On its first-quarter call with analysts, management from J.B. Hunt said demand indications from customers have been strong. The path is likely not as easy for smaller players in the space.
J.B. Hunt Transport Services beat fourth-quarter expectations. Visibility into 2022 remains murky but management is calling for continued growth.
“From a price perspective, from a capacity perspective, going into Q2, 2022 is before I’m going to see anything really letting up,” said Sherman Barnes, SVP of sales and marketing at Trio Trucking.
Appearing at an investor conference Wednesday, management from J.B. Hunt Transport Services said delivery schedules for new containers are being hindered by a lack of ocean capacity, not manufacturers’ build schedules.
J.B. Hunt believes recent winter storms will negatively impact first-quarter operating income by $15 million to $20 million. The company said it had been successful advancing its intermodal service initiatives prior to the storms.
Appearing at an investor conference, J.B. Hunt CEO John Roberts said this year’s intermodal bid season will go a long way in determining whether the company curtails the division’s margin target.
J.B. Hunt Transport Services’ fourth quarter came in better than expected. However, the company said it was reviewing long-term margin targets across all segments. Intermodal margin forecasts may be reduced but other units could see upward revisions.
Hub Group sees a strong demand environment continuing as most of its customers are operating with lean inventories. The company expects tight freight fundamentals to create a favorable rate environment in 2021.