trends in intermodal freight transport: j.b. hunt ... · next. move?™ | 3 . intermodal rail...

10
Ken Miller Vice President, Intermodal J.B. Hunt Transport, Inc.

Upload: hoangtu

Post on 05-Aug-2018

222 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Trends in Intermodal Freight Transport: J.B. Hunt ... · next. move?™ | 3 . Intermodal Rail Carrier Industry Comparison ... Trends in Intermodal Freight Transport: J.B. Hunt Transport,

Ken Miller Vice President, Intermodal J.B. Hunt Transport, Inc.

Page 2: Trends in Intermodal Freight Transport: J.B. Hunt ... · next. move?™ | 3 . Intermodal Rail Carrier Industry Comparison ... Trends in Intermodal Freight Transport: J.B. Hunt Transport,

1 What’s your next move?™ |

Ken Miller, VP of Intermodal Operations

Page 3: Trends in Intermodal Freight Transport: J.B. Hunt ... · next. move?™ | 3 . Intermodal Rail Carrier Industry Comparison ... Trends in Intermodal Freight Transport: J.B. Hunt Transport,

2 What’s your next move?™ |

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

Page 4: Trends in Intermodal Freight Transport: J.B. Hunt ... · next. move?™ | 3 . Intermodal Rail Carrier Industry Comparison ... Trends in Intermodal Freight Transport: J.B. Hunt Transport,

3 What’s your next move?™ |

Intermodal Rail Carrier Industry Comparison

INTERMODAL VOLUME

2011

SALES APPROACH CAPACITY

4.5 M

3.3 M

2.3 M

3.2 M

BNSF & Motor Carriers

Motor Carriers

Unlimited

IMC Limited by fleet size

IMC & Motor Carriers

Limited by fleet size

Limited by fleet size

LARGEST SEGMENT by volume

Intermodal

Industrial Products

Coal

Industrial Products

Rail Owned

Containers

Containers

Trailers & Containers

EQUIPMENT OWNER

IMC & Motor Carriers

Rail Owned

Rail Owned

Containers

Type

Page 5: Trends in Intermodal Freight Transport: J.B. Hunt ... · next. move?™ | 3 . Intermodal Rail Carrier Industry Comparison ... Trends in Intermodal Freight Transport: J.B. Hunt Transport,

4 What’s your next move?™ |

Estimated 53’ Domestic Fleet by Owner

200

200

350

450

500

500

800

1,000

1,300

1,700

2,200

4,000

5,000

8,000

10,200

15,800

18,000

23,100

32,700

35,300

65,700

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000

FEC

Matson

Dart

NS/KCS

KCS

Marten

COFC Logistics

CH Robinson

Universal Logistics

Other

APL Logistics

CSX

UPS

CN

Swift

Schneider

Pacer

Hub

UMAX

EMHU

JB Hunt

Total Fleet Size 227,000

Page 6: Trends in Intermodal Freight Transport: J.B. Hunt ... · next. move?™ | 3 . Intermodal Rail Carrier Industry Comparison ... Trends in Intermodal Freight Transport: J.B. Hunt Transport,

5 What’s your next move?™ |

Source: Establish, Inc/Herbert W. Davis and Company 2006 Database

LOGISTICS COST BREAKDOWN

50%

22%

10% 8%

4% 3% 2% 1%

Transportation Inventory Labor Customer Rent Admin Supplies Other

Transportation is generally the greatest cost in the supply chain.

Focus on Transportation

Collaboration to reduce costs

and increase capacity.

Supply Chain Opportunities

Page 7: Trends in Intermodal Freight Transport: J.B. Hunt ... · next. move?™ | 3 . Intermodal Rail Carrier Industry Comparison ... Trends in Intermodal Freight Transport: J.B. Hunt Transport,

6 What’s your next move?™ |

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

Page 8: Trends in Intermodal Freight Transport: J.B. Hunt ... · next. move?™ | 3 . Intermodal Rail Carrier Industry Comparison ... Trends in Intermodal Freight Transport: J.B. Hunt Transport,

7 What’s your next move?™ |

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

Page 9: Trends in Intermodal Freight Transport: J.B. Hunt ... · next. move?™ | 3 . Intermodal Rail Carrier Industry Comparison ... Trends in Intermodal Freight Transport: J.B. Hunt Transport,

8 What’s your next move?™ |

Intermodal Benefits Are Driving Change

Shippers, Carriers, Environment

● Economical

● Expanding capacity

● Greener shipping

● Less congestion

● Better jobs

CONFIDENTIAL

Page 10: Trends in Intermodal Freight Transport: J.B. Hunt ... · next. move?™ | 3 . Intermodal Rail Carrier Industry Comparison ... Trends in Intermodal Freight Transport: J.B. Hunt Transport,

9 What’s your next move?™ |

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