Customer Advisories and Announcements

The current master contract between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) will expire at midnight on June-30, 2014. Negotiations for a new labor contract are continuing. Due to the uncertainty of the situation, we would like to offer the below responses to frequently asked questions:

• What is the status of PMA & ILWU negotiations?
• Does "K" Line have a contingency plan in the event of labor unrest?
• Who will provide update on vessels affected by the labor unrest?
• Is "K" Line charging a Congestion Surcharge?
• When will PCS come into effect?
• PCS will be applied based on cargo receiving date or cargo arrival date?
• Will "K"Line stop assessing PCS as soon as port labor returns back to work?

Question: What is the status of PMA & ILWU negotiations?
Answer: Status of the negotiations are available in the PMA website http://www.pmanet.org/news-info

Question: Does "K" Line have a contingency plan in the event of labor unrest?
Answer: "K" Line is monitoring the situation closely and formulating possible contingency plans We will provide additional information about the plan as the situation develops.

Question: Who will provide update on vessels affected by the labor unrest?
Answer: "K" Line America (KAM) Customer Service will issue vessel by vessel update to the customers (import & export) with shipments on board the vessels affected by the labor unrest. Such update will be posted in the KAMinternet for public information.

Question: Is "K" Line charging a Congestion Surcharge?
Answer: "K" Line has filed Port Congestion Surcharge (PCS) for both import and export shipments. For details please refer to our customer advisories on May 13, 2014 posted in our website:
Surcharge for Export Container Shipments. Surcharge for Import Container Shipments.

Question: When will PCS come into effect?
Answer: Since the application of PCS is contingent upon the occurrence of congestion caused by "labor unrest," "K" Line will issue a separate notice on the effective date when it is determined that the labor unrest exists and warrants the implementation of such a charge. All notices of implementation and termination of PCS will be posted in our website.

Question: PCS will be applied based on cargo receiving date or cargo arrival date?
Answer: PCS will be applied based on cargo receiving date for both import shipment and export shipment.

Question: Will "K"Line stop assessing PCS as soon as port labor returns back to work?
Answer: It will take time to clear the congestion once labor returns back to work. Therefore, the PCS remain in effect until the related port congestion has been cleared. "K"Line will issue notice to customer regarding the termination of the charge.