Rolf Altorfer

President & CEO North America

Kuehne + Nagel,

Jersey City, NJ

p. 2

Limitations (i.e. Seafreight)

Possible Consequences

International Trade

Supply & Demand

p. 3

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

Who We Are & What We Do

p. 4

Our Customers

Additional 4,000 smaller customers

p. 5

Our Seafreight Partners

NOL

Evergreen

Yang Ming

APL

Hanjin

OOCL

Cosco

All asset-based steamship lines and carriers:

Maersk/Sealand MaerskHapag-Lloyd, CMAMSCHamburg SudZim

The number of lines has diminished by 40% over the past 10 years due to consolidation of the industry

p. 6

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

p. 7

Market DevelopmentContainer vessels doubled in size during the last decade

Development of Container Vessel Size

1st-2nd Generation

(1968)

3rd - 4th Generation

(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

p. 8

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

p. 9

128

140 142

132 136

110

106

92

81

7270

0

20

40

60

80

100

120

140

160

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

F

2010

F

Millions TEUWorld Container Traffic

p. 10

Asia-Europe-Asia Trade

08-4% 08

-6%

09 J-F-23% 09 J-F

-25%

FCST-0.1

FCST-8%

-30%

-25%

-20%

-15%

-10%

-5%

0%

Westbound Eastbound

TEU’s Volume in Millions

Eastbound: 6M Europe Asia

Westbound: 15M Asia Europe

$3,000

$650

$400

$800

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Westbound Eastbound

Volume Rates

Intra Asia: 34M All Directions

p. 11

Asia-USA-Asia Trade

086%

08-8%

09 J-F-30%

09 J-F-25%

FCST-0.17

FCST-8%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

Westbound Eastbound

Volume

$400

$800

$1,800

$1,200

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Westbound Eastbound

Rates

TEU Volume in Millions

Pacific: Eastbound 22M Asia North America

Pacific: Westbound 6M North America Asia

Atlantic: Eastbound 2M Westbound: 5M

p. 12

Port of Singapore

• 12% of global container capacity is laid up!

• 17-18M TEU capacity

• Approximately 200 ships of all types and sizes

p. 13

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

p. 14

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.