The carrier members of the Transpacific
Stabilization Agreement (TSA) have announced implementation of a plan for bunker cost recovery,
which includes an Emergency Fuel Cost Recovery Surcharge.  This new surcharge will apply separately and in
addition to the bunker surcharge and inland fuel charge the TSA members already have on file in their tariffs
– increases to these effective January 1, 2008 are reviewed on page 2 of this issue of
SIGNALS.

TSA Executive Administrator Brian Conrad stated in a press release that TSA members are “seeking
customers’ help in sharing in the exposure caused by this unexpected (fuel) price escalation,” and that
“it’s only fair” to recover these costs.

Kawasaki Kisen Kaisha, LTD. (“K”
Line) has filed a formal complaint with the Federal Maritime Commission alleging Shipping Act violations by two New York-based
entities working in cooperation, which claim to be a not-for-profit shippers’ association.  In its
complaint, “K” Line alleges Fashion
Accessories Shippers Association, Inc. (FASA), and Gemini Shippers Association, Inc. (Gemini)
are not shippers’ associations.  “K” Line claims FASA/Gemini is a profit-oriented
service contract franchise business that requires member shippers to pay “association dues” per shipped
container, and enforces a “No Back Solicitation” clause which blocks carriers from entering into
contracts individually with current and former association members.

In the complaint “K” Line explains it entered into a number of service contracts with FASA/Gemini
between 2001 and 2006. According to these contracts, “K” Line was required to collect “association
dues” from association member shippers, ranging from US$ 40 to US$ 70 per shipped container.
 “K” Line says it was invoiced for these payments on letterhead of the Gemini Shippers Group.  “K”
Line claims these so-called “association dues” are funneled to the principals of FASA/Gemini and do not
benefit the association’s members.

During the 2006-2007 contract season “K” Line entered into individual contracts with an association
member and a former member that provided rates lower than those in its contract with FASA/Gemini.  In response,
FASA/Gemini alleged breach of contract, and asked a contract arbitrator to require “K” Line to pay it
“association dues” it would have received from such so-called “members” had “K”
Line abided by the “No Back Solicitation” clause in the service contract.  “K” Line
claims that FASA/Gemini also advised that it would not negotiate with “K” Line for the 2007-2008
contract season if “K” Line defended itself in this arbitration.

According to Docket 07-01, “K” Line has asked the FMC to find FASA/Gemini in violation of the
Shipping Act on three grounds:  (1) by holding itself out as a shippers’ association when it does not act
in accordance with the Shipping Act, (2) by requiring “association dues” be paid and collected by
“K” Line, and (3) by enforcing the “No Back Solicitation” clause which locks association
members into FASA/Gemini contracts.  “K” Line further requests the FMC to order FASA/Gemini to
cease and desist from acting as a shippers’ association, and to find the arbitration initiated by FASA/Gemini
unlawful.  This Docket has been assigned to FMC Administrative Law Judge
Clay G. Guthridge.  An initial decision in this proceeding shall be issued by Nov 18, 2008.

The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223,
serving the East Asia/USA trade lane announced an extension of peak season surcharges, and increases to Bunker
Adjustment Factors (BAF) and Inland Fuel Surcharges (IFC) for the month of January 2008.  The TSA Carriers also
recently announced a new Emergency Fuel Cost Recovery Surcharge (EFR) – see page 1 of this issue of
SIGNALS for details.

Effective January 1, 2008 the IFC will be increased to US$ 290 per ctr for MLB and IPI shipments moving via rail,
and to US$ 84 per ctr for truck transport to “Group 4” points in California, Oregon and Washington, and
for East Coast local store-door truck moves.  BAF for the same period will be US$ 755 per 20ft ctr, US$ 950 per
40ft ctr, US$ 1065 per 40ft hi-cube ctr, US$ 1220 per 45ft ctr and US$ 21 per WM.  The Peak Season Surcharge
(PSS) of US$ 400 per 40’ ctr has been extended by some TSA members to February 29, 2008.

The group will also welcome new member China Shipping
Container Lines Co. Ltd. (CSCL)  January 1, 2008.  CSCL operates a worldwide fleet of 153
containerships, with an aggregate capacity of nearly 437,000 TEUs, and has an extensive domestic network in
China.  As of January 1, 2008 TSA will have 15 members: 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 Alameda Corridor Charge (ACC) will increase effective January 1, 2008.  This charge is
applied by most carriers serving the ports of Los Angeles and Long Beach to recover charges assessed by the Alameda Corridor Transportation Authority (ACTA) on all cargo
moving via rail through these ports.  To apply these charges, ocean carriers and NVOCCs must file these in
their FMC tariffs.  Many carriers have already filed increases of US$ 19 per 20ft ctr, US$ 38 per 40ft ctr,
standard or high-cube, and US$ 42 per 45ft ctr and all other size containers/or trailers.

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 increases to Bunker Adjustment Factors
(BAF) and Inland Fuel Surcharges (IFC) for the month of January 2008.  The WTSA also plan to raise freight
rates for wastepaper beginning January 1, 2008 and make these rates subject to Bunker Adjustment Factors.

BAF for January 2008 will be US$ 760 per 20ft ctr, US$ 950 per 40ft/45ft ctr, and US$ 46 per WM.  IFC
effective will increase January 1, 2008 to US$ 290/ctr for rail and intermodal rail/truck shipments, and US$ 84/ctr
for local/regional truck shipments.  WTSA member carriers are American President Lines, COSCO Container
Lines, Evergreen Marine, 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, announced increases to their Bunker Adjustment Factors (BAF) effective December 16,
2007.  Currency Adjustment Factors (CAF) will remain at the current 12 percent.  The BAF to/from/via US
Atlantic/Gulf Coast Ports will be US$ 752 per 20ft ctr, US$ 1504 per 40ft/45ft ctr, US$ 75/WM, and to/from/via US
Pacific Coast Ports the BAF will be US$ 1128 per 20ft ctr, US$ 2256 per 40ft/45ft ctr, and US$ 113/WM.  TACA
members are Atlantic Container Line, Maersk Line, Mediterranean Shipping Co., NYK Line and
OOCL.  Visit www.tacaconf.com for more
information.