Transportation & Logistics Council 2017 Annual Convention March 20, 2017

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1 Transportation & Logistics Council 2017 Annual Convention March 20, 2017 Kevin W. Burch President, Jet Express, Inc. Chairman, American Trucking Associations

2 U.S. TRUCKING SNAPSHOT 7.3 Million Strong 1 out of 16 People in US work in Trucking 3.5 Million Professional Truck Drivers Trucking is #1 Career in 29 States Trucking invests $9.5 Billion Annually on Safety Drove Billion Miles in 2014 more than double 25 Years Ago 97.3% of all Motor Carriers have 20 Trucks OR LESS 90.6% of all Motor Carriers have 6 Trucks OR LESS ATA represents over 1.4 million tractors

3 U.S. TRUCKING SNAPSHOT TRUCKING PAYS OUR FAIR SHARE Hauled Billion Tons of Freight in or 70.1 % of Total U.S Freight Rail was Next Busiest Mode Moving 13.8 % of the Nation s Freight Tonnage in 2015 Astounding $726.4 Billion Industry in 2015 Representing 81.5 % of the Nation s Freight Bill in 2015 $39.9 billion in federal and state highway taxes in % of vehicles on the road in billion in gross freight revenues representing 81.4% of the nation s freight bill $18.4 billion in federal highway-user taxes in 2014 $21.6 billion in state highway-user taxes in billion gallons of diesel = $105.2 billion in 2015

4 ATA VICTORIES 2016 & 2017 HIGHLIGHTS: HOS Permanent Restart Fix National Clearinghouse for Drug & Alcohol ATA Filed Comments on Speed Limiter Proposal Overtime Rule Blocked New York Thruway Decision Use Highway Trust Fund $ for Highways & Bridges Use of TWIC Card to Enter Military Bases FMCSA Determined CDL Domicile Issue

5 2016 TOP INDUSTRY ISSUES 1. ELD Mandate 2. Hours-of-Service 3. Cumulative Economic Impact of Trucking Regulations 4. Truck Parking 5. Economy 6. CSA 7. Driver Shortage 8. Driver Retention 9. Transportation Infrastructure/ Congestion/ Funding 10. Driver Distraction

6 Top Issues Drivers vs. Carriers Commercial Drivers 1.ELD Mandate 2.Hours-of-Service 3.Truck Parking 4.Cumulative Economic Impact of Trucking Regulations 5.Economy 6.CSA 7.Driver Retention 8.Sleep Apnea Rulemaking 9.FMCSA Mission 10.Driver Health/Wellness Motor Carrier Execs 1.Driver Shortage 2.ELD Mandate 3.Cumulative Economic Impact of Trucking Regulations 4.Economy 5.Hours-of-Service 6.Driver Retention 7.CSA 8.Transportation Infrastructure/ Congestion/ Funding 9.Federal Preemption of State Regulation of Interstate Trucking (F4A) 10.Driver Distraction

7 INFRASTRUCTURE FUNDING TASK FORCE President Trump s 10 Year - $1 Trillion Funding Plan ATA SETTING THE AGENDA Task Force Members: David Congdon, Old Dominion Co-Chair Jim Burg, James Burg Trucking Co-Chair Kevin Burch, Jet Express and ATA Chairman Mike Ducker, FedEx Freight Eric Fuller, U.S. Xpress Neal Kedzie, Wisconsin Motor Carriers Assn. Rich McArdle, UPS Freight Dennis Nash, Kenan Advantage Group Tonn Ostergard, Crete Carriers John Smith, CRST Paul Will, Celadon Task Force Information: Began in December re: Trump 100 Day Plan Active CEO Level ATA met with Trump Transition starting in July Task Force Regular Meetings Transportation Secretary Elaine Chao House and Senate Committee Leaders Next Meeting: House and Senate Leadership Federal Agencies White House

8 COST OF UNDERINVESTMENT Congestion on U.S. National Highway System cost the trucking industry $49.6B in 2014 Lost productivity due to congestion= 728 million hours Equates to 264,500 commercial drivers sitting idle for entire year Source: ATRI

9 COST OF UNDERINVESTMENT A motorist loses on average $523 annually - $112 billion nationally - in vehicle repair costs due to unmaintained roads (pot holes) 15,000 people are killed and nearly one million people are injured when vehicles run off the road and crash. Source: ATRI 88% of National Highway System (NHS) congestion occurs on just 18% of the network and can be solved by eliminating major bottlenecks

10 Rank Top 10 Freight Bottlenecks New Bottlenecks Release Next Week Location Atlanta, GA: I-285 at I-85 (North) Average Speed 2015 Rank Change Fort Lee, NJ: I-95 at SR Up Chicago, IL: I-290 at I- 90/I-94 Louisville, KY: I-65 at I- 64/I Down Cincinnati, OH: I-71 at I Up 2 6 Los Angeles, CA: SR 60 at SR Up 3 7 Auburn, WA: SR 18 at SR Up 10 8 Houston, TX: I-45 at US Atlanta, GA: I-75 at I-285 (North) Up 3 10 Seattle, WA: I-5 at I Up 4

11 WORKFORCE SHORTAGES U.S. TRUCK DRIVERS NEEDED 2015 = Reached 48, = Could Increase to 175,000 Average Salary: $40,000 U.S. TECHNICIANS NEEDED 2016 = Reached 20, = 142,000 Needed Average Salary: $67,000 WORLDWIDE SHORTAGE U.S. is not alone when struggling with driver shortage issues. Countries like Canada, England, Japan, Germany, Brazil, Australia are finding their drivers are aging, overwhelmingly male, with one in five drivers at retirement age. Women make up less than 3% of workforce.

12 NEW DRIVERS NEEDED BY REASON 9% 12% 34% 45% Over the next decade, the trucking industry will need to hire a total 890,000 new drivers, or an average of 89,000 per year. Source: ATA s Truck Driver Shortage Analysis 2015

13 GENDER STATISTICS Truck Drivers All US Workers 6% 47% 53% 94% Male Female Male Female Source: Bureau of Labor Statistics

14 AUTONOMOUS VEHICLES TRUCKING IS AT THE TABLE ATA ON DOT ADVISORY BOARD NHTSA ISSUED FIRST FEDERAL GUIDELINES DRIVER WILL ALWAYS BE NEEDED AIRPLANE SEAT 24C

15 THANK YOU Kevin Burch

SOUTH CAROLINA TRUCKING ASSOCIATION

SOUTH CAROLINA TRUCKING ASSOCIATION 1 1 SOUTH CAROLINA TRUCKING ASSOCIATION Dave Manning Chairman, ATA President, TCW HURRICANE IRMA TRUCK ACTIVITY 1 HURRICANE IRMA TRUCK ACTIVITY HURRICANE IRMA TRUCK ACTIVITY 2 HURRICANE IRMA TRUCK ACTIVITY

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