1. ASIA-MEMPHIS EXPRESS

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

3. 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

4. BENEFITS TO THE CUSTOMER
Speed
Transit Time Consistency
Competitive Price

5. In fact, the speed of our 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!

6. OPERATIONS

7. The Asia-Memphis Express freight flow:
OPERATIONS
The Asia-Memphis Express freight flow:
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

8. OPERATIONS Our process is better at every step along the way
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

9. Shaves days off of transit times and provides maximum consistency
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

10. 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

11. Continuing the time-savings:
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.

12. Leveraging the power of our distribution network:
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.

13. TRANSIT TIME How can we do it so quickly?
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 days
Net result is 21 to 23 days total transit time

14. Shanghai/Memphis Express Service
Transit Times

15. Shanghai/Memphis Express Service
Transit Times

16. Memphis is certified as a CFS by U.S. Customs
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 3rd largest in the country, with 5 Class 1 railroads

17. PRICING

18. 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.

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

20. PRICE EXAMPLE Sample Shipment Shanghai to Knoxville, TN (local)
Cube: 3.6 cubic meters ( cubic ft)
Weight: 3000 kilograms (6614 lbs)
Charges
Ocean Frt: $157/cbm or $343/1000K (whichever is higher) = $
AMS Fee - $25.00 per shipment
ISF Fee - $25.00 per shipment
Document Fee - $50.00 per shipment
Customs Clearance Fee: $ per shipment
Courier Fee: $15.00 per shipment
Duties and Taxes (hypothetical) - $312.00
Destination CFS Handling/Unloading Fee - $45.00
IT Cancellation Fee: $20.00 per IT (If not cleared in MFS)
Warehouse Loading out Fee: $2.50 per 100 lbs = $165.35
Delivery Charge (hypothetical) - $198.42
Total Charges: $

21. BENEFITS TO CUSTOMER

22. What about shipment visibility?
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.

23. 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.

24. Averitt International
CONTACT
Customer Contact
Averitt International

25. Primary Sales Contacts
Charlie McGee, Vice President of International Solutions
(office)
(cell)
Tony Cangelosi,
Director International Solutions
(office)
(cell)
Scott Polkow
(direct)
Bill Ramia,
Vice President Customs Brokerage
(direct)
Jennifer Shuster
Director International Solutions
(direct)
Cindy Bumbalough
(direct)

26. CONTACT Pricing Contact Jessica Goodwin Import Pricing Leader
(office)

27. International Operations Mgr. Import Operations Leader
CONTACT
Operations Contacts
Sherry Neely
International Operations Mgr.
(office)
Jane Young
Import Operations Leader
(office)