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Signals™ Headlines - January 4, 2008

Ports of Long Beach and Los Angeles Approve $35 per TEU Clean Truck Fee

The Ports of Los Angeles and Long Beach have approved a new a Clean Truck Fee of US$35
per TEU on all loaded containers moving in and out of the ports by truck effective June 1, 2008.  This fee will
support the ports’ Clean Trucks Program which will ban all pre-2007 model trucks from the ports by 2012.
 The ban will be phased in starting in October 1, 2008, with a ban on all trucks built before 1989.  By
January 1, 2010, only trucks built after 1993 will be allowed, and by January 1, 2012 all trucks serving the ports
must meet 2007 U.S. Environmental Protection Agency emission
standards. The new tariff rules adopted by both ports will also require trucks to register with the ports and to be
fitted with radio frequency identification devices (RFID) by June 30, 2008, which will provide emission compliance
information and other details.  The truck ban and RFID requirement represent only a portion of the originally
proposed Clean Trucks Program.  In addition to the ban on older trucks, and the new Clean Truck Fee, the plan
also called for sweeping changes to the harbor trucking industry.  These portions of the program are still
under consideration by the Ports.  The Federal Maritime
is also currently reviewing the program for any possible violations of the Shipping Act of 1984.

Emergency Fuel Recovery (EFR) Surcharges Postponed, Cancelled or Reduced

An Emergency Fuel Cost Recovery Surcharge (EFR) that some Carriers serving the trades from East Asia to the USA had
announced in November, including members of the Transpacific Stabilization Agreement (TSA), has now
been postponed, cancelled or reduced by some carriers.  These actions are not across the board and vary widely.
 In many cases, the EFRs are hidden from view because they are filed in confidential service contracts.
However, evidence can be seen in FMC tariffs.  Several Carriers initially filed EFRs in their tariffs to become
effective in late December 2007 to apply on all rates from East Asia origins to US destinations at US$ 240 per 20′
container, US$ 300 per 40′ container, US$ 340 per 40’ hi-cube container and US$ 380 per 45’ container.
 The EFR remains at this level is some Carrier tariffs, including Mediterranean Shipping Company
, but several carriers have now postponed or cancelled their EFRs.  Some NVOCCs have now filed
reduced EFRs based on US destination.  In some tariffs, EFRs for shipments to US Pacific Coast Ports are now
$80 per 20’ container, $100 per 40’ container, $113 per 40’ high cube container, and $127 per
45’ container.  For other US destinations, including inland points and Atlantic & Gulf Ports, some
NVOCCs have filed EFRs of $160 per 20’ container, $200 per 40’container, $225 per 40’ HC
container, and $253 per 45’ container.

TSA Carriers Announce 2008 � 2009 Revenue/Cost Recovery Program

The Transpacific Stabilization Agreement
whose 15 member carriers dominate the container trades from East Asia to the USA, recently
announced a 2008-2009 Revenue/Cost Recovery Program, which includes, along with freight rate increases, modification
of contract periods, and provisions designed to allow carriers to quickly recover costs which are likely to increase
in the coming year.  According to Ronald D. Widdows, TSA Chairman and American President Lines
chief executive, TSA carrier members have “already seen significant carrier redeployments that
reflect the deteriorating economics in the high-cost transpacific market, relative to other trades.”

The program includes a General Rate Increase (GRI) effective May 1, 2008 of US$ 400/40ft container to U.S. West
Coast ports and US$ 600 per 40’ container to all other U.S. destinations.  A Peak Season Surcharge (PSS)
of US$ 400 per 40’ container will apply from June 1, 2008 to at least October 31, 2008.  Floating Bunker
Fuel Surcharges will also be included in all 2008 contracts.  The TSA also intends to modify service contract
timing to extend all 2008-2009 contracts by an additional two months to June 30, 2009.  Finally, the carriers
plan to include provisions in upcoming contracts that will enable them to recover increased trucking costs which may
arise from legislative and/or regulatory changes, such as implementation of the transport worker identification card
(TWIC) and the Clean Trucks tariff recently approved by the Ports of Los Angeles and Long Beach.
 The full plan can be viewed at www.tsacarriers.org
under its news link.

TSA Carriers Reduce Bunker and IFC, Increase Panama Canal Surcharge and CAF

The carrier members of the Transpacific Stabilization Agreement (TSA), serving the East Asia/USA
trade lane have announced reductions to Bunker Adjustment Factors (BAF) and Inland Fuel Surcharges (IFC) for the
month of February 2008.  TSA also announced increases to its Currency Adjustment Factors (CAF) and Panama Canal

Effective February 1 to 29, 2008 IFC will be reduced to US$ 285 per container for MLB and IPI shipments moving via
rail, and to US$ 82 per container 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$ 720 per 20ft container, US$
905 per 40ft container, US$ 1015 per 40ft hi-cube container, US$ 1160 per 45ft container and US$ 20 per WM. 
CAF will be increased from zero to four percent for Japan effective January 1, 2008 to March 31, 2008.  Panama
Canal Surcharges effective May 1, 2008 will be increase to US$ 247 per container, US$ 13 per metric ton, and US$ 5
per cubic meter.

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
Visit www.tsacarriers.org for
additional information.

WTSA Carriers Reduce BAF and IFC, Adjust CAF, Bill of Lading Documentation Fee

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 slight reductions to Bunker Adjustment
Factors (BAF) and Inland Fuel Surcharges (IFC) for the month of February 2008.  WTSA will also implement a Bill
of Lading Documentation Fee of US$ 200 effective February 1, 2008 for B/L changes when cargo is diverted at
shipper’s instructions.  Currency Adjustment Factors (CAF) effective January 1 through March 31, 2008 are as
follows: Japan 0%, Korea 0%, Taiwan 5% (up from 4%) and Singapore 14% (up from 13%).

BAF for February 2008 will be US$ 724 per 20ft container, US$ 905 per 40ft/45ft container, and US$ 44 per WM. 
IFC effective February 2008 will be reduced to US$ 285 per container for rail and intermodal rail/truck shipments,
and US$ 82 per container for local/regional truck shipments.  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.

TACA to Implement Eastbound Freight Increase, Reduces BAF, Maintains CAF

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 a reduction to their
Bunker Adjustment Factor (BAF) effective Dec 16, 2007 thru 15Feb2008.  For this period 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 to/from/via US
Pacific Coast Ports the BAF 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 also announced it has
temporarily suspended the use of its traditional BAF calculation formula, and it will adjust its BAF in the near
future in response to market conditions.

TACA also announced plans to increase Eastbound freight rates effective February 1, 2008.  This increase comes
in response to the increasing Eastbound trade volume, which TACA says are “creating severe demands on vessel
space and, in particular, on container availability for the growing U.S. exports.”  TACA expects
Eastbound cargo volumes to increase in 2008 as evidenced by the strength of Eastbound cargo volumes and the high
level of forward bookings.  The Eastbound Freight Rate Increase, effective: Feb 1, 2008 To/From/Via US
Atlantic/Gulf/Pacific Coast Ports will be US$ 400 per 20ft container, US$ 500 per 40ft/45ft container, and US$
25/WM.  TACA members are Atlantic Container Line, Maersk Line, Mediterranean Shipping Co., NYK Line
and OOCL.  Visit www.tacaconf.com/ for more information.

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Vol. 12 No. 1, January 4, 2008

The information contained herein is obtained from reliable sources.
It is subject to change at any time, however, depending on changes in
laws and regulations. While we continually attempt to monitor this
information, we do not guarantee its accuracy and are not responsible
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