bill stankiewicz copy of expeditors newsletter insights 2009 ed2

12
ISSUE 2 - VOLUME 12 - 2009 International Road Freight Linking European Roads Customer Sourcing Profiles Final Mile Service Direct Delivery LCL Express GULF COOPERATION COUNCIL COUNTRIES

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Best Regards, Bill Stankiewicz Vice President and General Manager Shippers Warehouse of Georgia Office: 678-364-3475 [email protected] http://www.linkedin.com/in/billstankiewicz2006http://www.slideshare.net/BillStankiewicz

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Page 1: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

ISSUE 2 - VOLUME 12 - 2009

International Road Freight

Linking European Roads

Customer Sourcing Pro�les

Final Mile Service

Direct DeliveryLCL Express

GULF COOPERATION COUNCIL COUNTRIES

Page 2: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

Insights

Let te r f rom Ed i to r

Customer Sourcing Profiles . . . . . . . . . . . . . . . . . . . . . . p .02

Direct Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p .03

International Road Freight . . . . . . . . . . . . . . . . . . . . . . . p .05

LCL Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p .07

Gulf Cooperation Council Countries . . . . . . . . . . . . . . . . . . p .08

Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p .11

Let te r f rom Ed i to r

Let te r f rom Ed i to rLet te r

f rom Ed i to r

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It seems logical that we should all be able to view an insured shipment from order initiation through freight movement, on to inventory management, finishing with customs clearance and delivery. End to end systems integration is helpful when viewing shipment status. The key is that your department knows how to access the information quickly, knowing we can give you visibility through Expeditors worldwide technological systems integration.

In 64 countries, our operations teams work as a cohesive unit to manage these shipments from conception to delivery.

These offices within our network are consistent in not only technology, processes and procedures but also in presence and personnel. We take pride in this consistency and will give you a look into our locations in the Middle East Gulf States: Kuwait, Saudi Arabia, Bahrain, Oman, Qatar and the UAE.

Our Road Freight, LCL Express and Direct Delivery services are unique in each country as well, and based on the same consistent measures you expect from us. We help you become more efficient and thus you are able to remove excess costs. We depend on our local expertise to maintain this consistency.

These local experts are well versed in border security, proximity to ports, size and structure of the roads, all of which have an impact on freight movement. We can bridge the gap between the speed of airfreight and the economic value of ocean freight. This gives you faster order-to-delivery cycle times and keeps you on budget even when unexpected events impact a portion of the shipping process.

With so many delivery options available, let us manage your movement end to end and give you the visibility using consistent worldwide technical access so you can manage everything else.

Blake Gray Corporate Communications [email protected]

ta b l e . o f. c o n t e n t s

Page 3: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

Customer sourCing ProfilesAs a U.S. importer have you ever wondered how your sourcing pattern compares to others who are importing the same products? Are there shifts in sourcing locations taking place that you may not be aware of? Are you looking for alternative or additional countries to source certain products from? Are you considering a direct import program for product that you are currently buying on a domestic basis? We often receive requests from our customers to help them answer these types of questions.

To further help our customers we have developed a new reporting capability: Customer Sourcing Profiles.

We are now able to generate confidential sourcing profile reports for our U.S. customs brokerage customers, merging the customer’s sourcing related data with similar data for all U.S. importers sourced from the United States International Trade Commission. These reports provide our customers with the following types of information:

• Tariff Number Summary Profile This report will provide the customer a table of their active tariff numbers and the associated entered value based on their U.S. Customs declaration data.

• Sourcing Profile This report will allow a side by side comparison of the customer’s sourcing pattern versus other U.S. importers.

The sourcing profile breaks out the following information:

the importer’s import value by -country for each tariff number,the percentage of the importer’s total -import value broken out by country of origin,the percentage of total U.S. imports -for a particular tariff number,the total import value into the U.S. -by country of origin for each tariff number, andthe percentage of total U.S. imports -for each tariff number broken out by country of origin.

• Special Trade Program Profile Based on International Trade Commission data, this report will capture by tariff number what percentage of total import value was entered under a special trade program.

• Tariff Query Profile This provides a report for designated tariff numbers to be used when considering alternative markets for specific items or researching possible sourcing markets for products currently being purchased on a domestic basis.

