Ken Miller
Vice President, Intermodal
J.B. Hunt Transport, Inc.
Ken Miller, VP of Intermodal Operations
What’s your next move?™ | 1
SERVICE REVIEW: MARKET SHARE
 Market overview (segment specific)
 Market size: $12 Billion
 Capacity: 205,000 53-foot Containers
 Industry outlook: Growing at > 7%
 Our position
 25 - 28% of overall market (revenue and/or capacity)
 Opportunities
 Highway Conversion
 Customer Deliveries
 New Services – Canada/Mexico/Eastern Network Expansion
 Roadblocks
 Market Share
 Competitor Actions
What’s your next move?™ | 2
Intermodal Rail Carrier Industry Comparison
INTERMODAL
VOLUME
2011
4.5 M
SALES
APPROACH
BNSF
& Motor
Carriers
EQUIPMENT
OWNER
Type
LARGEST
SEGMENT
by volume
Unlimited
Intermodal
Motor
Carriers
Trailers &
Containers
Rail
Owned
3.3 M
CAPACITY
IMC
Limited by
fleet size
Industrial
Products
Containers
2.3 M
IMC & Motor
Carriers
Rail
Owned
Limited by
fleet size
Industrial
Products
Limited by
fleet size
Coal
Containers
3.2 M
IMC & Motor
Carriers
Rail
Owned
Containers
What’s your next move?™ | 3
Estimated 53’ Domestic Fleet by Owner
JB Hunt
65,700
EMHU
35,300
UMAX
32,700
Hub
23,100
Pacer
18,000
Schneider
15,800
Swift
10,200
CN
8,000
5,000
UPS
CSX
4,000
2,200
APL Logistics
Other
1,700
1,300
Universal Logistics
CH Robinson
1,000
COFC Logistics
Total Fleet Size
227,000
800
500
500
450
350
200
200
Marten
KCS
NS/KCS
Dart
Matson
FEC
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
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Supply Chain Opportunities
Transportation is
generally the
greatest cost in
the supply chain.
LOGISTICS COST BREAKDOWN
50%
Focus on Transportation
Collaboration to reduce costs
and increase capacity.
22%
10%
8%
4%
Transportation Inventory
Labor
Customer
Rent
3%
2%
1%
Admin
Supplies
Other
Source: Establish, Inc/Herbert W. Davis and Company 2006 Database
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Today’s Supply Chain Landscape
 Shippers are looking for partners with flexible, comprehensive, value
added solutions
 Steadily increasing freight demand
 Truckload capacity continues to tighten
 Supply/demand balance becoming an issue
 Intermodal volumes continue to rise and take highway share
 Diesel prices remain elevated
CONFIDENTIAL
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Top Supply Chain Challenges (Next 2-5 Years)
 Tightening driver market
 Government regulations
 CSA
EOBR mandates
Hours of Service
CARB
 Aging equipment leads to replacement at higher cost basis
 Highway infrastructure – congestion and deterioration
 Access to capital
 Fuel
 Managing Budgets
CONFIDENTIAL
What’s your next move?™ | 7
Intermodal Benefits Are Driving Change
Shippers, Carriers, Environment
● Economical
● Expanding capacity
● Greener shipping
● Less congestion
● Better jobs
CONFIDENTIAL
What’s your next move?™ | 8
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?™ | 9