|
J.B. Hunt Transport Services, Inc. - Transportation / Trucking -
Category Directory
615
J.B. Hunt Corporate Drive
Lowell, Arkansas 72745
(479) 820-0000
www.jbhunt.com
Sales
$2.4
billion
Business Description
We are one of the largest full truck-load transportation and logistics
companies in North America. J.B. Hunt Transport Services, Inc. (JBHT) is a
publicly held holding company, which together with our wholly owned
subsidiaries and associated companies, provides a wide range of
transportation and logistics services to a diverse group of customers
throughout the continental United States, Canada and Mexico. We were
incorporated in Arkansas on August 10, 1961, and have been a publicly held
company since our initial public offering in 1983. Our service offerings
include transportation of full truck-load, containerizable freight, which we
directly transport utilizing our company-controlled revenue equipment and
drivers. We also manage and provide tailored, technology-driven freight
services which may employ equipment and transportation services provided by
all major North American rail carriers, an associated logistics company or
by unrelated third parties in the industry.
Our business operations are primarily organized through three distinct, but
complementary, business segments. These segments include full truck-load,
dry-van (JBT), intermodal (JBI) and dedicated contract services (DCS). In
addition, we operated a logistics business segment from 1992 until mid-2000.
Effective July 1, 2000, we, along with five other publicly held
transportation companies, contributed our logistics business to a new,
commonly owned company, Transplace, Inc. For the calendar year ended
December 31, 2003, our consolidated revenue totaled $2.4 billion. Of this
total, $936 million, or 38%, was generated by our JBI business segment. Our
JBT segment generated $841 million, or 34%, of total revenue and DCS
represented $671 million, or 28%.
Recent Focus
During the past three years, we have taken significant steps to re-establish
a primary focus on the profitability of our three business segments. In each
segment we have implemented yield management decision-making processes that
result in the deployment of our assets where we believe they will generate
more profit. We continually seek to replace less-profitable freight with
higher-margin freight and lanes. Selective pricing actions and ensuring that
we properly charge for all services provided have also been areas of major
focus.
JBT Segment
Our primary transportation service offerings classified in this segment
include full truck-load, dry-van freight which is predominantly transported
utilizing company-controlled tractors. We pick up our freight at the dock or
specified location of the shipper and transport the load directly to the
location of the consignee. Most of our loads are transported entirely by our
company-owned tractors and employee drivers, or by independent contractors
(ICs) who agree to transport freight in our trailers. We also assign freight
to be handled by third-party motor carriers other than ICs. Typically, in
these cases, the charges for the entire movement are billed to the customer
by us and we, in turn, pay the third party for their portion of the
transportation services provided.
We operate utilizing certain Canadian authorities, allowing us to transport
freight to and from all points in the continental United States to Quebec,
British Columbia and Ontario. We have authorization to operate directly in
all the Canadian provinces, but to date we have served limited points in
Canada, primarily through interchange operations with Canadian motor
carriers. We operated our JBT and JBI (Intermodal) segments in combined
fashion in periods prior to January 1, 2000. This combined operation was
reported as Van/Intermodal (“Van”) in prior periods. In late 2000, we began
utilizing ICs in the JBT segment and at December 31, 2003, we had
approximately 1,000 ICs operating in the JBT segment. JBT gross revenue for
calendar year 2003 was $841 million, compared with $827 million in 2002. At
December 31, 2003, the JBT segment operated 4,429 company-owned tractors and
employed 6,228 people, 5,300 of whom were drivers.
JBI Segment
The transportation service offerings of our JBI segment utilize agreements
with all 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 with a unique
partnership with the former Santa Fe Railway (now the Burlington Northern
Santa Fe), a watershed event in the industry and the first agreement that
linked major rail and truck-load carriers in a joint marketing environment.
Essentially, JBI draws on the intermodal (also known as “container on
flatcar”) services of rail carriers for the underlying linehaul movement of
its equipment and performs the pickups and deliveries (“drayage”) for
customers at the origin and destination rail terminal locations. JBI
provides seamless coordination of the rail and over-the-road transport
movements for our customers and delivers single billing for the complete
door-to-door service.
