February 4, 2016 David Arsenault President & CEO Hyundai Merchant Marine America Hyundai America Shipping Agency February 4, 2016

Hyundai Merchant Marine Founded: March 25, 1976 Global Transportation & Logistics Employees: 4,000 Headquarters: Seoul, South Korea America: Dallas, TX Fleet: 127 Vessels Container, Bulker, Tanker 120 Offices Covering 103 Ports Alliance: G6 16th Largest Container Carrier Terminals: WUT (WA) & CUT (CA) Disclaimer: This presentation material and accompanying comments are those of the presenter and not necessarily indicative of the views of HMM.

2015 Top 10 Key Industry Events Mega Ships => 30% Global Overcapacity Intermodal Complexity =>On Dock & Blocks Cargo Volumes Pre-Rec => Infrastructure Truck Capacity Shortages => Velocity Chassis Model Change => IEP Control

2015 Top 10 Key Industry Events WCO Labor Disruption => Congestion Fuel Prices Down => Pos. & Neg. Chinese Economic Slow Down Trans-Pacific Partnership Agreement Logistics Mergers & Acquisitions

Mega Ships => Mega Alliances 16 Carriers – 93% 4 Mega Alliances Same Departures Day Same Arrival Day Same Transit Times Commoditization Maersk & MSC CMA, China Shipping & UASC HMM, APL, MOL, NYK, OOCL & Hapag How To Differentiate? Rate Reductions – 1st Redefine Service - Next COSCO, K-Line, Yang Ming, Hanjin & Evergreen Alphaliner

U.S. Port Congestion – No Surprise 20+ Years Ago the U.S. Had the Most Advanced Transportation Network in the World (Ports, Terminals, Roads, Rail, Bridges, etc.) 2002-2006 Industry Headlines Warning about U.S. Infrastructure Not Keeping Pace With Growth “China Can Pitch More Than U.S. Can Catch” Congestion Would Have Happened Sooner if Not for the Great Recession ’08 -’09 Reduced Cargo Volumes Cargo Volumes Have Now Returned to Pre-Recession Levels & Same Infrastructure Problems Are Re-surfacing

Are Mega Ships To Blame? Short Answer is “No” – Not Entirely! Increased Cargo Volume Is the Primary Driver Container Vessel Capacity Had to Increase More Smaller Vessels vs. Fewer Larger Vessels Similar Impact on Marine Terminals Cargo Volume Burden has Been Shifted to Landside Operations and Infrastructure Grounded Terminal Operations Increased Densification Appointment Systems

What Is Ahead In 2016?

2016 Top 10 Key Industry Events Panama Canal Expansion => April? IMO SOLAS Container Weights => July Mergers & Acquisitions => Alliance Impact Automated Commercial Environment => Feb Grounded Ops => Terminal Automation

2016 Top 10 Key Industry Events Reduced Overcapacity Trend ILWU OCU Contract Expires – 6/30/16 Moderate Ocean Rate Recovery Continued Carrier Financial Stress Improve Booking Discipline

Emerging Trends – Vessel Utilizations ‘14 vs. ‘15 YOY Import Growth of +3.9% Overcapacity Expected to Continue

Emerging Trends 2016 - Idle Fleet Trend Idle Containership Fleet Rising Similar Level With Great Recession in ’09 Align Supply with Demand

Q & A Thank You February 4, 2016 David Arsenault President & CEO Hyundai Merchant Marine America Hyundai America Shipping Agency February 4, 2016