New Standard Security Program

Issue 529, September 26, 2006

Dear Valued Customer,

As a result of increased security threats the Transportation Security Administration (TSA) is engaged in issuing new security directives to the airlines and the forwarders. The anticipated policy is designed to increase the screening and inspection of more of the cargo moving on board passenger aircraft. This new policy and practice is still a work in progress and will not be completed for a few weeks. However, today there is an edict for increased screenings/inspections to be performed for ALL counter to counter (Next Flight Out) shipments. We are anticipating additional directives specifically created for general cargo and specifically forwarder processed cargo. We further anticipate that this new directive will require an increased number of shipments being screened and inspected at the forwarder facility; including Known Shippers already registered.

The TSA is currently working on the new SSP (Standard Security Program) that applies to carriers, express operators, freight forwarders, and other groups moving cargo in the air system. These new programs will become the rule within the next 30 to 60 days with a very short grace period to install and implement the required security process. The required additional security process will have an impact on how we process airfreight for passenger aircraft as well as how a shipper can qualify as a Known Shipper.

Please keep in mind that the TSA is a reactive government group. They are getting tremendous pressure from Congress, the media and the internal government auditing group (GAO). As events happen, and as intelligence becomes available to the TSA, they in turn will react and try to minimize security threats. This is an ever changing process and can quickly and dramatically change with little or no notice.

We shall endeavor to keep you informed as much as we are allowed. We shall also do everything possible to keep all security processes seamless in order that we do not slow down the logistics pipeline.

If you have any questions, please contact your local DHL Global Forwarding sales representative.

Sincerely,

Brian Lindholm
Executive Vice President Operations - North America