Region North America - Customer Advisory - Hapag-Lloyd

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July,7 2021

Region North America – Customer Advisory

In order to better inform you of the operational situation within USA and Canada, we would like
to inform you that our Region North America - Operations & Customer Service Advisory notices
are now posted directly to the website in the Offices and Local Information > North America >
USA section. In particular, you can find them at the bottom of the Local Information page.

Those items where status has changed from the previous report are identified by an asterisk
(*)

With the large number of congested ports and ships awaiting berths, please understand
that the dates for arrivals / departures and cut-offs are constantly changing. Please
check our Online Business section regularly for updates on this information.

Highlights
   All of the U.S. and Canada operations continue to run normally with most of our employees
    doing telework. We are ready to service your transportation needs.
   While we continue to have essential staff in our offices handling your documentation needs,
    we are encouraging all customers to:

    -   Use all available digital tools on our website at www.hapag-lloyd.com or on the Hapag-
        Lloyd App (Web bookings, E-Shipping Instructions, Quick Quotes, Navigator, etc.)
    -   Use email for general inquiries (email addresses can be found in the “Offices and Local
        Info” section of our website) and phone calls for urgent matters / escalations only.
    -   Visit terminal websites for the most up to date information.

Terminal Operations:

LAX/LGB Terminal Update:
There are currently 19 ships (+10) at anchor awaiting berths in LAX/LGB as of
Friday, July 2nd. All terminals are extremely congested due to the spike in import
volumes and basis current projections the congestion is expected to last until through
the summer.

Changes of destination (COD's) and container "dig outs" are restricted due to lack
terminal space and customers are urged to continue to expedite the pickup of their
import containers and inform any COD requests at least four working days before the
start of vessel operations. The demand for available labor while improving, still
affects all terminal operations, turnaround time for truckers, inter terminal transfers,
the number of daily appointments available for gate transactions and delays in
July,7 2021

vessels operations.

Hapag-Lloyd is currently facing extreme limited single empty return options and
restricted mainly to dual transactions. Local trucking delays have been considerably
reduced and are expected to continue improving in the upcoming month.

The LAX/LGB rail operations from all terminals continue to deteriorate due lack of rail
capacity and railcars from the UP rail. This is affecting all on/off dock intermodal
moves. Skilled Labor Training ongoing in LA/LB resulting in steady improvements in
availability

Oakland Terminal Update:
Currently there are 18 ships (-8) at anchor or drifting in the San Francisco Bay area
as of July 2nd. The three new shore cranes and berth are now fully operational at
OICT. Massive import volumes combined with labor shortages are the biggest drivers
of continued congestion and vessel operations delays. The Port of Oakland has had
three consecutive months of import gains, setting a new record in May surpassing
over 100,000 TEUs.

Export receiving windows are shrinking from 4 to 3 days in some cases to assist with
volume on terminal. Alternative gate hours continue to have low trucker participation.
Vessels will be delayed in order to decrease terminal dwell, make room for incoming
imports and keep terminals fluid as possible. Yard rehandling and restows on vessels
due to change of rotation and additional empty lift out of LAX/LGB is creating further
delays. All berths remain occupied.

New York Terminal Update:
Berth utilization continues to be high through the first week of July, Terminal yard
utilization has stabilized but expected to increase this week with all NY terminals,
except PNCT, closed on July 5th in observance of the July 4th holiday. Terminal gate
turn times are at acceptable service levels, but expected to increase next week due
to 4 day work week. Select terminals are opening on Saturdays to facilitate increased
import deliveries.

Savannah Terminal Update:
Currently 8 ships at anchor (+4) as of July 2nd. Continue to see delays at berth due
to dredging. Dredging continues in berth 2, moving to berth 8 by the weekend. By
mid-July all dredging at the berths should be complete. The main gates and rail
operations are running fluid. Stacks behind berths 7-8-9 for additional empties is still
in progress and should be complete early October. GPA is investing in new RTG
cranes to increase yard capacity in the same terminal footprint.
Canadian Terminal and Rail Delays Update:

Terminals: Vancouver, Prince Rupert
High yard utilization at all terminals in Vancouver as a result of increased import
volumes. Expected to last well into Q3.
Vessels calling Vancouver are experiencing delays, resulting in increased vessel
July,7 2021

    dwell time. Prince Rupert berth and yard productivity are stable. No delays to vessel
    berthing.

    Rail: Railcar availability is inconsistent due to vessel delays impacting export delivery
    and BC fires

    Terminals: Montreal
    All terminals are experiencing a shortage of labor, resulting in delays to ship
    schedules. This is expect to continue throughout the summer months.

