Flexport 2026 Winter Technology Release Broadcast

All right, everybody. Welcome to the 2026 Flexport Technology Release Winter Edition here in New York. H I want to first say big thank you for coming and start here by just reminding folks, those of you who worked in this industry for a while know that where there's mystery, there's margin. And I learned this firsthand over 20 years ago. I was one of the first dealers along with my brother for Glee, which is the Chinese car company that went on to buy Volvo. And when we were shipping these motor scooters around the world, no, first of all, like nobody could tell us where they were, when is this container going to arrive, what paperwork do I need for customs, and most importantly, like the freight forers never knew what the bill was going to be at the end. And even today, we're in this world where trillions of dollars worth of trade is moving around the world with almost no visibility and no ability to know where's, you know, what is happening, where's my stuff. We and when there's delays, when things go wrong, you end up having to ship air freight because of, you know, some production delay or you miss the ship and you're late. The bills are getting hit with unexpected detention and demurrage charges and of course everybody knows uh for the last year just crazy amounts of complexity and costs resulting from tariffs. Uh so the problem statement is pretty clear. Now I was at a logistics technology conference a couple of weeks ago and I was really struck by the sheer number of AI companies entering the logistics space and a lot of them have this very compelling I think vision which is this autonomous supply chain where AI agents are going to make the decisions and you're going to just have this sort of self-optimizing self-healing network and hands off the wheel it's all just going to work and I and I'm struck by this looking at like just what an opportunity flex Flexport has because we share that vision. We think it's really compelling is our vision in many ways, but also how much that we have this advantage by our global network of operators who are actually here really passionate people committed to making global trade so easy that there will be more of a really living Flexport's mission and solving for problems managing exceptions when the AI doesn't work when things don't go to plan of how do you pick up the phone and apply some elbow grease and do whatever it takes ultimately because supply chains are too important just to hope that everything, you know, the AI gets everything right and it all goes smoothly. And so, a huge amount of what we're going to introduce today is a fleet of AI agents and other cutting edge technology that can solve problems. But I really want to stay grounded in reality and say, well, the thing that makes Flexport different is that all this technology is directly connected to the real world. that we've been building technology for over a decade to make global trade easy to solve logistics problems to reduce friction to simplify this very complex industry and that it all is provide where we provide this governance layer to ensure things go right and the exception handling that our team is there to solve problems and our team is obsessed with data don't get me wrong like we are absolutely obsessed with monitoring where how the cargo flows are, what is the transit time between any two given ports, what are all the services that have exists. And so the first product that I want to introduce this afternoon is Flexport Atlas. This is for the all that data that we've had that our teams use has lived inside of Flexport and our operators have had access to it. This is our first attempt to really bring that to the surface and allow you to see how the world's ocean network actually functions to bring transparency to what has really been a very mysterious place for decades maybe centuries of global trade. And what Atlas is, by the way, there are a lot of great tech companies that have products named Atlas. Unlike those companies, ours is actually an Atlas. And what we've done here is give you this picture of global logistics and starting with the ocean freight market where you can see zoom in on any port and see what's happening at this port. What are the terminals? What are the ships that are coming and going to this port? What is the current levels of congestion? So how long is it taking ships to birth? How long are containers dwelling before they exit? sort of this foundational model for you to understand global logistics. It's the same model that the people at Flexport use, that the algorithms use, and increasingly that AI agents would be able to use to reason about the world and understand how the world, you know, have a true worldview of global logistics. Um, you zoom in on a ship and you'll see probably more data than you ever needed to see about that ship, its port calls, where it's coming from and going to

