TRANSPORTATION

J.B. Hunt and BNSF Announced a Partnership to Improve Intermodal Capacity Challenges

J.B. Hunt and BNSF | March 17, 2022

BNSF Railway Company and J.B. Hunt Transport Services Inc. have partnered to launch a joint effort aimed at substantially improving capacity in the intermodal marketplace in order to meet the expanding needs of their customers.

Intermodal services have seen a considerable increase in demand in recent years as businesses seek to secure capacity while lowering prices and carbon emissions. J.B. Hunt plans to grow its intermodal fleet to 150,000 containers in the next three to five years, a 40 percent increase from its present count at the end of 2021, based on existing and expected trends. From 2020, the organization has completed over four million intermodal cargoes.

 “Increased demand and constrained capacity have disturbed intermodal in recent years, leading to low container velocity and high dwell times. J.B. Hunt and BNSF will collaborate to restore the consistency and reliability that consumers demand from intermodal services, as well as expand intermodal conversion and transloading services. This goal is in line with J.B. Hunt's mission statement, which is to "build the most efficient transportation network in North America."

-John Roberts, president and CEO of J.B. Hunt

J.B. Hunt will increase its container count while also adding supporting chassis based on market demand. Together both companies have spent billions of dollars to make sure that intermodal can grow with customers and meet the growing demand for intermodal services.

“For more than 30 years, J.B. Hunt Transport Services and BNSF's predecessor, Santa Fe Railway Company, The Atchison, Topeka, and loaded a Hunt trailer onto a railcar to help usher in the modern age of intermodal freight transport," said Katie Farmer, BNSF president, and CEO.

BNSF's industry-leading services combined with J.B. Hunt's unrivalled intermodal products have established a new benchmark for seamless door-to-door transportation. Combining our platforms with real-time data exchanges will raise the bar on service to the next level through technology and creativity. The aim is to provide the best of both worlds: cost-effective and ecologically responsible service from the industry's top providers.

The companies will leverage technology, including the industry-leading J.B. Hunt 360°®, to boost rail transport efficiencies. The 360°® is one of the few digital freight matching platforms in the industry that supports intermodal services. According to J.B. Hunt's research of 360 transactions and annual bid activity, an additional 7 to 11 million tons of cargo might be converted to intermodal, allowing for long-term growth while reducing carbon emissions.

In 1989, J.B. Hunt and BNSF created a first for modern transportation by inventing a double-stack shipping solution that would complement both rail and trucking services. With more than 109,000 53' containers with company-owned chassis and tractors, J.B. Hunt now has the largest company-owned intermodal fleet in North America. BNSF owns and operates the world's largest intermodal rail network, transporting over a million intermodal units per year than any other railroad. Thanks to their investments, they also own the fastest intermodal route between Southern California and the Midwest.

Spotlight

The effects of corrosion on naval vessels have become more prominent as the acquisition of new equipment has slowed and more reliance is placed on the service of aging equipment. Recent studies in the US indicate corrosion is having an enormous impact on military costs, representing one of the largest through life cost components of military systems. These costs include the direct costs such as the manpower and material that are used to repair the damage resulting from corrosion and the indirect costs that, were they to be quantified, would significantly increase the total reported costs, such as the vessel or systems degraded availability. Corrosion also poses numerous safety risks and is currently a source of major concern to platform managers.

Spotlight

The effects of corrosion on naval vessels have become more prominent as the acquisition of new equipment has slowed and more reliance is placed on the service of aging equipment. Recent studies in the US indicate corrosion is having an enormous impact on military costs, representing one of the largest through life cost components of military systems. These costs include the direct costs such as the manpower and material that are used to repair the damage resulting from corrosion and the indirect costs that, were they to be quantified, would significantly increase the total reported costs, such as the vessel or systems degraded availability. Corrosion also poses numerous safety risks and is currently a source of major concern to platform managers.

Related News

SUPPLY CHAIN

BCG Digital Ventures and MISC Announce Co-Investment in Three Ventures to Disrupt the Maritime Solutions Space with Deep Tech

