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Date: Thu, 12 Apr 2018 20:13:17 -0400 (EDT)
From: "OTX Logistics, Inc." <admin@otxusa.com>
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Subject:  April 2018 Updates
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 Content preview:  ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    The US-China "Trade War" - how does it affect you as a US importer? The freight
    industry is currently panicking due to the prospect of a "trade war" between
    the US and China. Especially for US-based importers, the prospect of a sudden
    introduction of additional duties is scary, and we have received a number
    of enquiries from concerned customers. However, the impact of a trade conflict
    is not restricted to US importers. US exporters will eventually also be affected,
    as China is preparing to retaliate by introducing additional duties for imports
    from the US, making it more expensive for Chinese importers to buy US products.
    Even exporters in third party countries that produce components for goods
    manufactured in China will be affected. So, potentially, there could be a
    "domino effect", leading to a downturn in global trade. On the other hand,
    beneficiaries of these developments could be producers in countries other
    than China, as US importers will seek to substitute China imports with imports
    from these countries, as well as US manufacturers that will be more competitive
    due to the higher cost of China imports. Have any additional duties already
    been implemented? Fortunately, only a small number of commodities have so
    far been targeted forAnti-dumpingduties - these have so far focused on steel
    and aluminum products. Importers of these products from China are now facing
    Anti-dumping duties that can even exceed the value of the merchandize imported.
    What additional measures could the administration take? Additional to these
    anti-dumping duties, the administration announced on March 23 that the US
    is intending to propose additional 25% duty increases on certain goods of
    Chinese origin. This would mean that whatever duty is currently in place
   for the respective product class will increase by 25%. (For example: If current
    duty for the respective product is at 0%, it would be increased to 25%, and
    if the current duty is 10%, it would be increased to 35%). It is currently
    not known whether these tariffs will ever actually [...] 
 
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The US-China "Trade War" - how does it affect you as a US importer?
The freight industry is currently panicking due to the prospect of a "trade war"
 between the US and China.
Especially for US-based importers, the prospect of a sudden introduction of additional
duties is scary, and we have received a number of enquiries from concerned customers.
However, the impact of a trade conflict is not restricted to US importers. US exporters
will eventually also be affected, as China is preparing to retaliate by introducing
additional duties for imports from the US, making it more expensive for Chinese 
importers to buy US products. Even exporters in third party countries that produce
components for goods manufactured in China will be affected. So, potentially, there
could be a "domino effect", leading to a downturn in global trade.
On the other hand, beneficiaries of these developments could be producers in countries
other than China, as US importers will seek to substitute China imports with imports
from these countries, as well as US manufacturers that will be more competitive 
due to the higher cost of China imports.
Have any additional duties already been implemented?
Fortunately, only a small number of commodities have so far been targeted forAnti-dumpingduties
- these have so far focused on steel and aluminum products. Importers of these products
from China are now facing Anti-dumping duties that can even exceed the value of 
the merchandize imported.
What additional measures could the administration take?
Additional to these anti-dumping duties, the administration announced on March 23
that the US is intending to propose additional 25% duty increases on certain goods
of Chinese origin. This would mean that whatever duty is currently in place for 
the respective product class will increase by 25%. (For example: If current duty
 for the respective product is at 0%, it would be increased to 25%, and if the current
duty is 10%, it would be increased to 35%).
It is currently not known whether these tariffs will ever actually be implemented
or not. The threat of these additional duties should be looked at as a negotiation
tool that the administration is using to "bring China to the table".
However, even if these tariffs are eventually implemented, they will not take immediate
effect. Instead, the US trade representative will publish a list of targeted goods
within 15 days from March 23, 2018  and will then allow for a 30 days' public comment
period before implementing these changes.
What product classes might be targeted?
The commodities targeted by these additional duty increases include pharmaceutical
products, machinery, automotive components, steel, alloy and aluminum products.
How can OTX help you?