live satellite tracking, of course, the carrier that it's affiliated with, who's operating it, what string is it on. So strings are these service lines and that service routes. And uh, I think that's where it gets really powerful. Take the example where you can search in this case Yantien to Long Beach, Shenzhen to LA, the most important corridor for a lot of our customers. And we'll at a glance show you here are all the services. You could think of these like bus routes. Like here's all the ways that you could get there that different ocean carriers operate on that lane. And to give you a really practical example, I was talking with a customer of ours that uses that has moved their manufacturing to Cambodia and they were trying to understand well what are the sailings how what are the routes that actually go between Cambodia and the United States and we're able to show them at a glance that in fact there are no direct sailings today between Cambodia and the United States you have to do a trans shipment and there are a lot of I think infinite different options for how you could do that trans shipment. So giving them at a glance like here are the different options of how this would be routed and their relative transit times because they have very different outcomes. So this is just the start here, but it's a really powerful new tool that we're introducing. It's live now at atlas. flexport. com. You can go use it, start looking up the ports that matter to you, the port payers and see get a window into how this world operates. Expect lots more. We're going to invest a lot in um both acquiring cleansing data, applying machine learning, so rolling out predictive transit times across all of these and then of course adding many modes of uh many more data points and modes. So for example, air freight, um trucking, rail, barge, lots more to come. Expect us to invest a lot in this. And ultimately, I think you're going to see this be the foundation that the world's uh AI can use to actually understand how to make good decisions. Now, okay, this is our view, our attempt to give you better understanding of the world's logistics network. That's only half the battle. The other half is you need to understand your own supply chain and how it interacts with that. Now, for the world's largest ocean shippers, you they all use what's called a routing guide. And this is a real one. anonymized it here, but this is a routing guide simply takes two different port pairs and says, "Okay, how does how's the cargo getting moved when I want to when I have a container going between these ports? Which carrier should ship it? And if it's not available on the first carrier, it rolls over to the second and on downward. " This is a very dumb way to do this. I mean, it's dumb as in simple. It's just static. Uh there's no business logic here really. Um, and there's so much opportunity here to make this much better. And by the way, worst of all is you just hope that the people actually booking the freight bother to open the spreadsheet and do what they were told. I mean, there's nothing in this that inherently makes that true. So, today we're introducing Flexport's digital routing guides. Again, this is for the world's largest ocean shippers, those who contract their ocean freight directly with ocean carriers. And it's a really, it's what you'd expect. It's a very simple way to manage and configure this so that we can take your business logic of how do you want containers to move. Do you want to go on the first ship available, the cheapest ship, the contract? You want to allocate freight in certain ratios, the one with the best on-time performance and allow you to not only configure that, but then have it translate in real time to our machine learning based planning algorithms that actually assign the containers to the ships. uh and make sure that it is what we put in the system is what will happen. That is the way that your freight will route. Uh expect lots more innovation from us in this area, but it's live now in the Flexport platform. If you're a booking management customer that uses Flexport to book those containers against your Ocean Freight contracts now, and don't worry, we're not going to make you fill out more forms. Like, we will configure this for you. It's not We want to get it right and align with you, but it's live in the platform. can start using it. Now, speaking of the platform, in the fall tech release, we re we introduced this command center. We call it a single pane of glass, allowing you to see all your shipments on the platform, regardless of if you shipped it with Flexport, with another forwarder or carrier direct. We give you the same tools for visibility, control, predictive transit times, the entire everything that Flexport's platform is known for. The most popular feature on the platform is search. Uh you being able to just type what you're looking for, whether it's the name of a product, a factory, uh destination, a purchase order number, a shipment tracking number, and just instantly have it show up. Uh and so we've made major investments in our search that we're introducing today to make it powered by AI. And what AI search does for you is you can same idea but now it's much more powerful in terms

of using natural language to search for example customs entries that are on hold or purchase orders that are delayed, shipments that are at risk of detention and demerge. Uh we will you'll be able to just use natural language and we automatically update those filters to show you just what you're looking for. So this is really powerful. It's live now uh for certain users and will be rolling out for everybody over the coming weeks as we continue to beta test it. But we I think you're going to love this. Now, an area that customers have told us they don't love about Flexport is the number of notifications that we send. Uh just like sort of way too much information and really hard to figure out what actually matters. We got this feedback loud and clear through so many conversations with users. I think in many ways it's the result of us trying to be almost too transparent showing you what's happening and then make but we made it too hard to find out what really matters for you. So with this update that we've done to our notification system we're reducing the number of notifications that we send to customers on to users on average by 