What are J B Hunt Transport Services Inc's Business Segments?
JBI Segment
The transportation service offerings of our JBI segment utilize arrangements with
most major North American rail carriers to provide intermodal freight solutions
for our customers throughout the continental United States, Canada, and Mexico.
Our JBI segment began operations in 1989, forming a unique partnership with what
is now the BNSF Railway Company; this was a watershed event in the industry and
the first agreement that linked major rail and truckload carriers in a joint service
environment. JBI draws on the intermodal services of rail carriers for the underlying
linehaul movement of its equipment between rail ramps. The origin and destination
pickup and delivery services (“drayage”) are handled by our company-owned
tractors for the majority of our intermodal loads, while third-party dray carriers
are used where economical. By performing our own drayage services, we are able
to provide a cost-competitive, seamless coordination of the combined rail and
dray movements for our customers.
JBI operates 73,298 pieces of company-owned trailing equipment systemwide. The
fleet primarily consists of 53-foot, high-cube containers and is designed to take
advantage of intermodal double-stack economics and superior ride quality. We own
and maintain our own chassis fleet, consisting of 65,455 units. The containers
and chassis are uniquely designed so that they may only be paired together, which
we feel creates an operational competitive advantage. JBI also manages a fleet
of 3,916 company-owned tractors, 761 independent contractor trucks, and 4,756
company drivers.
DCS Segment
DCS focuses on private fleet conversion and creation in replenishment, specialized
equipment, and final-mile delivery services. We specialize in the design, development,
and execution of supply-chain solutions that support a variety of transportation
networks. Our final-mile delivery services are supported with a network of approximately
89 cross-dock locations nationwide, with 98% of the continental U.S. population
living within 150 miles of a cross-dock location. Contracts with our customers
are long-term, ranging from three to ten years, with the average being approximately
five years. Pricing of our contracts typically involves cost-plus arrangements,
with our fixed costs being recovered regardless of equipment utilization, but
is customized based on invested capital and duration.
ICS Segment
ICS provides traditional freight brokerage and transportation logistics solutions
to customers through relationships with thousands of third-party carriers and
integration with our owned equipment. By leveraging the J.B. Hunt brand, systems,
and network, we provide a broader service offering to customers by providing flatbed,
refrigerated, expedited, and LTL, as well as a variety of dry-van and intermodal
solutions. ICS provides single-source logistics management for customers desiring
to outsource their transportation functions and utilize our proven supply-chain
technology and design expertise to improve efficiency. ICS operates 29 remote
sales offices or branches, as well as on-site logistics personnel working in direct
contact with customers.
JBT Segment
The service offering in this segment is full-load, dry-van freight, utilizing
tractors operating over roads and highways. We typically pick up freight at the
dock or specified location of the shipper and transport the load directly to the
location of the consignee. We use our company-owned tractors and employee drivers
or independent contractors who agree to transport freight in our trailers.
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