J.B. Hunt Acquires BNSF Logistics' Brokerage Unit
.B. Hunt is set to acquire BNSF Logistics' brokerage operations, strengthening their 3PL services.
In a big industry shakeup, J.B. Hunt Transport Services is set to acquire the brokerage operations of BNSF Logistics, a subsidiary of BNSF Railway. Here are the details of this game-changing development:
- J.B. Hunt is expanding its horizons by getting its hands on BNSF Logistics' full suite of 3PL services, from truckload to drayage.
- The deal, however, won't touch the part of BNSF Logistics that handles warehouse, specialty retail, heavy-haul, and project-related services.
Why This Matters?
- J.B. Hunt CEO John Roberts sees this as a chance to "drive value for customers" and tap into their tech platform, J.B. Hunt 360.
- This move strengthens a long-standing relationship between J.B. Hunt and BNSF. They've been intermodal partners on the West Coast since 1989 and plan to expand their intermodal capacity significantly.
What's the Game Plan?**
- J.B. Hunt plans to grow its container fleet to 150,000 units over the next few years and has been setting up transloading facilities along the coasts.
- BNSF is pulling its weight, too, with a new rail hub in Washington, bolstering container service between the Port of Tacoma and Chicago.
The Fine Print
- Unfortunately, the financial details of this transaction remain shrouded in mystery.
- The deal is expected to close by year-end, funded by cash on hand. A long-term service agreement will ensure the newly acquired operations continue performing 3PL services for BNSF Railway.
JB Hunt ICS division operated at a loss the last 3 consecutive quarters, and 2/4 last years.— rob liss (@yorobliss) September 14, 2023
It’s an injection of biz for JBH that sees brokerage as a growth op… one they’ve struggled with outside Covid tailwinds.
Interested to see what BNSF does with the cash. pic.twitter.com/Z2TRrYB6A7