The value of these reports has not only been in helping to answer specific questions, but more importantly, they have helped raise additional questions for consideration (or provide validation) in relation to sourcing issues.

Of course just because a customer may have a sourcing pattern that is different from all other importers of similar products does not automatically mean that something is wrong. There are many factors that influence sourcing decisions: product quality, brand image, market proximity, concentration of purchasing power with suppliers, risk factors, etc.

The feedback that we’ve received from customers for whom we have provided this reporting to has been extremely positive and appreciated as another way in which we provide them with value.

For more information on Customer Sourcing Profiles, please contact your local Expeditors representative.

Madeleine Veigel Director Customs, The Americas [email protected]

ISSUE 2 | 2009 2

Page 4: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

Insights

The Final Mile service provides customers with numerous time saving and cost eliminating benefits:

Elimination of U.S. distribution center (DC) costs -

Reduction or elimination of inventory carrying costs -

Reduced damage risk as a result of less handling at destination -

Reduced transit time compared with cross-dock or DC model -

Reduced cost through utilization of multiple U.S. gateways (zone skipping) -

Order to delivery (end-to-end) visibility in one system -

Lower customs clearance costs through the use of consolidated -international air waybills

Final Mile Service Dir

ect

Del

iver

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In the past eight months, we have seen many major corporations intensifying their efforts to streamline and optimize their supply chains by improving efficiencies and removing excess costs.

To address these needs, Expeditors Direct Delivery suite of services was specifically designed to help customers achieve supply chain improvements. One of the most preferred components of Direct Delivery is the Expeditors Final Mile program.

Final Mile is a DC-bypass program that enables customers to bulk ship multiple orders directly from non-U.S. manufacturing facilities to selected U.S. gateways under one consolidated international house air waybill (per gateway) for subsequent breakdown and distribution throughout the country to multiple final consignees.

This unique transportation arrangement combines Expeditors’ international heavyweight capabilities with our domestic partner’s (U.S. Integrator/Courier) superior U.S. network for a cost effective and seamless door-to-door transit. The Expeditors and courier’s systems are fully integrated such that customers receive complete door-to-door shipment visibility at both the sales order and carton levels using Expeditors’ exp.o® visibility tool. This program is ideally suited to support door-to-door transit times ranging from 4-6 days, which greatly reduces the transit times traditionally associated with standard transportation and distribution models.

Another distinct advantage of this program is it requires only minimal I.T. support from the customer during the initial set up process. In order for us to generate an integrated Expeditors and courier label at origin, the customer must provide us with an Advance Shipment Notice with the appropriate sales order detail.

The process is fairly straightforward and simple. The customer sends us an electronic message that contains details such as order ID, carton ID or serial numbers, and delivery address. This information is populated into our system and is immediately available for viewing

Page 5: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

ISSUE 2 | 2009 4

in the exp.o® visibility tool. This system was specifically designed to integrate the shipment details between Expeditors and the courier as well as the mechanism for creating a combined shipment label at origin.

We then receive the freight at origin. The warehouse operator scans each carton into the system, which generates an integrated courier label that is affixed to each carton. This barcoded label includes the standard delivery information as well as the Expeditors international air waybill number. The origin branch then assembles the cartons and ships them as normal consolidated freight to the selected inbound U.S. gateways.

Upon ‘wheels up’ notification, the shipment is pre-cleared in the U.S. under the consolidated international air waybill. When the freight physically arrives at the inbound U.S. gateway, it is tendered directly to the courier. As the freight is moved to its final delivery address, the statuses are continuously updated and visible in exp.o®.

From a visibility standpoint, customers can track their shipments in exp.o® (via the Expeditors website) using any of the relevant reference numbers - order number, individual carton number, international house air waybill number, or any other number that the customer includes in the order process. Shipments are visible from the time that Expeditors receives the initial ASN through to the final delivery to the ultimate

consignee. Customers can also enable their customers access to their inbound orders using the same system.

We also offer invoicing flexibility. We can accommodate either a single invoice that includes the total door-to-door service or we can invoice the customer for the international segment (including customs clearance) and the courier can invoice for the domestic delivery per the customer’s existing courier contract.

