the push toward a paperless environment:

Also Inside:• Boost Your Revenue and Save your Clients Frustration• Five Pillars to Ensure You (or Your Employees!) Never Stop Learning• The Salesperson’s Handbook

Printed on 10% post-consumer recycled paper

National Press Building • 529 14th Street, N

W, Suite 750 • W

ashington, DC

20045

The Official Publication of the Airforwarders Association

Spring 2015

FORWARD

The Push Toward a Paperless Environment:

WHAT IS NEEDEDfor Electronic Record Keeping?

44035_Kellen.indd 1 2/19/15 10:05 AM

Forward Magazine Q Spring 2015 Airforwarders Association2

Relentlessly Reliable® service.Southwest Airlines Cargo® can handle your expedited air cargo needs with our Next Flight Guaranteed (NFGSM) service. With over 3,500 daily flights throughout the Southwest Airlines® network, your shipment will arrive at its destination on time. Our service is so reliable, we guarantee it. Visit swacargo.com® to open an account today!

44035_Kellen.indd 2 2/19/15 10:05 AM

Cont

ents

3airforwarders.org Spring 2015 Q Forward Magazine

FORWARDThe Official Publication of the Airforwarders

AssociationChris Connell: Chairperson

Michelle Halkerston: PresidentBrandon Fried: Executive Director

Penny Alston: Editor

FORWARDis published four times a year by the

Airforwarders AssociationDesign: Kellen Creative

Administrative OfficesNational Press Building

529 14th Street, NW, Suite 750Washington, DC 20045

Tel (202) 591-2456E-Mail: [email protected]

Home Page: http://www.airforwarders.org

The Airforwarders Association is not liable for losses, claims, damages or expenses arising out of or attrib-uted to the contents of FORWARD, insofar as the con-tents are based on information, representations, reports or data that have been publicly disseminated, furnished or otherwise communicated to FORWARD.

A f A B O A R D O F D I R E C T O R S

Rick BridgesRoanoke Trade

West Newbury, MA

Chris Connell – Chairperson*Commodity Forwarders

Los Angeles, CA

Keith DavisSterling Transportation, Inc.

Los Angeles, CA

Anthony V. (Tony) Deltuva, Jr. – Vice President*

Service By Air, Inc.Woodbury, NY

Richard Fisher – Treasurer*

Falcon Global Edge Inc.Boston, MA

Jennifer Frigger-Latham – Secretary*

EMO-TransFreeport, NY

Sasha Goodman – Member-at-large*

Rock-It CargoLos Angeles, CA

Sandra GregoryTigers (USA) Global Logistics, Inc.

Elk Grove Village, IL

Glen HallALG WorldwideWood Dale, IL

Michelle Halkerston – President*Hassett Express, LLC

Elmhurst, IL

Kirk McCannTransGroupSeattle, WA

Donna MullinsMullins International Solutions

McDonough, GA

Michael Hess Associated Global Systems Inc.

Sharon Hill, PA

Dan StegemollerRadiant Global Logistics

Bellevue, WA

Michele WilkinsonTailwind International, Inc.

Addison, TX

16

18

14

IN EVERY ISSUE

4 Executive Director’s Report

6 Chairperson’s Corner

8 Secretary’s Report

10 Government Affairs

12 At The Bar

24 Member News

14 Boost Your Revenue and Save your Clients Frustration

16 Five Pillars to Ensure You (or Your Employees!) Never Stop Learning

18 The Salesperson’s Handbook

* Executive Committee Members

Relentlessly Reliable® service.Southwest Airlines Cargo® can handle your expedited air cargo needs with our Next Flight Guaranteed (NFGSM) service. With over 3,500 daily flights throughout the Southwest Airlines® network, your shipment will arrive at its destination on time. Our service is so reliable, we guarantee it. Visit swacargo.com® to open an account today!

44035_Kellen.indd 3 2/19/15 10:05 AM

Executive Director’s Report


Brandon FriedAfA Executive Director

The Airforwarders Association serves on a number of federal advisory panels in Washington

representing the forwarder’s perspective to the Department of Commerce, Customs and Border Protection and the Transportation Security Administration. With this kind of involvement, there is never a shortage of meetings for us to attend in our nation's capital.During a recent gathering of the TSA Aviation Security Advisory Committee, we and other stakeholders submitted formal recommendations that included a call for the agency to allow privatized canine use for forwarders screening cargo and a request to reopen an office within TSA focusing on air cargo security matters. The office had recently been disbanded and the remaining cargo related employees were assigned to the TSA Aviation Division.Reopening the TSA Air Cargo office will allow the agency to cluster expertise on air cargo security within one department, with capabilities in security, policy development and industry engagement. The Airforwarders Association believes this move will align TSA's risk based approach to security with aviation security regulatory initiatives while hopefully increasing current staffing levels substantially reduced during the previous reorganization.AfA spends much time focusing on TSA and matters pertaining to its Indirect Air Carrier Security Program. As you attend the various plenary sessions at this year's annual conference, you will notice

that this commitment is reflected in our programming agenda. TSA air cargo leadership will be there to provide an industry security briefing while answering questions about the anticipated revision to our current security regulations.Having just returned from a CBP Commercial Operations Advisory Committee meeting in San Francisco, I saw that the Department of Homeland Security remains focused on the submission of advanced import and export data as the bedrock of the next chapter in air cargo security. We expect to see a Notice of Proposed Rulemaking sometime this spring pertaining to the Air Cargo Advanced Screening initiative requiring electronic filing of import data for shipments entering the US from foreign countries.The need for electronic data submission means that the days of the typewriter are swiftly disappearing in favor of a paperless office environment. Doing business with the government is also changing since President Obama last year signed an executive order mandating a "single window" approach through the International Trade Data System that will focus on electronic submissions for customs and participating government agency transactions.Since many Airforwarders Association members are beginning to minimize the use of paper in their organizations, our “At the Bar” column legal experts in this issue explain that the US CBP estimates that industry participants may be able to save upwards of $900,000 per year as a result of reduced courier fees and printing costsavings. They also explain that moving an organization toward a paperless environment not only requires investments in upgrading internal and external systems, training of the operations and support staff but also adherence to stricter legal guidelines concerning electronic transactions and record-keeping.This month we not only focus on our ongoing government advocacy activity but also tools that will help you run your business better. For instance, Roanoke Trade's Amanda Barlow takes us through an explanation on the Carnet process and how you and your customers can benefit by using this tool to ease customs clearance for tradeshow displays that are going abroad to exhibit and will return

to the United States in less than one year. We also feature interesting insight on the value of staying current through education programs and overcoming sales obstacles to help you increase revenue.As you enter the AirCargo 2015 conference and trade show this year, we hope you will not only notice our new and improved image but exciting agenda as well. Many members from four organizations worked tirelessly in planning in assuring you have a valuable and worthwhile experience. I would like to personally thank Airforwarders Association Board members Tony Deltuva, Sandy Gregory, Keith Davis and Sasha Goodman for their tireless efforts in making this year's conference a successful reality.Congratulations also go to the winners of our annual industry awards including the international air carrier, domestic air carrier, and surface transportation provider and affiliate vendor of the year. These honorees, along with the winner of our annual Jim Foster Award for Excellence will be announced at our annual general membership meeting on March 2 in New Orleans.Be sure to watch for more information about our Washington Government Fly-in and Global Supply Chain Summit on May 12-13th. AfA will join the US Chamber of Commerce in sponsoring this informative event featuring Capitol Hill lawmakers and high-ranking government officials addressing supply chain issues affecting your business.Finally, your newly elected board is poised to assume the responsibilities of executing our organizational agenda for the next two years. Committees that need your help augment these efforts and if you are interested in joining one, please let me know so that your valuable talents can be put to use. Enjoy AirCargo 2015!

44035_Kellen.indd 4 2/19/15 10:05 AM


Built in Rochester

Shipped from Detroit

For over 80 years, we’ve built our reputation on outstanding customer service. After all that hard work, we’re not going to let you down.

Our name is Alaska. Our service is nationwide.

alaskacargo.com

On the job in the morning.

44035_Kellen.indd 5 2/19/15 10:05 AM

Chairperson’s Corner


Christopher A ConnellAfA Chairman

Speed of Change…..“In this world nothing can be said to be certain, except death and taxes.” This applies as much today as it did in the 1700’s when Benjamin Franklin spoke those very words. We might add that “change” itself is certain. In this age of technology, the speed of change seems to be rapidly increasing, whether we like it or not (and whether we are ready or not).

Not too long ago, I asked myself why I got involved in the AfA. I realized that the speed of change within our industry was becoming so fast and furious that the need for a focused and unified voice was required. For myself, what started out as a place to network quickly moved to a place of listening and learning from others that eventually transitioned to having a place at the table to better understand government policy as well as potentially influencing future regulation.

Thanks to Richard Fisher, Mike Hess, Anthony Deltuva, Steve Goldberg and Fred Parshley for their service and commitment serving on the executive committee over the years. I also want to thank Preston Murray and recognize the late Robert Mauro for their years of service. I am pleased with the makeup of the 2015/2016 board of directors for your AfA. The new additions come with an assortment of backgrounds and experience that will offer a different perspective to the leadership of the association with energy that change brings. Your experienced board members are taking an active role on the executive committee. We were also able to keep some of our more senior leadership at the board level that will continue to bring an important voice to the mix of our board.

Advocacy continues to be a major focus of your board of directors in 2015. The slow down at the 29 U.S. West Coast ports, lithium batteries, TSA IACSSP Change 5B, FDA Drug Safety Act, Food Safety Modernization Act, TRIA, Export Manifest,

FMCSA possible insurance requirements, Coercion of Drivers on their hours of service, Uniform Truck Safety regulations, legislation on negligence selection for trucking, requesting more tools for the air cargo

screening box and many other items are in full focus this year. We are looking at improving our methods to deliver information to our member organizations and employees as often as possible to provide updates on the many changes ahead. Our Executive Director Brandon Fried continues to be engaged in multiple government agencies and stays connected to likeminded industry groups on how together we can create as much exposure as possible to our collective needs. Our webinar series continue to be well attended and as an association we continue to look at creative ways to build our educational programming to meet the demands of our membership.

While we have an outstanding group of people on the board who are fully engaged in handling the speed of change, I am asking the general membership to do its part as well. If you have a particular topic of concern, please reach out to us and let us know about it. If you see an education topic or a possible regulation concern that your company would like to see addressed, then please drop us a note or give us a call. We are here to listen, act and serve our members on all forms of transportation, best business practices and ways to add value to the membership.

Commerce finds a way, it’s our job to get it there as efficiently as possible…..

“In this world nothing can be said to be certain, except

death and taxes.” This applies as much today as it did in the

1700’s when Benjamin Franklin spoke those very words.

44035_Kellen.indd 6 2/19/15 10:05 AM


44035_Kellen.indd 7 2/19/15 10:05 AM

Secretary’s Report


Jennifer Frigger-LathamAfA Secretary

Freight forwarding is a great industry for those of us who had trouble deciding our major in college, because you have the opportunity to deal with so many different sectors and industries along the way. In case you ever considered engineering, freight logistics is a great place to tinker endlessly on dynamic systems. When I was a kid my Dad got us this Wilesco Steam Engine and you could make elaborate transmission structures, and expand the system. Freight logistics is like that! Just when you think you have the solution for one problem another crops up, and you need to add another step or procedure to the whole to achieve the simple thing you set out to do in the first place; to get a certain piece of freight to a certain location by a certain time! We are always talking about security. Indeed security, and the compliance tasks that came with it, was a huge procedural add- on, and it created a reregulated environment out of one that had only recently been deregulated. There are other elements, in the dynamic system, which deserve attention too!

