Avian Flu Response Plan

23 May 2006

Dear APL Customer:

This communication describes the planned response of APL and sister company, APL Logistics, to the threat of an escalation of Avian Flu risks.

APL and APL Logistics believe that Avian Flu continues to be a genuine threat on a global scale and has the potential to cause disruption to our operations, staff, and facilities, as well as those of our partners, vendors, and customers.

Our approach has been guided by the latest advice from international government and health agencies, including the World Health Organization, the U.S. Centers for Disease Control and Prevention, the Singapore Ministry of Health, as well as local agencies in the countries in which we operate.

APL and APL Logistics have jointly created an Avian Flu Steering Committee, which we co-chair and comprised of senior executives, and an Avian Flu Corporate Business Continuity Team (CBCT) to direct policies and activities worldwide.

The CBCT has classified each of our locations by potential risk level, and developed a comprehensive Avian Flu Business Continuity Plan that is currently being tested at more than 14 worldwide offices and facilities. Once tested, it will be formally implemented at all of our facilities starting in July 2006.

This plan has specific actions based on the Avian Flu Alert Phase prescribed by the WHO. Each phase includes actions for prevention and detection of the disease as well as procedures for quarantine and decontamination in the event one of our facilities is directly impacted by Avian Flu. Further, where our terminal facilities may face the existence of birds near or around the facility, our plans include steps to protect our staff and cargo.

The Avian Flu Business Continuity Plan supplements our already established Disaster Recovery Plans (DRPs) for our offices and facilities. Our current DRPs follow two basic themes:

• supporting facility challenges, from simple outages to natural/political disruption,
• supporting staffing challenges, from labor disputes through to health contingencies.

These have been tested, drilled, and tested again.

We have also instituted an employee and vendor education campaign, to alert them to Avian Flu symptoms, and to educate them on simple prevention techniques.

We look forward to sharing with you future changes and information regarding our Avian Flu program. We hope to also benefit from the planning of our customers, partners and vendors.

Sincerely,