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1issueSuperior Bulk Logistics, Inc.

Q U A L I T Y I N M O T I O N

®

Here and Now: The Perfect StormBy Gail S. Jones

Remember the disaster film “The Perfect Storm”? It dramatized the true story of the courageous men and women aboard the Andrea Gail fishing trawler, which tragically collided with three raging weather fronts, the fiercest storm in modern history. The boat finally was capsized by a rogue wave that no one could have predicted. Not even George Clooney could ensure a happy ending.

Fortunately, today’s perfect storm of an operating environment -- while certainly a confluence of powerful market trends -- is not the result of capricious or unforeseen forces. The longstanding driver shortage has given proactive carriers and

customers many years in which to work together exploring strategies to accommodate the capacity crunch. These far-sighted partnerships have survived and flourished, even when this year’s final rogue wave -- cleverly disguised as a booming economy -- caused demand for bulk truck expertise to skyrocket.

“Marketplace demand for bulk distribution services is at record levels, and everything we have predicted has come to pass,” commented Wes Stone, SBL’s Sr. VP & CMO. “Now is the moment to partner even more strongly with core providers, whose knowledge of your business can help you navigate this unprecedented business climate.”

Superior Bulk Logistics, Inc. is committed to working with its many long-term customers to find innovative ways to meet these challenges. Many of these strategies require a nimble, daily rethinking of load planning: finding new and cost-effective intermodal solutions, and opening windows on deliveries. Other strategies require examining out of date policies and processes. “Sometimes just changing one thing -- like scheduling loads to deliver on weekends -- can make a huge difference,” Stone observed. “The capacity crunch is not going away, but some things are within our control, and it’s to our mutual benefit to identify what those things are.”

Today, one highly effective approach to load planning is to explore rail transfer options that extend geographic reach and utilize more readily available short haul drivers. Taking a fresh look at order patterns to optimize loading and delivery times also can make an immediate difference in a carrier’s ability to provide needed levels of service. Consistently achieving maximum payloads, re-evaluating RFP requests to minimize market lane disruption, and calculating transit times more closely by hours, not days, are other strategies that can boost capacity.

Give today’s “perfect storm” of an operating environment, the objective of all players in the logistics supply chain must be to work together to find common solutions to common problems. This is where SBL, which has never been an “A-to-B” company, can provide a reassuring, value added level of logistics planning, safety commitment and operational excellence. Certain of our products and services that might have been considered ancillary in a less difficult operating environment -- such as custom equipment development and powerful, transparent logistics software -- have now become essential service differentiators. As Carry Transit President Jim Blackmon stated: “We thrive on meeting challenges with something extraordinary, using our considerable human, physical, and technological assets and capabilities.” To Superior Carriers President Brian Nowak, success ultimately comes down to quality people. “We try to hire only the best, and they tend to stay.”

Like other members of SBL’s senior management, Wes Stone is optimistic about the future. “The Superior Bulk Logistics team will continue to work with all customers, large and small, to provide solutions that improve available capacity, and allow our core shippers competitive advantages in the market,” he said.

Exploring rail transfer options is one way customers can work with carriers to boost capacity.

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Superior Bulk Logistics’ former majority owner John J. Burns, who passed away last year, had an ironclad business philosophy of investing substantially back into the organization to ensure long term growth. In that same spirit, our ownership and Board of Directors recently approved a generous capital plan for 2018 for all divisions.

The 2018 Fleet Plan includes the purchase of 156 power units for the replacement and expansion of our fleet, and new trailers for replacement and growth. SBL also has initiated terminal facility projects systemwide, including extensive enhancements to terminal driver rooms and amenities in Markham, Illinois; Cincinnati, Ohio; and Augusta, Georgia, to name just a few.

Other facility improvements include a boiler upgrade at our Springfield, Massachusetts terminal to improve tank cleaning efficiency; upgrades to employee safety controls on our wash racks in Wilmington, North Carolina and Markham; and new LED lighting at the Chicago and Markham terminals to reduce energy consumption. Numerous terminal maintenance facilities will acquire new shop trucks and yard spotters.

