Intermodal News Report Intermodal Association of Chicago March

Intermodal News Report Intermodal Association of Chicago March 6, 2017 Jason Hilsenbeck Load. Match & Drayage. com President – Founder

Load. Match. com Intermodal Equipment Matching Drayage truckers post having empty containers Shippers/Freight Forwarders/Ocean Lines/IMCs post loads needing containers Email or XML message is sent to each party when a posting matches a need with a have Free to post …no transaction fees 2

Drayage. com Phonebook of Draymen 2900+ unique draymen profiles listed (was 2700 draymen last year at this time) Search draymen in USA & Canada for chassis, haz-mat, transloading-warehousing, customs bonded, parking, CY operations, SCAC, TWIC, dry / refrigerated / household / tank drayage Blast an email out to a group of draymen that matches your requirements 3

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Click activity on Chicago Dray list: 2017 starting out more demand for drayage power compared to this time last year, but demand still below compared to 2015 demand. Note how March typically has more demand for drayage than Feb. 7

Click activity on each City Metro: (click count in past 60 days ) 8

Load. Match & Drayage. com Online since 1999, our goal is to provide visibility online of equipment, power only, and loads to the Intermodal - Import/Export community Full Membership is flat $50 per month Independently owned; not affiliated with any customer or vendor Load. Match doesn’t broker and doesn’t own any trucks. 9

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2016 -02 2017 -02 Intermodal 53’ Container Fleets - United States (dry, for railroad) Unit Count U. S. Motor Carrier & 3 PL owned 80, 000 85, 200 JBHU - JB Hunt (+5200 from last year) 29, 300 32, 000 HGIU, HGWU, UPHU, NHUU, NHWU, HUNU - Hub Group (+2700 from last year) 17, 500 17, 000 SNLU - Schneider (-500 from last year) 10, 000 PACU, XPOU - Pacer (unchanged count, but half fleet new XPOU) 9150 SWRU - Swift (unchanged) 5400 5750 UPSU - UPS (+350 from last year) 2550 2950 MEQU, MLNU, ECDU - Milestone (+400, equipment can be leased) 1850 FDXU, FEDU - Fed. Ex Freight, Fed. Ex Ground (unchanged / 1750 FDXU, 100 FEDU) 1000 APDU - APL Logistics (unchanged) 1000 RBTU - CH Robinson (unchanged) 800 UTLU - Universal Logistics (unchanged) 800 CFQU - COFC Logistics (unchanged last year, but adding 225 between mid-March mid-April) 300 400 MLHU - Matson Logistics (+100 from last year) 50 80 AMHU - American Highway (+30 from last year, adding 20 more this year) 16 16 WERU - Werner (pilot program started 2014) 159, 716 167, 996 total managed by United States, Motor Carrier & 3 PL (+8280 last year, +5. 2% increase) data as of March 1, 2017 - researched by Jason Hilsenbeck, owner of 15

2016 -02 2017 -02 Intermodal 53’ Container Fleets - United States (dry, for railroad) Unit Count 41, 550 38, 000 EMHU - UP/NS/CP (-3550 from last year) 43, 050 44, 000 UMAX - UP/CSX (+950 from last year) 4000 900 800 90, 300 U. S Railroad owned 4000 CSXU - CSX (unchanged) 900 TMXU - NS/KCS (unchanged) 800 XFEU - Florida East Coast (unchanged) 87, 700 total managed by United States, Railroad (-2600 last year, -2. 9% decrease) 250, 016 255, 696 total managed by United States, Railroad + Motor Carrier & 3 PL 2016 -02 United States 53’ container fleet only grew +2. 3% with +5680 units (compared to last year +8. 6% with +19, 780 units) 2017 -02 Intermodal 53’ Container Fleets - Canada (dry, heated for railroad) Unit Count Canadian Railroad owned 7900 5330 13, 230 7860 CNRU – Canadian National (-40, includes Dry and Heated, doesn't include 625 reefer boxes) 4920 CPPU – Canadian Pacific (-410 includes Dry and Heated, doesn't include 710 reefer boxes) 12, 780 total managed by Canada, Railroad (CN, CP) (-450 last year, -3. 4% decrease) Canadian Tire has around 5900 x 53’ CDAU containers data as of March 1, 2017 - researched by Jason Hilsenbeck, owner of 16

Intermodal 53’ Container Fleets - United States (dry, for railroad) 300000 250000 200000 150000 100000 50000 0 2012 U. S. - TOTAL 2013 2014 2015 U. S. Truckload/IMC Owned 2016 2017 U. S. Railroad Owned 17

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Refrigerated Container News Infinity Transportation Logistics (ITL) – unchanged at 200 x 53’ reefer service Pacific Northwest to Midwest and East Coast (started business in Spring 2014) Tiger Cool Express – now at 730 x 53’ reefer containers (700 last year, started business Spring 2014) C. R. England – at 1650 x 53’ reefer containers JB Hunt – at 200 x 53’ reefer container Alliance Shippers – at 2200 x 53’ reefer trailers 23

