Important Notice to First Fleet customers

January 31, 2011 Edward

Australian Industry has demonstrated outstanding support for those individuals and businesses affected by the floods that had devastated large tracts of Queensland.

All roads are now open and operations are running, however, we find ourselves in a situation as unexpected as the flooding. The sheer volume of products being moved North is creating huge cost imposts on the transport industry as a whole. We are keen to support the replenishment of goods into Queensland, and need your support to achieve this goal.

In order to clear the backlog and re-stock Queensland with your products, we now have a massive imbalance in vehicle movements North as these vehicles need to be turned around and sent back to their port of origin. If not, the flow into Queensland stops. In a nutshell, the minimal amount of product leaving Queensland means that our linehaul vehicles are conducting ’round trips” with no product available to be moved on the return leg. They are returning home empty.

The reality is 1st Fleet have effectively doubled their operating costs to service the region and get things back on track as quickly as the people of Queensland deserve. We believe they have been through enough suffering and the quicker we can re­supply the state the better.

Over the last 8 days, our linehaul volumes into Queensland have increased by 150%. We would seek your support in accepting a 20% surcharge for movements into Queensland until such time as we can regain some kind of a balance in movements into and out of Queensland. This surcharge will be effective from Monday the 31st of January 2011.

We have not taken this decision lightly and trust that you have the understanding to realise the huge impact these extreme increases in operating cost could have on our business if we do not take the necessary steps to ensure an equitable return on our endeavours.

We assure you of the temporary nature of this surcharge and further assure you that it will be removed as quickly as possible. We will provide weekly updates on our operations.

Thank you once again for your ongoing support.

Stephen Brown

Managing Director