What’s your next move?™ Intermodal - What You Need to Know Transportation & Logistics Council Annual Conference San Diego, CA - April 22, 2013 SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED Supply Chain Solutions MANUFACTURING DISTRIBUTION POINT OF PURCHASE CONSUMPTION What’s your next move?™ | 2 Diversified and Complementary 2012 Revenue Mix 10% 9% JBI DCS 21% 60% ICS JBT What’s your next move?™ | 3 Annual J.B. Hunt Intermodal Volumes 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 CONFIDENTIAL 2012 Est 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 0 What’s your next move?™ | 4 Intermodal Network Is In Place CONFIDENTIAL What’s your next move?™ | 5 Intermodal Benefits Are Driving Change Shippers, Carriers, Environment ● Economical ● Expanding capacity ● Greener shipping ● Less congestion ● Better jobs CONFIDENTIAL What’s your next move?™ | 6 What Freight Moves Intermodal Today? Types of Intermodal Shipments ● Import shipments ● Inbound to DC and Outbound to Store ● Consolidation ● Temp-Controlled ● Flatbed CONFIDENTIAL What’s your next move?™ | 7 So Why Hasn’t More Freight Been Converted? Some Shippers Say… ● “I had a bad experience with Intermodal 15 years ago.” ● “Shipping requirements won’t allow Intermodal.” ● “Intermodal transit is slow and variable.” ● “Won’t work for my customers.” CONFIDENTIAL What’s your next move?™ | 8 Intermodal…The Right Way Elements of Quality Intermodal Service ● Experience & Partnerships ● Network Capacity & Scope ● Asset Ownership – Containers, Chassis, Tractors ● Company Drivers ● Service Team/Execution/Monitoring ● Technology/Reporting ● Consistency & Reliability CONFIDENTIAL What’s your next move?™ | 9 Your Options… FAST | Expedited Service VALUE | Standard Service Fastest intermodal service in the industry Solution for price sensitive shippers Averages 800 miles per day Averages 600 miles per day With two service levels to choose from, JBHT & BNSF offers shippers the best transportation value. What’s your next move?™10 | 10 Expedited Service Pacific Northwest Chicago Northern California Denver Northeast Kansas City Southern California Memphis Door to Door Region Transit Days 4.5 SCAL-ATL Region Atlanta DFW Southeast SCAL-CHI Door to Door Transit Days 4.9 CHI-SCAL 3.8 ATL-SCAL 5.6 NCAL-CHI 4.6 SCAL-KC 3.7 CHI-NCAL 4.4 KC-SCAL 3.7 PNW-CHI 4.4 DEN-CHI 3.0 CHI-PNW 3.4 CHI-DEN 2.0 DFW-CHI 2.6 SCAL-ATL-SE 7.9 CHI-DFW 2.5 SCAL-CHI-NE 8.5 SCAL-MEM 5.0 SCAL-CHI-SE 9.0 MEM-SCAL 4.7 NCAL-CHI-NE 8.6 SCAL-DFW 3.6 NCAL-CHI-SE DFW-SCAL 3.9 SCAL-MEM-NE 10.7 SCAL-MEM-SE 11.0 9.1 What’s your next move?™ | 11 Standard Service Pacific Northwest Chicago Midwest Northern California Denver Northeast Kansas City Region Southern California SCAL-CHI Memphis Atlanta DFW Southeast Door to Door Region Transit Days 4.8 DEN-CHI Door to Door Transit Days 4 CHI-SCAL 4.7 CHI-DEN NCAL-CHI 5.5 ATL-SE 4 3 CHI-NCAL 5.4 SE-ATL 3.8 PNW-CHI 4.7 NE-CHI 2 CHI-PNW 4.6 CHI-NE 4 DFW-CHI 3.5 ATL-CHI 2.8 CHI-DFW 2.8 CHI-ATL 2.7 SCAL-MEM 5.7 SE-CHI 4.9 MEM-SCAL 4.9 CHI-SE 4.5 SCAL-ATL 5.7 MW-CHI 2.6 ATL-SCAL 5.8 CHI-MW 1.5 SCAL-DFW 4.6 MW-SE 4 DFW-SCAL 4.9 SE-MW 4.5 SCAL-KC 4.5 MW-NE 4.2 KC-SCAL 4 NE-MW 4.6 What’s your next move?™ | 12 Sources of US Greenhouse Gas Emissions 2010 US Greenhouse Gas Emissions By Sector 26.9% Electricity Transportation Industry Agriculture Commercial Residential U.S. Territories Transportation is responsible for 26.9% of U.S. greenhouse gas emissions 21.88% of the total Transportation emissions (5.9% of the total) are caused by Inventory of US Greenhouse medium- and heavy-duty vehicles Source: Gas Emissions and Sinks, 1990-2010. What’s your next move?™ | 13 How? J.B. Hunt’s Transportation Carbon Diet 1. Know your network footprint Then, attack it by: 2. Eliminating miles - Network re-alignment - Route optimization 3. Increasing payload - Maximize cube & weight Reduced Costs Means Reduced Emissions! 4. Converting to energy-efficient, cost-effective modes - Rail is better than truck; truck is better than air 5. Using efficient carriers - FleetSmart members & SmartWaySM partners What’s your next move?™ | 14 CLEAN Transport™ Proprietary JB Hunt tool calculates customer’s carbon footprint & identifies intermodal conversion opportunities What’s your next move?™ | 15 Intermodal as “Carbon-Lite Transportation” Carbon Emissions - 1,800 Mile Shipment 3.0 2.5 (Tonnes) 50% less carbon; 1.5 fewer tonnes 2.0 1.5 1.0 0.5 0.0 Over-the-Road Truckload Reduce Idle Reduce Empty Miles Convert to Intermodal Estimated carbon emissions for an 1,800 mile truckload shipment based on Raven Ridge Resources, Inc. methodology for calculating carbon emissions for truckload shipments via highway and intermodal service. See: http://www.ghgworks.com/pdf/JBHTIntermodalVerificationReport.pdf What’s your next move?