Expeditors has undertaken an extremely innovative approach to the traditional supply chain model. We provide our customers with options that include quicker order-to-delivery cycle times, while simultaneously offering opportunities to reduce existing supply chain costs.

For more information on the Expeditors Final Mile service offering, contact your local Expeditors representative.

Lance David Global Air Product Development [email protected]

END-TO-END VISIBILITY

Direct Delivery - Final Mile

Manufacturer

Customer Responsibility Expeditors Responsibility

Expeditors Branch

Expeditors Control

Expeditors Control w/ Courier

Traditional Supply Chain

Manufacturer

Customer Responsibility Expeditors Responsibility

Distribution Center

Expeditors Branch

Expeditors ControlCustomer Control

SEGMENTED VISIBILITY

Page 6: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

InternatIonal road FreIghtExpeditors has addressed customers’ domestic and international road freight needs in various industries like automotive, oil and energy, aviation, electronics, retail and healthcare. Our road freight service offering is a complete one-stop-shop that includes an experienced and established network along with unique solutions that will provide flexibility for your supply chain.

Our European network consists of 40 branches and includes key gateway locations such as Dublin, Birmingham, Amsterdam, Paris, Düsseldorf, Prague, Milan, Vienna, Warsaw, Lisbon, Oporto, Munich, Barcelona, Budapest, Ankara, Istanbul and Athens. Daily departures are available to multiple locations throughout Europe and the Middle East.

FTL & LTL Services This offering provides a secure, fast and effective way to move your various sized shipments within Europe and the Middle East, direct from your door to your consignees.

Recently we were able to build on an existing relationship with a customer who primarily utilized our Air Import and Export services. We arranged shipments of machinery, via FTL and LTL, from the Netherlands to Romania. As their business grew, they needed to include return shipments. We were

able to modify our services to their requests and now offer weekly departures from both facilities. We’re now working on a value-add that will offer an express service for emergency shipments. When looking for a company to help them in their new venture, they needed a logistics provider who was willing to tailor their services to meet specific requirements. Expeditors was able to answer the call.

Additional services to compliment FTL and LTL include convoys and police escorts to offer maximum security for double drivers. GPS tracking and real-time optimization routing guides are also available for fast and accurate direct deliveries.

White Glove DeliverySome customers need an enhanced delivery service that requires extreme care. By utilizing this service you can arrange for delivery or retrieval of high value products, custom packing and crating before delivery, on site set up or removal of equipment, as well as unpacking and debris removal.

Expeditors Groupage NetworkThis offering is a door-to-door freight consolidation service that is supported by a hub-and-spoke model. By developing our number of gateway consolidation centers, we link supply to

Linking EuropEan roads

Page 7: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

6ISSUE 2 | 2009

InternatIonal road FreIghtdemand in an integrated domestic and international capacity. Our network operates daily departures up to 3,000kg per shipment. Since our primary business is moving palletized freight, our groupage service is very important to the region.

Other Road Freight services include:

Transportation of any type of load, including, hazardous -materialsGuaranteed day and time definite deliveries -Handling of non-palletized goods -Critical Logistics Services (such as Aircraft On Ground) -Project Cargo Services for oversize shipments -Merge in Transit -

Lead Logistics ServicesWe are often responsible for managing a network comprised of a number of our own core services bundled together with other providers. The other providers are often a combination of those we work with already on a strategic level, new providers selected specifically for their niche skills and ones that come highly recommended by our customers. Our network success and stability depends on how we select, onboard and manage multiple providers to form a single network.

TrusTed ParTnershiPsA network of asset-based carriers with strictly approved Vendor Service Agreements.

Access to over 170,000 vehicles across the European continent .

Strategic relationships with key parcel integrators and niche providers to fulfill express, standard package and pallet requirements and specialized services.

adaPTable selecTionsTime-definite transportation solutions.

True multi-modal door-to-door service.

Combine with any of our air and ocean freight service offerings.

