Peak Season Surcharge

Issue 18, May 14, 2008

Over the past months we have been actively involved in negotiating our 2008 Transpacific Eastbound Service Contracts and while trading volumes over the first quarter have been at levels below previous years, the theme of this year’s negotiations from the carriers has been “revenue recovery” in order to stem the tide of losses which carriers have incurred in the Trans-Pacific trade in 2007 and the 1st quarter 2008. Market shipment volumes have been down trading since the end of 2007, and the carriers have shifted capacity from the Trans-Pacific trade to the Asia – Europe trades, where the yields have been significantly higher. As such the capacity of the trade has very much remained in line with the cargo supply, maintaining a tight market with high load factors.

Accordingly the carriers maintain that there will be a peak season this year and have filed the below surcharge into their tariffs effective June 1, 2008. Although we continue to negotiate with the carriers in an attempt to mitigate these surcharges, we have no choice but to also reflect these amounts in our Danmar Line tariff effective June 1, 2008. Future updates will be provided as new details become available.

Rule Name: Trans-Pacific Ocean Freight Peak Season Surcharge

Effective Date: June1, 2008

A Peak Season Charge will be implemented for all cargo moving under Danmar Lines tariff effective June 1, 2008 through October 31, 2008. The quantum will be as follows:

A. Cargoes moving to US West Coast Ports and Intermodal/Mini Land Bridge points via US West Coast:
- USD 320/20'
- USD 400/40'
- USD 450/40'HC
- USD 505/45'

B. Cargoes moving to US East Coast Ports and reverse Intermodal points via US East Coast:
- USD 320/20'
- USD 400/40'
- USD 450/40'HC
- USD 505/45'

If you require additional information or clarification, please contact your local DHL Global Forwarding representative. Your continued support is very much appreciated.

Sincerely,
David Goldberg
Head – Transpacific Ocean Freight