Exhibit 1 BAF updated 24 June 2019.pdf

Voluntary Intermodal Sealift Agreemnt (VISA) Exhibit 1, Bunker Adjustment Factor (BAF)

June 24, 2019

1. Bunker Adjustment Factor (BAF)

1.1. Allowance

An allowance for fluctuations in marine fuel prices shall be paid to the Contractors or to the US Government in accordance with the following:

a. The allowance shall be paid per freight payable unit of cargo. For containerized goods these units are 20-foot and 40-foot containers. For breakbulk cargo, they are measurement tons.

b. The BAF is zero unless the one-month average fuel price is at least 20% higher or 20% lower than the baseline average fuel price, in which case, the Government (above the baseline) or the Contractor (below the baseline) will pay the difference. No bunker adjustment is payable on the routes not included in BAF Table 1 below.

c. The compensation per freight payable unit shall be calculated as follows:

[(Fuel Price of MGO at Bunker Fuel Location listed in Table 1 x route specific percentage + Fuel Price IFO 380 at Bunker Fuel Location listed in Table 1 x route specific percentage – annual baseline fuel price) x BAF Technical Factor]

d. On November 1, 2019, BAF will no longer be tied to the IFO 380 fuel type but to the new low sulfur fuel used worldwide to be in compliance with the IMO 2020 regulations. The calculation in paragraph c. above will change to:

[(Fuel Price of MGO at Bunker Fuel Location listed in Table 1 x route specific percentage + Fuel Price of open ocean 2020 compliant fuel at Bunker Fuel Location listed in Table 1 x route specific percentage – annual baseline fuel price) x BAF Technical Factor]

1.2. Baseline Fuel Price

The baseline fuel price shall be re-priced annually prior to contract award and the award of each option period if exercised and added to the activation Task Order. The baseline fuel prices shall be based on the average fuel price over a three month time frame for Norfolk and Los Angeles for each fuel type. The three month period will be based on the three months prior to the month the Request for Proposal is issued. In the case of the Option Period, the three month period will be based on the three months prior to exercising the option period. The established baseline at time of award shall consider the fuel types outlined in paragraph 1.1.c., the baseline for each subsequent option period, if exercised, shall be calculated using the fuel types in paragraph 1.1.d.

1.3 Fuel Mixture

The bunker fuel mixture and bunker fuel location for each route is shown below in BAF Table 1.

BAF Table 1

Route Bunker Fuel Location Name

High Sulfur Bunker Share

ECA Share (Low Sulfur)

