Inhibitors to Rail Carload and Intermodal Market Share Growth

Transcription

1 Inhibirs Ril Crlod nd Intermodl Mrket Shre Growth Industry Study Jnury, 2009

2 AGENDA Bckground Norbridge Study Approch Summry Fdgs Intermodl Growth Inhibirs Crlod Growth Inhibirs 1

3 Introduction Norbridge, Inc. mngement consultg compny tht ssts clients mkg better decions improve permnce We hve considerble experience ll spects trnsporttion nd logtics cludg ril nd truckg We conducted th study becuse we were terested understndg why ril did not g shre when fuel prices spiked first hlf

4 Study Prticipnts We terviewed 40 trnsporttion buyers get ir opions on how ir modl decions chnged when fuel costs spiked first hlf 2008 Interviewees were mjor compnies cross vrious dustry segments nd cluded both shipper nd receiver trnsport buyers Interviews were conducted between Ocber nd erly December, 2008 Interviewees were typiclly trnsporttion mngers 3

5 For lst severl yers, ril nnge hs triled rel GDP growth Ril Tonnge Chnge vs. Rel GDP Chnge 2000 = Ril Tons Origted US Rel GDP Sce: AAR, U.S. BEA, Norbridge Anlys 4

6 But by first hlf 2008, mny mcroeconomic fcrs fvored shift ril Issue Fuel Prices Productivity Environmentl Cpcity Detil Trucks re more fuel tensive thn ril Ril productivity hd improved or stbilized s truck productivity hd decled Ril hs low crbon footprt reltive truck, nd green ws emergg s sue While constred some lnes, ril hs vilble frstructure cpcity mny lnes, while highwys hve become cresgly congested 5

7 Ril nerly three times s fuel efficient s truck, yet did not g shre s fuel prices rose first hlf Ton-Miles per Gllon Fuel Volume Increses by Mode* First Hlf 2008 vs. First Hlf % 4% 3% % 100 1% 50 0 Ril Truck 0% Domestic Intermodl Ril Crlod Truck Sce: Texs Trnsporttion Center; EIA, IANA, AAR, ATA through June, 2008 *Domestic Intermodl crlods; Ril crlods origted, Truck nnge 6

8 Truck productivity hs decled durg pst five yers s ril productivity hs remed high U.S. Miles per Truck per Month vs. U.S. Ril Revenue Ton-Miles per Employee 2000= Miles per Truck per Month Ril Revenue Ton-Miles per Employee Sce: ATA, AAR, Norbridge Anlys Note: Compron shows key productivity dicrs ech mode 7

9 For shipper terested sustbility nd green scg, ril hs lower emsions per n-mile thn or modes Rnk (1= Most Desirble Oxides Nitrogen Emsions per Ton-Mile Voltile Orgnic Compounds Prticulte Mtter Crbon Monoxide Crbon Dioxide 1 Ril Ril Air Ril Ril 2 Wter Wter Ril Wter Wter 3 Truck Air Wter Air Truck 4 Air Truck Truck Truck Air Sce: Envirotrns, AAR 8

10 The rilrod system hs more vilble cpcity severl mjor metro res thn terstte highwy system Interstte Cpcity Issues (estimted 2010) Ril Cpcity Issues (2007) Current Level Service Below Cpcity Ner Cpcity Below At Cpcity Cpcity Ner Above Cpcity Cpcity Sce: Texs Trnsporttion Institute; FHA, Ntionl Ril Freight Infrstructure Cpcity nd Investment Study 9

11 Given se fvorble trends, why didn t ril g shre? 10

12 AGENDA Bckground Norbridge Study Approch Summry Fdgs Intermodl Growth Inhibirs Crlod Growth Inhibirs 11

13 To nswer th question, we terviewed 40 mjor trnsporttion buyers Industry Representtion Logtics Bulk Provider Products 5% 8% Retil 13% Mnufcturer 47% Food Producer 13% Interview Scope Domestic Domestic tr-north tr-north Americ Americ shipments shipments Shipments Shipments >250 >250 miles miles Shipments Shipments tht tht could could be be potentilly potentilly shipped shipped dry dry vn vn or or fltbed fltbed truck truck Cusmers Cusmers with with scle scle nd nd volume volume required required ship ship trucklod trucklod quntities quntities Interviews Interviews were were conducted conducted from from Ocber Ocber through through December December CPG 14% Totl: 40 Interviews 12

