September Fuel Surcharge
September 2, 2008

Dear valued customer,
Crude is at $118.00 US per barrel today, after peaking over 8 weeks ago at over $145.00 US per barrel. Oil was on a downward trend for nearly 7 weeks and many hoped it would continue. The price of crude dropped to nearly $110.00 per barrel at one point, however it has risen again steadily this past week. This is due to Hurricane Gustav heading towards

the oil and gas rigs in the Gulf of Mexico. The invasion of Georgia by Russia is causing geopolitical tensions and uncertainty, along with Nigeria’s civil war. Balanced against this, are continuing negative stories surrounding the North American economy, and economists who now believe Europe is into a time of little or no economic growth. The financial problems arising from the US sub-prime mortgage crisis have spread across the globe. The financial problems are causing a ripple effect in the economy, along with the consumer, who has adjusted his purchasing decisions to reflect higher energy and food prices. Diesel fuel prices continue to come down slowly as oil companies slowly adjust their rack prices to reflect the new realities. We will therefore be lowering our surcharge from 32% to 29% effective September 1st, 2008.

The sharp curtailment in shipping volumes, combined with high energy prices continues to cause significant financial concerns for many carriers, and has resulted in thousands of carriers in North America going out of business since the start of the year.

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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