Los Angeles U.S. West Coast - Far East 84% 16%

02 Norfolk Continental Europe, United Kingdom, Ireland - Middle East, South Asia, Indian Ocean 85% 15%

Los Angeles U.S. West Coast – Hawaii 53% 47%

Los Angeles Middle East, South Asia, Indian Ocean Interport 95% 5%

05 Norfolk U.S. East Coast - Continental Europe, United Kingdom, Ireland 36% 64%

06 Norfolk U.S. East Coast – Mediterranean 71% 29%

07 Norfolk U.S. East Coast - Middle East, South Asia, Indian Ocean 80% 20%

08 Norfolk U.S. East Coast - Far East 87% 13%

09 Norfolk U.S. East Coast – Hawaii 74% 26%

10 Norfolk U.S. Gulf Coast - Scandinavia, Baltic Sea 37% 63%

11 Norfolk U.S. Gulf Coast - Continental Europe, United Kingdom, Ireland 61% 39%

12 Norfolk U.S. Gulf Coast – Mediterranean 79% 21%

13 Norfolk U.S. Gulf Coast - Middle East, South Asia, Indian Ocean 86% 14%

14 Norfolk U.S. Gulf Coast - Far East 89% 11%

15 Norfolk U.S. Gulf Coast - Hawaii 75% 25%

Los Angeles Hawaii - Far East 84% 16%

17 Norfolk U.S. Great Lakes - Continental Europe, United Kingdom, Ireland 35% 65%

18 Norfolk Caribbean Interport 95% 5%

Los Angeles Far East Interport 95% 5%

20 Norfolk Mediterranean Interport 95% 5%

21 Norfolk Canada East Coast - Mediterranean 84% 16%

22 Norfolk Canada East Coast - Continental Europe, United Kingdom, Ireland 74% 26%

Los Angeles

U.S. West Coast - Continental Europe, United Kingdom, Ireland 74% 26%

24 Norfolk Scandinavia, Baltic Sea - Continental Europe, United Kingdom, Ireland 0% 100%

Los Angeles U.S. West Coast - Mediterranean 91% 9%

Los Angeles U.S. West Coast - Alaska 0% 100%

Los Angeles

Hawaii - Continental Europe, United Kingdom, Ireland 84% 16%

Los Angeles U.S. West Coast - Central America/Mexico 84% 16%

29 Norfolk Alaska Interport 87% 13%

30 Norfolk U.S. East Coast - Greenland 29% 71%

31 Norfolk U.S. East Coast - Iceland 39% 61%

32 Norfolk U.S. East Coast - Scandinavia, Baltic Sea 31% 69%

33 Norfolk U.S. East Coast - Azores 77% 23%

34 Norfolk Continental Europe, United Kingdom, Ireland - Mediterranean 78% 22%

35 Norfolk U.S. West Coast - Caribbean (Reserved) (Reserved)

36 Norfolk Mediterranean - Hawaii 91% 9%

37 Norfolk U.S. East Coast - Caribbean 75% 25%

38 Norfolk U.S. Gulf Coast - Azores (Reserved) (Reserved)

39 Norfolk U.S. East Coast - Central America/Mexico 67% 33%

40 Norfolk Africa Interport 95% 5%

Los Angeles Hawaii Interport 0% 100%

42 Norfolk U.S. Gulf Coast - Caribbean 63% 37%

43 Norfolk U.S. Gulf Coast - Central America/Mexico 63% 37%

Los Angeles Alaska - Hawaii 53% 47%

45 Norfolk U.S. Great Lakes - Far East 81% 19%

46 Norfolk U.S. Great Lakes - Mediterranean 62% 38%

Los Angeles

U.S. West Coast - Middle East, South Asia, Indian Ocean 81% 19%

48 Norfolk Continental Europe, United Kingdom, Ireland Interport 0% 100%

49 Norfolk Far East - Continental Europe, United Kingdom, Ireland 89% 11%

50 Norfolk Far East - Mediterranean 95% 5%

51 Norfolk Far East - Middle East, South Asia, Indian Ocean 95% 5%

52 Norfolk U.S. East Coast - Black Sea 66% 34%

Los Angeles U.S. West Coast - South America 93% 7%

Los Angeles U.S. West Coast - Oceania 88% 12%

55 Norfolk U.S. East Coast - South America 67% 33%

56 Norfolk U.S. Gulf Coast - South America 71% 29%

57 Norfolk Mediterranean - Middle East, South Asia, Indian Ocean 95% 5%

58 Norfolk Far East – South America 85% 15%

59 Norfolk U.S. Gulf Coast - Black Sea (Reserved) (Reserved)

60 Norfolk U.S. East Coast - Africa 80% 20%

61 Norfolk Far East - Oceania 95% 5%

62 Norfolk Continental Europe, United Kingdom, Ireland - Iceland 46% 54%

63 Norfolk Iceland - Mediterranean 95% 5%

64 Norfolk Continental Europe, United Kingdom, Ireland - Azores 56% 44%

65 Norfolk Central America/Mexico - Continental Europe, United Kingdom, Ireland 81% 19%

66 Norfolk Central America/Mexico - Mediterranean 95% 5%

Los Angeles U.S. West Coast - Africa 88% 12%

68 Norfolk Central America/Mexico - South America 95% 5%

69 Norfolk Central America/Mexico - Oceania 95% 5%

70 Norfolk Azores - Mediterranean 95% 5%

71 Norfolk Continental Europe, United Kingdom, Ireland - Africa 85% 15%

72 Norfolk Continental Europe, United Kingdom, Ireland - Oceania 90% 10%

73 Norfolk U.S. Gulf Coast - Africa 85% 15%

74 Norfolk Mediterranean - Africa 95% 5%

75 Norfolk Africa - Middle East, South Asia, Indian Ocean 95% 5%

76 Norfolk Central America/Mexico Interport 95% 5%

77 Norfolk U.S. East Coast - Oceania 87% 13%

78 Norfolk U.S. Gulf Coast - Oceania 92% 8%

Los Angeles Hawaii - Oceania 89% 11%

80 Norfolk Oceania - Middle East, South Asia, Indian Ocean 95% 5%

81 Norfolk Oceania Interport 95% 5%

82 Norfolk Alaska - Far East 91% 9%

83 Norfolk Alaska - Oceania 92% 8%

84 Norfolk Caribbean - Central America/Mexico 95% 5%

Los Angeles Hawaii - Middle East, South Asia, Indian Ocean 92% 8%

86 Norfolk Mediterranean - Scandinavia, Baltic Sea 66% 34%

87 Norfolk Far East – Scandinavia, Baltic Sea 84% 16%

88 Norfolk Continental Europe, United Kingdom, Ireland - Caribbean 80% 20%

89 Norfolk Mediterranean - Oceania 95% 5%

90 Norfolk Far East - Africa 95% 5%

91 Norfolk Alaska - Middle East, South Asia, Indian Ocean 93% 7%

92 Norfolk Caribbean - Middle East, South Asia, Indian Ocean 95% 5%

93 Norfolk Far East - Central America/Mexico 95% 5%

94 Norfolk Mediterranean - Black Sea (Reserved) (Reserved)

95 Norfolk Black Sea - Middle East, South Asia, Indian Ocean (Reserved) (Reserved)

96 Norfolk Black Sea Interport 0% 100%

97 Norfolk Continental Europe, United Kingdom, Ireland - Black Sea (Reserved) (Reserved)

98 Norfolk Baltic Interport 95% 5%

99 Norfolk Caribbean - Africa 95% 5%

CA Norfolk Caspian Sea Interport 95% 5%

1.4. Calculations

1.4.1. BAF shall be calculated using Norfolk or Los Angeles prices as indicated in the Bunker Fuel Location column of Table 1.

