July Fuel Surcharge
July 3, 2008

Dear valued customer,
Crude oil continued to climb thru out June peaking at $142.00 US per barrel mark. Fortunately the trading range had settled in at around $132.00 to $137.00 US per barrel for most of June. Increasing gasoline inventories seem to be pushing the oil companies to increase margins on diesel fuel to replace lost margins on weak gasoline sales.

Even though a US economic recession should be reducing demand for oil, the opposite is happening because of China and other developing countries increased appetite for oil. As the industrialized world comes to grips with high energy costs and increasing worries about inflation and damage to their economies, it is apparent that many experts and world leaders realize the urgent need to stabilize oil prices. We can only hope they are successful and that we will see a retreat in the price per barrel of oil.

We will therefore be holding our fuel surcharge at 34%, effective July 1st, 2008. Many oil analysts expect oil to drop after the July holidays in the U.S.A. This has historically been the case.

We will continue to evaluate the surcharge again at the end of every month. This is a very unpredictable atmosphere to do business, however these measures need to be taken to ensure we remain profitable. Thank -you for your patience and understanding in this matter.
Best regards,

Greg Arndt
Vice-President
Jade Transport Ltd.

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