If you would like to check whether a certain commodity is potentially going to be
subject to additional duties, please let us have the HST number and we will check
and revert to you.
We can also provide a detailed list of the products and their HTS codes - this is
available from OTX on request.
Please contact us at  sales@otxusa.com [mailto:sales@otxusa.com].
Why is all this happening?
The US administration' standpoint is that trade barriers for US exports to China
 are much higher than those for Chinese goods being exported to the US. These trade
barriers do not necessarily manifest themselves in the form of duties and tariffs.
According to the US trade representative, US exporters are also being subjected 
to restrictions in the form of "local content" regulations, requirements to form
 joint ventures with local Chinese partners, requirements to share technology with
Chinese partners, and other forms of trade barriers. The US government states that
their objective is to create a fair and level playing field, enabling US exporters
to compete fairly in the market place.
Please contact us at sales@otxusa.com [mailto:sales@otxusa.com] in case there are
any questions we can assist with.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Ocean Import and Export disrupted by trucking shortage
Supply chains to and from North America are being disrupted by two bottleneck situations
that are affecting transit times: A trucking shortage on the East Coast and a chassis
shortage in the Midwest.
Driver shortages, strong consumer demand and new regulations have created trucking
capacity shortages. This has been causing delayed pick-ups and deliveries
at several US ports, including the Port of New York and New Jersey, Charleston,
Jacksonville, Norfolk, Savannah, Chicago, Columbus, Detroit, Memphis
and Houston. The situation has also resulted in significant cost increases.
The challenges that both carriers and NVOs are dealing with are new regulations 
requiring commercial trucks to be equipped with electronic logging devices, severe
winter
weather in specific markets slowing down deliveries and fewer drivers in the market.
Additional to this, we are also facing a chassis shortage affecting ports on the
 US East Coast.
OTX has strong partnerships with various road carriers and has recently added additional
carriers into our vendor mix in order to be able to ensure timely deliveries and
 pick-ups.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Protect Your Cargo!

OTX USA has recently added the following "signature statement" to our outgoing email
messages:

*** Did you know that carrier and freight forwarder liability for loss or damage
 to cargo is limited by US law? ***
For ocean cargo, the limit of liability for loss or damage can be as low as USD 
50 per package (Hague Convention) or USD 500 per container (COGSA).  An ocean container
is considered to be a package for the purposes of assessing liability.  For international
air cargo, the limit of liability is SDR 19 (about USD 26) per kilogram (Montreal
Convention).  For domestic trucking in the US, the limit of liability varies greatly
according to either NMFC freight class or the trucker's terms & conditions.  In 
some cases, the limit of liability can be as low as USD 0.10 per pound (USD 0.22
 per kilogram).  The best way to protect the value of your cargo is through the 
use of cargo insurance.  You may secure your own cargo insurance policy, or OTX 
Logistics can provide coverage on a per shipment basis under our existing policies.
 Ask your OTX representative for more details.
The purpose of this statement is to help increase awareness of the necessity to 
protect the value of our clients' cargo.   Just as each mode of transport has its
own inherent risks, each mode of transport also has its own limitations of legal
 liability on the part of the carrier(s).  Some modes, such as air cargo and expedited
trucking, allow for the declaration of a "value for carriage" on the bill of lading.
 This will offer coverage, at an additional cost, for loss or damage only while 
in the care of the carrier who issued the bill of lading.  Cargo insurance will 
cover the shipment from door to door, and usually for a number of days after delivery
at destination.
All too often, a shipper or consignee will learn only after filing a claim that 
the amount for which a carrier  is legally liable will not fully compensate them
 for the amount of their loss.  As mentioned in the signature statement, the best
way to protect the value of your cargo is through the use of cargo insurance.

