General Rate Increase - Effective December 24, 2007

December 12, 2007

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 24, 2007. Exceptions from the GRI are as follows;

TLI 1590-00-0001, Furniture N.O.S., no change.
TLI 1545-25-0002, Halibut, N.O.S., is changed to 13.70 cwt.
TLI 1545-50-0002, IQF N.O.S., is changed to 12.98 cwt.

We appreciate your business and look forward to serving you in 2008.

Sincerely,
Tim Shaffer, General Manager

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