- Transportation market conditions remain volatile with tight capacity driving up rates. Schneider remains committed to safely delivering freight for customers. - A webinar discusses the growth and future of intermodal transportation over the past 30 years. - Schneider's 2020 Corporate Responsibility Report details its focus on sustainability, equity, and inclusion. - The Colonial Pipeline restart will take several days for supply chains to return to normal after the cyberattack. Schneider is monitoring impacts on customers.

1. Transportation
Market Update
May 14, 2021

2. TRANSPORTATION MARKET UPDATE
Schneider’s goal is to provide the latest market insights to help you navigate the ongoing market volatility.
Whether moving a critical load, keeping your supply chain going or long-term planning, Schneider remains committed to
safely and securely delivering your freight.
Schneider leverages data and analytics from multiple sources to provide the most up-to-date insights available
including, but not limited to, FTR, DAT, FreightWaves SONAR, Cass Information Systems, Inc., FleetOwner, FMCSA,
The New York Times, NPR, ATRI, the CDC and Transport Topics. For the latest information and updates, visit
Schneider’s Trending Topics page.

3. NEW WEBINAR AVAILABLE ON-DEMAND
Intermodal has moved from a mode of last resort to a
critical part of shipper’s supply chain strategy in the 30
years Schneider has offered intermodal service. Tight
capacity, sustainability initiatives and disruptive
technology continue to drive intermodal to the forefront.
• A brief look back at 30 years of intermodal
development and transformation
• The current state of intermodal, with exclusive
insights from intermodal analyst Larry Gross
• Discussions about what’s coming in intermodal,
including autonomous trucks/trains, networks of the
future, ESG initiatives, “the great dispersion” and more.
Watch the one-hour on-demand webinar
View the virtual event library

4. PURPOSEFUL IN OUR APPROACH: NEW CORPORATE RESPONSIBILITY REPORT
At Schneider, we’re committed to doing the right thing, the right way. We’re focused
on our pursuit of a more sustainable, equitable and inclusive future, with a values-
based approach to environmental, socially responsible and governance (ESG)
initiatives.
Learn more about Schneider progress and the next steps in our ESG journey by
exploring our 2020 Corporate Responsibility Report.
View the Corporate Responsibility Report
Updated 5/15/2021

5. IN THE NEWS:
COLONIAL PIPELINE RESTARTS AFTER HACK,
BUT IT WILL TAKE TIME FOR THE SUPPLY CHAIN
TO RETURN TO NORMAL
The Colonial Pipeline resumed operations on Wednesday, May 12
around 5 p.m. ET.
They have stated that the pipeline will not be fully functional
immediately and it will take several days for the product delivery
supply chain to return to normal. Some markets served may
experience, or continue to experience, intermittent service
interruptions during the start-up period.
Read the article
Source: whitehouse.gov;Updated 5/15/2021
We are closely monitoring the
situation and are coordinating with
our fuel suppliers and drivers. Be
assured we are working to meet
the needs of our customers.
If there is a delay or disruption in
your shipment, we will
communicate with you directly.
What does this mean
for Schneider
customers?

6. IN THE NEWS: CALIFORNIA ASSEMBLY BILL 5 (AB 5)
On April 28, 2021, the Ninth Circuit Court of Appeals overturned the January 16, 2020 preliminary injunction which barred the
state from enforcing AB 5 as it relates to motor carriers until the court has reached a final verdict in the case. Following the
decision, the California Trucking Association has until May 26 to file an appeal, which they’ve indicated they will do.
With the anticipated appeal, and the case potentially reaching even the U.S. Supreme Court, it’s hard to predict the date the
injunction will actually be lifted. In fact, industry experts expect protracted litigation over AB-5’s applicability to motor carriers.
Such uncertainty regarding AB-5’s applicability to trucking may constrain capacity in and around the already backed up ports –
which could increase rates for shippers.
By way of background, AB 5 is a California law that changes how the state determines whether a person is an employee or an
independent contractor. Under AB 5, California considers a person an employee unless there is proof that:
• The worker is free from the control and direction of the hiring entity in connection with the performance of their work;
• The worker performs work outside the usual course of business for the hiring entity; and
• The worker is in an independently established trade of business of the same nature as the work performed.
Schneider is continuing to monitor this situation and will keep customers informed
as more information becomes available.

