General Rate Increase - Effective December 1, 2008

November 20, 2008

Dear Customer:

Coastal Transportation, Inc. has filed with the Surface Transportation Board a general rate increase (GRI) of 5.4% in our Alaska Tariff STB CSIW 8. The effective date of the GRI is December 1, 2008. Exceptions from the GRI are as follows;

TLI 1545-95-0002, Crab, NOS, is changed to $19.55 cwt.
TLI 1760-00-0002, Home packs NOS, is $30.00 cwt.
TLI 0000-20-0001, Freight NOS, Ordinary REQ Refer, is $28.31 cwt.
TLI 1575-10-0001, Fruits, Vegetables, Chill, is $28.31 cwt.
TLI 2310-00-0001, Paints, Stains, Varnishes, is $11.457 cwt.
TLI 1260-00-0001, Compounds, Cleaning, is $11.457 cwt.
TLI 1130-00-0001, Beverages, is $12.69 cwt.
TLI 1560-00-0001, Foodstuffs, is $12.69 cwt.

We appreciate your business and look forward to serving you in 2009.

Sincerely,
Tim Shaffer, General Manager

Our schedule information can be found on our web site: http://www.coastaltrans.com.