The carrier members of the Transpacific Stabilization Agreement (TSA), serving the East Asia/USA
trade lane have announced they will increase Bunker Adjustment Factors (BAF) and Inland Fuel Surcharges (IFC) for
the month of May 2008.  The TSA Carriers have also filed general rate increases (GRIs) in their tariffs to take
effect as of May 1, 2008 for cargo rated on a per container (PC) basis.

General Rate Increase (GRI): effective May 1, 2008

1.  Also applies to Group 4 Points in US Western States
2.  GRI amounts for less than container load (LCL) and other rate basis may vary from carrier to carrier.

Bunker Adjustment Factors (BAF) effective from May 1 thru 31, 2008 will increase to US$ 796 per 20ft ctr, US$ 995
per 40ft ctr, US$ 1120 per 40ft hi-cube ctr, US$ 1260 per 45ft ctr, and US$ 22 per WM. The Inland Fuel Charge (IFC)
for May 2008 will increase to US$ 353 per ctr for MLB and IPI shipments moving via rail, and to US$ 102 per ctr for
truck transport to Group 4 points in California, Oregon and Washington, and for East Coast local store-door truck
moves.  The Vietnam Destination Fee of VND 300,000 per bill of lading will also take effect May 1, 2008.

The 15 members of the TSA are American President Lines, CSCL, CMA-CGM, COSCO Container Lines, Evergreen
Marine, Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line, Mediterranean
Shipping, Mitsui O.S.K. Lines, NYK Line, OOCL, Yang Ming Marine, and Zim Integrated Shipping
Services.  Visit www.tsacarriers.org for
additional information.

The Port of Los Angeles and the Port of Long Beach continue to move forward with the approval
processes for their comprehensive Clean Trucks Program, but with one key difference in their programs. The program approved by
the Port of Los Angles on March 20,, 2008 also includes a provision requiring all drayage concessionaires (truckers)
to commit to using employee drivers for port drayage – effectively banning the truck owner-operators from the
port.  The Port of Long Beach, which approved its program in February, chose not to include this provision,
citing the possibility of legal challenges from trucking associations and others, which could block implementation
of the program.

The Port of Los Angeles and the Port of Long Beach first considered the Clean Trucks Program in 2007, and have
already taken several key steps to implement it.  The program is a part of the ports’ Clean Air Action
Plan, which proposes hundreds of millions of dollars in investments by the ports, the local air district, the
state, and port-related industry to cut pollution from port-related sources by at least 47 percent within the next
five years. 

Both ports will implement new a Clean Truck Fee of US$ 35 per TEU on all loaded containers moving in and out of the ports by
truck starting October 1, 2008.  Programs approved by both ports include a progressive three-step ban on older
“dirty” trucks.  To ensure compliance with the program all trucks are required to be registered
with the ports and to be fitted with radio frequency identification devices (RFID) by June 30, 2008.  Moreover,
only Licensed Motor Carriers (LMC) which enter into drayage concession agreements with the ports will be allowed to
work in the ports.

The key difference in the Clean Trucks programs approved by the ports is the controversial provision approved by
the Port of Los Angeles that would require all drayage concessionaires (truckers) to use employee drivers for port
drayage. According to Geraldine Knatz, executive director of the Port of Los Angeles: “An asset-based drayage
system with a more stable work force will provide more safety, concessionaire accountability and certainty that our
port will only have to fund the turnover of our fleet this one time and not again in seven to 10 years from
now.”  Long Beach’s program would maintain the current drayage system by allowing drayage
concessionaires to both employees and independent contract drivers. The American Trucking Association has threatened to bring suit against the Port of Los
Angeles, and has asked the Federal Maritime Commission to move to block both ports’ programs before they are
implemented.  The ATA claims the concession agreement and employee-only requirements are illegal and in
violation federal law.

On February 14, 2008, a new discussion agreement was filed with the Federal Maritime Commission named the
Los Angeles/Long Beach Port/Terminal Operator Administration and Implementation Agreement (FMC
Agreement No. 201178).  The Ports of Los Angeles and Long Beach are parties to this agreement along with The West Coast MTO
Agreement, an existing agreement of Marine Terminal Operators.  The new Agreement would authorize the
parties to discuss and agree on implementation and/or administration of their Clean Air Action Programs.  It is
a key part of the coordinated approach to the Clean Trucks programs by the Ports.  This Agreement was to become
effective April 1, 2008, however, the FMC has requested the parties provide additional information, and this will delay its
effective date by at least 45 days.  It is not clear yet if the FMC’s request will lead to further
changes or delays to the Clean Trucks programs.

The Westbound Transpacific Stabilization Agreement (WTSA), FMC Agreement No. 011325, whose member
lines serve the US export trades from the USA to East Asia, have announced a new “Fuel Cost Recovery
Program” and increases to their Bunker Adjustment Factors (BAF) and Inland Fuel Surcharges (IFC) the month of
May.  For the month of May 2008, the BAF will increase to US$ 796 per 20ft ctr, US$ 995 per 40ft/45ft ctr, and
US$ 48 per WM; the Inland Fuel Charge will increase to US$ 353 per ctr for rail and intermodal rail/truck shipments,
and US$ 102 per ctr for local/regional truck shipments.

Under their new fuel cost recovery program, effective July 1, 2008, the WTSA lines will increase bunker surcharges
to $600 per 40ft ctr, or the full BAF formula level in effect at that time, whichever is lower.  Effective
October 1, the BAF will increase to $900 per 40ft ctr, or the full BAF formula level, whichever is lower.  By
January 1, 2009, the WTSA lines say they expect all tariff and contract cargo to move under the full BAF as
published in their FMC tariffs and adjusted monthly according to their surcharge calculation formula.  WTSA Executive Administrator Brian Conrad
stressed that the increase amounts are not a departure from the group’s existing formula, but rather an
attempt to bring BAF levels, where contract terms permit, closer in line with the formula.

WTSA member carriers are American President Lines, COSCO Container Lines, Evergreen Marine Corp., Hanjin
Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line, NYK Line, OOCL
and Yang Ming Marine.   For more info visit www.wtsacarriers.org.

The Trans-Atlantic Conference Agreement (TACA), whose member carriers serve the trade between the
USA and North Europe, United Kingdom and Ireland, Scandinavia and Baltic Ports, announced the current Bunker
Adjustment Factor (BAF) will remain unchanged until at least May 15, 2008.  Details are as follows: BAF
to/from/via US Atlantic/Gulf Coast Ports will be US$ 607 per 20ft ctr, US$ 1214 per 40ft/45ft ctr, US$ 61/WM, and
BAF to/from/via US Pacific Coast Ports will be US$ 911 per 20ft ctr, US$ 1822 per 40ft/45ft ctr, and US$
91/WM.  Currency Adjustment Factors (CAF) for the same period will remain at the current 12 percent.

TACA members are Atlantic Container Line, Maersk Line, Mediterranean Shipping Co., NYK Line,
and OOCL.  Visit www.tacaconf.com for more information.