7. IN THE NEWS: PRODUCTION HITS A CEILING THANKS IN LARGE PART TO THE
LACK OF CAPACITY
The transportation sector responsible for moving raw materials and manufactured goods throughout the U.S. has hit
the proverbial ceiling, meaning the freight market cannot get much tighter than it already has without a structural
expansion. Capacity and supply chain expansion do not come quickly. Truck orders are a good example of how hard it
is to expand infrastructure. Lengthy order cycles and decision processes mean it will be more than a year in many
cases before capacity is added, making rapid responses to expanding markets difficult.
• As manufacturers come back online, they are finding it more difficult
to source raw materials for production.
• Manufacturers cannot keep up with demand because their suppliers
are not able to get the materials to them.
• Employment growth slowed in April.
• In the meantime, the backlog of unfulfilled orders continues to grow
at a record pace.
Source: freightwaves.com;Updated 5/12/2021
Read the article

8. COVID-19 CASES AT LOWEST LEVELS SINCE SEPTEMBER 2020
Source: nytimes.com;Updated 5/12/2021

9. EXPECT THE COVID-19 VACCINATION CAMPAIGN TO CONTINUE THROUGHOUT 2021
• All U.S. adults are now eligible for the COVID-19
vaccine.
• The pace of vaccination has slowed considerably
since mid-April. About 2.19 million doses are being
administered each day, down from last month’s
peak of 3.3 million a day.
Source: cdc.gov, nytimes.com,nytimes.com;Updated 5/12/2021
Percent of population vaccinated
(5/12/21)
Vaccinated
Fully
vaccinated
United
States
46% 35%
Canada 41% 3.4%
Mexico 11% 7.4%
• More than 1.34 billion vaccine doses have been
administered worldwide, equal to 17 doses for
every 100 people.

10. OUTBOUND TENDER VOLUME INDEX
Outbound tender volumes represent demand for capacity in the origin area. An increase in volume represents an increase in demand. Source: FreightWaves;Updated 5/12/2021
2018-2019
2021
2019-2020
ImportantReminder: As you review the next slides and the related YoY data, keep in mind that it was in April of 2020 when we saw
tender volumes and rejects begin to plummetas businesseswere forced to close due to lockdowns caused by the COVID-19pandemic.
The Outbound TenderVolume Index bottomedout on April 16th at 8439.35,while Overall Outbound TenderRejects bottomedout on April
30th at 2.57%.Afterthis time, both volumes and rejects began their slow climb upwards to extremely elevated levels.
Compared to the Outbound
Tender Volume Index levels
during this time in the previous
two years, current OTVI is
59.39% higher than 2020 and
52.04% higher than 2019.

11. Outbound Tender Rejects are sitting at 24.5% overall. They have increases in Reefer, though have decreased in
Van Truckload and Flatbed.
Outbound tender rejects are an indication of available capacity in the origin market of the freight. If rejections are increasing,
capacity may be tightening in that area.
OUTBOUND TENDER REJECT INDEX
Source: FreightWaves;Updated 5/12/2021
Truckload& Flatbed
Refrigerated

12. The graph below details outbound tender rejects based on length of haul, regardless of mode. Since our
last report it seems there are fewer rejects for the local and short hauls.
City/local (< 100 miles): 7.42%
Short-haul (100-250 miles): 17.34%
Mid-haul (250-450 miles): 29.06%
Tweener (450-800 miles): 34.80%
Long-haul (800+ miles): 27.46%
Source: FreightWaves;Updated 5/12/2021
OUTBOUND TENDER REJECT INDEX BY LENGTH OF HAUL
Outbound tender rejects are an indication of available capacity in the origin market of the freight.
If rejections are increasing, capacity may be tightening in that area.

13. TRUCK FREIGHT RECOVERY INDEX
Seasonally adjusted freight
activity rose more than 11%,
most likely stemming from the
Commercial Vehicle Safety
Alliance International
Roadcheck event, which has
previously been held in June.
Read more
Source: Truckstop.com SpotMarket Insights
Analysis by FTR | Transportation Intelligence

14. RAIL FREIGHT RECOVERY INDEX
Intermodal volumes are still at high levels, though have leveled out as containers and trailers eased back.
Read more.
Source: Truckstop.com SpotMarket Insights
Analysis by FTR | Transportation Intelligence

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