1.4.2. A fuel price shall be computed by SDDC for Los Angeles and Norfolk on or after the first of each month (“calculation month”) and be provided to contractors no later than the 15th of the same month. The calculation shall use data from the previous month (“data month”), and shall be applicable to the month which is two months after the calculation month and three months after the data month. The applicable month is determined by the sail date from POE in the initial offer. For example, the BAF calculated in July based on June data shall apply to cargo that was initially offered to sail from POE in September. If the cargo is advanced and ends up sailing in an earlier month, or sails in a later month (due to factors such as roll, shutout, or schedule change), there will be no change to the BAF. Using the above example, if the cargo was initially offered to a VOYDOC that was scheduled to sail from POE in September, the BAF applicable to September shall be payable, even if the sails in a different month.

1.4.3. The scheduled month the vessel departs the load port at the time of booking shall determine the month for calculation of BAF charges.

1.4.4. The source for bunker prices is Bunkerworld (https://www.bunkerworld.com/), which calculates bunker average monthly prices by port and fuel type. These prices are quoted in metric tons

1.4.5. SDDC shall monitor, calculate, and post BAF to the SDDC website.

1.5. Payment procedures.

Contractors are responsible for indicating on their shipment invoice whether a fuel payment is due them, whether no fuel payment is to be made, or whether a fuel payment is due SDDC. If a fuel payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no fuel payment, the Contractor shall indicate on the invoice “No Fuel Adjustment”. BAF for authorized agent shipments shall be paid using this process.

1.6. Application

The bunker fuel adjustment applies to fuel purchased by the Contractor from normal commercial suppliers and does not apply when bunker fuel has been provided or subsidized by the U.S. Government or foreign Governments.

1.7. Technical Factors and Freight Payable Units

The technical factors and their freight payable units are shown in BAF Table 2 below:

BAF Table 2

Technical Factors

Route Route Description TEU FEU MT 01 U.S. West Coast - Far East 0.246 0.458 0.0113

Continental Europe, United Kingdom, Ireland - Middle East, South Asia, Indian Ocean 0.320 0.596 0.0159

03 U.S. West Coast - Hawaii 0.135 0.252 0.0054 04 Middle East, South Asia, Indian Ocean Interport 0.052 0.097 0.0025 05 U.S. East Coast - Continental Europe, United Kingdom, Ireland 0.179 0.334 0.0078 06 U.S. East Coast - Mediterranean 0.229 0.426 0.0118 07 U.S. East Coast - Middle East, South Asia, Indian Ocean 0.385 0.717 0.0189 08 U.S. East Coast - Far East 0.602 1.119 0.0302 09 U.S. East Coast - Hawaii 0.307 0.572 0.0127 10 U.S. Gulf Coast - Scandinavia, Baltic Sea 0.238 0.443 0.0115 11 U.S. Gulf Coast - Continental Europe, United Kingdom, Ireland 0.215 0.400 0.0108 12 U.S. Gulf Coast - Mediterranean 0.276 0.513 0.0143 13 U.S. Gulf Coast - Middle East, South Asia, Indian Ocean 0.409 0.761 0.0209 14 U.S. Gulf Coast - Far East 0.502 0.933 0.0301 15 U.S. Gulf Coast - Hawaii 0.287 0.534 0.0169 16 Hawaii - Far East 0.250 0.466 0.0111 17 U.S. Great Lakes - Continental Europe, United Kingdom, Ireland 0.165 0.307 0.0085 18 Caribbean Interport 0.017 0.031 0.0004 19 Far East Interport 0.135 0.251 0.0076 20 Mediterranean Interport 0.083 0.154 0.0044 21 Canada East Coast - Mediterranean 0.226 0.420 0.0087 22 Canada East Coast - Continental Europe, United Kingdom, Ireland 0.132 0.245 0.0051 23 U.S. West Coast - Continental Europe, United Kingdom, Ireland 0.389 0.724 0.0179

Scandinavia, Baltic Sea - Continental Europe, United Kingdom, Ireland 0.063 0.118 0.0028

25 U.S. West Coast - Mediterranean 0.354 0.659 0.0184 26 U.S. West Coast - Alaska 0.125 0.233 0.0030 27 Hawaii - Continental Europe, United Kingdom, Ireland 0.412 0.767 0.0204 28 U.S. West Coast - Central America/Mexico 0.167 0.310 0.0067 29 Alaska Interport 0.113 0.209 0.0035 30 U.S. East Coast - Greenland 0.131 0.244 0.0055 31 U.S. East Coast - Iceland 0.123 0.230 0.0057 32 U.S. East Coast - Scandinavia, Baltic Sea 0.192 0.358 0.0087 33 U.S. East Coast - Azores 0.096 0.178 0.0060 34 Continental Europe, United Kingdom, Ireland - Mediterranean 0.168 0.313 0.0081 35 U.S. West Coast - Caribbean (Reserved) (Reserved) (Reserved) 36 Mediterranean - Hawaii 0.427 0.794 0.0261 37 U.S. East Coast - Caribbean 0.075 0.139 0.0014 38 U.S. Gulf Coast - Azores (Reserved) (Reserved) (Reserved) 39 U.S. East Coast - Central America/Mexico 0.122 0.227 0.0104 40 Africa Interport 0.097 0.181 0.0044 41 Hawaii Interport 0.135 0.252 0.0054 42 U.S. Gulf Coast - Caribbean 0.105 0.195 0.0054 43 U.S. Gulf Coast - Central America/Mexico 0.084 0.157 0.0085 44 Alaska - Hawaii 0.135 0.252 0.0054 45 U.S. Great Lakes - Far East 0.640 1.190 0.0247 46 U.S. Great Lakes - Mediterranean 0.303 0.563 0.0106

