Special Committee on Intermodal Transportation and Economic Expansion Workshop October 23, 2009 Patrick E. Quinn Co-Chairman & President U.S. Xpress Enterprises

Industry Facts Represents roughly 5% of the nation’s gross domestic product (GDP) $660 billion industry, hauling 10.2 billion tons of freight annually 8.9 million people throughout the economy employed in trucking jobs 3.5 million truck drivers, including local & over-the-road

Industry Facts Operates 2.0 million truck-tractors and 7.0 million total heavy duty commercial trucks Class 8 trucks log 139 billion miles annually Consumes 39 billion gallons of diesel annually Exclusively serves over 80% of communities in the U.S.

Distribution of Tonnage by Mode: 2008 vs 2020 Source: U.S. Freight Transportation Forecast to…

Sources: Department of Labor and ATA U.S. For-Hire Trucking Employment Through September 2009 Thousands Lowest level since 1995

Sources: S&P/Case-Shiller National Index and ATA Housing Price Index Average Annual Growth Rate: 4.4% Average Annual Growth Rate: 15.0% Average Annual Growth Rate: -9.4% 2006 – 2009:Q2

Sources: Federal Reserve Board and ATA U.S. Manufacturing Production Through August 2009; 2000 = % drop peak-to-trough 17.3% drop peak-to-trough

Sources: Department of Commerce and ATA Total Business Inventories-to- Sales Ratio (Includes retail, wholesale, and manufacturing; Through August 2009) Significant progress has been made to clear out bloated inventories.

Source: ATA ATA’s For-Hire Truck Tonnage Index Seasonally Adjusted; 2000 = 100 Through August 2009 Aug: -7.5% from Aug 2008 Looks like a bottom, finally.

Source: ATA ATA’s For-Hire Truck Revenue Index 2000=100; Through August 2009 Aug: -24.9% from Aug 2008

Source: Avondale Partners, LLC Trucking Failures Failures only includes fleets with at least five trucks Failures are surprisingly low, but truck counts are more important than the number of carriers that fail.

Source: ATA’s Trucking Activity Report Fleets Continue to Downsize ! This slide shows the change in the fleet size for those TL carriers that are surviving. It is not total industry capacity, which has fallen significantly more. Cumulative DecreaseAug 2009 vs Aug 2008

Source: Wards U.S. Class 8 Truck Sales No Pre-buy Here Monthly Retail Sales; Through August 2009 Truck sales are running well below historical replacement rates.

Source: Energy Information Administration On-Highway Diesel Prices Price Per Gallon Record: $4.76 (07/14/08) $2.58 (10/5/09)

Top Industry Issues Economy 2.Government Regulation 3.Fuel Issues 4.Congestion/Highway Infrastructure 5.Hours of Service 6.Commercial Driver Issues 7.Environmental Issues 8.Tolls/Highway Funding 9.Truck Size and Weight 10.Onboard Truck Technology

Congestion/Highway Infrastructure FHWA report on top highway bottlenecks 226 Million Hours Lost Annually Cost $19 Billion/year (ATRI) Physical bottlenecks account for 40% of congestion ATA supports diesel tax increase provided funds dedicated to addressing bottlenecks

Tolls/Highway Funding Fuel tax fairest, most efficient source of funding for highways Oppose tolls on existing highways High administrative costs Cause diversion to local roads Oppose privatization of existing highways Would consider supporting shipper fees provided truck driver/carrier is not tax collector and no serious administrative/collection issues Revenue should go to freight infrastructure projects proportionate to modal contribution

Truck Size and Weight Reforms can produce safety, energy & emissions, economic benefits ATA supports a process under which states can petition the federal government for regulatory relief Support state option – no mandates

Commission Freight Recommendations Create and fund a national freight transportation program in conjunction with States and metropolitan areas and consistent with a National Freight Transportation Plan, that eliminates chokepoints and increases throughput Federal grants for meritorious projects Establish dedicated freight fund