Ask The Experts May 28, 2020 Webinar will start at 11:00 AM EDT - PowerPoint PPT Presentation

Ask The Experts May 28, 2020 Webinar will start at 11:00 AM EDT Clayton Slaughter Avery Vise Eric Starks Jonathan Starks Chief Strategy Officer VP, Trucking Chairman & CEO Chief Intelligence Officer

Upcoming Content: Today – May 28 th Trucking Update Truck & Trailer Outlook SOFI: Known Unknowns Weekly Transportation Update June 4 th CV Market Update Webinar June 4 th Shippers Update Rail Update Intermodal Report Weekly Transportation Update June 11 th Rail Carload Outlook July 9 th **Key Issues in Transportation** 2

ASK THE EXPERT AGENDA § Economic update § Modal Conditions § Trucking § Rail/Intermodal § Known Unknowns: Coming into focus § Open Q&A § Submit your questions at any time in the Question pane of the GoToWebinar system 3

UNEMPLOYMENT DURING COVID-19 Weekly initial claims for unemployment insurance, seasonally adjusted 8,000,000 6,867,000 Note: Seasonal adjustments inflate 6,615,000 7,000,000 initial claims filed since week ended March 14 by ~ 3.5 million. 6,000,000 5,237,000 5,000,000 4,442,000 3,867,000 4,000,000 3,307,000 3,176,000 2,687,000 2,446,000 3,000,000 2,123,000 2,000,000 Previous High = 695,000 in October 1982 1,000,000 0 3/21/2020 3/28/2020 4/4/2020 4/11/2020 4/18/2020 4/25/2020 5/2/2020 5/9/2020 5/16/2020 5/23/2020 Source: U.S. Department of Labor, FTR 4

UNEMPLOYMENT DURING COVID-19 Weekly continued claims for unemployment insurance, seasonally adjusted 30,000,000 Note: Seasonal adjustments inflate 24,912,000 current claims figure by ~ 2 million. 25,000,000 22,377,000 22,548,000 21,052,000 20,000,000 18,011,000 15,819,000 15,000,000 11,914,000 10,000,000 7,446,000 5,000,000 3,059,000 Previous High = 6,635,000 in May 2009 0 3/21/2020 3/28/2020 4/4/2020 4/11/2020 4/18/2020 4/25/2020 5/2/2020 5/9/2020 5/16/2020 Source: U.S. Department of Labor, FTR 5

DURABLE GOOD ORDERS – TOTAL In billions, seasonally adjusted $325 40% $300 30% $275 20% $250 10% $225 0% $200 -10% $175 -20% April 2020 Orders: $169.9 billion $150 Y/Y: 29.3% -30% Y/Y change Total M/M: 17.2% $125 -40% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Census Bureau, FTR 6

DURABLE GOOD ORDERS – EX. TRANS Excluding transportation , in billions, seasonally adjusted $175 30% $165 20% $155 10% $145 0% $135 -10% $125 -20% April 2020 Orders: $143.3 billion $115 -30% Y/Y: 9.3% Y/Y change Total M/M: 7.4% $105 -40% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Census Bureau, FTR 7

FREIGHT RECOVERY 8

COVID-19 Truck Freight Recovery Index Total (100 = Full recovery to pre-pandemic volumes) 120 Full Recovery 100 Phase 80 Restart 60 Phase 40 Shutdown Phase 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 / / / / / / / / / / / / / / / / / / / / / / 3 0 7 4 2 9 6 3 0 6 3 0 7 4 1 8 5 1 8 5 2 9 1 1 2 1 2 3 1 2 2 1 1 2 1 2 2 / / / / / / / 2 3 3 4 5 6 6 / / / / / / / / / / / / / / / 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 Last Updated: 5/25/2020 Source: Truckstop.com Spot Market Insights Analysis by FTR | Transportation Intelligence™

COVID-19 Truck Freight Recovery Index Dry Van (100 = Full recovery to pre-pandemic volumes) 140 Restocking 120 Effect Full Recovery 100 Phase 80 Restart Phase 60 Shutdown Phase 40 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 / / / / / / / / / / / / / / / / / / / / / / 3 0 7 4 2 9 6 3 0 6 3 0 7 4 1 8 5 1 8 5 2 9 1 1 2 1 2 3 1 2 2 1 1 2 1 2 2 / / / / / / / 2 3 3 4 5 6 6 / / / / / / / / / / / / / / / 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 Last Updated: 5/25/2020 Source: Truckstop.com Spot Market Insights Analysis by FTR | Transportation Intelligence™

