Domestic Intermodal Overview

About Us

Closely held private company founded in 1960 Headquartered in Indianapolis, IN

Also in Salt Lake City, Utah North American Focused $50.0 million in sales Domestic Intermodal is 90% of transportation division

Operate Regional Assets for Dry & Temp Controlled Pooling Union Pacific refers all intermodal leads to IDS Relationship with All Class I North American Railroads Publish weekly intermodal index with The Journal of Commerce

AZ Companies

Associations and Memberships

Why Use IDS Domestic Intermodal 15% to 18% Cost Savings over Truckload Rates Up to the Minute Tracking 24/7 Single Point of Contact Transit Competitive with Truckload SmartWay Partner for Supply Chain Sustainability Access to over 75% of Domestic Intermodal Boxes Capacity Solution to Tightening Truckload Market More than Just a Price Decision

Domestic Intermodal Market Current Market size: $12 Billion Capacity: 220,000 53 foot Containers‐ Industry 2014 Outlook: Expecting > 7% Growth Fastest Growing Transportation Segment Taking OTR Market Share Railroads Estimate Serving only 50% of Potential

Simplified Intermodal Service ModelReceivers

Distribution Center

Manufacturer

Retail StoreDistribution Center

Manufacturer

Shippers

Door-to-Door Service

Drayage Management Shipment Visibility

Drayage Management

IDS door-to-door operating efficiencies match capabilities of large asset-based carriers

98%+ On-Time Pick-Up & Delivery

Market Share by Box Count

Small Private Fleets

J. B. Hunt

Schneider

Swift

CSX

54%

10%

11%

33%

Key Transcontinental Lanes

IDS Transportation / Journal of Commerce Domestic Intermodal Spot Rate Index

Major Class I Intermodal Routes

Door-to-Door Transits

Door-to-Door Tracking

Intermodal Opportunities within Your Business Today

Replacement to OTR over 700 milesAppointed Customer DeliveriesConsolidations & Pooling TransloadingDrop PoolsCanadian ShipmentsMexico Shipments

OTR Challenges• Tightening Driver Market

• Average Age is 45• Government Regulations• CSA EOBR Mandates Hours of Service• Aging Equipment Leads to Replacement

at Higher Cost Basis• Highway Infrastructure

• Congestion and Deterioration• Access to Capital

• Average Fleet is 20 Trucks• Fuel• Managing Budgets

Regulations, More than Demand, Driving Coming OTR Capacity Issues

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Implied Driver Hires Per Quarter Required By Regulation

Electronic Stability controls

Speed limiters

Safe Harbor

OSHA Worker Protection

Minimum Insurance

Entry Proficiency

Training Provisions

Drug & Alcohol Data Base

Prohibition Of Coercion

Tons of New Regulations1 Safety information and carrier ratings2 Special state regulations on trucking (ex: CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea, medical certs, etc.)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond & require prompt payment to carriers9 More stringent temperature & cleanliness requirements

10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS, CSA, etc.13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers & brokers responsible for hired carriers' safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls

Intermodal’s Momentum Versus Truck

Domestic intermodal has posted load growth 12 straight years, including 2009

Van TL loads have contracted 8 of the past 12 years, including 3 of last 5 years

Van loads are ~18% below 2007 levels

Domestic container growth has averaged 9.2% annual growth since 2007 (versus GDP growth of ~1.8%)

What You Need to Know

42,500 vs 45,000Pricing Options

Guaranteed CapacitySpot Rates

7 Day Spot30 Day Spot

Project RatesBlocking & BracingGreater Security

Misconceptions About IntermodalAsk Us More on the Topic

Long TransitUnreliable ServiceCan’t be Used for Retail or Appointed LoadsHigh Damage & Loss Claims

Blocking & Bracing is Time Consuming & CostlyMore Complicated than OTR

Weight Guidelines

Follow the IDS Blog for Information on Intermodal

www.idstransportation.com

Publish weekly blogs on everything shippers need to know to be successful in transitioning over their OTR lanes to Intermodal

Whitepapers & eBooks found on the IDS Transportation website

Market information and other freight saving opportunities also discussed on the blogs