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November 13, 2008
Kawasaki Kisen Kaisha, Ltd.

CKYH to rationalize services

November 13th, 2008 - CKYH (Coscon, "K"LINE, Yang Ming, Hanjin Shipping) Alliance has announced today its plans for the rationalization of its services in order to respond to growing uncertainty in the world's economy.

CKYH has already suspended the AWE (All Water East Coast) Central Loop from early October 2008, and reduced the total capacity in the CKYH AWE trade by around 18.5%.

CKYH also suspended their EMX (East Med Express) service in the Asia-East Mediterranean trade from the middle of October 2008. CKYH is now conducting an extensive study to further restructure the Asia-East Mediterranean services, including the ADX (Aegean Sea Direct Express) service.

In addition, CKYH will be making service changes as follows:

Firstly, the current capacity deployed in the TAS -1 (North Trans Atlantic) service connecting the U.S. and Europe, will be reduced by approximately 18%, which will be effective from the middle of November 2008. Existing calling ports and schedule will remain unchanged, but the size of the vessels deployed will be modified.

Secondly, the capacity in the PSW (Pacific South West) trade will be decreased. The current MAP (Mediterranean - Asia - America Pendulum) service connecting Mediterranean, Asia and the U.S. is to be terminated effective from early 2009. This is around 13 ~ 15% of the total capacity deployed in the PSW trade by the CKYH Alliance. However, CKYH will utilize current services, such as SEA (South China Express) as substitution for MAP service.

Thirdly, the European service CNX will be suspended from the end of January 2009, which is being operated with 8 Panamax vessels operated by Hanjin Shipping. With CNX suspension CKYH's weekly capacity to North Europe shall be reduced by around 9 %.

CKYH will continue providing high quality services for its customers.

´Żą Note

1. AWE (All Water East Coast) Central Loop

Suspended from early October 2008

Rotation Xiamen - Yantian - Ningbo - Shanghai - Busan - Savannah - Norfolk - Charleston - Xiamen
Vessels deployed 4000TEU x 8

2. EMX (Greece-Israel Service)

Suspended from the middle of October 2008

Rotation Shanghai - Ningbo - Hong Kong - Shekou - Singapore - Ashdod - Piraeus - Thessaloniki - Singapore - Hong Kong - Shanghai
Vessels deployed 3000TEU x 7

3. ADX (Aegean Sea Direct & Israel Express Service)

Restructuring under study

Rotation Hong Kong - Singapore - Ashdod - Istanbul - Haydarpasa - Izmir - Singapore - Hong Kong
Vessels deployed 2000TEU x 7

4. TAS 1 (North Trans Atlantic Express Service)

Vessels to be replaced from the middle of November 2008

Rotation Antwerp - Bremerhaven - Rotterdam - Le Havre - New York - Norfolk - Charleston - Antwerp
Vessel deployed 3000TEU x 4, to be replaced by 2500TEU x 4.

5. MAP (Mediterranean-Asia-America Pendulum Service)

To be suspended in early 2009

Rotation Port Kelang - Singapore - Hong Kong - Yantian - Kaohsiung - Osaka - Tokyo - Long Beach - Oakland - Tokyo - Osaka - Busan - Shanghai - Ningbo - Kaohsiung - Hong Kong - Singapore - Port Said - Marsaxlokk - Napoli - La Spezia - Barcelona - Port Kelang - Singapore - Hong Kong - Yantian - Kaohsiung - Osaka - Tokyo
Vessel deployed 5500TEU x 13

6. CNX (China - North Europe Express Service)

To be suspended in January 2009

Rotation Qingdao - Shanghai - Hong Kong - Singapore - Hamburg - Antwerp - Le Harve - Singapore - Qingdao
Vessel deployed 4000TEU x 8


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