The 2018 Capital Plan is historic in scope in that it represents one of the highest capital expenditure years in our Company’s history. We can all feel proud that our privately held family organization remains willing to reinvest heavily in our company for the benefit of our collective future.

2018 Capital Plan Reinvests in SBL’s Future

Efrain Maldonado’s excitement over Supernus Global Solutions’ 2017 performance is exceeded only by his enthusiasm for the future. “Part of our first year success is due to hitting the market at the right time, during a vibrant economy in which there’s high demand for our services,” stated the Supernus VP. “But we also like to think we’ve built customer trust by offering an unusual level of expertise in bulk chemical logistics management. It’s been a year of hard work, but we’re reaping the fruits of our labor to the point where we’ve now made inroads into Mexico.”

Supernus began 2017 with three employees, which grew to seven by year-end. There’s every indication that more staff will be needed. The company’s brokers currently serve an average of 25 customers monthly, about 65% in bulk and 35% in other modes. Supernus also is rolling out its services to Superior Carriers’ customer base, providing much-needed capacity. Maldonado commented: “We’ve figured out how to cross-coordinate services with Superior while simultaneously expanding our bulk carrier network. Our goal is to provide the customer with the optimum logistics solution. No matter which carrier ultimately hauls a load, if Supernus is entrusted with the business, it remains a ‘Superior’ solution.”

One exciting recent development is Supernus’s cultivation of business south of the border, where the company has successfully leveraged Superior relationships in Mexico to establish additional logistics partners. Bulk services into Mexico utilize the same trailer from origin to destination, unlike the dry-van market where most freight is cross-docked at the border from Mexican carrier trailer to U.S. carrier trailer. Fifteen years ago, Superior Bulk Logistics expanded its offerings to include trucking and transloading into Mexico by partnering with Transpormex and LIT, trucking and transloading providers in domestic Mexico service whose corporate cultures are similar to SBL’s. So in 2017 when it came time to locate Mexican carriers for Supernus, Maldonado reached out to Transpormex, LIT, and numerous other carriers to expand our services. “Our partners in Mexico have done a phenomenal job of providing seamless cross-border service, taking care of our trucks and making deliveries,” he said. “For 2018 and beyond we’ll be focusing on transloading opportunities there.”

As an SBL subsidiary, Supernus has transloading access to 25 rail-to-truck facilities in the U.S., and five locations in Mexico. Its services integrate bulk distribution operations, warehousing, and transportation, using software that permits visibility by all parties. In the coming year, Maldonado anticipates an impressive 300% growth for the company.

Located in Oak Brook, Illinois, Supernus Global Solutions is seeking to add additional qualified brokers to its staff, as well as more bulk carriers to its network. For more information, please contact Efrain Maldonado at EMaldonado@supernusglobal.com, or 630-481-2400.

By Gail S. Jones

Impressive Inaugural Year for SupernusFirst-year growth of 3PL company includes expansion into Mexico

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#TheSocialStopBy Chris Halvachs, Digital Marketing RepresentativeTo kick off 2018, we wanted to give our drivers a chance to display the pride they take in their trucks. What better way than through a photo contest? In 2016, when Carry Transit held a contest where drivers could post images of their trucks, we generated some truly awesome photos. So we thought we would try it again . . . but this time invite both Carry Transit and Superior Carriers to send in their best pics.

Running from February 2 to 25, the contest turned out to be highly competitive, garnering an impressive number of creative and amazing images. Consider that when Carry Transit first did this contest back in 2016, we received fifteen photos. Fast forward two years to this year’s competition, which received 26 Carry photos, 62 Superior Carriers photos and 46 Owner-Operator photos.

We picked three winners, one from each of the three categories above. Judging was conducted something like in the Olympics. Each member of the SBL social media team gave each photo a score ranging from zero to ten. We dropped the highest and lowest score, and averaged the remaining numbers for an overall score. The photo with the highest overall score was the winner of that category.

Congratulations to our three winners, whose artistic achievements are on display below. We think you’ll agree that this contest was a success . . . and that SBL has the best looking rigs on the road!

