through the World Food Program (WFP), in millions of
                  dollars:




                   Countries         Estimated budget World food relief
                                     in million $ (1999) in million $
                   Asia                      460.0                 96.1
                   Africa                    747.8                323.4
                   Latin America             84.6                  41.3
                   Middle East               31.4                   7.3
                   Kosovo                    217.0                 42.5




                 Most important destinations for relief, in millions of dollars:



                Countries                                 Destinations for relief
                                                          in million of $
                North Korea                                               271.3
                Sudan                                                     228.4
                Kosovo                                                    217.0
                Angola                                                    77.9
                Ethiopia                                                  64.8
                Bangladesh                                                58.9
                Nicaragua                                                 50.6




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