How to protect the value of cargo should be a part of every conversation on the 
booking of a new shipment.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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y:Georgia,Times New Roman,Times,serif;"><span style=3D"text-decoration:unde=
rline;"><b>The US-China "Trade War" - how does it affect you as a US import=
er?</b></span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;orphans:auto;widows=
:auto;text-align:start;"><span style=3D"color:black;">&nbsp;</span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;orphans:auto;widows=
:auto;text-align:start;">&nbsp;</div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">The frei=
ght industry is currently panicking due to the prospect of a "trade war" be=
tween the US and China.</span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">&nbsp;</=
span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">Especial=
ly for US-based importers, the prospect of a sudden introduction of </span>=
additional <span style=3D"color:black;">duties is scary, and we have receiv=
ed a number of enquiries from concerned customers.</span></div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">&nbsp;</div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">However, the impact o=
f a trade conflict is not restricted to US importers. US exporters will eve=
ntually also be affected, as China is preparing to retaliate by introducing=
 additional duties for imports from the US, making it more expensive for Ch=
inese importers to buy US products. Even exporters in third party countries=
 that produce components for goods manufactured in China will be affected. =
So, potentially, there could be a "domino effect", leading to a downturn in=
 global trade.</div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">&nbsp;</div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">On the other hand, be=
neficiaries of these developments could be producers in countries other tha=
n China, as US importers will seek to substitute China imports with imports=
 from these countries, as well as US manufacturers that will be more compet=
itive due to the higher cost of China imports.</div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">&nbsp;</div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;text-decor=
ation:underline;"><b>Have any additional duties already been implemented?</=
b></span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">&nbsp;</=
span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">Fortunat=
ely, only a small number of commodities have so far been targeted</span> fo=
rAnti-dumpingduties <span style=3D"color:black;">- these have so far focuse=
d on steel and aluminum products. Importers of these products from China ar=
e now facing </span>A<span style=3D"color:black;">nti-dumping duties that <=
/span>can even <span style=3D"color:black;">exceed the value of the merchan=
dize</span> imported.</div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;"><span style=3D"color:=
black;">&nbsp;</span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><b><span style=3D"color:black;text-de=
coration:underline;">What additional measures could the </span><span style=
=3D"text-decoration:underline;">a<span style=3D"color:black;">dministration=
 take?</span></span></b></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;"><b>&nbsp=
;</b></span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">Addition=
al to these anti-dumping duties, the administration announced on March 23 t=
hat the US is intending to propose<span>&nbsp;</span><span style=3D"text-de=
coration:underline;">additional 25% duty increases on certain goods of Chin=
ese origin</span>. This would mean that whatever duty is currently in place=
 for the respective product class will increase by 25%. (For example: If cu=
rrent duty for the respective product is at 0%, it would be increased to 25=
%, and if the current duty is 10%, it would be increased to 35%).</span></d=
iv>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">&nbsp;</=
span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">It is cu=
rrently not known whether these tariffs will ever actually be implemented o=
