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September 25, 2010 2010 Transportation Outlook
September 25, 2010
2010 Transportation Outlook
Program Overview
Transportation Environment
Key Initiatives
2
2010 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
5
Member Benefits
Program History & Service Offerings
2009 - 2010 in Review
Transportation Environment
Key Initiatives
6
2010 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
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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 8th consecutive increase in tonnage Capacity following the trend?
Dry van leading the charge
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Transportation Environment
1. 12% increase YoY2. Barrel prices hovering around $75/barrel3. EIA predicting YoY increases in consumption of liquid fuels for remainder of 2010 and into 2011
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Transportation Environment
Cost of Hire – North America
Year % Increase
2003 ---
2004 12.6%
2005 16.5%
2006 2.3%
2007 0.0%
2008 16.6%
2009 -19.4 %
2010* 14.9 %
* For loads moved through the 2nd Qtr of ‘10 comparisons were made for the same period in ‘09
Cost per Mile - All Zones
Janu
ary
Febr
uary
Mar
chApr
ilM
ayJu
ne July
Augus
t
Septe
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r
Octob
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Novem
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Decem
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2003
2004
2005
2006
2007
2008
2009
2010
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Transportation Environment
Cost of Hire – NorthwestYear % Increase
2003 ---
2004 9.3 %
2005 21.4 %
2006 0.6 %
2007 -1.2 %
2008 9.5 %
2009 -13.6 %
2010* 3.8 %* For loads moved through the 2nd Qtr of ‘10 comparisons were made for the same period in ‘09
Cost per Mile - Zone 4
Janu
ary
Febr
uary
Mar
chApr
ilM
ayJu
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Augus
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Septe
mbe
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Octob
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Novem
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Decem
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2003
2004
2005
2006
2007
2008
2009
2010
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2009 - 2010 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 UtilizationLeverage Backhaul OpportunitiesLeverage buying power for contracted volume/pricingContinue to develop WA & ID Supplemental
ProgramsForward Distribution ProgramsCreate awareness around warehousing capabilities
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Shannon Leigh
Sales Manager
100 Wilson Road, Suite 200
Monterey, CA 93940
Office: 866.771.1270
Cell: 831.392.7307
Questions & Answers
2010 Annual OAN Convention
