September 25, Transportation Outlook
Program Overview Transportation Environment Key Initiatives Annual OAN Convention OAN/CHRW Program Overview Transportation Environment Key Initiatives
3 OAN/CHRW Program Overview Dedicated Nursery Account Management Team Weekly Freight Rates & Market Communication Surge Capacity Leverage Buying Power & Carrier Networks Communication & Technology Vast Logistical Services
4 Member Benefits
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Program History & Service Offerings in Review Transportation Environment Key Initiatives Annual OAN Convention OAN/CHRW Program Overview Transportation Environment Key Initiatives
7 Transportation Environment Refrigerated Transportation Costs up 3.8% YTD Demand vs. supply External market factors CA season: prolonged peak pricing Truck tonnage July tonnage up 7.4% Truck replacement rates 12% increase in YoY sales forecasted for 2010 Lowest reported since inception of data capture in 1982 I00 K Tractors lower than est. annual need Government Programs CARB CSA 2010 HOS Regulations Transportation Trends
8 Transportation Environment Used truck registrations dominating the market Older equipment on the roads New registrations represented YoY increase of 7.8% Slower rate than equipment leaving the market Total registered vehicles still declining 180 degree turn from last year at this time 8 th consecutive increase in tonnage Capacity following the trend? Dry van leading the charge
9 Transportation Environment 1.12% increase YoY 2.Barrel prices hovering around $75/barrel 3.EIA predicting YoY increases in consumption of liquid fuels for remainder of 2010 and into 2011
10 Transportation Environment Cost of Hire – North America Year % Increase % % % % % % 2010* 14.9 % * For loads moved through the 2 nd Qtr of ‘10 comparisons were made for the same period in ‘09
11 Transportation Environment Cost of Hire – Northwest Year % Increase % % % % % % 2010* 3.8 % * For loads moved through the 2 nd Qtr of ‘10 comparisons were made for the same period in ‘09
12 in Review Transportation Environment Key Initiatives 2010 Annual OAN Convention OAN/CHRW Program Overview Transportation Environment Key Initiatives
13 Key Initiatives Service Diversity Increase New Member Utilization Leverage Backhaul Opportunities Leverage buying power for contracted volume/pricing Continue to develop WA & ID Supplemental Programs Forward Distribution Programs Create awareness around warehousing capabilities
14 Shannon Leigh Sales Manager 100 Wilson Road, Suite 200 Monterey, CA Office: Cell: Questions & Answers 2010 Annual OAN Convention