Demurrage and Detention

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1 and TAKE CONTROL AND OPTIMIZE YOUR SUPPLY CHAIN An overall transparent, consistent and easy shipping experience. November, 2017

2 : TAKE CONTROL AND OPTIMIZE YOUR SUPPLY CHAIN We at SeaLand want to provide you an improved customer experience. With this in mind, we have now defined the compensation basics of,, and Storage for you to easily understand. By simplifying the structure of the demurrage and detention tariffs and special deals, we want to enable an improvement in the accuracy of the calculations and the invoices of the demurrage, detention and storage compensation. At SeaLand, we put value in our customers who are focused on growing a business. We only want you to have an overall transparent, consistent, and easy shipping experience.

3 Moving forward our setup in USA will consist of two elements; and. This means you will have separate free time and compensation for utilisation of equipment inside () and outside () of terminals or depots. Full container is discharged from vessel Full container is moved outside terminal or depot Empty container is returned You will see these charges specified on your invoices during 2017 as Import and Import. Freetime will commence 0800 the first business day following discharge of the container at an ocean terminal, or arrival of a container at an inland CY (owned or contracted by Carrier). After expiration of free time, equipment remaining on the delivery port, point, or alternate port facility will be assessed demurrage. charges will apply per calendar day including Saturdays, Sundays and holidays. Free Time : Type DRY/NON- OPERATING REEF SPECIAL OPERATING REEF Days Applicable to operating reefer cargo for the commodity meat at Philadelphia, PA, Houston, TX, Charleston, SC, and Savannah, GA: Type OPERATING REEF Days 2

4 Full container is discharged from vessel Full container is moved outside terminal or depot Empty container is returned Charges per Calendar Day after Free Time except as otherwise noted below: DRY SOC REEF Special Days USD USD USD USD Thereafter Thereafter Exceptions to above: APM Terminal in Port Elizabeth New Jersey, PNCT (Port Newark Container Terminal), Global Terminal Jersey City, Maher Newark Terminal, Global Container Terminal, Bayonne, New Jersey and Howland Hook, Staten Island, New York. DRY SOC REEF Special Days USD USD USD USD Thereafter Thereafter

5 Full container is discharged from vessel Full container is moved outside terminal or depot Empty container is returned Charges per calendar day after free-time applicable to operating reefer cargo for the commodity meat at Philadelphia, PA, Houston, TX, Charleston, SC, and Savannah, GA: REEF Days USD Thereafter 275 Notes: The amount of freetime at rail ramps and truck CY's is as per the delivering rail carrier and/or inland CY tariff When the facility is closed for a full working day during the freetime period, the day will not count against the cargo freetime. Partial day closures are considered as a full working day and count towards freetime. In order for the carrier to ensure store door delivery of cargo prior to the expiration of free time the following requirements must be met no later than noon two business days prior to the expiration of free time: (a) All Freight and U.S. Customs releases must be received (b) All Government and Security holds must be removed (c)properly endorsed original bills of lading must be submitted to the carrier when negotiable bills of lading are involved. (d)complete delivery order must be submitted to the carrier (e) Settlement of demurrage charges

6 Notes Continued: For cargo in containers removed from the carrier's terminal or container yard for governmental inspection or quarantine at an off-site location, cargo freetime and demurrage, as applicable, will cease on the day the container is removed from the carrier's terminal or container yard, and equipment free time and detention provisions, otherwise applicable to the equipment, shall commence. Equipment freetime and detention rules shall continue to apply until the empty carrier s equipment is returned to carrier. Any demurrage charges accrued prior to the removal of the cargo from the carrier's terminal or container yard shall be for the account of cargo. In the event that cargo in containers is returned to the carrier's terminal or container yard subsequent to an off-site governmental inspection or quarantine, equipment freetime and detention shall cease, and a new cargo freetime shall commence, the applicable demurrage provisions shall apply thereafter. Any detention charges accrued prior to the return of the cargo to the carrier's terminal or container yard shall be for the account of cargo. Shipments not removed from carrier's terminal within the free time period may, at any time thereafter at the option of the carrier or governmental agency, be placed in public storage at the full risk and expense to the consignee. All demurrage charges which may have accrued prior to removal from carrier's terminal shall be assessed and collected from the consignee. In the event that shipper or its agent instructs carrier to divert and re-consign the shipment to a port or point, or to a consignee other than shown on the original bill of lading, diversion rules and charges shall apply. All demurrage charges which may have accrued prior to such instructions shall be assessed and collected from the party who instructs the carrier. Service contract freetime exceptions to this rule will be calculated based on concurrent calendar days, including Saturdays, Sundays and holidays. Carrier reserves the right to move equipment from the rail ramp to a container yard within the same geographic area at the carrier's discretion. If carrier elects to perform this dray, it will not charge the merchant for such dray. Regardless of whether carrier makes this election, free time shall still be calculated from the first business day after the equipment arrived at the rail ramp. will not be assessed on shipments if incurred due to carrier's error. When shipments are delayed by reason of any government agency requirements, including but not limited to, delays in processing documentation, inspections as required by Customs or any other government or federal agency, or any other issue that may arise beyond the control of the carrier, all accrued demurrage/detention/per-diem charges will for the account of the cargo.

