GOVERNING MEMBERSHIP MEETING Thursday, October 10, 2013 9:00 AM – 12:00 PM

1. GOVERNING MEMBERSHIP MEETING Thursday, October 10, 2013 9:00 AM – 12:00 PM

2. JEFFREY COLEMAN Chairman, IAM Executive Committee President, Coleman World Group

3. Governing Membership Meeting | 51st Annual Meeting | Vancouver, BC, Canada Meeting Agenda • Call to Order • Roll Call of the Governing Membership • Review and Approval of Minutes • Chairman’s Report • Reports of Standing Committees • Governing Member Elections • Government & Military Relations • IAM Programs Update • President’s Report • Proposed IAM By-Laws Revisions/Amendments • General Counsel Emeritus’ Report • Unfinished or Old Business • New Business & Discussion Topics • Announcement of Election Results • Closing

4. ROLL CALL DISTRIBUTION OF ELECTION BALLOTS

5. REVIEW AND APPROVAL OF MINUTES

6. CHAIRMAN’S REPORT Presented by: Jeffery Coleman

7. REPORTS OF STANDING COMMITTEES

8. ACCESSORIAL SERVICES Presented by: Tim Helenthal

9. CARRIER RELATIONS Presented by: Mike Richardson

10. CONGRESSIONAL / GOVERNMENT AFFAIRS Presented by: Peg Wilken

11. CLAIMS Presented by: Rick Curry

12. TECHNOLOGY AND COMMUNICATIONS Presented by: Brandon Day

13. COMMERCIAL AFFAIRS Presented by: Doug Finke

14. CORE MEMBERS REPRESENTATIVE Presented by: Jackie Agner

15. GOVERNING MEMBER ELECTIONS

16. Governing Membership Meeting | 51st Annual Meeting | Vancouver, BC, Canada Slate of Candidates • Chair: • Jeffery Coleman • Coleman World Group • Vice Chair: • Margaret “Peg” Wilken • Stevens Forwarders Inc. • Member At Large: • Richard W. Curry • Gateways International Inc. • Brandon Day • Daycos • Tim Helenthal • National Van Lines, Inc • Michael Richardson • Senate Forwarding, Inc

17. GOVERNMENT AND MILITARY RELATIONS

18. CHARLES WHITE Director, Government & Military Relations International Association of Movers

19. Discussion Topics • DOD Budget Issues/Government Shutdown • TSP Qualification Rules • What did SDDC do next? • Open Season - Implementation Timeline • Requalification/“Right-Sizing” • DPS Issues • 2013 Peak Season • Regionalization • Agent Issues: • DP3 – Phase III, NTS Electronic Billing & Payment, New Agent Advisory Committee

20. DOD Budget Issues • DOD - $500 Billion in cuts over the next 10 years, doubled when Sequestration hit • PCS moves exempt from sequestration for uniformed personnel...but not civilians • Civilian Furloughs – July 8 – Mid Aug. Original estimate 22 days, then 11 eventually only 6. • DOD - cost cutting in a number of ways: • Troop/personnel reductions of 100,000+ • Longer dwells at a station • Another round of BRAC? “Joint Basing” • Pivot to the Pacific • - Guam, Korea, Australia, Philippines and Hawaii

21. DOD Budget Issues, cont. • Currently DOD averages between 500,000 – 550,000 moves per year…(approx 170,000 May 15 – Aug 31) • Includes Domestic HHG, International HHG, UAB (Air), NTS (long term storage), DPM, Local Moves • May see a short term rise in shipment volumes over next two years, but a significant dropis imminent • “Leaner” & more Mobile force will eventually equate to a smaller number of HHG moves • FED GOVERNMENT SHUTDOWN • SDDC remains open….for now • JPPSOs/PPSOs – civilian personnel furloughed …invoice approvals, preapprovals problematic • Civilian moves will may be affected

