Air Freight Peak Season Rate Increase Cancellation

Issue 73, November 20, 2008

We would like to thank you for your on going support of DHL Global Forwarding during these challenging economic times. As a result of the current economic downturn, our carrier partners are not experiencing the usual fourth quarter capacity shortages and are therefore suspending peak season rate increase effective immediately. The one exception to this is eastbound freight from Korea to North America, where demand continues to exceed the available capacity.

The situation varies by trade lane, but we are generally seeing November airfreight demand in the trans-pacific running 5% to 10% behind November 2007. While this trend has precipitated the cancellation of the peak season rate increase, it does not yet translate into excess capacity or a drop in short to medium term airfreight costs. We will continue to monitor these market dynamics and keep our customers informed if there are further changes.

Thank you again and we look forward to remaining your reliable business partner. If you have further questions about this situation, please feel free to contact your DHL Global Forwarding representative for additional details.

Kind Regards,
Gary Schultheis
Sr. Vice President Air Freight Services
North America