1 transportation & sustainability september 2015
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Transportation & SustainabilitySeptember 2015
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What is Sustainability?
4 “Meeting the Needs of Society Today Without Compromising the Ability of Future Generations to Meet Their Needs”
Economic Prosperity
Triple Bottom Line
Social ResponsibilityEnvironmental
Stewardship
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Sources of U.S. Greenhouse Gas Emissions
4 Transportation is responsible for 27% of U.S. greenhouse gas emissions
4 About 20% of transportation sector emissions are caused by heavy-duty vehicles
2013 Greenhouse Gas Emissions by Sector
Source: Remarks by the President on Fuel Efficiency Standards of Medium and Heavy-Duty Vehicles, 2014.
Source: EPA, Sources of Greenhouse Gas Emissions, 2013.
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Transportation Sustainability?
4 Freight transportation is growing
• It is 92% petroleum-based
Source: RITA BTS Transportation Services Index, July 2014.
Source: EIA Annual Energy Review, 2013.
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What to do?
“Climate change poses clear, catastrophic threats.
We may not agree on the extent,
but we certainly can’t afford the risk of inaction.”
Rupert Murdoch
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Increase Transportation Energy Efficiency
4 Minimize the energy used and waste created while safely delivering J.B. Hunt services
Cost Reduction
Reduced consumption of resources
Risk Management
Lessen dependency on fossil fuels
Innovation
Leader in transportation services
Customer Value
Simple methods of reducing transportation carbon emissions
Shareholder Value
Developing new services & cost reduction strategies
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How? J.B. Hunt’s Transportation Carbon Diet
1. Know your network footprintThen, attack it by:2. Eliminating miles
- Network re-alignment- Route optimization
3. Increasing payload- Maximize cube & weight
4. Converting to energy-efficient, cost-effective modes- Rail is better than truck; truck is better than air
5. Using efficient carriers- FleetSmart members & SmartWaySM partners
Reduced Costs Means Reduced Emissions!
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Step 1: Measure Carbon Emissions
4 N2O (nitrous oxide) & CH4 (methane) are also emitted4 Taking into account the global warming potential of N2O & CH4, 22.9 lbs
of CO2e (carbon dioxide equivalent) are emitted
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Step 2: Eliminate Miles
Which distribution center should service my customers?
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Step 3: Increase Payload
4 Minimize packaging
• Utilize lightweight equipment
• Build efficient loads
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Step 4: Pick the Best Mode
Water 4x > Rail Rail 4x > Truck Truck 8x > Air
Less Carbon Intense More Carbon Intense
In 2014, 71% of J.B. Hunt’s loaded miles were via Rail.
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Intermodal as “Carbon-Lite Transportation”
50% less carbon;
1.5 fewer tonnes
Estimated carbon emissions for an 1,800 mile truckload shipment based on Raven Ridge Resources, Inc. methodology for calculating carbon emissions for truckload shipments via highway and intermodal service. See: http://www.ghgworks.com/pdf/JBHTIntermodalVerificationReport.pdf
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• Proprietary J.B. Hunttool calculates customer’s carbon footprint & identifiesintermodal conversion opportunities
CLEAN Transport™
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Step 5: Use Efficient Carriers• SmartWay program identifies efficient carriers
• Carrier partners are scored on relative efficiency performance.• 5 performance ranges based on 8 emissions metrics
J.B. Hunt Multimodal in top 20-40% of CO2, NOx and PM grams/mile metrics
Carrier Excellence Awards 2008-2015
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DeliverGreen™DeliverGreen™ is a business initiative to meet customers’ demand
for more energy-efficient services and provide long-term, sustainable growth opportunities for the J.B. Hunt Transport.
Ensure J.B. Hunt drivers, managers, and technicians are
fully trained and capable of
consistently operating fleet
equipment in the most fuel-efficient
manner.
Compare and evaluate
equipment technology investment
options.
Provide high quality, low-cost
fuels to power J.B. Hunt fleets.
Establish energy-efficient
engineered solution blue
prints for each fleet operation.
Keep J.B. Hunt abreast of and
cost-effectively in compliance with all
energy and emissions
regulations impacting the
trucking industry.
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J.B. Hunt’s 1st Green Fleet Solution• Freightliner Cascadia Truck• Auxiliary Power Unit• Truck Skirting • Trailer Belly Fairing • Trailer Gap Fairing • Wide-Base Tires• Truck Inflation Monitoring
System• Trailer Automatic Tire
Inflation System• Lightweight Duraplate Trailer• Biodiesel Fuel (B20)
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J.B. Hunt & Biodiesel• J.B. Hunt uses biodiesel at a variety of bulk and retail locations
• In total, over 120 million gallons of biodiesel fuel annually• Pure biodiesel equates to 1.3% of J.B. Hunt’s total fuel usage, or
about 20.6 million gallons of pure biodiesel
• Biodiesel blends utilized range from a B2 to a B20• B11 is the most common
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Fuel Efficiency Factors
Source: Kenworth Truck Company “Fuel Economy White Paper” August 2008
Drivers
Attitude
Compensation
Vehicle
Alignment Maintenance Practices
Environment
Traffic Pattern EducationConsistency
Idle TimeJack UsageHabits
Electronic ControlsConfiguration Parasitic LoadsAerodynamics Terrain Road Surfaces Weather
Temperature
Operations
Load Speed
Fuel Quality
% of Time LoadedRoute
Documentation
Systems
Baseline
Testing
Electronic
Measurement
Fuel PurchasesFlow Meter
Tires
Construction Type/Size
State of Wear
Air Pressure
Tread Depth
Retread
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• The EPA and DOT’s National Highway Traffic Safety Administration (NHTSA) is developing the next phase of heavy-duty vehicle fuel efficiency and GHG standards to be implemented by March 2016
• This second round of standards will build on the first standards for model years 2014-2018.• Estimated savings for vehicle owners and operators is $50 billion in fuel costs and 530 million
barrels of oil.
Next Round of Fuel Efficiency Standards
• J.B. Hunt continues to test fuel efficient equipment to ensure future compliance.
• The low pressure area at the rear of trailers contributes 25% of a tractor trailer’s aerodynamic drag.
• In 2014, we deployed a Ridge Corporation Green Tail on a new Wabash 53’ Duraplate LS trailer for testing. We combined it with a Green Wing trailer skirt for greater trailer aerodynamics.
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Corporate Sustainability
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Recycling at J.B. Hunt
22Thank you.
•J.B. Hunt continues to strive to positively impact the triple bottom line, to create social, environmental, & economic value
•We are willing to share our knowledge regarding sustainability, & eager to learn from others’ experiences
Please contact us with any questions or opportunities:
Gary WhickerSenior V.P. of Engineering(479) 820-8143Gary_Whicker@JBHunt.com
Joe FritzjunkerLogistics Engineer (479) 820-8040Joe_Fritzjunker@JBHunt.com
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