ASIAMEMPHIS EXPRESS WHAT IS ASIAMEMPHIS EXPRESS AsiaMemphis Express

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ASIA-MEMPHIS EXPRESS

ASIA-MEMPHIS EXPRESS

WHAT IS ASIA-MEMPHIS EXPRESS? Asia-Memphis Express is our import less-than-container load (LCL) service from

WHAT IS ASIA-MEMPHIS EXPRESS? Asia-Memphis Express is our import less-than-container load (LCL) service from Asia to our network.

WHAT IS ASIA-MEMPHIS EXPRESS? • Unlike anything else being done in the industry •

WHAT IS ASIA-MEMPHIS EXPRESS? • Unlike anything else being done in the industry • Integrating LCL service with LTL network • Allows us to provide great service from Asia • Faster speed • Seamlessness • Predictability • Dependability

BENEFITS TO THE CUSTOMER • Speed • Transit Time Consistency • Competitive Price

BENEFITS TO THE CUSTOMER • Speed • Transit Time Consistency • Competitive Price

HOW MUCH FASTER IS IT? Our new service is the fastest traditional ocean service

HOW MUCH FASTER IS IT? Our new service is the fastest traditional ocean service in the market! In fact, the speed of our service offers an alternative to the speed of our competitors’ “expedited” services (of course, without the expedited cost)! We are able to cut up to 10 days from the current transit times offered in the market!

OPERATIONS

OPERATIONS

OPERATIONS The Asia-Memphis Express freight flow: 1) 2) 3) 4) 5) 6) 7) Our

OPERATIONS The Asia-Memphis Express freight flow: 1) 2) 3) 4) 5) 6) 7) Our Asian partners load the container in Asia The container is booked all the way to Memphis Freight travels through LA/Long Beach ports Offloaded and sent via rail to Memphis Container drayed at Memphis rail yard to MFS Container transloaded and deconsolidated at MFS Freight then integrated into our domestic LTL distribution network

OPERATIONS How is this better than traditional LCL service? Our process is better at

OPERATIONS How is this better than traditional LCL service? Our process is better at every step along the way • At origin (Asia) • At LA/Long Beach • At Memphis • At Final Destination

AT ORIGIN Partnership with China International Freight (CIF) and other forwarders in Asia: -

AT ORIGIN Partnership with China International Freight (CIF) and other forwarders in Asia: - Provides us with “critical mass” to regularly ship LCL containers on a fixed schedule (one sailing per week to start) - Shaves days off of transit times and provides maximum consistency

AT LA/LONG BEACH PORTS The real time-saver: - At the ports of LA/Long Beach,

AT LA/LONG BEACH PORTS The real time-saver: - At the ports of LA/Long Beach, the operations of this service REALLY helps save time - The traditional CFS warehouse who represents most of the forwarders in the Asia market unloads the cargo from the ocean container at LA/Long Beach and needs to wait until enough international LTL cargo builds up before moving the cargo via domestic rail to each destination. This can take from 2 days to 2 weeks. -Our containers move immediately from the vessel to the rail at the ocean carrier’s terminal and then directly to Memphis

IN TRANSIT TO MEMPHIS Continuing the time-savings: - While the container is en route

IN TRANSIT TO MEMPHIS Continuing the time-savings: - While the container is en route to Memphis the Customs Entry is filed to allow for most cargo to be pre-cleared prior to arrival at Memphis. -Additionally, since our Memphis service center is certified by US Customs and Border Protection as a Bonded CFS (Container Freight Station), imported containers do not have to wait at the rail to clear customs. They are immediately pulled from the rail to our Memphis facility for clearance if not already cleared in transit.

AT MEMPHIS Leveraging the power of our distribution network: - Once the containers arrive

AT MEMPHIS Leveraging the power of our distribution network: - Once the containers arrive at Memphis, we are already several days ahead of the traditional LCL importing process. - Here, we use the power of our LTL network, especially our Memphis shuttle network, to weave the LCL freight into our LTL network and finish out the process strong, saving even more days.

TRANSIT TIME How can we do it so quickly? 1. 2. 3. 4. 5.

TRANSIT TIME How can we do it so quickly? 1. 2. 3. 4. 5. 6. 7. Ocean transit Shanghai to Long Beach 10 days Unload vessel to put on rail add 3 days Rail departure to arrive Memphis add 5 days Unload train, mount equipment add 1 day Dray to CFS – Memphis SVC add 1 day Process at Memphis SVC same day Transit to all destinations in South add 1 - 3 days Net result is 21 to 23 days total transit time

Shanghai/Memphis Express Service Transit Times

Shanghai/Memphis Express Service Transit Times

Shanghai/Memphis Express Service Transit Times

Shanghai/Memphis Express Service Transit Times

WHY MEMPHIS? - Memphis is centrally-located in the heart of our distribution network and

WHY MEMPHIS? - Memphis is centrally-located in the heart of our distribution network and we load direct from MFS to nearly 80% of the facilities in our network - Memphis is certified as a CFS by U. S. Customs - Memphis is one of the most secure facilities in our network and has the most space on the dock -The Memphis rail yard is the 3 rd largest in the country, with 5 Class 1 railroads

PRICING

PRICING

PRICE How will Asia-Memphis Express pricing compare to traditional LCL pricing? - We have

PRICE How will Asia-Memphis Express pricing compare to traditional LCL pricing? - We have built costing models that produces rates at the same levels as our competitors who are breaking the container in LA and moving the freight inland. Through rates are available from Asia to all destinations in the South and Midwest - Our pricing is competitive with the traditional model of LCL shipping even though our service is up to 10 days faster than the traditional model.

