Carrier direct 2h14 outlook for the transport and logistics market

All rights reserved by CarrierDirect, LLC, 2014
Outlook for the Domestic Transport
and Logistics Market in 2H14 and Beyond
July 2014
@CarrierDirect
CarrierDirect
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Bringing fresh perspectives to the
transportation and logistics industry.

The 2014 Freight Market Outlook
4
What The Industry Looks Like Halfway Through 2014
Key Trends On The Horizon For 2H14 and Beyond
Strategic Priorities Leadership Should Have On Their Agendas

How The Industry Looks From A Few Different Angles
Truckload Asset-Light
Less-than-
Truckload
Third-Party
Logistics
US
Economy

Q1 Was A Frozen Nightmare, But Prospects Of Life For The Rest of The Year
Seasonally Adjusted US GDP from Q2 2010 – 2014
Source: Bureau of Economic Analysis, 6/25/14 Q1 14 Revised Estimate
ATA Monthly Truck Tonnage Index (2007 – Present)
%ChangeinRealGDP(SeasonallyAdjusted)
3.9
2.8 2.8
-1.3
3.2
1.4
4.9
3.7
1.2
2.8
0.1
1.1
2.5
4.1
2.6
-2.9
3.5
2.7
3
-4
-3
-2
-1
0
1
2
3
4
5
6
Q2-2010
Q3-2010
Q4-2010
Q1-2011
Q2-2011
Q3-2011
Q4-2011
Q1-2012
Q2-2012
Q3-2012
Q4-2012
Q1-2013
Q2-2013
Q3-2013
Q4-2013
Q1-2014
Q2-2014(Est)
Q3-2014(Est)
Q4-2014(Est)
The aftermath of one of
the most brutal winters
in recent memory
Moderate estimates for
remainder of 2014
TL
Asset-
Light
LTL 3PLEconomy
95
100
105
110
115
120
125
130
135
Source: American Trucking Associations, Transport Topics
2007 2008 2009 2010 2011 2012 2013 2014
TruckTonnageIndex(2000=100)
Continued strong freight levels
keeping trucking companies busy
2009 starting to
seem like just
a bad dream

Freight Stocks Continued To Be A Mixed Bag Of Investment Quality
Source: Yahoo Finance
ODFL (LTL)
ABFS (LTL)
SAIA (LTL)
HTLD (TL)
SWFT (TL)
ECHO (3PL)
XPO (3PL)
RRTS (AL)
YRCW (LTL)
CHRW (3PL)
CGI (TL)
WERN (TL)
S&P
0
50
100
150
200
250
Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14
StockIndex(7/1/2013=100)
TL
Asset-
Light
LTL 3PLEconomy

Key Themes On Everyone’s Minds In The Truckload Market
TL
Asset-
Light
LTL 3PLEconomy
Driver recruitment and retention is still the biggest issue, as thousands of seats go unfilled due to
prospective drivers being kept out of the industry by new government regulation, increased company
scrutiny and the allure of comparable “blue collar” jobs with better lifestyles
1
High levels of uncertainty around how FMCSA changes will affect the “day-to-day” of trucking operations,
leaving many small trucking companies worried if they’ll still be able to compete as more regulation rolls out
2
Trucking companies (and LTL guys, too) making decision to allocate assets to dedicated lanes as
they’re able to grab more revenue per mile from long-term commitments with customers
3
A lot of opportunity to convert loads to intermodal, but not able to do as much as there should be
due to rail line congestion, not having enough equipment and allocating assets towards bulk markets
4