47 U.S. West Coast - Middle East, South Asia, Indian Ocean 0.502 0.934 0.0196 48 Continental Europe, United Kingdom, Ireland Interport 0.024 0.044 0.0010 49 Far East - Continental Europe, United Kingdom, Ireland 0.496 0.923 0.0218 50 Far East - Mediterranean 0.444 0.827 0.0246 51 Far East - Middle East, South Asia, Indian Ocean 0.312 0.580 0.0168 52 U.S. East Coast - Black Sea 0.289 0.538 0.0138 53 U.S. West Coast - South America 0.159 0.296 0.0073 54 U.S. West Coast - Oceania 0.355 0.661 0.0093 55 U.S. East Coast - South America 0.092 0.170 0.0097 56 U.S. Gulf Coast - South America 0.117 0.218 0.0107 57 Mediterranean - Middle East, South Asia, Indian Ocean 0.215 0.400 0.0113 58 Far East - South America 0.035 0.065 0.0023 59 U.S. Gulf Coast - Black Sea (Reserved) (Reserved) (Reserved) 60 U.S. East Coast - Africa 0.305 0.566 0.0153 61 Far East - Oceania 0.370 0.689 0.0169 62 Continental Europe, United Kingdom, Ireland - Iceland 0.089 0.165 0.0029 63 Iceland - Mediterranean 0.125 0.232 0.0048 64 Continental Europe, United Kingdom, Ireland - Azores 0.076 0.142 0.0036

Central America/Mexico - Continental Europe, United Kingdom, Ireland 0.221 0.411 0.0096

66 Central America/Mexico - Mediterranean 0.225 0.418 0.0102 67 U.S. West Coast - Africa 0.679 1.262 0.0288 68 Central America/Mexico - South America 0.067 0.125 0.0062 69 Central America/Mexico - Oceania 0.445 0.828 0.0196 70 Azores - Mediterranean 0.118 0.219 0.0049 71 Continental Europe, United Kingdom, Ireland - Africa 0.295 0.549 0.0138 72 Continental Europe, United Kingdom, Ireland - Oceania 0.566 1.053 0.0239 73 U.S. Gulf Coast - Africa 0.309 0.575 0.0171 74 Mediterranean - Africa 0.277 0.514 0.0151 75 Africa - Middle East, South Asia, Indian Ocean 0.384 0.714 0.0202 76 Central America/Mexico Interport 0.096 0.178 0.0060 77 U.S. East Coast - Oceania 0.499 0.929 0.0193 78 U.S. Gulf Coast - Oceania 0.434 0.807 0.0230 79 Hawaii - Oceania 0.275 0.512 0.0105 80 Oceania - Middle East, South Asia, Indian Ocean 0.422 0.785 0.0216 81 Oceania Interport 0.119 0.221 0.0035 82 Alaska - Far East 0.190 0.353 0.0062 83 Alaska - Oceania 0.304 0.565 0.0096 84 Caribbean - Central America/Mexico 0.055 0.103 0.0018 85 Hawaii - Middle East, South Asia, Indian Ocean 0.566 1.054 0.0275 86 Mediterranean - Scandinavia, Baltic Sea 0.177 0.329 0.0082 87 Far East – Scandinavia, Baltic Sea 0.414 0.770 0.0204 88 Continental Europe, United Kingdom, Ireland - Caribbean 0.165 0.308 0.0066 89 Mediterranean - Oceania 0.370 0.687 0.0160 90 Far East - Africa 0.396 0.736 0.0129 91 Alaska - Middle East, South Asia, Indian Ocean 0.429 0.798 0.0133 92 Caribbean - Middle East, South Asia, Indian Ocean 0.337 0.626 0.0161

93 Far East - Central America/Mexico 0.334 0.621 0.0136 94 Mediterranean - Black Sea (Reserved) (Reserved) (Reserved) 95 Black Sea - Middle East, South Asia, Indian Ocean (Reserved) (Reserved) (Reserved) 96 Black Sea Interport 0.027 0.050 0.0012 97 Continental Europe, United Kingdom, Ireland - Black Sea (Reserved) (Reserved) (Reserved) 98 Scandinavia, Baltic Sea Interport 0.017 0.032 0.0007 99 Caribbean – Africa 0.134 0.250 0.0052 CA Caspian Sea Interport 0.083 0.154 0.0044

1.8 Changes to BAF Fuel Mixtures and Technical Factors

USTRANSCOM has commissioned a study to be conducted by the Volpe National Transportation Systems Center. The study shall analyze and refresh BAF to reflect updated market conditions. BAF updates include potential revisions to technical factors, fuel mixtures and the effects of the IMO 2020 on BAF calculations. After completion of the study, the Government will modify BAF based on the results of this study. The updates will take effect 1 September 2020..

2. Currency Adjustment Factor (CAF)

2.1. Allowance

CAF only applies to the ocean portion of the transportation and is intended to offset the local currency exchange rate fluctuations for terminal services. An allowance for fluctuations in foreign currency exchange rates shall be paid to Contractors or to the Government for routes designated to a superlane as shown in the CAF Table 1 below. The allowance shall be paid per freight payable unit of cargo. For containerized goods, these units are 20-foot and 40-foot containers. For breakbulk cargo, they are measurement tons.