Smaller forwarders are waking up to the need to manage their data. Data is the invisible abstract commodity that after all turns out to be the most valuable thing our customers ever give us. What do we do with it? How do we manage and analyze the data to help us make strategic choices, and how do we package it so that we can give it back to our customers and help them make strategic choices of their own? CBP and DHS have also had an epiphany about data, realizing that the best way to achieve security is recognizance/intelligence, so that they can anticipate threats rather than react to them. The layered approach to security requires that they request more and more data. How does the smaller forwarder get their data into an external database as efficiently as possible? What sort of investments are necessary to be on the right side of history, and to have the infrastructure needed to keep up with these demands? There is a committee for electronic cargo matters in the AFA, and we need your cooperation and participation to keep moving forward.

I’ve seen many challenges the last four years on the Board. While it’s never as bad as you think it’ll be, sometimes certain elements are worse, and no matter what, so far the freight has kept on moving. But that is not to be taken for granted! Rather, it should act as a reminder of the people out there doing the grunt work, the screening facilities who get the stuff screened so the freight can move safely, and the importers and exporters who are still pushing forward and doing business internationally, and yes the forwarders who advise and lend them money in foreign currencies and consult with them to engineer a better supply chain, who collectively make sure the freight continues moving.

The AfA is here to keep this industry going. My colleagues on the Board of the AfA as well as the staffers who literally have made the goals of this association their livelihood, should be supported. This is a fun job, that’s why we volunteer to do it, but the problems we are trying to resolve are not always fun, and the support of you-our members, and the forwarding community as a whole, are essential to our continued progress. I hope you are reading this at Air Cargo 2015 in beautiful and dynamic New Orleans, you can recognize the Board members by our name tags, come up and say hello when you see us on the floor, if you did not make it to Air Cargo this year then we look forward to seeing you next year in beautiful Phoenix!

Let me end by saying thanks to my predecessor Steve Goldberg, his expertise and input have meant as much to me as our philosophical/political discussions over a beer. I very much look forward to running into him at industry events.

MAT ACI Ad Dec14_setup.indd 1 12/8/2014 9:56:21 AM

Data is the invisible abstract commodity

that after all turns out to be the most valuable

thing our customers ever give us.

44035_Kellen.indd 8 2/19/15 10:05 AM


MAT ACI Ad Dec14_setup.indd 1 12/8/2014 9:56:21 AM44035_Kellen.indd 9 2/19/15 10:05 AM

Government Affairs


Real Divided Government Can Spur Positive Legislative Action – Can this one?By Clint Fisher

44035_Kellen.indd 10 2/19/15 10:05 AM


Technically, we have had divided government for the past four years with the Democrats controlling

the Presidency and the Senate and the Republicans controlling the House. However – that division resulted in gridlock and partisan bickering. Now that we have “real” divided government (the Republicans have both the Senate and the House) and President Obama is in his final two years of his term – there is optimism that some issues that we care about may see substantial progress.The legislation that has garnered the most attention out of the gate include the Surface Transportation Reauthorization; Trade Promotion Authority (TPA); and Patent Troll reform legislation. TPA and patent reform have bipartisan support and the support of the President as they did during the last Congress. However, in the last Congress, both bills ran headfirst into the Senator Reid blockade.Last week, Chairman of the House Judiciary, Rep. Bob Goodlatte (R-VA) introduced a new version of the Innovation Act. The bill is designed to curb abuses of patent trolls. Goodlatte’s new version is very similar to the one he introduced last Congress and that passed the House of Representatives. Important to our interests, the bill contains requirements forcing patent holders filing suits to identify their claims clearly. Also important to our interests is if Congress can enact Trade Promotion Authority (TPA) legislation. The main reason is that it allows the U.S. to be better able to successfully negotiate 21st century trade agreements such as the Trans-Pacific Partnership (TPP) and the Transatlantic Trade Investment Partnership (TTIP). I think we all can agree that more trade is good for our business.Moving further up the tree and past the lower hanging fruit is the Surface Transportation Reauthorization. This effort also has both bipartisan support and support from the President. However, what the bill does not have is any solid support for a politically feasible funding mechanism. While an increase to the gas tax has support from many house democrats, a few key republican senators and the U.S. Chamber of Commerce, neither Speaker Boehner nor House Ways and Means Chairman support an increase to the gas tax. The Administration has proposed a one-time tax on U.S corporation’s overseas earnings. Some lawmakers support the repatriation idea. However, influential republicans also

believe that they have a real chance for corporate tax reform and repatriation of U.S. earnings overseas is a key component of the overall reform. So – the clock is ticking as the current reauthorization expires on May 31. Already, folks are thinking about an extension but again – where does the money come for an extension?Obviously, with the gas tax off the table, AfA has nothing specific in the funding dogfight. However, we are very interested in the substance of the bill. For example, we think it would be extremely positive if the bill had a freight title with dedicated funding for freight specific projects. We are also supportive of language creating a national hiring standard. Today’s hiring standard for motor carriers is beingdetermined by a patchwork of state court decisions. Additionally, there is considerable interest in both the Senate and House to try and reform the Federal Motor Carrier Administration’s (FMCSA) Compliance, Safety and Accountability (CSA) program. Senator Thune (Chairman of Senate Commerce) is concerned about the data quality of the CSA. Also, the Government Accountability Office (GAO) was highly critical of the data aspects of CSA. However, in a recent hearing, Secretary Foxx noted that the FMCSA has strong disagreements with the GAO and said that the GAO

methodology used to analyze CSA is inherently flawed.Additional legislation that we will be monitoring and will fully engage at the appropriate time will be a Department of Homeland Security Authorization bill and a Federal Aviation Authorization (FAA) authorization bill. FAA authorization expires on September 30, 2015 but as a reminder, the last FAA reauthorization bill had 22 extensions. Congress does not have to pass a DHS bill but Majority Leader McConnell has expressed interest in getting a DHS bill completed this year. The top of our list for a DHS authorization bill (including TSA) would be language to require the TSA to set up a private sector canine program and the elimination of the known shipper program.In conclusion, this year shapes up to be a fairly meaningful legislative session for our interests. Trade deals such as the TPP would be very positive for our business; a long-term surface transportation reauthorization would make our supply chain more efficient with better roads and repaired bridges; and, finally a patent reform bill would shine a bright light on the extortion practices deployed by patent trolls and ultimately would help eliminate a worry of ours. As always, I appreciate your support in these endeavors.

44035_Kellen.indd 11 2/19/15 10:05 AM

At the Bar


Over the last year, the forwarding industry has started to experience an initiative toward a paperless

working environment where visions of electronic data interfaces and the elimination of paper shuffling are at the forefront of the trade. On February 19th, 2014, President Obama signed Executive Order 13659 mandating U.S. Government agencies to work together to streamline the export/ import process and complete an electronic single window platform known as ACE (Automated Commercial Environment) by December 2016. CNS (An IATA Company) is also educating the air forwarding industry on the benefits and need for e-freight, eAir Waybills (eAWB), and electronic Consignment Security Declarations (eCSD). Together, these initiatives are making a way for forwarding companies to become paperless and house all recordkeeping activities electronically, an initiative said to increase operational productivity and lower operational costs.

US Customs and Border Protection, under the direction of the Department of Homeland Security, has taken the February 2014 Executive Order quite seriously and has made huge strides in creating the single window platform known as ACE. If your company is unaware of ACE and is curious why there is so much dialogue on the subject matter, it is time to begin researching and understanding the impact ACE will have on the forwarding community. Questions such as “Is this something I really need to be paying attention to?” or “Will there truly be a hard transition that shuts down ACS (US Customs’ current system) and creates one single platform for the import and export of goods?” can be answered with a resounding yes. Initially, many in the community, as well as importers and exporters, questioned how viable the creation of a single platform would be and most agreed that the timelines set forth by the Executive Order would not be attainable. ACE developers began meeting deadlines and the forwarding industry began to notice. Now ACE developers, regulatory drafters, and the forwarding and brokerage communities are working to meet the aggressive timelines that have to be met..

And not only is the industry making strides toward the single window, ACE developers and all interested parties in the supply-chain are working together to ensure that the program meets the needs of all import/ export interested parties.According to the U.S. Customs’ website, by the end of 2016 ACE will become the Single Window platform through which U.S. Customs will automate, streamline, eliminate paper and create a more straightforward and efficient way for the trade to comply with U.S. import and export laws and regulations. The vision of ACE is to create one portal which will allow shipments to be reviewed at the same time by all government agencies which may be responsible for electronically transmitting any hold, exam, or additional documentation requested messages that would halt the flow of trade; and allow the forwarding community to respond and also electronically transmit documents or other required information. As countries across the world continue to implement their own version of a pre-declaration system requiring certain key data elements be transmitted to the destination

The push toward a Paperless Environment: What is needed for electronic recordkeeping?

44035_Kellen.indd 12 2/19/15 10:05 AM

At the Bar


country’s government authority prior to allowing the shipment to enter their territory, the need for electronic interfaces with carriers and government authorities in other countries continues to increase. CNS is encouraging the forwarding community to use the e-freight tools available to assist forwarder’s with these regulatory requirement. In a presentation given in Atlanta, Georgia on September 9, 2014, CNS anticipated the third quarter of 2015 as the goal for 100% use of all FWB, FHL, and eCSD data messages in the air forwarding industry. Similar to some of the benefits intended by ACE, these electronic transmissions will “facilitate an audit trail of who secured what shipment, how and when through an end to end electronic security information exchange”; increase security in the supply-chain by creating an electronic interface to exchange and update data; create cost savings; create faster response times to and from U.S. Customs; and increase productivity and efficiency in a company’s operation by consolidating similar processes into one step. How does this push toward electronic data interfaces affect air forwarders? The initial response should include determining whether or not the company’s transport management system includes electronic data interface capabilities. Further, one has to ask “How can we leverage these requirements to better the company’s operational procedures and lower costs?” In an environment where technology continues to develop at a fast pace and solutions are created based on industry and regulatory needs, the answer for air forwarders is to create a paperless working environment. U.S. Customs estimates that industry participants could save upwards of $900,000 per year as a result of reduced courier fees and printing cost savings. Faster processing of goods entering and leaving the United States and a secure supply-chain are also anticipated in a paperless environment. In order to effectively transition to a paperless working environment, an air forwarder must ensure adherence to the electronic record-keeping requirements outlined by U.S. Customs. Under 19 C.F.R. Part 163, records are defined to be “any information made or normally kept in the ordinary course of business pertaining to the importation, transportation or storage of merchandise carried or held under bond into or from the customs territory of the United States” and at a minimum, the regulation requires that records be maintained on file for five years from the date of entry to the U.S.