Like LinkedIn? Follow our SBL, Superior Carriers and Carry Transit pages!

Winning photo by James Record, Kingsport, TN Terminal, Owner-Operator Truck Category

Winning photo by Matt Henley, Atlanta, GA Terminal, Superior Carriers Truck Category

Winning photo by Bryan Kay, Stockton, CA Terminal, Carry Transit Truck Category

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UPERIOR CARRIERS NEWSMcPeek Retires After Four Decades of Leadership By Len Fletcher, CEO, Superior Bulk Logistics

After 41 years, Mr. John (Jack ) McPeek III has decided to see what life is like in retirement. His last day working with us was January 12, 2018, but he will never leave the Superior family, of which he has been a member for so long.

Jack joined Superior in 1977 and over the next nine years he performed several functions. He drove tractors for a few different independent contractors and also was a company driver. In between these duties he worked in the maintenance shop, and even painted tractors and trailers. In 1986 he moved into the office and took over dispatch responsibilities. Then from 1988 through 1991 he acted as an Operations Supervisor and helped open several new terminals in the Northeast.

Jack’s hard work and performance led him to be named Eastern Region VP for Superior Carriers in 1991. As the company continued to grow over the next several years, it became apparent that a formal, centralized Driver Training program needed to be created for the many companies which had been purchased by Superior Carriers. There was no one better to lead the new Training & Development Center (TDC) in Kingsport, Tennessee than Jack McPeek. In 1996, Jack relocated his family to Kingsport and became a Vice President and Director of the new TDC. The Center moved to Greer, SC in 2009, and Jack remained its VP until announcing his retirement in 2017.

For 22 years, Jack was instrumental in creating and developing what is known as one of the best, if not the best driver training program in the country. Jack helped to train thousands of drivers over his career, and it’s a safe bet that every one of them remembers Mr. Jack McPeek. His deep knowledge of our industry, ability to relate to others, and consummate skills as a teacher have left an indelible mark on our company.

On January 11, at Demetre’s Restaurant in Duncan, South Carolina, SBL held a retirement dinner in Jack’s honor, which was well attended by senior SBL management, local management, and Jack’s own family. Jack was presented with a clock, and in his acceptance remarks and throughout the evening, his legendary wit and good humor were on full display.

Thanks, Jack, for a long and distinguished career with Superior. You certainly helped make us who we are today, and you will be greatly missed. Stay healthy, and savor retirement. We wish you and your wife Kathy all the best.

Retiree Jack McPeek III

Million Accident-Free Miles Program UpdateBy Tom Gorman, Director - EHS&SSince we strongly believe that all terminal employees should be recognized for terminal-wide safety achievement, we’ve established the following prizes for the 2018 calendar year. They will be presented to ALL terminal employees when that terminal reaches a safe driving milestone for the first time during the year. All prizes feature the Superior Carriers logo.

250,000 miles: Silver Keychain 750,000 miles- Beach Towel 500,000 miles: Trunk Organizer 1,000,000 miles- Toiletry Bag

By late 2017, our Benson, Arizona and Memphis, Tennessee terminals had each reached one million accident-free miles. We’re happy to report that they continue to drive toward two million accident-free miles, with Benson at 1,101,230 miles and Memphis at 1,218,974 miles. Our Augusta, Georgia and Creola, Alabama terminals ended their million mile streak in January. We look forward to new terminals achieving the million mile award in the coming months.

We congratulate the Kankakee, Illinois terminal on reaching the 750,000 milestone in 2018! All terminal employees will receive a beach towel with Superior Carriers logo, and the terminal will be awarded a certificate of achievement for display.

Three terminals surpassed the 500,000 mile mark in January: Markham, Illinois; High Point, North Carolina; and Charlotte, North Carolina. All terminal employees will receive a trunk organizer with Superior Carriers logo. Our Auburn, Maine and Lakeland, Florida terminals both drove past the 250,000 safe mile mark, and their employees will receive a silver key chain with Superior Carriers logo. Terminals will also be sent a certificate for display.

