Intermodal Market Trends & Statistics

Intermodal Market Trends & Statistics Intermodal Market Trends & Statistics Quarterly Analysis of Industry Activities Intermodal Volumes Fall 6.1% in Q2 Container Performance Impacted by International Shipments Second Quarter 2016 Rail Volume Results After twenty-five consecutive quarters of growth, total intermodal volumes recorded a decline in Q2 of this year of 6.1%. Certainly, growth was dragged down by the poor performance of trailers, which dropped 28.6% in the quarter. However even excluding trailers, intermodal volumes would have slipped 3.9%. The sharp decline in trailers was somewhat expected. Late last year, Triple Crown announced that they would be restructuring their RoadRailer service. Indeed, the greatest declines in trailer volumes have happened in regions that have a sizeable RoadRailer presence. Specifically, trailer declines in the Northeast, South Central, Southeast and Eastern Canada regions have all been greater than 30.0%. In contrast, the decline across the Northwest, Southwest and Western Canada regions was just 11.6%. Still, every region recorded a decline in trailer volumes in Q2, so not all of the decline can be placed on the restructuring of Roadrailer. Trailer volumes started to fall in Q4 of 2015 and losses have accelerated through Q2. Because the RoadRailer traffic is not expected to come back, deep declines in trailers will most likely continue into Q3. Losses should be noticeably smaller starting in Q4, but only because year-ago comparisons will be much weaker by that point. While the deterioration in trailers was expected, the sharp pull-back in international loads came as somewhat of a surprise. Total international volumes dropped 9.3% in Q2. This segment has been more uneven than overall intermodal growth. InterSecond Quarter 2016 IANA 2016 Second Quarter Totals 2015 Trailers 2016 Change 407,558 291,065-28.6% Domestic Containers 1,767,806 1,827,851 3.4% All Domestic Equipment 2,175,364 2,118,916-2.6% ISO Containers 2,371,924 2,152,246-9.3% Total 4,547,288 4,271,162-6.1% Year to Date 2016 2015 Trailers 2016 Change 816,771 600,382-26.5% Domestic Containers 3,429,303 3,594,857 4.8% All Domestic Equipment 4,246,074 4,195,239-1.2% ISO Containers 4,376,551 4,232,922-3.3% Total 8,622,625 8,428,161-2.3% Second Quarter Equipment Loading Trends 28' Trailers/Containers 69,376 57,021 2Q 15-16 Growth -17.8% 40/45' Trailers 29,320 23,793-18.9% 0.6% 48/53' Trailers 309,432 210,390-32.0% 4.9% 20/40/45' Containers 2,371,924 2,152,246-9.3% 50.4% 48/53' Containers 1,767,236 1,827,712 3.4% 42.8% Total 4,547,288 4,271,162-6.1% 100.0% Equipment Size/Type 2Q15 national volumes have declined as recently as Q4 of last year, however Q2 s decline was significantly larger than in any quarter since Q4 of 2009. 2Q16 2Q 16 Share 1.3% The recent decline in international volumes is also a bit confusing. International intermodal tends to track with overall container import growth. 1

Yet, container imports didn t do nearly as poorly as international loadings in Q2. Although data for Mexico and Canada is not yet available, initial data suggests that U.S. container imports gained 0.2% in Q2. There were substantial variations across all regions. In the Southwest, container imports gained 1.7%, while international volumes plummeted 13.3%. In the Southeast, container imports rose a scant 0.1%, but international fell 6.5%. At this point it is not clear what s behind the weakness in international volumes. It could be that high inventory levels are encouraging shippers to store goods at the coasts before shipping them inland. There is also some evidence that increased transloading may be pushing freight to domestic containers. Domestic containers were the only bright spot in a dismal Q2 gaining 3.4% over the quarter. Nearly every region posted growth in domestic containers with the only two exceptions being the Northeast and South Central regions. In fact, in general, domestic containers did much better in the West than in the East. Across Western Canada, the Northwest and the Southwest, domestic containers gained 6.1%, while across Eastern Canada, the Northeast and the Southeast, domestic container volumes advanced just 1.2%. It may be the case that in the East, domestic containers are facing greater competition from trucking due to the fact that distances tend to be shorter in the East. Key Corridor Results Second Quarter 2015 2016 Equipment Trends 0 1,000 2,000 3,000 4,000 5,000 Thousand Units 28' Trailers/Containers 40/45' Trailers 48/53' Trailers 48/53' Containers 20/40/45' Containers 2015 2016 Units Second Quarter 2015 2016 Comparisons All Domestic Equipment ISO Containers 4,400,000 4,350,000 4,300,000 4,250,000 4,200,000 4,150,000 4,100,000 2015 2016 Second Quarter 2015 2016 Corridor Growth The Corridor Growth graph shows bi-directional activity for the seven largest volume corridors. These high density lanes accounted for 63.3% of total volume and decreased by 5.9% over the quarter. All seven corridors experienced losses. For the most part, those losses were less than 5.0%, but reached 17.6% in the South Central-Southwest lane. The Northeast-Midwest, Southeast-Southwest, and intra-southeast corridors all experienced downturns under 3.0%. The Southeast-Southwest corridor had the best performance, with shipments declining only Units MW-SW NE-MW SC-SW EC-WC MW-NW SE-SW SE-SE 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000-5.5% -1.6% -17.6% -4.2% -4.1% -1.5% -2.9% 2Q15 2Q16 Second Quarter 2016 IANA 2016 2

1.5%. Trailers bore the brunt of the downturns, with a -25.3% year-over-year difference. Containers only fell by 1.0%, and actually increased in the Southwest-Southeast direction by 5.7%. Because container volumes are so much higher than trailer volumes, the decrease in containers was enough to somewhat offset the large contraction in trailer shipments. The Northeast-Midwest lane similarly fell by 1.6%. Again, major losses in trailers were offset by gains in containers. While trailer use shrunk 39.5%, containers gained 4.9%. Trailer volume was substantial enough in the Northeast-Midwest direction to pull overall growth down 3.8%, in spite of 2.9% growth in containers. In the Midwest-Northeast direction, however, container volume grew 6.7% and the corridor experienced 0.4% growth. The intra-southeast corridor shrunk by 2.9%. While trailers fell by 15.8%, containers only decreased by 1.0%. The Midwest-Northwest corridor experienced consistent losses in both directions, with Midwest- Northwest shipments lessening 5.2% and Northwest-Midwest shrinking 3.2%. Containers fell 4.3%, more than the 1.7% loss in trailers. Overall, losses were 4.1% for the lane. Eastern-Western Canada losses nearly matched those of the Midwest-Northwest lane, at 4.2%. Containers, which made up the vast majority of traffic, lost 4.2% of volume. Trailers were negligible in this corridor. The Midwest-Southwest lane lost 8.6% of trailer volume and 5.2% of container volume, bringing overall declines to 5.5%. Losses were also smaller in the eastbound direction, losing 3.4% of container volume and 6.8% of trailer volume. In the opposite direction, trailers shrank 10.3% and containers, 6.9%. The South Central-Southwest corridor dropped by 17.6%, the most dramatic loss in volume. Both con- Second Quarter Regional Traffic Growth 2Q15 2Q16 2Q 15-16 Units Share Units Share Growth Eastern Canada (EC) 318,687 8% 300,121 8% -5.8% Mountain Central (MC) 58,444 1% 52,850 1% -9.6% Midwest (MW) 1,223,481 29% 1,154,683 29% -5.6% Mexico (MX) 155,191 4% 152,726 4% -1.6% Northeast (NE) 423,889 10% 401,508 10% -5.3% Northwest (NW) 194,194 5% 188,667 5% -2.8% South Central (SC) 366,054 9% 311,633 8% -14.9% Southeast (SE) 594,027 14% 561,722 14% -5.4% Southwest (SW) 862,999 21% 808,706 21% -6.3% Western Canada (WC) 350,322 8% 338,546 9% -3.4% Seasonally Adjusted Volume Trends SA INTERNATIONAL INTERNATIONAL SA DOMESTIC DOMESTIC 2,500,000 2,400,000 2,300,000 2,200,000 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 Mexico Intermodal Originations by Market INTERNATIONAL DOMESTIC 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 13Q2 13Q4 14Q2 14Q4 15Q2 15Q4 16Q2 Second Quarter 2016 IANA 2016 3