Our intermodal program has grown from 20 loads in late 1989 to over 527,000
in 2003. JBI operates more than 20,000 company-controlled containers system
wide. The entire fleet is comprised of 53-foot, high-cube containers and is
designed to take advantage of intermodal double-stack economics and superior
ride quality. JBI also manages a fleet of nearly 1,050 tractors and about
1,380 drivers in support of intermodal operations. At December 31, 2003, the
total JBI employee count approximated 1,600, including drivers. Gross
revenue for the JBI segment in calendar year 2003 was $936 million, compared
with $809 million in 2002.
DCS Segment
Since 1992, we have offered dedicated contract carriage as a service option.
DCS segment operations specialize in the design, development, and execution
of supply-chain solutions. Capitalizing on advanced systems and
technologies, DCS offers engineered transportation solutions that support
private fleet conversion, dedicated fleet creation and transportation system
augmentation. DCS operations typically provide customized services that are
governed by long-term contracts and currently include dry-van, flatbed and
temperature-controlled operations. Near 100% on-time service is standard
with efficient routes executed to design specifications.
DCS operations focus on reducing costs and enhancing customer value through
leveraging the JBHT network for backhaul repositioning freight. Network
freight may be used to reposition equipment near outbound domiciles, thereby
reducing inefficient empty miles and system cost. DCS also frequently finds
synergy in shared resources with the JBT and JBI segments, including
terminals, drivers, maintenance shops, bulk fuel locations, and trailer
pools providing further economies of scale. DCS gross revenue for calendar
year 2003 was $671 million, compared with $628 million in 2002. At December
31, 2003, the DCS segment operated 4,456 tractors and employed 5,529 people,
4,898 of whom were drivers.
Logistics Business and Associated Company
We formally began offering transportation logistics services in 1992 through
a wholly owned subsidiary, J.B. Hunt Logistics (JBL). JBL services
frequently included an arrangement whereby a shipper might outsource a
substantial portion of its entire distribution and transportation process to
one organization. The JBL segment business included a wide range of
comprehensive transportation and management services, including experienced
professional managers, information and optimization technology and the
actual design or redesign of system solutions. A new logistics customer or
service arrangement frequently required a significant amount of up-front
analysis and design time, during which alternatives were considered and
custom systems and software were developed. Effective July 1, 2000, we
contributed substantially all of our JBL segment business, all related
intangible assets and $5 million of cash to a newly-formed company,
Transplace, Inc. (TPI).
TPI is an Internet-based global transportation logistics company. TPI
commenced operations in July 2000 and initially included substantially all
of the logistics business of JBHT, Covenant Transport, Inc., Swift
Transportation Co., Inc., U.S. Xpress Enterprises, Inc., and Werner
Enterprises, Inc. TPI gross revenue for calendar year 2003 was $655 million,
compared with $672 million in 2002. We initially had an approximate 27%
ownership interest in TPI. In November 2002, we agreed to purchase a portion
of Werner Enterprises, Inc.’s (Werner) ownership interest in TPI. Effective
January 1, 2003, our interest in TPI increased from 27% to 37% and Werner’s
interest declined from 15% to 5%. The financial results of TPI are included
on a one-line, non-operating item included on our Consolidated Statements of
Earnings entitled “Equity in loss of associated companies.”
Operations in Mexico
We have provided transportation services to and from Mexico since 1989.
These services frequently involve equipment interchange operations with
various Mexican motor carriers. In addition, a joint venture agreement with
Transportacion Maritima Mexicana (TMM), one of the largest transportation
companies in Mexico, was signed in 1992. The joint venture, Comercializadora
Internacional de Carga S.A. de C.V. and its subsidiaries, originated and
completed northbound and southbound international truck movements between
the United States and Mexico. The joint venture also provided Mexican
domestic irregular route truck service, refrigerated freight services,
Mexican dedicated contract business and short-haul drayage to and from the
Mexican maritime ports and rail heads.
Trucking Companies in the
Directory
Arkansas Best
CNF
J.B. Hunt
Swift Transportation
USF
Yellow Roadway
|
|