2.2. Calculation Overview

2.2.1. The compensation per freight payable unit shall be derived by implementing the calculation process in paragraph 2.3 below. Note that the General Section basic ocean freight is used to calculate CAF for all shipments eligible for CAF. The basic ocean freight does not include BAF in the calculation of CAF.

Exchange rates are expressed as foreign currency per dollar.

2.2.2. The Currency Adjustment Factor is zero unless the one-month average exchange rate is at least 9% higher or 9% lower (inclusive) than the baseline average currency exchange rate. No CAF is payable on routes/countries if “No CAF payable” is listed in CAF Table 1 below.

2.2.3. Base rates and differentials in currency exchange rates shall be computed for the currencies shown in CAF Table 2. The applicable currency for payment shall be determined by the foreign port of discharge or load.

2.2.4. The source for exchange rates is XE.com. The base rate is the exchange rate published on the Monday which immediately precedes the date proposals are due for base or option periods.

2. 2.5. A one-month average exchange rate shall be computed by SDDC for the currencies shown in CAF Table 2. This average price shall be calculated on or after the first day of the month (“calculation month”) and be provided to contractors no later than the 15th of the same month. The calculation shall use data from the previous month (“data month”), and shall be applicable to the month which is two months after the calculation month, and three months after the data month. The applicable month is determined by the sail date from POE in the initial offer. For example, the CAF calculated in July based on June data shall apply to cargo that was initially offered to sail from POE in September. If the cargo is advanced and ends up sailing in an earlier month, or sails in a later month (due to factors such as roll, shutout, or schedule change), there will be no change to the CAF. Using the above example, if the cargo was initially offered to a VOYDOC that was scheduled to sail from POE in September, the CAF applicable to September shall be payable, even if the cargo sails in a different month.

2.3. Calculation Process

2.3.1. Calculation of the CAF is a three-step process. First, the currency is compared to the list of 17 currencies for which a CAF is calculated and then grouped into a superlane. If so, in step 2, the decision of whether or not to apply a CAF is made. If so, in step 3, the value of the surcharge is calculated.

Step 1: Superlane Assignment Compare the currency to currencies in table 2 below.

If the currency is on the list, note the superlane and go to step 2.

If the currency is not on the list, then no CAF (i.e. CAF = $0)

Step 2: The applicability of the CAF

Step 2a: Find the average exchange rate over the previous month (all exchange rates shall be in terms of foreign currency per U.S. dollar).

The formula for this value is:

Step 2b: Determine the Price Change Ratio The ratio is:

Price Change Ratio =

Step 2c: Compare to Buffer

The Buffer is set to 9% for all superlanes.

If [Price Change Ratio] > Buffer, then Apply a CAF (go to step 3)

If [Price Change Ratio] < Buffer, then No CAF (i.e. CAF = $0)

The [ ] indicate taking the absolute value.

Step 3: Calculate the CAF

The technical factor represents the costs incurred in foreign currency. The technical factor is 7%. The risk sharing factor represents the degree of risk borne by USTRANSCOM on currency fluctuations outside of the buffer zone. The risk sharing factor is 0.9. The base rate is the carrier’s ocean rate.

Note: CAF can be either positive or negative in this situation.

If CAF > 0, then the foreign currency has depreciated, the CAF is a payment to the Government.

If CAF < 0, then the foreign currency has appreciated, the CAF is a payment to the carrier.

2.4. Payment Procedures

2.4.1. For shipments paid using Syncada/U.S. Bank: The CAF shall be fixed at the time of booking and shall be based on the date the booked vessel is scheduled to depart. When CAF is payable, shippers shall include the applicable CAF amount (plus or minus) to all shipments paid to the Contractor via their own documentation and payment system at the time that the original transactions are sent to Syncada.

Contractors using the Syncada invoice procedure shall include the applicable CAF amount (plus or minus) in their invoice.

2.4.2. For all shipments other than those paid using Syncada/U.S. Bank, Contractors are responsible for indicating on their shipment invoice whether a currency adjustment payment is due them, whether no currency adjustment payment is to be made or whether a currency adjustment payment is due SDDC. If a currency adjustment payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no currency adjustment payment, the Contractor shall indicate on the invoice “No Currency Adjustment Payment”. CAF for authorized agent shipments shall be paid using this process.

CAF TABLE 1

Route Name Superlane 1 U.S. West Coast - Far East Eastern Asia

Continental Europe, United Kingdom, Ireland – Middle East, South Asia, Indian Ocean No CAF payable

3 U.S. West Coast - Hawaii No CAF payable 4 Middle East, South Asia, Indian Ocean Interport No CAF payable

U.S. East Coast - Continental Europe, United Kingdom, Ireland Europe/Mediterranean

6 U.S. East Coast - Mediterranean Europe/Mediterranean

U.S. East Coast - Middle East, South Asia, Indian Ocean Western Indian Ocean

8 U.S. East Coast - Far East Eastern Asia 9 U.S. East Coast - Hawaii No CAF payable

10 U.S. Gulf Coast - Scandinavia, Baltic Sea Europe/Mediterranean

U.S. Gulf Coast - Continental Europe, United Kingdom,Ireland Europe/Mediterranean

