J.B. Hunt Transport Services, Inc.

1
J.B. Hunt Transport Services, Inc.
2
Economic Factors

• Inflation is in check?
• Interest rates will stay the same.maybe?
• Housing market is down6.3 month supply of unsold
  new homes.
• Automotive sector is down. Toyota Ford talking
• Inventories are lower
• Fuel prices.who knows?
• 3 Trillion of adjustable rate mortages due in
  2007

3
U.S. Shippers Supply Chain is changing

• Mode conversion (Truck to Rail Truck to
  Dedicated)
• Less plant transfersmore customer direct
  shipments
• Improved packaging to utilize cube
• All water shipping to east coast ports
  
• Increased use of intact ocean containers inland
• Shippers are manufacturing products closer to
  their customers
• Customers are taking miles/loads out of their
  supply chain
• Rate increases by steamship lines to their
  customers
• Rate increases by railroads to steamship
  lines..25?

4
Transportation Industry Challenges for 2007

• Maintain Safe Operations
• Offset Costs increases
• HOS (Hours Of Service)
  Restrictions Compliance
• Driver Pay Retention
• Driver Shortage
• Restraining Capacity Adds
• Escalating Insurance
  Workers Comp

Quality Driver
5
(No Transcript)
6
New HOS - Length of Haul Impact

• Shorter LOHs have a larger impact on MPH
• Specifically 225-375 mile
• MPH is primarily affected by the need for an
  additional driver break period.

More concern due to shorter length-of-haul
7
How Can our Customers Help Increase Capacity
Mitigate Costs?

• Smooth freight movements over entire week,
  to include weekends
• Manipulate shipments to take advantage of
  weekends for longer moves (LOH)
• Explore alternate modes (Intermodal, OSG
  or Dedicated Contract Services)
• Timely Loading Unloading (Live or Drop)
  Encourage Trading
  Partners to do the same
• Year Round Reservation Compliance
• Booking Freight 24 to 48 Hours in Advance
• Allowing Drivers to Take Breaks
• at your Facilities

8
Driver Shortage
9
Driver Shortage for Long-haul TL Drivers
Source Global Insight, Inc. for ATA
10
Ugly Driver Demographics Will
Persist Through 2010

• Males, ages 20-44 52.3 mil. in 2000 52.7 mil.
  in 2010 0.1 CAGR CAGR Compound Annual
  Growth rate
• Females, ages 20-44 51.8 mil. in 2000 51.7 mil.
  in 2010
• At 3 GDP growth, driver availability would be
  34 worse by 2010 GDP Gross Domestic
  Product
• Males, ages 20-34 0.4 CAGR, going from 29.9
  mil. to 31.1 mil. by 2010 - the only hope-
  demographic is still growing at less than half
  the rate of GDP growth
• Average age of a Teamster driver is 57 years!
• Source U.S. Census Bureau

11
Our J.B. Hunt Mission
We forge long-term partnerships with key
customers that include supply chain management as
an integral part of their strategy. Working in
concert, we drive out cost, add value, and
function as an extension of their enterprise.
12
Customer Value DeliveryTM
13
Intermodal Segment - Snapshot
(as of Sept 30, 2006)

• LTM revenue of 1,403 million
• LTM operating income of 163 million
• 26,263 containers
• 1,518 company tractors
• 1,945 professional company and IC drivers
• Average container age 6.7 yrs
• Average tractor age 3.0 yrs

14
North American Intermodal Network
BNSF NS CSXI UP CN KCS
15
Operational Advantages
Dedicated Staging Areas at Congested Terminals
On-Site Railroad Logistics, at J.B. Hunt
Express Lane at Congested Ramps
Priority Space on BNSF COFC/TOFC Trains
16
Loads
Confidential
17
JBHT/BNSF Service Offering
18
Intermodal Strategy - 2007

• Provide best service in the Industry
• Sell Boxes in Defined Lanes
• Increase Asset Utilization
• Box Turns / 2.2 Per Month
• Dray Fleets / Touring, Empty Legs
• Port to Door
• Control Eliminate Cost
• Add 1200 Containers
• Add 200 JB Hunt Dray Tractors
• Add new accounts!

19
Dedicated Segment - Snapshot

• LTM revenue 904 million
• 5,267 tractors
• 12,419 effective trailers
• 5,657 professional drivers
• Average tractor age 3.0 yrs
• Average trailer age 4.4 yrs

20
What We Do
21
DCS Footprint
300 Dedicated Locations
22
DCS Delivers!
We wanted innovation, a different way of
approaching things. J.B. Hunt brought that to us.
We wanted a proven leader, someone to provide
vision and strategies for our entire supply
chain.
Our business is very complex, and we wanted a
transportation partner that was the right fit for
us. J.B. Hunt was that fit.
We know theyre not trying to sell us services
theyre trying to help us make the best decisions
for us. Thats the nature of a true partnership.
J.B. Hunt has done a terrific job coming in to
our system and helping us double the number of
stores without losing our service edge.
J.B. Hunt understood our business and what we
needed to achieve.
23
Truck Segment Snapshot
(as of Sept. 30, 2006)

• LTM revenue of 1,052 million
• LTM operating income of 112 million
• 4,358 conventional company tractors
• 944 independent contractors
• 13,345 effective trailers
• 6,141 professional company and IC drivers
• Average tractor age 1.6 yrs
• Average trailer age 5.9 yrs

24
Strong Safety Track Record
We have significantly improved our safety record
Safety Factor Analysis of 13 Major Carriers
(Average Ranking on 8 Safety Factors - Lower is
better)
Source Department of Transportation websites
(http//www.safersys.org and http//ai.fmcsa.dot.g
ov aka-SAFESTAT). The SAFESTAT
data is updated quarterly and was last updated
June 24, 2005. The accident SEA value
has been removed from SafeStat. The
most recent value for each carrier has been used
in these calculations.
25
Truck Strategy - 2007

• Safety
• Increase our EDI/Process Automation by 20
• Stay true to JBHT Reservation process
• On Time Pick up and Delivery Service 96-98
• Asset Utilization
• Grow our regional fleets!!
• Cost Control

26
OSG - Service Offerings

• Service to all 50 States, Canada, and Mexico
• Dry Van Services
• Dedicated Fleets
• Short and Long-Term
• Utilize Current Trailing Fleet
• Provide Trailing Equipment
• Expedited and Team Services
• Flatbed Services
• Refrigerated Services
• LTL Services
• Intermodal Door to Door Services 40, 48, 53
• Routing Guide Execution

OSG - Outsourcing Services Group
27
Customer Focused Transactions

• J.B. Hunt makes the transaction easy for you.

• You get peace of mind and a comprehensive
  capacity solution.

28
Self Service Made Simple www.jbhunt.com