Linking EuropEan roadsComplete VisibilityWith each of these services our advanced online tracking system, exp.o ®, provides continuous visibility to the flow of your supply chain. By updating real time information once a shipment is booked, we provide an estimated date of arrival and proactively update our files when freight has delivered. Our team ensures that on-time efficiency is consistently met by actively working with local, regional, and international vendors. Together we establish a range of quality measures early in the process which sets both parties up for success.

We are continuously looking to spot trends set to shape the future of the road freight industry in Europe. The size and structure of the road freight market is set to change as current Intra-European trade welcomes Russian and Middle Eastern arrivals. Our priority is to collaborate with our partners in this new environment and economic climate to continue offering you innovative solutions.

Bart Bak Road Freight Manager Europe and Africa [email protected]

Page 8: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

Insights

1 A US retailer’s overseas supplier has unexpected production delays which cause their goods to miss the cut-off for their scheduled ocean shipment.

We are all aware that this is common in the industry, and know the goods are on a tight marketing schedule and must be on the store shelves for maximum consumer impact. Not to mention you don’t want the retailer to handle and inventory the product. However, the next ocean sailing will not be able to deliver the goods in time, and traditionally, the alternative was to choose air freight. Unfortunately, their margins are tight and product costs were built around shipping via ocean and just in time delivery to the store. But these delays have forced the shipment to move via air and the discrepancy in the cost has now surpassed the budget. They were unaware of other options.

At Expeditors, we hear variations of these stories every day; production problems, stock-outs,

marketing commitments, samples, direct to retail stocking programs and changes to smaller, more frequent shipments.

All of these situations have traditionally led to one shipping option: air freight. Our customers are telling us, “I don’t need the cargo in five days, I just need it in less than 30 days. Do I need to pay air freight rates, just to avoid the time and inconvenience

of traditional ocean LCL service? Give me a better option.”

“Express” and “Ocean LCL” are two shipping terms not typically heard together. However, to help bridge the gap between air freight’s speed and consistency and ocean freight’s economy, we have created LCL Express.

Our LCL Express program was created on the basis of our existing Ocean LCL global network. With dedicated weekly service from 20 origin points in the Asia Pacific region to any door location within the continental United States, this service is designed to be simple, fast, secure and reliable.

Expeditors’ LCL Express service is easy to use. There is no need to call multiple providers or make separate arrangements; simply book the shipment at origin as LCL Express and let Expeditors do the rest. With the need for reliability, speed and visibility in mind, LCL Express is integrated into our technology network.

After we mark your shipment as LCL Express at the time of booking, we will urgently push it out from origin. Before arrival at destination, we confirm the final door delivery address and pre-clear the shipment. Our domestic cargo team is ready with premier LTL carriers to deliver your shipment as soon as it arrives. This enables transit times to be a third less than traditional LCL services.

LCL Express is also more cost efficient; pricing is per kilogram from origin CFS to destination door in four US delivery zones. There are no hidden or additional fees and no additional invoices. Rates

2 A hi-tech manufacturer has changed their order cycle to smaller, more frequent shipments in order to reduce carrying costs and to more closely match actual

sales. In order to keep the supply chain moving quickly and consistently, air freight has been the only available mode of transport. Traditional ocean LCL is often too slow, too unreliable or both. You need better choices.

range from a third to half the cost of traditional full service air freight.

Expeditors is also committed to creating environmentally friendly and sustainable transportation programs. LCL Express is a cleaner shipping option with fewer carbon emissions. If maintaining an environmentally sound supply chain is part of your company’s goals, LCL Express is another option.

To ensure the security and efficiency of your shipments, all LCL Express shipments are managed by Expeditors’ people, in Expeditors’ systems and completely under Expeditors’ control. You can follow your shipments every step of the way via Expeditors’ visibility tool, exp.o®, from booking all the way through to final door delivery. As with all services, custom reporting and auto-alerts can also be set up to meet individual customer needs.

LCL Express is faster and more time definite than traditional ocean LCL, and can be a cleaner, lower cost option than other modes. The service is 100% managed within Expeditors’ systems by well trained and dedicated Expeditors staff. As many of our customers are discovering, LCL Express is a good option to have in your transportation tool kit.

Contact your local Expeditors representative and ask for LCL Express. You will be surprised at how fast we’ll go for you.

