Update on the Office Clerical Unit (OCU)/International Longshore and Warehouse Union (ILWU) Contract Negotiations

Issue 022, July 26, 2007

The negotiations between the Los Angeles/Long Beach Office Clerical Unit (OCU) of the ILWU and their LA area employers reached an impasse last night, with the parties ceasing discussions for the time being. We are hopeful that the negotiations will resume this morning, Thursday July 27, as they are allegedly close on the major terms and conditions.

In the meantime the port operations are not affected and work continues uninterrupted. We are not recommending any cargo diversions at this stage, but will follow developments closely and keep you advised.

Cas Pouderoyen
Sr. Vice President
Oceanfreight North America