Rolf Altorfer President & CEO North America Kuehne + Nagel, Jersey City, NJ

International Trade Supply & Demand Limitations (i.e. Seafreight) Possible Consequences

Who We Are & What We Do Non-asset based company More than 830 offices worldwide, 85 in the US One of the largest global logistics providers Seafreight, airfreight, contract logistics and supply chain services Competitors: DHL, Deutsche Post, Expeditoors, Panalpina, Nippon Express, Maersk Logistics

Our Customers Additional 4,000 smaller customers

Our Seafreight Partners All asset-based steamship lines and carriers: NOL Evergreen Yang Ming APL Hanjin OOCL Cosco Maersk/Sealand Maersk Hapag-Lloyd, CMA MSC Hamburg Sud Zim The number of lines has diminished by 40% over the past 10 years due to consolidation of the industry

MS Emma Maersk – Capacity: 11,000 – 15,000 TEU

Development of Container Vessel Size Market Development Container vessels doubled in size during the last decade Development of Container Vessel Size 1st-2nd Generation (1968) 3rd - 4th (1972) Post-Panmax (1994*) Suezmax (2006) TEU 1.000 – 2.000 3.000 – 4.700 4.700 – 9.000 ~ 12.000 – 14.500 Draft 10 – 11,5 m 12,5 m 13,5 -14,5 m 15,5 m Width 28 m 32 m 39 - 43 m 57 m * First Post-Panmax already in 1988

Glossary TEU: Twenty foot equivalent unit FEU: Forty foot equivalent unit CFR: Cost of goods and freight Seller’s TEUs, seller owns goods to arrival point/port FOB: Free on Board Buyer’s TEUs, buyer owns goods or loaded on ship and pays freight

World Container Traffic Millions TEU

Asia-Europe-Asia Trade Volume Rates TEU’s Volume in Millions Eastbound: 6M Europe Asia Westbound: 15M Asia Europe Intra Asia: 34M All Directions

Asia-USA-Asia Trade TEU Volume in Millions Rates TEU Volume in Millions Pacific: Eastbound 22M Asia North America Pacific: Westbound 6M North America Asia Atlantic: Eastbound 2M Westbound: 5M

Port of Singapore 12% of global container capacity is laid up! 17-18M TEU capacity Approximately 200 ships of all types and sizes

Load factors: insufficient levels Supply & Demand potentially ineffective under certain economic conditions Load factors: insufficient levels i.e. Asia/Europe, lay-ups – reduce capacity Imbalance of trade There is a cost for positioning equipment/containers Consolidation of the carrier industry will increase the leverage of carriers to influence price/cost

Higher costs for consumers may result despite of ample carrier capacity (incl. idle) because: Higher base rates from carriers and/or capacity Present rates provide insufficient revenue levels. Carriers may lay up more ships or go out of business Higher inventory, costs of goods due to fewer services and frequencies Customer dissatisfaction, late deliveries may result in loss of business In addition to shipping costs, other incremental costs linked to the supply chain affect goods ultimately reaching the consumer.