Brian Murphy Manager LCL and Network Planning Global Ocean Services [email protected]

LCL EXPRESS f f f f f f f f f ff f f f f f f

Page 9: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

8ISSUE 2 | 2009

As the environment changes in each of the Gulf Cooperation Council (GCC) countries, Expeditors

promises consistency and loyalty to our partnerships.

The GCC was established as a common market and cooperation between the United Arab Emirates, State of Bahrain, Kingdom of Saudi Arabia, Sultanate of Oman, State of Qatar and the State of Kuwait.

Expeditors is located in all of these six countries within the GCC, represented by nine branches, Oman being the most recent office to join our network in 2009. We have the combined strength of a global network to step in, enhance and optimize your supply chain.

Each office in this region adheres to the strict standards of every worldwide Expeditors office. This includes ISO certification and insurance, Dubai and Qatar are compliant licensed cargo insurance brokers. Our Riyadh office, personnel and technical set-up are the same as our Los Angeles, Hong Kong or Paris offices.

These offices are managed from our regional headquarters in Beirut and Dubai. Our Dubai office is tied to Bahrain, a full licensed broker, which in turn is the key to Saudi Arabia - the export hub to the Middle East.

These GCC countries have strong balance sheets, large cash reserves and a healthy banking system. The region has a forward looking vision with a promising future.

As in all worldwide offices, the Expeditors GCC region is diversified with integrated technology in Air, Ocean, Distribution, Customs Brokerage, Road Freight, Order Management, Project Cargo, Insurance and Multi-Modal

options. We consistently educate the community through city-wide seminars, bringing together experts on all aspects of transportation and supply chain challenges.

With Kuwait and Dubai being geographical gateways into Iraq, we have bonded facilities and a secure transportation process to commercial sites or military camps. Dubai also serves as a major gateway for Sea+Air traffic from Asia to Europe and North America.

We also offer unique trucking solutions throughout the Gulf Region. We have established safety requirements for road freight, trans-loading, sorting and cross dock shipments. Expeditors has strength in utilizing the Jebel Ali Port in the UAE as an import transship point. This enables trucking to Qatar, Saudi Arabia and multiple destinations, and has led to an increased ease in importing by offering alternate routings.

Distribution and warehousing has proven important for the region. Our Abu Dhabi office is the largest warehousing and distribution vendor in the city, offering temperature controlled options and shock frequency reliability. Full security is especially important for our clients in this region, and we comply with all security standards, 24/7/365.

Most of us think the oil and gas industry is the only sector in this part of the world, but there are a vast number of other industry specific markets which we have serviced for years such as healthcare, aerospace and specialized project cargo. Each country is focusing on diversifying their revenue streams, developing their industrial sectors, and building their economies as they are on the rise.

To increase your awareness about this region our local District Managers offer you some key facts on the following pages...

f f f f f f f f f ff f f f f f f

Gulf Cooperation Council Countries

Page 10: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

Insights

TiTle Sub-TiTle

OmanEstablished in 2009, Expeditors is located in Muscat with a current staff of 8.

The oldest independent state in the ʚArab world, Oman is one of the more traditional countries in the Gulf region.

Oman has diplomatic relations with ʚover 140 countries.

Major trading partners: US, Japan, ʚIndia, UAE, South Korea, China, EU, Thailand

The Green Award Foundation ʚannounced the Port of Sohar to be the first port in the Middle East to receive the Green Award license.

Port of Salalah is a world class ʚtransshipment hub and can accommodate the world’s largest container ships.

US Originated Goods Imported ʚfrom USA are duty free into Oman.

A free-trade agreement with the ʚUSA took effect 1 January 2009, eliminating tariff barriers on all consumer and industrial products. It also provides strong protections for foreign businesses investing in Oman.

Major Industries: Oil, Natural Gas, ʚAgriculture and Fishing.

Strategic location on Musandam ʚPeninsula adjacent to Strait of Hormuz; a vital transit point for world crude oil.

Oman is actively pursuing a ʚdevelopment plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sectors contribution to GDP to 9% by 2020.

Sohar is the upcoming industrial ʚarea for oil and gas companies.

QatarEstablished in 2007, Expeditors is located in Doha with a current staff of 27.

