LOWELL, Ark. – J.B. Hunt had its biggest intermodal volume week ever in September and demand remains strong this month in a potential indication that the intermodal doldrums are finally over.
J.B. Hunt’s intermodal third-quarter volume entered positive territory for the first time in three quarters, executives said on the company’s earnings call on Tuesday. J.B. Hunt’s intermodal volume was down 1% in July, up 1% in August, and up 4% in September. Overall for the quarter, intermodal volume was up 1%, with transcontinental loads up 4% and Eastern loads down 3%.
Volume continues to accelerate so far this month.
“I’m encouraged by the fact that we are seeing the volume lift across both our transcontinental and eastern network, highlighting overall increased customer demand for our intermodal service,” said Darren Field, J.B. Hunt’s intermodal president. “We believe this is driven by the overall market, but also we believe we are taking market share with our strong service that is outperforming the competition.”
The truckload intermodal customer said it was encouraged by the service it’s receiving from BNSF Railway, its partner in the West, as well as from its rail partners in the East, which include Norfolk Southern and CSX Transportation.
“Our rail providers are dialed in both in the East and the West,” Field said. “We believe that the railroads realize that the true test of their service will come once freight volumes increase with overall demand on their networks. But we and they are confident in their ability to maintain high service levels throughout the recovery.”
J.B. Hunt and BNSF have continued their efforts to coordinate their operations more closely, an effort they announced in March 2022. Some J.B. Hunt employees are now stationed at BNSF headquarters in Fort Worth to improve service and head off service problems, Field said.
“We have brought together our key intermodal operational, service design, research and technology people and put them in one location,” BNSF spokesman Zak Andersen says. “As we continue to integrate our systems with JB Hunt, it only makes sense for them to be part of that group as we work to differentiate ourselves in the marketplace.”
Domestic intermodal volumes have been challenged for more than a year as retailers work off excess inventory, consumers shift spending from goods to services, and truck capacity remains loose. J.B. Hunt’s intermodal revenue was down 15% for the quarter, while operating income fell 41% due to higher wages and benefits as well as higher equipment-related and maintenance expenses.
J.B. Hunt added 906 net new pieces of trailing equipment in the quarter, and finished the quarter with 117,400 containers in its fleet and 6,400 power units in the dray fleet.
Collusion. Where does one company end and the other begin? A BNSF predecessor, the Santa Fe, was forced to sell its significant airline holdings and operations in 1948 when the ICC demanded the railroad decide if it was a railroad or an airline. Well, fast forward. BNSF … are you a railroad or a trucking company? J B Hunt … are you a trucking company or a railroad?
Trailing equipment would be trailers, containers, and chassises.
Appreciate the clarification, Nathaniel.
Explanation of “trailing equipment” please??? And confirmation that operating income was down 41%???