General Rate Increase Viracopos (Sao Paulo)

Issue 41, August 15, 2008

Over the last month we have received notifications for Airfreight rate increases from primary Airfreight Carriers serving the North America to Brazil – Viracopos (Sao Paulo). This comes as a result of rising operating costs, mainly connected to trade imbalances. Many Airlines have announced flight cancellations and reduction in services on that particular route.

DHL Global Forwarding remains committed to provide high quality service on this high demand and very challenging Airfreight Tradelane. We have mitigated the capacity shortages by proactively increasing our allocations, clear the backlogs by charter flights and securing additional Blocked Space Agreements (BSA’s) with major carrier servicing this market.

Unfortunately, we are not in a position to absorb these latest Airline increases. In view of the fact that the Airline increases are complicated and each airline uses a different rating methodology, we have decided to pass on a flat General Rate Increase (GRI) to Viracopos effective September 01, 2008 as detailed below:

If you require additional information or clarification, please contact your local DHL Global Forwarding representative. Your continued support and understanding regarding this situation is very much appreciated.

Sincerely,

Brian Lindholm
Executive Vice President and Country Head - USA

Donna Letterio
Country Manager, Canada