1. 2015 NCBFAA Annual Conference NCBFAA Shippers Association

2. Emergence of Shippers Associations Shipping Act of 1984 Ocean Shipping Reform Act

3. NVOCC direct contract with carrier Co-Load with potential competitors Shippers Associations Shipping Methods

4. Shippers associations are required to be not-for-profit. Shippers associations are not immune from antitrust laws. Management of an association must be independent of the members. OTI License and Bond required for inclusion in contracts. Operational Guidelines

5. Established Working Relationship Realistic Expectations SponsorsMembers Support ASSOCIATION SUCCESS ASSOCIATION FORMATION CREDIBILITY

6. Barriers to Success Potential members try to negotiate with the association. Protectionist issues - refusal to share information with Association management. Potential members think they are too big or too small. Unskilled management company. Members that do not report shipments “fairly”. Benchmarking Rates.

7. Improve international market reach. Control carrier bid/bullet rate process. Provide leverage for rates. Supplement member’s staff. Provide framework for rate and assessorial updates. Core Competence Of Management Co.

8. Rate reductions – Market intelligence. Multiple carrier weekly sailings. Multiple options during critical peak sailings. Improved visibility with the steamship lines. Customer service at higher levels. Access to multiple contracts with no exposure. Quick reaction to accessorial changes. Member is shipper of record for the carrier. Members control the Association. Refund of excess revenue. Association Benefits

9. Individual Savings Vary Location. Willingness to “think outside of the box”. How well members and their agents know their markets. How well members can project their requirements. How often we file member’s rate requests…that result in moving cargo.

10. NCBFAA Shippers Association formed. Worldwide Logistics retained as management company. Smaller NVO’s all in. Larger NVO’s support specific contracts. Assist members in confronting deregulation. 1999

11. Rates go online through new partner CargoSphere LCL and LTL added to offerings 2002 2004 1999

12. Improve operations and communications Improve CargoSphere interaction and contract visibility Fine tune carriers and markets 2014 2005 2002 2004 1999

13. Major system updates 3Q that will improve response and presentation of our member’s shipping and billing 2014 2005 2002 2004 1999 2015

14. Why did we choose CargoSphere as a partner? Specialized supplier of technology for management of buy-side contracts and rates and sell side rates and quotations. CargoSphere is specialized just on needs of freight forwarders and NVOCC’s - regional and global. One of world’s leading providers with over 3,000 users in 46 countries. Founded in 1999 and serving the NCBFAA-SA since 2002. We have grown with CargoSphere

15. Why use CargoSphere and what is its value? We enter our rates into CargoSphere and use CargoSphere to manage our contracts. We use the CargoSphere Rate Mesh to ‘share’ them with all members that have a CargoSphere system. The CargoSphere system is better than spreadsheet delivery always current always available searchable and filterable can be automatically used in quotes on CargoSphere quoting system

16. Do you have to use CargoSphere? No, we can give you rates in spreadsheet form. Most members now use CargoSphere. CargoSphere has over 3,000 active users Over 6,000 contracts managed Reduces the time and increases the accuracy of quotes back to our members Reduces manpower required. CargoSphere has a special commercial offer for our shipper association members. Go to their booth to learn more.

17. NCBFAASA 1999-2001 US IMPORT US EXPORT

18. NCBFAASA 2001-2005 US IMPORT US EXPORT

19. NCBFAASA 2005-2010 US IMPORT US EXPORT

20. NCBFAASA 2010-2015 US IMPORT US EXPORT

21. NCBFAASA CARRIER COVERAGE MAERSK CCNI

22. NCBFAASA CARRIER COVERAGE MAERSK CCNI YML

23. NCBFAASA CARRIER COVERAGE MAERSK CCNI HANJIN YML

24. NCBFAASA CARRIER COVERAGE MAERSK CCNI HANJIN YML OOCL

25. NCBFAASA CARRIER COVERAGE MAERSK CCNI HANJIN YML OOCL NYK

26. NCBFAASA CARRIER COVERAGE MAERSK CCNI HANJIN YML OOCL NYK MARFRET

27. NCBFAASA CARRIER COVERAGE MAERSK CCNI HANJIN YML OOCL NYK MARFRET COSCO

28. NCBFAASA CARRIER COVERAGE MAERSK CCNI HANJIN YML OOCL NYK ZIM MARFRET COSCO

29. NCBFAASA CARRIER COVERAGE MAERSK CCNI HANJIN YML OOCL NYK ZIM MARFRET COSCO SEALAND

30. NCBFAASA EXPORTS SOURCE: BROOKINGS INSTITUTE

31. FCL ACTIVITY

32. MEMBERSHIP

33. TEU PERCENTAGE SHIPPED BY MEMBER. Chart illustrates that SA not dependent on large members for survival. Smaller companies are taking advantage of SA as NCBFAA envisioned in 1999.

34. GLOBAL MARKET – MEMBER PERSPECTIVE  Frustration over unstable rates – monthly GRI’s.  Constant increases squeezing member profits and straining customer relationships.  Congestion = lost business.  Carrier service levels are in a downward spiral.  Equipment availability.  Sufficient chassis.  Decline in Door Rates (SD) versus CY rates.  Lift capacity.  Terminal congestion.  Customer Service.

35. CUSTOMER SERVICE SUPPORT  NCBFAASA fields an average of 200 emails per day.  60% rate issues.  Rate requests.  Rate lookup in CargoSphere and SA contracts.  30% problem solving.  Rating errors.  Space issues.  Securing equipment.  10% service information.  Routing look up.  Transit time.  Carrier announcements.

36. MAINTENENCE  NCBFAASA signed 575 contract amendments during 2014.  Constant Monitoring of carrier contracts for updated GRI’s and surcharges.  Continuous updating of rate sheets.  Continuous updating of CargoSphere.  Carriers require updated OTI - Bond and notification on expired or revoked bonds.

37. PARTNER PROGRAMS  LCL Partner - Carotrans  LTL Partner - Landstar  Online Rates - CargoSphere

38. KEEPING IT COST EFFECTIVE  Container fees have not increased since NCB was introduced in 1999.  Membership dues – tiered $$$ levels based on employees.  NCB operates on very thin margins  Balancing of providing quality customer service vs controlling rate shopping  Any NEW first year member can join for 1 year for $100

39. WHAT DO WE DO  Keep Shipping simple.  Use NCBFAASA contacts to resolve carrier issues.  Provide Alternative pricing to your existing portfolio of carrier contracts.

40. WHY MEMBERS USE NCBFAASA  Provide customer service that is lacking from the steamship lines.  Help members avoid the aggravation of contract maintenance.  Access to competitive rates without signing your own contract.  Ability to access online rates via CargoSphere.  Low cost to use NCBFAASA contracts.  Market information.

41. Q&A FOR YOUR SHIPPERS ASSOCIATION