It’s So Glamorous, Why Don’t More People Want To Drive Trucks?
TL
Asset-
Light
LTL 3PLEconomy
Sleeping in their cab at
night, often having to go
for days without showering
Driving for hours in a cramped cab,
many get a dog for companionship
Truck stops are a source
for fuel, showering and
relaxing after long hauls
And a spot to meet with other people
who live on the road (where they talk
about which Brokers or Shippers
they like or hate to work with)
State Of the Driver: By The Numbers
Source: Bureau of Labor Statistics, YRCW, The National
Transportation Institute, Transport Topics, HealtheSignals
*Note: For Heavy and Tractor-Trailer Drivers in the US
 Number of Drivers* +1.7M
 Drivers That Are Male 94.6%
 Average Pay (Dry Van) $48K
 Over The Age of 45 56%
 Suffers From Pre-Hyper 87%
Tension or Hypertension
 Obese / Morbidly Obese 75%
 Driver Life Expectancy Early 60’s
 Drivers Needed Over 96,178
Next 10 Years

With Huge Fragmentation, Widespread Changes In TL Takes Years To Realize
Carrier
2013
Revenue*
Share
of Market
 $3,052M
 $2,320M
 $1,642M
 1,622M
 $1,606M
0.99%
0.75%
0.53%
0.53%
0.52%
Source: Journal of Commerce, Company 10K Reports, Internal Estimates
Change
from 2012
+1.5%
+1.3%
(2.46%)
+3.8%
(4.4%)
Carrier
2013
Revenue*
Share
of Market
 $1,480M
 $1,478M
 $1,152M
 $1,071M
 $1,008M
0.48%
0.48%
0.37%
0.35%
0.33%
Change
from 2012
(9.2%)
7.7%
7.6%
0.8%
0.9%
$291,186M 94.67%Every Other TL Carrier 
*Includes non-Truckload revenue in figures (approximate total)
TL
Asset-
Light
LTL 3PLEconomy

Linehaul Rates In the Truckload Market Continue On A Steady Incline
TL
Asset-
Light
LTL 3PLEconomy
Nationwide Broker Spot Linehaul TL Rates
(July 2013 – July 2014)
Source: DAT, DW
Nationwide Shipper Contract Linehaul TL Rates
(June 2013 – June 2014)
Source: DAT, DW
Van FB Reefer Intermodal
$0.65
$0.85
$1.05
$1.25
$1.45
$1.65
$1.85
$2.05
$2.25
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2013 2014
$0.65
$0.85
$1.05
$1.25
$1.45
$1.65
$1.85
$2.05
$2.25
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Van FB Reefer
2013 2014
Steady increases in rates as
capacity continues to be tight
Truckers continuing to go back to
shippers / 3PLs multiple times per
year to renegotiate rate agreements

LTL Carriers Feeling Good With More Freight In Networks and Pricing Power
TL
Asset-
Light
LTL 3PLEconomy
The new challenge: how to deal with the problem of having too much freight in their networks and the
right way to “purge” the bad freight strategically that won’t backfire when freight levels ease
1
LTL carriers being affected by the good and bad spillover from the truckload market: huge challenge in
finding Linehaul drivers (P&D not so much a problem), but also getting the potential benefit from the freight
spillage that moves from truckload to LTL (but again, see trend #1)
2
Tech is the next big initiative for LTL carriers who see the writing on the wall that the better they know
their network the better they’ll be able to generate profit (if management makes the right decisions with it)
3

New Leaders In Market And Consolidation May Pave Way For Change in LTL
Carrier
2013
Revenue*
Share
of Market
 $5,095M
 $3,466M
 $3,127M
 2,502M
 $2,126M
14.47%
9.85%
8.88%
7.11%
6.04%
Source: Journal of Commerce, Company 10K Reports, Internal Estimates
Change
from 2012
+1.7%
+2.2%
(1.9%)
+5.2%
+9.5%
Carrier
2013
Revenue*
Share
of Market
 $1,835M
 $1,730M
 $1,721M
 $1,298M
 $1,139M
5.21%
4.91%
4.89%
3.69%
3.24%
Change
from 2012
+4.8%
+5.4%
+3.1%
+3.8%
+3.7%
$11,161M 31.71%Every Other LTL Carrier 
*Includes ancillary business unit revenue in some cases
TL
Asset-
Light
LTL 3PLEconomy