To begin the transition to electronic recordkeeping, advanced written notification must be provided to the Director, Regulatory Audit Division, U.S. Customs and Border Protection, 2001 Cross Beam Drive, Charlotte, North Carolina 28217-2856. The regulation does not specify the methods of compliance but states that “generally accept business standards will generally satisfy CBP requirements .” In a U.S. Customs Informed Compliance Publication on Recordkeeping, the keys to creating an electronic recordkeeping system that will be approved include:

• Providing U.S. Customs with vendor specifications, documentation, and benchmark data to review;

• Drafting standard operating procedures to ensure the storage method used preserves the integrity, readability, and security of other information contained in the original records;

• An annual internal testing of the system;

• Procedures outlining the standardized retrieval process that allow for any requested record to be provided within a reasonable time;

• Adequate safeguards to prevent alteration, destruction or deterioration of records;

• Effective indexing system; and

• Hard-copy reproduction capabilities. Once the system is reviewed, U.S. Customs will provide authorization for the electronic recordkeeping functions submitted. Any changes to the recordkeeping process require notification in writing to U.S. Customs at least 30 calendar days before implementing the changes. Failure to maintain the standards outlined by U.S. Customs could lead to penalties. Another entity interested in electronic recordkeeping methods is the Internal Revenue Service. Based on the statute of limitations, organizations should maintain records on file for seven years. Under section 6001 of the Internal Revenue Code, the IRS outlines its record retention policy. Revenue Procedure 97-22 specifically outlines the electronic storage system requirements. Failure to meet the electronic storage system requirements may lead to penalties under subtitle F of the Code, including Section 6662(a) accuracy-related civil penalty and Section 7203 willful failure criminal penalty.The electronic storage system requirements of the IRS are faintly more rigorous and clearly

defined than those outlined by U.S. Customs. In addition to the items listed above, the IRS requires proof of an accurate and complete transfer of hardcopy or computerized books and records. The system must also have:

• Reasonable controls to prevent and detect the accuracy and reliability of the electronic storage system;

• An inspection and quality assurance program evidenced by regular evaluations; and

• Legibility and readability when displayed on a video display terminal and when reproduced in hardcopy.

Moving an organization toward a paperless environment may require quite an initial investment. It will most likely involve upgrading internal and external systems, training of the operations and support staff, and an overall buy-in of the organization. With the massive strides toward the electronic transmission of information in dealings with government agencies, implementing a paperless system will quickly become a requirement to transact import/ export business in the U.S. And while, ultimately, not only will a single platform and electronic driven systems create faster processing and a smoother flow of goods through commerce, it will also create a much more secure supply-chain without impeding the flow of commerce.

Richard L. Furman, Carroll, McNulty, Kull LLC, New York, NY

Jeika Prichard, Dachser Transport of America, Inc., Atlanta, GA

Chris McNatt, Scopelitis, Garvin, Light, Hanson & Feary, Pasadena, CA

Martha Payne, Benesch, Cleveland, OH

We are pleased to introduce a new panel of industry experts for our At the Bar column in 2015:

44035_Kellen.indd 13 2/19/15 10:05 AM

AfA Special Features


BOOST Your Revenue and Save Your Clients Frustration!

By Amanda Barlow, Vice President ATA Carnet - Roanoke Insurance Group

44035_Kellen.indd 14 2/19/15 10:05 AM


According to the Airforwarders Association 2014 third quarter “How’s Business?” survey, shipments to trade shows are booming! The best way to take advantage of this growth

is by providing full ATA Carnet service to your current customers and prospective clients exhibiting abroad. ATA Carnet, commonly referred to as Air Cargo’s Passport, is an international customs document that allows duty and tax-free temporary entry into over 100 countries. This is a perfect tool to ease customs clearance for trade show displays that are going abroad to exhibit and will return to the U.S. in less than one year.When it comes to trade shows everything goes on ATA Carnet, not only the pop-up booth and display banners, but Miss USA’s crown, mannequins, wigs, live animals and nuclear reactors. Other examples include, medical devices being exhibited at China Medical Equipment Fair in Shanghai, exotic water purification displays at the World Futures Energy Summit in Abu Dhabi, trays and trays of jewelry to International Jewellery London and helicopters for demonstrations at Helitech International also in London. Vintage cars also used ATA Carnets to make it on time to the opening ceremony of the BMW museum in Berlin. There are three types of shipments that qualify for ATA Carnet benefits, and “goods for display or use at exhibitions, fairs, meetings and similar events. The other two categories cover salesmen’s samples and tools of the trade. Each country chooses which one or all three of these types of goods they are willing to accept, and surprisingly not all signatory countries accept all three types. But all 100 ATA Carnet countries do accept goods for trade shows!In addition to replacing the temporary entry requirements in foreign countries, ATA Carnets function as a certificate of registration (CBP form 4455) with US CBP for the exhibit items returning to the United States. This air cargo passport is one document for all customs transactions, the export filing from the U.S., entry documentation into a foreign country, re-exportation documentation from that country, and finally the returning re-importation documentation back home. Remember, thanks to

AFA’s efforts ATA Carnets are exempt from the electronic export information filing in AES! However, ATA Carnets are not exempt from participating government agencies’ licensing requirements, and appropriate licenses need to be obtained in addition to the ATA Carnet document. ATA Carnets not only help develop, grow and retain customers, they also serve as a great revenue source! Above and beyond providing the freight forwarding for the trade show displays, you can provide the ATA Carnet document preparation on behalf of your clients, and offer ATA Carnet Cargo Insurance. The application process is simple to use and turnaround time to get the ATA Carnet documents could be as quickly as a few hours.

ATA Carnet shipments, specifically those destined for trade shows, are unique in that they are not a one-time transport. A shipment on an ATA Carnet can continue traveling from country-to-country, with periodic stops in between where the goods are unpacked and then repacked. With this in mind, it is easy to understand why a typical cargo insurance policy may not fully cover goods moving on an ATA Carnet.Roanoke Trade has developed an enhanced insurance policy that fills the gap for ATA Carnet shipments. Features of the policy include “All Risks” coverage that is not just for new but more importantly used goods. The policy includes transits to and from a foreign ATA Carnet member country, as well as the time the merchandise is in those countries and duty reimbursement in the event goods are lost or stolen. The policy also covers goods checked as luggage or hand-carried.ATA Carnets are a great way to boost your income and ease your customers frustrations of exhibiting overseas with simple, hassle free customs clearance. Call your Roanoke Trade representative today at 1-800-CARNETS to find out more about ATA Carnets for your business, or visit us at www.RoanokeTrade.com/ATA-Carnet!

44035_Kellen.indd 15 2/19/15 10:05 AM



Many talented people feel that they do not have anything new to learn in their chosen field. They

believe what got them there is enough.Those who are determined and who work hard often spend a lot of time and effort to learn new skills and maintain their existing ones. They display the most current knowledge of new technology and ideas. Having employees who will improve themselves over and above the company-sponsored training is critical to an organization wanting to innovate and improve.Eleven years ago, Ben got a job working in the mail room at a local business during the summer before starting college. The company had been in existence for over sixty years and was currently being led by Jack—a

long-time employee and company legend who started in the mailroom. Three weeks into the job, on his way from the basement to the top floor, the elevator stopped and who should enter the elevator but Jack. He smiled at Ben, introduced himself, and mentioned that he started out in the mail room. Ben was a little star struck, but as they both exited the elevator, Ben asked if Jack had any advice for him. “Never stop educating yourself,” Jack said. “In fact, come into my office and let me elaborate. I have 15 minutes before my next meeting.” Jack proceeded to share these five pillars for continued education: 1. You are responsible for your education

You alone are responsible for your education. Whether or not it makes sense to

invest in a formal education, there are free and for-fee learning opportunities available to everyone. The public library and the Internet are two examples. Another invaluable source of education is through people. Spend time with people who can do things that you can’t. It may mean volunteering to stay late to observe someone, going to lunch with more experienced associates or finding a mentor. You can also learn by taking on challenging assignments that are above your skill level. Discuss the help you will need to be successful and the company leadership may reward your initiative by providing an experienced staff member oversee your on-the-job training.You can learn pretty much anything, if you work hard at it.

Education is Continuous Five Pillars to Ensure You Never Stop LearningBy: Walt Grassl

44035_Kellen.indd 16 2/19/15 10:05 AM


2. No entitlements

Time in service should be no guarantee of advancement in a successful business. It is what one learns with his or her experience that determines the value of the service time. In other words, if you put in your time, you are guaranteed nothing. As your time with the company grows, seek lateral transfers or increased responsibility without necessarily a corresponding increase in title or pay. Realize you are making yourself more valuable to your employer and view the stretch assignments as an investment in yourself.Although we are living in a time of an increasing sense of entitlement, we must all take care of ourselves. 3. You can’t rest on your laurels

Many talented people feel that they do not have anything new to learn in their chosen field. They believe what got them there is enough. They become complacent. They decide they don’t need to put in more effort and stop striving for success. When you reach a goal, celebrate your success, but identify your next goal and begin to take action. When you stop moving forward and rest on your laurels, in actuality

you are falling behind all the others who continue to move forward. 4. Staying current

Likewise, you need to stay current with industry trends by reading industry literature and blogs. If you are moving into management, read leadership books and blogs. New trends are frequently entering the workplace. You have the choice to be aware of and lead the change or try to catch up—or even worse—resisting the change.Joining industry and trade associations is another way to educate yourself on current trends.5. New and old generation

A big issue in many industries is getting several generations to work well together. Each generation has different learning and working styles. You have several options to handle this reality. The first is to do nothing, since it’s your fellow employee’s responsibility to get with the program. You can leave it to your company’s leadership to implement a program to fix the problem. The higher percentage choice is to educate yourself on the differences between generations, the issues these differences these issues bring to the workplace and some things others are doing to address the issues.

You can use this information to change how you interact and to the extent you can, help your company improve their processes. Ben took Jack’s advice to heart. After graduating from college, he got a job with another company in another field. His education did not stop when he left school. He subscribes to industry and management blogs, has joined his industry association and seeks out challenging assignments and develops relationships with other successful employees at his company. He has been identified by his management as a high-potential employee and is one of the youngest employees at his level. Ben’s future is bright. Amazing what a chance encounter in an elevator can do.Walt Grassl is a speaker, author, and performer. He hosts the radio show, “Stand Up and Speak Up,” on the RockStar Worldwide network. Walt has performed standup comedy at the Hollywood Improv and the Flamingo in Las Vegas and is studying improv at the Groundlings School in Hollywood. For more information on bringing Walt Grassl to your next event, please visit www.WaltGrassl.com.

Counsel for the Road Ahead SM

Over the years, Benesch has provided legal consultation and pragmatic businessadvice to well over 100 Transportation Brokers, Surface Freight Forwarders, OceanFreight Forwarders, NVOCC’s, Air Freight Forwarders, Warehousemen, 3PLs, 4PLs, andother Freight Intermediaries of all kinds. They know that when it comes to corporatestructuring, mergers and acquisitions, transportation and logistics contracts, bestpractices, regulatory challenges, insurance and risk management, freight loss anddamage or freight charge disputes, catastrophic personal injuries, and independentcontractor relationships — Benesch knows Intermediaries.

100 FREIGHT INTERMEDIARIES CAN’T BE WRONG

Cleveland | Columbus | Indianapolis | Philadelphia | Shanghai | White Plains | Wilmington | www.beneschlaw.com

MEMBER

MEMBER MEMBER

NEW_TransAd 7.8125 x 4.5_c.qxd 5/16/12 4:03 PM Page 1

44035_Kellen.indd 17 2/19/15 10:05 AM



Five Common Sales Obstacles and How to Overcome Them

The Salesperson’s Handbook


By: Paul Cherry

Lucy was a brand new salesperson who wanted to make a big impression. She did everything she could think of to establish relationships

with prospects and wow them with her proposals. While she was not failing as a salesperson, Lucy was certainly not leading her team in sales either. After nine months of below average performances, she knew something had to change—but what?

