1. The per barrel of oil market price now exceeds (USD) 100.00
2. Lower U.S. Dollar exchange rates compared to other major currencies.

Various export and domestic service providers have announced fuel surcharge & general rate increases as follows:

• Effective 17th March 2008 exporting airlines from the USA will increase FSC to (USD) 0.85 per kilo and in some cases higher depending on the ship to destination.

•  USA truckers and drayage companies are also increasing their FSC.

• Effective 24th March exporting LCL ocean operators from the USA will increase BAF between 6.00 and 8.00 W/M to major Asia, India and Middle East destinations.

• Effective 15th March exporting FCL ocean operators from the USA will implement GRI yet to be determined.

Air and ocean import service providers to the USA operates with varying levels of FSC / BAF that is affected by origin location and the U.S. Dollar exchange rates with the origin currency. Import related FSC / BAF fluctuates and are billed forward as a true pass through cost. 

Fuel surcharge and general increases are outside of the direct control of Kamino International. The GRI, FSC & BAF market conditions as described above will unfortunately need to be accounted for in future billing statements.

It is expected that oil, fuel and market fuel price indexes will continue to increase in the coming months. It is possible that service providers will increase their fuel surcharges again.

Kamino International will do all possible to minimize the additional expense.

Thank you for your understanding and cooperation.