80%. And we didn't do this by hiding information but by ju being really granular and specific about what data people are going to want to see. surfacing what actually matters for you. Doing things like don't send the same message to two people unless you know if you know who the person um it's supposed to go to, just send it to them, not to everybody on the account or rolling up multiple messages into one message that can sort of bundle these things together. It was not glamorous work, but we you think you're gonna uh find it to be very important and giving you we've given you very granular controls over this. If you're a new user, you get default automatically to what we think is the right configuration of notifications. We didn't want to just like go turn off everything. A lot of people have configured their accounts the way they want. But uh but we give you this control and your team will work with you to get this. I think you're going to hopefully address that ma most important piece of feedback that we get all the time. And it's part of our effort here. Like we think there's a huge opportunity in global logistics to improve communication. Notifications being part of that, but messages are a huge part of this. And for the last 200 years or so, English has been the language of global trade. A and today we're introducing live translation because there's billions of people around the world who don't speak English. And a lot of them come from look from countries that are really important manufacturing centers for our customers that you all are producing in these new countries. And many of them don't have the same level of English fluency as maybe you're used to. So, with Flexboard Translations, we've translated the app into uh seven new languages, including Mandarin, both simplified and traditional, Vietnamese, Thai, Korean, Italian, German, and Spanish. Collectively, those languages represent 86% I'm told, of global container traffic. Um, so we you will be able to communicate with your suppliers. And importantly here, we're doing live translation using AI. So you can actually just speak in your language, they will see it in their language. Uh very powerful for being able to just smooth communication and make it easier than ever to actually yeah get global trade done. Back to our mission. I think this is going to be really powerful for you. We hope you love it. Expect more languages to follow and we're taking requests of where do we see people needing that now with our uh live translation. That's a big part of the the progress we're making here to help you grow your business, especially exporters, helping you connect. Another big area of growth, just switching gears, has been our e-commerce business where we do fulfillment and delivery for customers. We doubled the volume in that business in the last 12 months, which is just a herculean feat really in the physical world to double growth uh across 5 million square feet. And we did that while maintaining quality metrics. So 98% on-time delivery, 99% on time shipping, getting the product out same day. Well, the platform that drove the most growth for our merchants last year was Tik Tok. Probably not surprising. And today we're introducing a native integration with Tik Tok for e-commerce merchants on Flexport that does a few things. First of all, we already ship a million orders a year for Tik Tok merchants uh for merchants through Tik Tok and we're now making it natively integrated so that Tik Tok is a first class citizen in the flexport seller portal. So you can just instantly connect here fulfilling [clears throat] inventory from a single pool, single pool of inventory regardless of whether it's sold on Amazon, Shopify, Walmart, your own website, anywhere else. It's

the same pool of inventory and it's a seamless integration so that end consumers actually get live tracking updates inside the Tik Tok app. Very easy to configure. You go to the Tik Tok app store and just turn it on. Really proud of to of our work here, especially Pacted is one of our great customers. Proud to be able to help them scale their business and delight their customers through this and many other services that we're offering. Okay. Now, I know what you're probably thinking here is like I have made it this far into my presentation and I haven't even mentioned tariffs really or customs which is uh pretty crazy given the Supreme Court ruling that we had on February 20th um that invalidated the AIPA tariffs. So, let's talk about customs. Last tech released in October, we introduced the Flexport Custom Suite, which is our set of technology products designed to get put you in the driver's seat to give you the best understanding of the impact of tariffs on your business. And the most popular of these, the one that's really uh getting a huge amount of usage is our tariff simulator. And Tariff Simulator is actually a great place to talk about the sort of the ethos of Flexport and what makes us different than other tech companies and certainly than other customs brokers or logistics providers. And that's because we do both of those things under one roof. So we have a worldbeating customs technology team, software engineers, product managers, but they don't know the ins and outs of regulations. Although actually a couple of them are actually learning this pretty fast. Um, but for the most part, we rely on our team of experts with dozens of years, decades of experience in customs compliance to interpret the rules, to read the new regulations, to figure out, okay, how does this actually work and then partner with the data and technology experts to translate that live? And so on this is a free