44035_Kellen.indd 18 2/19/15 10:05 AM


Veteran salespeople know that while every customer is unique, the obstacles to a sale are predictably the same and occur rather frequently. Once you understand these obstacles and the strategies to overcome them, you will have all of the tools you need to make the sale.

Obstacle 1: Identifying and Communicating with the Decision Maker(s) Too often, salespeople will focus solely on their initial contact at an organization. Whether that person is a mid-level manager or an HR executive, they are probably not the only person who is going to have input on the proposal process. Smart salespeople know that there are usually other decision makers who will have input in the deal, and the challenge is to figure out who they are and how you can meet with them. In order to get the information you want, you will to have to ask your current contact some questions that might seem awkward. Some questions to broach the issue are:

• What is your time frame for making a final decision?

• What criteria will you be evaluating to ensure you are making the best decision?

• What measurable outcomes are you looking to achieve?

Once you are able to determine who else will be involved in the decision making process, you can ask this follow up question: “I really appreciate this insight. So that I can propose the best solution that is going to meet the needs of everyone else involved, I would love to talk with these other individuals and get their input. When can I meet with them?”

Obstacle 2: Uncovering the BudgetNothing will derail a deal faster than a mismatch between your proposal and the customer’s budget. Unfortunately, prospects are often reluctant to discuss their budgets with salespeople. It is your job to press them further to get a number, or at the very least, a range of what their budget is for the project. There are two options to making this happen. You can politely—but firmly—suggest that your prospect determine their budget prior to soliciting bids. Stress the importance of an advance figure, and express your interest in receiving them before you reconnect. This approach puts the focus on the prospect, not you. It tells them that you care about

them and their financial security and you do not want them to make a mistake. The second option involves framing the interaction through the lens of recommending a program that best suits your prospect’s needs and expectations, and expressing how budget parameters can shape the direction for both parties. If they say they cannot give you a number because they’re not the ones putting the budget together, ask to be introduced to those who are involved in crafting the budget. This will minimize price objections later on in the process, especially when you are put in front of people who are not as concerned with budget, as they are with their ROI.

Obstacle 3: Working with Customers Who Do Not Want to CommitThere is nothing more frustrating that getting ready to close a sale, only to have a customer say, “I still need to think about it.” When this happens, a seasoned salesperson knows that he or she needs to follow up on the customer’s statement. You should respond by saying: “I can understand you need to think about this. After all, it is an important decision and you need to do what is best for you and your organization. Tell me, what specifically stands out from our conversation that is of interest to you?” The goal of this question is to get clarification on how much the prospect is really interested in what you have shared and whether or not the prospect feels they want to move forward. Is there sincerity in the response, or are you being blown off?Once you get an answer to your first question, you can acknowledge that the customer has concerns, and ask them what they are. Ask what is holding them back from making a decision, and then hopefully you can help alleviate their concerns and get the sale back on track.

Obstacle 4: Understanding the Customer’s ValuesToo often, salespeople get stuck on the issue of price. If you sell on price, you lose on price. As soon as someone cheaper comes along, a customer will not give you a second thought before cutting you loose. Instead of getting caught up in price wars, you need to steer a customer’s attention to other issues. This means you need to ask your customers about value. What characteristics does the organization value in a vendor? Are they most concerned with good customer service, high

quality products, speedy delivery, or ease of use? Once you get a customer talking about these areas, you can determine what their needs are and how you can position yourself to get those needs met.

Obstacle 5: Establishing Your CredibilityMany salespeople make the mistake of spending an initial meeting talking all about themselves and their products. This is a mistake. During an initial call, your goal should be for the prospect to do 70% of the talking. Why? For two reasons:

1. You want to hear about his/her problems, goals, concerns and ideas.

2. You want to qualify if there is a genuine opportunity with this prospect.

You cannot do either of those things if you are trying to sell during the first meeting. As much as you want to sell yourself, you should never bring out PowerPoint, samples or company literature during an initial meeting.What should you do at an initial meeting? You should start the meeting with a unique value opening statement, which is a 30-60 second description of who you are as a company and what you do. The value opening statement should detail the benefits of your company to the prospect, the impact that hiring you will have to their organization, and an immediate follow-up question to gauge their expectations and interest. Remember Lucy? She started to utilize these tips and strategies with her customers. She found that she was able to ask great questions of her customers and this in turn led to increased sales and increased overall performance in her office. ABOUT THE AUTHOR: Paul Cherry is President of Performance Based Results and is the leading authority on customer engagement strategies. He has more than 23 years’ experience in sales training, leadership development, sales performance coaching and management coaching. He is also the author of Questions that Sell: The Powerful Process for Discovering What Your Customer Really Wants and Questions that Get Results: Innovative Ideas Managers Can Use to Improve Their Team’s Performance. For more information on Paul, please visit www.pbresults.com. You can also reach him at 302-478-4443 or [email protected].


The Salesperson’s Handbook


44035_Kellen.indd 19 2/19/15 10:05 AM



44035_Kellen.indd 20 2/19/15 10:05 AM


You’re a change maker. You’ve taken stock of the situation and seen where your company could

be, where it should be. The problem is you have to take others with you, which means pushing against attitudes of ‘better the devil you know’ toward new ways of thinking. Fortunately, new ways of looking at productivity boundaries – and easier ways of pushing them – are available.The consumer market has experienced massive changes in the past decade. Customer expectations of internet enabled speed, access, and quality have kept retailers on their service and technological toes. But supply chain businesses, particularly those in the small to mid-range, have been constrained by a lack of affordable solutions designed for the logistics sector. The industry’s large multi-national customers have spent years and vast amounts of money on massive ERP systems in their quest to be innovative and to keep their processes lean, but when they want forwarders to fulfill their supply chain, more often than not, they are talking to people who don’t have EDI, automated status updates, or KPIs. The forwarder’s process is often very labor-intensive, relying heavily on phones, manual systems, paper files, spreadsheets, and emails.Until recently, the trade flow middlemen (forwarders, liner agents, customs brokers) have had to resort to “doing what we did before, only doing more of it, faster.” This modus operandi often results in extra staff, overtime, and mistakes which lead to unhappy customers and slim margins. The boundaries and barriers to logistics business success, both real and perceived, can now be challenged. Software-as-a-Service (SaaS) is the game changer. You don’t need a huge capital injection, and

you won’t be bogged down in a long implementation. Risk-reducing testing for new systems and processes, once really only available as part of large, lengthy, and costly projects, is available now to all. With SaaS, you simply switch on scalable new functionality as your organization is ready to absorb the next change. You don’t have to throw extra people at it, and, irrespective of your customer’s size and complexity, you’ll have total confidence about providing the required service.

Start with a Clear Plan of Action You may feel that experienced change management consultants are too expensive, and try to do as much as possible yourself with the help of your software vendor – that’s a good approach, but remember that it’s your destiny being shaped so you’ll need to put in the thinking time, and make some tough decisions, before you start pushing past your boundaries. Make sure you are confident that you know the problem being solved intimately. If you haven’t gone through it in meticulous detail, you may end up with the same problem creeping back into your new processes. Thought Process tools that help map out situations, conflicts, and processes are of great value. This exercise can also help predict the effects of the change - both good and bad - rather than making knee-jerk reactions to any negative side-effects.With a clear analysis of both your current and desired business processes, as well as the pain points you have identified, it becomes easier to make fast, minor improvements to efficiency and quality. In turn, this frees up valuable time to think about the larger changes to get the best out of your business. You need time to work out the innovation, strategy, and tactics and get them right, after all. Look for automation,

simplification and rapid communication to give clients what they need: the right information in the right format at the right time. You can then create technology lock-ins to key accounts and provide special service without lots of special effort.

Avoid the Risks of Building Complexity into a Boundary ShiftBe aware that pushing the boundaries too far, with too complex a change, can put your business at risk. If you become too reliant on your people having specific training and knowledge, then you can’t afford to lose them; and – in the logistics sector, where people tend to change jobs when the next salary raise is offered – you’ll be in the undesirable position of paying above the norm to keep these expert staff. And when you take on new recruits, having complex systems can also lengthen the time to productivity.When assessing what new technologies you are going to take on, you need to balance effectiveness against your goals. If you take ten percent from your goals, you can reduce complexity by fifty percent. What’s needed is someone to objectively assess your definitions, do a cost benefit analysis on any change process, and push you back a rung for safety. So if you’re stuck on the hamster wheel without the time to think of ways to get off (let alone how to re-invent it), remember that one day the hamster wheel will break. It’s better to act now and think about the problems in your business and processes, acknowledge them, and identify their causes. The world is full of creative people shackled by their view that they can’t make a difference and that they can’t move beyond their boundaries. You can be among those who do.

Moving Confidently Beyond Boundaries Simon Clark – VP of Business Development for Europe, the Middle East, & Africa – assures change no longer needs to be intimidating.

44035_Kellen.indd 21 2/19/15 10:05 AM

Member News


Lufthansa Cargo honors SDV Geis, ITG and Quick Cargo ServiceCustomer conference focuses on dialogue with over 100 industry experts

"We want to grow and indeed, profitably", highlighted Dr. Alexis von Hoensbroech, Board Member Products & Sales at Europe’s leading cargo airline, on Wednesday at the "Lufthansa Cargo in Dialogue" event. More than 100 logistics industry representatives accepted Lufthansa Cargo’s invitation to mutually exchange experiences in Frankfurt at the two-day conference. Peter Gerber, Chairman of the Executive Board and CEO of Lufthansa Cargo, also was full of expectation and expressed his positive outlook on the new year and the sector: "We are on the right track for the future. Lufthansa Cargo is one of the most important players in the air cargo industry and will remain so." To reach this goal the freighter network will continue to develop, investment will be made in the Frankfurt hub and the other pillars of "Lufthansa Cargo 2020", such as digitization, a modern logistics infrastructure and cooperation with other airlines, will be driven forward.Quality and digitization are the topics right at the top of the agenda – these are demands placed on Lufthansa Cargo itself, but also on the customer. "In our collaborations, we always review these two parameters; that forms part of a systematic dialogue between customers and the carrier", explains J. Florian

Pfaff, Vice President Area Management Germany. Traditionally, as part of the event, a number of Lufthansa Cargo customers were honored with an award for being pioneers in these two categories. "The presentation of the awards is meant to represent both the high esteem that we hold them in as well as act as an incentive for further improvements."This year, the "Lufthansa Cargo Quality Award for the German Market” was awarded by Lufthansa Cargo for the fifth time. First place in this category was taken by ITG as forwarder for providing the best delivery quality among the Top 40 customers. SDV Geis was best-placed and received the award amongst the forwarders that tackle more than 10,000 air waybills per year. Different quality parameters were assessed relating to compliance with scope of service and de-livery punctuality.The "eCargo Award", launched last year, which aims to support the rapid expansion of digital processes between forwarders and airline was also awarded to SDV Geis (forwarder with more than 10,000 air waybills per year). Quick Cargo Service was established as the overall winner. Both forwarders achieved first place in their respective categories for the combined evaluation of quality and eCargo. A number

of factors are taken into account for the "eAward", including the percentage of electronic bookings and the use of eFreight."Having been awarded this prize by Lufthansa Cargo, as the national carrier, shows that we are on the right path", rejoiced Stephan Haltmayer, Managing Director Quick Cargo Service, when asked about the award and its relevance. "For German SMEs, quality is right at the forefront of things and digitisation is the most important topic in the sector."