14 Interviewees were compred mix ril users nd nonusers Interviewee Modl Usge Hve you used ril (termodl or crlod) service recently? Intermodl Non- User 28% Intermodl User 72% Crlod Non- User 72% Crlod User 28% Totl: 40 Interviews 13

15 We terviewed shippers regrdg three sets sues Issue Supply Ch Modl Decions Ril Growth Inhibirs Opportunity Increse Crlod or Intermodl Detil Recent chnges modl mix nd dtribution network The resons those chnges Inhibirs significnt termodl growth Inhibirs significnt ril crlod growth Potentil opportunity modl shift wrds ril termodl or crlod if sues were resolved 14

16 AGENDA Bckground Norbridge Study Approch Summry Fdgs Intermodl Growth Inhibirs Crlod Growth Inhibirs 15

17 Ril service ws considered mjor hibir growth, if not primry hibir, cross ll survey segments Interviewee Responses Interviewee Mentions Ril Service s n Inhibir Incresed Ril Usge 100% 80% 76% 73% 60% 55% 48% 40% 20% 0% Intermodl Users Intermodl Non- Users Crlod Users Crlod Non- Users Note: Service sues clude trnsit time nd relibility 16

18 Price ws lso fcr limitg dditionl use ril extg crlod nd termodl users, but ws not mjor brrier non-users convert eir service Interviewee Responses Interviewee Mentions Price s n Inhibir Incresed Ril Usge 100% 80% 60% 55% 45% 40% 20% 9% 14% 0% Intermodl Users Intermodl Non- Users Crlod Users Crlod Non- Users 17

19 Ril product mlignment with buyer supply ch processes nd systems ws ledg hibir non-users beg usg crlod or termodl Interviewee Responses Interviewee Mentions Supply Ch Processes/Systems s n Inhibir Incresed Ril Usge 100% 80% 82% 60% 45% 40% 24% 27% 20% 0% Intermodl Users Intermodl Non- Users Crlod Users Crlod Non- Users 18

20 Rk product dmge nd ese dog busess were reltively low hibirs cresed ril use Interviewee Responses Interviewee Mentions Dmge s n Inhibir Incresed Ril Usge Interviewee Mentions Ese Dog Busess s n Inhibir Incresed Ril Usge 100% 100% 80% 80% 60% 60% 40% 40% 27% 20% 18% 17% 20% 21% 18% 18% 10% 10% 0% Intermodl Users Intermodl Non-Users Crlod Users Crlod Non- Users 0% Intermodl Users Intermodl Non-Users Crlod Users Crlod Non- Users 19

21 AGENDA Bckground Norbridge Study Approch Summry Fdgs Intermodl Growth Inhibirs Crlod Growth Inhibirs 20

22 Interviewees tht trditionlly shipped termodl cresed ir usge s fuel prices rose Modl Usge Hve you used termodl (IML) service recently? Modl Usge Hve you mde ny chnges y modl mix? Interviewee Opions Fuel Fuel prices prices cresed cresed tl tl delivered delivered cost cost truck truck reltive reltive ril ril IML Non- User, 11, 28% IML User, 29, 72% IML TL No Shift TL IML Of 21 terviewees shift from trucklod termodl 20 sid tht impct fuel on tl delivered cost plyed role 7 stted tht limited truck cpcity lso plyed role Not Not only only hve hve fuel fuel prices prices cresed cresed cost cost trucklod, trucklod, but but some some crriers crriers now now refuse refuse lods lods tht tht y y never never refused refused bee bee order order void void empty empty miles miles The The comg comg (trucklod) (trucklod) cpcity cpcity srm srm ledg ledg us us diversify diversify modl modl options options Note: Trucklod (TL) nd Intermodl (IML) 21

23 However, termodl ttrcted few new shippers s fuel prices cresed Modl Usge Hve you used termodl (IML) service recently? Modl Usge Number termodl users tht mentioned first usg termodl lst two yers IML Non- User, 11, 28% New IML User 2 IML User, 29, 72% Trditionl IML User Note: Intermodl (IML) 22

24 For extg termodl users, service qulity nd price were biggest hibirs furr cresg termodl shre Interviewee Responses Wht re m hibirs shiftg significnt volume termodl? Number Mentions* 29 Intermodl Users 100% Service 80% 76% Price Supply Ch Processes/ Systems 60% 55% No ferg by 3PL or or providers 40% 38% Ese dog busess Or 20% 24% 21% 21% 10% Dmge 0% *Ordered by tl mentions by users nd non-users Intermodl Users 23

