To say at least 90% of our customer base also has shipments domestically going to Alaska, Hawaii, and Pacific time without a deal. And I think that's what we. Why it's, it's a really good solution that we brought to the table.

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Well, that's why it's working very, very well for us at Asendia and our clients.

Are there compliance things with this that maybe we need to talk about?

Domestic.

Yeah, it's domestic compliance.

And in today's world that's going on with the de minimis and with the tariffs and everything, this is kind of, it's neutral to all that. It's not affected by any of that. So I think the postal channel is not being affected like it is internationally because right now with international inbound coming into the US PS through the postal channels, that's basically been completely cut off. That does not affect the non continental at all.

Yeah, no, it's standard TSA regulations that we would follow in order to screen things and Asendia screens them in our facilities and moves them domestically. And we have just as much capability to move those materials on domestic flights as we do on international.

So.

Yeah, so customers that may be interested in this, they don't necessarily need to have, let's say their catalog, you know, harmonized codes and things like that are not necessarily a. They're not at all, they're not a requirement.

It's a considered all three are domestic moves.

Yes, perfect.

And the interesting thing one of FedEx, if you ship to Puerto Rico, you need a customs declaration.

Correct.

It's considered a international shipment.

It's going over international orders.

Another big hot nugget right there for all you watchers. FedEx Puerto Rico considered an international to.

Go to Puerto Rico because the planes go over international borders. That's the reason why it falls into that category. So from our perspective, the key for us when we were rolling this program out and wanting to really build it was to have a really good partner, which is what we have. And the transits have shown it. And one of the things that's really we get from our partner is that we get weekly, almost weekly transit reports for every one of those destinations, mainland and also the outer islands. So we get really good transit reports that our Sales team could share with their, you know, for their prospects. And it really, really helps. I mean it's all about the transits.

Jaz, what, what, what kind of transit times to it? Can you. I don't know if you asked me.

Regionally or what but so typically once, once we get the freight, Cincinnati or la, that's what we sort it. Okay. Out of the majority now we're hitting two to four day transit, two to.

Four day to the door or two to four day to the country or to the door to the state.

Fly every day. It gets there same day or overnight. So these flights are going every day. So the transit times are phenomenal.

Is it a.

Is it an access to a domestic.

Carrier that you use or is it.

So we have our own air cargo division.

Okay.

And they've had the relationship with the airlines, whether it's private or commercial over the years. And because we're going to these areas, we have freight every single day. Love it. So we were able to leverage that to a good partnership with the airlines.

And good rates and Sorry, would they do all the screening for you? You guys screen yourselves or.

Yeah, it goes, I mean everything because all the customers with TSA certified.

Sure.

So everything that goes through, it's good to go.

That's the airline screens it for you.

Swelling commercial air, right? Yeah, yeah. So International Bridge gets it as deep into the network in Puerto Rico and even Alaska and Hawaii as far as they possibly can, which is what helps the transits.

So for one of our clients and for everybody watching, listening. So we have five processing facilities here in the United States. We've got jfk, Philadelphia, Miami, Chicago and Los Angeles. So would it be east of the Mississippi is going to. Would be processed out of Cincinnati and west would be going to la?

Yes, I would say yes. Only reason we're hesitating is that we don't have Miami up and running yet because we, we have Philadelphia, New York. All that is processed and goes directly to. Where are we sending to New York. Is it going to. I believe it's going to Cincinnati. Same with Chicago. Going down to Cincinnati, la. We bring it right to their facility. It's like a handle right to their facility. And so that. That's pretty much how it works.

Yeah, that's one, one area that, that because we have a relationship with airlines, if we have some good density in a another region where we're not sorting out, we can stand it up pretty quickly because we know what the minimums we need to fly out. So you know, if a 70 year IV has prospects. We can keep the freight in that region.

Okay. And you know, I know that I want to be mindful of your time too and thank you for being so generous. So maybe wrap it up in a few minutes here. But I'm thinking in those markets are there certain product categories that are kind of hot, hot items or you know.

I think any type of E Comm. That's for the most part £10 and under. Right, so £10 and under.

Yeah.

Okay.

Obviously your apparel, no shoes, accessories, even supplements, you know, all the kind of hot topics that, that you know, people are ordering but you know, on the smaller side.

And because it's going to a US territory or state, then there's no restrictions like there would be going cross border.

Exactly.

Beautiful. Love it.

And I would say from our perspective, at least 90% of our customer base because we're an international consolidator. Yes, I would say at least 90% of our customer base also has shipments domestically going to Alaska, Hawaii, and Puerto Rico. Without a doubt. And I think that's why it's a really good solution that we brought to the table. And like I said, it's working out really well and I think it's just going to grow.

Yeah.

And I think it's just because of what it takes logistically to get into these countries is what makes companies like Asendia and an International Bridge kind of special in that market. Because we have that experience from moving things across borders, moving them across the world where the domestic carriers don't really.

Have a lot of that experience.

So it really is an opportunity for companies like us to shine and kind of say, look, look at how quickly we can get this. It's a large movement all across water and that takes that specific experience that companies like us have to get done efficiently big time.

So if we're an e-commerce shipper, 3PL even, and we're doing volume, let's say using could be many carriers going to Puerto Rico, Alaska, Hawaii. This is a solution that'll help transition some of the infrequent or variable transit times. More consistency in pricing, transit times and delivery experience for those recipients located in those areas.

Absolutely.

And I personally and I think that the, you know, the buyers now that are in Puerto Rico, Alaska, and Hawaii, instead of ordering now from an international website because of everything that's going on with the tariffs, I think they're going to be looking more to buying stuff from a US to avoid all that.

That's true.

And that's going to be driving this volume for last year, Puerto Rico, big time.

Chaz, is there anything else you might want to share before we cap it off here?

Yeah, I think just one more great example of this service. We just turned on a very large national retailer who stopped doing Alaska, Hawaii, Puerto Rico years ago because they were using one of the big two and it just became too expensive. It wasn't cost effective. They turned those channels off. When we went to them, they said, wow, with this transit time and with these rates, we can add those three areas back into our online ordering. And they just added Alaska, Hawaii, Puerto Rico. And this was a, you know, multibillion dollar retailer.

What do they estimate that's going to bring in revenue wise in a 12 month calendar year?

You know, they're kind of wait and see approach, but based on what they were doing prior, they think it's going to be pretty significant. Love it.

And anything's bigger than zero.

Yeah. And at the end of the day, they, most of our shippers, if we look at their data, 1 to 3% of their volume typically goes to these areas. So even if they just added 1%, you know, that's sales that they didn't have the last five years.

Yeah. Love it. Sure.

Yeah.

Profitable too.

Yeah.

All right, very good. Hey Chess, thank you so much for joining.

Thank you.

Pleasure having you, Tom.

Thank you. Thanks for having us, Tom.

Thanks as always. Great to see you.

Very good.

All right, guys, that's it for this episode of Outside the Box with the Sendia USA podcast. Thanks so much for listening and watching.

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