Thanks to all our drivers and terminal employees who contribute to these accident-free miles by doing what you do every day. If it’s worth doing, it’s worth doing safely!

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CARRY TRANSIT NEWS

In 2010, in an effort to improve asset utilization in a tightening market, Carry Transit hired five Northwestern University doctoral candidates to develop an innovative fleet scheduling model. We sought to answer the question: Could even a moderate change in delivery time requirements and redistribution of workload deliver significant benefits -- including better fleet utilization, lower costs to customers, and increased capacity?

The resulting detailed analysis gave us our answer: a resounding “yes.” The new model was outlined in a paper published online in 2012, entitled “Dynamic Fleet Scheduling with Uncertain Demand and Customer Flexibility,” by Jonathan P. Turner, Soonhui Lee, Mark S. Daskin, Tito Homem-de-Mello, and Karen Smilowitz. In a statistically sound and operationally specific way, it confirmed what we had suspected: that even minor changes in a customer’s tolerance to alternative delivery times can achieve most if not all of the benefits cited above to everyone in the logistics chain. Taking a fresh, real-world look at delivery requirements -- and increasing delivery time flexibility -- appears to be the single most effective way for customers to ensure that a carrier is able to successfully meet their logistics needs.

As the paper points out, for decades the airlines industry has offered alternative flying times to redistribute demand, and in some cases to offer discounted fares. Truck carriers, however, historically have not used similar techniques. But there is every indication that, in times of tightened demand for bulk truck services, flexibility on the part of customers creates win-win scenarios and helps everyone do more with less.

As one of the largest transloaders in the country (using rail in combination with short haul trucks), Carry Transit has been at the forefront of this type of logistics modeling and analysis. “This outstanding 2012 paper -- which highlights our need to work collaboratively with customers to achieve more flexible delivery times -- anticipates the exact same industry issues we’re talking about in 2018,” observed Carry Transit President Jim Blackmon. “Except now, with tightened capacity, the situation is even more critical. We encourage our customers to contact us to explore establishing alternative delivery windows and times, which may have an immediate beneficial effect on their bottom line.”

Dynamic Fleet Scheduling: Optimum Solution to Capacity Crunch By Gail S. Jones

FROM THE TOOL BOXBy Ken Shafer, Director, Maintenance & Tank Cleaning, Superior Carriers

Superior Partners with IdleAire, Boosts Green BenefitsNew to our Pasadena, Texas terminal is a partnership with IdleAire, the groundbreaking company that provides long-haul truck drivers an alternative to idling their engines during rest periods. IdleAir’s Truck Stop Electrification (TSE) services allow drivers to turn off their diesel engines and APU’s and still enjoy heating, cooling, and standard electric inside and outside the cab, all without the noise, vibration, and exhaust fumes from idling. IdleAir’s idle reduction system relies on clean electricity generated from domestic American energy resources.

The average engine idling ten hours per day produces over 233 pounds of emissions. In addition, the average truck burns one gallon of fuel for every hour of idling, or about $30 in fuel cost. Idling for 10 hours also causes the equivalent of driving 70 miles of wear and tear on an engine. IdleAire thus addresses three critical areas of concern to SBL: environmental impact (fewer emissions), resource conservation (fuel savings), and vehicle maintenance and longevity.

IdleAire is installed at many truck stops and fleet centers throughout the country. Thanks to a grant from the State of Texas, IdleAire is able to install the system at our Pasadena terminal with no capital investment required from SBL. (Once the IdleAire system is installed, SBL’s cost per hour per truck will be $1.25.) There will be sixteen spots for tractors to use, available to both company drivers and independent contractors. IdleAire will supply window adapters for many makes and models of trucks.

Because the IdleAire system will be located at our terminal, drivers will not have to try to find an empty spot in an already crowded truck stop to benefit from this service, which also reduces the possibility of truck stop accident damage to our equipment.

