Fuel Surcharge Increase Notification

Issue 488, October 6, 2005

Due to the upturn in the price of crude oil over the last few weeks, our carrier partners have notified us that, they will again increase their fuel surcharge to us, in line with their published index notification system. As a result, DHL Danzas Air & Ocean will implement the following fuel surcharge increases, effective October 17, 2005.

The USA Fuel Surcharge (FSC) will apply to all international and domestic shipments. The FSC on international air freight shipments from the USA will increase USD 0.05/kg to USD 0.55/kg, with a USD 5.00 minimum. On import shipments the charge will be the local currency equivalent and subject to specific governmental regulations.

For our Domestic Air Services, Next Day, Second Day, and Three Day Services, the FSC is increasing from USD 0.22/lb to USD 0.24/lb, with the minimum remaining at USD 6.00. The FSC for Domestic Surface shipments will be USD 0.07/lb, with the minimum increasing to USD 6.00 from USD 5.00.

For Canadian international shipments and Transborder exports the Fuel Surcharge will remain at CAD 5.00 minimum and increase from CAD 0.62/kg to CAD 0.67/kg.

As a direct result of hurricanes Katrina and Rita, jet fuel in the southeast region has increased from USD 2.04 per gallon to USD 2.83 per gallon in the last two weeks. Regional carriers servicing Latin America (Lan Chile, Arrow Air, Tampa Airlines, Cielos, and South Winds) have all imposed an additional Fuel Surcharge of USD 0.25/kg effective October 10, 2005. This REGIONAL Fuel Surcharge is TEMPORARY and is on top of the Industry FSC. Therefore, effective October 10, 2005 the FSC on these carriers will be USD 0.75/kg and increase to USD 0.80/kg on October 17, 2005.

Although this is a temporary increase, DHL Danzas Air & Ocean will avoid using these carriers wherever possible. However, lift capacity and availability is somewhat limited to the Latin America region. At this time, we have no choice but to implement this additional Fuel Surcharge.

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

Sincerely,

Brian Lindholm
Executive VP & COO North America
DHL Danzas Air & Ocean