tainers and trailers experienced double digit declines. Westbound containers in this lane fell 19.7%. Trailers were not far behind, with a 17.1% decrease in volume. Because container volume is greater than trailer volume in that lane, it brought the average down to 19.6%. In contrast, shipments in the Southwest-South Central direction fell 15.8%. Seasonally Adjusted Intermodal Volume Seasonal adjustment removes the normal seasonal variations in the data to focus on underlying quarter-to-quarter growth trends. Domestic and international volumes both fell from Q1 to Q2 on a seasonally adjusted basis. Domestic shipments shrunk 2.5% after rising 0.3% in the previous quarter. International volumes logged a much more substantial decline of 5.8%. International traffic tends to be much more volatile than its domestic counterpart it rose 3.0% in Q1 of 2016, after falling more than two percentage points in the second half of 2015. Regional Traffic Results Every one of IANA s regions saw a decline in intermodal volumes in the Q2. Generally speaking, the regions with a greater exposure to trailer shipments saw a larger over decline in volumes. For example, Mexico saw the smallest decline in intermodal volumes of any region, -1.6%, but it also has the smallest exposure to trailers 0.1% of all shipments in that region are of trailers. In contrast, 20.3% of shipments originating from the Mountain Central region are trailers and that region saw the second largest fall in shipments. The Northwest, Western Canada and Mexico regions saw the smallest drops in overall intermodal volumes. All of these regions benefited from a relatively small exposure to the downturn in trailers. In both Mexico and Western Canada, trailers make up less than 1% of intermodal shipments. The share of intermodal shipments from the Northwest that IMC Market Trends 2nd Qtr. 2016 vs. 2015 2nd Quarter 2015 2nd Quarter 2016 Pct. Change Intermodal Loads 499,431 408,868-18.1% Highway Loads 369,435 432,239 17.0% Total Loads 868,866 841,107-3.2% Intermodal Revenue $ 1,146,379,385 $ 1,044,624,006-8.9% Highway Revenue $ 569,897,262 $ 591,722,060 3.8% Total Revenue $ 1,716,276,647 $ 1,636,346,066-4.7% Average per Intermodal Load $ 2,295 $ 2,555 11.3% Average per Highway Load $ 1,543 $ 1,369-11.3% IMC Market Trends 2nd Qtr. 2016 vs. 1st Qtr. 2016 1st Quarter 2016 2nd Quarter 2016 Pct. Change Intermodal Loads 395,011 408,868 3.5% Highway Loads 376,338 432,239 14.9% Total Loads 771,349 841,107 9.0% Intermodal Revenue $ 1,010,940,051 $ 1,044,624,006 3.3% Highway Revenue $ 531,008,387 $ 591,722,060 11.4% Total Revenue $ 1,541,948,437 $ 1,636,346,066 6.1% Average per Intermodal Load $ 2,559 $ 2,555-0.2% Average per Highway Load $ 1,411 $ 1,369-3.0% IMC Market Trends YTD 2016 vs. 2015 YTD 2015 YTD 2016 Pct. Change Intermodal Loads 953,241 803,879-15.7% Highway Loads 695,681 808,577 16.2% Total Loads 1,648,922 1,612,456-2.2% Intermodal Revenue $ 2,204,278,183 $ 2,055,564,057-6.7% Highway Revenue $ 1,083,619,633 $ 1,122,730,447 3.6% Total Revenue $ 3,287,897,815 $ 3,178,294,504-3.3% Average per Intermodal Load $ 2,312 $ 2,557 10.6% Average per Highway Load $ 1,558 $ 1,389-10.9% Second Quarter 2016 IANA 2016 4

are trailers is just below the industry average. However trailer shipments from the Northwest slipped by just 2.8% in Q2, the smallest decline for trailers in any region. The Northeast, Southeast, Midwest and Eastern Canada regions all recorded intermodal declines between 5-6%. In the Midwest, trailers fell by 27.2%, but the Southeast, Northeast and Eastern Canada all saw declines of greater than 30%. The Northeast is another interesting region. International registered a fairly small decline in Q2 in the Northeast volumes fell just 2.5%. Domestic containers fell slightly, 0.4%, in the Northeast in Q2. The South Central region was an extreme outlier in the second quarter. Overall intermodal shipments declined 14.9% in this region in Q2. Every market segment did worse in this region than the overall industry average. Even domestic containers recorded negative growth in the South Central. But the most surprising thing about the South Central region in Q2 was a 20.9% decline in international loads. This large drop dramatically outstripped the decline in total international shipments. What s more is that it s not at all clear what s behind this drop. The available data suggest that container imports to the Gulf region did slip in Q2, but only by 2.9%. Almost 80% of international shipments from the South Central region are destined for the Southwest region. There was also a sizeable decline in the number of international shipments from the Southwest to the South Central region. It may be the case that a decline in shipments from the Southwest to the South Central region depressed shipments in the opposite direction as there were fewer boxes to return. The Southwest region also had a larger than average decline in international traffic, which was somewhat muted by stronger than average domestic container growth and a smaller than average decline in trailers. What s interesting about the decline in international in the Southwest is that over 60% of the decline is due a sharp decline in shipments destined for the South Central region. In fact, the drop in shipments between the South Central and Southwest re- IMC Loads 2015 2016: 18 mos. INTERMODAL LOADS HIGHWAY LOADS 190,000 180,000 170,000 160,000 150,000 140,000 130,000 120,000 110,000 100,000 90,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun IMC Revenue 2015 2016: 18 mos. INTERMODAL REVENUE HIGHWAY REVENUE 450,000,000 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun IMC Revenue per Load 2015 2016: 18 mos. INTERMODAL REVENUE HIGHWAY REVENUE 2,800 2,400 2,000 1,600 1,200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Second Quarter 2016 IANA 2016 5

Index: year ending Q2 2002=1 Index: year ending Q2 2002=1 Average Length of Haul (MIles) Average Length of Haul (MIles) Annual Volume by Equipment Type Domestic Containers International Containers Trailers 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Annual Volume by Key Lanes East-West North-South Transcon Eastbound Transcon Westbound 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Average Length of Haul Total International Domestic 1,700 1,650 1,600 1,600 1,550 1,550 1,500 1,500 1,450 1,450 1,400 1,400 1,350 1,350 1,300 2002 2003 2003 2004 2004 2005 2005 2006 2007 20062008 2007 2009 2008 20102009 2011 2012 20102013 2011 2014 2012 20152013 2016 gions was so significant that it was the cause of roughly 40% of the total decline in international volumes. This is in spite of the fact that less than 13% of international shipments travel in that lane. Second Quarter 2016 IMC Results Intermodal Marketing Company results reflect volume and revenue data reported by participating IMCs (page 25). IMC rail traffic volumes are included in data reported by the major rail systems. As the intermodal market stalled in Q2, so too did loads for the reporting Intermodal Marketing Companies. For the second straight quarter, IMC intermodal volume declined, this time down by 18.1%. Yet that was offset by a 17.0% surge in highway loads, pulling total IMC loads close to year-ago levels. Total loads were down just 3.2% in Q2 compared to last year. Total loads were up against the first quarter, by 9.0%. But this was mostly due to highway loadings; intermodal loadings were up just 3.5% from Q1. In any case, loadings usually rise between the first and second quarter. In Q2 of last year, loadings gained 11.1% from the previous year, so this year s 9.0% gain is not particularly impressive. Consistent with past results, IMCs are able to boost their highway loads during periods when trucking capacity is in excess and diesel prices remain low. This appears to give the IMCs more opportunities for brokering highway freight compared to times when capacity is tight. With those market conditions, Q2 resulted in a fourth straight quarter of growth in the highway segment. For the first time highway loads exceeded intermodal loads for the full quarter. Highway gains were consistent throughout the quarter, rising at a double-digit pace in all three months. May was the strongest month, with volume leaping close to 20% compared to last year. And June was the biggest gap between highway and intermodal loads, with just shy of 10,000 more highway than intermodal loads that month. As in Q1, much of the drop in Second Quarter 2016 IANA 2016 6

intermodal loadings was the result of one reporting IMC. That impact will likely continue throughout 2016. However, unlike Q1, excluding that one company, intermodal volume was down 4.3% year-over-year. That was compared to a 2.3% gain for the adjusted data in Q1. And that happened despite still-positive Q2 results for the domestic container segment. As IANA s Equipment Type, Size and Ownership data shows, almost all of the DC growth for Q2 was in private domestic containers. Their volume rose 4.6% compared to a 1.0% gain in rail-supplied containers. This verified that those who own containers for the most part, not IMCs gained share in early 2016. Private containers share of the overall big box market has climbed long-term and now accounts for two-thirds of that segment. Average revenue for both IMC segments moved in the opposite direction. The average per highway load decreased by more than 10%. This happened after highway average revenue was fairly steady through most of 2015. Surplus highway capacity was likely the reason for this sharp drop. This was also down close to 3% from Q1 and was at the lowest level since early 2012. As a result, total highway revenue was up just 3.8% despite the 15%-plus gain in highway volume. Intermodal average revenue moved in quite the opposite direction, rising close to 10% compared both to last year and the last quarter. Certainly this was not a result of tight capacity in an intermodal market. Rather, it more likely reflected a change in traffic mix and perhaps the impact of one IMC s business. Yet despite the leap in intermodal average revenue, it was not enough to offset the drop in volume. Total intermodal revenue fell 8.9%, enough to offset the gain in highway revenue to push to the total down just shy of 5%. That represented a loss of close to $80 million in revenue versus last year, but a gain of over $94 million compared to Q1, for the 13 reporting IMCs. Given market conditions, it is probable that the highway segment will remain the IMCs primary source of business for near-term growth. Intermodal, on the other hand is likely to turn around as railroads seek more growth in that segment to offset broader traffic losses. Also, when trucking regulations again being to tighten, the path is likely to turn, with IMCs returning to slower highway and quicker intermodal growth in the coming years. Intermodal Long-Term Trends This section explains the charts that describe key long-term trends in intermodal volume. These charts have been a continuing feature of Intermodal Market Trends and Statistics for several years now. With each report, these trends are updated by tracking the trailing 12 months e.g. the 12 months ending in March of 2016, and so forth. There has been a significant shift in trends for several measures. The first chart looks at volume by equipment type. It is indexed to the first quarter of the period. The domestic container segment continues to lead growth. International loadings, which had been trending up slowly since the recession, have leveled off over the past year. And trailer volume, which had been fairly flat for a few years, has turned down sharply. The second chart shows volume for key lane groupings: Transcon Eastbound, Transcon Westbound, North-South and East-West. It is also indexed to the first quarter in the period. The transcon lanes are defined by movement between coastal regions the Northeast, Southeast and Eastern Canada on the east coast and the Northwest, Southwest and Western Canada on the west coast. The North-South and East-West lanes encompass freight in both directions, excluding the transcon lanes. North- South volume had been the strongest segment over the past eight years, but has turned down of late, largely based on that segment being shorterhaul. The other three categories are fairly flat. Finally, the third chart highlights length of haul as estimated from the IANA Market Trends and Statistics data using key points in each region (e.g. Los Angeles in the Southwest, Atlanta in the Southeast). Most notable is the upturn in domestic length of haul as short-haul lanes faced tougher trucking competition. International, however, continued to trend down, in particular with the U.S. East roads expanding services from ports in the Southeast. Intermodal Outlook This spring was a challenge for the North American intermodal market. Total intermodal loadings fell in Q2 for the first time since the Great Recession. Certainly the port issues last year, which suppressed Q1 volume and boosted Q2 to make up for early weakness, have skewed year-overyear comparisons for the first half of 2016. Still, volume was down yearto-date, illustrating the tests that the intermodal market faces in the near future. International loadings Q2 decline compared to last year resulted from Railroad Second Quarter Earnings Per Share 2nd Quarter Year to Date 2015 2016 2015 2016 CN 1 $1.10 $1.10 $1.96 $2.10 Canadian Pacific 1 $2.36 $2.15 $4.28 $5.67 CSX $0.56 $0.47 $1.00 $0.84 KCS $1.01 $1.11 $1.92 $2.11 Norfolk Southern $1.41 $1.36 $2.41 $2.65 Union Pacific $1.38 $1.17 $2.68 $2.32 1 Results reported in Canadian dollars Second Quarter 2016 IANA 2016 7

