Multimodal Transport

1. Competing Modes Working Together to Deliver for Shippers(Presented By Clay Ramsey to Transportation Club of Houston - February 2012) Multimodal Transport J.B. Hunt Transport, Inc

2. Agenda Topics • 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

3. 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

4. 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

5. 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.

6. Multimodal Shippers/Carriers

7. 53’ Container Ownership in the U.S. • Containers available for domestic intermodal use by for-hire truckload carriers and IMC’s • EMP, UMAX, and CSX containers are available for lease to all carriers and IMC’s • 2011 end of year estimate

8. 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

9. Shipment Volumes and Rates Increasing 19% increase in freight expenditures (Dec’11 YOY) Expenditures Shipments Index to 1990 base 2008 2009 2010 2011 Source: Cass Freight Systems, Cass Freight Index TM

10. Cass Truckload Benchmark Nears ‘08 Levels Source: Cass Information Systems

11. Market Demand Index Reached a Four Year High Source: Trans4cast.com

12. Fuel Continues to Rise RECESSION $3.861/gal 12/31/2011 Source: U.S. Dept. of Energy (EIA)

13. Intermodal Remains an Attractive Option Millions Source: IANA Intermodal Market Trends and Statistics

14. 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

15. 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

16. J.B. Hunt – A Leading Intermodal Provider That was then… This is now… Intermodal Truckload Truckload Dedicated Logistics

17. J.B. Hunt Intermodal Load Volumes by Year

18. CLEAN Transport™ • A Proprietary JB Hunt tool that calculates carbon footprints and identifies opportunities for intermodal conversion

19. Questions? Contact Information: • Clay Ramsey • Clay_Ramsey@JBHunt.com • Phone: 832-257-4296 • JB Hunt Corporate: 479-820-0000