As previously discussed in our April What’s New letter, efforts to modernize Guam's port facilities have been underway over the past few years. As we informed you before, the Port Authority of Guam’s (PAG) request(s) for tariff increases have been approved by the Guam Public Utilities Commission, resulting in the following changes:

• PAG had previously been authorized to implement a facility maintenance fee of $25 for each bill of lading. (This surcharge applies to inbound and outbound cargo consigned to or transshipping over the Port of Guam terminal facility effective May 16).

• PAG had previously been awarded a 3.4% increase in cargo handling charges (including labor charge) effective February 1, 2010.

PAG has now been awarded a change in the above increase- the $25 charge will now apply per container, rather than per Bill of Lading. This change is effective with sailings on or after July 11, 2010

As a result of the above, effective May 16, 2010 a $25 per bill of lading facility maintenance fee was implemented for Guam, CNMI, Palau, FSM and the Marshall Islands. Accordingly, at that time our full containerload rates increased $25 per containerload, and our less than containerload rates out of Oakland, Seattle and Honolulu included a $.03 (3 cent) increase in wharfage as a pass through of cost. These changes were effective with sailings on or after May 16, 2010.

Because of the additional increases noted above, our wharfage charges out of the Southern California area will be increased 3 cents ($.03) per cubic foot on our less than containerload cubic foot charge , effective with sailings on or after July 11. (We had absorbed previous increases in Southern California which we are now passing through for freight sailing out of the ports in Southern California) . Our wharfage charges in Oakland, Seattle and Hawaii will remain the same.

Our full containerload rates will increase at actual costs- the $25 we previously announced .

As you know, PAG is raising these wharfages to pay for the costs of improving the port. These improvements are necessary to enable the port to efficiently handle the increases in volume due to the relocation of many of the military functions currently handled at our USA military base in Okinawa, which is being closed. We apologize for any inconvenience these changes in wharfage rates may cause you.

Sincerely,

Brad Dechter

President

DGX

DHX- Dependable Hawaiian Express