Multimodal Transport

SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED

Multimodal Transport

J.B. Hunt Transport, Inc

Competing Modes Working Together to Deliver for Shippers(Presented By Clay Ramsey to Transportation Club of Houston - February 2012)

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Agenda

● Defining Multimodal

● What is Intermodal ?

● Intermodal Shippers/Carriers

● Domestic Transportation Landscape

● Primary Benefits of Intermodal Mode

● J. B. Hunt – A Leading Intermodal Provider

● Questions and Contact Information

Topics

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Defining Multimodal

Multimodal Transport

● aka: Combined Transport

● 2 or More Modes Utilized for 1 Shipment

● Example (Ocean, Rail, and Truck)

● 1 Provider , 1 BOL, 1 Contract

● Typically Involves Subcontracting

● Most Common in International Trade

● MTO – Multimodal Transport Operators

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What Is Intermodal?

Intermodal Transport

● aka: Truck/Rail, Piggy Back, TOFC, COFC

● A Form of Multimodal Transport

● Utilizes Over-the Road Truck and Rail

● Still has only 1 Provider , Contract, etc.

● Still Typically Involves Subcontracting

● Used in both Domestic and International

● Providers: IMC, 3PL, ISP, Broker, Trucker

● 20, 40, and 53 Foot Containers

● Single Box – Less Handling

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What is Intermodal?

Intermodal 1: Being or involving transportation by more than one form of carrier during a single journey

Shipments are loaded into containers and transported by truck from their origin to a nearby rail terminal where they are placed on a rail flat car for the line-haul portion of their journey. Finally, the containers are transported again by truck from the destination rail terminal to final destination.

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Multimodal Shippers/Carriers

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53’ Container Ownership in the U.S.

Company ContainersJ.B. Hunt 53923

EMP 33800UMAX 27500Pacer 16301

Schneider 13604Hub 12774Swift 7200CSX 5198

TOTAL 170300

4 Containers available for domestic intermodal use by for-hire truckload carriers and IMC’s

4 EMP, UMAX, and CSX containers are available for lease to all carriers and IMC’s

2011 end of year estimate

J.B. Hunt32%

EMP20%

UMAX16%

Pacer10%

Schneider8%

Hub8%

Swift4%

CSX3%

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Domestic Transportation Industry Landscape

Challenges Facing Truckload Carriers and Shippers:

● Volumes and LH Rates Are on the Rise

● Tightening Driver Market

● Regulation: EOBR, CARB, HOS, CSA

● Limited Access to Capital for Truckers

● Demand for Capacity Continues to Rise

● Aging Equipment

● Intermodal gains in Truck Market Share

● Continued increases in Diesel Cost

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J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D0.0

0.5

1.0

1.5

2.0

2.5

3.0

19% increase in freight

expenditures

Shipment Volumes and Rates Increasing

Source: Cass Freight Systems, Cass Freight Index TM

Inde

x to

199

0 ba

se

(Dec’11 YOY)

2008 2009 2010 2011

Expenditures

Shipments

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Cass Truckload Benchmark Nears ‘08 Levels

Source: Cass Information Systems

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Market Demand Index Reached a Four Year High

Source: Trans4cast.com

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$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

Fuel Continues to Rise

Source: U.S. Dept. of Energy (EIA)

$3.861/gal12/31/2011

RECESSION

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Intermodal Remains an Attractive Option

Source: IANA Intermodal Market Trends and Statistics

Mill

ions

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC0.85

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1.35

Yearly Intermodal Traffic Totals

2007 2008 2009 2010 2011

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Primary Benefits of Intermodal Mode

In 2011

● Generally lower line-haul rates

● Insulation from continuously rising fuel prices

● Competitive transits

● More regular and reliable drivers

● 50% reduction in carbon emissions

● Less fuel consumption (3-4 times more efficient than truck)

● Reduces costs to expand and/or repair highway infrastructure

● Fewer accidents and less congestion with fewer trucks on the highway

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J.B. Hunt – A Leading Intermodal Provider

In 2011

● Revenue - $4.5 billion

● 56% of Revenue from Intermodal

● Over 1.2 Million Intermodal Shipments

● 9,109 company-owned tractors

● 75,019 trailers and containers

● 40,890 Chassis

● 1,178 independent contractors

● 10,511 drivers

● 15,631 total employees

● Largest Customer of BNSF and NS Rail

● 85% of Dray Work on Company Assets

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J.B. Hunt – A Leading Intermodal Provider

This is now…

IntermodalTruckload

Logistics DedicatedTruckload

That was then…

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J.B. Hunt Intermodal Load Volumes by Year19

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

E

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

2011 Es-timate:

1,160,000

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CLEAN Transport™

A Proprietary JB Hunt tool that calculates carbon footprints and identifies opportunities for intermodal conversion

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Questions?

Contact Information:

● Clay Ramsey

● [email protected]

● Phone: 832-257-4296

● JB Hunt Corporate: 479-820-0000