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

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.

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J.B. Hunt | September 22, 2023

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PR Newswire | October 18, 2023

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The 28th Annual Third-Party Logistics Study, created by supply chain professor and researcher Dr. C. John Langley of Penn State University, along with NTT DATA and Penske Logistics, examined how supply chains are navigating today's challenges through the adoption of data-driven approaches and emerging technologies. The 2024 publication was presented at this year's Council of Supply Chain Management Professionals (CSCMP) EDGE conference in Kissimmee, Florida. The study surveyed third-party logistics (3PL) providers and users of 3PL services to understand the current state of 3PLs, how 3PL relationships are evolving, the increasing flow of data and the growing importance of automation. This year's report offers updated insights on navigating the talent crisis and economic volatility, the untapped potential of reverse logistics, the continued growth of the cold chain, the slowdown of online shopping and consumers' shifting expectations. The key findings are: 3PL-Shipper Relationships Continue to Strengthen: Shippers are more satisfied with their 3PLs in the most recent study. Shippers conveyed their positivity at a 95% response rate, up 12% from last year. However, there was an increase in the number of shippers that noted that they were either reducing or consolidating their 3PLs (78% this year vs. 71% last year). Battle for Talent is Increasing: 78% of shippers and 40% of 3PLs said labor challenges have impacted their service level agreements. The hardest positions to fill are for hourly workers, such as pickers and packers, and licensed hourly workers, such as truck drivers and equipment operators. 3PLs and shippers said they are adopting technology and automation to increase efficiency, make work safer and attract employees. Data, Analytics and Intelligence is Driving Supply Chain Optimization: The amount of data flowing between shippers and 3PLs continues to grow. Almost half of shippers and 3PLs identified the need and have plans toward automating supply chain planning decisions, and 25% of shippers and 27% of 3PLs said they have already started to automate low-risk decisions. Shippers see the greatest value in supply planning (65%), demand forecasting (61%) and inventory management (61%). 3PLs noted that they valued route optimization the most (61%), followed by inventory management (55%) and freight invoicing and billing (54%). Emerging Technology is Vital to Future Growth: It is agreed that emerging technology adoption is vital to the future growth of supply chains (87% of shippers and 94% of 3PLs). The top areas of interest are advanced predictive analytics, wearables and mobile technology, consolidated e-commerce platforms and warehouse automation and robotics. Improving Supply Chain Resiliency is a Priority for Shippers and 3PLs: Shippers and 3PLs are actively working to balance the need for resiliency with inventory levels, sourcing and cost. Information is aiding supply chains via data-driven decisions that allow for contingency planning and network optimization. Direct-to-consumer online sales have started to slow down, with shippers and logistics providers working to meet the ever-evolving needs of the consumer. Dr. Langley's research continues to capture and measure this evolving industry and document the transformation of the third-party logistics sector as new challenges and opportunities emerge. The 2024 study and past versions are available for download at www.3PLStudy.com. "The 3PL sector continues to face a number of externalities, and providers of logistics services are focused on improving logistics effectiveness and reducing overall supply chain costs," Dr. Langley said. "3PLs and their customers are leveraging their relationships along with technology, data, analytics and supply chain talent to increase agility and enhance success." "The 2024 3PL Study does an excellent job of untangling the complexities of today's supply chain and providing nuanced understandings of its underpinnings," shared Andy Moses, senior vice president, sales and solutions, Penske Logistics. "There are many needs that shippers have in the current environment and third-party logistics providers are in prime position to stabilize and adapt as needed." "Now in its 28th year, the 3PL Study continues to be a great benchmark of the supply chain trends as well as changes and emerging trends in the shipper & 3PL/4PL relationship," added Irv Grossman, senior vice president, NTT DATA Supply Chain Consulting (formerly Chainalytics). "The insights shared throughout will help both providers and shippers be more effective in today's supply chain environment." 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J.B. Hunt | September 22, 2023