With a centralized location in the ʚGulf, many air and ocean carriers service Qatar, which allows for ease in product distribution.

The 45 km Friendship Causeway, ʚlinking Qatar and Bahrain, will further open up intra-regional trade and travel.

Top Import Trading Partners: ʚItaly, UK, France

Top Export Trading Partners: ʚJapan, Singapore, S. Korea

Qatar’s population of approximately ʚ1.9 M is made of around 80% expatriates.

New Doha Airport, opening in ʚ2012, is expected to initially handle 24 M passengers annually and over 50 M when fully completed in 2015.

Qatar’s construction sector is worth ʚ$119B USD and includes the Gulf ’s first hydrocarbons industry business centre due to open in 2010.

Qatar’s primary imports include ʚmachinery, mechanical appliances, base metals, vehicles, food products and retail.

The North Dome Field is the world’s ʚlargest Natural Gas field.

Oil and gas accounts for 70% of ʚexport income used to diversify the economy.

Unemployment is almost non- ʚexistent in Qatar, and the State’s economy is forecast to grow by 26% in 2009.

The Pearl, Qatar’s first man-made ʚisland, when completed in 2010 will create 32km of new coastline and will consist of 13 islands.

Established in 1998, Expeditors is located in Dubai with a current staff of 102. Established in 2007, Expeditors is located in Abu Dhabi with a current staff of 19.

The UAE has the world’s sixth ʚlargest oil reserves and possesses one of the most developed economies in the Middle East. Dubai is the gateway to the entire Gulf Region.

The oil industry remains the driving ʚforce and major investments in upstream oil projects increased by 30%.

The UAE healthcare market is ʚgrowing rapidly, from $5B today to an estimated $8B by 2012.

The UAE has been spending $2B ʚa year to send citizens abroad for medical care. Today, the focus is on channeling money back into the UAE with new medical buildings and laboratory facilities.

Tourism and retail have become ʚmajor factors in the UAE economy and remain very active today.

As one of the few busiest airports to ʚshow positive growth, there was a 2% passenger increase in the Dubai Airport in the first quarter of 2009.

Dubai remains the glitzy icon for ʚeconomic development and massive investments in the Middle East, boasting the largest man-made islands and the largest shopping mall.

Many investments have been poured ʚinto real estate, tourism and leisure, with developments such as Masdar City and Saadiyat Island, bringing Abu Dhabi’s status as an emerging market.

There are seaports throughout the ʚcountry; Jebel Ali Port is the largest port in the Middle East, and the seventh busiest in the world.

The Jebel Ali complex in Dubai ʚincludes a deep-water port and a free trade zone in which all goods for re-export or transshipment enjoy a 100% duty exemption.

UnItED araB EmIratES

Page 11: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

SaUDI araBIa Established in 1992, Expeditors is located in Riyadh with a current staff of 30. Established in 1992, Expeditors is located in Jeddah with a current staff of 58.

Established in 2008, Expeditors is located in Dammam with a current staff of 15.

With a record 2009 budget of SAR ʚ475B ($127B), the Saudi government is committed to stimulating the local economy and increasing infrastructure.

The King Abdullah Financial ʚDistrict in Riyadh will be the headquarter for CMA (Capital Market Authority).

Rabigh City is considered as important ʚas Jeddah, due to growth in major projects in the metropolitan area.

Large manufacturing hubs with ʚfinished goods re-exported via truck.

The Kingdom’s high budget is heavily ʚdependant on crude oil prices.

Crude oil traded at a ceiling rate of ʚ$147 / barrel in the last quarter of 2008, creating a surplus for the economy.

Jeddah is a hub for major oil and ʚenergy companies and the busiest port of the Kingdom of Saudi Arabia.

Riyadh, the capital of Saudi Arabia, ʚcontains three large industrial areas and is home to the largest and most profitable non-oil company in the Middle East.

Jubail is a major industrial city in the ʚEastern Province, and stands as a symbol of the government’s vision of Saudi Arabia’s future development and is the sight of the world’s largest petrochemical complex.

In the Eastern Province, Dammam ʚcontrols the worlds largest oil reserve.