LTL Carriers Getting Good Freight From Third-Party Logistics Companies
Source: CD LTL Benchmarking For 3PLs – 2014
Inbound % of Total
TX 15.36%
CA 14.49%
FL 4.89%
IL 4.73%
OH 4.20%
IN 3.39%
PA 3.37%
NY 3.30%
MI 3.12%
AZ 3.06%
6.2%
14.3%
23.8%
4.0%
16.9%
6.8% 7.2%
5.7%
4.0%
0.8%
3.3% 3.3%
0.0% 0.3% 0.4%
2.4%
0.5% 0.1% 0.0%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
CL
50
CL
55
CL
60
CL
65
CL
70
CL
77.5
CL
85
CL
92.5
CL
100
CL
110
CL
125
CL
150
CL
160
CL
175
CL
200
CL
250
CL
300
CL
400
CL
500
37.95%
20.38%
17.13% 16.47%
8.07%
0.00%
10.00%
20.00%
30.00%
40.00%
0 - 499
lbs.
500 - 999
lbs.
1,000 -
1,999 lbs.
2,000 -
4,999 lbs.
5,000 -
9,999 lbs.
41.43%
22.92%
14.72%
8.94%
11.99%
< 500 Miles 501 - 1,000 Miles
1,001 - 1,500 Miles 1,501 Miles - 2,000 Miles
+2,001 Miles
TL
Asset-
Light
LTL 3PLEconomy
Outbound % of Total
CA 19.91%
TX 12.54%
IL 6.44%
MI 5.01%
OH 4.79%
NJ 4.58%
IN 3.89%
PA 3.64%
GA 3.59%
TN 3.19%
Top 10 OB / IB States
% of Total Weight By Weight Break
33.4%
22.8%
20.1%
16.3%
4.5%
1.6% 1.3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Revenue To Carrier (Includes FSC) Length of Haul
Average
$209.26
Average
944 mi.
Average
1,529 lbs.
Median
CL 70
Class Allocation of 3PL Freight
(Actual Class – No FAKs)
Shipments to LTL Carriers From 3PLs (<10K lbs., Actual Class, 60 Days)

Asset-Light Continues To Be A Market Many Want To Get Into
TL
Asset-
Light
LTL 3PLEconomy
More asset-light carriers entering the market each quarter, bringing a new level of competition to the
marketplace for carriers that rely on contractual partnerships / interline agreements to haul freight
1
The asset-light carriers who disregard service and play on price alone are being abandoned by shippers
and brokerages as frustration grows from unreliable transit times and congestion because of opting for
slower intermodal linehaul (e.g. not using expedited rail options or OTR)
2
Established asset-light carriers (e.g. RRTS) putting their efforts into diversifying their solutions and
branching into full-fledged logistics solutions vs. standard consolidation networks
3

Roadrunner Remains An Interesting Case Study In Asset-Light Evolution
TL
Asset-
Light
LTL 3PLEconomy
Brands Under the RRTS Umbrella as of July 2014
Source: RRTS 2013 Annual Report, www.rrts.com
Company Snapshot As of FY13 End
 Total Revenue: $1.36B
− Truckload: $658M
− LTL: $559M
− TMS: $154M
 EBITDA: $101.7M
 Net Income: $49M
 Employees: 2,756
 LTL Delivery Agents: 200
 LTL Service Centers: 45
 Truckload Fleet: 3,500
 TL Terminals: 27
 Linehaul Cost per Mile (No FSC): $1.24
 Brokerage Agents: 96

3PLs Entrench Themselves Deeper In Industry, Get Bigger and Better
TL
Asset-
Light
LTL 3PLEconomy
M&A has continued in the logistics space as small, mid-sized and large logistics companies are
gobbled up by market-share-hungry 3PLs looking to scale quickly by organic / inorganic means
1
Interesting mix of events where “strategic” 3PLs work to become more like brokerages and
“transactional” 3PLs look to tackle more complex supply chain problems for shippers
2
The brokerage market is getting much more difficult to get into (not because of the bond increase), but
because of Truckload and LTL carriers reducing the number of 3PLs they do business with
3

