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Ken Miller Vice President, Intermodal J.B. Hunt Transport, Inc.
1 What’s your next move?™ |
Ken Miller, VP of Intermodal Operations
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
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
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
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
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
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
8 What’s your next move?™ |
Intermodal Benefits Are Driving Change
Shippers, Carriers, Environment
● Economical
● Expanding capacity
● Greener shipping
● Less congestion
● Better jobs
CONFIDENTIAL
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