    Intermodal Operations:

    Capacity limitation in certain markets due to import volume spikes and severe drivers’
    shortage. Please find main markets, and estimate lead-time to secure capacity at the
    following link on our website. (Note: Lead time refers to timeframe to secure truck
    power, it is not dwell time):

    https://www.hapag-lloyd.com/en/services-information/operational-
    updates/north-america.html

    Chassis Pools:

    With the recent unprecedented Import volumes, there is currently a historically high
    demand for chassis throughout the USA. This demand has shown to be persistent on
    40ft chassis and intermittent on 20ft chassis. In order to minimize any negative
    impact on supply chains, customers are asked to take immediate steps to reduce
    container and chassis off terminal dwell time. This includes all inland terminals as
    well as port terminals. Without a significant reduction in the dwell times, truckers may
    face serious challenges and delays in securing good order chassis as long as this
    surge in imports continues.

   Minneapolis (USMES) – Constrained on 40’ chassis.
   Chicago (USCHI) – Deficit on 40’ chassis.
   Cincinnati (USCVG) – Constrained on 40’ chassis.
   Louisville (USLUI) – Deficit on 40’ chassis.
   Houston (USHOU) – Constrained on 40’ chassis.
   Detroit (USDET) – Deficit on 40’ chassis.
   Indianapolis (USIND) – Constrained on 40’ chassis
   Denver (USDEN) – Constrained on 40’ chassis.
   New York (USNYC) – Deficit on 40’ chassis.
   Seattle (USSEA) – Constrained on 20’ and deficit on 40’ chassis.
   Tacoma (USTIW) – Deficit on 40’ chassis.
   Los Angeles / Long Beach (USLAX/USLGB) – Deficit on 20’ and 40’ chassis.

    Railway Operations:
July,7 2021

          Please Note: Current average dwell times for Hapag-Lloyd boxes at several terminals
          / ramps. Includes, MH, rail and truck moves.

         New York, NY - Average 5.8 days*
         MMR rail New York – Average 0.8 days
         Long Beach, CA – Average 8.9 days*
         Los Angeles, CA – Average 10.3 days*
         Charleston, SC – Average 6.9 days*
         Savannah, GA – Average 7.1 days*
         Norfolk, VA – Average 5.4 days*
         Kansas City, MO – Average 9.7 days*
         Chicago, IL - Average 8.7 days*
         Memphis, TN – Average 7.9 days*
         Detroit, MI – Average 6.3 days
         Dallas, TX – Average 2.8 days*
         Houston, TX – Average 6.7 days*

             Railway Operations:

             Please Note: Current average dwell times for Hapag-Lloyd boxes at several terminals /
             ramps. Includes, MH, rail and truck moves.
                  New York, NY - Average 5.7 days*
                  MMR Rail New York - Average 1.1 days*
                  Long Beach, CA – Average 7.9 days*
                  Los Angeles, CA – Average 8.1 days*
                  Charleston, SC – Average 6.1 days*
                  Savannah, GA – Average 6.5 days
                  Norfolk, VA – Average 6.8 days
                  Kansas City, MO – Average 11.3 days
                  Chicago, IL - Average 7.1 days
                  Memphis, TN – Average 9.1 days*
                  Detroit, MI – Average 6.3 days*
                  Dallas, TX – Average 4.8 days

          NOTE:

          The below chart contains the RNA Ports and the links to their COVID-19 updates. Can we
          add to this to the HL website for customers to refer to until further notice?

Country     Port     Terminal       Any other Corona virus related information
US          BOS      Conely         https://www.massport.com/
            NYC      GCT Bayonne
                                    https://www.portbreakingwaves.com/port-of-ny-nj-operational-updates-due-to-covid-19/
                     GCT New
                     York           https://www.portbreakingwaves.com/port-of-ny-nj-operational-updates-due-to-covid-19/
                     Maher
                                    https://www.portbreakingwaves.com/port-of-ny-nj-operational-updates-due-to-covid-19/
                     APMT
                                    https://www.portbreakingwaves.com/port-of-ny-nj-operational-updates-due-to-covid-19/
July,7 2021

