The Marketplace: Adapting, Surviving, Thriving

Mark Christos, Vice President, Matson Logistics

TIA Executive Committee Board Member

TIA Foundation Chair, TIA Market Report

Topics

TIA Market Report

Industry Analyst View for Logistics

What is the TIA 3PL Market Report • Members that share metrics to TIA • Mix of public and private companies • Balanced representation of company size

• Less than $16MM • Greater than $16MM to $99MM • Greater than $100MM

• Over 6 million shipments • $11.8 billion of annual revenue

How Report Helps Members • Benchmark performance • Volume, revenue and margin performance

• Per shipment metrics and trends by mode

• Mix change: LTL, Intermodal, Truck

• 30+ charts and data tables

• Source of Data, trusted • Direct from members to TIA

TIA Member Profile

TL, 71%

Intermodal, 17%

LTL, 10% Misc, 2%

0%

20%

40%

60%

80%

100%

TL LTL Rail Ocean Air Whse

Average Participation Rate in Service Offerings Q315 vs Q314

2015 2014

Mode Summary Q315 vs. Q314 Metric TL LTL Intermodal

Total Shipments 16.5% -5.7% 1.7%

Invoice Amount/Load -7.2% 0.3% -5.1%

Total Revenue 15.4% -5.5% -3.5%

Margin % 210 Basis Points 50 Basis Points 130 Basis Points

Truckload Metric

Q3 2015 Q3 2014 % Change Less than $ 16 million

Total Loads 30,922 27,009 14.5%

Invoice Amount/Load $1,417 $1,477 -4.0%

Profit Margin/Load $236 $237 -0.4%

Profit Margin % 16.6% 16.0% 20 Basis Points

$16 to $100 million Q3 2015 Q3 2014 % Change

Total Loads 83,927 78,131 7.4%

Invoice Amount/Load $1,658 $1,747 -5.1%

Profit Margin/Load $275 $254 8.4%

Profit Margin % 16.6% 14.5% 230 Basis Points

Over $100 million Q3 2015 Q3 2014 % Change

Total Loads 818,991 696,431 17.6%

Invoice Amount/Load $1,572 $1,709 -8.1%

Profit Margin/Load $228 $221 3.1%

Profit Margin % 14.5% 12.9% 210 Basis Points

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Q 4 14 v Q4 13 Q1 15 v Q1 14 Q2 15 v Q2 14 Q3 15 v Q3 14

Quarterly Shipment Percent Change

Rail TL LTL

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Truckload 3 Year Quarterly Shipments

12.0%

14.0%

16.0%

$1,200

$1,400

$1,600

$1,800

$2,000

Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Truckload 3 Year Metrics by Quarter

Invoice Amount per Shipment Profit Margin %

150,000

175,000

200,000

225,000

250,000

275,000

Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Intermodal 3 Year Quarterly Shipments

Shipments

8.0%

10.0%

12.0%

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Intermodal 3 Years Metrics by Quarter

Invoice Amount per Shipment Profit Margin %

75,000

85,000

95,000

105,000

115,000

125,000

135,000

145,000

155,000

Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

LTL 3 Year Quarterly Shipments

Shipments

14.0%

16.0%

18.0%

20.0%

$300

$325

$350

$375

$400

$425

$450

$475

Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

LTL 3 Year Quarterly Metrics

Invoice Amount per Shipment Profit Margin %

Adapting, Surviving, Thriving

• Benchmarking

• Technology

• Customer Value/Services

Benchmarking

• Provides ability to learn, compare

• Creates Perspective

• Educate customers

• React

Technology

• Acceleration of information and access to it

• Technology has enabled brokerage

• Differentiator for efficiency

Customer Value/Services

• Customers seek value added solutions

• Want streamlined process

• Someone thinking for them

• Create solutions

Thank you!