Tokyo, July 16, 1999

Transfer of Import/Export Sales Duties on Japan-to-Shanghai/Dalian Route


It was recently decided that import/export sales duties for "K" Line's route between Japan and Shanghai/Dalian will be transferred to Tokyo Maritime Agency Limited, a "K" Line affiliate, effective August, 1999.
The duties to be transferred are only those sales duties that involve the shipper or the consignee (setting rates, booking, etc.). Bs/L and D/Os will continue to be issued through "K" Line branch offices.
"K" Line has long continued to offer service on the route in question, having commenced service between Japan and Shanghai in 1976 and added service to Dalian in 1988. In recent years, however, competition between shipping lines has steadily intensified due to the Chinese government's liberalization of maritime shipping services. Competitive pressures have forced "K" Line to improve the efficiency of its operations.
"K" Line's recent decision to shift the sales duties to Tokyo Maritime Agency is intended to strengthen cost competitiveness while maintaining the quality of service at its current level. The move is aimed at prevailing over the competition on the route between Japan and Shanghai/Dalian.
Irrespective of the change, "K" Line intends to continue to exert utmost efforts as usual to maintain and improve its customer service.



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