22. Qualifications Rules – Pam 55-4 • First PAM 55-4 Draft released in early December, 2012 • Comment Period closed January 18, 2013 • Changes influenced by IAM / AMSA / Industry: • Audited vs. Reviewed Financials • New entrants – Experience… 5 years vs. 3 years • Key Personnel – “employee responsible for rates” • Quick Ratio 1.2:1 changed from 1:1 • Cargo Liability Aggregate - $150,000 to $500,000 • Performance Bonds increased 500% • International $100,000 to $500,000....$150,000 • Domestic $50,000 to $250,000

23. Qualifications Rules – Pam 55-4, cont. • “Affiliations” – new term for CFAC...but much more encompassing • Old CFAC rules said…“may but do not always result in CFAC.” New rules no such caveat • New rule…. • Family relationships • Owning another company • Owning stock in another company • Making loans to another company • Managing another company • Any of these relationships CANNOT file rates in the same channel and code of service

24. What did SDDC do next? • “New”... set of draft rules released on March 29, 2013 and a few more edits on April 12 • What’s New • “Outsourcing TSP Responsibilities,” i.e., Move Management – “Outsourcing of all TSP operations is not allowed in DP3.” • CFAC….It’s back! • Require “Proof” of experience for approval in a Market. • What was this all about?Open Season & EventualReduction of the Number of TSPs

25. OPEN SEASON • Officially began July 19 and closed August 2 for NEW applicants – must submit pre-screening questionnaire and other required documentation (Pam 55-4) • Current TSPs have until October 31 to apply for expansion of Scope. • New applicants must pass the initial paperwork review and then go through a face to face interview at SDDC. Those interviews ended September 6. • Approx 50 new approved TSPs – mostly Domestic • If an applicant was: Van line agent, DOD hauler, SIT or NTS service provider, Ever “touched” a DOD shipment in any way….. • NO INTERVIEW!!!!!! NO APPROVAL!!!!!!

26. Requalification/“Right-Sizing” • SDDC plans are to ….. Take a two-phased approach • Phase I – Open Season for 2014 • Phase II – Re-qualify ALL TSP for 2015/16 • HOW …… “RIGHT-SIZING” • What the heck is “RIGHT-SIZING”? International? • Reduce the number of “turns at the wheel”/SCACs based on a “groups” volume of shipments moved ….over what time period? • Does hauling count or only booked shipments? • What about “managed” Carriers? • They have tried….Domestic CFAC, Affiliations & Scoping…will this work? To be discussed Oct 29 - PPF

27. DPS Issues • DPS Release 1.6 on Friday August 30 – since that release we have seen nothing but problems • Invoicing issues – rating, transmission & PPSOs • Agent User Role disappears • New Country Codes • DPS instability/not loading completely • What was SUPPOSED to be in the Release? • Domestic Peak and Non-Peak Rate Filing……rate baseline changes in 2014. No Peak Season 10% bump • OTO moves to DPS – Why? Many moves to State • New DPS Contract award was supposed to occur October 1….now on hold through the Shutdown ………….what does a new contract mean?

28. 2013 Peak Season • 2013 - Least number of issues since DP3 implemented. • Why? • TSPs and Agents understand how to work the system. • Better Blackout granularity for domestic (not so for International) and Shipment Refusals • Possible - Refusals may be year round in 2014! • 10% less traffic than in 2012 but about the same as 2011. • DPS stability for most of the Peak – added no new functionality….until August 30 (new contract looming) • Code 2 flat – only 2-3% of Domestic Volume • Short Fuse criteria change….good for who?

29. Regionalization • OSD initiative originally to be completed by the end of 2016 • But Air Force in “STRATEGIC PAUSE” - Now FULLY completed end of 2018? • 7 CONUS JPPSOs – • JPPSO-MA (VA), • JPPSO-NE (MA) • JPPSO-SC (TX) • JPPSO-NW (WA) • JPPSO-NC (CO) • JPPSO-SE (FL) • JPPSO-SW (CA) • OCONUS – Japan (Yokosuka), Korea (Yongsan), Europe (WKAS), JPPSO-HI and a few other smaller more isolated booking offices. • Navy mostly finished with their part • Army….long way to go….only Presidio in 2014.

