Issue 437, April 5, 2004

Dear Valued Customers,

On March 22, we notified you that, due to a significant spike in the demand for air freight capacity from Asia, we would be forced to impose a Temporary Rate Adjustment (TRA) on shipments moving from nine Asian origins to destinations in the US and Europe.

After carefully reviewing the market situation, we are pleased to inform you today that, effective April 7, 2004, we will withdraw the TRA on all shipments from Asia to European destinations. There is relief in sight for the backlog situation as the first quarter concludes, and we have negotiated successfully with our airline partners to re-align pricing to normal levels for this time of year.

Additionally, we will withdraw the TRA on all shipments from Asia to the US with the exception of Hong Kong and Shanghai. Demand for air freight capacity form Hong Kong and Shanghai remain extremely strong. We do not anticipate being able to remove the TRA for these two origin points to the US until after the Easter Holiday (13 April, 2004).

Origin	United States	Status of TRA       to USA: 7 April	Europe	Status of TRA       to Europe: 7 April
Cambodia (PNH)	15%	Widthdrawn	15%	Widthdrawn
China (PEK)	-	Widthdrawn	25%	Widthdrawn
China (SHA)	15%	No Change	10%	Widthdrawn
Hong Kong (HKG)	10%	No Change	1 HKD/kg	Widthdrawn
Indonesia (JKT)	15%	Widthdrawn	15%	Widthdrawn
Philippines (MNL)	15%	Widthdrawn	-	Widthdrawn
Taiwan (TPE)	10%	Widthdrawn	10%	Widthdrawn
Thailand (BKK)	15%	Widthdrawn	15%	Widthdrawn
Vietnam (SGN)	20%	Widthdrawn	20%	Widthdrawn

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.

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.