single source intermodal dedicated final mile truckload less than truckload refrigerated flatbed...
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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
10
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
● Phone: 832-257-4296
● JB Hunt Corporate: 479-820-0000