Learn more about domestic intermodal from the perspective of IDS Transportation

1. Domestic Intermodal Overview

2. About Us
 Closely held private company founded in 1960
 Headquartered in Indianapolis, IN
 Also in Salt Lake City, Utah
 North American Focused
 $50.0 million in sales
 Domestic Intermodal is 90% of transportation division
 Operate Regional Assets for Dry & Temp Controlled Pooling
 Union Pacific refers all intermodal leads to IDS
 Relationship with All Class I North American Railroads
 Publish weekly intermodal index with The Journal of Commerce

3. AZ Companies
Associations and Memberships

4. Why Use IDS Domestic Intermodal
 15% to 18% Cost Savings over Truckload Rates
 Up to the Minute Tracking
 24/7 Single Point of Contact
 Transit Competitive with Truckload
 SmartWay Partner for Supply Chain Sustainability
 Access to over 75% of Domestic Intermodal Boxes
 Capacity Solution to Tightening Truckload Market
 More than Just a Price Decision

5. Domestic Intermodal Market
 Current Market size: $12 Billion
 Capacity: 220,000 53‐foot Containers
 Industry 2014 Outlook: Expecting > 7% Growth
 Fastest Growing Transportation Segment
 Taking OTR Market Share
 Railroads Estimate Serving only 50% of Potential

6. Simplified Intermodal Service Model
Receivers
Distribution Center
Manufacturer
Shippers
Manufacturer
Door-to-Door Service
Drayage
Management Shipment Visibility
Drayage
Management
IDS door-to-door operating efficiencies match capabilities of large asset-based carriers
98%+ On-Time Pick-Up & Delivery
Distribution Center Retail Store

7. Market Share by Box Count
J. B. Hunt
Schneider
Swift
CSX
Small Private Fleets
33%
54%
10%
11%

8. Key Transcontinental Lanes
IDS Transportation / Journal of Commerce Domestic Intermodal Spot Rate Index

9. Major Class I Intermodal Routes

10. Door-to-Door Transits

11. Door-to-Door Tracking

12. Intermodal Opportunities within Your
Business Today
Replacement to OTR over 700 miles
Appointed Customer Deliveries
Consolidations & Pooling
Transloading
Drop Pools
Canadian Shipments
Mexico Shipments

13. OTR Challenges
• Tightening Driver Market
• Average Age is 45
• Government Regulations
• CSA EOBR Mandates Hours of Service
• Aging Equipment Leads to Replacement
at Higher Cost Basis
• Highway Infrastructure
• Congestion and Deterioration
• Access to Capital
• Average Fleet is 20 Trucks
• Fuel
• Managing Budgets

14. Regulations, More than Demand, Driving
Coming OTR Capacity Issues
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug & Alcohol Data Base
Prohibition Of Coercion
Tons of New Regulations
1 Safety information and carrier ratings
2 Special state regulations on trucking (ex: CARB)
3 Opening the border to trucking
4 Elimination or allowing of illegal aliens
5 Various health regs (apnea, medical certs, etc.)
6 Require ELDs or electronic logging devices
7 Hours of service changes
8 Increase broker bond & require prompt payment to carriers
9 More stringent temperature & cleanliness requirements
10 Encourage union membership and require benefits for ICs
11 Examination of fleets for patterns of violations
12 Prevent shipper coercion regarding HOS, CSA, etc.
13 National drug clearinghouse
14 Requiring standard training procedures
15 Test new carriers for proficiency
16 Increase minimum insurance coverage for carriers
17 Tightened OSHA requirements
18 Hold shippers & brokers responsible for hired carriers' safety
19 Limit max governed speed (64 MPH)
20 New vehicle stability controls

15. Intermodal’s Momentum Versus Truck
 Domestic intermodal has
posted load growth 12
straight years, including
2009
 Van TL loads have
contracted 8 of the past 12
years, including 3 of last 5
years
 Van loads are ~18% below
2007 levels
 Domestic container growth
has averaged 9.2% annual
growth since 2007 (versus
GDP growth of ~1.8%)

16. What You Need to Know
42,500 vs 45,000
Pricing Options
Guaranteed Capacity
Spot Rates
7 Day Spot
30 Day Spot
Project Rates
Blocking & Bracing
Greater Security

17. Misconceptions About Intermodal
Ask Us More on the Topic
Long Transit
Unreliable Service
Can’t be Used for Retail or Appointed Loads
High Damage & Loss Claims
Blocking & Bracing is Time Consuming & Costly
More Complicated than OTR

18. Weight Guidelines

19. Follow the IDS Blog for Information on
Intermodal
www.idstransportation.com
Publish weekly blogs on everything shippers need to know to be
successful in transitioning over their OTR lanes to Intermodal
Whitepapers & eBooks found on the IDS Transportation website
Market information and other freight saving opportunities also
discussed on the blogs