25 For termodl non-users, fit with supply ch processes/ systems, nd service were biggest termodl hibirs Interviewee Responses Wht re m hibirs shiftg significnt volume termodl? Number Mentions* 11 Intermodl Non-Users 100% Service 80% 73% 82% Price Supply Ch Processes/ Systems 60% No ferg by 3PL or or providers 40% Ese dog busess Or 20% 18% 18% 18% Dmge 9% 9% 0% *Ordered by tl mentions by users nd non-users Intermodl Non-Users 24

26 75% terviewees mentioned service qulity s n hibir cresg termodl shre Interviewee Responses Wht re m hibirs shiftg significnt volume termodl? Mentions Service Qulity Mentioned (Intermodl Non-User) Mentioned (Intermodl User) Primry Secondry Not Mentioned terviewees mentioned service s n hibir Some felt tht th ws more perception thn relity Ors were genuely dstfied with service Mny terviewees tht cited service s n hibir qulified ir response by sttg tht price ws most significnt brrier t shorter lengths hul, service t longer lengths hul 7 Interviewee Opions Inconstent Inconstent termodl termodl service service ffects ffects tl tl cost cost nlys nlys when when mkg mkg modl modl decions. decions. It It impcts impcts cost cost holdg holdg venry, venry, puttg puttg termodl termodl on on losg losg side side mny mny bttles bttles The The Just-In-Time Just-In-Time model model o o gred. gred. Both Both trnsit trnsit time time nd nd relibility relibility would would need need be be essentilly essentilly equivlent equivlent truck. truck. Door--door Door--door product product needs needs be be on on time not time not lte, lte, but but lso lso not not erly erly Intermodl Intermodl boxes boxes frequently frequently rrive rrive hs hs fter fter ir ir scheduled scheduled rrivl rrivl time. time. Th Th uncceptble uncceptble most most shippers shippers My My on-time on-time percentge percentge termodl termodl rnges rnges from from 70% 70% 92% 92% vs. vs. trucklod trucklod t t 95-99% 95-99% 25

27 Relibility considered more significnt hibir thn trnsit time Interviewee Responses Is Relibility or Trnsit Time More Importnt? Number Mentions Equl 21% Trnsit Time More Importnt Thn Relibility 11% Relibility More Importnt Thn Trnsit Time 68% Comments 87% 87% respondents respondents with with stted stted preference preference trnsit trnsit time time or or relibility relibility (13 (13 15) 15) felt felt tht tht relibility relibility ws ws more more significnt significnt hibir hibir termodl termodl thn thn trnsit trnsit time time 93% 93% terviewees terviewees queried queried (14 (14 15) 15) felt felt tht tht if if re re were were gurnteed gurnteed service service option, option, termodl termodl would would be be more more ttrctive ttrctive even even if if trnsit trnsit times times were were dy dy or or two two slower slower 26

28 Intermodl users ten view price s n hibir cresg shre, but price not mjor brrier termodl non-users Interviewee Responses Wht re m hibirs shiftg significnt volume termodl? Mentions Price Mentioned (Intermodl Non-User) Mentioned (Intermodl User) Primry Secondry Not Mentioned Price ws only mentioned by one non-termodl user, nd s secondry hibir use. Supply ch sues my mke price moot pot Price ws frequently mentioned mong termodl users s n hibir shiftg volume moves miles Price ws not mjor hibir on extg termodl longer-hul lnes 13 Interviewee Opions We We don t don t relly relly even even consider consider termodl termodl t t dtnces dtnces less less thn thn miles miles Even Even some some longer longer hul hul lnes, lnes, tl tl delivered delivered cost cost priority priority termodl termodl trs trs exceeds exceeds tht tht trucklod trucklod If If re re were were more more ril ril rmps rmps where where we we need need m, m, length length hul hul required required price price prity prity with with trucklod trucklod could could decrese decrese from from round round miles miles 27

29 Supply ch processes or systems re mjor brrier shippers tht do not currently use termodl Interviewee Responses Wht re m hibirs shiftg significnt volume termodl? Mentions Supply Ch Processes/Systems Mentioned (Intermodl Non-User) Mentioned (Intermodl User) Primry Secondry Not Mentioned Supply Ch Processes: There perception mong some shippers tht big trucklod volumes re required justify termodl Network Design: Some supply ch networks were designed wy tht mkes ril network n fterthought Supply Ch Systems: Network design models do not tke ril ccount Interviewee Opions I I need need flexibility flexibility re-route re-route trnsit trnsit We We built built D.C. D.C. network network round round highwy highwy system. system. Intermodl Intermodl terml terml loctions loctions were were not not even even corported corported network network design design technology technology ol ol Becuse Becuse smll smll order order quntities, quntities, termodl termodl n t n t even even considered considered most most lnes lnes Cusmers Cusmers re re regionlizg regionlizg freight, freight, limitg limitg termodl termodl opportunities opportunities 28