™ | 16 Freeze Protect Service J.B. Hunt offers freeze protection service for freight that may be susceptible to lowtemperature swings. Our single-source solutions utilize both temperaturecontrolled intermodal and van service that is customizable according to your needs. Pricing includes service monitoring on every load. Temperature- Controlled Solutions Blanket Protection can help protect Your products from damage from freezing. Over-the-Road and Intermodal Temperature-Controlled Options Over-the-road freeze protect services Are provided through our ICS (Integrated Capacity Solutions) division. Access over 7,000 carriers with 150,000 units of Refrigerated capacity with a single phone Call. Intermodal temperature-controlled Options include turnkey blanket products In dry containers, as well as intermodal Refrigerated containers. • Foil insulated blankets Lightweight, disposable blankets that help protect products from freezing. Can be reused. Most inexpensive option with lower level of temperature protection. • Thermal quilts Heavy, reusable blankets for protection from freezing which can be reused many times. Available with top-ofload coverage, or with side-wall panels for a greater level of protection. Pallet covers also available for small quantities per load. Monitoring Services ► Your blanket or ours ► Dailey weather updates ► Priority dispatch ► Customized scheduling ►24/7 monitoring What’s your next move?™ | 17 The J.B. Hunt Temperature Controlled Intermodal (TCI) Container Information • CIMC Built Container • Thermo King Cooling Unit • StarTrak LMS Software • Configured for JBHZ Chassis • 156 Gallon Aluminum Fuel Tank • Fuel Heater • E-Track – Two rows full length • Single Temp/Single Chute • Door Sensor-Alarm Gross Payload (product + dunnage) 42,000 lbs (Daycab Dray) 40,000 lbs (Sleeper Dray) Floor space will accommodate 28 pallets. (48x40 four way entry) Interior Width = 97.25” Interior Length = 49’ 9” Interior Height = 101.8” Interior Volume = 3,422 ft3 What’s your next move?™ | 18 National 2012-2008 Top Categories The information contained in this report is not inclusive of all cargo theft that has occurred nationally. CHP / CTIP and NICB have been collecting and tracking cargo theft data since 2003. Report is based on voluntary data provided to the CTIP Taskforce. Prepared by the California Highway Patrol / CTIP Taskforce What’s your next move?™ | 19 State Comparison 2008-2012 The information contained in this report is not inclusive of all cargo theft that has occurred nationally. CHP / CTIP and NICB have been collecting and tracking cargo theft data since 2003. Report is based on voluntary data provided to the CTIP Taskforce. Prepared by the California Highway Patrol / CTIP Taskforce What’s your next move?™ | 20 2008-2012 by Product - California The information contained in this report is not inclusive of all cargo theft that has occurred nationally. CHP / CTIP and NICB have been collecting and tracking cargo theft data since 2003. Report is based on voluntary data provided to the CTIP Taskforce. Prepared by the California Highway Patrol / CTIP Taskforce What’s your next move?™ | 21 Power In-Lock® Cargo Protection Supply Chain Integrity and Product Safety Internal deadbolt lock that cannot be cut or easily broken Remotely operated through StarTrak LMS software by designated J.B. Hunt intermodal personnel. Can be locked/unlocked locally on 10 digit keypad with rolling security code. Code has a 1 hour expiration. Locking pin fires into frame of container Tampering alarm programmed Thermo King power source & battery backup Wiring inside frame of container What’s your next move?™ | 22 Power In-Lock® Cargo Protection What’s your next move?™ | 23 General loading guidelines: Evenly distribute lading weight Fill lengthwise space with lading or buffer material Plan load to minimize crosswise void space Stow heavier lading on bottom, lighter lading on top Provide stable base for all cargo Segregate irregular lading from remainder of lading (use blocking/bracing, separators, dividers) What’s your next move?™ | 24 Load Planning (2) 48x96” AAR approved air bags Pallets turned 48” across What’s your next move?™ | 25 Dunnage and Securement Products Honeycomb Drop Down Filler Corrugated Risers Kraft Airbag Saddle PaK Contour Pads Polyethylene Woven Airbag Fill-m Filler Poly Strapping Stopak Airbag Pal-Kor Filler Metal Banding 1-1/4” x .032 Rubber Matting Door Pak Replaces plywood Ty-Gard Ty-Gard and Ty-Patch Tools What’s your next move?™ | 26 CLASSES OF CARGO SEALS High Security seal Security seal Indicative seal What’s your next move?™ | 27 BARRIER SEALS High security Figure ‘8’ cable seal What’s your next move?™ | 28 High Value - Containers in the Bottom Well - Cannot open the doors when in the Bottom Well as shown on the right What’s your next move?™ | 29 Thank You! CONFIDENTIAL What’s your next move?™ | 30