Labor Issues and Port Congestion in Balboa, Panama

05 January 2007

Dear APL Customer:

We are writing to make you aware of the labor issues and congestion in Panama’s Balboa Port. Over the past several weeks, Balboa has experienced severe labor shortages and this has resulted in delays to vessels being discharged.

If you use APL’s Atlantic-Pacific Express or Panama Andean Express services that call Balboa, your shipments could be subject to delays. Balboa Port is working hard to rectify this situation by engaging additional labor and in turn, APL is working closely with the port to ensure our vessels are discharged as quickly as possible.

We will update you on this situation as soon as we receive additional information.

In the meantime, if you have questions about your shipment or any other issues, please contact your local APL Customer Service Representative.