It appears J.B. Hunt may be transitioning a significant portion of Walmart’s over-the-road work to intermodal transport by integrating more rail. A recent announcement indicates that the freight transportation corporation entered a multi-year intermodal service arrangement with the big box and e-commerce retailer.
J.B. Hunt’s acquisition of Walmart’s assets reportedly includes intermodal containers and chassis fleets. The freight transportation company has a reputation for reducing the costs of OTR loads by transitioning them to intermodal via freight rail.
“We have recognized there’s a lot of freight that we can convert off the highway into Intermodal,” J.B. Hunt President Shelley Simpson reportedly said.
The organization also enjoys a significant long-term arrangement with BNSF Railway. That deal focuses on intermodal transport, largely from the West Coast, and the Walmart deal may be a way to increase its freight rail business.
The relationship with Walmart has been fruitful and has lasted for decades. A recent press release indicates the service agreement and commitments each side supports will prove mutually beneficial in terms of profits and cost reductions.
“Finding new ways to serve our customers and members and exceed their expectations is important to us,” Fernando Cortes, senior vice president of transportation at Walmart, reportedly said. “Walmart’s long history of working with J.B. Hunt has many milestones of innovation and growth. This agreement will strengthen our commitment to delivering goods at an everyday low cost to our customers and members.”
The deal is expected to augment J.B. Hunt’s greatest profit driver, its $6.2 billion intermodal facet. In 2023, its intermodal wing drove almost half the organization’s revenue and handled upwards of 2 million loads.
Mainly known for its truck transportation capabilities, J.B. Hunt has been a driving force in changing how goods and materials are shipped. The organization is proud to tout OTR-to-intermodal statistics, such as reducing the “carbon footprint by an average of 60 percent.”
The diverse operation owns and operates one of the largest strings of international and domestic intermodal assets, bar none. Based in Lowell, Arkansas, J.B. Hunt has been looking for pathways to expand for nearly two years. It already possessed 118,171 containers at the close of 2023. Its goal is to swell those assets to 150,000 in the next few years.
Although OTR-to-intermodal may bode well for the environment, the organization has yet to speak directly about the impact on CDL jobs. The Fortune 300 company reportedly employs more than 20,000 truck drivers.
Sources:
https://www.jbhunt.com/blog/company/capacity-to-deliver
https://www.ajot.com/news/j.b-hunt-signs-long-term-intermodal-agreement-with-walmart
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