Some industry analysts maintain that IdleAire could save the transportation industry tens of billions of dollars per year in fuel costs alone. This is SBL’s first venture of this type with IdleAire. As we see the benefits, we will look to add more IdleAire truck stop electrification systems. For more information on IdleAire, please visit https://www.idleair.com/

IdleAire Service Module

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AFETY ZONE

The 2017 Safety Award categories have been tabulated and audited, and it is my pleasure to congratulate the following 2017 Safety Award Winners:

Vehicle Safety Award Winners, Class of 2017In the case of a tie, the terminal with the most miles driven in each category was declared the winner.

Superior Carriers, Over Two Million Miles Class: Axis, Alabama terminal, with an accident frequency of 0.76.

Superior Carriers, Under Two Million Miles Class: Benson, Arizona terminal, with an accident frequency of 0.0. This is the second year in a row that the Benson terminal has won the Vehicle Safety Award in this class. Congratulations on your repeat win!

Carry Transit, Over One Million Miles Class – Keokuk, Iowa terminal, with an accident frequency of 1.47.

Carry Transit, Under One Million Miles Class – Jacksonville, Florida terminal, with an accident frequency of 0.00.

The 2017 Vehicle Safety Award Winners will receive a Terminal Safe Driver Award tractor decal, which should be displayed on the driver’s door, centered above the company decal and below the tractor door window.

Workers Compensation Safety Award Winners, Class of 2017The OSHA recordable frequency is based on a combination of OSHA recordable injuries and the hours worked. In the case of a tie, the terminal with the most hours worked in each category was declared the winner.

Superior Carriers, Workers Compensation, Over 25 Employees – Pasadena, Texas terminal, with an OSHA recordable frequency of 0.0. This is the second year in a row that the Pasadena terminal has won this award in this class. Congratulations on your repeat win!

Superior Carriers, Workers Compensation, Fewer than 25 employees – N. Charleston, South Carolina terminal, with an OSHA recordable frequency of 0.0.

Carry Transit, Workers Compensation, Over 15 Employees – Keokuk, Iowa terminal, with an OSHA recordable frequency of 0.0.

Carry Transit, Workers Compensation, Fewer than 15 Employees – Jacksonville, Florida terminal, with an OSHA recordable frequency of 0.0.

We also recognize the following terminals for their exemplary performance in 2017 in the Workers Compensation Safety Award category. These terminals had an OSHA recordable frequency rate of 0.0, but did not have the most hours worked in their respective categories.

Carry Transit Stockton, California (Terminal #72); Stockton, California (Terminal #43); Lafayette, Indiana; Decatur, Illinois; and Memphis, Tennessee.

Superior CarriersSpringfield, Ohio; Sparta, New Jersey; Redmond, Oregon; Marion, Virginia; Westville, Indiana; Baltimore, Maryland; Sulphur, Louisiana; Charlotte, North Carolina; Parker, Arizona; Springfield, Massachusetts; Memphis, Tennessee; Savannah, Georgia; Augusta, Georgia; Karns City, Pennsylvania; St. Gabriel, Louisiana; and Axis, Alabama.

All employees at the winning terminals will receive the Google Home Mini, a powerful device that works like your own personal Google service. It enables you to use your voice to quickly find information about the weather, news, sports and more; to manage your daily calendar; to access favorite music; to control your “smart home”, and much more.

Thank you for your continued efforts and dedication to safety. Zero accidents will continue to be our goal in 2018!

Thanks for Keeping Safety #1! By Tom Gorman, Director-EHS&S

Now, the easiest delivery in the world. Emailed. Paperless. Green. Visit www.superiorbulklogistics.com/newsletter

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BL SCOOPCongratulations to Greer, South Carolina driver David Housel on a decade of accident-free driving! "David attended Greenville Technical College, and joined Superior Carriers after graduation," notes RVP-Southern Region Phil Henderson. "We're very proud of his success!"

Superior Carriers’ Gulf Region VP Larry Bezet clearly had mixed emotions about announcing the retirement of one of Superior’s most dedicated terminal managers, Wilson Nichols, based in Parker, Arizona. “He’s given fourteen years of great service to our Company,” Bezet commented. “Wil started his career with Superior in Savannah, Georgia, but also worked in Pasadena, Texas before heading operations in Parker. His hard work and willingness to help in any way possible will certainly be missed.”

