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Crowley Logistics Among First Ocean Transport Intermediaries (OTI) to Apply For Entrance into New Customs-Trade Partnership Against Terrorism (C-TPAT) Program

(Jacksonville, Fla.; Jan. 3, 2003) – Crowley Logistics became one of the first Ocean Transport Intermediaries (OTI), to submit an application to join the U.S. Customs Services new program, Customs-Trade Partnership Against Terrorism (C-TPAT).

As U.S. Customs enters phase three of the C-TPAT program rollout, they have opened the door for participation by OTI, Broker/Freight Forwarders and non-vessel operating common carriers (NVOCC). The program was established by U.S. Customs following the attack on the United States on Sept. 11. It is designed to develop a more secure border environment by improving the security for the transportation of passengers, crew conveyances and cargo throughout the commercial process.

Crowley acting as an OTI, Air Freight Forwarder, NVOCC and Freight Consolidator has agreed to expand its relationship with U.S. Customs through the anticipated signing of an agreement regarding security policies and procedures for themselves as well as other business partners in the supply chain. Crowley will, among other things, implement a verifiable, documented program to enhance security procedures and will work with Customs on a number of things, including the exchange of certain intelligence and conducting joint security surveys domestically and offshore.

“Crowley is demonstrating its responsiveness and attention to the issue of security through this latest application,” said Tom Crowley Jr., Chairman, President and CEO of Crowley Maritime Corporation. “Our liner services group, has already been accepted into C-TPAT under the Ocean Carrier phase.”

As part of the agreement, Crowley will review facilities’ security to ensure it is sufficient, enhance the process for obtaining timely and accurate shipment information from shippers, review and enhance all shipping and receiving controls, ensure the integrity of security for its information systems, intensify training of employees on security awareness and improve its service provider profiles to include a more in-depth knowledge of their documented security procedures.

“Through this partnership with U.S. Customs, we will continue to update and enhance our current security procedures,” said Ron Stalvey, Crowley’s director of freight services. “We will further coordinate security processes into the daily activities of our employees. This allows everyone including our vendors and customers to work together on a united front for security.”

U.S. Customs Service Commissioner Robert C. Bonner said, “The partnership will work best only if it is comprehensive. This marks the next level of a program that will simultaneously protect national security and promote the more expeditious processing of commerce.”

Crowley Logistics, a third-party logistics provider, offers supply chain management, freight consolidation, warehousing, transportation management, and cross-docking services throughout the United States, Central America and South America. The company’s Transportation Management Center serves as the heart of its logistics framework, enabling clients to combine and tailor services as needed, and tap into the company’s sophisticated materials and shipment tracking technology.

Crowley Logistics, headquartered in Jacksonville, Fla., is a subsidiary of Oakland-based Crowley Maritime Corporation and is part of its liner segment. The corporation, founded in 1892, is primarily family- and employee-owned, and is engaged in worldwide logistics, liner services, contract towing and transportation, energy support services, ship assist and escort services, vessel management and petroleum and chemical marine transport. Additional information about Crowley its subsidiaries and business units may be found on the Internet at www.crowley.com.

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