r not. The threat of these additional duties should be looked at as a negot=
iation tool that the administration is using to "bring China to the table".=
</span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">&nbsp;</=
span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">However,=
 even if these tariffs are eventually implemented, they will not take immed=
iate effect. Instead, the US trade representative will publish a list of ta=
rgeted goods within 15 days from March 23, 2018 &nbsp;and will then allow f=
or a 30 days' public comment period before implementing these changes.</spa=
n></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">&nbsp;</=
span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;text-decor=
ation:underline;"><b>What product classes might be targeted?</b></span></di=
v>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">&nbsp;</=
span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">The comm=
odities targeted by these additional duty increases include pharmaceutical =
products, machinery, automotive components, steel, alloy and aluminum produ=
cts. </span></div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;"><b>&nbsp;</b></div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;"><span style=3D"text-d=
ecoration:underline;"><b>How can OTX help you?</b></span></div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">&nbsp;</div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">If you would like to =
check whether a certain commodity is potentially going to be subject to add=
itional duties, please let us have the HST number and we will check and rev=
ert to you. &nbsp;</div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">&nbsp;</div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;"><span style=3D"color:=
black;">We can also provide a detailed list of the products and their HTS c=
odes - this is available from OTX on request.</span></div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;"><span style=3D"color:=
black;">&nbsp;</span></div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;"><span style=3D"color:=
black;">Please contact us at &nbsp;</span><a href=3D"mailto:sales@otxusa.co=
m" shape=3D"rect" target=3D"_blank">sales@otxusa.com</a><span style=3D"colo=
r:black;">.</span></div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">&nbsp;</div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">&nbsp;</div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;text-decor=
ation:underline;"><b>Why is all this happening?</b></span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">&nbsp;</=
span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">The US a=
dministration</span>' standpoint is that <span style=3D"color:black;">trade=
 barriers for US exports to China are much higher than those </span>for <sp=
an style=3D"color:black;">Chinese goods being exported to the US. These tra=
de barriers do not necessarily manifest themselves in the form of duties an=
d tariffs. </span>According to the US trade representative, <span style=3D"=
color:black;">US exporters are also being subjected to restrictions in the =
form of "local content" regulations, requirements to form joint ventures wi=
th local Chinese partners, requirements to share technology with Chinese pa=
rtners, and other forms of trade barriers. The US government</span> states =
that their<span style=3D"color:black;"> objective is to create a fair and l=
evel playing field, enabling US exporters to compete fairly in the market p=
lace.</span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">&nbsp;</=
span></div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:black;">Please c=
ontact us at<span>&nbsp;</span></span><a href=3D"mailto:sales@otxusa.com" s=
hape=3D"rect" target=3D"_blank"><span style=3D"color:purple;">sales@otxusa.=
com</span></a><span style=3D"color:black;">&nbsp;</span><span style=3D"colo=
r:black;">in case there are any questions we can assist with.&nbsp;</span><=
/div>
<div style=3D"font-variant-caps:normal;word-spacing:0px;font-family:Tahoma,=
 Arial, sans-serif;text-align:start;"><span style=3D"color:#1f497d;font-siz=
