September 13, 2007

We are quickly approaching the peak season for air cargo traffic from Asia. Based on forecasts, airline negotiations, market factors and the season’s projected capacity, we expect to implement peak season surcharges (PSS) September 17, 2007 on shipments to Europe and the Americas from all Asia Pacific origins. We anticipate higher surcharges from Hong Kong and China, while we expect little to no peak surcharges from Australia, New Zealand, India and Japan. In South America, Argentina, Brazil and Chile are facing capacity and volume constraints in excess of the other Americas destinations, which will increase surcharges to these countries.

The projected PSS rates from most AP countries to Europe and the Americas will be USD $0.20 per kilo. For origins in China and Hong Kong, the PSS rates will be $0.50 and $0.40 per kilo respectively. Argentina, Brazil and Chile destinations will be assessed an additional $0.15 per kilo from all origins.

Please refer to the following for the full customer letter and the details of the peak season surcharge.