1) The global economy experienced an unprecedented downturn in 2009 but began recovering in 2010, though growth has slowed in the second half of the year. 2) Emerging trends for logistics providers include increased volatility, cost pressures, and unpredictability requiring greater flexibility and customer focus. 3) Growth opportunities exist in collaborating more closely with customers, offering integrated solutions, and expanding in emerging markets like the BRIC countries which are expected to double freight volumes in the next 15 years.

1. European 3PL Summit Brussels
November 24, 2010 1
Monika Ribar
November 24, 2010
European 3PL Summit
Brussels

2. European 3PL Summit Brussels
November 24, 2010 2
Before 2007 you didn’t need a crystal ball …
• Business history was repeating itself
from year to year
• Cyclicality of supply and demand
was predictable
• Growth was a given
• Infrastructure congestion was the biggest problem
• The western economies were the main
center of gravity

3. European 3PL Summit Brussels
November 24, 2010 3
World trade collapse in 2009 and recovery in 2010
110 65
World trade has
always been 105 60
volatile but
100 55
the 2009 dip
was exceptional
95 50
and resulted in
corresponding 90 45
figures
85 40
80 35
75 30
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
German ifo business climate index (lhs) U.S. PMI index (rhs) Global PMI index (rhs)
Source: ISM institute for supply management, Ifo Institute for Economic Research

4. European 3PL Summit Brussels
November 24, 2010 4
Macro update: slowdown in second half 2010
110 PMI vs. ifo index 65 Leading indicators pointing to slowdown of growth …
105 60 • Most indicators have returned to pre-recession levels but have
100 55
been contracting for the last several month, indicating that the
upturn is losing momentum
95 50
90 45
… and lower support from inventory restocking …
85 40
• Restocking has come to an end: 49% of U.S. shippers noted
80 35 more shipping activity in Q2 due to inventory restocking. Only
75 30
35% of shippers expected more shipping activity in Q3 as
inventory restocking had peaked*
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
German ifo business climate index (lhs) U.S. PMI index (rhs) Global PMI index (rhs)
Source: ISM institute for supply management, Ifo Institute for Economic Research
• Among those shippers that have already begun restocking,
41% plan to stop rebuilding inventories in H2 2010, while 31%
indicated H1 2011*
160 Consumer Confidence Index
140
… and most importantly consumption
120
• Consumer confidence stagnating on a low level
100
• Moderate peak season (ocean freight) early in year
80
60
40
The exceptionally high growth rates seen in H1 2010 are not
20 being repeated in H2.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
U.S. Consumer Confidence Index
Source: U.S. Conference Board
*Source: Wolfe Trahan & Co. Shipper Survey, August 2010

5. European 3PL Summit Brussels
November 24, 2010 5
Emerging industry trends
Trends Reaction
Increased volatility of rates
Growth – look for profitable and sustainable
Increased pressure on logistics costs business opportunities
Increased unpredictability in market demand – Flexibility – be faster and smarter
a challenge for supply chain management
Customer focus – get closer, create value,
Increased outsourcing of logistics and more save costs
focus on entire supply chain
3PL Study highlights an overall increase in outsourcing of logistics services.
However shipper collaboration with 3PLs is not in line with 3PL expectation or opportunity
and the low demand for integrated logistics solutions offers opportunities.
Shippers and 3PLs must collaborate more to create more value.

6. European 3PL Summit Brussels
November 24, 2010 6
Flexibility
• Accept change as the new normal – prepare for the
unpredictable (continuous contingency planning)
• Enable organization to respond quickly to changes
in the market
• Streamline internal processes to ensure rapid responses
to customer requests
• Anticipate market trends and their impact on customer
needs

7. European 3PL Summit Brussels
November 24, 2010 7
Growth
• Enforce internal transparency to enable
profitable growth
• Strengthen and streamline sales force to support
targeted growth within strategic markets and with
strategic customers
• Increase collaboration with customers and partners on
strategic and operational levels
• Grow in mature markets by offering end-to-end-solutions
• Sell expertise and increase market share in emerging
markets (BRIC states)

8. European 3PL Summit Brussels
November 24, 2010 8
BRIC area remains growth engine
Real GDP growth forecasts IMF Regional development forecast
% yoy 2008 2009 2010 2011 • Global economy: Asia forging ahead, Europe
USA 0.4 -2.4 3.1 2.6 lagging behind
Japan -1.2 -5.2 1.9 2.0 • The 2010/2011 World Transport Report
Euro area 0.6 -4.1 1.0 1.5 estimates doubling of freight volume in BRIC
UK 0.5 -4.9 1.3 2.5 countries in the next 15 years
Canada 0.4 -2.6 3.1 3.2 • USA: No sweeping economic revival
Advanced • Eurozone: still not a self-sustaining upswing
0.5 -3.2 2.3 2.4
economies
• South East Asia: Coming out of recession at
China 9.6 8.7 10.0 9.9
full speed
India 7.3 5.7 8.8 8.4
Brazil 5.1 -0.2 5.5 4.1 • Latin America: Mixed recovery pattern
Russia 5.6 -7.9 4.0 3.3 • Central & Eastern Europe: Highly varied
Emerging & dev. growth trends
6.1 2.4 6.3 6.5
economies
World 3.0 -0.6 4.2 4.3
Source: IMF WEO April 2010

9. European 3PL Summit Brussels
November 24, 2010 9
Customer focus
• Get under your customers’ skin – become involved in
customer forecasting and logistics planning
• Provide and increase in-depth industry expertise
• Increase supply chain effectiveness,
create value, save costs
• Increase communication – help customers
understand the potential of supply chain
optimization
• Improve integrated, automated IT solutions

10. European 3PL Summit Brussels
November 24, 2010 10
The world has changed but …