APK Oasis

JB Hunt's Intermodal Rate Pressures Linger, but Progress Likely in the Year Ahead

By Matthew Young
From Morningstar

JB Hunt's Intermodal Rate Pressures Linger, but Progress Likely in the Year Ahead

At its core, J.B. Hunt is an intermodal marketing company; it contracts with the Class I railroads for the line-haul movement of its domestic containers. It was one of the first for-hire truckload carriers to venture into intermodal shipping, forming a partnership with BNSF Railway in the West in 1990, followed by an agreement with Norfolk Southern in the East. Hunt has established a definitive leadership position in intermodal shipping, with a 20%-plus share of an approximate $25 billion industry. The next-largest competitor is Hub Group, followed by the intermodal divisions of Schneider National, STG Logistics, and Knight Swift. Intermodal makes up around 48% of Hunt's total revenue.

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