Ro-Ro freight rates have not increased in 2005, however, the oil prices have unexpectedly increased and it is unlikely that it will go down in the near future. Our vessels’ fuel costs have increased by $45.000 for a single trip. We carry 150 units per trip on average for the last 8 months and this means an increase of $300 or € 240 on costs per unit. Average freight rate per unit is € 1,318.12. This means that our costs have increased by %18,2. As of september 10, 2005, we will reflect a portion of this cost to our rates. The increase will be €  125  for complete units and long vehicles, € 95 for semi-trailers. (%50 for one-way). This is known as B.A.F (Bunker adjustment factor) and it is used worldwide to reflect oil price increases to transporters on to the customers. This increase will be invoiced seperately and will be adjusted in the future depending on increase/decrease of the oil prices.

Regards,

Cpt. Cemil Bayülgen

General Manager