Dive Brief:
- Walmart has sold its intermodal assets to J.B. Hunt Transport Services as part of a long-term agreement with the carrier, according to a Feb. 22 announcement.
- The deal reinforces the companies’ decades-long partnership by increasing volume and capacity commitments for the retailer and carrier, the firms said in the release.
- “This agreement will strengthen our commitment to delivering goods at an everyday low cost to our customers and members,” said Walmart SVP of Transportation Fernando Cortes in the announcement.
Dive Insight:
The length of the deal was not disclosed, and representatives for Walmart and J.B. Hunt declined to reveal the number of intermodal assets that were included in the agreement.
Jason Hilsenbeck, president of LoadMatch and Drayage.com, told Trucking Dive he views the deal as a savings move for Walmart. He suspects Walmart made the move after reviewing fleet operating costs and likely determined it was better off eliminating its private intermodal fleet.
“I don't think Walmart understood the unforeseen costs of a private fleet,” he said in a LinkedIn message. “Walmart excels at managing a private fleet of OTR trailers and company truck drivers, but 53’ intermodal is completely different than OTR trailers.”
He estimates the deal will help grow J.B. Hunt’s intermodal fleet by 15,500 containers.
The arrangement fits J.B. Hunt’s strategy of growing its intermodal fleet to 150,000 containers sometime between 2025 and 2027. The trucking carrier had 118,171 containers at the end of Q4, according to its latest earnings release.
The deal also comes as J.B. Hunt reported intermodal volume growth during Q4, and while executives were uncertain whether the trend would continue into 2024, the company remains committed to growing the segment.
“We can save customers’ money by converting over-the-road shipments to intermodal, which is cheaper and less carbon intensive,” J.B. Hunt President and soon-to-be CEO Shelley Simpson said on the earnings call.
