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Crowley Valid with C-TPAT

Maritime Activity Reports, Inc.

May 25, 2005

Crowley Liner Services has been notified by US Customs and Border Protection (CBP) of its successful full-company "Validation" in the Customs-Trade Partnership Against Terrorism (C-TPAT) Program. Less than 10 percent of the approximately 9,000 individual members in the C-TPAT program have undergone and passed the rigorous validation audit, which can provide a host of benefits for customers. Crowley's C-TPAT program certification and validation results in a more secure supply chain and a reduction in customers' time-to-market transfer of cargo from point of origin loading to delivery destination. Shippers who are also C-TPAT program members that utilize Crowley for the sea carrier portion of their cargo movement can expect a reduction of US Customs targeting and inspection of their shipments upon arrival in U.S. Ports. In the event of a random Custom's inspection, C-TPAT members will move to the head of the line for inspection scheduling. Additionally, if there were an emergency affecting commerce or trade infrastructure because of a terrorist event or attack, C-TPAT members will be given first preference in restarting trade operations.

The notification of Crowley's validation was made during a recent international trade symposium in Miami, which was attended by CBP Commissioner Robert Bonner. C-TPAT is a voluntary government - private sector partnership program between U.S. Customs and stakeholders in the worldwide supply chain. The program focuses on the protection of the international cargo trade system from acts of terrorism, and Crowley was one of the very first companies to be C-TPAT certified by Customs after the program's inception. The extensive validation of Crowley's C-TPAT program involved Custom's personnel on-site inspection and review of all domestic and foreign operations and verification of shore side facility and vessel physical and procedural security, plans and audits, access controls, company security education and training, manifest/documentation and processing, maritime threat awareness and personnel background clearances and identification.

"Crowley has been a leader in the development of effective Maritime Security procedures, practices and partnerships with government for many years," said Ed Alford, Crowley's Director of Security. "Our longstanding policy has been to fully comply, implement, monitor and maintain the highest security standards in the industry. Safety and security are top priorities for Crowley and are core to the way we operate and conduct our business." There are currently over 9,000 individual members in the C-TPAT program including: importers, terminal operators, customs brokers and freight forwarders, sea/rail/truck and air commercial carriers and foreign manufacturers. Less than 10 percent of program participants are fully validated. Crowley has participated in other Customs industry programs like the Super Carrier Initiative Agreement (SCIA) Program, which deters and protects cargo and vessels from contraband, narcotics and stowaways, for over 20 years. This elite program has very few members worldwide, and incorporates baseline security standards that reflect the highest degree of due diligence recognized by Customs. Crowley also supports the Business Anti-Smuggling Coalition program (BASC), which is a shipper/exporter industry coalition within many international operation areas. All Crowley operating port terminals and vessels meet and exceed strict US Coast Guard facility and vessel maritime security regulations.

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