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UPS Air and Ocean freight capabilities customer deck
- 2. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 2 Today¡¯s marketplace ? Slower economic growth is putting revenue and profit pressure on many companies ? Companies are now positioning themselves for economic recovery ? Security and regulatory programs are growing more complex ? Freight forwarding players are changing ? While global supply chains are increasingly sourcing from overseas, companies also continue to evaluate new opportunities such as near-shoring
- 3. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. We combine our expertise with yours to create new opportunities Transportation Expertise Your Advantage Supply Chain Knowledge UPS? is a trusted, reliable logistic provider: ? More than 60 years of experience moving heavy freight ? More than 100 years providing reliable ¡°package¡± delivery service 3
- 4. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. UPS has been moving heavy freight around the world 60+ years ? Wide selection of global air freight forwarding services, from critical to routine¡ from small to large ? A leading air freight provider, handling over 2.4 million kgs per day ? Time-definite air freight services that offer accountability with on-time performance measurement ? Versatile ocean services with competitive pricing and fixed sailing schedules ? A leading ocean freight provider (NVOCC), handling more than 500,000 TEUs annually 4 Note: All services subject to applicable terms and conditions of service
- 5. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. ? Operations in more than 120 countries and territories ? Over 300 UPS? owned or leased aligned air and ocean operating facilities around the globe ? Service to virtually any major airport in the world* ? Ocean service to virtually all of the world¡¯s major ports** ? Customer service 24/7 via local service centers, call centers and online access 5 Denial of Embargoed Vessels and Countries ¡ª Due to the fact we are a U.S.-based company, we are required to fulfill U.S. embargo regulations worldwide. The U.S. government has identified vessels and countries with which U.S. companies may not conduct international business. Other countries¡¯ embargoes are covered on a national level with the involvement of the local customs authority. * Subject to international governmental restrictions on persons, mode of transit and the shipment of goods. ** UPS Freight Forwarding footprint
- 6. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. One of the world¡¯s largest freight forwarders, is backed by over 80 yrs of customs brokerage experience ? Clearance offices in more than 60 countries ? Industry-specific knowledge and expertise ? Centralized entry processing and account management ? Customized reporting tracks compliance and performance measurements ? Comprehensive filing to U.S. Customs and Border Protection and other government agencies ? Bundled with UPS? transportation or stand-alone service 6
- 7. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 7 UPS freight forwarding supported by premium technology ? Shipping solutions to schedule pickups electronically, create shipping and clearance documents, and streamline processing ? A visibility and reporting solution, Flex Global View, that tracks shipments door-to-door and across modes, provides proactive notifications on shipment status and offers customized reports ? Specialized systems providing trade and information, plus calculating time and cost options
- 8. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Global air freight forwarding services North American air freight services UPS Next Day Air ? Freight Guaranteed and non-guaranteed (NGS)* next-business-day delivery by noon or 5 p.m., depending on destination UPS 2nd Day Air ? Freight Guaranteed and non-guaranteed (NGS)* second-business-day delivery by noon or 5 p.m., depending on destination UPS 3 Day Freight ? Guaranteed and non-guaranteed (NGS)* delivery within 3-4 days 8 * Subject to UPS Supply Chain Solutions ? Air Freight Terms and Conditions of Contract. Available upon request or on SCS website
- 9. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 9 Global air freight forwarding services (cont.) UPS Worldwide Express Freight? A fast, reliable, and guaranteed solution for palletized shipments over 150lbs/70kg to key markets around the world in one to three business days UPS Air Freight Direct? Day-specific scheduling with airport-to-airport delivery in 1-3 days by end of day worldwide; pickup, delivery and customs clearance optional* UPS Air Freight Consolidated? Day-specific scheduling airport-to-airport, in 3-5 days by end of day worldwide; pickup, delivery and customs clearance optional* International air freight services * Subject to UPS Supply Chain Solutions ? Air Freight Terms and Conditions of Contract. Available upon request or on SCS website
- 10. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Versatile ocean services Global ocean freight services Ocean Freight Forwarding ? Carrier booking and documentation processing ? Load coordination and container yard (CY) management ? Export and import customs filing Full Container Load (FCL) NVOCC Service ? Dedicated space in major trade lanes ? Multiple weekly sailings and dependable transit schedules ? EDI connectivity with vessel operators ? Door-to-door service available Less Than Container Load (LCL) NVOCC Service ? Service in all major global markets ? Weekly fixed-day sailings ? Global network of consolidation centers ? Regional gateways managing cargo flows ? Door-to-door service available 10
- 11. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 11 The global freight dilemma Ocean freight Great savings, too slow Cost Days in transit Air freight Ocean Air freight Great speed, costly Transportation managers are looking for the ideal cost/speed solution
- 12. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Balance speed and cost where it matters most ? The UPS Preferred ? multimodal freight services portfolio offers speed and cost improvements for your intercontinental shipments: ? UPS Preferred FCL and LCL ¨C Rail Accelerating ocean containers from China to Europe by utilizing China rail lines for the 8,000+ km journey across multiple countries ? UPS Preferred LCL to North America Faster delivery of ocean shipments to North America destinations by taking advantage of extensive UPS trucking networks ? UPS Preferred ¨C Sea/Air Combining ocean and air freight services to better bridge the speed vs cost gap on some of the world's longest intercontinental trade routes 12
- 13. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 13 UPS Preferred? multimodal freight services can help customers bridge the speed/economy gap Note: Savings and transit times are for illustrative purposes only. Those are not guaranteed and will vary by individual customer, origin/destination pairing and shipment characteristics.