Lufthansa Cargo AG

Lufthansa Cargo ranks among the world’s leading cargo carriers. In the 2014 business year, the airline transported around 1.7 million tonnes of freight and mail and sold 8.6 billion revenue tonne-kilometres. The Company currently employs about 4.500 people, worldwide. Lufthansa Cargo focuses on the airport-to-airport business. The cargo carrier serves around 300 destinations in more than 100 countries with its own fleet of freighters, the belly capacities of pas-senger aircraft operated by Lufthansa and Austrian Airlines, and an extensive road feeder service network. The bulk of the cargo business is routed through Frankfurt Airport. Lufthansa Cargo is a wholly owned Lufthansa subsidiary of Deutsche Lufthansa AG.

44035_Kellen.indd 22 2/19/15 10:05 AM


Industry Veteran Leads Recapitalization of Freight Force, Inc.Freight Force, Inc. announced that logistics executive Chris Coppersmith has lead a recapitalization of the business effective January 1, 2015. Freight Force, Inc. (“Company”) offers a centralized point of contact for billing, sales, claims management, and other key operational needs for air freight cartage providers. Founded in 1983 by Robert Serra, the Company manages a network of 41 independent carriers in strategic geographies across the United States.With a focus on growing the business going forward Coppersmith commented, “We are very fortunate to partner with Bob and his terrific staff in continuing to grow the Freight Force platform over the coming years. While our first order of priority is and will continue to be providing high quality service to both our freight forwarder customers and our valued 41 carriers, we also expect to add new

locations and service offerings in the future”. Robert Serra will continue to serve as President of Freight Force, Inc. while Coppersmith will assume the role of Chief Executive Officer. Mr. Serra offered, “Today is an exciting day for the entire Freight Force network and its respective stakeholders. We undertook a deliberate process to align ourselves with the right partner to allow the Company to execute on its longer-term growth objectives. We have found just that with Chris and his group of investors”.

About Freight Force, Inc.Founded in 1983 and based in Anaheim, CA, Freight Force, Inc. is a network of exclusively contracted carriers who provides all of its carriers with full back office support including nationwide marketing and sales,

billing, collections, data warehousing, software maintenance, etc. Freight Force provides two distinct services: (1) Cartage Services : Utilizing a network of independently owned and dedicated service providers domiciled at or near convenient airport locations, Freight Force can meet the air forwarder and logistics communities' needs for expedited pickup and delivery of less-than-truckload traffic in compliance with surface, air, and TSA requirements. (2) Truckload Service: To complement its cartage services, Freight Force holds out to arrange for truckload traffic pursuant to spot market rates established by a load confirmation agreement at time of booking. For the logistics industry, Freight Force, Inc. provides a "one stop" destination for nationwide cartage.

UTi Worldwide Inc. Achieves CEIV Pharma CertificationUTi Worldwide Inc. (Nasdaq: UTIW), a global supply chain services and solutions company, has achieved CEIV Pharma certification in the comprehensive IATA training and pharmaceutical freight certification program, the Center of Excellence for Independent Validators (CEIV), at Brussels Airport.“With this certification, UTi provides clients a competitive advantage in assuring cold chain integrity beyond the Good Distribution Practices (GDP) to which the rest of the air freight industry adheres,” said Phil Abbate, UTi global vice president, Pharmaceutical & Healthcare. “The CEIV Pharma cold chain certification program ensures integrity at every step of the supply chain, including temperature cargo handling and operations for temperature sensitive cargo.” CEIV Pharma certification is a series of processes including on-site assessment, implementation planning, training, and validation. The program focuses on equipment requirements, adequate storage facilities, efficient and effective pharmaceutical handling procedures and raising internal pharmaceutical handling know-how.Brussels Airport is the first CEIV pharma certified community in this program, and administrators hope to pave the way for other airports to follow the same standardized, sanitary and secure procedures. “Brussels Airport is aiming to strengthen its position as a leading gateway for the handling and transportation of pharmaceutical freight in Europe,” said Steven Polmans, head of cargo, Brussels Airport. “Integrity is everything in pharmaceutical handling, and UTi is excited to be part of Brussels Airport’s distinguished certified community,” Abbate added. “Pharma is one of the fastest growing air cargo segments, and we look forward with great anticipation to delivering a new level of pharma supply chain excellence to our clients.”

About UTi WorldwideUTi Worldwide Inc. (www.go2uti.com) is an international, non-asset-based supply chain services and solutions company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage, and other supply chain management services. The company serves a large and diverse base of global and local companies, including clients operating in industries with unique supply chain requirements such as the retail, apparel, chemical, automotive, pharmaceutical, and technology industries. The company seeks to use its global network, proprietary information technology systems, and relationships with transportation providers, and expertise in outsourced logistics services to deliver competitive advantage to each of its clients' supply chains.

44035_Kellen.indd 23 2/19/15 10:05 AM

Member News


Falcon GlobalEdge Flies New Flag with BTX Global LogisticsFor Boston-based freight forwarder Falcon GlobalEdge, a new flag will be flying this week, as they become BTX Global Logistics—Boston. Trusted and successful BTX Global Logistics specializes in time sensitive, heavy weight freight around the world, but has particularly carved a place in the transportation industry for customers who need a highly personalized, true logistics partner.For Falcon, joining BTX Global Logistics simply underscores their own mission to bring the very best freight forwarding and logistics solutions to customers worldwide. “BTX has built an advanced and responsive suite of software that we are excited to leverage with and for our clients,” says Richard Fisher, President of Falcon GlobalEdge—who has been now named the Executive Vice President for BTX Global Logistics. “Coupled with an excellent support network, this will extend our reach and enable us to meet the changing needs of customers, as well as to stay at the forefront of the industry.”Certainly, staying at the forefront of the industry is something to which Richard Fisher is no stranger. He has served for several years as Chairman on the Airforwarders Association Board of Directors, and currently serves on the Board as Treasurer. Richard has testified before the House Committee on Transportation and Infrastructure; as a member of the Air Cargo Subcommittee of the Commercial Operations Advisory Committee (COAC) he has advised the Department of Homeland Security (DHS) on matters relating to air cargo security; and has established himself as a true thought leader and advocate for members of the transportation supply chain.In transitioning over to BTX Global Logistics, Boston— Richard and his team have become part of the group that includes over twenty stations for BTX in North America, with international agents across the globe. The Boston presence solidifies an upward trend in growth for BTX, and one that is welcomed by all.“We are delighted that Falcon GlobalEdge has joined the BTX family,” says Ross Bacarella, CEO and President for BTX Global

Logistics. “Richard’s intimate knowledge of the industry as a whole, as well as the dedication of his group, is a perfect fit for BTX. The expertise they bring to the table will truly strengthen the BTX stable of offerings for our customers in this evolving industry. This move is a unique opportunity for our entire organization and an exciting new chapter for BTX Global Logistics.”

About BTX Global LogisticsBTX Global Logistics brings a team of seasoned logistics professionals together with over twenty stations nationwide serving companies around the world. Decades of experience in multi-modal shipping enables BTX to specialize in areas that include: white glove; project cargo; charter services; on board courier; asset recovery; automotive; retail; tradeshow; electronics; pharma; AOG and more. In 2015, BTX celebrates its 35th year in the freight forwarding industry. For more information, visit www.btxglobal.com

RFD Receives National Recognition for its 2013 Budget Award Reflects Commitment to Meeting Highest Principles of Governmental Budgeting

Rockford, Ill. – The Greater Rockford Airport Authority (GRAA) has been honored with the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA) for the 16th consecutive year. The airport’s Administration & Finance Department was recognized for satisfying nationally recognized guidelines for effective budget presentation. Budget presentations were judged on how well they served as a policy document, financial plan, operations guide and communications device. “Managing taxpayer investments in a responsible manner is critical to the element of trust we’ve developed in the community,” said RFD Executive Director Mike Dunn. “The airport leadership and staff work diligently to create and adhere to budget documents that serve as a guide to achieving goals that promote growth in the region.” Budget documents must be rated “proficient” in all four categories, and the fourteen mandatory criteria within those categories, to receive the award. The Government Finance Officers Association is a major professional association servicing the needs of more than 18,000 appointed and elected local, state and provincial-level government officials and other finance practitioners. The GFOA’s Distinguished Budget Presentation Awards Program is the only national awards program in governmental budgeting. RFD is served by two airlines: Allegiant and Apple Vacations. RFD serves eight non-stop destinations including Cancun, Ft. Myers, Las Vegas, Orlando, Phoenix, Puerto Vallarta, Punta Cana and Tampa Bay. RFD was named the 2013 Primary Airport of the Year by the Illinois Department of Transportation’s Division of Aeronautics. For more information on RFD and flight schedules, visit FlyRFD.com.

44035_Kellen.indd 24 2/19/15 10:05 AM


Supply Vision CEO Amanda Bohl Named 2015 Pro to Know by Supply & Demand Chain Executive MagazineSupply Vision’s CEO recognized for commitment to developing, implementing and supporting software solutions that meet real business needs

Supply Vision, Inc., a leading provider of cloud-based transportation solutions for logistics companies announced today that Supply & Demand Chain Executive magazine has selected CEO Amanda Bohl as an honoree for its 2015 “Pros to Know” listing.The honorees on this year’s Supply & Demand Chain Executive 2015 “Pros to Know” list recognizes individuals from software firms and service providers, consultancies or academia, who have helped their supply chain clients or the supply chain community at large prepare to meet today’s challenges.Under Bohl’s direction Supply Vision builds feature-rich cloud-based transportation and warehousing software to meet the needs of its growing shipper and 3PL customer base. As a customer-centric CEO, she’s built a motivated team to develop innovative business solutions, supply top quality customer service, and exceed customer expectations. Her team puts their industry knowledge and expertise to work every day to solve supply chain challenges.

“It’s an honor to be on this year’s ‘Pros to Know’ list,” commented Bohl. “We’re committed to listening to customers and developing, implementing and supporting supply chain software solutions that meet real business needs. Supply Vision’s focus on customer collaboration allows us to deliver business solutions specific to the needs of logistics service providers with warehousing and transportation operations.”Supply & Demand Chain Executive received more than 300 entries for the 2015 Pros to Know Award. This award recognizes supply chain executives, and manufacturing and non-manufacturing enterprises that are leading initiatives to help prepare their companies’ supply chains for the significant challenges of today’s business climate. The complete list of 2015 “Pros to Know” award winners is available on www.sdcexec.com and published in the March 2014 issue of the Supply & Demand Chain Executive magazine.

About Supply Vision, Inc.Supply Vision is a cloud-based supply chain software provider. The company’s web-based platform delivers flexible tools to help organizations manage the supply chain by enabling collaboration between shippers and logistics providers. Supply Vision’s suite of products covers the entire supply chain and includes a Transportation Management System (TMS), Warehouse Management System (WMS), and Customer Portal. www.supply-vision.com

About Supply & Demand Chain ExecutiveSupply & Demand Chain Executive is the executive's user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer executives and supply management professionals through the complicated, yet critical, world of supply and demand chain enablement to gain competitive advantage. Visit us on the web at www.SDCExec.com.