12 U.S. Gulf Coast - Mediterranean Europe/Mediterranean

U.S. Gulf Coast - Middle East, South Asia, Indian Ocean Western Indian Ocean

14 U.S. Gulf Coast - Far East Eastern Asia 15 U.S. Gulf Coast - Hawaii No CAF payable 16 Hawaii - Far East Eastern Asia

U.S. Great Lakes - Continental Europe, United Kingdom, Ireland Europe/Mediterranean

18 Caribbean Interport No CAF payable 19 Far East Interport No CAF payable 20 Mediterranean Interport No CAF payable 21 Canada East Coast - Mediterranean No CAF payable

Canada East Coast - Continental Europe, United Kingdom, Ireland No CAF payable

U.S. West Coast - Continental Europe, United Kingdom, Ireland Europe/Mediterranean

Scandinavia, Baltic Sea - Continental Europe, United Kingdom, Ireland No CAF payable

25 U.S. West Coast - Mediterranean Europe/Mediterranean 26 U.S. West Coast - Alaska No CAF payable

Hawaii - Continental Europe, United Kingdom, Ireland Europe/Mediterranean

28 U.S. West Coast - Central America/Mexico No CAF payable 29 Alaska Interport No CAF payable 30 U.S. East Coast - Greeland No CAF payable 31 U.S. East Coast - Iceland No CAF payable 32 U.S. East Coast - Scandinavia, Baltic Sea Europe/Mediterranean 33 U.S. East Coast - Azores Europe/Mediterranean

Continental Europe, United Kingdom, Ireland - Mediterranean No CAF payable

35 U.S. West Coast - Caribbean No CAF payable 36 Mediterranean - Hawaii Europe/Mediterranean 37 U.S. East Coast - Caribbean No CAF payable 38 U.S. Gulf Coast - Azores Europe/Mediterranean 39 U.S. East Coast - Central America/Mexico No CAF payable 40 Africa Interport No CAF payable 41 Hawaii Interport No CAF payable 42 U.S. Gulf Coast - Caribbean No CAF payable 43 U.S. Gulf Coast - Central America/Mexico No CAF payable 44 Alaska - Hawaii No CAF payable 45 U.S. Great Lakes - Far East Eastern Asia 46 U.S. Great Lakes - Mediterranean Europe/Mediterranean

U.S. West Coast - Middle East, South Asia, Indian Ocean Western Indian Ocean

Continental Europe, United Kingdom, Ireland Interport No CAF payable

Far East - Continental Europe, United Kingdom, Ireland No CAF payable

50 Far East - Mediterranean No CAF payable 51 Far East - Middle East, South Asia, Indian Ocean No CAF payable 52 U.S. East Coast - Black Sea No CAF payable 53 U.S. West Coast - South America No CAF payable 54 U.S. West Coast - Oceania No CAF payable 55 U.S. East Coast - South America No CAF payable 56 U.S. Gulf Coast - South America No CAF payable

Mediterranean - Middle East, South Asia, Indian Ocean No CAF payable

58 Far East - South America No CAF payable 59 U.S. Gulf Coast - Black Sea No CAF payable 60 U.S. East Coast - Africa No CAF payable 61 Far East - Oceania No CAF payable

Continental Europe, United Kingdom, Ireland - Iceland No CAF payable

63 Iceland - Mediterranean No CAF payable

Continental Europe, United Kingdom, Ireland - Azores No CAF payable

Central America/Mexico - Continental Europe, United Kingdom, Ireland No CAF payable

66 Central America/Mexico - Mediterranean No CAF payable 67 U.S. West Coast - Africa No CAF payable 68 Central America/Mexico - South America No CAF payable 69 Central America/Mexico - Oceania No CAF payable 70 Azores - Mediterranean No CAF payable

Continental Europe, United Kingdom, Ireland - Africa No CAF payable

Continental Europe, United Kingdom, Ireland - Oceania No CAF payable

73 U.S. Gulf Coast - Africa No CAF payable 74 Mediterranean - Africa No CAF payable 75 Africa - Middle East, South Asia, Indian Ocean No CAF payable 76 Central America/Mexico Interport No CAF payable 77 U.S. East Coast - Oceania No CAF payable 78 U.S. Gulf Coast - Oceania No CAF payable 79 U.S. Hawaii - Oceania No CAF payable 80 Oceania - Middle East, South Asia, Indian Ocean No CAF payable 81 Oceania Interport No CAF payable 82 Alaska - Far East Eastern Asia 83 Alaska - Oceania No CAF payable

84 Caribbean - Central America/Mexico No CAF payable 85 Hawaii – Middle East, South Asia, Indian Ocean Western Indian Ocean 86 Mediterranean – Scandinavia, Baltic Sea No CAF payable 87 Far East – Scandinavia, Baltic Sea No CAF payable

Continental Europe, United Kingdom, Ireland - Caribbean No CAF payable

89 Mediterranean - Oceania No CAF payable 90 Far East - Africa No CAF payable 91 Alaska - Middle East, South Asia, Indian Ocean Western Indian Ocean

