Date: Tuesday, September 21, 2004

Re:	PEAK SEASON 2004

Dear NASA Member:

It's hard to believe but peak season is once again upon us. We wanted to take the opportunity to let you know about some of the issues facing the industry which could have both immediate an impact on your business as well as lasting repercussions. Currently the most immediate concern is space availability in virtually all tradelanes involving the US. Both NASA and JF Hillebrand continue to negotiate for the appropriate space but it is a constant battle.

The steamship lines have taken dramatic rate increases in some of the more saturated markets, particularly from South America. As we head toward 2005 we expect this trend to continue around the globe. One of the more frustrating aspects of the increase in freight rates is that the lines have not yet reinvested in their customer service centers. This makes the daily challenges faced in logistics even more complex and time consuming.

Another area that continues to cause problems is congestion at US ports. The hardest hit has definitely been LA/Long Beach which has been compounded by another labor issue on the West Coast. Recently a proposal was made that would impose a $20/teu fee on all cargo in and out of LA/Long Beach which would only be refunded if the container was picked-up during off peak hours or if it transited the Alameda Corridor. As this program develops we will make sure you are informed.

The customer service team at JF Hillebrand is dedicated to assisting you with your shipping needs, and your understanding for the challenges they face with the lines is greatly appreciated. Please do not hesitate to contact us with any questions or concerns and best wishes for a successful holiday shipping season.

Best Regards,
NORTH AMERICAN SHIPPERS ASSOCIATION

Judy Mannix
Administrator