This week’s Audio Brief consists of 15 slides taken directly from Scott and the team’s recently released 130 page intermodal industry report.  We believe the best secular story in freight for at least the next five years should be domestic intermodal growth.  Over the past five years domestic intermodal volumes have grown at a CAGR of over 8% despite GDP on average growing only 0.6%. This growth has been driven by increased rail capacity, more efficient rail lines that more effectively compete with highway, vastly improved rail service, rising fuel costs and rising truck prices.  Our report and audio clip looks at among other things how relatively small the intermodal market is compared to the domestic trucking market and how much more market share intermodal can take. The Intermodal Marketing Companies (“IMCs”)—JBHT, HUBG and PACR—have by far the most exposure to domestic intermodal followed by the rails. JBHT remains our favorite way to play this strong secular trend given its strong market position, preferential service contracts with BNSF and NSC and its unique ability to set pricing rather than take pricing from the railroads.  We show in this audio brief why we believe that JBHT’s combination of high-end revenue growth, returns on capital and free cash generation are likely to propel its valuation to expand to the top of our coverage on average the next five years, even above EXPD and CHRW.