1 U.S. Export Challenges Presented by: Donna Lemm, Director of Global Client Services

2  Vessel Capacity  Equipment Shortages and Imbalances  Volatility of Export Rates Top Three Export Challenges

3 Source: IANA Rail Intermodal Terminal Directory US Export Capacity Crisis Equipment Shortage Equipment Availability

4 Import/Export Equipment Imbalance Source: Brian Conrad - WTSA

5  Booking 5-8 weeks forward  Bookings cancelled without warning  As of fall of 2009, 1.3M TEU’s, or approx 10% of global world fleet is idle.  As of last week, we understand there are carriers still reducing capacity, with no intention to redeploy until mid-March Source: JOC 1/28/09 Vessel Capacity Shortages

6  General Rate Increases  Accessorial Charges Volatility in Rates WTSA Avg Revenue Index Through November 2009 (excl bunker) January, February, & March 2010 Projected Increases

7  Strong sales  Weak dollar  Bottleneck at ports  Inland struggle for equipment Export Forecast 2010

8 US Exports to Asia Source: PIERS Actual data for 2008 & 2009, Forecast data for Forecast

9  Pricing and contracting  Guaranteed pricing for guaranteed space?  Penalties for no-show?  Simplification of charges  Known exposure  Carrier shift in business model to include balanced trade priorities  Continued work by the exporter in terms of visibility of the supply chain from mill/production to port to destination Changing Our Paradigm

10 Voice of the US Exporter?  FMC  President’s state of the Union Address  Export Promotion Cabinet – direct report to the President  Government Export Strategy to promote U.S. exports  Support 2 million American jobs  Shipping Act of 1984 Sec 2.4 states that one of the purposes of the act is “to promote the growth and development of United States exports through competitive and efficient ocean transportation and by placing a greater reliance on the marketplace.”

11 Will There be Capacity to Carry These U.S. Goods?

12 Q & A Thank You!