J.B. Hunt to acquire BNSF Logistics' brokerage operations, expanding its logistics capabilities. The acquisition builds on a 30-year partnership between J.B. Hunt and BNSF Railway. Brad Hicks, EVP of J.B. Hunt, highlights the value proposition for customers and growth opportunities. J.B. Hunt Transport Services, North America's supply chain solutions provider, has significantly expanded its capabilities. In collaboration with Burlington Northern Santa Fe, LLC, the company is making waves in the industry with the announcement of a definitive agreement. This agreement paves the way for the subsidiary, J.B. Hunt Transport, Inc., to acquire the brokerage operations of BNSF Logistics, LLC, a notable affiliate of BNSF Railway Company renowned for its comprehensive third-party logistics services, covering a wide spectrum, from full truckload and flatbed to temperature-controlled, drayage, expedited, and less-than-truckload services. Katie Farmer, CEO and President of BNSF Railway, mentioned, This agreement with J.B. Hunt reflects companies’ shared commitment to provide industry-leading intermodal service to the customers. This continues more than 30 years of partnership between BNSF and J.B. Hunt and builds on our announcement to further integrate our joint services. [Source – Business Wire] Additionally, BNSF Logistics also offers additional services such as warehousing, retail specialty, heavy-haul, and project services; however, these services are not part of the current transaction. This strategic move underscores J.B. Hunt's commitment to strengthening its logistics and supply chain position, enhancing its service offerings, and ultimately delivering greater value to its customers. Executive Vice President of People and President of Highway Services at J.B. Hunt, Brad Hicks, expressed that BNSF Logistics has demonstrated impressive customer service across various customer sizes. He highlighted that this acquisition, combined with their outstanding intermodal and J.B. Hunt 360box power-only service offering, will create a compelling value proposition for customers, foster growth opportunities for J.B. Hunt, and enhance service capabilities for BNSF Logistics' employee and agent model. In 1989, J.B. Hunt and BNSF Railway reshaped transportation with an innovative double-stack shipping solution, a pioneering concept that seamlessly combined rail and trucking services. In March 2022, these industry leaders initiated a collaborative effort to increase the intermodal sector's capacity significantly. This ongoing partnership builds upon a longstanding business relationship and shared strategic vision focused on delivering efficient, value-driven solutions to customers within the North American supply chain. As the transaction concludes, the brokerage operations of BNSF Logistics will become integrated into J.B. Hunt's integrated capacity solutions for segment reporting purposes. The acquisition will be financed using J.B. Hunt's existing cash balance and is on track to be finalized by the end of the year. It's important to note that BNSF Logistics currently offers value-added 3PL services for BNSF Railway. Upon the transaction's completion, a long-term service agreement will be established between BNSF Railway and J.B. Hunt, ensuring the continued provision of these vital services by J.B. Hunt for BNSF Railway. This strategic alignment is set to bolster operational efficiency, elevate service quality, and further solidify the commitment of both entities to the North American supply chain.

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PR Newswire | October 18, 2023

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Unisys Logistics Optimization uses pre-trained models to generate answers to complex queries in seconds. This represents a substantial leap forward, as this rapid turnaround was not possible previously. Traditional computational tools would require years to collect and learn from operational data to produce similar results. The solution provides logistics companies, such as air cargo carriers, with an optimal plan for packing, storing and routing shipments across multiple vehicles more efficiently and cost-effectively. Piloting the new solution in pursuit of its next breakthrough in logistics optimization is Malaysia Aviation Group's (MAG) cargo arm, MAB Kargo Sdn Bhd, which serves nearly 100 destinations worldwide. Currently, the airline's flight planners spend a significant amount of time manually selecting and assigning each shipment to unit load devices (ULDs), resulting in high operational overhead. Unisys will implement a secure and reliable solution that provides MASkargo flight planners with a graphic cargo plan tailored to maximize their cargo capacity, profitability and ability to manage priority shipments that meet customer expectations. "MASkargo is continuously seeking ways to enhance efficiency, improving the customer experience and touchpoints," commented Mark Jason Thomas, CEO of MASkargo. "Our collaboration with Unisys represents part of MASkargo's digitalization journey by employing the use of quantum computing, artificial intelligence and machine learning to optimize processes, supporting network planning, and ensuring reliable, clear communication of accurate information." Unisys has an extensive track record of serving and innovating for logistics and transportation companies for more than 30 years, putting the company in a unique position to offer a wealth of industry expertise. Unlike other solutions in the market, Unisys Logistics Optimization™ does not require any additional data training to begin deployment, and it does not upend existing IT infrastructure or operations – providing immediate and ongoing value to clients as its accuracy self-improves over time through daily use, so it is never out of date. "Containing logistics costs is mission critical, and companies are seeking solutions that will meet that important need," said Chris Arrasmith, senior vice president, Enterprise Computing Solutions at Unisys. "We have built true operational foresight by integrating advanced analytics, reinforced machine learning, and the best of classical and new quantum computing architectures, enabling us to drive value in near real-time for clients." Unisys Logistics Optimization™ is built for air cargo, ground handlers and freight forwarders and is designed to help logistics companies optimize in three ways: Capacity: The solution evaluates loading strategies for companies by predicting and prescribing scenarios for pallet and ULD builds, allowing for more day-of shipment departures. It also helps identify opportunities for additional carrier revenue by detecting unused space. Inventory: The solution can predict and prescribe locations and packaging requirements on inventory, as well as amounts of inventory and freight sensitivity. This reduces packing and build times, minimizing freight damage or spoilage, preventing costly claims. Routing: The solution evaluates all potential routes and incorporates dynamic data sets, such as weather and travel times, to optimize and identify ideal outbound and reverse logistics routes. About Unisys Unisys is a global technology solutions company that powers breakthroughs for the world's leading organizations. Our solutions – digital workplace; cloud, applications & infrastructure; enterprise computing; and business process – help our clients challenge the status quo and create new possibilities. To learn how we deliver breakthroughs for our clients – and have been pushing the possible for 150 years – visit unisys.com and follow us on LinkedIn. #Unisys150. About MASkargo MAB Kargo Sdn Bhd is the air cargo arm and subsidiary of the Malaysia Aviation Group (MAG), a global aviation organisation comprising three focused business portfolios from Airlines, Loyalty and Travel Solutions (LTS) and Aviation Services. MASkargo operates three A330-200F freighters from its home base in the Kuala Lumpur International Airport. MASkargo offers a range of services in the air logistics trade, including belly space capacity, which serves almost 100 destinations worldwide as well as warehouse facilities in KLIA, Penang International Airport, Kuching International Airport and Kota Kinabalu International Airport.

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