M&A Continues At A Rapid Pace In The Logistics Sector
Source: Company Filings, Internal CD Analysis, CapIQ
Date Target
Announced Buyer Transaction Notes
5/13/2014 One Stop Logistics Echo Global Logistics acquires One Stop Logistics, a leading LTL brokerage based in California for
Echo Global $37.3 million, representing an 8.7x EBITDAmultiple
3/31/2014 Access America Transport Coyote and Access America complete their merger for a combined revenue of $2+ billion, helping to
Coyote Logistics diversifyCoyote's service offerings and strengthen its presence in the LTL arena
3/14/2014 Unitrans International Corporation Roadrunner acquires Unitrans International, a leading provider of international logistics, for $55 million;
Roadrunner Transportation Unitrans generated a TTM total revenue of $84 million at the time of acquisition
2/26/2014 Comcar Logistics Echo Global Logistics acquires Comcar Logistics, a non-asset based truckload brokerage based in
Echo Global Jacksonville, FL; Comcar has approximately$15 million in TTM revenue at the time of acquisition
2/24/2014 Rich Logistics / Everett Transportation Roadrunner acquires Rich Logistics and Everett Transportation for a total transaction value of $48 million
Roadrunner Transportation to strengthen Roadrunner's truckload capacityto/from Mexico; TTM revenue from Rich was $113 million
1/6/2014 Pacer International Pacer, the 3rd largest intermodal provider in America, agrees to be acquired byXPO for an Enterprise
XPO Logistics Value of $296 million; Pacer generated a TTM total revenue of $1.0 billion at the time of announcement
12/10/2013 Landstar SCS XPO Logistics purchased Landstar's SupplyChain Solutions group for $87M at a 7.5X EBITDAmultiple
XPO Logistics
7/12/2013 3PD XPO Logistics purchased 3PD, a last mile delivery3PL for $365 million
XPO Logistics
3/19/2013 Open Mile Echo Global acquired Open Mile, an East Coast TL brokerage for $2M
Echo Global Logistics
Echo and Coyote acquisitions increase the
already well-established dominance of
Chicago’s brokerage market
As XPO integrates its numerous
acquisitions the industry holds
its breath to see what’s next
TL
Asset-
Light
LTL 3PLEconomy

The Top Brokerages Continue to Get Bigger And Offer More Services
19
Single-Mode Multi-Mode Complex Multi-Mode
$250M
$1B
$500M
$10B
GrossRevenue(AsReportedasRun-RateEstimates)
$750M
Solutions Brokerage Can Competitively Offer CustomersSource: Transport Topics, CD Estimates
TL
Asset-
Light
LTL 3PLEconomy

Private Companies Continue to Play Big Roles In The Brokerage Space
Modes They’re
Growing Into
Sales
How They’re
Changing the
3PL Market
 Parcel (1 of 2 authorized
UPS domestic resellers)
 Less-than-Truckload
 Dry Van / Flatbed
 International Air / Ocean
 Franchises
 Proprietary TMS
 Fastest growth trajectory
of any 3PL in the LTL
reselling space
 Expansive, well-trained
franchise network
 Unique service portfolio
 Dry Van Truckload
 Reefer Truckload
 Intermodal
 Heavy Haul / Flatbed
 W2 Employees
 Proprietary TMS
 Service-oriented
commitment to customer
is “raising the bar”
 Truckload tech years
beyond their competition
 Perfection of the
“buy / sell” model
 Dry Van / Flatbed
 Intermodal
 W2 Employees
 Proprietary TMS
 “Systematized” the LTL
process better than any
other 3PL; will do the
same for Truckload
 Largely quiet outside of
TL, with enormous goals
for growth in the mode
“Claim to Fame”
Brokerage Modes
Technology
TL
Asset-
Light
LTL 3PLEconomy

