Issue 372, October 11, 2002
To Our Danzas AEI Intercontinental Customers,

The U.S. West Coast port situation is having a very serious effect on not only the sea freight market and availability of space and equipment, but also the airfreight market. While the ports are now open again, the backlog will take many weeks to clear and many companies are turning to airfreight as a solution.

Airfreight space, particularly on the eastbound transpacific lanes into North America, has been completely booked through October and into November. Danzas AEI Intercontinental has made every effort to protect our valued Customers by contracting as much additional commercial carrier space as possible. We also have regular charter operations from and to Hong Kong, and we will announce additional charter space from other origins very soon. The charter market for freighter aircraft has been extremely volatile, resulting in price increases at a furious pace. All this results in higher costs across the board.

Under the circumstances, we are forced to implement a Temporary Rate Adjustment (TRA) effective Saturday October 12, 2002. The rate adjustment will be applied to all shipments moving from the origins listed below and destined for North America. The TRA will be shown as a separate line item and calculated against the chargeable weight. Please inform your internal audit staff as well as any freight payment companies that process invoices on your behalf. The TRA will be eliminated once the available space situation has returned to normal peak season levels.

Origin   TRA Bangladesh   15% Cambodia   20% China   25% Guam   20% Hong Kong   25% Indonesia   15% Japan   25% Korea   25%

Origin   TRA Malaysia   15% Philippines   25% Singapore   25% Sri Lanka   15% Taiwan   15% Thailand   25% Vietnam   25%

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.