PRICE Additional varying cost factors 1. Origin Documentation fees 2. Ocean freight per weight

PRICE Additional varying cost factors 1. Origin Documentation fees 2. Ocean freight per weight or measure 3. Destination CFS charges some flat fees and some per cwt/cubic meter charges 4. Customs clearance fees, Courier fees, duties, taxes exam fees associated with US Customs Clearance 5. Delivery cost (normal truck rate structure) from the Destination CFS/Service Center to the customer’s door

PRICE EXAMPLE Sample Shipment Shanghai to Knoxville, TN (local) Cube: 3. 6 cubic meters

PRICE EXAMPLE Sample Shipment Shanghai to Knoxville, TN (local) Cube: 3. 6 cubic meters (127. 133 cubic ft) Weight: 3000 kilograms (6614 lbs) Charges 1. Ocean Frt: $157/cbm or $343/1000 K (whichever is higher) = $1029. 77 2. AMS Fee - $25. 00 per shipment 3. ISF Fee - $25. 00 per shipment 4. Document Fee - $50. 00 per shipment 5. Customs Clearance Fee: $125. 00 per shipment 6. Courier Fee: $15. 00 per shipment 7. Duties and Taxes (hypothetical) - $312. 00 8. Destination CFS Handling/Unloading Fee - $45. 00 9. IT Cancellation Fee: $20. 00 per IT (If not cleared in MFS) 10. Warehouse Loading out Fee: $2. 50 per 100 lbs = $165. 35 11. Delivery Charge (hypothetical) - $198. 42 Total Charges: $2010. 54

BENEFITS TO CUSTOMER

BENEFITS TO CUSTOMER

TECHNOLOGY What about shipment visibility? Our Import Customer Service Team will provide constant updates

TECHNOLOGY What about shipment visibility? Our Import Customer Service Team will provide constant updates to our customers from the time a shipment is booked at origin until it arrives at destination. For larger customers we provide total visibility from the Asia origin to Memphis through our on line track and trace systems. Each Asia-Memphis Express shipment will be assigned a 973 PRO. Once the shipment arrives in Memphis, customers will have traditional visibility online just like with all LTL shipments.

CUSTOMS BROKERAGE Can we provide customs brokerage services? Yes, Averitt Customs Brokers will handle

CUSTOMS BROKERAGE Can we provide customs brokerage services? Yes, Averitt Customs Brokers will handle all the customs clearance and payment of duties for international shipments. The customer will receive one invoice from Averitt for all of the transportation costs, customs broker costs, duties and taxes and exam fees if any are incurred.

CONTACT Customer Contact Averitt International 866 -208 -0167 internationalimports@averittexpress. com

CONTACT Customer Contact Averitt International 866 -208 -0167 internationalimports@averittexpress. com

Primary Sales Contacts Charlie Mc. Gee, Vice President of International Solutions 931 -520 -2719

Primary Sales Contacts Charlie Mc. Gee, Vice President of International Solutions 931 -520 -2719 (office) 704 -905 -2041 (cell) cmcgee@averittexpress. com Tony Cangelosi, Director International Solutions 910 -755 -3480 (office) 440 -477 -5046 (cell) tcangelosi@averittexpress. com Scott Polkow Director International Solutions 262 -812 -7563 (direct) spolkow@averittexpress. com Bill Ramia, Vice President Customs Brokerage 901 -355 -4787 (direct) bramia@averittexpress. com Jennifer Shuster Director International Solutions 931 -260 -3939 (direct) jshuster@averittexpress. com Cindy Bumbalough Director International Solutions 214 662 -8679 (direct) cbumbalough@averittexpress. com

CONTACT Pricing Contact Jessica Goodwin Import Pricing Leader 931 -525 -5244 (office) importquotes@averittexpress. com

CONTACT Pricing Contact Jessica Goodwin Import Pricing Leader 931 -525 -5244 (office) importquotes@averittexpress. com

CONTACT Operations Contacts Sherry Neely International Operations Mgr. 931 -520 -5615 (office) sneely@averittexpress. com

CONTACT Operations Contacts Sherry Neely International Operations Mgr. 931 -520 -5615 (office) sneely@averittexpress. com Jane Young Import Operations Leader 931 -525 -5340 (office) jyoung@averittexpress. com