November Fuel Surcharge
November 1, 2008

Dear valued customer,
Crude oil is trading between $63.00 and $68.00 US per barrel this past week, after peaking over 16 weeks ago at over $145.00 US per barrel. Oil has been fluctuating quite a lot in the past 4 weeks with a definite downward trend. The continuing negative news since I last wrote this letter about a serious recession in the US and now around the world, is definitely effecting oil consumption and therefore lowering demand. This is lowering crude costs as demand drops. However, one shouldn’t be too optimistic vis a vis fuel pricing, as we are still somewhat concerned with the low refining capacity and utilization which is still causing a shortage of refined products, especially distillates in

Western Canada. The situation is quite volatile in Western Canada with many card lock facilities running out of supply these past three weeks due to three Western refineries being shut down. There has been a significant enough drop in the rack prices to warrant a further lowering of our surcharge from 28% to 23% effective November 1st, 2008.

The economic situation in North America will indeed prove challenging for all businesses, including transportation.

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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