Bezet was, however, happy to report that John McTarsney, who currently manages the Benson, Arizona terminal, will now assume responsibility for both Parker and Benson. “Please join me in congratulating John on his promotion. His leadership and knowledge of the industry make him the perfect candidate for this position.”

Our former majority owner John J. Burns Jr., who passed away last year, loved his 1956 Mack B61 truck. To commemorate Mr. Burns and to support the great work of the American Truck Historical Society, Superior Carriers has purchased an engraved brick in the Honor Garden at ATHS’s headquarters in Kansas City, Missouri. The Honor Garden surrounds the historic Motor Cargo Company sign on that property.

A memorial brick engraved “1956 Mack B61, John Burns Jr.” in the Honor Garden of the American Truck Historical Society is a permanent reminder of Mr. Burns’ love of vintage trucks.

Visit our blogs soon! www.carrytransit.com/blog/ and www.superior-carriers.com/blog/

Greer, South Carolina Operations Supervisor Taylor Smith (right) gives driver David Housel an award recognizing ten years of safe driving.

WE WANT YOUR INPUT!Have comments about the Driving Force?Suggestions for improvement?Ideas for articles?Please email our editor: Gail S. Jones at gailswriting@gmail.com

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YOUR BENEFIT4Managing Your Chronic Conditions Safeguard your health by getting proper care!Do you or your spouse have diabetes or high blood pressure? Our Condition Management Program, administered by HealthCorp, is a benefit provided to you and your spouse through Superior Bulk Logistics’ health plan at no additional cost. Its education, support, and reminder services help you stay on track with recommended care, and boost your chances of getting and staying in optimum health. Year round, their nurses are available to answer your questions with unlimited inbound calls and emails.

If you or your spouse have one of the above conditions and are covered by our health plan, HealthCorp’s condition management nurses will assist you in the Condition Management Program. Each quarter, you will be contacted by phone, email, or letter informing you whether or not you are up-to-date on the recommended cares for your condition (see chart below). If you are compliant with office visits, labs, and medications as prescribed, you may qualify to keep the standard health insurance rates in 2019.

If you or your spouse are not compliant with recommended cares, beginning January 1, 2019, you will be required to pay a health plan premium surcharge of $25 per person per week. HealthCorp will be monitoring claims from November 1, 2017 through October 31, 2018. All information must be received by October 31 to be considered.

If you participate in the Condition Management Program, please let HealthCorp know your preferred mode of contact -- phone, email or mailing address. (If phone, indicate the best time to reach you.) Simply email the program coordinator at conditionmanagement@myhealthcorp.com, or call 877-457-6223, extension 5635. All of your personal information will remain strictly confidential; if you call after business hours, your voice mail also will be considered confidential.

711 Jorie Boulevard, Suite 101 NorthOak Brook, IL 60523630-573-2555

Superior Bulk Logistics, Inc.®

© 2018 Superior Bulk Logistics, Inc.

Criteria by Health Condition (Based on Nationally Recognized Guidelines)

Condition Office Visit (s) Lab (s) Other Exams/ Vaccinations Medications Home Monitoring

Diabetes Every 6 monthsPhysician Office Visit

Every 6 monthsA1C

Annually• Cholesterol panel• Creatinine• Urine microalbumin

AnnuallyDiabetic Eye Exam

Recommended• Annual Influenza

Vaccination• Pneumococcal

pneumonia vaccine, if age ≥ 2 years

Follow medications as prescribed by your provider

If ApplicableA1c > 7.0 Blood Sugar Log

High BloodPressure

AnnuallyPhysician Office Visit

Annually• Cholesterol panel• Creatinine• Potassium (if on

diuretic medication)

RecommendedAnnual Influenza Vaccination

Follow medications as prescribed by your provider

If ApplicableBlood Pressure Log

OtherInformation

• If multiple conditions exist, all criteria should be met for each condition.• Schedule labs prior to office visits, so results are available at the time of your office visit. • If a claim is not submitted for any of the above items, written documentation must be provided to HealthCorp to

receive credit for compliance.• All information must be received by October 31st, 2018.