COVID-19 Truck Freight Recovery Index Refrigerated (100 = Full recovery to pre-pandemic volumes) 180 160 Restocking Effect 140 120 Full Recovery 100 Phase 80 Restart Phase 60 Shutdown Phase 40 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 / / / / / / / / / / / / / / / / / / / / / / 3 0 7 4 2 9 6 3 0 6 3 0 7 4 1 8 5 1 8 5 2 9 1 1 2 1 2 3 1 2 2 1 1 2 1 2 2 / / / / / / / 2 3 3 4 5 6 6 / / / / / / / / / / / / / / / 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 Last Updated: 5/25/2020 Source: Truckstop.com Spot Market Insights Analysis by FTR | Transportation Intelligence™

COVID-19 Truck Freight Recovery Index Flatbed (100 = Full recovery to pre-pandemic volumes) 120 Full Recovery 100 Phase 80 Restart 60 Phase 40 Shutdown Phase 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 / / / / / / / / / / / / / / / / / / / / / / 3 0 7 4 2 9 6 3 0 6 3 0 7 4 1 8 5 1 8 5 2 9 1 1 2 1 2 3 1 2 2 1 1 2 1 2 2 / / / / / / / 2 3 3 4 5 6 6 / / / / / / / / / / / / / / / 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 Last Updated: 5/25/2020 Source: Truckstop.com Spot Market Insights Analysis by FTR | Transportation Intelligence™

COVID-19 Rail Freight Recovery Index N.A. Intermodal (100 = Full recovery to pre-pandemic volumes) 110 105 Full Recovery 100 Phase 95 Restart Phase 90 Shutdown Phase 85 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 / / / / / / / / / / / / / / / / / / / / / / / / / 1 8 7 4 2 9 6 1 8 5 5 2 9 4 1 8 1 8 5 6 3 0 3 0 7 1 1 2 / / 1 2 2 / 1 2 2 / 1 1 2 / / 1 2 3 / 1 2 2 2 2 3 4 5 5 6 / / / / / / / / / / / / / / / / / / 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 Last Updated: 5/27/2020 Source: AAR, FTR Analysis by FTR | Transportation Intelligence™ of AAR Weekly Rail Traffic Report

COVID-19 Rail Freight Recovery Index N.A. Carload (100 = Full recovery to pre-pandemic volumes) 105 Full Recovery 100 Phase 95 Restart 90 Phase 85 Shutdown 80 Phase 75 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 / / / / / / / / / / / / / / / / / / / / / / / / / 1 8 7 4 2 9 6 1 8 5 5 2 9 4 1 8 1 8 5 6 3 0 3 0 7 1 1 2 / / 1 2 2 / 1 2 2 / 1 1 2 / / 1 2 3 / 1 2 2 2 2 3 4 5 5 6 / / / / / / / / / / / / / / / / / / 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 Last Updated: 5/27/2020 Source: AAR, FTR Analysis by FTR | Transportation Intelligence™ of AAR Weekly Rail Traffic Report

A surprising trend… Intermodal: Trailers on Flat Cars N.A. Trailer Loadings 4 Week Avg. Ending 05/23/20 0% 30 -5% 28 -10% 26 Thousands -15% 24 Y/Y % -16.6% -20% 22 -25% 20 -30% 18 -35% 16 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 / / / / / / / / / / / / / / / / / / / / / / / / / / 1 5 9 3 7 0 4 7 1 5 9 2 6 0 4 8 1 5 8 2 7 1 4 8 2 6 / 1 2 1 2 1 2 / 2 / 1 / 1 3 1 2 1 2 / 2 / 2 / 1 / 1 6 9 0 1 2 3 4 5 / / / / / / / / / / / / / / / / / / 6 6 7 7 8 8 9 1 0 1 1 1 2 2 1 1 2 3 4 5 1 1 1 1 1 Carloads Vs. Prev. Year Carloads 5 Year Average - 4 Week Mov Avg. Last Updated: 5/27/2020 Source: AAR, FTR Analysis by FTR | Transportation Intelligence™ of AAR Weekly Rail Traffic Report

KNOWN UNKNOWNS: WHAT DO I FOCUS ON OVER THE NEXT 3 MONTHS?

Known Unknowns Key Elements • Virus Trajectory • Employment • Restart & the PPP Bridge • Stimulus • Sentiment 17 17

Known Unknowns – Long Term • Supply Chain Diversification • Reshoring • Infrastructure Bill • Remote work culture shift • Federal Deficit 18 18

Q & A § Type a question into the `Question’ pane. We will attempt to answer as many of your questions as time permits 19