- 14. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. UPS CrossBorder Connect? process 14 Faster than standard ground, less expensive than air freight Transit Time (Days) Traditional LTL CrossBorder Connect Air Freight Fast Slow South North US Transportation Cross-dock US Customs Drayage MX Transportation MX Customs Price
- 15. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Port to Door 19-31 days APAC-EU, LATAM Port to Door 16-36 days APAC & EU - US, CA, MX Station to Door 16-24 days China-EUROPE 15 UPS Freight Forwarding Services Overview UPS offers cost effective and timely shipping options UPS Air Freight Consolidated UPS Worldwide Express Freight UPS Air Freight Direct Door-to-Door 1- 3 days Airport to Airport 1- 3 days UPS Preferred Sea/Air UPS Preferred FCL/LCL Rail UPS Preferred LCL to Americas Ocean Freight FCL UPS Preferred Services Service Price vs. Ocean Transit vs. Ocean Standard Air 7-10x 0.1x Sea/Air 6-7x 0.6x China rail 3-5x 0.6x PLCL to N.America 2-3x 0.6x Standard Ocean 1x 1x Ocean Freight LCL Port to Door 20-60 days FCL (>20 CBM) Port to Door 20-60 days LCL (<20 CBM) Airport to Airport 3-5 daysUPS Air Freight Services UPS Ocean Freight Services
- 16. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 16 Shipping solutions Advanced solutions to drive efficiency Our Solution Your Advantage WorldShip? ? PC-based system for production style package and air freight shipping ? Integrates with your business systems ? Efficiently process air freight and package shipments through the same shipping platform ? Optimize business processes by integrating your processes with WorldShip MyFreight ? Online suite of tools for air freight customers ? One tool for shipping, tracking, rating, reporting and documentation ? Convenient, user-friendly, requiring no installation or formal training ? One-stop shipping, tracking, rating, reporting and document preparation for air freight ? Reduces the need for phone calls for rate quotes, pickup scheduling and shipment inquiries ? Reduces data entry with address book and shipping templates UPS Internet Shipping ? A fast and simple shipping application available at ups.com? ? Allows shippers to: ¨C Create a label in as little as two clicks ¨C Compare UPS? services and rates in a single glance ¨C Create and maintain frequently used shipping addresses ? Accepts credit cards and UPS accounts in a secured environment
- 17. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 17 Visibility solutions Advanced solutions to drive efficiency Our Solution Your Advantage Flex? Global View ? Web-based tool providing comprehensive transportation, purchase order and customs clearance visibility for all UPS? freight forwarding services ? Ability to analyze trends and improve inventory planning ? Visibility from order to final destination, across all UPS? freight forwarding services ? Search by multiple criteria: date ranges, reference types, trade lanes Quantum View Manage? ? Web-based application providing proactive shipment status information for middle market package and air freight customers ? Can help improve customer service, inventory management and operational efficiency ? Information about both package and freight shipments in the same system MyFreight ? One tool for air freight customers for shipping, tracking, rating, reporting and document preparation ? Convenient, user-friendly online tool that does not require installation ? One-stop shipping, tracking, rating, reporting and document preparation for air freight ? Fewer phone calls needed for rate quotes, pickup scheduling and shipment inquiries
- 18. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. Flex Global View ¨C your supply chain binoculars Visibility and reporting that take the guessing out of freight transport ? An integrated view into the supply chain ? Allows you, your customers and, when appropriate, your suppliers to focus on vital shipment details along the supply chain ? Updated continuously by carriers and UPS¡¯ global operating systems and processes ? Provides the information you need to stay nimble, make critical decisions and improve results. ? Flexible querying functionality to isolate any manner of air, ocean and ground freight shipments, warehouse inventory, purchase orders and customs entries 18
- 19. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. ? 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 19 Specialized systems Advanced solutions to drive efficiency Our Solution Your Advantage International Forms ? Online tool for creation of international shipping documents ? Facilitates the completion of Commercial Invoices, U.S. Certificates of Origin, NAFTA Certificates of Origin and Shipper¡¯s Export Declaration (SED) Time and Cost Calculator ? Online tool for rate, and delivery information for package and air freight ? Allows users to find rates, delivery dates and transit times for all available UPS? small package and air freight services Solution Finder ? A virtual sales tool that asks relevant questions related to your business need in an effort to identify an optimal solution ? Helps you find the UPS service that best fits your needs UPS TradeAbility? ? Suite of transactional tools available online and as integratable web services ? Designed to help streamline international trade processes Global Trade Microsite ? Website with comprehensive international shipping and global trade information ? Designed as a guide to international shipping and global trade for customers looking to expand their global reach
- 20. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS. ? 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 20 Global air freight network connecting continents UNITED STATES UPS provides the most diverse range of services available from any single operation EUROPE UPS establishes an integrated pan-European ground and air network combined along with comprehensive commercial freight network ASIA UPS offers more options to and from destinations around the world LATIN AMERICA UPS is one of the largest express and air cargo carriers AFRICA UPS has full service coverage to major markets in Africa to support these emerging trade lanes
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