Exhibit 12(b) CNF TRANSPORTATION INC. COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Year Ended December 31, 1998 1997 1996 1995 1994 (dollars in thousands) Combined Fixed Charges and Preferred Stock Dividends: Interest expense $ 32,627 $ 39,553 $ 39,766 $ 33,407 $ 27,065 Capitalized interest 2,342 2,077 2,092 731 793 Dividend requirement on Series B Preferred Stock(1) 12,133 12,377 12,645 12,419 12,475 Dividend requirement on Series C Preferred Stock (1) - - - 2,207 10,627 Dividend requirement on preferred securities of subsidiary trust 6,250 3,471 - - - Interest component of rental expense (2) 40,750 35,607 28,521 29,210 28,776 Fixed Charges $ 94,102 $ 93,085 $ 83,024 $ 77,974 $ 79,736 Earnings: Income from continuing operations before taxes $250,411 $221,814 $147,132 $152,942 $165,129 Fixed charges 94,102 93,085 83,024 77,974 79,736 Capitalized interest (2,342) (2,077) (2,092) (731) (793) Preferred dividend requirements(3) (12,133) (12,377) (12,645) (14,626) (23,102) $330,038 $300,445 $215,419 $215,559 $220,970 Ratio 3.5x 3.2x 2.6x 2.8x 2.8x <FN> (1) Dividends on shares of the Series B cumulative convertible preferred stock are used to pay debt service on notes issued by the Company's Thrift and Stock Plan. Preferred stock dividends include dividends on the Series C Conversion Preferred Stock, all of which was converted into Common Stock in March 1995. (2) Estimate of the interest portion of lease payments. (3) Preferred stock dividend requirements included in combined fixed charges but not deducted in the determination of Income from Continuing Operations Before Income Taxes.