INTRODUCING WIDE-BODY FREIGHTER SERVICE LAX – HNL – LAX

5 FLIGHTS WEEKLYALL CARGO 767-300 FREIGHTER

• Early AM recovery time in HNL• One air waybill, one carrier from LAX to the neighbor islands• Online shipment tracking and tracing

888-94-ALOHA (25642)[email protected]

Los AngelesCalifornia

KonaHawai‘i

HonoluluO‘ahu

Lihu‘eKaua‘i

KahuluiMaui

Hilo

44035_Kellen.indd 25 2/19/15 10:05 AM

Member News


When you ship with us, we consider you our partner. Because, like you, an entrepreneurial spirit of change and growth guides everything we do. We’re in this together, and with our larger, expanding network, we’ll have even more opportunities in the future to give you the same exceptional service you’ve come to expect. That’s a great partnership.

With you all the way.

Find a solution that works for you at aacargo.comAmerican Airlines Cargo and the Flight Symbol logo are marks of American Airlines, Inc. ©2015 American Airlines, Inc. All rights reserved.

CARGO ON-HAND5:35 PM

15043-05_AAC_WithYou_BrandAds_Blueberries.indd 1 12/12/14 10:34 AM

EMO Trans Promotes Key LeadersManagement Changes to Support Continued Growth and Network Building

EMO Trans, Inc USA has announced management changes that will align the company for future growth and create paths for advancement and development across its global network.Effective January 1, 2015, company founder Jo Frigger assigned his CEO role to current President Marco Rohrer. Rohrer will assume the title of President and CEO, and Frigger will continue in his role as Chairman. EMO Trans will remain privately held, and there will be no change in company ownership or shareholding structure. “Since taking on the role of President in 2013, Marco has demonstrated a remarkable energy and unwavering drive to lead this company forward with a steady hand and resolute determination,” Frigger says. “Having him assume the CEO role will not change day-to-day operations and only serve to further strengthen customer focus.”Frigger, with more than 50 years’ history of company development in the freight forwarding industry is expected to continue as EMO Trans expands operations across a cohesive network of logistics services worldwide. As Chairman, he will focus on strategic global development and providing customers with greater global visibility.Frigger also announced several promotions of long-standing employees.

• Tom Harlin, CFO, was promoted to Executive Vice President and CFO. His new position expands his duties and now includes financial responsibility for EMO Trans’ overseas investments.

• Jenni Frigger-Latham, Vice President – Sales and Marketing, was appointed to the Board of Directors. She will be responsible for further growth and structure of our sales development at home and abroad, in conjunction with our own overseas offices and global network. Jenni will also take the lead on overseas agent appointments and their maintenance. She is also a board member of the Air Forwarders Association, serving on the e-commerce committee and chairing the educational committee.

• Uwe Kaeding was promoted to Vice President. In addition to further developing EMO Trans’ presence in the Midwest Region, he will also be responsible for the West Coast Region. “Uwe has shown his skill in

successfully growing the offices in the Midwest, and we are confident that under his guidance, the West Coast offices will expand and continue to thrive,” Frigger says.

• Peter Crooks in the Southeast Region was promoted to Vice President. In addition to his current responsibilities, Peter will chair a newly created Advisory Board of representatives from the company’s key departments. “We have created this group to ensure that the ideas and concerns of all offices, down to the grass roots level, will be properly recognized and addressed by the Board of Directors,” Frigger explains.

• Sven Frigger, Director of Compliance, was appointed to the Advisory Board. Sven, along with his department, has for quite some time advised our domestic and overseas offices on proper procedures to assure conformity with government rules and regulations.

• In addition, Donna Landeck has been hired to lead the Human Resources department for the company’s expanding workforce. She is charged with developing and streamlining personnel matters, as well as managing the 401(k) and health insurance programs. Donna will be based in the corporate office in Freeport, New York.

• “In keeping with our deep-rooted culture of Success by Performance, all of the appointees, with the exception of Donna, are long term members of the EMO Trans group,” Frigger says. “They satisfy my utmost concern that our culture, spirit, and open management style of mutual trust and respect will be maintained and nurtured.”

About EMO TransEMO Trans offers a solid commitment to providing its customers with superior performance. Since being founded in 1965 in Germany, the company has developed a global network with over 297 offices covering 80 countries worldwide. Globally, more than 7,000 employees work behind the scenes, moving all size shipments. Abiding by a corporate philosophy of Success by Performance, EMO Trans strives to create highly customized logistics solutions for each customer’s unique needs. http://www.emotrans-global.com.

44035_Kellen.indd 26 2/19/15 10:05 AM


When you ship with us, we consider you our partner. Because, like you, an entrepreneurial spirit of change and growth guides everything we do. We’re in this together, and with our larger, expanding network, we’ll have even more opportunities in the future to give you the same exceptional service you’ve come to expect. That’s a great partnership.

With you all the way.

Find a solution that works for you at aacargo.comAmerican Airlines Cargo and the Flight Symbol logo are marks of American Airlines, Inc. ©2015 American Airlines, Inc. All rights reserved.

CARGO ON-HAND5:35 PM

15043-05_AAC_WithYou_BrandAds_Blueberries.indd 1 12/12/14 10:34 AM44035_Kellen.indd 27 2/19/15 10:05 AM

Member News


ICAT Logistics Announces Explosive Growth, New Office Expansions, and Achievement of Key Business Milestones in 2014The award-winning agency-based freight forwarder continues its upward growth trajectory, expansion into new markets, achieving explosive year-over-year success, focuses goals for 2015

ICAT Logistics, Inc. (ICAT), a leading agency-based freight forwarder in the U.S., announced that it has continued to achieve significant growth and expansive business success over 2014.In the last several months, ICAT has continued to rise to ever-greater heights of business success and achievement, culminating in significant growth figures, including:

• 28% average agency growth;

• 72% growth in international shipping and logistics;

• 19% in tradeshow freight; and

• 80% of ICAT’s offices saw year-over-year growth.In addition, ICAT’s largest individual office growth to-date this year has reached an explosive 162%, owing in large part to the industry-leading turnkey recruiting, training, and development program to deliver critical support and tools to its agency partners in several areas, such as sales, marketing, and accounting, known as the ‘ICAT Way.’ This program continues to gain accolades for its demonstrated ability to drive continued growth and success among ICAT’s increasing network of global agency partners.Other factors driving ICAT’s continued, large-scale growth are the company’s recent expansions into new markets, with offices opened in 2014 in Los Angeles, California (LAX) and Nashville, Tennessee (BNA). Each of these most recent ICAT offices meets a strategic, emerging need in ICAT’s key vertical markets and has enabled the company’s network to expand to even greater heights.

• The LAX office, led by Erik Joliff, is primarily focused, but not limited to, the retail and apparel industries. Comprising of 10 employees, the office is located at 3090 E. Via Mondo, Rancho Dominguez, CA 90221.

• ICAT’s BNA office is led by Mark Holt and Jerry Patrick. The team opened their doors in October and will be moving into new space in 2015. They are excited to represent ICAT in the Nashville market.

“We are thrilled to announce these recent growth achievements and milestones our company has achieved overall these past several months,” said ICAT President and CEO, Rick Campbell. “2014 has

been a hugely successful year for us and we look forward to continuing to build on this growth and expansion as we move into 2015.”Going forward into 2015, ICAT plans to continue its focus to achieve a greater customer-centric service approach, along with expanding its outreach to its existing shipping customers.

About ICAT Logistics, Inc. Established in 1993, ICAT Logistics has become a leading agency-based freight forwarder in the U.S. ICAT Logistics provides customizable shipping and logistic solutions for each and every customer and is dedicated to helping its agency partners grow more profitably with The Agency Partner Program. The successful Agency Partner Program gives customers complete control of handling their freight while providing the best corporate support in the business. For additional information about ICAT Logistics please visit: www.icatlogistics.com.

44035_Kellen.indd 28 2/19/15 10:05 AM


44035_Kellen.indd 29 2/19/15 10:05 AM

Member News


United Cargo Names Jacques Leijssenaar VP, Cargo Sales EMEIA United Cargo today announced the appointment of Jacques Leijssenaar as Vice President, Cargo Sales EMEIA. In his new role, Leijssenaar reports to United Cargo President Jan Krems and is responsible for all United Cargo Sales activities in the EMEIA region.Leijssenaar comes to United with 18 years' experience at Air France/KLM Cargo. His most recent position was Director Italy and Switzerland, and he has also served as AF/KLM Cargo's Director Benelux and as KLM Cargo's Director of Sales for South, Central and Eastern Europe. Leijssenaar earned his master's degree in economics from the University of Amsterdam.United Cargo also described a new alignment in which leaders of the four Sales organizations now report directly to Krems. In addition to Leijssenaar, these leaders are:

• Jim Bellinder, Vice President, Cargo Sales Americas. Bellinder has 28 years' cargo sales experience with Continental Airlines and United Airlines. He has served as United Cargo's Vice President Sales since 2013.

• Mirco Renfer, Vice President, Cargo Sales Asia Pacific. Renfer joined United Airlines in 2006 and has led United Cargo's EMEIA Region Sales since 2008. He will transition from leading EMEIA Sales to leading APAC Sales for United Cargo.

• Helen Kristensen, Managing Director, Cargo Sales Strategic Accounts. Kristensen joined United Airlines in 1995 and became Cargo Sales Strategic Partner Manager in 2007. She has led Cargo Sales Strategic Accounts since February 2014.

"We believe this realignment will streamline our decision making and quicken our response to opportunities offered by our customers," said United Cargo President Jan Krems. "This will enable us to serve as an even more valuable business partner in 2015."United Cargo further announced the appointment of David O. King as Managing Director, Cargo Pricing, Revenue Management & Sales Strategy. King first joined Continental Airlines Cargo in 2006 and has led Cargo Sales Americas for United since 2013. He has also co-led Cargo Pricing & Revenue Management on an interim basis since October.United Cargo also reported the retirement of its former Asia Pacific Sales leader Rick Fall following a remarkable career of nearly 45 years in the airline industry. "We salute Rick for his dedication and thank him for his countless contributions," said Krems. "We are certain all his industry colleagues join us in wishing Rick a happy and healthy retirement."

We make it simple with TAPSM

Insuring Your Business Operation Doesn’t Haveto be Complicated

TAP Coverage Options Include: • Shipper’s Interest • Contingent Cargo Legal Liability • Cargo Legal Liability • Motor Truck Legal Liability and More

The Transportation Advantage Program is an innovative insurance program designed specifically for Logistics Service Providers

Additional Offerings Available to Complete Your Insurance Program Include: • Errors & Omissions • Property and General Liability • Contingent Auto Liability • Surety Bonds • ATA Carnets

Roanoke Trade, a division of Roanoke Insurance Group Inc.www.roanoketrade.com | [email protected]

Call us today at 1-800-ROANOKE to learn more about TAP and our seamless integration of business,

transportation and cargo insurance solutions for Logistics

Service Providers.