MISC | August 16, 2021

BCG Digital Ventures (BCGDV), the business-building and corporate innovation arm of Boston Consulting Group (BCG), today announced its previous investment in three ventures: SOL-X, Chord X, and Spares CNX. BCGDV’s investment was made last year while the ventures were in stealth mode to allow for a deeper focus on business development activities, including staffing, product development, and target market acquisition. With the objective of disrupting the shipping industry, BCGDV has also announced that the three maritime ventures are joining its broader portfolio of innovative businesses and products with the backing of BCGDV and leading international shipping company MISC Group. These three separate start-ups differ in their approach, yet together they powerfully demonstrate the transformational power of strategically applying digital and deep tech, such as AI, ML, and IIoT, to create massive operational efficiencies across the shipping value chain in a way that has never been done before. The ventures will be key drivers for the smart ship, which leverages automation and assistive technologies to ensure safety, efficiency, and environmental sustainability. “With 90% of the world’s goods transported by ships, and considering the fragmented attempts at innovation, we believe these investments are going to be absolutely transformative to the maritime industry, as well as to industries such as mining, energy, and industrial goods,” said Sid Shah, Managing Director & Partner and Global Leader of BCGDV’s Energy Practice. “We couldn’t be more excited to support these teams on their bold journeys.” All three ventures are based in Singapore, a critical hub for BCGDV that was recently placed at the top of the IMD World Competitive Center’s ranking in digital competitiveness. About BCG Digital Ventures BCG Digital Ventures is a corporate innovation, incubation, and investment firm. We invent, launch, scale, and invest in industry-changing new businesses with the world’s most influential companies. Our diverse, multidisciplinary team of entrepreneurs, operators, and investors works cross-functionally, rapidly moving from paper to product to business in less than 12 months. Founded in 2014 as a subsidiary of Boston Consulting Group, we have Innovation Centers and satellite locations in four continents and continue to expand our footprint across the globe. About MISC MISC Berhad was incorporated in 1968 and is a world-leading provider of international energy-related maritime solutions and services. The principal businesses of the Group comprise energy shipping and its related activities, owning and operating offshore floating solutions, marine repair and conversion, engineering and construction works, integrated marine services, port and terminal services, and maritime education and training.

Read More

SUPPLY CHAIN

Walmart Collaborates with Symbotic to Implement an Industry-Leading Supply Chain Automation System

Walmart | July 19, 2021

Symbotic, a robotics and automation company focusing on reimagining the traditional consumer goods supply chain, and Walmart announced a partnership to reimagine the retailer's regional distribution network. In 2017, Symbotic implemented its system for the first time in Walmart's Brooksville, Florida, distribution center. Since then, the companies have collaborated to improve the system. Today, Symbotic will begin upgrading 25 additional regional distribution facilities with the high-tech technology that will help Walmart achieve its goal of operating a best-in-class supply chain. The supply chain at Walmart is critical to ensuring that customers can shop when, when, and how they want. Walmart will update and digitize its existing supply chain facilities to meet evolving customer demand and create a frictionless experience by adopting Symbotic's system. Furthermore, the retailer will provide associates with training opportunities to prepare people for future jobs, increase productivity, and reduce costs. Symbotic's scalable, integrated solution employs a fleet of fully autonomous robots in tandem with proprietary software to achieve industry-leading throughput and efficiency while increasing warehouse capacity. With the new system in place, Walmart stores will reduce the time it takes to unload, sort, and stock freight. About Walmart Walmart Inc. helps people all over the globe save money and live better lives - anytime and anywhere - via retail stores, online, and mobile devices. Approximately 220 million consumers and members visit approximately 10,500 stores and clubs under 48 banners in 24 countries and eCommerce websites each week. Walmart employs 2.2 million employees globally and expects $559 billion in sales in the fiscal year 2021. In addition, Walmart is a market leader in sustainability, corporate philanthropy, and employment opportunities. About Symbotic Symbotic LLC is a robotics and automation company that aims to revolutionize the conventional consumer products supply chain. The company has spent over a decade perfecting its warehouse automation systems to disrupt the products supply chain between manufacturers and consumers. With over 250 issued patents, Symbotic's platform is an end-to-end system that reimagines every aspect of the warehouse and is powered by a unique combination of proprietary software and a fleet of fully autonomous robots. The technology increases storage density, expands possible SKUs, minimizes product damage, and boosts throughput and speed to customers. Symbotic is rapidly expanding, with a pipeline of new and existing warehouses in the United States and Canada to build transformative solutions for Fortune 100 retailers and wholesalers.

Read More

LOGISTICS

Kenco Logistics Establishes a New Multi-Client Distribution Center

Kenco Logistics | May 07, 2021

Kenco Logistics, one of North America's leading third-party logistics (3PL) companies, announced today the opening of a new multi-client facility on its southern California campus in Perris, CA. The fulfillment center, at 397,000 square feet, is sized and located to fulfill consumer needs, support stable supply chains, and accelerate growth. This current Perris warehousing and logistics services facility joins Kenco's other shared facilities close to and convenient access to the Los Angeles center. The facility is staffed by skilled workers and assisted by innovative technology to ensure consumers have the resources they need to maximize their supply chains. This includes warehouse management solutions (WMS) and Kenco's LoadProof application, which works to reduce chargebacks in the warehouse by capturing images. “When combined with our existing Perris facilities, this new fulfillment center provides us with more flexible and multi-client customer space in Southern California,” said David Caines, Chief Operating Officer, Kenco Logistics. “The new joint facility enables them to assist organizations in sharing labor in a competitive labor market and navigating fluctuating demand to exceed customer demands. Kenco helps to promote accelerated growth for our customers with over 70 years of business experience and a portfolio of powerful solutions. About Kenco Kenco offers integrated logistics solutions such as procurement and delivery, comprehensive transportation management, material handling services, real estate management, and information technology, all of which are designed for operational excellence. Kenco, a woman-owned business with a solid financial foundation, has been cultivating long-term client relationships for over 70 years. Kenco's emphasis is on common-sense ideas that provide extraordinary value.

Read More