tool. You can use it at tariffs. flexport. com. And right there on the homepage, you can see where it shows a change log. So you can see that for example the Supreme Court ruled on Friday that the AIPA tariffs were invalid and then Trump immediately followed with new section 122 tariffs. Those were live by Monday morning and if it had been on Thursday, they would have been live by Friday morning. We have that a firm commitment to always keep this up to date and accurate. And I we what I predict here is more and more change. New tariffs will come in different forms that we didn't expect. will be harder and harder to calculate. So, I think this tariff simulator is going to turn out to be an invaluable tool used by thousands. By the way, the number one user of tariff simulator is US Customs and Border Protection. Uh, fun fact. Um, now, okay, so with Friday's announcement, we have now introduced a new feature to the Flexport Custom Suite, which is the refund calculator. I was hoping I would get to roll this out. We did not build this in the last three days. has been working on this for a while, but we are introducing the flexport refund calculator, also a free tool available. You go to tariffs. flexport. com and click refunds at the top. And what we've done is make it very simple. It couldn't be simpler to calculate how much refund you can expect from the government. And I I use that language. Maybe I should be more cautious. My legal team would tell me, "Hey, we don't know for certain that there's going to be refunds and there's a lot of opinions about this. " I personally, based on my own interpretation, and I'm not a lawyer, I have pretty high certainty bordering on conviction that there will be refunds. We have we what we don't know, and we have to admit real uncertainty is the process for how that will happen and the timing. And of course, there's always things that can happen, but my interpretation is they're highly likely to be refunds. So, go ahead and start calculating. Don't get too excited. Don't cash the, you know, don't start spending the money. But I do believe there will be refunds on the IPA duties. It's not that simple to calculate. It's not as simple as you would expect to just figure out. You don't get refunds on everything you paid. It's certain duties and we have we'll help you calculate that. So that's what this tool is about. Your CFO is going to love it. Show them what might be coming. Uh and by the way, you should get with interest of 6%. Uh so great. Um Flexport intends to be the leader in this. So that if you go to that refunds page, we're actually starting to enroll people into a process that again there's some uncertainty here of exactly how the process is going to look and how we're going to price it and things, but we want to signal that, hey, we're here to help you. We expect to be the absolute leaders in helping companies to get these refunds if and when that should happen. And we have confidence to say that because over the last five years, we've achieved over $900 million worth of refunds and uh custom savings for our customers. It's

like probably the fact that I'm most proud of having started Flexport is we've put $900 million back in our customers pockets uh through the work that our customs team does. And one great example of this is our algorithm and process for duty drawbacks. So if you import something and then you later export it, you're owed a refund on the duty you paid on the way in. This is the simplest way to understand duty drawbacks. And we've built algorithms to do the matching of that import against the export as well as process for collecting, organizing, cleansing data to feed into the algorithm. We had a customer just since we launched this algorithm and at the last tech release, we got one company $10 million refund on duty drawbacks where our leading competitor in the space told them that 1 million was the most that they could expect. I am not promising you a 10 times return, but we're seeing yields above 20% very regularly. So, if you have a duty drawback program, definitely come talk to us about our tech and how that can work. Now the next piece that we're introducing today for the Flexport Customs suite is an AI auditor. You, if you may remember in October, we introduced the AI compliance audit, but it was for uh for Flexport Customs entries. So we of course do regular human-based auditing with our compliance experts. We do statistical sampling where we'll review around 5% of customs entries a second time with an expert. Well, what and what we've done in that process, we found that we had a one point error 1. 8% error rate, which is quite good actually in the industry. We're well within norms of what customs considers great. Our AI auditor that we introduced last fall has actually brought that error rate down to 0. 2%. And that's because we send 100% of entries through this AI audit in real time before we transmit the entry to CBP at 0. 2%. We believe that it's at least 10 times better than other customs brokers when it comes to compliance. And we have such confidence in that in part because with this tech release today, we are now making the AI auditor available to you. So you can actually audit your own customs brokers and you again go to tariffs. flexport. com and at the top of the page go click on tariff audit and what we do here is we'll actually take the ACE data. This is data that you get from your account with the government. And if you put it through our process, we at a glance with no human involvement in this process, in this free version of our audit, we will just show you the error rates that your brokers are making. And if there's a place where they've made a mistake that's cost you money, we will help you with a process to go get that money back. Like I said, we've gotten over $900 million of refunds for our customers. Very easy to use. And the first two uh customers that we put through it, the first one we found a 14% error rate as compared to our 0. 