30. Agent Issues • DP3 Phase III • Business Rules posted – DPM rules still in flux • Programming for DPS begins with new contract • Don’t expect implementation for 2-3 years • NTS electronic Billing & Payment • Fully implemented and working fairly well – Oct payments delayed due to shutdown • Still working the backlog of old paper invoices • DPM electronic payment process may be introduced in 2014 • Agent Advisory Committee (AAC) • Started in late spring 2013 • Started to better understand and promote agent issues • 10 committee members – falls under the auspices of the Government & Congressional Affairs Committee • Starting with US DOD agent issue and will eventually grow to include OCONUS DOD and commercial agent issues.

31. Charles “Chuck” WhiteDirector, Government & Military RelationsInternational Association of Movers (IAM) • Alexandria, VA • Charles.White@IAMovers.org • Follow Chuck on Twitter: • Tweet @IAMmilitaryguy • Terry.Head@IAMovers.org • 703-317-9950 • www.IAMovers.org

32. IAM PROGRAMS UPDATE

33. BRIAN LIMPEROPULOS Programs Manager International Association of Movers

34. IAM Governing Members Meeting IAM Programs How IAM serves its Governing Membership: • Receivable Protection Program (RPP) • Invoice Dispute Resolution Process • IAM Code of Ethics • Global Accreditation of the Industry-Led Inventory Standard • IAM Shipper Guides Customs and Government Updates • U.S. Customs Intensive Exams • Distribution of your client’s Personally Identifying Information • Federal Maritime Commission (FMC) • Federal Motor Carrier Safety Administration (FMCSA)

35. IAM Governing Members’ Meeting IAM Receivable Protection Program (RPP) How does the RPP work? • IAM insures the commercial invoices of all IAM members. • If an IAM member goes out of business, a claim can be submitted for compensation. • If all conditions are met, the claimant will receive reimbursement. • At current participation levels, IAM can pay up to $4,000 USD per claim. • If more members sign up, we can increase the amount of money that we pay out per claim. Have You Heard of the Invoice Dispute Resolution Process?

36. IAM Governing Members’ Meeting Invoice Dispute Resolution Process Use IAM to Recover Money! • IAM will intervene on outstanding invoice(s) whether they are Commercial or Military. • This includes US Department of Defense work. • Members who participate in the RPP can request IAM intervention on any outstanding invoices provided they are at least 90 days old. • If a company does not pay, they are placed on the IAM Alleged Debtor List. • Alleged Debtor List is only available to RPP Participating Companies and is distributed monthly. antoinettec@jlbshipping.com

37. IAM Governing Members’ Meeting IAM Receivable Protection Program (RPP) Future Plans • 152 Members Currently Enrolled – Unsustainable at that level • Inclusion of RPP as an IAM Membership Benefit • Bring all IAM Members into the Program • More Members = Better and More Expansive Benefits! • Potential inclusion of invoices stemming from U.S. Department of Defense (DOD) Business? • More robust Invoice Dispute Resolution Process • Alleged Debtor List will become more valuable with more Members. • Bigger Claims Payouts with more Members!

38. IAM Governing Members’ Meeting IAM Code of Ethics Ethics Council Established on January 1, 2012 • Ethics Council composed of IAM members from diverse regions and industry sectors to provide balance. • Council adjudicated its first complaint this year. • Important precedent set by Council on future complaints. • Complaint will be used to educate members on ethical behavior. • Provides IAM Members with an avenue for recourse if another member had not acted ethically antoinettec@jlbshipping.com