30 A lck termodl fergs some lnes does not prevent shippers from usg termodl, but it does limit growth Interviewee Responses Wht re m hibirs shiftg significnt volume termodl? Mentions Lck Intermodl Offerg Mentioned (Intermodl Non-User) Mentioned (Intermodl User) Primry Secondry Not Mentioned Intermodl users mentioned th sue more frequently thn non-users Some termodl users stte tht re re lnes which termodl not fered, generlly due lck reltic termls Some non-users termodl hve not been fered n termodl product 18 Interviewee Opions Intermodl Intermodl rmps rmps re re wy wy o o fr fr wy wy service service be be vible vible Even Even if if re re might might be be termodl termodl service service given given lne, lne, 3PL 3PL does does not not even even present present us us with with ril ril lterntives. lterntives. I I cn t cn t mke mke decion decion switch switch wy wy from from sttus sttus quo quo if if I I m m not not wre wre ll ll my my options options No No one one hs hs ever ever tried tried sell sell me me n n termodl termodl product product In In mny mny shorter shorter hul hul lnes, lnes, termodl termodl service service n t n t fered fered I I cn cn only only ccess ccess RodRiler RodRiler select select lnes. lnes. I I wh wh it it were were fered fered more more 29

31 Ese dog busess with termodl providers ws not cited s mjor brrier by most shippers Interviewee Responses Wht re m hibirs shiftg significnt volume termodl? Mentions Ese Dog Busess Mentioned (Intermodl Non-User) Mentioned (Intermodl User) Primry Secondry Not Mentioned Only 8 40 terviewees mentioned negtive experiences or perceptions termodl providers s n hibir usg more termodl However, those tht fd termodl service providers difficult work with held strong opions Interviewee Opions Some Some opions opions were were positive positive Intermodl Intermodl Mrketg Mrketg Compnies Compnies hve hve good good cusmer cusmer service service Ors Ors were were dtctly dtctly not not How How bout bout prtnership, prtnership, where where y y ctully ctully consider consider needs needs shipper? shipper? The The reltionship reltionship needs needs be be two-wy two-wy street street The The IMCs IMCs seem seem thk thk Cusmers Cusmers ren t ren t syg syg we re we re uncceptble, uncceptble, so so we we must must be be dog dog OK OK Truckg Truckg compnies compnies re re more more collbortive collbortive nd nd much much more more willg willg vest vest reltionship reltionship 30

32 Dmge sues were not mjor hibir termodl use Interviewee Responses Wht re m hibirs shiftg significnt volume termodl? Mentions Ese Dog Busess Mentioned (Intermodl Non-User) Mentioned (Intermodl User) Primry Secondry Not Mentioned Interviewee Opions Regrdless Regrdless ctul ctul permnce, permnce, reputtion reputtion bd bd product product dmge dmge Our Our product product high high vlue, vlue, so so it it not not worth worth rk rk dmge dmge Dmge ws mentioned only 5 times by terviewees s n hibir shift wrds termodl For ech mention, it ws not cited s primry hibir 31

33 If non-price relted sues were resolved, termodl users suggest y could shift n verge 28% ir trucklod volume termodl 2 Responses t 0% Interviewee Responses If se problems were overcome, how much y trucklod volume (>250 miles; domestic; dry vn or fltbed) might you shift termodl? Averge: 27.8% Med: 17.5% 0% 20% 40% 60% 80% 100% Note: If rnge ws given (e.g %), midpot rnge ws used (17.5%) Note 2: Five termodl users did not respond th question 32

34 If non-price relted sues were resolved, termodl nonusers suggest y could shift n verge 13% ir trucklod volume termodl Interviewee Responses If se problems were overcome, how much y trucklod volume (>250 miles; domestic; dry vn or fltbed) might you shift termodl? 4 Responses t 0% Averge: 12.8% Med: 3.8% 0% 20% 40% 60% 80% 100% Note: If rnge ws given (e.g %), midpot rnge ws used (17.5%) Note 2: Three termodl non-users did not respond th question 33

