Customer Notice

November 21, 2014

Changes to Breakbulk Fuel Charge Effective January 1st, 2015

Dear Valued Customer,

As we informed you approximately one month ago, Westwood will be changing its application of the Breakbulk Fuel Charge, effective January 1st, 2015.

Westwood Shipping Lines fully complies with all environmental regulations and requirements related to our operations. New regulations regarding the use of Low Sulfur Marine Gas Oil (LSMGO) within the North America Emission Control Area (NAECA) will come into effect on January 1, 2015.

Carriers are required to switch to fuel with a sulfur content of 0.1 percent on Jan. 1, 2015, from the current 1.0 percent limit, while operating within the Emission Control Area (ECA) in the North America zone in which we serve.

Westwood has modified its Eastbound and Westbound Breakbulk Fuel Charges to better reflect the combination of fuels that are required for use in transport of cargo. As a result, effective Jan 1st 2015 we will utilize updated Eastbound and Westbound tables that reflect the use of IFO 380 in non-NAECA (Base Bunker Charge), and the use of Low Sulfur Marine Gasoil (LSMGO) within the NAECA.

In addition, we will move from the currently Monthly Breakbulk Fuel Charge, to a Quarterly Breakbulk Fuel Charge.

The Breakbulk Fuel Charge will be adjusted quarterly and is based on a 13-week reporting period that ends approximately 30 days before the effective date of the next period as follows:

Prices are developed independently by Bunkerworld, and reflect the average bunker prices for IFO 380 at Hong Kong SAR and Los Angeles. This information can be found on www.bunkerworld.com.

A simple average of the 13-weeks posted average prices will be used to arrive at a quarterly average price. Using the table provided, this price will determine the Breakbulk Bunker Charge to be applied in the following period.

The Breakbulk Fuel Charge for Eastbound and Westbound cargo will be posted by December 1st, 2014 for application on January 1st, 2015.

If you have any questions or require further assistance, please contact your Westwood Sales Manager or Customer Service Specialist at 1-888-539-5154.