APL Announces Individual Tariffs and Charges in Europe Trades

22 August 2008

Dear Valued Customer,

From 17 October 2008, liner shipping conferences in the trades serving Europe will cease to exist.

This change means that container shipping lines must individually create their own tariffs and freight rates as well as other charges including, but not limited to, fuel, currency exchange and terminal handling.

APL is committed to implementing this change in a cohesive and transparent manner, which will also make it easier for customers to do business with us. Key measures will include a reduced number of charges and, wherever possible, the creation of common charges on all trades to and from Europe.

Details of APL’s charges for fuel, currency and terminal handling in Europe are noted below.

In the future, APL will provide regular updates regarding the calculation and determination of its tariffs and charges.

Sincerely,

Detlev Kerber
Vice President
Asia-Europe Trade

Kenneth O’Brien
Director
Trans-Atlantic Trade

David Chan
Vice President
Global Reefer Trade

Bunker Charges
APL’s revised bunker charges for each trade have been calculated to reflect the actual fuel consumption of our fleet, ship size and utilisation levels on individual trades. The corresponding weighted average bunker price will be at the market rate for IFO 380.

APL will review the bunker charge level on a monthly basis. Our new bunker charge will become effective for both the Transatlantic and Asia-Europe trades on 1 October 2008.

APL will provide customers with details of the new bunker charge formula and publish the new charge levels after the monitoring period in August 2008.

Currency Charges
APL currently has three levels for the currency charge in the Transatlantic and Asia-Europe trades. For eastbound voyages, the charge is determined by the destination level, and in the westbound direction it is defined by the origin level.

As of 1 October 2008, APL will introduce a single currency charge, by factoring in all of its actual currency denominations and their respecting weightings into a single formula.

APL will provide customers with details of the new currency charge level after the monitoring period in August 2008.

Terminal Handling Charges (THC)
APL has simplified the applicable terminal charges in Europe with the introduction of a single THC per country, applicable on a per container basis.

The new charges more closely reflect actual costs in the ports APL serves, and will be applied at the same levels for both the Transatlantic and Asia-Europe trades.

In order to further simplify our Bill of Lading rating and billing process, terminal security surcharges, which were previously billed separately, will be included in the new THC structure.

The new THC regime will become effective for both the Transatlantic and Asia-Europe trades on 1 October 2008.

Please see below the table for revised THC levels.

The levels of the charges presented will be periodically reviewed, please refer to our global tariff AP1 at time of shipment.