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Late Breaking News

TO YOU OUR VALUED CUSTOMER

Your business is very important to us.   We have asked you to be patient and understanding of the delays in moving your freight caused by rail issues beyond our control, and now ask that you take a moment to read the following synopsis of the challenges we have all been facing, and the steps Naca Logistics/Direct Container Line is taking to ensure that your freight reaches its destination timely.  We are here to discuss these service updates with you, and to answer any questions you have. 

Due to unprecedented congestion in the USA Rail network recently, we have had an inordinate number of containers miss their intended vessels at the port.  We have been closely monitoring this situation, and in response made a number of significant adjustments to our schedules, and carrier partners in May. At this stage, however, there is no indication that this situation will improve.  As a result, we have made the following additional changes to our sailing schedules out of the Midwest in efforts to minimize further delays due to this situation.

Bangkok, Thailand

Port Klang, Malaysia

Manila, Philippines

Singapore

Effective Week 28, we will begin routing the following destinations over Seattle on an OOCL service utilizing BNSF.

Shanghai

Effective Week 25, we moved our last receiving day for Shanghai back by one day from Thursday to Wednesday.  This is with OOCL on BNSF.

Australia/New Zealand

Effective Week 24, we moved our last receiving day back by one day. This is with ANZDL on Union Pacific rail service over LAX. The lead-time we have built in should be sufficient.

Taiwan/Hong Kong

Effective Week 25, we instituted twice weekly sailings for both these destinations.  Tuesday's LRD is with Hyundai over Seattle, on BNSF, and Thursday's is over LAX, with OOCL on BNSF.  The lead times built in should be sufficient.

Japan

Since May, we have been moving both of these destinations over Seattle.

Tokyo, Yokohama, Osaka, are with OOCL on BNSF.

Korea

Effective Week 25, we began moving Busan over Seattle with Hyundai on BNSF.  We will continue to evaluate this situation, keep you appraised, and make any necessary adjustments.

We appreciate your support and understanding, and will do all in our power to maintain the integrity of our services despite these challenges, and to continue our international transportation partnership in 2004 and beyond. 

RAIL STATUS UPDATE

The following is the current status of the North America rail network.

The US rail network, is increasingly under stress from unexpected high import volume, and high domestic volume.  Conditions are expected to worsen following the July 4 holiday; conditions in Canada are expected to worsen August - November during peak volume season.

BNSF

The Hobart ramp in Los Angeles (LAS 22) is currently operating at 130% of its design capacity.  The Hobart rail ramp is the busiest in the US, with over 1.2 million lifts per year.  BNSF announced an emergency measure to reduce congestion at its Hobart, CA, rail ramp. Effective Friday, June 18, the ramp stopped accepting international import loads for 24 hours.  BNSF will focus on clearing out the high number of export loads and empties in an effort to reduce the total ramp container inventory.

Introduction of an Allocation System

Effective Monday, June 21, BNSF introduced a new customer requirement to prepare a train space allocation request each day for import loads.  BNSF will restrict the number of import loads each day from each customer in an effort to match shipment demand with rail capacity.  With these changes, BNSF expects to meet increasing import demand, provide more consistent service, and minimize shipment delays. When originally announced, the allocation program was to become effective July 1, however, due to unexpectedly high volume and rapid deterioration of service, BNSF chose to implement the program early.  This system is similar to the process used to moderate in-gate volume during the 2002 West Coast Lock-out.

BNSF Rail Operations

BNSF is operating 312 intermodal trains today; the number of trains later than four hours past published schedule is 56%, worse than normal due to continued high winds and heavy rain throughout Kansas, Oklahoma, and Texas, and a derailment near Birmingham, AL.  Rail ramp congestion continues to be most acute at Memphis, TN, St. Paul, MN, Los Angeles, CA and Chicago-area ramps. BNSF railcar and locomotive availability in Southern California continues to be very tight resulting in train departure delays of up to 24 hours.  Northern California and Seattle operations are normal, BNSF has surplus rail cars.

Union Pacific

Union Pacific rail operating delays in Southern California have worsened from 60 to 72 hours due to locomotive power shortages.  UP rail service is also experiencing in-transit delays up to 24 hours.  UP has not yet announced a space allocation program to moderate volume received.

CSX

CSX intermodal rail service is showing signs of stress due to high volume.  Most CSX rail services are 5 to 10 hours behind published schedule.  Key rail ramps in the Southeast, such as Jacksonville, Nashville, Atlanta and Charlotte are experiencing train discharge delays due to lack of terminal space.