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Dive Brief:
- JB Hunt Transport Services acquired Walmart’s intermodal assets as part of a long-term deal with the retailer, according to Announcement February 22.
- The agreement strengthens the companies’ decades-long partnership by increasing volume and capacity commitments for the retailer and the carrier, the companies said in the release.
- “This agreement will strengthen our commitment to deliver everyday low-cost goods to our customers and members,” said Fernando Cortes, Walmart’s vice president of transportation.
Dive Insight:
The length of the deal was not disclosed, and representatives for Walmart and JB Hunt declined to disclose the number of intermodal assets included in the deal.
However, Jason Hilsenbeck, president of LoadMatch and Drayage.com, told Trucking Dive that he estimates the deal will increase JB Hunt’s intermodal fleet by 15,500 containers.
The deal fits with JB Hunt’s strategy to grow its intermodal fleet to 150,000 containers sometime between 2025 and 2027. The trucking company had 118,171 containers at the end of the fourth quarter, according to latest earnings release.
Hilsenbeck sees the deal as a savings move for Walmart, made after looking at the retailer’s fleet operating costs. He suspects the retailer probably decided it was best to scrap its private intermodal fleet.
“I don’t think Walmart understood the unpredictable costs of a private fleet,” he said in a LinkedIn message. “Walmart excels at managing a private fleet of OTR trailers and corporate truck drivers, but the 53′ intermodal is completely different from OTR trailers.”
JB Hunt reported an increase in intermodal volumes in the fourth quarter, and while executives were uncertain whether the trend would continue through 2024, the company remains committed to growing the sector.
“We can save customers money by converting road shipments to intermodal, which are cheaper and less carbon intensive,” said JB Hunt president and future CEO Shelley Simpson. the earnings call.