Caribbean - Middle East, South Asia, Indian Ocean No CAF payable

93 Far East - Central America/Mexico No CAF payable 94 Mediterranean - Black Sea No CAF payable

Black Sea - Middle East, South Asia, Indian Ocean No CAF payable

96 Black Sea Interport No CAF payable

Continental Europe, United Kingdom, Ireland – Black Sea No CAF payable

98 Scandinavia, Baltic Sea Interport No CAF payable 99 Caribbean - Africa No CAF payable CA Caspian Sea Interport No CAF payable

CAF TABLE 2

Superlane Name Currency Abbreviation

Currency

Eastern Asia JPY Japanese yen

KRW Korean won

SGD Singapore dollar Western Indian Ocean AED United Arab Emirates dirham

BHD Bahraini dinar

DJF Djibouti franc

JOD Jordanian dinar

KWD Kuwaiti dinar

PKR Pakistani rupee

QAR Qatari rial Europe/Mediterranean EGP Egyptian pound

EUR Euro

GBP Pound sterling

ILS Israeli new shekel

NOK Norwegian krone

PLN Polish zloty

TRY Turkish lira

2.8 Changes to CAF Calculations and Superlanes

USTRANSCOM has commissioned a study to be conducted by the Volpe National Transportation Systems Center. The study shall analyze and refresh CAF to reflect updated market conditions. CAF updates include potential revisions to the superlanes and the calculation of CAF. After completion of the study, but before the rate refresh opens for Option Year One, the Government will modify CAF based on the results of this study. The updates will take effect 1 September 2020 in line with the start of OY1.

3. Fuel Adjustment Factor (FAF)

3.1. Fuel Adjustment Surcharge

A Fuel Adjustment for inland transportation will be calculated and updated monthly and based on the national monthly average diesel fuel price as determined by the Department of Energy, Energy Information Administration (EIA). The diesel fuel prices published by the EIA may be found via the following source:

EIA Website: http://eia.doe.gov

3.2. Baseline

3.2.1. The base period for determining the baseline diesel fuel price will be the month prior to the month the solicitation was issued. For option years the baseline will be the month prior to the month the Task Award award which includes options. In both cases the baseline used will be the national monthly average diesel fuel price from the EIA.

3.2.2. A monthly national average diesel fuel price shall be posted by SDDC using the price published by the EIA. This average price shall be calculated on or after the first of each month (“calculation month”) and be provided to contractors no later than the 15th of the same month. The calculation shall use data from the previous month (“data month”), and shall be applicable to the month which is two months after the calculation month and three months after the data month. The applicable month is determined by the sail date from POE in the initial offer. For example, the FAF calculated in July based on June data shall apply to cargo that was initially offered to sail from POE in September. If the cargo is advanced and ends up sailing in an earlier month, or sails in a later month (due to factors such as roll, shutout, or schedule change), there will be no change to the FAF. Using the above example, if the cargo was initially offered to a VOYDOC that was schedule to sail from POE in September, the FAF applicable to September shall be payable, even if the cargo sails in a different month.

3.3. Fuel Adjustment Application

3.3.1. The fuel adjustment surcharge on the inland CONUS portion of shipments will be based on the shipment’s origin state and POE (port of embarkation) or the POD (port of debarkation) and the shipment’s destination state.

3.3.2. For the purpose of determining the surcharge East Coast ports will include those within the states of Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North/South Carolina, Georgia, and Florida; Gulf Coast ports will include those within the states of Texas, Louisiana, Mississippi and Alabama: and West Coast ports will include those within the states of California, Oregon and Washington.

3.3.3. A different fuel adjustment surcharge will apply, depending on the type of shipment. A shipment may be a container shipment, a refrigerated container shipment, a breakbulk shipment with a weight/shipment unit less than or equal to 50,000 lbs., or breakbulk shipment where the weight/shipment unit exceeds 50,000 lbs. Carriers will select the appropriate table for determining the FAF applicable to a given shipment. FAF is payable per conveyance.

3.3.4. The Fuel Adjustment Surcharge will be calculated on six zones. The zones encompass movements from West Coast ports to West Coast states, movements from West Coast ports to rest of US, movements from East Coast ports to East Coast states, movements from East Coast ports to rest of US, movements from Gulf Coast ports to Gulf Coast states, and movements from Gulf Coast ports to rest of US.

Additionally, the Fuel Adjustment Surcharge will be broken out by:

Container Shipments Refrigerated Container Shipments Breakbulk Shipments Breakbulk Shipments Exceeding 50,000 lbs.

3.3.5. The equations for calculating the Fuel Adjustment Surcharge are:

3.3.5.1. Container Shipments

EC to EC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/ container mile*Average haul EC ports to EC points

GC to GC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/container mile*Average haul GC ports to GC points

WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/container mile*Average haul WC ports to WC points

EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/container mile *Average haul EC ports to Rest of US + (Monthly Average Fuel Price - Baseline Fuel Price)* Truck gallons/container mile *Average Truck component EC ports to Rest of US

GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)*Intermodal rail gallons/container mile *Average haul GC ports to Rest of US + (Monthly Average Fuel Price - Baseline Fuel Price)* Truck gallons/container mile *Average Truck component GC ports to Rest of US

WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)*Intermodal rail gallons/container mile *Average haul WC ports to Rest of US + (Monthly Average Fuel Price - Baseline Fuel Price)* Truck gallons/container mile *Average Truck component WC ports to Rest of US

