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NOTICE TO THE TRADE

Freight rate adjustments

August 23, 2007

Notice to the Trade

Attention Shippers, their Freight Forwarders, and Ocean Transportation Companies:

Subject: Freight rate adjustments

Please be advised that the U.S. Agency for International Development (USAID) will not approve any vessel fixture in which the one way rate is the same as, or equivalent to, the round trip freight rate.

All Title II food aid Charterers should amend their one way rate clause to include the following language:

MARAD will calculate the one way fair and reasonable guideline rate as soon as it is known that vessel is to be scrapped or that vessel's ownership has transferred. Owners agree that the approved freight rate will be reduced to a level not higher than the one way fair and reasonable guideline rate, and if funds have already been paid to the Owners, then a refund will be due Charterers.

Any additional rate adjustment clauses may remain unchanged.

If you have any questions concerning this notice, please contact Denise Scherl at (202) 712-0101 or Anthony Fisher at (202) 712-4261.

This notice is effective immediately.