several factors, the most important being the challenging comparison. Also, imports were flat year-over-year, the share of Asian imports moving to the East Coast remained at about the same level as Q2 of 2016, and estimates are that a bigger share of imports were transloaded to big boxes in Q2. With consumer spending healthy and the dollar still highly valued, imports should strengthen in the second half. High inventories could, however, continue to pressure import growth. And the Eastern railroads are heavily focused on moving a bigger share of containers from ports by rail, especially in the Southeast. With all that said, international loadings at best are likely to be flat for the full year compared to 2015. Domestic container gains did slow in Q2, but that too was shaken by last year s comparisons as transloading imports into DCs gave Q2 2015 a boost. And after rising in Q1, fuel prices leveled off in Q2, helping truckers protect their market share. Yet this remains the most important opportunity for railroads to replace the significant amount of other business lost over the past two years. Second half comparisons will be a bit easier here as well. It appears likely that big box volume will grow 5%-6% for 2016. Over the longer-term, railroad focus combined with tightened trucking regulation could push the DC growth rate significantly higher in the coming years. And trailers continued to plunge. This is in part the impact of Norfolk Southern s decisions to exit the Roadrailer market. It also reflects a somewhat different market than domestic containers, with parcel and LTL loads a much larger share of the trailer segment. But it too faces the challenge of low fuel prices and surplus truck capacity. And trailers are likely to fall 10%-15% for the full year. Certainly 2016 will continue to be challenging for intermodal demand. For overall loadings there may be enough recovery in the second half to deliver an increase, albeit modest, for the full year. But looking farther ahead, the industry will continue to focus on enhanced service, expanded capacity, and new lanes and terminals Tractor/Trailer Loads Orig. 2nd Qtr. 2016 vs. 1st Qtr. 2016 Actual Length-of-Haul Tractor/Trailer Loads Orig. 2nd Qtr. 2016 vs. 2015 Source: FTR Associates 1st Quarter 2016 2nd Quarter 2016 Pct. Change <125 Miles 24,407,447 24,490,955 0.3% 125-299 Miles 34,393,025 34,655,092 0.8% 300-549 Miles 64,476,083 64,792,259 0.5% 550+ Miles 20,172,874 20,340,106 0.8% Grand Total 143,449,429 144,278,412 0.6% Source: FTR Associates Actual Length-of-Haul 2nd Quarter 2015 2nd Quarter 2016 Pct. Change <125 Miles 23,450,520 24,490,955 4.4% 125-299 Miles 34,412,944 34,655,092 0.7% 300-549 Miles 63,485,610 64,792,259 2.1% 550+ Miles 20,208,184 20,340,106 0.7% Grand Total 141,557,258 144,278,412 1.9% Source: FTR Associates Tractor/Trailer Loads Orig. YTD 2016 vs. YTD 2015 Actual Length-of-Haul YTD 2015 YTD 2016 Pct. Change <125 Miles 46,662,331 48,898,402 4.8% 125-299 Miles 68,463,226 69,048,118 0.9% 300-549 Miles 126,487,074 129,268,341 2.2% 550+ Miles 40,516,925 40,512,981 0.0% Grand Total 282,129,556 287,727,842 2.0% to push intermodal growth back on track in the next few years. Other developments: CSX announced a new intermodal service, called the Queen City Express, to carry containers between the port of Wilmington, NC and CSX s terminal in Charlotte. Intermodal rail car capacity continued to grow in early 2016. 1,400 new double-stack wells were brought into the North American intermodal fleet in Q2, as reported by the Railway Supply Institute. The order backlog is for close to 2,400 more double-stack wells. Second Quarter 2016 IANA 2016 8

Two of the major North American railroads names new CEOs in Q2, with Luc Jobin taking the lead at CN and Patrick Ottensmeyer at KCS. Norfolk Southern and Kansas City Southern plan to spend $28 million this year to improve the Meridian Speedway rail line. That line, between Meridian, MS and Shreveport, LA is a key interchange point for intermodal loadings. Trucking Industry Outlook Class 8 Retail Sales (Ward's) Source: FTR Associates Source: FTR Associates Short-Term Trucking Outlook History 16Q2 16Q3 16Q4 17Q1 17Q2 Active Truck Utilization 95.4% 96.0% 96.7% 97.7% 97.9% Cl. 8 Tractor/Trailer Loadings Originated 000s of Loadings 144,278 144,801 145,835 146,763 147,690 % Change, Q/Q 0.6% 0.4% 0.7% 0.6% 0.6% % Change, Y/Y 1.9% 1.5% 2.3% 2.3% 2.4% Driver Labor Availability Index Index (1992=100) 124.6 124.9 125.3 125.7 125.4 % Change, Q/Q -0.3% 0.2% 0.3% 0.4% -0.3% % Change, Y/Y 0.4% 0.8% 1.1% 0.6% 0.6% Truck Share of Employment Index Index (1992=100) Driver Labor Hiring Conditions Current Trucking Indicators APR MAY JUN Comments Actual 13,543 14,095 12,972 Y/Y % Change -38.6% -29.6% -34.3% National Avg. Diesel/Gal (EIA) Actual $2.152 $2.315 $2.423 Y/Y % Change -22.6% -19.8% -15.7% Driver Labor Availability Index (1992=100) Actual 125.2 124.9 -- M/M % Change 0.0% -0.3% -- Y/Y % Change 0.9% 0.5% -- Class 8 orders dropped below 15k for all three months of the second quarter. There is nothing indicating that oil should move significantly away from the $50 mark in the near-term. Forecast 139.0 140.7 143.3 145.8 147.5 Green/Yellow/Red Yellow Red Critical Critical Red Seasonally adjusted demand for truck transport in tractor/trailers moved up 0.6% from Q1 2016 to Q2 implying an annual growth rate of just 2.4%. Demand growth for intermodaleligible long-haul transport 550+ mile length of haul exceeded that of the overall truck market, coming in at 0.8% 3.2% annualized. This growth was sufficient to offset Q1 weakness and move Q2 long-haul activity ahead of the prior year, albeit by just a fraction of a percent, while on a year-to-date basis volume was flat. The slow acceleration in demand for long-haul truck transport was certainly good news for intermodal, but projections indicate that any improvement going forward will be minimal. Utilization of the active truck fleet edged up in Q2 by 0.6% to 95.4%. Utilization has come up slightly but it was not enough to inhibit the shippers ability to find truck capacity where and when needed. The result has been a rather fierce bidding season in which shippers have, to some extent, made up for aggressive pricing from carriers during the tighter conditions which had prevailed previously. The trucking industry is responding by cutting acquisition plans and shrinking capacity. This could well exacerbate the crunch that will occur if growth continues and anticipated regulatory actions occur on schedule. Under the current conditions with trucks and drivers readily available, driver turnover has dropped off and driver pay has stabilized. For the moment, calm conditions prevail and the driver issue has temporarily receded from the forefront. But if current trends continue we should see a slow but steady tightening of the driver supply as freight improves seasonally and the ELD implementation date of December 2017 begins to draw nearer. Congressional action to clarify the 34-hour restart situation currently in limbo due to a legislative drafting error could also soak up a couple of points of capacity. Activity by the courts could cut both ways: challenges to the classification status of owner-operators could make things tighter, while the outstanding OOIDA lawsuit against ELD implementation could dramatically change the outlook if an injunction is issued by the court unlikely in most opinions. The price of fuel has moved up significantly in recent months, although it is still low by historical Second Quarter 2016 IANA 2016 9

standards. Quick upward movement puts cash flow pressure on truckers regardless of the absolute level of the price, as the fuel surcharge revenue mechanism always lags reality in such circumstances, forcing truckers to front the bulk of the cost increase. This has contributed to an uptick in carrier bankruptcies in the second quarter, which according to Avondale Partners, jumped 70% from prior year to 120 failures, while the average size of the exiting carrier also moved up from 14 to 17 units. After stumbling in the first quarter in what is becoming an annual routine, all indications are that the economy recovered its footing in Q2. Job growth has recently surged, but when averaged with prior months, the overall rate of job creation has eased but remains respectable. We are in the late stages of the current recovery and external risks to the economy are mounting. These include Brexit, China over-capacity and the volatile political climate. Any of these might be sufficient to trigger a downturn as early as 2017 but of course this is far from certain. For the moment the most likely base case calls for a continuation of slow, consumer-led economic growth which will support similar slow growth in freight demand. However, the regulatory situation will determine whether a significant tightening of truck capacity will occur in 2017. The gradual improvement projected for the trucking sector will work to intermodal s benefit in the second half of 2017. Improvement will be modest, but noticeable. Higher fuel prices will also contribute to an improved scenario. Improvement should continue and begin to gain momentum as we move into and through 2017. However, major wild cards, including regulatory delay and economic instability could intervene to impact this scenario. U.S., Canada and Mexico Domestic Economies U.S. GDP expanded just 1.2% in Q2, just above the 1.1% recorded in Q1. Certainly, this is a disappointing GDP report, however the numbers Yr/Yr % Change 12% 10% 8% 6% 4% 2% 0% -2% 2011 2012 2013 2014 2015 2016 Source: FTR Associates 100% 95% 90% 85% 80% Source: FTR Associates are not as dismal as the headline number suggests. For one, consumer spending expanded 4.2% on a seasonally adjusted, annualized rate. It should not be a huge surprise that the U.S. consumer is doing well: the labor market has been one of the most resilient sectors of the economy. Total job gains slowed in May, in part due to a strike at major telecommunications company. However, job gains bounced back in June. Since the start of the year, monthly job growth has averaged 171,500 net gains a month. With consumer spending doing so well, GDP was dragged down by investment and inventories. Inventories Truck Loadings Originated Heavy-Duty Truck Utilization Rate U.S. Cl. 8 Trucks - Active Capacity In Use Historical Average 75% 2011 2012 2013 2014 2015 2016 subtracted a full 1.2% from total GDP growth. Although the Q2 drawdown in inventories was negative, it may encourage growth in coming quarters. More worrisome was the drop in investment, which subtracted 0.5% from GDP growth. Part of the decline in investment is due to the fact that the industrial economy has been on unstable footing for over the past year, in part due to low energy and commodity prices and tepid international demand. The industrial production index has been below its year-ago level for the past ten consecutive quarters, largely due to substantial losses in mining. Second Quarter 2016 IANA 2016 10

