Quick Facts About Vinpac Lines• Differentiated Canadian logistics provider offering a full in-house turn-key solution

• Ocean, Trans-loading & Trucking (Vintrans)

• Tier 1 partner with all major ocean carriers• 15 years strong in the freight forwarding

industry• Vinpac boasts a worldwide network to better

serve our client needs • True specialists in major commodities

• Wood pellets• Lumber & other wood products• Metal / Steel• Consumer goods• Vehicles

Quick Facts About Vinpac Lines

Pellet Producers that we have already worked with…

• Granules LG – Quebec• Groupe Savoie – New Brunswick• Energex – Quebec• Canadian Biofuel – Ontario• Direct Pellet – Ontario• KD Pellet – Ontario• Lacwood – Ontario• Okanagan Pellets – BC• Eagle Valley – BC• And many more on the East Coast USA

About Vintrans Transport• Hybrid transport provider – Asset based and

fully insured brokerage division.• Full truckload , LTL and intermodal offering• DryVan, flatbed & temperature controlled capability• Serving cross-Canada and USA• High traffic lanes in Ontario, Quebec & Maritimes• Strategically landed outgoing contracts for pellet back

hauls

About Vintrans Transport• Strategically landed outgoing contracts for pellet back

hauls

Why Are We All Here Today ?

Material Advantages of Container Shipping

Pellet Characteristics:Wood pellets have the following handling characteristics:• They are fragile and easily break up when handled.• The dust produced is very fine, combustible and explosive.• They are quite dry, but absorb water readily, swell and fall apart.

Container Advantages - Shipping and Unloading• Handled once – bagged upon production• No moisture – Multiple layers protecting the cargo• Pellet damage is insignificant to ZERO in container.

Advantages Container Shipping

Bagging in North America (retail bags) preserves the integrity and consistency of pellets received.

Big bags in containers offers the bulk option but without potential degradation and available in smaller amounts

In both cases the pellets will have the same characteristics as the technical specifications.

What markets can you reachSelling via container the supplier has the luxury to diversify

their client base overseas. You can sell to:• Large producers/distributors looking to increase volumes

(30K MT +)• End retailers looking for ready to sell bagged product• Small distributors that can buy 1000 – 30,000 MT• Brokers/Agents that may hold national contracts• Simultaneous multiple areas to diversify strategy versus

competitors and/or weather conditions.

How-to-guideContainer Shipping

1. Most producers sell Ex-Works (at door)2. Most buyers supply the bags to producer.3. Producers are paid before product

departure either by wire transfer or LC. 100%.

4. Once product leaves the plant, ownership transfers to buyer if logistics handled by Vinpac.

5. Vinpac handles ALL logistics until destination port & at times to destination door.

6. Most times the buyer handles payment for logistics however sometimes it’s the shipper.

Advantages of container shipping for sellers

FINANCIAL CONSIDERATIONS

Advantages of container shipping for sellers

Bagged advantage for PRODUCERSDescription Benefit

PAID IN FULL prior to pellet leaving your mill Cash Flow / Security

Sold Ex-Works (at your door) while Vinpac handles all logistics Convenience

Bagged pellets typically sell higher than bulk Financial

No degradation of pellets during transport Quality Control

Various shipping volumes, as required. As low as 26.1 MT. Cash Flow

No need to store pellets in silos. Sold as produced. Financial

Buyers willing to set multi year contracts in place Financial

• Pellets are ready for retail distribution• Immediate delivery to several overseas regions thru multiple

ports• No surprise fees – Controlled transport costs• Pellets available for small to large volume buyers• Controllable volumes/pace (weekly, monthly, etc)• Canadian bagged product creates sense of product purity

Advantages of container shipping for BUYERS

Advantages of container shipping for BUYERS

Advantages of container shipping for BUYERS

Advantages of container shipping for BUYERS

Advantages of container shipping for BUYERS

What happens when they get to the custo

Depending on the shipping line, the consignee gets between 10-18 days* to retrieve the container, unload and return the empty back at the port without ANY additional fees.

*freetime negotiated by Vinpac with carrier – subject to changes

Bagged advantage for BUYERSDescription Benefit

Cost of bags and filling bags in CAD/USD rather than Euro Financial

Immediate distribution of retail ready pellets to end clients Cash Flow

Controlled logistical cost on an annual basis Financial

No degradation of pellets during transport Quality

Various shipping volumes, as required. As low as 26.1 MT. Cash Flow

Quick transit times – as low as 11 days! Cash Flow

Pellets bagged in Canada create sense of product purity Marketing

Advantages of container shipping

Bag sizes

15kg* 87 bags per skid* 20 skids per container*1740 bags total/container*26.1 Metric Tons

18kg (40lb North American bags)* 72 bags per skid* 20 skids per container*1440 bags total/container*25.9 Metric Tons

Big Bags*between 750kg and 1.3 MT per bag

* Total metric tons per container is subject to various weight limitations

Live Loading of bagged pellets

Trans loading containers

Calculating Total Cost1. Inland costs may include one or more of the following:

• Live Container Load• Trucking • Rail• Cross docking / trans-loading• Warehousing• Container positioning to the port

2. Ocean freight can be calculated two ways:• CIF – buyer is responsible for charges in foreign port• DAT - overseas charges are prepaid ( DTHC Included )

3. Custom clearance:• Documents are either forwarded to your preferred agent or

Vinpac may introduce you to a local agency which we work with.

4. Transportation in Europe: (*polled several current clients)The average transportation cost calculated is approximately 15-18 €/ton for a 0-200 km distance and 18-22 € for distances over 200

What is the role of the freight forwarderA freight forwarder is an agent who acts on behalf of

importers, exporters or other companies or persons to organise the safe, efficient and cost-effective transportation of goods.Freight forwarders arrange the best means of transport, taking into account the type of goods and the customers' delivery requirements. They use the services of shipping lines, airlines and road and rail freight operators. In some cases, the freight forwarding company itself provides the service.

Additional services offered by Vinpac as a value-add:

• Translator – Assisting the international community with translation – we speak over 7 languages.

• One stop shop – domestic land freight & international movement.

Why choose Vinpac for logistics1. Is the “FF” strong enough to handle your

business?

2. Is the “FF” specialized in the product you want to ship to understand my needs?

3. Does the “FF” have a good network of global agents at destination ports and networks with industry influencers?

4. Does your “FF” offer additional services that set them apart?

5. What is the communication level with my “FF”.

6. One stop shop – door to door offerings if required. Mostly in-house.