35 AGENDA Bckground Norbridge Study Approch Summry Fdgs Intermodl Growth Inhibirs Crlod Growth Inhibirs 34

36 Ril crlod did not g shre s shift wrds crlod roughly equled shift wy from crlod Modl Usge Hve you used crlod service recently? Modl Usge Hve you mde ny chnges y modl mix? No Shift 4 Comments Two Two three three terviewees terviewees tht tht shifted shifted wrds wrds ril ril crlod crlod mde mde shift shift s s prt prt broder broder shift shift wrds wrds ril, ril, prticulrly prticulrly termodl termodl Crlod Non- User, 29, 72% Crlod User, 11, 28% Crlod IML or TL TL Crlod Those Those sme sme terviewees terviewees stted stted tht tht fuel fuel drove drove shift shift wrds wrds termodl termodl nd nd crlod crlod Not Not one one shipper shipper moved moved crlod crlod first first time time 3 4 terviewees tht shifted wy from crlod did so due n crese ril bse freight rtes Note: Trucklod (TL) nd Intermodl (IML) 35

37 For crlod users, service nd price were ledg hibirs cresg crlod shre Interviewee Responses Wht re m hibirs shiftg significnt volume crlod? Number Mentions* 11 Crlod Users 100% Service 80% Price Supply Ch Processes/Systems 60% 55% Lck Defed Product 40% 45% 45% Ese dog busess Or 20% 27% 18% 27% Dmge 9% 0% Crlod Users *Ordered by tl mentions by users nd non-users Note: Or cludes lck purchsg control nd bsence ril service 36

38 For crlod non-users, service nd fit with supply ch processes/systems were viewed s biggest hibirs Interviewee Responses Wht re m hibirs shiftg significnt volume crlod? Number Mentions* 29 Crlod Non-Users 100% Service 80% Price Supply Ch Processes/Systems 60% 40% 48% 45% Lck Defed Product Ese dog busess Or 20% 14% 21% 10% 24% 17% Dmge 0% Crlod Non-Users *Ordered by tl mentions by users nd non-users Note: Or cludes lck purchsg control nd bsence ril service 37

39 Most crlod non-users stted tht y hve never considered ril crlod s potentil trnsport option Interviewee Opions Ril Ril crlod relly relly n t n t on on my my rdr rdr screen I I hve hve never never thought ril ril crlod s s relevnt ( ( product) so so I I don t don t relly relly hve hve much much sight sight costs costs nd nd benefits usg usg ril ril crlod No No one one hs hs ever ever educted me me on on crlod product I I don t don t know know wht wht crlod options re re even even vilble us. us. Not Not once once hs hs my my 3PL, 3PL, n n IMC, IMC, or or rilrod come come me me with with crlod lterntive Intermodl does does not not work work us, us, so so crlod defitely does does not not I I neir know know nor nor cre cre bout bout opportunities shift shift wrds crlod Even Even termodl pushg limit limit on on trnsit trnsit times times 38

40 Both users nd non-users perceive tht slow nd unrelible service ril crlod mkes it suitble only low-vlue bulk commodities Interviewee Responses Wht re m hibirs shiftg significnt volume crlod? Mentions Service Qulity Mentioned (Crlod Non- User) Mentioned (Crlod User) Primry Secondry Not Mentioned Mny crlod non-users were unsure exct trnsit time y should expect from ril crlod, but were cert tht it would not be fst or relible enough merit serious considertion Service ws mjor hibir both non-users nd crlod users Interviewee Opions I I don t don t know know nyone nyone not not commodity commodity busess busess tht tht cn cn justify justify dy dy trnsit trnsit time, time, which which wht wht you you hve hve expect expect crlod crlod Ril Ril crlod crlod service service my my not not be be quite quite s s bd bd nymore nymore s s people people remember remember from from few few yers yers bck, bck, but but rilrods rilrods sure sure hven t hven t done done much much convce convce me me or or ors ors tht tht y y cn cn be be counted counted on on Poor Poor relibility relibility hs hs two-fold two-fold impct impct on on cost: cost: venry venry cost cost res res nd nd we we need need expedited expedited truck truck service service cover cover service service filgs filgs 39

