Nhava Sheva Port Update

20 August 2010

Dear Valued Customer,

We wish to update you on the situation at Nhava Sheva Port, India and the current developments as a result of the temporary port closure from 7 to 12 August 2010.

Since 12 August 2010, vessels activities have resumed, albeit, gradually. The India’s Navy has been escorting vessels under convoy in and out of the Nhava Sheva and Mumbai Ports. As at 17 August 2010, some 71 and 63 vessels with draft below 12.5 meters were piloted in and out of these ports respectively. Vessels with draft in excess of 12.5 meters draft are, at the moment, still not allowed.

For Nhava Sheva destined cargoes which are already on the water enroute to the port prior to port closure, we were forced to discharge cargoes at Mundra and allow consignees to take delivery from there, when prevailing conditions do not permit entry of vessel for discharging.

The discharge of cargoes at Mundra is permissible under clauses 17 and 18 of the Bill of Lading terms and conditions. Consignees, who are unable to take delivery of cargoes at Mundra and require further assistance to move cargoes from Mundra to Nhava Sheva, can contact our APL India local office for assistance. Additional local charges will apply.

For new Nhava Sheva bookings taken after 16 August 2010, the cargo will be delivered at Nhava Sheva Port in the normal manner subject to exigencies as may be directed by the Indian Port Authorities and the Director-General of Shipping.

Please feel free to contact your local APL Sales or Customer Service representative should you have questions or require further information on this matter.

Yours Sincerely,