e:11.0pt;">&nbsp;</span></div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;">&nbsp;</div>
<br/></td></tr></table>

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 </tr>
 </table>

 <table class=3D"MinimumFullColumnWidth ContentBGColor" style=3D"background=
-color:#F3F3F3;width:100%;" bgcolor=3D"#F3F3F3" border=3D"0" width=3D"1" ce=
llspacing=3D"0" cellpadding=3D"0">
 <tr>

 <td class=3D"MiddleFullColumn" style=3D"padding:12px 0px 18px 0px;" valign=
=3D"top" width=3D"100%" rowspan=3D"1" colspan=3D"1" align=3D"center">

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 <table style=3D"display:table;" border=3D"0" width=3D"100%" cellpadding=3D=
"0" cellspacing=3D"0" id=3D"content_LETTER.BLOCK12"><tr><td class=3D"Conten=
t MainText" style=3D"padding:7px 36px 7px 36px;color:#222222;font-size:11pt=
;font-family:Arial,Helvetica,sans-serif;" valign=3D"top" rowspan=3D"1" cols=
pan=3D"1" align=3D"left">
<div>
<div class=3D"HeadingText" style=3D"color:#004aa6;font-size:18pt;font-famil=
y:Tahoma, Arial, sans-serif;">
<div><span style=3D"text-decoration:underline;font-size:11pt;"><b>Ocean Imp=
ort and Export disrupted by trucking shortage</b></span></div>
<div><span style=3D"font-size:11.0pt;">&nbsp;</span></div>
<div style=3D"color:#000000;"><span style=3D"font-size:11.0pt;">Supply chai=
ns to and from North America are being disrupted by two bottleneck situatio=
ns that are affecting transit times: A trucking shortage on the East Coast =
and a chassis shortage in the Midwest.</span></div>
<div style=3D"color:#000000;"><span style=3D"font-size:11.0pt;">&nbsp;</spa=
n></div>
<div style=3D"color:#000000;"><span style=3D"font-size:11.0pt;">Driver shor=
tages, strong consumer demand and new regulations have created trucking cap=
acity shortages. This has been causing delayed pick-ups and deliveries&nbsp=
;</span></div>
<div style=3D"color:#000000;"><span style=3D"font-size:11.0pt;">at several =
US ports, including the Port of New York and New Jersey, Charleston,</span>=
</div>
<div style=3D"color:#000000;"><span style=3D"font-size:11.0pt;">&nbsp;Jacks=
on</span><span style=3D"font-size:11pt;">ville, Norfolk, Savannah, Chicago,=
 Columbus, Detroit, Memphis&nbsp;</span></div>
<div style=3D"color:#000000;"><img style=3D"display:block;font-size:14.6667=
px;" height=3D"94" vspace=3D"5" border=3D"0" name=3D"ACCOUNT.IMAGE.65" hspa=
ce=3D"10" width=3D"151" src=3D"http://files.constantcontact.com/02fd2c0d401=
/78061a15-549b-4642-a00b-6c78839a8f48.jpg" align=3D"right"/></div>
<div style=3D"color:#000000;"><span style=3D"font-size:11pt;">and Houston. =
The situation h</span><span style=3D"font-size:11pt;">as also resulted in s=
ignificant cost i<span>ncreases.</span></span></div>
</div>
<div style=3D"color:#0000ff;">
<div style=3D"color:#000000;"><span style=3D"font-size:14.6667px;"> <br/> <=
/span></div>
<div style=3D"color:#000000;"><span style=3D"font-size:11.0pt;">&nbsp;</spa=
n></div>
<div style=3D"color:#000000;font-family:Tahoma, Arial, sans-serif;"><span s=
tyle=3D"font-size:11.0pt;">The challenges that both carriers and NVOs are d=
ealing with are new regulations requiring commercial trucks to be equipped =
with electronic logging devices, severe winter</span></div>
<div style=3D"color:#000000;font-family:Tahoma, Arial, sans-serif;"><span s=
tyle=3D"font-size:11.0pt;">&nbsp;weather in specific markets slowing down d=
eliveries and fewer drivers in the market. </span></div>
<div style=3D"color:#000000;font-family:Tahoma, Arial, sans-serif;"><span s=
tyle=3D"font-size:11.0pt;">&nbsp;</span></div>
<div style=3D"color:#000000;font-family:Tahoma, Arial, sans-serif;"><span s=
tyle=3D"font-size:11.0pt;">Additional to this, we are also facing a chassis=
 shortage affecting ports on the US East Coast. </span></div>
<div style=3D"color:#000000;font-family:Tahoma, Arial, sans-serif;"><span s=
tyle=3D"font-size:11.0pt;">&nbsp;</span></div>
<div style=3D"color:#000000;font-family:Tahoma, Arial, sans-serif;"><span s=
tyle=3D"font-size:11.0pt;">OTX has strong partnerships with various road ca=
rriers and has recently added additional carriers into our vendor mix in or=
der to be able to ensure timely deliveries and pick-ups.</span></div>