As the single largest consumer ʚmarket in the Middle East, the retail sector is growing rapidly.

Major retail brands based out of Saudi ʚArabia are expanding rapidly, leading to strong consumer confidence.

BahraInEstablished in 2008, Expeditors is located in Manama with a current staff of 8.

Bahrain is an archipelago of 40 ʚislands connected to Saudi Arabia by a 23-km causeway, which opened in November 1986.

Bahrain has an excellent road ʚnetwork with causeway connections to Muharraq, Sitra and Saudi Arabia. A road link is also planned between Bahrain and Qatar; construction is due to complete in 2013.

As the leading financial centre in the ʚregion, Bahrain has been contending with growing regional competition.

Maintaining good relations with ʚthe USA, the Kingdom hosts the fifth fleet and the two countries have concluded a free-trade agreement.

The official language is Arabic. ʚEnglish is very widely spoken and is the principal language of commerce.

Unemployment has remained high ʚamong the local population with the Bahrainisation of jobs being a slow process in view of its potential effect on corporate competitiveness.

The economy is open and diversified ʚwith hydrocarbons, aluminum, financial services and tourism.

The decline of oil production is ʚworrying, with the economy remaining very dependent on oil revenues.

KUwaIt Established in 1997, Expeditors is located in Kuwait City with a current staff of 25.

Kuwait is in the process of ʚdiversifying its economy by capitalizing on its strategic location.

In 2009, the Central Bank of Kuwait ʚdevised a US $5.15B stimulus package to help boost the economy.

There is a recent airport expansion ʚplan to cater to 20M passengers.

The fourth richest country in the ʚworld, Kuwait’s immense wealth is derived in large part from its upstream and downstream oil industries, with an estimated 10% of the world’s oil reserves, or 104B barrels.

Being a tax-free country, Kuwait’s ʚoil industry accounts for 80% of government revenue. Petroleum and petrochemicals account for half of the GDP and 95% of export revenues.

Increase in oil prices since 2003 resulted ʚin a surge in Kuwait’s economy. Kuwait’s current oil production of 2.8M BPD is expected to increase to 4M BPD by 2020.

The non-oil sector is 45.55% of ʚKuwait’s gross domestic product; the retail sector accounted for 3.4%.

A $189M healthcare plan aims to ʚupgrade existing infrastructure and expand capacity.

Manufacturing sectors, including ʚsteel and cement, are growing on the back of massive regional construction projects.

Other major industries include ʚshipping, construction, cement, water desalination, construction materials and financial services.

Page 12: Bill Stankiewicz Copy Of Expeditors Newsletter Insights 2009 Ed2

ht tp : / /w w w.expedi tors .com

Contact Insights | Corporate Headquarters | Tel: 206.674.3400Managing Editor: Blake Gray | Production Manager: Brian Lutzvick | Copy Editor: Annie Frith | Designs: Kash Wimer Articles are contributed by Expeditors offices worldwide. Copyright 2009Insights newsletter articles are compiled from a number of public sources that, to the best of our knowledge, are true and correct. It is our intent to present only accurate information. However, in the event any information contained herein is erroneous, Expeditors International of Washington, Inc. accepts no liability or responsibility.

Insights

Expeditors International of Washington, Inc.1015 Third Avenue, 12th FloorSeattle, WA 98104

NORDSTROM AWARDGrowing from bronze to gold level performance, Expeditors receives the Nordstrom Supplier Logistics Award for the third consecutive year.

“The jump to gold this year says a lot about the dedication of all the people working on the Nordstrom team. They evaluated the process and found solutions that brought about increased efficiency and accuracy for both Nordstrom and Expeditors. I am very proud of the entire team.”

- Kevin Postlewait, Distribution Manager Portland

Seattle Times Top 100 NW CompaniesExpeditors cracked the top 10 in the Seattle Times’ annual ranking of the Top 100 Northwest Companies. The overall weighted score had Expeditors out ranking many other popular global companies.

To qualify, the company must be based out of Washington, Oregon or Idaho USA and have been traded on a major stock exchange. Additionally, they used four metrics to come up with the weighted score: sales per employee, operating income, return on equity and stock-price appreciation.

AWARDSOuR PeOPle