In Canada, the economic situation was much less encouraging in Q2. Although Q2 GDP data is not yet available, initial estimates expect Q2 GDP growth to be flat to slightly negative. Of course, when Q2 GDP data actually comes in, it will likely overstate the weakness of the economy, as the wildfires in Alberta are expected to have subtracted a full point from Q2 GDP growth. The Brexit vote had a much bigger impact on Canada and Mexico than the United States. In the case of Canada, the short-term effect was muted, but the long-term effects will likely be substantial: before the vote, a trade agreement between Canada and the European Union was slated to go into effect in early 2017. Now the agreement has to be voted on by all 28 members of the E.U. Oddly enough, the Brexit vote had an immediate effect on the Mexican economy, in spite of the fact that Mexico has very little trade with the United Kingdom. In the turmoil surrounding the vote, the Mexican peso dropped to the lowest value on record. Over the long-term, a weak peso can be a positive for trade, but the recent change in exchange rates has injected a substantial amount of uncertainty and instability and has forced the Bank of Mexico to raise interest rates again. U.S. and Canadian Container Trade. After a promising Q1, container imports disappointed in Q2: the available data suggests that North American container import volumes failed to surpass the previous year s levels in Q2. It was actually Canadian container import volumes that pulled down overall North American imports. Both the U.S. and Mexico recorded small gains in container import volumes. However, Canadian container import volumes dropped 2.8% in Q2, pulling down the overall North American growth rate. Canada s decline is likely due to difficult comparisons. In Q2 2015, container import volumes jumped by 9.9%. That strong growth may have been encouraged by the port-issues that U.S. West Coast ports experienced in early 2015, so it s not surprising that there would be some U.S. Economic Indicators 15Q2 15Q3 15Q4 16Q1 16Q2 Gross Domestic Product (SAAR) 3.9% 2.0% 1.4% 1.1% 1.2% Merchandise Imports (SAAR) 3.2% 1.4% -1.3% -1.3% -0.9% Industrial Production - Mfg. (vs. LY) 1.1% 0.9% 0.1% 0.7% 0.3% Capacity Utilization - Mfg. 75.8% 76.0% 75.7% 75.7% 75.4% Retail Sales (Excl. Autos, vs. LY) 1.1% 1.3% 1.0% 2.4% 3.0% Inventory/Sales Ratio - All Business 1.37 1.38 1.39 1.41 1.40 Housing Starts (Millions, SAAR) 1.16 1.16 1.13 1.15 1.16 Trade Weighted Value $ (1973=100) 93.51 96.68 98.00 99.56 97.11 Canadian Economic Indicators 15Q2 15Q3 15Q4 16Q1 16Q2 Gross Domestic Product (SAAR) -0.5% 2.2% 0.5% 2.4% 0.1% Imports (SAAR) -1.8% -2.8% -7.0% 1.3% -2.0% Exports (SAAR) 1.2% 9.0% -1.5% 6.9% -1.1% Industrial Production - Mfg. (vs. LY) -3.0% -0.3% -1.7% 0.4% 1.1% Retail Sales (vs. Last Year) 1.4% 1.6% 2.2% 5.5% 3.7% Housing Starts (Thousands, SAAR) 173.4 180.3 185.9 189.7 197.8 U.S. $ / Canadian $ $0.813 $0.764 $0.749 $0.728 $0.776 Mexican Economic Indicators 15Q2 15Q3 15Q4 16Q1 16Q2 Gross Domestic Product (SAAR) 2.5% 3.2% 2.2% 3.3% 1.2% Imports (SAAR) 4.0% 6.0% -4.4% -1.1% 1.3% Exports (SAAR) 3.5% 9.7% -2.0% 1.6% 1.8% Industrial Production - Mfg. (vs. LY) 0.8% 1.2% 0.3% 0.8% 1.0% Mexican Peso / U.S. $ $15.32 $16.44 $16.76 $18.04 $18.09 SAAR = Seasonally Adjusted Annual Rate of growth from prior quarter.some Q2 2016 figures are preliminary estimates. give back. In fact, there are signs that some freight returned to the Pacific Southwest in Q2. Total container imports to the Pacific Southwest gained 1.9% in Q2, the strongest growth rate of any U.S. port region. In contrast, container imports through U.S. East Coast ports fell 0.8%. Furthermore, the all-water share of Transpacific imports declined to 33.1% in Q2. This is below the 33.6% recorded in Q2 or 2015 and well below the 34.7% recorded in Q1 2016. Full Q2 export data is not yet available, but the data that is available suggests that container exports declined in Q2. This, no doubt, reflects the weakness in global economies and a strong U.S. dollar. Second Quarter 2016 IANA 2016 11

Monthly Traffic Equipment Moves by Type, Ownership and Size 15 16 15 16 15 16 15 16 Pct. Chg. Trailers 136,785 98,202 135,163 92,966 135,610 99,897 407,558 291,065-29% Private 133,707 97,542 132,056 92,313 132,405 99,156 398,168 289,011-27% Rail-controlled 3,078 660 3,107 653 3,205 741 9,390 2,054-78% Containers 1,381,893 1,303,187 1,372,171 1,316,174 1,385,666 1,360,736 4,139,730 3,980,097-4% Private 1,180,159 1,105,720 1,177,745 1,124,863 1,192,051 1,153,651 3,549,955 3,384,234-5% Rail-controlled 201,734 197,467 194,426 191,311 193,615 207,085 589,775 595,863 1% Total 1,518,678 1,401,389 1,507,334 1,409,140 1,521,276 1,460,633 4,547,288 4,271,162-6% Private 1,313,866 1,203,262 1,309,801 1,217,176 1,324,456 1,252,807 3,948,123 3,673,245-7% Rail-controlled 204,812 198,127 197,533 191,964 196,820 207,826 599,165 597,917 0% Trailers 136,785 98,202 135,163 92,966 135,610 99,897 407,558 291,065-29% 20' 1,201 149 1,105 157 1,134 173 3,440 479-86% 28' 21,914 18,684 21,113 17,411 22,339 20,308 65,366 56,403-14% 40' 1,982 1,521 1,810 1,550 1,803 1,574 5,595 4,645-17% 45' 8,584 6,371 7,844 6,194 7,297 6,583 23,725 19,148-19% 48' 3,992 1,251 4,696 1,666 4,719 1,810 13,407 4,727-65% 53' or greater 99,112 70,226 98,595 65,988 98,318 69,449 296,025 205,663-31% Containers 1,381,893 1,303,187 1,372,171 1,316,174 1,385,666 1,360,736 4,139,730 3,980,097-4% 20' 217,795 182,877 216,563 185,984 212,883 187,153 647,241 556,014-14% 28' 239 48 195 45 136 46 570 139-76% 40' 545,763 496,398 553,177 512,749 556,369 526,240 1,655,309 1,535,387-7% 45' 21,602 18,802 22,588 20,264 25,184 21,779 69,374 60,845-12% 48' 2,528 3,731 2,651 3,537 2,537 3,812 7,716 11,080 44% 53' or greater 593,966 601,331 576,997 593,595 588,557 621,706 1,759,520 1,816,632 3% Total 1,518,678 1,401,389 1,507,334 1,409,140 1,521,276 1,460,633 4,547,288 4,271,162-6% 20' 218,996 183,026 217,668 186,141 214,017 187,326 650,681 556,493-14% 28' 22,153 18,732 21,308 17,456 22,475 20,354 65,936 56,542-14% 40' 547,745 497,919 554,987 514,299 558,172 527,814 1,660,904 1,540,032-7% 45' 30,186 25,173 30,432 26,458 32,481 28,362 93,099 79,993-14% 48' 6,520 4,982 7,347 5,203 7,256 5,622 21,123 15,807-25% 53' or greater 693,078 671,557 675,592 659,583 686,875 691,155 2,055,545 2,022,295-2% Second Quarter 2016 IANA 2016 12

Monthly Traffic Equipment Moves by Type, Ownership and Size Private 15 16 15 16 15 16 15 16 Pct. Chg. Trailers 133,707 97,542 132,056 92,313 132,405 99,156 398,168 289,011-27% 20' 1,200 149 1,105 157 1,134 173 3,439 479-86% 28' 21,742 18,684 20,986 17,411 22,199 20,308 64,927 56,403-13% 40' 1,981 1,519 1,808 1,549 1,803 1,572 5,592 4,640-17% 45' 8,218 6,286 7,486 6,139 6,876 6,545 22,580 18,970-16% 48' 3,285 875 3,818 1,256 3,884 1,279 10,987 3,410-69% 53' or greater 97,281 70,029 96,853 65,801 96,509 69,279 290,643 205,109-29% Containers 1,180,159 1,105,720 1,177,745 1,124,863 1,192,051 1,153,651 3,549,955 3,384,234-5% 20' 217,758 182,852 216,535 185,961 212,862 187,117 647,155 555,930-14% 28' 239 43 194 44 135 42 568 129-77% 40' 545,226 495,885 552,789 512,494 556,232 526,038 1,654,247 1,534,417-7% 45' 21,565 18,770 22,551 20,231 25,153 21,726 69,269 60,727-12% 48' 2,509 3,707 2,634 3,505 2,520 3,768 7,663 10,980 43% 53' or greater 392,862 404,463 383,042 402,628 395,149 414,960 1,171,053 1,222,051 4% Rail-controlled Trailers 3,078 660 3,107 653 3,205 741 9,390 2,054-36% 20' 1 0 0 0 0 0 1 0-100% 28' 172 0 127 0 140 0 439 0-100% 40' 1 2 2 1 0 2 3 5 67% 45' 366 85 358 55 421 38 1,145 178-84% 48' 707 376 878 410 835 531 2,420 1,317-46% 53' or greater 1,831 197 1,742 187 1,809 170 5,382 554-90% Containers 201,734 197,467 194,426 191,311 193,615 207,085 589,775 595,863 1% 20' 37 25 28 23 21 36 86 84-2% 28' 0 5 1 1 1 4 2 10 400% 40' 537 513 388 255 137 202 1,062 970-9% 45' 37 32 37 33 31 53 105 118 12% 48' 19 24 17 32 17 44 53 100 89% 53' or greater 201,104 196,868 193,955 190,967 193,408 206,746 588,467 594,581 1% Second Quarter 2016 IANA 2016 13