39. IAM Governing Members’ Meeting Industry-led Inventory Standards Exactly What is in the Standards? • First part codifies all data elements of a household goods shipment • Second part provides the following: • A common format by which information is collected and transmitted between two users. • An electronic link between two different digital systems What is the Goal? • ISO Accreditation as a Global Standard • Establishment of ISO Working Group • Global Standard could be attained by end of 2014 • Widespread Adoption of Standard by Industry • Industry Response to Future Imposition on Household Goods’ Shippers by Government and Customs Authorities

40. IAM Governing Members’ Meeting IAM Shipper Guides Shipper Guides provide country-specific customs information for more than 185 countries and territories around the world: • Documents needed for duty-free import • Specific policies for the import and export of HHGs All of these Guides have been Updated in the last year! Big Resource for IAM Members and Consumers

41. IAM Governing Members’ Meeting Customs and Security Issues Distribution of Personally Identifying Information (PII) • Short-term solution: Standardized Web Form on IAM website. • Long-term solution: Blanket protection against this information being distributed to Vessel Manifest Information Companies. Intensive Exams at US Ports • IAM Ongoing Data Collection to Gauge Member Experience • Results indicate particular issues at the Port of Long Beach. • While intensive exams still remain high, all other ports are in line with shipping volumes. Ongoing Efforts to Address These Issues With CBP

42. IAM Governing Members’ Meeting Regulatory Issues Federal Maritime Commission (FMC) • OTI Registration – Recommendation from Fact Finding Federal Motor Carrier Safety Administration • MAP-21 Implementation • Protect Your Move Campaign HHG Working Group • Industry Associations • Federal Agencies • State Agencies and Law Enforcement Moving Fraud Summit • How to best combat rogue operators?

43. IAM Governing Members’ Meeting Take Advantage of This Information Through the RPP, IAM gives you recourse to recover payments owed to you. A greater sense of security when trading with other IAM members because of the RPP, the Invoice Dispute Resolution Process, and the Code of Ethics. The development of the Industry-Led Inventory Standards provides the industry with a response to potential adverse customs policies. The Shipper Guides provide easily- accessed comprehensive Customs Information. We are constantly working on your behalf to protect your businesses through our government outreach and relations.

44. PRESIDENTS REPORT

45. TERRY R. HEAD President International Association of Movers

46. PROPOSED IAM BY-LAW AMENDMENTS AND/OR REVISIONS

47. Core Membership Meeting | 51st Annual Meeting | Vancouver, BC, Canada Proposed IAM By-Law Amendments and/or Revisions • Proposed for the consideration and approval of the Governing Members: • ITEM ONE • Subject: Evidence Considered for Membership Rejection and Expulsion • Amendment Proposer: IAM Executive Committee • Objective of Proposal: In recognition of the Association’s increased focus on upholding ethics and values for the membership, it is proposed to add additional language to the IAM By-Laws that will provide the IAM Executive Committee with greater authority to reject a membership application if the applicant has not conducted business previously in an ethical manner or expel a member if a member has breached the IAM Code of Ethics.

48. Core Membership Meeting | 51st Annual Meeting | Vancouver, BC, Canada Proposed IAM By-Law Amendments and/or Revisions • Article IV, Section I (Fourth Paragraph) will be amended as follows: • (The underlined/italicized portions constitute the revisions): • “Notice of every application for Membership shall be given to each Governing, Core, and Supplier Member, who shall have thirty (30) days from date of such notice to submit evidence that the applicant is not creditworthy or has not conducted business previously in an ethical manner.” • Article IV, Section 4 (First Paragraph) • “For good cause the Executive Committee may suspend or expel any member of the Association, or take other appropriate action.  Good cause includes, but is not limited to, failure to pay dues or other obligations owed to the Association, after proper notice as defined in Article V, Section 2; failure to maintain qualifications for membership as set forth in Section 1 of this Article; failure to comply with the terms and conditions of Membership; and failure to comply with any standards of business conduct which may be adopted by the Association, including the IAM Code of Ethics.”

49. GENERAL COUNSEL EMERITUS’ REPORT

50. JEFFREY COLEMAN Chairman, IAM Executive Committee President, Coleman World Group