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.
The Cass Freight Index booked 7% sequential gains in shipments and expenditures during September.
Shares of J.B. Hunt Transport Services move 9% lower after the company fails to meet recently raised analyst expectations. Intermodal service headwinds and elevated costs were the culprits.
Tightening truckload and intermodal markets have carriers expecting the hot freight market to carry forward. One carrier is calling for large rate increases in 2021.
J.B. Hunt easily bests consensus forecasts led by better-than-expected intermodal and dedicated results. The back half of 2020 remains hazy on COVID-19 fears.
Hub Group’s first quarter miss included several one-off expenses unlikely to recur. However, volume headwinds are expected to persist in the near-term.
Declines in Cass data accelerate but report calls for rates to inflect higher in 2020.
The Cass Freight Index sees its steepest decline in shipments since the Great Recession.
Hub Group believes “soft” intermodal volumes will begin to flatten out and that the 2019 peak shipping season will be similar to that of 2017.
Hub Group sees record earnings despite a “softening demand environment” and “increased truckload and intermodal competition.”