Eastern Canada Region (EC) Includes: NB, NF, NS, ON, PE, QC 15 16 15 16 15 16 15 16 Pct. Chg. EC Total Total 104,854 98,632 108,139 100,537 105,694 100,952 318,687 300,121-6% Outbound Trailers 6,367 3,491 6,910 3,142 6,592 3,372 19,869 10,005-50% Containers 98,487 95,141 101,229 97,395 99,102 97,580 298,818 290,116-3% EC Total Total 101,149 98,503 102,067 100,150 102,088 105,339 305,304 303,992 0% Inbound Trailers 5,725 3,717 6,446 3,329 6,276 3,539 18,447 10,585-43% Containers 95,424 94,786 95,621 96,821 95,812 101,800 286,857 293,407 2% EC to EC Total 33,005 34,961 36,134 35,645 35,157 36,649 104,296 107,255 3% Internal Trailers 3,901 3,490 4,403 3,142 4,116 3,371 12,420 10,003-19% Containers 29,104 31,471 31,731 32,503 31,041 33,278 91,876 97,252 6% EC to MC Total 38 28 25 33 31 29 94 90-4% Containers 38 28 25 33 31 29 94 90-4% EC to MW Total 13,210 10,303 14,360 10,101 12,240 10,598 39,810 31,002-22% Trailers 1,809 0 1,911 0 2,043 0 5,763 0-100% Containers 11,401 10,303 12,449 10,101 10,197 10,598 34,047 31,002-9% EC to MX Total 100 230 89 270 116 309 305 809 165% Containers 100 230 89 270 116 309 305 809 165% EC to NE Total 897 660 1,036 848 1,339 892 3,272 2,400-27% Containers 897 660 1,036 848 1,339 892 3,272 2,400-27% EC to NW Total 59 104 57 88 87 87 203 279 37% Containers 59 104 57 88 87 87 203 279 37% EC to SC Total 716 534 627 456 466 399 1,809 1,389-23% Trailers 252 0 215 0 161 0 628 0-100% Containers 464 534 412 456 305 399 1,181 1,389 18% EC to SE Total 757 383 717 437 634 372 2,108 1,192-43% Trailers 405 0 381 0 272 0 1,058 0-100% Containers 352 383 336 437 362 372 1,050 1,192 14% EC to SW Total 328 362 231 368 265 336 824 1,066 29% Containers 328 362 231 368 265 336 824 1,066 29% EC to WC Total 55,744 51,067 54,863 52,291 55,359 51,281 165,966 154,639-7% Trailers 0 1 0 0 0 1 0 2 NA Containers 55,744 51,066 54,863 52,291 55,359 51,280 165,966 154,637-7% Second Quarter 2016 IANA 2016 14

Mountain Central Region (MC) Includes: CO, ID, MT, NE, ND, SD, UT, WY 15 16 15 16 15 16 15 16 Pct. Chg. MC Total Total 19,921 16,782 18,453 17,200 20,070 18,868 58,444 52,850-10% Outbound Trailers 4,895 3,734 4,203 3,354 4,365 3,624 13,463 10,712-20% Containers 15,026 13,048 14,250 13,846 15,705 15,244 44,981 42,138-6% MC Total Total 24,389 20,633 22,881 21,320 25,375 22,909 72,645 64,862-11% Inbound Trailers 4,396 3,450 4,099 3,261 4,428 3,652 12,923 10,363-20% Containers 19,993 17,183 18,782 18,059 20,947 19,257 59,722 54,499-9% MC to MC Total 3,114 2,319 2,329 2,498 2,892 2,710 8,335 7,527-10% Internal Trailers 1,568 1,276 1,254 1,239 1,386 1,427 4,208 3,942-6% Containers 1,546 1,043 1,075 1,259 1,506 1,283 4,127 3,585-13% MC to EC Total 43 157 28 75 30 61 101 293 190% Containers 43 157 28 75 30 61 101 293 190% MC to MW Total 6,492 5,501 6,007 4,982 5,951 5,079 18,450 15,562-16% Trailers 2,826 2,014 2,482 1,825 2,532 1,616 7,840 5,455-30% Containers 3,666 3,487 3,525 3,157 3,419 3,463 10,610 10,107-5% MC to MX Total 0 0 0 0 0 0 0 0 NA Containers 0 0 0 0 0 0 0 0 NA MC to NE Total 1,222 1,114 1,095 953 990 1,024 3,307 3,091-7% Trailers 94 64 89 48 88 45 271 157-42% Containers 1,128 1,050 1,006 905 902 979 3,036 2,934-3% MC to NW Total 1,276 1,171 1,484 1,316 1,795 1,656 4,555 4,143-9% Containers 1,276 1,171 1,484 1,316 1,795 1,656 4,555 4,143-9% MC to SC Total 720 631 764 643 653 687 2,137 1,961-8% Trailers 0 0 4 0 0 0 4 0-100% Containers 720 631 760 643 653 687 2,133 1,961-8% MC to SE Total 465 598 471 532 591 546 1,527 1,676 10% Trailers 1 1 2 1 0 1 3 3 0% Containers 464 597 469 531 591 545 1,524 1,673 10% MC to SW Total 6,589 5,291 6,275 6,201 7,168 7,105 20,032 18,597-7% Trailers 406 379 372 241 359 535 1,137 1,155 2% Containers 6,183 4,912 5,903 5,960 6,809 6,570 18,895 17,442-8% MC to WC Total 0 0 0 0 0 0 0 0 NA Containers 0 0 0 0 0 0 0 0 NA Second Quarter 2016 IANA 2016 15

Midwest Region (MW) Includes: IL, IN, IA, KY, KS, MI, MN, MO, OH, WI 15 16 15 16 15 16 15 16 Pct. Chg. MW Total Total 404,120 376,843 405,246 381,449 414,115 396,391 1,223,481 1,154,683-6% Outbound Trailers 51,254 38,280 51,079 35,827 51,608 37,915 153,941 112,022-27% Containers 352,866 338,563 354,167 345,622 362,507 358,476 1,069,540 1,042,661-3% MW Total Total 394,936 370,402 390,352 367,267 386,030 377,823 1,171,318 1,115,492-5% Inbound Trailers 54,256 38,400 53,381 35,206 52,434 37,318 160,071 110,924-31% Containers 340,680 332,002 336,971 332,061 333,596 340,505 1,011,247 1,004,568-1% MW to MW Total 22,274 22,702 22,708 20,411 22,236 21,118 67,218 64,231-4% Internal Trailers 8,807 9,018 8,926 7,284 8,082 7,968 25,815 24,270-6% Containers 13,467 13,684 13,782 13,127 14,154 13,150 41,403 39,961-3% MW to EC Total 10,688 10,067 10,611 10,820 10,934 11,521 32,233 32,408 1% Trailers 759 0 776 0 866 0 2,401 0-100% Containers 9,929 10,067 9,835 10,820 10,068 11,521 29,832 32,408 9% MW to MC Total 9,271 8,098 8,884 7,969 8,995 8,359 27,150 24,426-10% Trailers 2,609 2,038 2,603 1,931 2,693 2,089 7,905 6,058-23% Containers 6,662 6,060 6,281 6,038 6,302 6,270 19,245 18,368-5% MW to MX Total 10,496 10,234 10,081 10,789 9,134 11,657 29,711 32,680 10% Containers 10,496 10,234 10,081 10,789 9,134 11,657 29,711 32,680 10% MW to NE Total 95,012 94,662 93,769 94,654 98,538 99,184 287,319 288,500 0% Trailers 12,505 7,547 12,636 7,880 13,384 7,695 38,525 23,122-40% Containers 82,507 87,115 81,133 86,774 85,154 91,489 248,794 265,378 7% MW to NW Total 36,269 34,053 38,716 35,352 36,427 36,221 111,412 105,626-5% Trailers 3,083 3,061 2,969 2,816 3,079 3,190 9,131 9,067-1% Containers 33,186 30,992 35,747 32,536 33,348 33,031 102,281 96,559-6% MW to SC Total 25,685 22,188 24,764 21,504 25,029 22,049 75,478 65,741-13% Trailers 5,166 2,790 5,110 2,835 5,054 2,846 15,330 8,471-45% Containers 20,519 19,398 19,654 18,669 19,975 19,203 60,148 57,270-5% MW to SE Total 36,296 34,661 35,029 33,913 36,800 34,966 108,125 103,540-4% Trailers 4,843 1,463 4,658 1,448 4,769 1,721 14,270 4,632-68% Containers 31,453 33,198 30,371 32,465 32,031 33,245 93,855 98,908 5% MW to SW Total 132,767 120,983 131,359 123,706 139,731 130,012 403,857 374,701-7% Trailers 13,482 12,363 13,401 11,633 13,681 12,406 40,564 36,402-10% Containers 119,285 108,620 117,958 112,073 126,050 117,606 363,293 338,299-7% MW to WC Total 25,362 19,195 29,325 22,331 26,291 21,304 80,978 62,830-22% Containers 25,362 19,195 29,325 22,331 26,291 21,304 80,978 62,830-22% Second Quarter 2016 IANA 2016 16