Container Shipment Fixed Input Values for the Equations:

Average haul EC ports to EC points 154

Average haul GC ports to GC points 194

Average haul WC ports to WC points 83

Average haul EC ports to rest of US 1043

Truck Component EC ports to rest of US 108

Average haul GC ports to rest of US 1626

Truck Component GC ports to rest of US 77

Average haul WC ports to rest of US 2042

Truck Component WC ports to rest of US 77

Truck fuel factor gallons/container mile 0.1667

Intermodal rail fuel factor gallons/container mile 0.033

3.3.5.2. Refrigerated Container Shipments

EC to EC Surcharge= (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile*Average haul EC ports to EC points + Average haul EC ports to EC points/Average speed*Reefer unit gallons/hour)

GC to GC Surcharge= (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile*Average haul GC ports to GC points +Average haul GC ports to GC points/Average speed*Reefer

WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile*Average haul WC ports to WC points +Average haul WC ports to WC points/Average speed*Reefer

EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* (Truck gallons/container mile *Average haul EC ports to Rest of US + Average haul EC ports to Rest of US/Average speed*Reefer unit gallons/hour+Off duty time*Reefer unit gallons/hour)

GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile *Average haul GC ports to Rest of US + Average haul GC ports to Rest of US/Average speed*Reefer unit

WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile *Average haul WC ports to Rest of US + Average haul WC ports to Rest of US/Average speed*Reefer unit

Refrigerated Container Shipment Fixed Input Values for the Equations:

Average haul EC ports to EC points 243

Average haul GC ports to GC points 216

Average haul WC ports to WC points 42

Average haul EC ports to Rest of US 1103

Average haul GC ports to Rest of US 1384

Average haul WC ports to Rest of US 1783

Truck fuel factor gallons/container mile 0.1667

Reefer unit fuel factor gallons/hour 0.7

Average speed miles/hour 50

3.3.5.3. Breakbulk Shipments Less than 50,000 lbs.

trailer mile*Average haul EC ports to EC points

GC to GC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/trailer mile*Average haul GC ports to GC points

WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/trailer mile*Average haul WC ports to WC points

EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/trailer mile *Average haul EC ports to Rest of US

GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)*Intermodal rail gallons/trailer mile *Average haul GC ports to Rest of US

WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)*Intermodal rail gallons/trailer mile *Average haul WC ports to Rest of US

Breakbulk Shipments Less than 50,000 lbs Fixed Input Values for the Equations:

Average haul EC ports to EC points 264

Average haul GC ports to GC points 387

Average haul WC ports to WC points 157

Average haul EC ports to Rest of US 1022

3.3.5.4. Breakbulk Shipments Exceeding 50,000 lbs.

mile*Average haul EC ports to EC points

GC to GC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/ mile*Average haul GC ports to GC points

WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/ mile*Average haul WC ports to WC points

EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Conventional rail gallons/car mile *Average haul EC ports to Rest of US

GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Conventional rail gallons/car mile *Average haul GC ports to Rest of US

WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Conventional rail gallons/car mile *Average haul WC ports to Rest of US

Breakbulk Shipments Exceeding 50,000 lbs Fixed Input Values for the Equations:

Average haul EC ports to EC points 215

Average haul GC ports to GC points 300

Average haul WC ports to WC points 132

Average haul EC ports to Rest of US 847

Average haul GC ports to Rest of US 1632

Average haul WC ports to Rest of US 2165

Average haul GC ports to Rest of US 1808

Average haul WC ports to Rest of US 2138

Truck fuel factor gallons/trailer mile 0.1667

Truck fuel factor gallons/trailer mile 0.2192

3.3.6. Payment procedures.

3.3.6.1. For shipments paid using Syncada/U.S. Bank, the Fuel Adjustment Surcharge shall be fixed at the time of booking and shall be based on the date the booked vessel is scheduled to sail. When Fuel Adjustment Surcharge is payable, shippers shall include the applicable Fuel Adjustment Surcharge amount (plus or minus) to all shipments paid to the Contractor via their own documentation and payment system at the time that the original transactions are sent to Syncada. Contractors using the Syncada invoice procedure shall include the applicable Fuel Adjustment Surcharge amount (plus or minus) in their invoice.

3.3.6.2. For all shipments other than those paid using Syncada/U.S. Bank, Contractors are responsible for indicating on their shipment invoice whether a Fuel Adjustment Surcharge payment is due them, whether no Fuel Adjustment Surcharge payment is to be made or whether a Fuel Adjustment Surcharge payment is due SDDC. If a Fuel Adjustment Surcharge payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no Fuel Adjustment Surcharge payment, the Contractor shall indicate on the invoice “No Fuel Adjustment Surcharge”. Fuel Adjustment Surcharge for authorized agent shipments shall be paid using this process.

3.4 Changes to FAF Calculations

USTRANSCOM has commissioned a study to be conducted by the Volpe National Transportation Systems Center. The study shall analyze and refresh FAF to reflect updated market conditions. FAF updates include potential revisions to the Fixed Input Values and the calculation of FAF. After completion of the study, but before the rate refresh opens for Option Year One, the Government will modify FAF based on the results of this study. The updates will take effect 1 September 2020..