Date: Monday, August 17, 2009 Re:  Shipping Alert: Capacity Reductions and GRIs forecasted in September NASA has been alerted that the shipping industry may be passing on General Rate Increases (GRIs) due to shrinking capacity on the Trans-Atlantic Westbound and Argentina Northbound shipping corridors. Trans-Atlantic Westbound The Trans-Atlantic trade has decreased by 5,800 TEU weekly to date and a total reduction of up to 10,000 TEU weekly is still anticipated. Two carriers are pulling out the corridor completely (Star Shipping and China Shipping), and Hamburg Sud, CMA, and the Grand Alliance services are merging or reducing services. Carriers are pushing for a GRI ranging from $400-500 for September; however JF Hillebrand will endeavor to mitigate the costs where possible as well as to push back the effective dates to end of September. Argentina Northbound Hamburg Sud, CSAV, and Alianca are combining services and the shifts will result in a loss of 3,700 TEUs weekly from the Argentina to East coast loops. CSAV and Hapag will both be using MSC’s service strings. The shipping lines are proposing GRIs of $300-$600 going into negotiations and JF Hillebrand will also apply pressure to reduce the amount and timing of the increases.