2%. And the second one we actually found an 85% error rate with their customs entries, which is crazy. So needless to say, both of those are new Flexport brokerage customers. We if you're not using Flexport for Customs, we hope this helps to convince you. But again, you can use this on your existing entries even if they're you're not a Flexport customer. Customs really cares about this. this is how you demonstrate reasonable care from a compliance standpoint that we've got this audit that you have now an audit process in place independent of your own broker. I believe that level of going from 1. 8% to 0. 2 or comparing 85% to 0. 2% 2% is one of the be the best demonstrations of AI real world applications in the world that you will find anywhere out there across not just in customs but in all of business and so up till now we've talked about visibility execution compliance duties tariffs getting you money back and on that theme of or sa driving hard cost savings I want to talk about supply chain optimization because this is another area that should be like really obvious where AI should just take over the world and make these decisions for you and but it's hard because the AI needs to be grounded in reality of like what's the real world data showing what are the transit times of cargo how is the cargo flowing uh in the network and then it needs to be intricately connected into your own supply chain into your network to feed the data through and this is where flexport's unique approach where we have the world's best foundational models for AI apply applied by great technologists but importantly governed by our team and managed with exceptions managed. I meet a lot of these AI companies that feels like their heads are in the clouds and viewing things from 40,000 ft and we're trying to bring it back to how do I make

this practical? How do I actually bring optimized supply chains from here at the ground level where decisions are getting made in your supply chain? And we do that with a very simple update to our app. Very powerful on the back end in terms of AI. But we're just showing you these shipments should be grouped together. And in doing so, there's the money you will save recommending a consolidation of two shipments going their same direction same day. You just hit accept and boom, you have a governance control in here. And what's going to happen as you do that is yes, you'll generate savings and we of course everyone wants to save money, but there are cases where one of those shipments is going to slow down. In fact, that's often what happens is you're holding back one shipment to consolidate it with another one. And so you need to have very practical judgment in saying, do I can I wait? What purchase orders are on that shipment? Can those be delayed or not? And so giving you that level of granular control well and then put the savings right up on your homepage wherever we can save you money. We hope that'll make people nicer to us. In fact, so far we've seen a 10% reduction in freight costs from our customers that are using our AI consolidation engine. Uh and I hope that we can do even more as we scale the program and get smarter and smarter with the algorithms. So let's zoom back out for a second to where we started to Flexport Atlas, which as I said, this isn't just a map. This is underlying data model underneath this thistology of Flexport's schema. How do we model the world of trade? And all of this I've introduced a lot of different things today that they might seem very disconnected. In fact, they're all part of one system that's built on this foundational model as an interconnected system that you can then use to connect to make decisions and to build what we think is the future, which is autonomous supply chains, making decisions, having access to the best data, routing cargo, consolidating cargo, connecting the world. And today the main user of Atlas and these related technologies here is going to be you, our users or operators, humans. Increasingly, it's algorithms that are taking that data in. And we're definitely building towards this world where AI agents are going to do more and more work for us on our behalf both at Flexport and your own agents. And they need to have access to this data so they can reason about it, so they can make decisions. And that's the future that we're unlocking. It's like what we see today is the world as it is, but we're building towards something that we think we can build that's much better. The a future that we want to see where global trade is much easier. So I salute you. I thank you for trusting us to build this technology with you. Almost all these ideas are things that we got partnering with our customers and that are all of them 100% of them are built to solve problems that you've told us about. And so I say thank you for your business and really appreciate the opportunity to showcase it for you today and more importantly over the coming weeks and months and many years together. Really bring this to life so we can start saving you that money, optimizing your supply chain, helping you run a better business so you can grow and get back to what matters which is making awesome products and connecting with customers. It's not the tedious work of getting cargo from point A to point B. So thank you very much and we'll talk to you soon. —