How Does Less-Than-Truckload Trucking (LTL) Work? Brian Carter Corporate Account Executive, YRC Freight Bill Wanamaker Executive Director, Government Freight Conference American Trucking Associations

Glossary EOL End of the Line HUB Regional center of hub/spoke system Terminal Local center of hub/spoke system PND Pickup and Delivery Relay Same trailer moves on with new driver and new tractor DoDAAC Department of Defense Activity Address Code

CASE STUDY: Moving goods from Kittery, Maine: DODAAC: N39040, to Seal Beach, CA: Naval Weapons Station: Seal Beach: DODAAC: N32205 via LTL (less-than-truckload)

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Westbrook, ME • Terminal • EOL 7 miles west of Portland, ME • Terminal • EOL P&D driver departs for deliveries, then pickups (includes Kittery Naval) Trucking.org/Government_Freight_Conference.aspx

Truck makes pickup at DLA Portsmouth Naval Shipyard Trucking.org/Government_Freight_Conference.aspx

DLA Portsmouth Naval Shipyard, Kittery ME Trucking.org/Government_Freight_Conference.aspx

DLA Portsmith Naval Shipyard and returns to: Truck departs: DLA Portsmith Naval Shipyard and returns to: Westbrook, ME terminal Trucking.org/Government_Freight_Conference.aspx

Westbrook, ME • Terminal • EOL Depart for Maybrook, NY 7 miles west of Portland, ME • Terminal • EOL Depart for Maybrook, NY Trucking.org/Government_Freight_Conference.aspx

Truck arrives in Maybrook, NY Trucking.org/Government_Freight_Conference.aspx

Maybrook, NY • Hub • PND Heads out for Carlisle, PA 70 miles north of NYC • Hub • PND Heads out for Carlisle, PA Trucking.org/Government_Freight_Conference.aspx

Truck Arrives in Carlisle, PA Trucking.org/Government_Freight_Conference.aspx

Carlisle, PA • Hub • PND • EOL • Relay Departs for Richfield, OH 20 miles west of Harrisburg, PA • Hub • PND • EOL • Relay Departs for Richfield, OH Trucking.org/Government_Freight_Conference.aspx

Arrives in: Richfield, OH Trucking.org/Government_Freight_Conference.aspx

Richfield, OH • Relay 20 miles south of Cleveland, OH Departs Richfield, OH for Chicago Heights, IL Trucking.org/Government_Freight_Conference.aspx

Arrives in: Chicago Heights, IL Trucking.org/Government_Freight_Conference.aspx

Chicago Heights, IL • Hub • EOL • Relay Heads out for Bloomington, CA 31 miles south of Chicago, IL • Hub • EOL • Relay Heads out for Bloomington, CA Trucking.org/Government_Freight_Conference.aspx

Arrives in: Bloomington, CA Trucking.org/Government_Freight_Conference.aspx

Bloomington, CA • Terminal • EOL Heads out for San Diego, CA 50 miles east of Los Angeles, CA • Terminal • EOL Heads out for San Diego, CA Trucking.org/Government_Freight_Conference.aspx

Arrives in: San Diego, CA Trucking.org/Government_Freight_Conference.aspx

San Diego • EOL • Terminal Heads out for Naval Weapons Station Trucking.org/Government_Freight_Conference.aspx

Naval Weapons Station, Seal Beach DET Shipment arrives at Destination: Naval Weapons Station, Seal Beach DET Trucking.org/Government_Freight_Conference.aspx

Naval Weapons Station, Seal Beach DET Trucking.org/Government_Freight_Conference.aspx

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Two Main Components to the LTL Network Pick Up and Delivery (P&D) Drivers make multiple stops delivering and picking up shipments Most shipments delivered to terminals by 6:00 for routing to down-line terminals and distribution centers Line Haul Operates between terminals and distribution centers Some trailers are “railed” where appropriate via rail partners Some restricted access highways allow “triples” – 3 28’ or 48’ trailers in tandem. Since these are engineered and defined network moves, line haul operations allow for alternative fuel use and experimentation

Significant Difference between LTL and T/L LTL typically 200-20,000 pounds Hub-and-spoke network Allows customers to pay only for the part of the trailer they use Utilization of drivers much easier within regulatory environment High initial cost of network infrastructure creates high barrier to entry Truckload (TL) typically 20,000 lbs. + Point-to-point (less efficient for smaller loads) Difficulty meeting Hours of Service regulations Dominated by independent drivers (owner/operators) No barrier to entry