J.B. Hunt Struggles With Freight Recession

J.B. Hunt Struggles With Freight Recession

FreightWaves reports that J.B. Hunt is facing significant challenges due to a “freight recession,” which has impacted its Q1 earnings. The company’s results have been dragged down by weaker domestic trucking volumes and a falloff in container imports.

Brokerage Unit Takes Hit

  • Revenue down 42% YoY to $385 million
  • Loads fell 26%; yields down 22%
  • Operating loss of $5.4 million

Truckload Facing Challenges

  • Truckload revenue down 10% YoY to $206 million
  • Revenue per load fell 17%
  • 8% increase in volumes partially offset decline

Intermodal Capacity Issues

  • Intermodal loadings down 5% YoY
  • Container imports into U.S. down nearly 30% YoY over last two months
  • Current bid compliance at “all-time low” in mid-50% range

J.B. Hunt has experienced a considerable drop in container imports on the West Coast, as well as domestic trucking volumes. This indicates that businesses are importing less goods due to the reduced consumer demand and weakening economic conditions. If we see this trend continue, we can expect job losses, reduced investments, and further slowdown in economic activity.

Great! You’ve successfully signed up.

Welcome back! You've successfully signed in.

You've successfully subscribed to FreightCaviar.

Success! Check your email for magic link to sign-in.

Success! Your billing info has been updated.

Your billing was not updated.