Data aggregation GLN ICS filing freight forwarders Eric

Data aggregation GLN ICS filing freight forwarders Eric Geers, Director Product Management, Maritime & EU Customs products

Descartes by the Numbers 30 Years Serving the Logistics Industry Financials • • • $125 M+ revenue run rate $600 M+ market capitalization 30 consecutive quarter of record adjusted EBITDA performance Toronto, ON Waterloo, ON (Corporate HQ) Pittsburgh, PA Silver Spring, MD Atlanta, GA Miami, FL Sweden Denmark Netherlands Belgium Slovakia France Slovenia UK Tokyo, Japan Spain Shanghai, China Suzhou, China Scale • 8, 000+ customers • 700+ employees globally • World’s largest logistics messaging network • 164, 000+ connected parties • 160+ countries : DSGX : DSG

Descartes Logistics Technology Platform The Fusion of: • The Global Logistics Network – Applications Community The industry’s most comprehensive logistics, regulatory and commercial messaging network • The Logistics Application Suite – The industry’s broadest array of modular interoperable web and wireless logistics management solutions • The Global Logistics Community Network Descartes Logistics Technology Platform – The world’s most extensive global multi-modal logistics community

Descartes Global Logistics Network (GLN) Air Carriers 3 PLs, NVOCCs & Forwarders Ocean Carriers Mobile Service Providers Ground Carriers Rail Carriers Manufacturers, Retailers, Distributors Descartes GLN™ Customs, Brokers & Border Crossing Document Exchange Services Connectivity Data Transformation Reporting Services Imaging & Archiving Data Quality Monitoring Regulatory Agencies

Data source aggregration GLN Data consolidation & visibility services Customer applications Single Window applications COMCIS Shipper Subscription Management Descartes Global Logistics Network™ PO Packing list Invoice Shipment House B/L e. Freight Common framework messages: - SDM (Security Data Message Format) - TS (Transportation Status) - CRS (Common Reporting Scheme) Container Status Vessel Status Container Status B/L AIS provider Forwarder CSD Container Security Device Ocean Carrier Port/PCS Sailing schedules provider Terminal

GLN Data aggregation

COMCIS aggregation services (1) • Main aggregation services in COMCIS: – CSD service – Ocean carrier status service • Target groups: – Freight forwarders & 3 PL/4 PL, both large companies and SME’s – International shippers • SAAS business model: – Fee per transaction and per service – Exact fee determined by volumes and data providers

COMCIS aggregation services (2) • End user benefits: – Different data sources available via standardized messages – Lower set-up and operating costs by using an existing shared platform instead of point-point EDI links – Scalability and quick on- boarding by re-using existing connections to data sources (e. g. carriers, CSD providers) – Sustainability and flexibility – GLN has a track record of robust and fast communication, processing more than 4, 5 billion messages a year

ICS-SEAP solution forwarders • ICS Entry Summary Declaration (ENS): Customs declaration for risk analysis on safety & security (24 hour before loading in case of deep sea) • Currently ICS filing mainly sent by ocean carriers, demonstrated in Smart CM • Within COMCIS we demonstrated automated ICS freight forwarder filing for ocean transport • Challenges for the forwarder: – 27 different EU country systems – Knowing the Customs filing country, office of first & subsequent entry & ETA – Knowing the route of the vessel • Advantages of forwarder filing: – Better quality data for risk analysis Customs -> condition for facilitations (e. g. prerelease) – Forwarder is in control of the process

Data flow and architecture Sailing Schedules DHL Sea Shipment File Input format Ocean Processor BE Input ENS Global Filer Output ENS NL Filter DB Translation Tables e. g. UNLOcode into customs office code DB UK

Uploaded in the ICS Global Filer

ICS-SEAP solution forwarders • Target group – Freight forwarders: large and medium freight forwarders • SAAS business model – Transaction fee per declaration, determined by volume • End user benefits: – Easy to use ICS solution in more than 20 EU Member States – Data aggregation and enrichment (sailing schedules) – Better quality information for risk analysis & Customs facilitations (green lanes, pre-release) – Potential cost savings – Frontrunning multiple filing discussions EU