ETARIFF 400-N

1. eTARIFF 400-N Welcome to the AMSA � Introduction to Tariff 400-N

2. Housekeeping Items Turn cell phones and pagers to OFF or to vviibbbbrrrraaattee. Be sure to use only smoking areas designated by the hotel.

3. What is Tariff 400-N anyway? A replacement of Tariff 400 that is an electronic Zip Code driven, modified �single-factor� tariff.

4. Why replace Tariff 400? Tariff 400 is too complex � product of 60 years of revisions. Source of customer confusion; estimating problems and billing errors. Tariff needs to be modernized and made easier to use and to understand.

5. Major Componentsof New Tariff 3-Digit Zip Code to 3-Digit Zip Code Linehaul Rates ? Geographic/Labor Cost Based Complex accessorials cancelled and replaced with a hundredweight origin/destination charge to be shown as separate item Obsolete Accessorials Cancelled Full Packing Jobs on Hundredweight Rate Basis Partial Pack on Container Basis Rating/Estimating Totally Electronic

6. Measured Linehaul Cost Factors Base Linehaul Reflects Origin/Destination Cost Factors: Geographic Component - Cost of doing business in zip areas (travel expenses, meals, hotel rooms, taxes, tires, rent, utilities, and building repairs). Labor Index Component � Personnel costs (warehousemen, packers, helpers, and local drivers).

7. Restructured Transportation Charges Zip Code-Based Charges still include loading, unloading, vehicle transportation and basic 60� valuation. Charges also reflect expenses factors; same distance moves are no longer rated the same. Short Haul Factor established for shipments transported 800 miles or less.

8. Single-Factor Additional Service Charge Developed ATC, Stairs, Elevator, Long Carry and Piano and Organ Carry revenue incorporated into new Origin/Destination Service Fee. Weight based charges to be shown in new Item 135 by Service Area/Zip Code.

9. Container Service Packing rates apply on per hundredweight basis for full pack jobs or per container basis for partial pack jobs based on shipper�s election. Uses Hundredweight Packing Rates that are simple to bill and result in increased load efficiencies. Overtime, Debris Removal & Crating provisions retained.

10. Accessorials Restructured and Simplified Bulky articles simplified with one rate for all classifications. Bridges & Tolls changed to apply as advanced charges (Item 35). SIT P & D no longer alternates with transportation charges.

11. Obsolete Accessorials Cancelled Item 18, Shipments on Tour Item 29, COD Shipments Item 40, Signature Service Item 59, Travel Time Item 150, Empty Miles Item 165, Advertising on Carrier Equipment Item 197, Forklifts Item 205 & 206, Papering & Banding Item 220, Supervisory Personnel

12. New Tariff Attributes Provides quick and easy way to estimate and rate shipments Based on geographic/labor adjusted pricing Utilizes hundredweight packing rates that are simple to bill and result in increased load efficiencies Customer-Friendly pricing system that�s easy to understand and to explain A Tariff System that promotes accuracy and is audit-friendly

13. Benefits for GSA Fewer billing errors; fewer line items on invoices Reduced audit costs with simplified invoices Less confusing to the transferee; most services included in O/D service fee Controlled packing costs with cwt pricing Easy to understand costs based on zip codes No more surprise origin and destination charges

14. Tariff 400-N becomes effective January 1, 2002 The industry�s first electronic tariff that�s zip code based to provide fast, accurate pricing that�s easy to use and easy to understand.