Brokerages Continue To Favor W2 / Franchises Over Sales Agent Programs
TL
Asset-
Light
LTL 3PLEconomy
Brokerage
Sales Channels
To Reach
Market
W2 Employees
Dedicated sales force calling on
small / mid-sized customers over
the phone and visiting larger
customers in person
Franchises
Businesses with exclusive,
legally bindings agreements to
sell the company’s logistics
services
Sales Agents
1099 group with non-exclusive
or (less frequently) exclusive
sales agreements with
Brokerage to resell their services
Sales Channel
 Inside Sales
- Base Salary or Draw
- Share of Gross Profit
 Outside Sales
- Base Salary or Draw
- Share of Gross Profit
 Franchise pays royalty to
Franchisor each month
 Fees for any operational
support from Corporate
 Share of Gross Profit for
each transaction
 Penalties or fees for support
expenses from Corporate or
for bad debt expense on
Agent’s Gross Revenue
Compensation Structure
+ Ultimate control over sales,
pricing programs and handling
channel conflict with carriers
+ Early investment pays off with
higher returns per employee
+ Franchise responsible for
operations and cash collection
+ Cash infusion from each new
franchise in the system
+ Good economic structure for
Franchisor and Franchisee
- Brands have “worn out” model
(i.e. difficult recruitment)
- Difficult to direct agents
towards strategic goals and
resolve channel conflict with
carriers
Highlights Of Channel
Most
Favored
Most
Favored
Least
Favored

22

Even Bigger and Better Collaboration Between Shippers / 3PLs / Carriers
Strategic Value Curve for 3PL / Carrier Partnerships
Source: BG, Menlo Worldwide Logistics
What’s Ahead In Carrier / 3PL Collaboration
 The 3PLs who treated carriers poorly when the
pendulum was in their favor are now getting
crushed as it swung back towards carriers
 Best-in-class 3PLs understand that carrier
services aren’t a commodity and are finding
ways to improve collaboration, such as:
− Gain share programs on new opportunities
− “Open book” agreements with target
profitability for carrier and 3PLs
− Tackling shipper opportunities with
combined sales and technology efforts
 The 3PLs who don’t adopt this kind of
partnership will fail in the next 3-5 years
*Take the 23rd Annual Trends and Issues survey to share your
perspectives on the industry
With the pendulum swinging back in favor of carriers, there will need to be more strategic conversations
and collaboration between 3PLs and carriers to make the relationship work for all parties

Technology Will (Eventually) Come To Truckload and LTL Carriers
Technology In Transportation
 Outdated systems that are more
“reactive” than “proactive”
 Poor costing, pricing and tracking
technology
 Outdated, unintuitive user
interfaces that requires too many
“super users” to navigate
 A lot of data being captured, but
lacking analytical tools to use to
make proper mgmt decisions
Today
Truckload Technology
 Smart pricing and costing models
that can aid in making smarter
management decisions on how
and where to position assets
 More smartphone-enabled
technology to provide for dynamic,
real-time load information sharing
*Driverless trucks in +15 years, but some
degree of computer-aided trucking sooner
LTL
 Stronger data capturing ability
(e.g. dimensioners) and costing
models to price services more
accurately
 Improved route-optimization and
tracking software to improve P&D
density
 Dynamic pricing of services based
on network and market conditions
(more on this to come)
What’s Ahead
The carriers who don’t invest in these technologies will be pushed all the “bad freight” that they
aren’t able to properly price and make the right management decisions on how to handle in their networks
The carriers who invest in technology are going to be leagues ahead of those who are slow to adapt to
available, cheap technologies which would allow them to provide better services to their customers