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Flat Rack Fleet News 53’ Intermodal Flat Rack fleet: Dektrix Transportation Services (73 flatdecks) Prime Inc (67 decks, both Fontaine and Raildecks) Raildecks ceased operations 2016, leaving Fontaine as only manufacturer 25

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IMC / Broker News 10/2016 – Sunteck Transport Group, TTS LLC merge (new name “Sunteck/TTS Holdings” and rank top 10 freight brokerages with annual gross revenue of about $900 million. Drayage names: E-Transport / Railport Services Integrated Intermodal ) Echo Global reopens office in downtown Chicago, now has 225, 0000 -square-foot to hold 2, 000 employees (500 came over from Command Transportation) 27

FF / NVO News 1/2016 – DSV bought UTi (UTi had Chicago and Aurora locations, approx 500 people) 8/2016 – Havi Group rebrands four brand names into just “Havi” (based in Chicago, founded in 1974 with 9, 000 employees throughout 100 countries) 8/31/2016 – Hanjin declares bankruptcy (SM Shipping of Korea bought Asia-North America route, first ex-Hanjin vessel to arrive April 21 Long Beach) 28

Drayage Trucking News April 2016 – Elite Cartage closed Aug 22, 2016 – Central States buys Triumph Transport / Cudahy, WI Aug 24, 2016 – Aim Transfer / Oak Creek, WI buys Bay Motor / Green Bay, WI (now Aim Transfer “North”) Aug 29, 2016 – C&K buys Cushing / Chicago (Cushing / Rochelle still operates) 29

Will County News 7/2016 – Amazon Opening 3 rd Chicago-Area Warehouse in Romeoville, IL (750, 000 sq. ft. 600 new jobs) 8/2016 – Amazon Opening 4 th Chicago-Area Warehouse in Monee, IL (850, 000 sq. ft. ) (starting three years ago, approx 2500 new jobs in Joliet/Aurora under Amazon) 30

CP's Bensenville Yard vs. Elgin O’Hare Western Access 7/2016 – Illinois Tollway wants to take about 28 acres of CP's 320 -acre Bensenville Yard for expansion of I-390 Elgin O’Hare Western Access Project (Proposed new roadway running south from Irving Park Road to the Tri-State would include a new interchange at the new highway’s junction with Franklin Avenue/Green Street in Bensenville) 31

Elgin O’Hare over CP's Bensenville Yard 32

New CSX Intermodal to be built south of Crete, IL Feb 9, 2017 – CSX held open house in Crete, IL announcing plan to build new intermodal terminal. CSX plans to install eight 6, 000 -foot processing tracks and two 6, 500 -foot support tracks to accommodate 2, 600 container spaces with seven electric cranes doing 500, 000 container lifts per year. Railroad line routes to southern corridor to Evansville IN / Nashville TN / Atlanta GA / Savannah GA Too early to know effect on existing CSX - Chicago terminals ETA for opening 2020 33

New CSX Intermodal to be built south of Crete, IL West of tracks, south of Crete-Monee Road and north of Goodenow Road 34

Is BNSF Logistics Park / Elwood going to grounded operations? The “official” word from BNSF Public Relations, Andy Williams on March 3, 2017: BNSF added wide-span cranes to LPC / Elwood last Fall to additional capacity, to increase the amount of stacked containers along with current wheeled customers. BNSF LPC / Elwood is not going to ground all containers. “Grounding” means containers are lifted off the train cars and placed directly on the ground (or put into a stack) Trucking company decides which chassis goes under the container “Wheeled” means containers are lifted off the train cars and placed directly onto wheels. Railroad decides which chassis. 35

Miscellaneous Federal tax on gas was last raised in 1993 18. 4 cents gallon gas (24. 4 diesel) not indexed to inflation IL gas tax 34. 01 cents / diesel tax 35. 32 IN gas tax 33. 59 cents / diesel tax 41. 25 WI gas tax 30. 90 cents / diesel tax 30. 90 80, 000 lbs. United States gross limit (started 1981) 97, 000 lbs. Europe limit (44 tons) 103, 000 lbs. Canada average limit (46. 5 tons) (western province of Alberta, Canada: 140, 000 lbs. /63, 500 kilograms) 107, 000 lbs. Mexico limit (Mexico can do 107. . and U. S. only 8 o? ) (48. 5 tons) 129, 000 lbs. permits in Utah, Nevada, soon Idaho (United States is a patchwork of state issued overweight permits and policies) 36

Final Comments ELD-Electronic Logging Devices effect on Drayage Trucking this time next year TPM-Trans. Pacific Maritime conference comments U. S. dollar is expensive Import container volume increase / Exports decrease Low diesel fuel price Medium haul Intermodal, inland Import/Export moves OTR 2017 outlook for container volume and dray moves 37

Thank you Jason Hilsenbeck President Load. Match & Drayage. com Naperville, IL www. loadmatch. com = Equipment Matching www. drayage. com = Phonebook of Draymen 630 -428 -9230 x 114 38