From: David Hickmott [DHickmott@uli-atl.com]

Sent: Wednesday, December 19, 2007 1:04 AM

Cc: David Hickmott; David Hickmott; David Hickmott; David Hickmott

Subject: FW: Market Watch -- Capacity Cuts Causing Shortage of Supply and Overbooking in January/2008

Dear Valued Unique Customers,

Unique Logistics is closely watching the market and speaking with our 15+ ocean carriers on a daily basis. There is an anticipation of a very strong first month in the New Year.. 

This positive indication is largely driven by the pre-holiday/Chinese New Year volume surge, capacity cuts, and as a result, the implementation of the Emergency Fuel Surcharge. 

According to the ocean carrier sources, a large USA retailer booking forecast in the month of January alone will be over +5,000TEUS.  Due to this type of boost in volume, and earlier capacity cuts in the slack winter months, the transpacific market is expecting to pick up.  In other words, space will be extremely tight in January. 

With these facts in mind, we wanted to updated our customers, and to caution our customers of the looming space crisis.

Recent capacity cuts –

· NWA – APL//HMM//MOL’s (ESX) & CMA’s (SAX) AW loop have reduced its capacity by about 13%.  They will also have terminated their Indamex/IDX service in the third week of Jan/2008.

· NWA are also cutting it’s WC capacity by 15%

· EMC//ZIM will cancel the AUX AW joint service on the 15^th/Jan.

· CKYH’s COSCO have cancelled their CLX WC loop ex C. China.  They have also cut 1,000TEU of capacity on their CKYH//AWE2 service calling USEC port including BOS.

TSA carriers have tactically and intelligently been reducing the overall capacity in the Trans-Pacific market during the last 4-6 weeks.  Their logic and reason was due to “they are faced with unprecedented rises in operating costs, particularly fuel”.  However, as we are fully aware, by the ocean carrier controlling the capacity (which was necessary to reflect the drop in load factor from earlier peak season highs), they are also now taking this opportunity to leverage BCOs//NVOs from the imbalance supply//demand and keep rate levels stable while at the same time implementing new surcharges in the form of Emergency Bunker Surcharge and extending Peak Season.

Thank you for your support of Unique Logistics International.  We appreciate and value your business!

Best Regards

David Hickmott - Executive Vice President

ph#404-767-0500 (ext 306)

Mobile# 678-478-6604

Fax# 404-767-3319