“Pushed” Into 3PLs and Shipper Systems
We’re Standing On The Edge Of Big Pricing Changes For LTL Sector
Web Services
Connections
Dimensional
Pricing
Dynamic
Pricing
Real-Time
Information
Gathering
 Pay for space taken up in trailer
vs. confusing class-based system
 FedEx/UPS goes first, then the industry
 Pricing based on needs of carrier’s network
 Ability to set future discounts to guide freight
shipments to days that are typically light
 Driver / sales rep pricing using
handheld “dimensioners”
 LH planning before freight hits dock
Output From Carriers’ Operating System
Getting Paid For What’s
Moved vs. Hoping For Best
Ability to Standardize / Tier
Pricing For Different 3PLs
Immediate Change Of Freight
Mix vs. Long Tariff Changes
Source: CD Internal Perspective
It’s been talked about since de-regulation, but we are truly on the cusp of some pretty significant changes
in the LTL industry that will let carriers better manage their businesses and run more efficient networks

Carriers Will Start Using 3PLs As An Extension Of Their Sales Channel
A smaller handful of 3PLs will start to be considered a legitimate extension of the carrier’s sales force (and
not thought of as a competitor) that can be used to extend the reach of the carrier without the sales costs
Carrier
Head of Sales
National Account ManagersRegional Key Account ManagersValue-Added Resellers
Carrier 3PL
Whose Employee
 A small sub-set of 3PLs that meet
the carrier’s rules of engagement
 Tiered pricing that is well thought
out by the carrier to meet goals
 Offer business to carriers that is
“scaled” and meets needs of
carrier’s network
 Deployed in local markets across
different regions in carrier’s
footprint
 Tasked with directives to build out
local sales presence targeting
specific kinds of accounts
(of a size or growth potential)
 Located at carrier’s headquarters
 Works closely with pricing and
operations teams to build account
and implement new initiatives
 Focus on large accounts that
span multiple-regions with
centralized decision-making

The Biggest Carriers May Become The Biggest 3PLs
Asset Non-Asset
 Company trucks
 Consolidation /
Service Centers
 Ability To Move
Quickly As Needed
 Manage KPIs Closely
 Sub-Contracted or
Brokered Assets
 Outsource To Others
Are Experts / Do For
Less Money
 More Services To
Offer Shippers
Requires next-generation technology and extremely
progressive thinking / leadership to make the model work properly
Blending the Best of Asset-Based And Non-Asset Models
What Carriers Must Do To Become 3PLs
 Large, asset-based have barely tapped into
the potential of offering true logistics services
 Growth has come from having established
brands with shipper, not any remarkable
logistics services (for the most part)
 The next wave of growth from carriers offering
3PL services will be from adopting practices
and ideas that have made some 3PLs so
successful (technology, brokerage tactics,
thinking of the whole vs. the trucks)
 Breaking through to the next level of logistics
services is going to require extremely
progressive thinking and leadership
A handful of carriers have made good progress in building out logistics divisions, but their growth has
largely been due to being established brands; getting to the next level is going to take a new game plan

New Entrants To The Industry Are Coming Who Want To Solve Sexy Problems
Companies Bridging the Physical / Digital World Divide
“Uber of Freight”
The Web Services Hub For Freight
What These Outsiders Are Doing And Why
 Enticed by the unique and big problems that are
pervasive across the freight industry
 Successful entrants partner with people that
have been in the industry for a long time
(see Cargomatic with Kessler + Parker)
 Preferring to focus on technology solutions that
bridge asset-based world with digital world vs.
doing a “typical” brokerage play
 When they do go into brokerage, they are doing
some pretty amazing things (see Coyote’s MIT
squad or Echo’s team of tech rockstars)
 Few tech entrants are focusing on making
trucking companies more efficient (hint,
hint…tech people looking for a problem to solve)
Over-Dimensional
Freight Capacity
Advanced TL & IM Pricing
Freight Exchange
The freight industry is getting more attractive to outsiders, and they’re beginning to get their hands dirty
on applying new technologies being used in other industries to the challenges of transportation
Electronic Log Books / Fleet Management

