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Major Congestion Expected at Asian Ports

April 12, 2010

Please note that ports throughout Asia are currently experiencing major congestion affecting export shipments. Due to the current economic climate, most major carriers have experienced considerable financial hardship, and as a result, have decreased their fleets and therefore, their capacity significantly. As a consequence, they have been unable to meet the current market demand, and while a global issue, this shortage is currently being felt most severely in China and throughout Asia.

Price increases, container and equipment shortages and availability issues, and subsequent delays in transit are becoming the norm, and will likely continue for the foreseeable future. Even with advance booking, the expectation is that containers will be held at port for some time before finding available passage.

U.S. container shortages are also becoming increasingly prevalent with no foreseeable signs of improvement as the peak season for household goods moving approaches. Equipment shortages combined with vessel space constraints are bound to adversely impact the ability to load outbound surface shipments directly onto steamship containers resulting in increased instances of temporary storage at origin. Transit times for ocean shipments will subsequently be adversely affected as well.