Multimodal Transport
Competing Modes Working Together to Deliver for Shippers
(Presented By Clay Ramsey to Transportation Club of Houston - February 2012)
J.B. Hunt Transport, Inc
SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED
Agenda
Topics
● 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
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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.
 Containers available for domestic intermodal use by for-hire truckload
carriers and IMC’s
 EMP, UMAX, and CSX containers are available for lease to all carriers and
IMC’s
Hub
Swift
Company Containers
J.B. Hunt
53923
EMP
33800
UMAX
27500
Pacer
16301
Schneider 13604
Hub
12774
Swift
7200
CSX
5198
TOTAL
170300
2011 end of year estimate
Schneider
8%
7%
4%
CSX
3%
Pacer
10%
J.B. Hunt
32%
UMAX
16%
EMP
20%
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Domestic Transportation Industry Landscape
Challenges Facing Truckload Carriers and Shippers:
● Demand for Capacity Continues to Rise
● Volumes and LH Rates Are on the Rise
● Aging Equipment
● Tightening Driver Market
● Intermodal gains in Truck Market Share
● Regulation: EOBR, CARB, HOS, CSA
● Continued increases in Diesel Cost
● Limited Access to Capital for Truckers
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Shipment Volumes and Rates Increasing
3.0
2.5
19%
increase in freight
expenditures
2.0
Index to 1990 base
(Dec’11 YOY)
Expenditures
1.5
Shipments
1.0
0.5
0.0
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 D
2008
2009
2010
2011
Source: Cass Freight Systems, Cass Freight Index TM
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Cass Truckload Benchmark Nears ‘08 Levels
Source: Cass Information Systems
10
Market Demand Index Reached a Four Year High
Source: Trans4cast.com
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$0.00
$4.50
$4.00
Jul-2011
Jan-2011
Jul-2010
Jan-2010
Jul-2009
Jan-2009
Jul-2008
$5.00
Jan-2008
Jul-2007
Jan-2007
Jul-2006
Jan-2006
Jul-2005
Jan-2005
Jul-2004
Jan-2004
Jul-2003
Jan-2003
Jul-2002
Jan-2002
Jul-2001
Jan-2001
Jul-2000
Jan-2000
Jul-1999
Jan-1999
Jul-1998
Jan-1998
Jul-1997
Jan-1997
Jul-1996
Jan-1996
Jul-1995
Jan-1995
Fuel Continues to Rise
RECESSION
$3.861/gal
12/31/2011
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
Source: U.S. Dept. of Energy (EIA)
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Intermodal Remains an Attractive Option
Yearly Intermodal Traffic Totals
1.35
1.30
1.25
1.20
Millions
1.15
1.10
1.05
1.00
0.95
0.90
0.85
JAN
FEB
MAR
APR
MAY
2007
JUN
2008
JUL
2009
AUG
2010
SEP
OCT
NOV
DEC
2011
Source: IANA Intermodal Market Trends and Statistics
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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
That was then…
This is now…
Logistics
Dedicated
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J.B. Hunt Intermodal Load Volumes by Year
1,200,000
2011
Estimate:
1,160,000
1,100,000
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
2011E
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
0
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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
● Clay_Ramsey@JBHunt.com
● Phone: 832-257-4296
● JB Hunt Corporate: 479-820-0000
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