Issue 454b, October 18, 2004
We regret to advise that the international oil market is placing continued upward pressure on the price of Crude Oil, and its related derivatives. This continues to result in increased costs for jet fuel, heating oil and gasoline worldwide, and oil prices have closed this week at further record highs, now exceeding USD 53 per barrel. There does not appear to be any relief in sight to these continued increases, at least for the short term.

These most recent increases have again caused the Fuel Price Index to move beyond its existing threshold. Consequently, DHL Danzas Air & Ocean is now receiving notification letters from our Airline Partners announcing they are again increasing their Fuel Surcharges, over and above those imposed on October 4th, 2004. The new increases will be effective October 25, 2004.

DHL Danzas Air & Ocean has no option but to pass this increase along. The Fuel Surcharge will apply to all Import, Export and Domestic Shipments. Effectively the Fuel Surcharge on international airfreight shipments will increase from USD 0.30 to USD 0.35/kg, with a USD 5.00 Minimum. For Canadian international shipments, the Fuel Surcharge will increase from CAN 0.40 to CAN 0.46/kg with a CAN 5.00 Minimum.

For our Domestic Air Services, Next Day, Second Day, and Three Day Services, the Fuel Surcharge is increasing from USD 5.00 to USD 6.00 Minimum, and from USD 0.13 to USD 0.16/lb. For Domestic Surface shipments the Minimum is changing from USD 4.00 to USD 5.00 Minimum, or USD 0.04 to USD 0.05/lb.

If you require any additional information or clarification, please contact your local DHL Danzas Air & Ocean representative for further details. Your continued support and understanding concerning this very challenging situation is very much appreciated.

Sincerely,

Brian Lindholm
Executive VP & C.O.O., North America
DHL Danzas Air & Ocean

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.