Mexico Region (MX) Includes: All of Mexico 15 16 15 16 15 16 15 16 Pct. Chg. MX Total Total 48,735 51,157 52,252 49,357 54,204 52,212 155,191 152,726-2% Outbound Trailers 1,454 2 1,280 23 1,301 54 4,035 79-98% Containers 47,281 51,155 50,972 49,334 52,903 52,158 151,156 152,647 1% MX Total Total 47,557 50,449 49,967 48,541 52,115 52,553 149,639 151,543 1% Inbound Trailers 5 0 2 0 95 45 102 45-56% Containers 47,552 50,449 49,965 48,541 52,020 52,508 149,537 151,498 1% MX to MX Total 33,253 35,890 37,000 33,363 39,566 36,779 109,819 106,032-3% Internal Trailers 3 0 2 0 95 35 100 35-65% Containers 33,250 35,890 36,998 33,363 39,471 36,744 109,719 105,997-3% MX to EC Total 272 434 314 400 217 379 803 1,213 51% Trailers 272 434 314 400 217 379 803 1,213 51% Containers 0 0 0 0 0 0 0 0 NA MX to MC Total 0 0 0 0 0 0 0 0 NA Containers 0 0 0 0 0 0 0 0 NA MX to MW Total 10,655 10,985 10,785 11,315 10,249 11,431 31,689 33,731 6% Trailers 1,446 1 1,278 22 1,206 9 3,930 32-99% Containers 9,209 10,984 9,507 11,293 9,043 11,422 27,759 33,699 21% MX to NE Total 527 354 480 578 443 359 1,450 1,291-11% Containers 527 354 480 578 443 359 1,450 1,291-11% MX to NW Total 1 0 0 0 0 0 1 0-100% Containers 1 0 0 0 0 0 1 0-100% MX to SC Total 1,385 887 987 850 1,102 445 3,474 2,182-37% Trailers 0 0 0 0 0 10 0 10 NA Containers 1,385 887 987 850 1,102 435 3,474 2,172-37% MX to SE Total 1,747 1,709 1,806 1,887 1,817 1,593 5,370 5,189-3% Containers 1,747 1,709 1,806 1,887 1,817 1,593 5,370 5,189-3% MX to SW Total 805 822 824 861 747 1,056 2,376 2,739 15% Trailers 0 1 0 1 0 0 0 2 NA Containers 805 821 824 860 747 1,056 2,376 2,737 15% MX to WC Total 85 76 56 103 63 170 204 349 71% Containers 85 76 56 103 63 170 204 349 71% Second Quarter 2016 IANA 2016 17

Northeast Region (NE) Includes: CT, DC, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT, VA, WV 15 16 15 16 15 16 15 16 Pct. Chg. NE Total Total 144,792 133,278 139,200 131,732 139,897 136,498 423,889 401,508-5% Outbound Trailers 17,457 11,609 17,489 11,370 18,020 12,405 52,966 35,384-33% Containers 127,335 121,669 121,711 120,362 121,877 124,093 370,923 366,124-1% NE Total Total 154,353 149,506 153,138 149,845 159,067 158,962 466,558 458,313-2% Inbound Trailers 18,703 11,947 18,924 12,119 19,375 12,542 57,002 36,608-36% Containers 135,650 137,559 134,214 137,726 139,692 146,420 409,556 421,705 3% NE to NE Total 10,931 11,128 10,009 10,830 10,331 10,962 31,271 32,920 5% Internal Trailers 885 837 851 980 838 953 2,574 2,770 8% Containers 10,046 10,291 9,158 9,850 9,493 10,009 28,697 30,150 5% NE to EC Total 900 696 800 734 982 767 2,682 2,197-18% Containers 900 696 800 734 982 767 2,682 2,197-18% NE to MC Total 1,528 1,066 1,414 1,006 1,321 1,099 4,263 3,171-26% Trailers 134 72 109 42 135 58 378 172-54% Containers 1,394 994 1,305 964 1,186 1,041 3,885 2,999-23% NE to MW Total 85,330 79,427 81,649 79,437 83,132 81,642 250,111 240,506-4% Trailers 13,110 8,174 13,210 7,804 13,752 8,416 40,072 24,394-39% Containers 72,220 71,253 68,439 71,633 69,380 73,226 210,039 216,112 3% NE to MX Total 296 356 250 347 334 308 880 1,011 15% Containers 296 356 250 347 334 308 880 1,011 15% NE to NW Total 3,968 3,158 4,063 2,891 4,009 3,330 12,040 9,379-22% Trailers 121 82 118 86 136 116 375 284-24% Containers 3,847 3,076 3,945 2,805 3,873 3,214 11,665 9,095-22% NE to SC Total 6,221 5,047 5,679 4,967 5,396 5,190 17,296 15,204-12% Trailers 223 229 236 179 250 226 709 634-11% Containers 5,998 4,818 5,443 4,788 5,146 4,964 16,587 14,570-12% NE to SE Total 18,838 17,189 18,507 16,399 18,211 16,369 55,556 49,957-10% Trailers 1,861 1,532 1,935 1,719 1,816 1,725 5,612 4,976-11% Containers 16,977 15,657 16,572 14,680 16,395 14,644 49,944 44,981-10% NE to SW Total 16,452 14,954 16,454 14,889 15,876 16,575 48,782 46,418-5% Trailers 1,123 683 1,030 560 1,093 911 3,246 2,154-34% Containers 15,329 14,271 15,424 14,329 14,783 15,664 45,536 44,264-3% NE to WC Total 328 257 375 232 305 256 1,008 745-26% Containers 328 257 375 232 305 256 1,008 745-26% Second Quarter 2016 IANA 2016 18

Northwest Region (NW) Includes: OR, WA 15 16 15 16 15 16 15 16 Pct. Chg. NW Total Total 64,149 61,660 64,008 61,889 66,037 65,118 194,194 188,667-3% Outbound Trailers 3,830 3,459 3,422 3,290 3,495 3,695 10,747 10,444-3% Containers 60,319 58,201 60,586 58,599 62,542 61,423 183,447 178,223-3% NW Total Total 62,357 60,001 66,363 60,665 66,456 65,224 195,176 185,890-5% Inbound Trailers 3,854 3,844 3,809 3,607 4,008 4,185 11,671 11,636 0% Containers 58,503 56,157 62,554 57,058 62,448 61,039 183,505 174,254-5% NW to NW Total 11,730 11,684 12,822 11,441 13,136 13,108 37,688 36,233-4% Internal Trailers 3 0 0 0 0 1 3 1-67% Containers 11,727 11,684 12,822 11,441 13,136 13,107 37,685 36,232-4% NW to EC Total 59 38 32 33 21 45 112 116 4% Containers 59 38 32 33 21 45 112 116 4% NW to MC Total 1,024 1,045 1,132 988 893 938 3,049 2,971-3% Containers 1,024 1,045 1,132 988 893 938 3,049 2,971-3% NW to MW Total 43,598 41,317 42,898 42,023 44,058 43,060 130,554 126,400-3% Trailers 2,983 2,790 2,641 2,631 2,768 2,744 8,392 8,165-3% Containers 40,615 38,527 40,257 39,392 41,290 40,316 122,162 118,235-3% NW to MX Total 0 0 0 0 0 0 0 0 NA Containers 0 0 0 0 0 0 0 0 NA NW to NE Total 2,107 1,516 1,473 1,367 1,465 1,597 5,045 4,480-11% Trailers 148 82 132 98 134 153 414 333-20% Containers 1,959 1,434 1,341 1,269 1,331 1,444 4,631 4,147-10% NW to SC Total 1,415 1,313 1,350 1,356 1,731 1,502 4,496 4,171-7% Trailers 1,369 1,308 1,309 1,348 1,698 1,486 4,376 4,142-5% Containers 46 5 41 8 33 16 120 29-76% NW to SE Total 974 1,229 918 1,087 1,151 1,150 3,043 3,466 14% Containers 974 1,229 918 1,087 1,151 1,150 3,043 3,466 14% NW to SW Total 3,242 3,518 3,383 3,594 3,582 3,718 10,207 10,830 6% Trailers 650 582 608 553 560 781 1,818 1,916 5% Containers 2,592 2,936 2,775 3,041 3,022 2,937 8,389 8,914 6% NW to WC Total 0 0 0 0 0 0 0 0 NA Containers 0 0 0 0 0 0 0 0 NA Second Quarter 2016 IANA 2016 19

