APL Italy: Rudder Problem (Update)

8 August 2006

As we communicated last week, an inspection in New Jersey of the chartered container vessel APL Italy has shown problems with the ship’s rudder that will require repairs before it can return to service.  In the meantime, here is an update on the status of your cargo:

• All cargo aboard the APL Italy has been discharged in New Jersey.
• Much of that cargo has been transferred to the APL Malaysia and is en route to final destination ports.
• Remaining cargo will be loaded onto the APL Turquoise this week and transported to final destination ports.
• You may experience a delay of at most two weeks in receipt of your cargo.  We will notify customers when their cargo is available for pick-up. 

The vessel’s owners have declared General Average as a result of the incident.  However, as a special accommodation to our customers, APL will assume responsibility for our customer’s General Average obligations, if any.  APL customers will not be subject to any General Average contribution in this matter.  Once cargo arrives at its final destination port and all normal clearances have been completed, it will be available for pick-up.

We regret the inconvenience to our customers and appreciate your understanding.  If you have questions, please call your Customer Service Representative.