7 Moving forward our setup in USA will consist of two elements; and. This means you will have separate free time and compensation for utilisation of equipment inside () and outside () of terminals or depots. Free time for carrier s equipment shall commence on the day equipment departs from carrier s container yard. Full container is discharged from vessel Full container is moved outside terminal or depot Empty container is returned You will see these charges specified on your invoices during 2017 as Import and Import. Free Time Type DRY/NON- OPERATING REEF SPECIAL OPERATING REEF Days Tariff after free time 20' DRY 40' DRY REEF Special Days USD USD USD USD SD: SD: SD: 13 Thereafter SD: SD: 8 Thereafter CY: CY : CY: 13 Thereafter CY: CY: 9 Thereafter

8 Moving forward our setup in USA will consist of two elements; and. This means you will have separate free time and compensation for utilisation of equipment inside () and outside () of terminals or depots. Free time for carrier s equipment shall commence on the day equipment departs from carrier s container yard. Full container is discharged from vessel Full container is moved outside terminal or depot Empty container is returned Free Time Operating Refrigerated Equipment for the commodity Meat to US CY Ports Savannah / Philadelphia / Charleston and Savannah receive 5 working days freetime. Below are the charges after free time expires : OPERATING REEF Days USD 4 Thereafter 135

9 TRANSPARENCY AND CONSISTENCY IN SHIPPING We champion transparency and consistency for all your business transactions with us. Price Calculation Date or commonly known as PCD is the date from when Maersk Line determines the applicable tariff, contract rate, surcharge, or and charge applied to any given shipment. To date, we have now aligned the Price Calculation Date (PCD) for and with the Price Calculation Date (PCD) for ocean freight. PCD will depend on the specific service that our customers have availed. Here s how to distinguish them: PCD for non-fmc shipments The date when the carrying vessel is scheduled to depart from the Port of Loading. PCD for FMC regulated trades The date when Maersk Line takes possession of the last container listed on the transport document. This affects the and special free time. You will need to negotiate and mutually agree on the specifics before or on the Price Calculation Date. How do you benefit from the Price Calculation Date? You get to have one (1) time negotiation for and and ocean freight. You can review your upcoming shipments free time via Import delivery orders with ease since these are readily available online. You are assured of overall transparent, consistent, and easy shipping experience.

10 YOUR IMPORT INVOICE AT A GLANCE To help you understand the Import invoice better, we have improved the layout and simplified it. One change is that we are adopting Invoice as a simple heading for the document instead of Invoice or Invoice. Applicable new standard products will also reflect as charge items, giving you transparency to details of charges. Another improvement we have done for Non-FMC shipments is to reflect Deal Number on the Import invoice, thus enabling easy tracking of which deal was applied to derive charges. Please note that free time start date and end date will appear only if free time is applicable and quantity is greater than zero. Dates clearly listed Date field blank if zero free days All and invoices Non FMC and invoice FMC and invoice Invoice header no longer includes the product name Product listed in Description Field Service Contract Number listed Deal Number Listed Service Contract Listed No Deal Number listed Change of naming conventions In a move to globally align the naming of our charges, we will introduce and in USA. You may experience receiving different invoice layouts and different names due to updating systems. This is only temporary.

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