TRUCKING 101

Snapshot of an Industry

Size & Scope (U.S.)$585 Billion gross freight revenue (’02)

86.5% of the Nation’s freight bill67.8% of US-Canada trade by value (’01)

67.9% of all freight tonnage moved (’02)2.6 million heavy commercial trucks (’01)585,677 companies on file with USDOT

92.9% operate 20 or fewer trucks

10.1 million trucking-related jobs (’00)

Bottom Line:

TRUCKING REPRESENTS 5%

OF THE TOTALU.S. GROSS DOMESTIC PRODUCT

Good Times for Trucking

2004-2005 - Great Years for TruckingBooming EconomyIncreases in Manufacturing, ImportsNo Excess CapacityRate Increases Stick

BUT …

Intense & Growing Pressures

Driver ShortageCDL Hazmat Background Checks

FuelPricesULS

InsuranceTort Reform

Pressures, cont’d.Clean Air Regulations

Diesel Engine RequirementsOperational Restrictions

ProductivityCongestion, Bad RoadsIncreasing FreightSize & Weight Caps

Taxes

A Changing IndustryNew Styles of Manufacturing & RetailingNew Logistics Demands

Just-in-Time PlusSupply-Chain ManagementRolling Warehouses

Economic Regulation & Categories Gone: Competition IntenseIndustry Now Must Be Flexible, Agile

WITHOUT TRUCKS AMERICA STOPS!

IFTA Deals with TWO Industries…

Truck Leasing – A Full Spectrum

Truck Rental and Full Service LeasingConsumer RentalOwner-Operator FleetsFinance Leasing

Tax Advantage LeasesTraditional Financing

Industry Stats (’02)

Total # of trucks - 1,012,154 Full Service Leasing – 307,396Finance Leasing – 320,935Commercial Rental – 113,168Consumer - 270,115

Size and ScopeThe combined lease/rental fleet comprises 37.5% of all commercial trucks in classes 3-8 that are five years old or less68.4% of the lease/rental fleet is five years old or less compared to only 31.3% of non-leased commercial trucksThe renting and leasing industry disposed of an estimated 40,000 units in 2001 and 55,000 units in 2002The average age of these vehicles was 5.5 years, slightly higher than the previous five year average

Size and Scope, con’tIndustry annually purchases approximately 40 percent of new commercial trucks manufactured in North AmericaTruck renting and leasing represents 21.5 percent, or more than 1 million of the 4.7 million commercial trucks, operating on U.S. and Canadian highways100,000 employees in over 36,000 locations1.5 Billion Gallons of Diesel Fuel Purchases Annually which on average equals $360 Million tax dollars

What does this mean to IFTA?

FSL trucks are generally reported under the Lessor’s IFTA licenseOwner Operators are generally reported by the Carrier they are signed on to but may be the IFTA licenseeFinance Lease trucks are generally reported under the Lessee IFTA license

Key to Success

Awareness of changing trucking environment and economyFlexibility in the Plan Continued cooperation between Industry and Jurisdictions