Recipient of Two AFA Recognition Awards Preferred Industry Affiliate Ten Year Air Cargo Conference Sponsor

44035_Kellen.indd 30 2/19/15 10:05 AM


Weiss-Röhlig USA LLC Appoints New CEO Weiss-Röhlig USA LLC, a joint venture of Gebrüder Weiss GmbH and RÖHLIG Logistics GmbH & Co KG, two strong partners and global leaders in air and sea consolidation and forwarding, have appointed a new Managing Director in North America. Effective December 9th, 2014 Mr. Mark McCullough took over the position of Chief Executive Officer. Native of USA Mark McCullough has considerable experience as an executive manager in international logistics. Thomas Hansen, COO of RÖHLIG Logistics, said this about Mark “Mark has been a part of Weiss-Röhlig since its inception, amongst others in the capacity as Branch manager for Chicago and the last 3 years as Vice President of Western Region and part of the management team. It is his industry knowledge and his exceptional leadership skills that will shape the future of Weiss-Röhlig. Our service offerings to our clients as well as being an employer of choice is what will set Weiss-Röhlig apart from our competition”.Over the last 20 years, Mark McCullough has worked in several different facets of the forwarding industry both locally and abroad. Sales, Operations Management, Branch Management as well as VP of Operations are just some of the roles in which he has served. Weiss-Röhlig USA LLC was established in 2003 and over the years grew successfully into a leader of the freight forwarding industry and currently 220 employees, 300 Million Dollar turnover and 12 offices in all major cities in the USA. Weiss-Röhlig stands on solid ground with ongoing and innovative development aimed at providing its customers with outstanding quality, customized services and unique solutions. Weiss Röhlig Moves

Nectia Solutions Joins WiseTech Global Partner ProgramsSouth America Region to Benefit from Chilean-based Provider’s CargoWise One Expertise

WiseTech Global, the technology development company behind industry-leading supply chain platform CargoWise One, has announced a partnership with Chile-based IT group Nectia Solutions, a leading regional provider of IT solutions and services.Nectia has joined the WiseBusiness Partner program as a distributor for CargoWise One in Chile and Columbia. Additionally, they have joined the WiseService Partner program, which will enable them to provide implementation, training, and consultancy services to existing WiseTech global customers throughout the region. The partnership with Nectia will provide greater ease of access to CargoWise One’s global capabilities, providing increased productivity, integration and efficiency to logistics companies in South America, a key growth area for WiseTech Global. As a WiseService Partner, Nectia will provide existing WiseTech Global customers with local, on-the-ground expertise from a vendor who understands the intricacies and unique requirements of their unique markets.

Juan Carlos Vasquez, Partner in Charge of Enterprise Solutions for Nectia, commented, “Nectia is proud to offer the CargoWise One solution, providing access to technology and unparalleled support of key business processes to companies in Chile and Columbia. The combined strength of CargoWise One with our consulting and support services provides our customers the best technology solution in the market, and gives them the tools to take full advantage of their technology investment.”Vlad Bilanovsky, Vice President Partner Management for WiseTech Global, remarked, “We have a solid foot print in South America, with a number of larger multinational customers as well as local companies already operating in the region. With the success of CargoWise One in South America, Nectia saw an opportunity to grow their own business by aligning themselves with our industry-leading product. Nectia has extensive experience with ERP solutions, and we see many synergies between our companies. With their strong infrastructure they can leverage their existing local success, combined with

our global product, to deliver wide-ranging value to logistics providers in the region.”

About WiseTech Global WiseTech Global is an innovative, multi-award winning creator and developer of cloud-based software solutions for the international and domestic logistics industries. Its leading product, CargoWise One, provides the most sophisticated and comprehensive end-to-end logistics solution in the world and forms an integral link in the global supply chain.With clients holding more than 100,000 user licenses across a customer community of 5,000 sites in 105 countries, WiseTech Global’s breakthrough software solutions are renowned for their powerful productivity, deep functionality, industry-wide integration, compliance capabilities, and global reach.Founded in 1994 and headquartered in Sydney, Australia, WiseTech Global operates worldwide from offices across the US, Europe, and Asia. For more information visit wisetechglobal.com

44035_Kellen.indd 31 2/19/15 10:05 AM

Member News


CargoWise One Continues Advancement of ACE Compliance SolutionsWiseTech Global Customers Benefit from Leading Edge Development to Satisfy New USCBP Requirements

WiseTech Global has announced that its industry-leading, single-platform solution, CargoWise One, is fully capable of satisfying every compliance requirement of the US Customs and Border Protection’s Automated Commercial Environment (ACE) mandate, set to begin November 2015. With customers using WiseTech Global solutions to file ACE entries since August of 2011, the company has made seamless integration with ACE a high priority. The solution of choice for forward-looking customs brokers, CargoWise One’s integrated Customs Brokerage solution has been significantly and continually enhanced in order to take full advantage of the added features and value that ACE brings.In order to facilitate business and shorten the gaps in trade processes, the US Customs and Border Protection developed ACE over the last fifteen years to automate and optimize border processing. ACE also aims to increase security by better monitoring the movement of cargo to and from the country. CargoWise One easily processes ACE’s new EDI message formats as well as all the customs data and details ACE requires, allowing customs brokers to deliver their services in ways that were unimaginable working with the older ACS, or Automated Commercial System.WiseTech Global customers have reported that CargoWise One easily and accurately submits their customs data into the ACE system, including ACE Entry Summaries, ACE Cargo Releases, and Post Summary Corrections. These companies not only report gaining increased productivity and efficiency throughout their operations, they are also now fully prepared every step of the way as additional ACE components are released. “ACE is coming, and brokers who have not yet started participating in ACE are really putting themselves in a vulnerable position,” says Craig Seelig, WiseTech Global’s Product Manager for Customs and Government Compliance and a Trade Ambassador for the Trade Support Network (TSN). “This is particularly true if their current ABI software does not support ACE. We have put a great deal of effort into staying on the leading edge of every ACE development. We have been participating in all of the ACE pilot programs, are involved in all of the active working groups for new ACE development, and we attend the ACE Software Developer’s conferences on a regular basis. Providing customs brokers the tools they need for success is our top priority.”

About WiseTech Global WiseTech Global is an innovative, multi-award winning creator and developer of cloud-based software solutions for the international and domestic logistics industries. Its leading product, CargoWise One, provides the most sophisticated and comprehensive end-to-end logistics solution in the world and forms an integral link in the global supply chain.With clients holding more than 100,000 user licenses across a customer community of 5,000 sites in 105 countries, WiseTech Global’s breakthrough software solutions are renowned for their powerful productivity, deep functionality, industry-wide integration, compliance capabilities, and global reach.

Founded in 1994 and headquartered in Sydney, Australia, WiseTech Global operates worldwide from offices across the US, Europe, and Asia. For more information visit wisetechglobal.com

Radiant Logistics To Acquire Canada-Based Wheels Group Inc.

• Wheels provides intermodal and truck brokerage operations in the United States and Canada;

• Cash and stock transaction valued at CAD$95 million expected to be accretive to earnings, as adjusted for amortization of acquired intangibles;

• Geographic and service offering expansion expected to enhance customer relationships and facilitate cross-selling opportunities across the combined Radiant-Wheels Network;

• Transaction expected to increase Radiant’s preliminary estimate for FYE June 30, 2016 revenue to USD $750 million;

Radiant Logistics, Inc.(“Radiant”) (NYSE MKT: RLGT) announced that it has agreed to acquire Wheels Group, Inc. (“Wheels”) (TSXV: WGI), one of the largest non-asset based third party logistics providers based in Canada. Pursuant to an Arrangement Agreement and court administered Plan of Arrangement governed by Canadian law, Radiant, through it’s newly formed wholly-owned subsidiary Radiant Global Logistics ULC, and has agreed to acquire all of the outstanding common shares of Wheels (the Arrangement"). The combined company will continue to trade on the NYSE MKT under the symbol “RLGT.” Under the Arrangement, Radiant has agreed to purchase Wheels for CAD $0.77 per common share, payable either in cash or by delivery of Radiant shares valued at USD $4.25 per share, for a total equity value of approximately CAD $69 million. With historic Wheels debt expected to be refinanced, the transaction is expected to have an estimated total enterprise value of CAD $95 million. The transaction is expected to close early in the second calendar quarter of 2015, subject to regulatory clearance, court approval of the Arrangement, Wheels shareholder approval and other customary conditions. Wheels’ board of directors unanimously approved the transaction. Wheels, founded in 1988, provides intermodal and truck brokerage services throughout the United States and Canada along with third party logistics solutions and value added warehouse and distribution service offerings in support of U.S. shippers looking to access the Canadian markets. Wheels’ Canadian operations are headquartered Toronto, Ontario, while its U.S. operations are headquartered in Chicago, Illinois. For the trailing 12 months ended September 30, 2014, Wheels generated total revenue of CAD $368 million, consisting of CAD $185 million in revenues attributed to its U.S. operations and CAD $187 million in revenues attributed to its Canadian operations, including CAD $4.0 million of intercompany transactions that will eliminate in consolidation.

44035_Kellen.indd 32 2/19/15 10:05 AM


Highlights of the proposed transaction • For the purposes of determining the consideration payable

to holders of common shares of Wheels, each Radiant Share will be valued at USD $4.25 and each common share of Wheels will entitle the holder thereof to elect to receive either CAD $0.77 in cash or 0.151384 of a Radiant Share. If the holders of common shares of Wheels elect to receive, in aggregate, greater than 6,900,000 Radiant shares, the number of Radiant shares will be prorated among the Wheels shareholders electing to receive Radiant Shares and the balance of the consideration will be paid in cash.

• The consideration payable under the Arrangement represents a 27.6% premium to the 20-day volume weighted average price of the common shares of Wheels on the TSX Venture Exchange ("TSXV") as of January 19, 2015 and a 35.1% premium to the closing price of Wheels' common shares on the TSXV, immediately prior to the announcement of the transaction.

• In connection with financing the Arrangement, Radiant has obtained commitments from Bank of America for a new USD $65.0 million senior secured revolving cross-border credit facility (replacing Radiant’s existing USD $30.0 million facility); a new CAD $29.0 million senior secured Canadian term loan from Integrated Private Debt Fund IV LP; and a USD $25.0 million subordinated secured term loan from Alcentra Capital Corporation and Triangle Capital Corporation. The financing is intended to fund the Wheels transaction and to provide capital for general corporate purposes, including potential future acquisitions.

• Radiant has also secured voting support and lock-up agreements from certain officers, directors and shareholders of Wheels (collectively, the "Support Group") who collectively own 69,620,288 common shares, representing approximately 77.7% of the outstanding common shares of Wheels. Pursuant to these agreements, subject to certain fiduciary considerations, the members of the Support Group have agreed to vote their Wheels common shares in favor of the Arrangement and elected to receive approximately 4.5 million shares of Radiant common stock representing approximately CAD $23.0 million of the CAD $69.0 million equity value of Wheels.

• The Arrangement contains customary deal protection provisions, including non-solicitation, superior proposal and right-to-match provisions in favor of Radiant and the payment to Radiant of a termination fee of USD $3.6 million together with an additional amount on account of Radiant's costs and expenses in connection with pursuing the Arrangement (up to a maximum of USD $1.0 million) if the acquisition is not completed in certain specified circumstances. In certain circumstances where the Arrangement is not completed, as described in the Arrangement Agreement, Radiant has agreed to pay Wheels’ costs and expenses up to a maximum of USD $1.0 million.

• The board of directors of Wheels, on the recommendation of the independent special committee, has approved the Arrangement and recommended that the Wheels

shareholders vote in favor of the Arrangement at a meeting of the Wheels shareholders to be called, subject to certain standard and customary fiduciary considerations.

