WHAT'S UP DOC?

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" background="136fd5a3.jpg"> <div> <FONT SIZE="6" COLOR="#FFFF33" FACE="Lucida Sans" ><I><B>COMPLETE TRAFFIC SERVICE INC.</B></I></FONT><B>    </B><B> |     </B><A HREF="index.htm" TARGET="_top" TITLE="COMPLETE TRAFFIC SERVICE INC."><U><B>home</B></U></A></div> <div> <A HREF="id2.htm" TARGET="_top" TITLE="OUR STORY"><U>OUR STORY</U></A>   |   <A HREF="id3.htm" TARGET="_top" TITLE="SERVICES"><U>SERVICES</U></A>   |   <A HREF="id4.htm" TARGET="_top" TITLE="CODE OF ETHICS"><U>CODE OF ETHICS</U></A>   |   <A HREF="id6.htm" TARGET="_top" TITLE="CONTACT US"><U>CONTACT US</U></A>   |   <B>WHAT'S UP DOC?</B></div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="137d2043.jpg"> <div> <IMG SRC="15fc0d50.png" border=0 width="192" height="213" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> </td> <td valign="top" height=390 BGCOLOR="#FFFFCC" TEXT="#080000"> <bR> <div> <I>WHAT'S UP, DOC?</I><FONT SIZE="3" COLOR="#000000" FACE="Arial" > </FONT></div> <div> <I>A sampling of recent news reports and information of interest to the world of transportation</I></div> <div> <I><B>Diesel Fuel Prices</B></I><I>: Since topping the three dollar mark in August, the D.O.E weekly diesel fuel index dropped steadily to arrive at 2.506 on November 6. Then suddenly, on November 13 it grew by almost five cents to 2.552, probably reflecting increased use of heating fuel oil with the onset of cooler weather. This escalation slowed down somewhat, but continued with the index reaching 2.567 on November 27. This number is almost nine cents higher than it was a year ago. As if to rain on our parade, Transport Topics reported earlier this fall that the D.O.E. expects the index to rise for seven straight months and to stand at 2.721 next May. Who really knows?</I></div> <bR> <div> <I><B>LTL'S Future?: </B></I><I>It appears that the LTL segment of the trucking industry is becoming more and more consolidated into large carriers with extensive geographic coverage. The USF group of companies, itself a product of carrier mergers, was bought by Yellow Roadway Corporation in the summer of 2005. Earlier this year, the trend continued when UPS acquired Overnite Transportation. On November 20</I><FONT SIZE="1" COLOR="#0000FF" FACE="Arial" ><I>th</I></FONT><I> we learned of the acquisition of The Connection Company by Saia, Inc. parent of Saia Motor Freight. This followed on the heals of Vitran Corporation, the Canadian parent of Vitran Motor Express, taking over PJAX Freight System. </I></div> <bR> <div> <I><B>Rate Increases: </B></I><I>On November 3</I><I><B> </B></I><I>FedEx announced a rate increase for FedEx Express of 5.5%, partially offset by a 2% reduction in the fuel surcharge. The reduced fuel surcharge will be expanded to apply on Residential Delivery and Delivery Area surcharges. Details of these changes, which will become effective on January 1, can be found on </I><A HREF="http://www.fedex.com" TARGET="_top" TITLE="http://www.fedex.com"><U><I><U>www.fedex.com</U></I></U></A><I> . </I></div> <div> <I>Not to be outdone, on November 17 UPS announced their price increase of 6.9%, again partially offset by a 2% reduction in the fuel surcharge. The new UPS rates, to be effective on January 1, will be posted on </I><A HREF="http://www.ups.com" TARGET="_top" TITLE="http://www.ups.com"><U><I><U>www.ups.com</U></I></U></A><I> on December 1.</I></div> <bR> <bR> </td> </tr></table></body>