CONTENTS • What’s Your Yardstick? • Energy Upgrades • Capacity Crunch • Chicago Expansion • Front Page • Visit the Hanson Website			Ready For The Coming Capacity Crunch? We Are. Many analysts and editors in the transportation industry have predicted that when the economy kicks back in we will see capacity constraints unlike anything seen before. According to Transport Topics, hundreds of thousands of driver positions were eliminated over the past two years and many small carriers exited the marketplace. Equipment was removed from service and new purchases were delayed. Also impacting the transportation industry, the FMCSA’s new safety program, Comprehensive Safety Analysis (CSA) 2010, will place a much higher emphasis on the quality of a driver's performance. Carriers’ BASIC scores will be a matter of public record starting in December 2010, and it is yet to be determined exactly how this will affect the carrier’s overall safety rating. Some industry observers are predicting that many drivers will become unemployable as a result. Now consider demand: The most recent Morgan Stanley Freight Index for refrigerated freight is at its highest point in the last fifteen years. A "systematic underbuy" of heavy trucks is tightening truckload capacity and eventually will push rates higher, R.W. Baird & Co. analyst Jon A. Langenfeld said. "Ongoing capacity rationalization" is slowly but surely improving "supply/demand balance," driving excess tractors and trailers out of the vehicle pool, and setting the stage for "significant" rate increases by truckload carriers. Canadian TransCore reported its highest volume of all loads since May 2008. Spot market freight availability is up 73% year-over-year. While we cannot predict with certainty what will happen in the transportation marketplace, it is reasonable to assume that capacity will become increasingly difficult to find and the cost will certainly be increasing. Hanson Transportation Management Service (HTMS) works tirelessly to be a carrier friendly organization, and we have an ongoing dialogue with all of our carriers to access their capacity commitments. We are introducing electronic pay programs that will continue to keep us on the list of desirable partners for carriers. We build and tender loads to our carriers that maximize driver miles and consistently award lanes that support our carriers’ networks. To assist in this area, Don Romniak joined the HTMS team as the Director of Distribution Services. Don, who is stationed at the Hanson Chicago Consolidation Center, brings a great deal of experience and knowledge to the department, and he will play a large role in the future success of HTMS and Hanson Xpress. Rest assured that Hanson will continue to work tirelessly to get your freight delivered securely and on time.
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		Andrew Janson, President Matt Luckas, Vice President of Supply Chain Services Blake Larkin, Vice President of Business Development