JB Hunt shows what is happening in the marketplace
Intermodal:
Revenue per load up 7.5 % and average length of haul down 1%
Intermodal was 68% of the profit in JB Hunt
Brokerage (ICS):
Gross margins holding at ~14.4%, loads up 5% with the carrier base up 15%…up to 44 branches and still investing in geographic expansion and systems. Revenue up 41% with profits up 99%
Truckload (JBT):
JBT is reducing its footprint – tractors down 11%, loads down 15% but revenue/tractor per week is way up
Dedicated
Somehow they managed to reduce their operating income – while revenue /truck is up 5% and loads are up 15% – because truck numbers are up 1329. Most of these were conversions of private fleets 55% and home delivery 32% that they call “final mile services (FMS)”. Operating income decreased 9% from a year ago caused by:
- winter weather inefficiencies
- higher insurance and claims costs
- increased driver wages and recruiting costs; higher non driver
- increased maintenance costs
- $1.9 million in additional non-cash amortization – i.e. not real (maybe absorbing good will from an acquisition)
What you don’t see when looking at the segments, is that Revenue JUST increased slightly more ($319 MM) than expenses (300MM) – not good news for shareholders.
What you should take from all this data is confirmation of what you know already:
- Prices are up
- Brokers are making a killing
- It is hard to get drivers even with higher wages
