Issue 434, March 22, 2004

Dear Valued Customers,

Over the past two months, there has been a very significant spike in the demand for air freight capacity from Asia to North America. Demand in the market during March has been particularly strong. Consequently, heavy backlogs are building in the major export markets to Europe and the United States from Asia. Carriers have imposed increases in air freight rates for shipments moved from Asia to both North America and Europe.

Hong Kong and Shanghai are absorbing most of the excess capacity in the market, causing tightness in the other origins. Normally these two markets have a strong month in March, but the space situation at the moment is more critical than last year's peak season.

DHL Danzas Air & Ocean will therefore increase air freight rates effective March 19th by the following amounts:

Origin	United States	Europe
Cambodia (PNH)	15%	15%
China (PEK)	-	25%
China (SHA)	15%	10%
Hong Kong (HKG)	10%	1 HKD/kg
Indonesia (JKT)	15%	15%
Philippines (MNL)	15%	-
Taiwan (TPE)	10%	10%
Thailand (BKK)	15%	15%
Vietnam (SGN)	20%	20%

DHL Danzas Air & Ocean will continue to work with our carrier partners to mitigate the full effects of the increases they are imposing on us. We will monitor market conditions closely, and will withdraw this TRA as soon as carriers reduce rates as this spike in demand drops back to normal levels. Rest assured that we will give you notification as soon as there is relief in the market. Your ongoing support is appreciated!

 
Reg Kenney
Vice President, Marketing and Sales, North America

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.