Intermodal - What You Need to Know

What’s your next move?™

SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED

Intermodal - What You Need to KnowTransportation & Logistics Council Annual ConferenceSan Diego, CA - April 22, 2013

2What’s your next move?™ |

Supply Chain Solutions

CONSUMPTIONMANUFACTURING DISTRIBUTION POINT OF PURCHASE


Diversified and Complementary

60%21%

9%

10%

2012 Revenue Mix

JBI

DCS

ICS

JBT


Annual J.B. Hunt Intermodal Volumes

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1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Es

t

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

1,300,000

1,400,000

1,500,000


Intermodal Network Is In Place

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Intermodal Benefits Are Driving Change

Shippers, Carriers, Environment

● Economical

● Expanding capacity

● Greener shipping

● Less congestion

● Better jobs

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What Freight Moves Intermodal Today?

Types of Intermodal Shipments

● Import shipments

● Inbound to DC and Outbound to Store

● Consolidation

● Temp-Controlled

● Flatbed

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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.”

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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

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10What’s your next move?™ |10

Your Options…

VALUE | Standard Service Solution for price sensitive shippers Averages 600 miles per day

FAST | Expedited ServiceFastest intermodal service in the industryAverages 800 miles per day

With two service levels to choose from, JBHT & BNSF offers shippers the best transportation value.


Expedited Service

Pacific Northwest

Northern California

SouthernCalifornia

DenverKansasCity

Memphis

DFW

Chicago

Atlanta

Northeast

Southeast

Region Door to Door Transit Days


SCAL-CHI 4.5 SCAL-ATL 4.9CHI-SCAL 3.8 ATL-SCAL 5.6NCAL-CHI 4.6 SCAL-KC 3.7CHI-NCAL 4.4 KC-SCAL 3.7PNW-CHI 4.4 DEN-CHI 3.0CHI-PNW 3.4 CHI-DEN 2.0DFW-CHI 2.6 SCAL-ATL-SE 7.9CHI-DFW 2.5 SCAL-CHI-NE 8.5SCAL-MEM 5.0 SCAL-CHI-SE 9.0MEM-SCAL 4.7 NCAL-CHI-NE 8.6SCAL-DFW 3.6 NCAL-CHI-SE 9.1DFW-SCAL 3.9 SCAL-MEM-NE 10.7

SCAL-MEM-SE 11.0


Standard Service

Pacific Northwest

Northern California

SouthernCalifornia

DenverKansasCity

Memphis

DFW

Atlanta

Southeast

MidwestNortheast

Chicago



SCAL-CHI 4.8 DEN-CHI 4CHI-SCAL 4.7 CHI-DEN 4NCAL-CHI 5.5 ATL-SE 3CHI-NCAL 5.4 SE-ATL 3.8PNW-CHI 4.7 NE-CHI 2CHI-PNW 4.6 CHI-NE 4DFW-CHI 3.5 ATL-CHI 2.8CHI-DFW 2.8 CHI-ATL 2.7SCAL-MEM 5.7 SE-CHI 4.9MEM-SCAL 4.9 CHI-SE 4.5SCAL-ATL 5.7 MW-CHI 2.6ATL-SCAL 5.8 CHI-MW 1.5SCAL-DFW 4.6 MW-SE 4DFW-SCAL 4.9 SE-MW 4.5SCAL-KC 4.5 MW-NE 4.2KC-SCAL 4 NE-MW 4.6


Sources of US Greenhouse Gas Emissions

4 Transportation is responsible for 26.9% of U.S. greenhouse gas emissions

4 21.88% of the total Transportation emissions (5.9% of the total) are caused by medium- and heavy-duty vehicles

Source: Inventory of US Greenhouse Gas Emissions and Sinks, 1990-2010.

26.9%

Electricity TransportationIndustryAgricultureCommercialResidentialU.S. Territories

2010 US Greenhouse Gas EmissionsBy Sector


1. Know your network footprint

Then, attack it by:2. Eliminating miles

- Network re-alignment- Route optimization

3. Increasing payload- Maximize cube & weight

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

How? J.B. Hunt’s Transportation Carbon Diet

Reduced Costs Means Reduced Emissions!


CLEAN Transport™

4 Proprietary JB Hunt tool calculates customer’s carbon footprint & identifies intermodal conversion opportunities


Intermodal as “Carbon-Lite Transportation”

0.0

0.5

1.0

1.5

2.0

2.5

3.0

(Ton

nes)

Over-the-RoadTruckload

Reduce Idle Reduce Empty Miles Convert to Intermodal

Carbon Emissions - 1,800 Mile Shipment

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

50% less carbon;1.5 fewer tonnes


Freeze Protect Service

J.B. Hunt offers freeze protection service for freight that may be susceptible to low-temperature swings. Our single-source solutions utilize both temperature-controlled intermodal and van service that is custom-izable according to your needs. Pricing includes service monitoring on every load. Monitoring Services

► Your blanket or ours► Dailey weather updates► Priority dispatch► Customized scheduling►24/7 monitoring

Temperature- Controlled SolutionsOver-the-Road and IntermodalTemperature-Controlled Options

Over-the-road freeze protect servicesAre provided through our ICS (IntegratedCapacity Solutions) division. Access over7,000 carriers with 150,000 units of Refrigerated capacity with a single phoneCall.

Intermodal temperature-controlledOptions include turnkey blanket productsIn dry containers, as well as intermodalRefrigerated containers.

Blanket Protection can help protectYour products from damage from freezing.

• Foil insulated blankets Lightweight, dis- posable blankets that help protect products from freezing. Can be reused. Most in- expensive 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-of- load coverage, or with side-wall panels for a greater level of protection. Pallet covers also available for small quantities per load.


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


National 2012-2008 Top Categories

Prepared by the California Highway Patrol / CTIP Taskforce

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 basedon voluntary data provided to the CTIP Taskforce.


State Comparison 2008-2012




2008-2012 by Product - California




Power In-Lock® Cargo Protection

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

Supply Chain Integrity and Product Safety


Power In-Lock® Cargo Protection


General loading guidelines:

4 Evenly distribute lading weight4 Fill lengthwise space with lading or buffer material4 Plan load to minimize crosswise void space4 Stow heavier lading on bottom, lighter lading on top4 Provide stable base for all cargo4 Segregate irregular lading from remainder of lading (use

blocking/bracing, separators, dividers)


Load Planning

(2) 48x96” AAR approved air bagsPallets turned 48” across


Dunnage and Securement Products

Diamond

Pak

Door

Pak

HoneycombDrop Down Filler Pal-Kor Filler

Door PakReplaces plywood

Kraft Airbag

Saddle PaK

Ty-Gard

Fill-m Filler

Corrugated Risers

Stopak AirbagPolyethylene WovenAirbag

Ty-Gard and Ty-PatchTools

Contour PadsPoly Strapping Metal Banding

1-1/4” x .032

Rubber Matting

http://greif.thomasnet.com/category/oducts-specialty-and-protective-packaging-products?

http://greif.thomasnet.com/product/aging-products-transit-protection-dunnage-products/nsit-protection-for-trailer-and-container-shipment?


CLASSES OF CARGO SEALS

Indicative seal

Security seal High Security seal

http://www.securityseals.com/productcart/pc/viewCat_P.asp?idCategory=273

http://www.rfidjournal.com/article/articleview/732

http://www.rfidjournal.com/article/articleview/732


BARRIER SEALS

High security

Figure ‘8’ cable seal


High Value - Containers in the Bottom Well - Cannot open the doors when in the Bottom Well as shown on the right


Thank You!

CONFIDENTIAL

Documents

Intermodal - What You Need to Know