Yang Ming Marine Transport held its Q4 2023 corporate briefing yesterday (4th), addressing measures taken in response to the recent Panama Canal drought. Media reports inaccurately suggested that THE Alliance is considering imposing surcharge in the matter. However, to comply with antitrust regulations, THE Alliance member cannot discuss rate-related matters. Any potential surcharge implementation would be independently evaluated and determined by the Company itself to manage increased costs while ensuring stable service for customers. To prevent any misunderstandings, the Company would like to clarify the conference details as follows:

1. According to Panama Canal Authority’s advisory on Oct 30th, the authority finds it necessary to further reduce the daily transit capacity to postpone the need for additional draft reductions below the current 13.41m (44 feet) TFW. Under the significantly reduced limitations on vessels passing through the canal, there is a risk of delays in sailing schedules.

2. Yang Ming aims to maintain stable weekly services. Therefore, for long-haul routes, considering the limitations on Panama Canal transit, corresponding measures will be deliberated through THE Alliance's operational mechanism. This includes increasing deployed vessels and alternative routes, including the Suez Canal or the Cape of Good Hope, to ensure schedule stability.

3. In the event that the supply chain encounters uncontrollable incidents affecting the supply chain and service delivery, Yang Ming will independently assess the impact on the Company's costs. Corresponding measures, including the implementation of surcharge, will be determined through internal discussions within the Company and announced to customers separately.