ABC’s of Expedited Freight 2005

ABC’s of Expedited Freight2005 CONFIDENTIAL

AgendaIntroductionsABC’s of Air FreightBusiness OpportunityWeb TrainingGuide to Optimal QuotingSecurity ProceduresForms CONFIDENTIAL

ABC’s of Air Freight A is for… -Airplanes -Airports -AirlinesB is for … -Build up or BreakdownC is for… -Cartage Agent -Cost - Competitive Landscape CONFIDENTIAL

1- A 757 is a wide body aircraft. True or False? 2- A wide body aircraft can handle upper-deck containers. True or False? (trick question) 3- It is best for us to sell shippers on palletized air freight shipments. True or False? Pre-Test CONFIDENTIAL

Narrow Body Wide Body All Cargo Aircraft Bellies are Bulk Loaded CONFIDENTIAL

Aircraft – Narrow Body Bulk Cargo Door Dimensions Cargo Capacity Cargo Volume Containers 55"w x 42"h139 cm x 106 cm 59"w x 47"h149 cm x 119 cm 55"w x 42"h139 cm x 106 cm 1,435 cu ft40 cu m 1,300 cu ft36 cu m 1,700 cu ft48 cu m Boxes (no containers) A2, A1 (all Cargo only) 17,000 lb7,727 kg 20,000 lb9,000 kg 25,000 lb11,000 kg 727 Boxes (no containers) A2, A1 (all Cargo only) 737/A320 Boxes (no containers) A2, A1 (all Cargo only) 757/DC8 CONFIDENTIAL

Narrow Body Wide Body All Cargo Bellies are Container Loaded Aircraft – Narrow Body CONFIDENTIAL

Aircraft – Wide Body Cargo Door Dimensions Cargo Capacity Cargo Volume Containers 5,634 cu ft159 cu m 4,030 cu ft114 cu m 116,800 lb53,091 kg 72,736 lb33,062 kg 120,306 lb54,685 kg 747 90"w x 65"h 90"w x 65"h 97"w x 65"h LD3, LD7, LD11/P9A LD2, LD3, LD4, LD8, LD11 767 777 5,720 cu ft160 cu m P9A, LD8, LD7, LD4, LD 3, LD11 CONFIDENTIAL

Narrow Body Wide Body All Cargo Aircraft Truck Contour CONFIDENTIAL

Aircraft – All Cargo Bulk Cargo Door Dimensions Cargo Volume Containers 134"w x 120"h340 cm x 310 cm 103"w x 134"h261 cm x 340 cm 747 5,450 cu ft154.3 cu m 4,030 cu ft114 cu m 767 CONFIDENTIAL

Aircraft – Containers LD-3 CONFIDENTIAL

Aircraft – Containers LD-8 CONFIDENTIAL

Aircraft – Containers CONFIDENTIAL

Airports ANC HNL SJU CONFIDENTIAL

Airlines ATA Alaska American America West Continental Delta Hawaiian Northwest Southwest US Airways United BAX Global Caribbean Transportation Services DHL Emery Forwarding FedEx Kitty Hawk Pacific Air Cargo UPS CONFIDENTIAL

$$$$$$$$ One package at a time… Build-up or Breakdown CONFIDENTIAL

+ 1 Day +.15-.20/lb +.10/lb D-F G and beyond Cartage Agent A-C CONFIDENTIAL

Cost UA/AA 8 ¢ 8 ¢ 50 ¢ Line Haul Origin Cartage Agent Destination Cartage Agent 20 ¢ CONFIDENTIAL

Cost Emery UA/AA 8 ¢ 8 ¢ $1.00 Line Haul Origin Cartage Agent Destination Cartage Agent 20 ¢ CONFIDENTIAL

Cost Emery 8 ¢ 10 ¢ 8 ¢ 10 ¢ $1.00 Line Haul Beyond Charge Origin Cartage Agent Beyond Charge Destination Cartage Agent 20¢ CONFIDENTIAL

Competitive Landscape CONFIDENTIAL

CriteriaOptimalAdded Cost Ready Time > 2 hr. window < 2 hr. window may require local pick-up special Close Time before 5pm after 5pm may require local pick-up special Dimensions < 36” H > 36” H < 107” L > 107” L may require upper deck freighter and/or special handling Density > 8.9 lbs./cubic ft. < 8.9 lbs./cubic ft. dim. weight charges will apply Unit Weight < 300 lbs./unit > 300 lbs/unit Single Heaviest Piecemay limit passenger aircraft options Breakdown Units can be subdivided Units must remain intact Shipper Status Known Unknown requires freighter when moved by air Guide to Optimal Quoting Mode Impact CONFIDENTIAL

Full money-back guarantee is NOT the industry norm Integres standard service level is 97% adjusted and 96% unadjusted Integres does offer a satisfaction guarantee If we deliver late, you can request that Integres adjust the price to the ‘service rendered’ Integres does offer a full money-back guarantee product We ‘buy up’ to a higher level of service Guarantees CONFIDENTIAL

Two major types of expedited freight Emergency Highly time sensitive Typically high lost opportunity cost implications Cost of trans small in relation to failure to deliver Usually unplanned Routine Perishables and non-perishable Usually planned Decision for expedited based on time and service requirements Higher value of goods (lower inventory levels) Characteristics of Expedited CONFIDENTIAL

CONFIDENTIAL

Air Freight Rank SIC SIC Description 1 50 Wholesale Trade, durable goods 2 35 Industrial & commercial machinery 3 51 Wholesale Trade, non-durable goods 4 36 Electronics 5 27 Printing & publishing 6 38 Measuring, analyzing instruments 7 73 Business services 8 37 Transportation equipment 9 23 Apparel 10 39 Misc. mfg industries Top 10 Air-freight SICs CONFIDENTIAL

Domestic (50 states, Puerto Rico and Guam) Known 200 pounds and above Multiple piece shipments Heaviest weight per piece <150 pounds Non- perishable Non-hazardous Ideal Characteristics CONFIDENTIAL

Expedited decision makers include: Sales (POs expire and charge-backs cost $$) Operations Customer Service Production planners (inbound) Buyers Project managers Warehouse and transportation managers Customer Identification CONFIDENTIAL

Ideal customer criteria Target SIC market High value goods (cost of obsolescence) ‘Leaders or bleeders’ Use speed to differentiate Accounts focused on JIT, SCM, or BTO Customers that ship heavy at month or quarter end Inbound and outbound Customer Identification CONFIDENTIAL

How often do you ship freight (>200 pounds) that requires time-definite expedited (defined as 1 to 5 days) service? What criteria do you use to select a provider when those situations arise? Do you get multiple quotes? How can we add our company to the approved supplier list? Who handles the routing for your time-critical inbound shipments? What is the impact to you, or your organization, when a provider fails to make the delivery on time? (CNC) How much of your time do you, or someone in your organization, spend tracking and tracing shipments? Does your current provider use state of the art ‘optimization’ software to search for the best route and rate on each of your shipments? Look for situations where the shipper had a failure (find the pain and make it hurt) Customer Qualification CONFIDENTIAL

ABC’s of Expedited Freight 2005