• The value of the transaction represents an aggregate consideration of approximately 8.3 times projected EBITDA for Wheels for the fiscal year ending June 30, 2016 of CAD $11.5 million which includes approximately CAD $3.0 million in cost synergies related to contractual reduction in Founders’ compensation, redundant public company costs and facilities consolidation underway in Toronto. A reconciliation of adjusted EBITDA to the most directly comparable GAAP measure appears at the end of this release.

• Bohn Crain, Chairman and Chief Executive Officer of Radiant, will retain these positions and lead the combined company.

• Tim Boyce, President of Wheels’ U.S operations will continue as the chief operating officer of the combined organization’s North American brokerage operations and Peter Jamieson, President, Wheels Canada will continue as Senior Vice President and Country Manager for Canada.

Bohn Crain, Founder and CEO of Radiant, commented: "We are very excited to partner with the Wheels organization, which represents a service line and geographic expansion for both companies. We have been looking for a truck brokerage and intermodal platform to complement our forwarding operations for some time and we expect this transaction to be accretive to our earnings (as adjusted for amortization of acquired intangibles) within the near term and accelerate our growth. For our fiscal year ending June 30, 2016, our preliminary estimates for the revenues of the combined group are projected at USD $750 million." Crain continued, “ Historically, our organization has focused on bringing new value to the agent based forwarding community by: (1) leveraging our status as a public company to provide our partners with an opportunity to share in the value they help to create; (2) providing a robust platform in terms of buy rates, technology and a differentiated service offering to support our end customers; and (3) offering a unique opportunity in terms of succession planning and liquidity for our station owners. We believe the acquisition further enhances the value proposition we offer our existing operating partners who will now have the opportunity to access a broad range of rail and truck brokerage capabilities while further differentiating us in the marketplace as we seek to attract additional operators to our platform. “Wheels and Radiant share a common vision and provide complimentary services which will be leveraged to expand operational capabilities and geographic reach," said Doug Tozer, Chief Executive Officer of Wheels. "We look forward to working with Radiant to introduce intermodal and truck brokerage capabilities to customers in their network, as well as support them with opportunities here in Canada while leveraging Radiant’s domestic and international freight forwarding capabilities across our own customer base.”

44035_Kellen.indd 33 2/19/15 10:05 AM

Member News


Norwegian Air's Bjorn Kjos Honored with Inaugural “Rockford Award”International Air Carrier Recognized for Outstanding Contribution to Regional Workforce

A delegation representing Rockford, Illinois comprised of U.S. Senator Dick Durbin, Winnebago County Chairman Scott Christiansen, City of Rockford Mayor Larry Morrissey and representatives from the Chicago Rockford International Airport (RFD) and the third-largest global Maintenance, Repair and Overhaul (MRO) provider, AAR, presented Norwegian Air CEO, Bjørn Kjos, with the inaugural “Rockford Award,” on November 21st in Washington, D.C.A collaborative recognition between Winnebago County, the City of Rockford and the airport, the award is given to an organization or individual for outstanding contribution to the North American aerospace industry. Aerospace and aviation have been the DNA of much of the Rockford region’s success, serving as its foundation for many years.Norwegian Air utilizes a majority of Boeing aircraft of which its parts are a significant contributor to the creation and sustainability of jobs in the Rockford region. Each aircraft Norwegian Air purchases support Rockford’s specialized workforce and stimulates Rockford’s regional economy.“We are excited to present Bjørn Kjos and Norwegian Air with the inaugural Rockford Award,” said Mike Dunn, RFD Executive

Director. “Rockford has benefitted greatly from the resurgence of aerospace manufacturing and continues to employ targeted outreach to secure strategic partners that will further the region’s economy, including Norwegian Air.”Rockford boasts the sixth-highest concentration of aerospace production employment in the nation and is home to a critical mass of tier-one aerospace suppliers including Boeing, Woodward, UTC Aerospace Systems and GE Aviation.

Lufthansa Cargo flies calmly through a challenging yearCargo airline transports 1.7 million tons of freight and mail

Lufthansa Cargo took to the skies with well-filled aircraft over the past twelve months. Despite a slight decline in transported cargo volume, Germany’s number one freight airline was able to maintain its capacity utilization last year with a cargo load factor of 69.7 per cent (2013: 69.9 per cent). Faced by tough competition, the cargo airline transported around 1.7 million tons of freight and mail in 2014, posting a slight year-on-year decline of -2.7 per cent.In the past financial year, Lufthansa Cargo successfully focused on a flexible and demand-driven management of its capacities with the aim of boosting yields. At the same time, the freight airline invested in its network for its customers, adding Milan in Italy, Lagos in Nigeria and the Tunisian capital Tunis to its destinations. In addition,

business with key sectors like the oil and gas industry played a stronger role for Lufthansa Cargo. Since November it has been offering a non-stop Boeing 777F flight from Houston (USA) to Stavanger (Norway) every Saturday, linking two of the world’s most important centers of the oil and gas industry.“Competition on the market was very fierce again last year”, says Peter Gerber, Chairman of the Executive Board and CEO of Lufthansa Cargo. “The fact that we continue to fly in this environment with an unchanged high capacity utilization rate, testifies to the success of our network management and strength of our global offerings and sales.”Gerber’s forecast for the coming year is cautiously optimistic: “Despite the still difficult framework conditions, Lufthansa Cargo pursued its future program Lufthansa

Cargo 2020 with great de-termination in the past financial year.” A new IT system for cargo handling is being rolled out world-wide, marketing of lucrative express products further reinforced, and preparations for the new air freight terminal in Frankfurt, LCC, are in full swing. As another milestone of Lufthansa Cargo 2020, he also singled out the launch of a strategic joint venture with All Nippon Airways (ANA) on routes between Japan and Europe. This is to ensure further growth on the important routes between the two major economic regions.The economic result for the year 2014 will be announced this March. As already stated in the third interim report 2014, Lufthansa Cargo still assumes that its operating result will be higher than in the previous year.

44035_Kellen.indd 34 2/19/15 10:05 AM


44035_Kellen.indd 35 2/19/15 10:05 AM

Member News


Supply Vision Helps GIT Global Find TMS Efficiencies Supply Vision, a leading provider of cloud-based transportation solutions for logistics companies, helped GIT Global achieve efficiencies through a flexible TMS supported by an experienced team. GIT Global, a leading freight forwarder specializing in shipping between the US and South America, chose Supply Vision’s easy to use TMS to help enable the company’s growth.

Software Problem

In 2014, GIT Global identified a business need to improve efficiencies within their TMS. They were looking for a thorough but easy to use solution that could be implemented very quickly. The company went to market to find a business partner willing to provide best in class training as well as custom support to help create business processes efficiencies. After a thorough search, the company chose Supply Vision to be its TMS provider because the flexibility the system allows the operations team and Supply Vision’s commitment to customer service.

Flexibility and a Commitment to Excellence

The Supply Vision TMS helps GIT Global to service its customers more effectively, streamlining processes and creating efficiencies within the operations team. The Supply Vision/GIT Global business partnership is built on a commitment to excellence, customer service and partnership. This, in addition to the user-friendly approach the Supply Vision software takes to transportation management, has simplified business processes.

Ease of Use and Speedy Implementation

Supply Vision was eager to understand GIT Global’s pain points and to provide comprehensive business solutions. Once it was determined the Supply Vision software was the right fit, a speedy two-week training and implementation allowed the GIT Global team to get up and running quickly. Successful implementation was a direct result of both teams’ commitment to training and practice, supported by Supply Vision’s thoughtful delivery processes.Using the Supply Vision TMS, the operations team is able to easily execute both international and domestic shipments with the data needed to make informed business decisions. Management has access to Supply Vision’s robust suite of reporting tools to help stay on top of customer needs.

“Supply Vision’s support team was willing to listen to our needs and the system is very easy to use,” said, Brenda D’Angelo, Director of International Operations of GIT Global. “The implementation was fast and Supply Vision was hands-on through the entire process.”

Results

Supply Vision’s easy to use TMS is simple yet robust, capable of meeting all GIT Global’s needs while allowing the company to grow. This, combined with responsive customer support and a hands-on approach to speedy implementation make the Supply Vision TMS the right fit for any growing shipper or 3PL. “We consider ourselves a high-touch company,” commented D’Angelo. “We now have a user-friendly tool to help us be proactive about solving our customers’ problems.”

“Our partnership with GIT Global is just one example of how Supply Vision’s TMS is changing the way our customers do business,” said Amanda Bohl, CEO of Supply Vision. “We are committed to true business partnership with our clients. That means listening to concerns, understanding needs, and creating solutions, backed up by our commitment to outstanding customer service.”

About Supply Vision, Inc.:

Supply Vision is a cloud-based supply chain software provider. The company’s web-based platform delivers flexible tools to help organizations manage the supply chain by enabling collaboration between shippers and logistics providers. Supply Vision’s suite of products covers the entire supply chain and includes a Transportation Management System (TMS), Warehouse Management System (WMS), and Customer Portal.

Thanks its Platinum Members!

AIT Worldwide Logistics

Alaska Air Cargo

Delta Airlines Cargo

JetBlue Airways

Radiant Global Logistics

Rock-It Cargo USA LLC

Seko Worldwide

Southwest Airlines Cargo

Sterling Transportation

Team Worldwide

Transgroup Worldwide Logistics Inc.

US Airways

AFA Platinum TY Ad 2014.indd 1 1/10/2014 1:45:03 PM

IAG Cargo

44035_Kellen.indd 36 2/19/15 10:05 AM


Thanks its Platinum Members!

AIT Worldwide Logistics

Alaska Air Cargo

Delta Airlines Cargo

JetBlue Airways

Radiant Global Logistics

Rock-It Cargo USA LLC

Seko Worldwide

Southwest Airlines Cargo

Sterling Transportation

Team Worldwide

Transgroup Worldwide Logistics Inc.

US Airways

AFA Platinum TY Ad 2014.indd 1 1/10/2014 1:45:03 PM

IAG Cargo

44035_Kellen.indd 37 2/19/15 10:05 AM

Member News


44035_Kellen.indd 38 2/19/15 10:05 AM


New M

embers

Meet Our Newest Members!

For more information on these and all AfA members, visit our membership directory at www.airforwarders.org

5 Star Logistics Network Huntington Station, NY

Aloha Air Cargo Honolulu, HI

Corporate Cargo Express Services Ikeja, Lagos

FreightPal Studio City, CA

Jonesers Express Transportation Windsor Locks, CT

Karachi Cargo Services Pvt. Ltd Karachi, Sindh

Tricounty Courier Coral Springs, FL

44035_Kellen.indd 39 2/19/15 10:05 AM

>www.wisetechglobal.com

[email protected]

CargoWiseOne

CargoWise One is a single-platform software solution built upon a single guiding principle: increasing your productivity. It’s an enterprise-class management system for logistics businesses wanting improved integration, automation, and communication with the supply chain: global capabilities for a global industry.

CargoWise One is designed to meet the diverse industry. Whether you’re a small-to-medium-sized supply chain provider or a multinational freight forwarding operation, CargoWise One’s highly flexible and feature-rich system allows you to increase productivity where you need it the most.

The single-platform solution that puts productivity at the center of the supply chain.

The next generation of logistics execution software

Forwarding

Customs Clearance

Liner & Agency

CFS

Warehouse

Land Transport

Track & Trace

Geo-compliance

Enterprise Capabilities

AfA FINAL.indd 1 2/27/2014 5:16:24 PM44035_Kellen.indd 40 2/19/15 10:05 AM

the push toward a paperless environment:

Documents