J.B. Hunt paints a picture of the Supply Chain

Tracking J.B. Hunt gives a good picture of what is happening in the marketplace:
  • Lower fuel prices = lower carrier revenues.  Revenue/tractor/week dropped 6.4%
  • Networks are less efficient – deadhead miles for over-the-road trucks are up (19.1% vs. 18.6% Q2 2019 and 16.7% in 2018) but trucks are doing ~17% more loads each week
  • Still no investment in OTR fleet expansion (flat year over year)
  • Dedicated carriage is still killing it.  Revenue down 1% but profits up 9%
  • Intermodal – still a long-haul favorite with average length of haul 1676 miles.  Revenue down 7% – profits down 14% – but ~2% of that was uncollected customer accounts
  • Brokerage – price is increasing.  Load volume down 11% – but revenue per load is up 2% (add in the impact of fuel – and it looks like brokered vehicles are becoming more expensive)
  • Brokerage favoring contracts vs. spot…now 71% of loads and 63% of revenue