South Central Region (SC) Includes: AR, LA, NM, OK, TX 15 16 15 16 15 16 15 16 Pct. Chg. SC Total Total 126,761 101,291 117,188 102,630 122,105 107,712 366,054 311,633-15% Outbound Trailers 9,755 5,032 9,806 4,664 9,517 5,071 29,078 14,767-49% Containers 117,006 96,259 107,382 97,966 112,588 102,641 336,976 296,866-12% SC Total Total 135,787 113,747 134,078 114,348 127,443 115,815 397,308 343,910-13% Inbound Trailers 8,513 5,706 8,757 5,471 9,051 5,773 26,321 16,950-36% Containers 127,274 108,041 125,321 108,877 118,392 110,042 370,987 326,960-12% SC to SC Total 5,846 6,515 5,026 6,158 4,721 6,578 15,593 19,251 23% Trailers 65 66 80 129 146 107 291 302 4% Containers 5,781 6,449 4,946 6,029 4,575 6,471 15,302 18,949 24% SC to EC Total 615 459 597 462 679 457 1,891 1,378-27% Trailers 112 0 105 0 111 0 328 0-100% Containers 503 459 492 462 568 457 1,563 1,378-12% SC to MC Total 1,558 1,208 1,999 1,386 2,403 1,858 5,960 4,452-25% Containers 1,558 1,208 1,999 1,386 2,403 1,858 5,960 4,452-25% SC to MW Total 22,807 18,154 22,350 18,709 22,561 19,316 67,718 56,179-17% Trailers 6,127 2,547 6,013 2,287 5,636 2,374 17,776 7,208-59% Containers 16,680 15,607 16,337 16,422 16,925 16,942 49,942 48,971-2% SC to MX Total 2,679 2,940 1,910 2,959 2,272 2,718 6,861 8,617 26% Trailers 0 0 0 0 0 10 0 10 NA Containers 2,679 2,940 1,910 2,959 2,272 2,708 6,861 8,607 25% SC to NE Total 5,066 4,462 5,374 4,601 5,788 5,457 16,228 14,520-11% Trailers 921 330 891 319 910 397 2,722 1,046-62% Containers 4,145 4,132 4,483 4,282 4,878 5,060 13,506 13,474 0% SC to NW Total 2,416 3,681 3,049 3,332 4,101 4,197 9,566 11,210 17% Containers 2,416 3,681 3,049 3,332 4,101 4,197 9,566 11,210 17% SC to SE Total 6,356 5,475 6,427 5,354 6,698 5,984 19,481 16,813-14% Trailers 291 212 455 184 501 242 1,247 638-49% Containers 6,065 5,263 5,972 5,170 6,197 5,742 18,234 16,175-11% SC to SW Total 79,030 57,966 70,029 59,326 72,396 60,754 221,455 178,046-20% Trailers 2,239 1,877 2,262 1,745 2,213 1,941 6,714 5,563-17% Containers 76,791 56,089 67,767 57,581 70,183 58,813 214,741 172,483-20% SC to WC Total 388 431 427 343 486 393 1,301 1,167-10% Containers 388 431 427 343 486 393 1,301 1,167-10% Second Quarter 2016 IANA 2016 20

Southeast Region (SE) Includes: AL, FL, GA, MS, NC, SC, TN 15 16 15 16 15 16 15 16 Pct. Chg. SE Total Total 197,302 185,897 195,979 184,960 200,746 190,865 594,027 561,722-5% Outbound Trailers 19,974 13,214 18,798 13,120 18,400 13,647 57,172 39,981-30% Containers 177,328 172,683 177,181 171,840 182,346 177,218 536,855 521,741-3% SE Total Total 198,366 192,372 199,372 193,641 203,573 198,064 601,311 584,077-3% Inbound Trailers 20,398 13,181 19,221 13,377 19,239 14,265 58,858 40,823-31% Containers 177,968 179,191 180,151 180,264 184,334 183,799 542,453 543,254 0% SE to SE Total 89,358 86,148 89,644 87,696 93,140 90,511 272,142 264,355-3% Internal Trailers 12,137 9,283 10,917 9,414 10,882 9,877 33,936 28,574-16% Containers 77,221 76,865 78,727 78,282 82,258 80,634 238,206 235,781-1% SE to EC Total 1,582 760 1,765 925 1,852 1,175 5,199 2,860-45% Trailers 762 0 927 0 981 0 2,670 0-100% Containers 820 760 838 925 871 1,175 2,529 2,860 13% SE to MC Total 689 564 680 765 669 645 2,038 1,974-3% Trailers 14 6 19 3 30 3 63 12-81% Containers 675 558 661 762 639 642 1,975 1,962-1% SE to MW Total 29,354 28,379 28,049 27,430 27,751 28,081 85,154 83,890-1% Trailers 3,907 1,340 3,350 1,376 3,079 1,283 10,336 3,999-61% Containers 25,447 27,039 24,699 26,054 24,672 26,798 74,818 79,891 7% SE to MX Total 720 787 615 771 657 766 1,992 2,324 17% Containers 720 787 615 771 657 766 1,992 2,324 17% SE to NE Total 20,101 18,976 21,465 18,926 21,640 19,652 63,206 57,554-9% Trailers 2,072 1,731 2,333 1,665 2,136 1,700 6,541 5,096-22% Containers 18,029 17,245 19,132 17,261 19,504 17,952 56,665 52,458-7% SE to NW Total 2,287 1,628 1,972 1,545 2,129 1,714 6,388 4,887-23% Trailers 2 2 1 0 9 3 12 5-58% Containers 2,285 1,626 1,971 1,545 2,120 1,711 6,376 4,882-23% SE to SC Total 8,741 7,897 8,070 6,432 7,979 7,215 24,790 21,544-13% Trailers 372 273 524 138 434 202 1,330 613-54% Containers 8,369 7,624 7,546 6,294 7,545 7,013 23,460 20,931-11% SE to SW Total 39,456 35,935 37,408 34,683 38,582 35,813 115,446 106,431-8% Trailers 708 579 727 524 849 579 2,284 1,682-26% Containers 38,748 35,356 36,681 34,159 37,733 35,234 113,162 104,749-7% SE to WC Total 5,014 4,823 6,311 5,787 6,347 5,293 17,672 15,903-10% Containers 5,014 4,823 6,311 5,787 6,347 5,293 17,672 15,903-10% Second Quarter 2016 IANA 2016 21

Southwest Region (SW) Includes: AZ, CA, NV 15 16 15 16 15 16 15 16 Pct. Chg. SW Total Total 288,155 263,012 289,884 266,305 284,960 279,389 862,999 808,706-6% Outbound Trailers 21,606 19,154 21,940 17,989 22,110 19,946 65,656 57,089-13% Containers 266,549 243,858 267,944 248,316 262,850 259,443 797,343 751,617-6% SW Total Total 283,463 243,304 270,419 247,045 283,097 259,235 836,979 749,584-10% Inbound Trailers 20,933 17,956 20,523 16,596 20,704 18,577 62,160 53,129-15% Containers 262,530 225,348 249,896 230,449 262,393 240,658 774,819 696,455-10% SW to SW Total 4,794 3,473 4,456 3,417 4,749 3,866 13,999 10,756-23% Internal Trailers 2,325 1,492 2,123 1,339 1,949 1,424 6,397 4,255-33% Containers 2,469 1,981 2,333 2,078 2,800 2,442 7,602 6,501-14% SW to EC Total 509 737 530 700 708 791 1,747 2,228 28% Containers 509 737 530 700 708 791 1,747 2,228 28% SW to MC Total 7,167 6,305 6,418 6,675 8,170 7,271 21,755 20,251-7% Trailers 71 58 114 46 184 75 369 179-51% Containers 7,096 6,247 6,304 6,629 7,986 7,196 21,386 20,072-6% SW to MW Total 131,381 125,233 131,888 123,193 130,575 130,730 393,844 379,156-4% Trailers 13,241 12,516 13,570 11,977 13,336 12,908 40,147 37,401-7% Containers 118,140 112,717 118,318 111,216 117,239 117,822 353,697 341,755-3% SW to MX Total 2,080 1,356 1,992 1,129 1,885 1,599 5,957 4,084-31% Trailers 2 0 0 0 0 0 2 0-100% Containers 2,078 1,356 1,992 1,129 1,885 1,599 5,955 4,084-31% SW to NE Total 16,097 15,012 16,001 15,578 16,336 17,971 48,434 48,561 0% Containers 16,097 15,012 16,001 15,578 16,336 17,971 48,434 48,561 0% SW to NW Total 4,342 4,481 4,199 4,643 4,770 4,878 13,311 14,002 5% Trailers 645 699 721 705 784 875 2,150 2,279 6% Containers 3,697 3,782 3,478 3,938 3,986 4,003 11,161 11,723 5% SW to SC Total 85,002 68,633 86,753 71,884 80,274 71,688 252,029 212,205-16% Trailers 2,435 2,348 2,588 2,190 3,006 2,382 8,029 6,920-14% Containers 82,567 66,285 84,165 69,694 77,268 69,306 244,000 205,285-16% SW to SE Total 36,778 37,781 37,645 39,082 37,488 40,594 111,911 117,457 5% Trailers 809 685 832 603 966 683 2,607 1,971-24% Containers 35,969 37,096 36,813 38,479 36,522 39,911 109,304 115,486 6% SW to WC Total 5 1 2 4 5 1 12 6-50% Containers 5 1 2 4 5 1 12 6-50% Second Quarter 2016 IANA 2016 22

Western Canada Region (WC) Includes: AB, BC, MB, NT, SK 15 16 15 16 15 16 15 16 Pct. Chg. WC Total Total 119,889 112,837 116,985 113,081 113,448 112,628 350,322 338,546-3% Outbound Trailers 193 227 236 187 202 168 631 582-8% Containers 119,696 112,610 116,749 112,894 113,246 112,460 349,691 337,964-3% WC Total Total 116,321 102,472 118,697 106,318 116,032 104,709 351,050 313,499-11% Inbound Trailers 2 1 1 0 0 1 3 2-33% Containers 116,319 102,471 118,696 106,318 116,032 104,708 351,047 313,497-11% WC to WC Total 29,395 26,622 27,338 25,227 27,176 26,011 83,909 77,860-7% Internal Trailers 2 0 1 0 0 0 3 0-100% Containers 29,393 26,622 27,337 25,227 27,176 26,011 83,906 77,860-7% WC to EC Total 53,476 50,194 51,256 50,356 51,508 53,494 156,240 154,044-1% Trailers 191 227 235 187 202 168 628 582-7% Containers 53,285 49,967 51,021 50,169 51,306 53,326 155,612 153,462-1% WC to MC Total 0 0 0 0 1 0 1 0-100% Containers 0 0 0 0 1 0 1 0-100% WC to MW Total 29,835 28,401 29,658 29,666 27,277 26,768 86,770 84,835-2% Containers 29,835 28,401 29,658 29,666 27,277 26,768 86,770 84,835-2% WC to MX Total 11 12 22 42 36 16 69 70 1% Containers 11 12 22 42 36 16 69 70 1% WC to NE Total 315 266 444 381 312 265 1,071 912-15% Containers 315 266 444 381 312 265 1,071 912-15% WC to NW Total 9 41 1 57 2 33 12 131 992% Containers 9 41 1 57 2 33 12 131 992% WC to SC Total 102 107 99 106 125 78 326 291-11% Containers 102 107 99 106 125 78 326 291-11% WC to SE Total 6,746 7,194 8,167 7,246 7,010 5,963 21,923 20,403-7% Containers 6,746 7,194 8,167 7,246 7,010 5,963 21,923 20,403-7% WC to SW Total 0 0 0 0 1 0 1 0-100% Containers 0 0 0 0 1 0 1 0-100% Second Quarter 2016 IANA 2016 23

