J.B. Hunt is a leading global transportation and logistics company, providing customers with supply chain solutions for more than 100 countries around the world.
J.B. Hunt expects strong freight demand to extend into 2022, and the trucking company is urging faster equipment turns for peak season.
J.B. Hunt Transport Services Inc., a freight forecaster, anticipates delays at West Coast ports to worsen as the holidays approach, with manpower shortages snarling logistical networks and high shipping demand stretching into 2022.
“We anticipate the bottlenecks on the West Coast will compress and even exacerbate additional peak-season capacity requirements into November and December,” J.B. Hunt’s chief commercial officer Shelley Simpson said on a conference call Friday to discuss the company’s third-quarter results.
On the call, executives blamed a lack of truck drivers and train employees, as well as staffing shortages at client warehouses, for most of the supply-chain chaos.
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The backlog of ships waiting for berths at congested West Coast ports is complicating matters, according to Ms. Simpson, and delaying the delivery of some of the company’s containers, which are on ships waiting offshore for berth space in the ports of Los Angeles and Long Beach.
According to Ms. Simpson, the firm has been polling its retail customers to see whether they think certain items would be absent from shop shelves before Christmas. “I believe we’re leaning toward yes,” she replied, implying that there would be more shopping and retail sales in January, as well as a greater need for us to replace any of those items.
The business, headquartered in Lowell, Ark., delivers products by truck and rail, as well as providing last-mile delivery services.
On the results conference, J.B. Hunt Chief Executive John Roberts stated, “We have hit all-time highs in the requirement for business drivers in all sectors this year.” “Continuous abnormalities in demand patterns,” he added, “significantly stemming from port, labor, and inventory problems with our clients.”
The carrier’s net profit increased 59 percent year over year to almost $200 million in the third quarter, while revenue increased 27 percent to $3.14 billion.
J.B. Hunt’s truckload division, which transports full trailers of products for shippers, saw revenue rise 85 percent year over year, excluding fuel surcharges, as retailers scramble to replenish inventory. In comparison to the previous quarter, operating income in the unit increased by almost 400 percent due to higher pricing and a 12 percent rise in loads.
J.B. Hunt’s main intermodal operation, which includes transporting goods great distances by truck and rail, saw shipment volumes fall. Overcrowding on rail networks slowed freight movement, while clients held containers and other equipment at their facilities for longer than normal, according to the firm.
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Jennifer Smith can be reached at [email protected]
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‘Freight Firm Sees Strong Demand,’ appeared in the print version of the October 16, 2021, issue.
J.B. Hunt Expects Strong Freight Demand to Extend Into 2022 is a news article that discusses the expectations of the company’s freight demand to extend into 2022. Reference: jbht stock news.
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