41 Crlod comptibility with supply ch processes nd systems ws gretest hibir non-users Interviewee Responses Wht re m hibirs shiftg significnt volume crlod? Mentions Supply Ch Processes/Systems Mentioned (Crlod Non- User) Mentioned (Crlod User) Primry Secondry Not Mentioned non-users dicted tht ril crlod does not fit ir supply ch processes nd or systems Interviewee Opions Our Our order order sizes sizes re re not not big big enough enough crlod crlod We We just just redesigned redesigned DC DC network, network, fter fter tryg tryg out out different different technology technology solutions. solutions. Not Not sgle sgle one one m m considered considered ril ril network network or or ril ril termls termls when when optimizg optimizg network network yers yers go, go, DCs DCs were were primrily primrily built built ner ner ports ports nd nd ril. ril. Th Th no no longer longer cse cse Crlod Crlod not not n n option option plletized plletized freight freight There There no no wy wy put put crlod crlod TMS TMS system system 40

42 Rtes re considered growth brrier current crlod users, but not non-users Interviewee Responses Wht re m hibirs shiftg significnt volume crlod? Mentions Price Mentioned (Crlod Non- User) Mentioned (Crlod User) Primry Secondry Not Mentioned Severl terviewees tht shifted from crlod termodl or trucklod cited price s ir primry reson switchg modes Non-users generlly do not perceive n sue, ten becuse re re or brriers tht prevent m from obtg price quotes Interviewee Opions Rilrods Rilrods hve hve been been cresg cresg prices prices 5-12% 5-12% nnully nnully pot pot tht tht boxcr boxcr now now more more expensive expensive thn thn eir eir termodl termodl or or trucklod trucklod on on weight weight bs bs Their Their pricg pricg suggests suggests y y don t don t even even wnt wnt lrge lrge crlod crlod volumes n volumes n y y ct ct surpred surpred when when we we pull pull volume volume The The rilrods rilrods re re usg usg ir ir pricg pricg power power tht tht m m reson reson we we hve hve not not shifted shifted more more ril ril crlod crlod Rilrods Rilrods re re dog dog everythg everythg possible possible mximize mximize mrgs mrgs 41

43 Dmge nd ese dog busess with rilrods were not considered mjor hibirs use crlod Interviewee Responses Mentions Or Fcrs s Inhibir Shift Towrds Crlod Ese Dog Busess with Rilrods Dmge Not Ril Served Crlod Non-User Crlod User Interviewee Opions Cusmer Cusmer DCs DCs don t don t hve hve ril ril sidgs, sidgs, so so outbound outbound crlod crlod non-option non-option Consumer Consumer products products require require creful creful rk rk nlys nlys crlod crlod usully usully doesn t doesn t meet meet stndrd stndrd Dmge Dmge significntly significntly worse worse crlod crlod The The cusmer cusmer controls controls trnsporttion, trnsporttion, nd nd ir ir JIT JIT model model prohibits prohibits crlod. crlod. Cusmers Cusmers don t don t ccept ccept venry venry until until y y hve hve,, nd nd employee employee metrics metrics re re bsed bsed on on meetg meetg JIT JIT gols. gols. I I don t don t see see th th system system chngg chngg Extensive Extensive pckgg pckgg nlys nlys necessry necessry secure secure product product rilcr. rilcr. We We hve hve vest vest money money nd nd time time slower slower service service nd nd miml miml svgs not svgs not much much vlue vlue proposition proposition 42

44 If non-price relted sues were resolved, crlod users suggest y could shift n verge 18% ir trucklod volume crlod 1 Response t 0% Interviewee Responses If se problems were overcome, how much y trucklod volume (>250 miles; domestic; dry vn or fltbed) might you shift crlod? Averge: 17.9% Med: 11.3% 0% 20% 40% 60% 80% 100% Note: If rnge ws given (e.g %), midpot rnge ws used (17.5%) Note 2: Five crlod users did not respond th question 43

45 If non-price relted sues were resolved, crlod non-users suggest y could shift n verge 6.6% ir trucklod volume crlod Interviewee Responses If se problems were overcome, how much y trucklod volume (>250 miles; domestic; dry vn or fltbed) might you shift crlod? 14 Responses t 0% Averge: 6.6% Med: 0% A lrge number crlod nonusers buyers cnnot envion usg crlod Of 4 non-users (22%) tht sid y could mke shift, verge shift ws 29% nd med ws 6% 0% 20% 40% 60% 80% 100% Note: If rnge ws given (e.g %), midpot rnge ws used (17.5%) Note 2: 11 crlod non-users did not respond th question 44

46 Lee Clir Prtner Norbridge, Inc. 570 Lke Cook Rd., Suite 301 Deerfield, IL (847)