Major Intermodal Corridors 15 16 15 16 15 16 15 16 Pct. Chg. Midwest-Southwest 264,148 246,216 263,247 246,899 270,306 260,742 797,701 753,857-5.5% Trailers 26,723 24,879 26,971 23,610 27,017 25,314 80,711 73,803-8.6% Containers 237,425 221,337 236,276 223,289 243,289 235,428 716,990 680,054-5.2% MW to SW 132,767 120,983 131,359 123,706 139,731 130,012 403,857 374,701-7.2% Trailers 13,482 12,363 13,401 11,633 13,681 12,406 40,564 36,402-10.3% Containers 119,285 108,620 117,958 112,073 126,050 117,606 363,293 338,299-6.9% SW to MW 131,381 125,233 131,888 123,193 130,575 130,730 393,844 379,156-3.7% Trailers 13,241 12,516 13,570 11,977 13,336 12,908 40,147 37,401-6.8% Containers 118,140 112,717 118,318 111,216 117,239 117,822 353,697 341,755-3.4% Northeast-Midwest 180,342 174,089 175,418 174,091 181,670 180,826 537,430 529,006-1.6% Trailers 25,615 15,721 25,846 15,684 27,136 16,111 78,597 47,516-39.5% Containers 154,727 158,368 149,572 158,407 154,534 164,715 458,833 481,490 4.9% MW to NE 95,012 94,662 93,769 94,654 98,538 99,184 287,319 288,500 0.4% Trailers 12,505 7,547 12,636 7,880 13,384 7,695 38,525 23,122-40.0% Containers 82,507 87,115 81,133 86,774 85,154 91,489 248,794 265,378 6.7% NE to MW 85,330 79,427 81,649 79,437 83,132 81,642 250,111 240,506-3.8% Trailers 13,110 8,174 13,210 7,804 13,752 8,416 40,072 24,394-39.1% Containers 72,220 71,253 68,439 71,633 69,380 73,226 210,039 216,112 2.9% South Central-Southwest 164,032 126,599 156,782 131,210 152,670 132,442 473,484 390,251-17.6% Trailers 4,674 4,225 4,850 3,935 5,219 4,323 14,743 12,483-15.3% Containers 159,358 122,374 151,932 127,275 147,451 128,119 458,741 377,768-17.7% SC to SW 79,030 57,966 70,029 59,326 72,396 60,754 221,455 178,046-19.6% Trailers 2,239 1,877 2,262 1,745 2,213 1,941 6,714 5,563-17.1% Containers 76,791 56,089 67,767 57,581 70,183 58,813 214,741 172,483-19.7% SW to SC 85,002 68,633 86,753 71,884 80,274 71,688 252,029 212,205-15.8% Trailers 2,435 2,348 2,588 2,190 3,006 2,382 8,029 6,920-13.8% Containers 82,567 66,285 84,165 69,694 77,268 69,306 244,000 205,285-15.9% East-West Canada 109,220 101,261 106,119 102,647 106,867 104,775 322,206 308,683-4.2% Trailers 191 228 235 187 202 169 628 584-7.0% Containers 109,029 101,033 105,884 102,460 106,665 104,606 321,578 308,099-4.2% EC to WC 55,744 51,067 54,863 52,291 55,359 51,281 165,966 154,639-6.8% Trailers 0 1 0 0 0 1 0 2 NA Containers 55,744 51,066 54,863 52,291 55,359 51,280 165,966 154,637-6.8% WC to EC 53,476 50,194 51,256 50,356 51,508 53,494 156,240 154,044-1.4% Trailers 191 227 235 187 202 168 628 582-7.3% Containers 53,285 49,967 51,021 50,169 51,306 53,326 155,612 153,462-1.4% Midwest-Northwest 79,867 75,370 81,614 77,375 80,485 79,281 241,966 232,026-4.1% Trailers 6,066 5,851 5,610 5,447 5,847 5,934 17,523 17,232-1.7% Containers 73,801 69,519 76,004 71,928 74,638 73,347 224,443 214,794-4.3% MW to NW 36,269 34,053 38,716 35,352 36,427 36,221 111,412 105,626-5.2% Trailers 3,083 3,061 2,969 2,816 3,079 3,190 9,131 9,067-0.7% Containers 33,186 30,992 35,747 32,536 33,348 33,031 102,281 96,559-5.6% NW to MW 43,598 41,317 42,898 42,023 44,058 43,060 130,554 126,400-3.2% Trailers 2,983 2,790 2,641 2,631 2,768 2,744 8,392 8,165-2.7% Containers 40,615 38,527 40,257 39,392 41,290 40,316 122,162 118,235-3.2% Southeast-Southwest 76,234 73,716 75,053 73,765 76,070 76,407 227,357 223,888-1.5% Trailers 1,517 1,264 1,559 1,127 1,815 1,262 4,891 3,653-25.3% Containers 74,717 72,452 73,494 72,638 74,255 75,145 222,466 220,235-1.0% SE to SW 39,456 35,935 37,408 34,683 38,582 35,813 115,446 106,431-7.8% Trailers 708 579 727 524 849 579 2,284 1,682-26.4% Containers 38,748 35,356 36,681 34,159 37,733 35,234 113,162 104,749-7.4% SW to SE 36,778 37,781 37,645 39,082 37,488 40,594 111,911 117,457 5.0% Trailers 809 685 832 603 966 683 2,607 1,971-24.4% Containers 35,969 37,096 36,813 38,479 36,522 39,911 109,304 115,486 5.7% Intra-Southeast 89,358 86,148 89,644 87,696 93,140 90,511 272,142 264,355-2.9% SE to SE 89,358 86,148 89,644 87,696 93,140 90,511 272,142 264,355-2.9% Trailers 12,137 9,283 10,917 9,414 10,882 9,877 33,936 28,574-15.8% Containers 77,221 76,865 78,727 78,282 82,258 80,634 238,206 235,781-1.0% Second Quarter 2016 IANA 2016 24

Participating Railroads BNSF Railway CN Canadian Pacific Railway CSX Intermodal Ferromex Florida East Coast Railway Kansas City Southern Railway Norfolk Southern Corporation Union Pacific Railway Second Quarter 2016 Report Participating IMCs APL Logistics Celtic International Echo Global Logistics, Inc. Hub Group Independent Dispatch, Inc. Integra Logistics Services, LLC Knichel Logistics Legacy Supply Chain Services Matson Logistics Mode Transportation TTS, LLC XPO Logistics Wheels Clipper, Inc. Notes to Report 1) This report reflects data submitted by the above railroads and IMCs to the Intermodal Association of North America. It represents the best available information on regional intermodal traffic movements. 2) Some region-to-region flows are inflated because this data includes rebills across major interchange points (as is the case with the AAR Weekly Railroad Traffic Report). Some railroads are unable to provide ultimate origins and/or destinations. 3) In this edition of the Intermodal Market Trends & Statistics Report, data from the Ferromex and Kansas City Southern Railways have been added. As a result, the figures for 2015 have been restated. 3) Explanatory Notes for Intermodal Section: An Intermodal Shipment is any load that is lifted on or off a steel-wheeled rail platform at origin and/or destination of a shipment or any movement under a revenue waybill. A Rail-controlled Unit is a piece of equipment owned or paid for by a rail carrier for at least the reported waybill move. A Private Unit is any piece of equipment other than a Rail-controlled Unit. A container moving on a chassis is reported as a container. A very small number of 57-foot trailers and containers is counted in the 53-foot trailer and container totals. Data includes empty movement only when it is a revenue generating move. Railroad movement of rail controlled empties is not counted. Roadrailer movements are included in the trailer data. 4) Explanatory Notes for Trucking Industry Outlook as provided by FTR Associates: Tractor/Trailer Loads Originated is the estimated number of tractor/trailer loads originated in the United States plus loads that come to U.S. destinations from Mexico and Canada. It is tons divided by the average tons per trailer. Truck Utilization Rate calculates the percentage of the total population of trucks required to move the U.S. truck freight. In general, a figure above 90% indicates a tight market where the majority of the truck population is at work. A figure below 85% indicates a weak market where a significant portion of the truck population is idle. The Truck Share of Employment Index indicates the number of actual drivers versus the Available Driver Pool (see Driver Labor Availability Index). When rising it is becoming increasingly more difficult to find/hire the next driver, converse when falling. Driver Shortage/Surplus is the number of drivers needed to be added/(subtracted) in relation to freight demand. When negative it is basically the backlog of drivers needed to be filled. The Driver Labor Availability Index measures the relative pool of people available to be hired as drivers. When rising the supply of available persons to be a driver is growing, converse when falling. Average Length-of-Haul represents ton miles divided by tons. The Intermodal Market Trends & Statistics Report is prepared for IANA by: TTX Company www.ttx.com FTR Associates http://www.ftrintel.com (trucking industry outlook section and related charts) Data collection, report production and distribution are handled by IANA. For more information on participating or methodology, please contact Art Cleaver, Membership and Marketing Coordinator, at 301-982-3400, ext. 346. Copyright 2016, Intermodal Association of North America. Reproduction in whole or part without written permission is prohibited. Report covers the secondquarter of 2016. Report is available on a subscription basis (members $395; non-members $695). Single copies are available at $129 per copy for members, $179 for non-members. Order information is available online at http://www.intermodal.org/membership/eweb/store.php or by contacting IANA at 11785 Beltsville Drive, Suite 1100, Calverton, MD 20705-4048 301-982-3400, ext. 346 IANA@intermodal.org. Second Quarter 2016 IANA 2016 25