                      PNCT
                                      https://www.portbreakingwaves.com/port-of-ny-nj-operational-updates-due-to-covid-19/
               PHL    Greenwich       http://www.philaport.com/covid-19/
               BAL    Seagirt         https://mpa.maryland.gov/pages/default.aspx
               ORF    NIT             http://www.portofvirginia.com/wp-content/uploads/2020/03/The-Port-of-Virginia-Planning-
                                      Efforts-for-Addressing-COVID-19.pdf
                      VIT             http://www.portofvirginia.com/wp-content/uploads/2020/03/The-Port-of-Virginia-Planning-
                                      Efforts-for-Addressing-COVID-19.pdf
               ILM    NCSPA           https://ncports.com/covid-19
               CHS    Wando           http://scspa.com/
                      North
                      Charleston      http://scspa.com/
                SAV   GPA             https://gaports.com/covid-19-coronavirus-update/
                JAX   Trapac          https://www.jaxport.com/covid-19/
                PEF   FIT             https://www.porteverglades.net/
                      South Florida
                MIA
                      Ctr. Term.      https://www.miamidade.gov/portmiami/
                      Ports America
                MSY
                      Napoleon        https://www.portnola.com/info/coronavirus-covid-19-information
                      New Orleans
                      Terminal        https://www.portnola.com/info/coronavirus-covid-19-information
                      Barbours Cut
               HOU
                      Terminal        www.porthouston.com/coronavirus
                      Yusen
                LAX                   https://corona-virus.la/
                      Terminal
                      Trapac          https://corona-virus.la/
                      West Basin
                                      https://corona-virus.la/
                      (WBCT)
                LGB   Pier A (SSA)
                                      http://longbeach.gov/health/diseases-and-condition/information-on/coronavirus/
                      ITS
                                      http://longbeach.gov/health/diseases-and-condition/information-on/coronavirus/
                OAK   OICT            https://www.portofoakland.com/port-of-oakland-updates/
                      Trapac          https://www.portofoakland.com/port-of-oakland-updates/
                TIW   WUT             https://www.nwseaportalliance.com/news/3232020/updates-covid-19-response

                      Husky           https://www.nwseaportalliance.com/news/3232020/updates-covid-19-response

                SEA   T18             https://www.nwseaportalliance.com/news/3232020/updates-covid-19-response

                                      CBP: Due to spread of COVID-19, all maritime crew will be remanded to their vessels until
Other                                 further notice.
Restrictions                          CBP will work with carriers on a case-by-case basis on temporary shore leave requests for
                                      such reasons as but not limited to humanitarian, shore side business critical to the safe
                                      operation of the vessel, legal, medical, etc. At this time, crew sign-offs (D-2) will still be
                                      reviewed and granted if the crewmember has direct and continuous travel out of the United
                                      States, the crewmember is not exhibiting symptoms of COVID-19, the crewmember has valid
                                      travel documents, and there is no other restriction on the crewmember’s travel.
July,7 2021

                                It is the position of the USCG and USCBP that if a vessel is classified high-risk for reasons
                                such as its Ports of Call or Crew Change where crew travelled to/from a high risk country, the
                                USCG will issue a ‘Safety COTP order’ restricting any shore leave for the ship’s crew , and
                                USCBP (immigration) will not board the ship to process the crew face to face control, instead
                                they will issue a CBP form I-259 requiring detention of all crew onboard. This will also mean
                                that crew will not be permitted to sign off in New York. In view of the above, NLI will also be
                                guided by their decision and will not board any vessel that is subject to the ‘Safety COTP
                                order’. NLI will work out details regarding transfer of all necessary paperwork and documents
                                for government formalities with the Captain, as well as all other requirements to ensure the safe
                                and efficient turnaround of the vessel.
U.S. Coast
Guard                           https://www.dco.uscg.mil/Portals/9/DCO%20Documents/5p/MSIB/2020/MSIB-06-
                                20_Reporting-Requirements.pdf?ver=2020-03-13-092336-483
                                USCG MSIB 07-20: Novel Coronavirus – Port and Facility Operations

                                https://www.dco.uscg.mil/Portals/9/DCO%20Documents/5p/MSIB/2020/MSIB-08-
                                20_Novel-Coronavirus-Mariner-Credentials.pdf

                                MSIB 09/20 - Novel Coronavirus - Vessel Inspections, Exams, and Documentation
                                Marine Safety Bulletin

                                https://www.dco.uscg.mil/Portals/9/NMC/pdfs/announcements/2020/COVID19_13MAR2020.pdf
                   GCT
CANADA       VAN   VANCOUVER
                                http://www.shipfed.ca/news/5e6f9c8130be3eb
                   DPW
                   FRASER       http://www.shipfed.ca/news/5e6f9c8130be3eb
                   SURREY
                   DPW
                   Centerm
                                http://www.shipfed.ca/news/5e6f9c8130be3eb
                   DPR PRINCE
             PRR   RUPERT
                                http://www.shipfed.ca/news/5e6f9c8130be3eb
             HAL   PSA          http://www.shipfed.ca/news/5e6f9c8130be3eb
                   CERES
                   HALIFAX
                                http://www.shipfed.ca/news/5e6f9c8130be3eb
             MTR   Termont      http://www.shipfed.ca/news/5e6f9c8130be3eb

                   MGT
                                Termont prohibits crews to go offshore due to Covid 19.
                                MGT has no restrictions in force so far. See above links for further information.
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