Today’s Trucking Challenges Midwest Foreign Commerce Club April 12, 2018

CPG Network YOUR INTERMODAL RESOURCE 47 years of service Strategic network of terminals in 24 cities Full service Trucking and Depot operations

Constrained Capacity Reasons and Contributing Factors Solutions

Capacity Simple Economics at work: Supply and Demand Driver wages have been relatively flat for three years U.S. Economy is picking up and steady and consistent jobs are available Drivers leaving the drayage sector to work in the TL or construction sector - less labor issues The trucking sector is not bringing in the new drivers to keep pace with the growing economy

Capacity Retirement Compensation Port and Rail congestion Regulations (HOS and ELD requirements)

ELD No change in Hours of Service only the means by which it is recorded 14 hours On Duty, 11 hours Driving 30 minute break every 8 hours By the minute as opposed to quarter hours Inside of 100 air mile radius Brings parity among service providers Data collection

Solutions Depot velocity Working to ensure ALL drivers are quickly processed Effective use of CPG holding areas Increasing driver compensation Selecting the right cargo/lanes to handle Enhanced recruitment, retention and safety programs Continued partnership with all I/Cs to ensure their success

Solutions Equipment Providers Ensure roadworthiness Return flexibility

Solutions Rail Ramps and Marine Terminals Reasonable turn times Increase velocity Extended hours

Solutions Cargo Owners Drop/Pick Flexible appointment times Extended hours Weekend receiving

Solutions Ocean Carriers and Intermediaries Offer flexibility with chassis options Work with your BCO to become an attractive customer Use your influence with your Rail, CY and Marine Terminal

Continued partnership with all segments of the industry to address this challenge …

Thank You !