Customer Advisories and Announcements

Notice regarding Tianjin Port Explosion

September 22, 2015

Dear Valued Customer,

As you are aware, on 12 August 2015, there was a massive explosion in the dangerous chemicals warehouse of Ruihai International Logistics Co., Ltd located in Tianjin Port Free Trade Area (hereinafter referred to as "the Incident"). The Incident caused significant damage to the site and the surrounding areas, including damage to infrastructure.

As a result of the Incident, some of the cargo in our company's storage was also affected to varying degrees – some cargo suffered damage whilst others faced delays and difficulties in being transported. The transportation of some cargo has also been frustrated. Presently, we are working with all relevant parties to investigate the extent of damage caused to affected cargo. However, as access to the site is restricted and/or prohibited, we do not currently have the full details of the damage caused to the cargo. Therefore, we are not in a position to provide details of the condition of your cargo and/or any indication or intention as to the further performance of the transportation contracts at this stage. In the meantime, we believe that this Incident, at least from our company's perspective, was unpreventable and beyond our control. As such, we consider the Incident to be a force majeure event. To this end, we ask for your understanding. We also strongly hope that the relevant Government authorities will be able to identify the cause of the Incident and responsible parties as soon as possible.

In light of the above, we express our deep regret if your cargo was damaged or affected by the Incident. However, for the avoidance of doubt, our company's position is that that we are not responsible for the damage caused by the Incident.

Going forward, we will continue with our best efforts to restore and resume usual services as soon as possible. At the same time, we are working hard to gather all relevant information regarding the damage caused by the Incident and we will provide updates to you as necessary. We ask for your understanding and forbearance during this time.

Kawasaki Kisen Kaisha Ltd