Entrance of Exchanges Could Be Trouble for Low-Value Brokers
Logistics companies who provide little value to shippers are at risk of being replaced by tech startups,
though those who establish relationships and provide value-added services are less likely to be affected
“Need an armoire moved on a
no-name carrier? No problem.”
“I don’t know anything
about this carrier, but
here’s your rate. Good
luck!”
“Based on your needs,
I recommend using CWF.
Good? Great. I’ll get this
done for you.”
“We’ll handle all
your freight from our
facilities. We’ll take care
of everything.”
…High Risk …Little Short-Term Risk …Very Little Risk
Legend
 Future tech startups will take the form
of “marketplaces” or “exchanges” who
efficiently pair shippers with carriers
 Companies who only provide rates to
shippers without a “hook” will be replaced
by these tech companies
 3PLs who offer higher value services are
less likely to be affected
 Some value-add services to protect a
3PL from obsolescence include:
− Multiple service options
(e.g. TL, LTL, International, Parcel)
− Warehousing services
− High-degree of carrier knowledge
and ability to meet a customer’s
needs on any given shipment
Value-Added
Transportation
Services
High-Value Logistics
Non-Commercial
Freight Moves
Transactional Rate
Reselling

30

Strategic Initiatives That Should Be On Asset and Non-Asset Agendas
Non-AssetAsset-Based

Initiatives For Asset-Based Companies In the Years Ahead
Non-
Asset
Asset-
Based
Now that the pendulum has swung back to carriers, it’s important that they take this
opportunity to invest for what the future holds to prepare for inevitable market shifts
Get Your Logistics
Division To The Next Level
Keep Investing In Technology
(Build For The Future)
Align With The Right Customers
And Build Collaboration Roadmaps
1 2 3
 If you’ve launched a logistics division
that’s had some success, know that
it’s just the beginning
 Getting to the next level to compete
with incumbents is going to take an
entirely new level of thinking and
talent to catch up to where industry
leaders are today
 Always remember to think about the
big picture of your company vs. asset
utilization metrics
 On the trucking and logistics
segments, continuously invest into
your technology to make it smarter,
faster and stronger
 Create technology that is ready for the
web-enabled world and can share
information and service information in
a dynamic environment
 Look to what’s come before you: learn
from e-commerce giants and the
technology needed to operate in high
shipment laden businesses
 Take the opportunity to purge “bad
freight” from your system and push to
others who aren’t as sophisticated
 Align with your customers on what
works well for your network, where
you can meet them halfway and what
is non-negotiable
 Build collaboration roadmaps on how
your partnership can work well for
both companies (remember: you
never get anything you don’t ask for)

How Non-Asset Companies Can Better Compete In This Environment
Non-Asset companies should be dedicated to build advanced technology platforms,
creating high-value services and finding ways to maximize yield on customer business
Build For A
Multi-Modal Future
Focus On Your Core
Carrier Relationships
Become Better
Buyers of Freight
1
2
3
 Develop core competencies to be able to do well in environments that require
spot market savviness or dedicated/contract pricing relationships
 Create a S.W.A.T. team of people (and technology) that knows pricing and are
able to develop deep relationships with carriers across various modes
 Be brutally understanding of what you can offer carriers, what you can’t and
how it compares to others in the marketplace
 Develop deep relationships with core carriers where there is mutual trust
 Take “scaled” business to carriers vs. making promises of things to come
 Realize that being exceptional at one mode is great, but know that your
competitors are building the ability to function exceptionally well by offering
true multi-modal solutions
 Begin laying the groundwork early to build teams of people and technology
that will enable for multi-modal sales and operations
Points To Focus On
Non-
Asset
Asset-
Based

CarrierDirect
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CarrierDirect, LLC
105 West Adams, Suite 3010
Chicago, IL 60603
@CarrierDirect
CarrierDirect
Listen to Stifel Call
www.carrierdirect.co
Joel Clum
President
(312) 725-6712
joel@carrierdirect.co
JoelClum

Carrier direct 2h14 outlook for the transport and logistics market

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