<div style=3D"font-family:Tahoma, Arial, sans-serif;"><span style=3D"font-s=
ize:11.0pt;">&nbsp;</span></div>
</div>
</div>
</td></tr></table>

 <table style=3D"background-color:#fafafa;display:table;" bgcolor=3D"#FAFAF=
A" border=3D"0" width=3D"100%" cellpadding=3D"0" cellspacing=3D"0" id=3D"co=
ntent_LETTER.BLOCK27"><tr><td class=3D"FeatureContent FeatureText" style=3D=
"padding:7px 36px 7px 36px;color:#000000;font-size:11pt;font-family:Arial,H=
elvetica,sans-serif;" valign=3D"top" rowspan=3D"1" colspan=3D"1" align=3D"l=
eft">
<div style=3D"font-size:16pt;font-family:Tahoma, Arial, sans-serif;"><span>=
<b><br/></b></span></div>
<div style=3D"font-size:16pt;font-family:Tahoma, Arial, sans-serif;"><b sty=
le=3D"font-size:16pt;">Protect Your Cargo!</b></div>
<div>&nbsp;</div>
<div>OTX USA has recently added the following "signature statement" to our =
outgoing email<span style=3D"font-size:11pt;">&nbsp;messages:</span></div>
<div>&nbsp;</div>
<div><span style=3D"color:red;"><b><i>*** Did you know that carrier and fre=
ight forwarder liability for loss or damage to cargo is limited by US law? =
***</i></b></span></div>
<div><span style=3D"color:red;font-size:10.0pt;"><i>For ocean cargo, the li=
mit of liability for loss or damage can be as low as USD 50 per package (Ha=
gue Convention) or USD 500 per container (COGSA).&nbsp; An ocean container =
is considered to be a package for the purposes of assessing liability.&nbsp=
; For international air cargo, the limit of liability is SDR 19 (about USD =
26) per kilogram (Montreal Convention).&nbsp; For domestic trucking in the =
US, the limit of liability varies greatly according to either NMFC freight =
class or the trucker's terms & conditions.&nbsp; In some cases, the limit o=
f liability can be as low as USD 0.10 per pound (USD 0.22 per kilogram).&nb=
sp; The best way to protect the value of your cargo is through the use of c=
argo insurance.&nbsp; You may secure your own cargo insurance policy, or OT=
X Logistics can provide coverage on a per shipment basis under our existing=
 policies.&nbsp; Ask your OTX representative for more details.</i></span></=
div>
<div><span style=3D"color:red;font-size:10.0pt;"><i>&nbsp;</i></span><img s=
tyle=3D"font-size:11pt;" height=3D"144" vspace=3D"5" border=3D"0" name=3D"A=
CCOUNT.IMAGE.69" hspace=3D"5" width=3D"240" src=3D"http://files.constantcon=
tact.com/02fd2c0d401/01b866a6-7a2b-4b85-9ad5-1fbe98db1750.jpg" align=3D"rig=
ht"/></div>
<div>The purpose of this statement is to help increase awareness of the nec=
essity to protect the value of our clients' cargo.&nbsp;&nbsp; Just as each=
 mode of transport has its own inherent risks, each mode of transport also =
has its own limitations of legal liability on the part of the carrier(s).&n=
bsp; Some modes, such as air cargo and expedited trucking, allow for the de=
claration of a "value for carriage" on the bill of lading.&nbsp; This will =
offer coverage, at an additional cost, for loss or damage only while in the=
 care of the carrier who issued the bill of lading.&nbsp; Cargo insurance w=
ill cover the shipment from door to door, and usually for a&nbsp;<span styl=
e=3D"font-size:11pt;">number of days after delivery at destination.</span><=
/div>
<div><span style=3D"font-size:11.0pt;">&nbsp;</span></div>
<div>All too often, a shipper or consignee will learn only after filing a c=
laim that the amount for which a carrier&nbsp; is legally liable will not f=
ully compensate them for the amount of their loss.&nbsp; As mentioned in th=
e signature statement, the best way to protect the value of your cargo is t=
hrough the use of cargo insurance.&nbsp;</div>
<div>&nbsp;</div>
<div>How to protect the value of cargo should be a part of every conversati=
on on the booking of a new shipment.&nbsp;</div>
<div><span style=3D"font-size:11.0pt;">&nbsp;</span></div>
<br/></td></tr></table>

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space=3D"0" border=3D"0" hspace=3D"0" width=3D"650" style=3D"display: block=
;" alt=3D"" src=3D"http://img.constantcontact.com/letters/images/1101116784=
221/PM_GN_FooterTopShadow.png"/></div></td>
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