J.B. Hunt, Walmart reach multi-year intermodal service deal

J.B. Hunt Transport Services Inc. will acquire the intermodal assets of Walmart Inc. as part of a multi-year intermodal service agreement between the Lowell-based carrier and the Bentonville-based retailer, according to a Thursday (Feb. 22) news release. Financial terms of the deal were not disclosed.

Intermodal service comprises the transportation of goods via multiple modes, including rail and truck. According to a 2019 Transport Topics article, Walmart expanded its intermodal service by using its own containers and chassis after a successful pilot in 2018 in which goods were transported via rail from Southern California ports to distribution centers in the Midwest and Texas. Company drivers handled pickup and delivery.

According to the release, the new agreement between J.B. Hunt and Walmart increases their volume and capacity and allows for the development of intermodal services to provide long-term value for both companies. Recently, J.B. Hunt has worked with Fort Worth, Texas-based BNSF Railway to expand its intermodal services, including the 2023 launch of Quantum and a service to support cross-border freight between the United States and Mexico.

As part of the new deal with Walmart, J.B. Hunt will acquire Walmart’s intermodal containers and chassis. In the fourth quarter, J.B. Hunt added about 800 new containers to its intermodal fleet. At the end of 2023, the carrier had 118,171 trailers and containers in the fleet. In 2022, J.B. Hunt released plans to expand its intermodal fleet to as many as 150,000 containers in three to five years. The plans were included in an announcement by J.B. Hunt and BNSF to improve intermodal service.

“Finding new ways to serve our customers and members and exceed their expectations is important to us,” said Fernando Cortes, senior vice president of transportation at Walmart. “Walmart’s long history of working with J.B. Hunt has many milestones of innovation and growth. This agreement will strengthen our commitment to delivering goods at an every day low cost to our customers and members.”

Walmart and J.B. Hunt have worked together on transportation services for decades, the release shows.

“Mr. Hunt always said, ‘Good partners attract good partners,’” said Spencer Frazier, executive vice president of sales and marketing at J.B. Hunt. “Our customers trust us to develop solutions that scale and drive efficiencies across their ever-changing supply chains. Today’s announcement is a testament to the mutual trust and shared vision our companies have developed over time, and innovative arrangements like this one demonstrate J.B. Hunt’s disciplined approach to strategically allocating capital to advance our mission of driving long-term value for our people, customers and shareholders.”

According to J.B. Hunt, converting over-the-road shipments to intermodal reduces a shipment’s carbon footprint by an average of 60%. J.B. Hunt’s intermodal services comprise domestic and international, ocean, transloading, temperature-controlled and expedited. In 2023, J.B. Hunt’s intermodal segment accounted for 48%, or $6.2 billion, of its revenue and 57%, or $569.38 million, of its operating income.

Shares of J.B. Hunt (NASDAQ: JBHT) were trading Thursday at $207.82, up $4.65 or 2.29%. In the past 52 weeks, the stock has ranged between $163.66 and $219.51.

Shares of Walmart (NYSE: WMT) were trading Thursday at $174.01, up 31 cents or 0.18%. In the past 52 weeks, the stock has ranged between $136.09 and $181.35.