J.B. Hunt has reported a revenue of $3.14bn in Q3, a 27.2% increase year-on-year, with all segments contributing double-digit revenue growth versus the prior year period. Operating expenses increased to $1.67bn, a rise of 28.5%. EBIT increased to $687.0m, up 46.6%.
The Intermodal (JBI) segment reported a revenue increase of 16.6% year-on-year, with a revenue of $1.41bn. Overall intermodal volumes declined 6.0% versus the same period in 2020. Eastern network loads declined 2%, while transcontinental loads declined 9.0% compared to the third quarter in 2020. J.B. Hunt states that demand for intermodal capacity remains strong, but volumes in the quarter were negatively impacted by a continuation of rail restrictions across the network and elevated detention of trailing equipment at customer facilities. Despite these volume-related challenges, the revenue increase was said to be driven by a 24.0% increase in revenue per load resulting from a combination of mix, customer rates, and fuel surcharge revenue. Revenue per load, excluding fuel surcharge revenue, increased 18.0% year-on-year.
The Dedicated Contract Services (DCS) segment reported a revenue increase to $664.8m; up 20.2% year-on-year. Productivity, defined as revenue per truck per week, was up 7.0% versus the prior period. Productivity, excluding fuel surcharge revenue, increased 3.0% versus the prior period. A net additional 1,527 revenue producing trucks were in the fleet by the end of the quarter compared to the prior year period, and a net additional 744 versus the end of the second quarter 2021. Customer retention rates remain above 98.0%.
The Integrated Capacity Solutions (ICS) segment reported a revenue of $666.2m; up 54.5% year-on-year. Segment volumes increased 4.0% in the quarter while truckload volumes increased 14.0% from the prior year period. Revenue per load increased 48.0%. In addition to customer freight mix, revenue per load was favourably impacted by higher contractual and spot rates in the company’s truckload business as compared to the third quarter 2020.
The Final Mile Services (FMS) segment reported a revenue of $205.9m; up 13.1% year-on-year. Stop count within FMS decreased 3.0% during the current quarter versus a year ago. The addition of multiple new customer contracts implemented over the last year were more than offset by the reduction in stops for several customers related to labour and supply-chain constraints. Productivity, defined as revenue per stop, increased approximately 17.0% compared to the prior year period primarily from a shift in customer mix of business, in addition to the implementation of higher rates.
The Truckload (JBT) segment reported a revenue of $203.6m; up 86.6% year-on-year. Revenue excluding fuel surcharge revenue increased 85.0%, primarily from a 65.0% increase in revenue per load excluding fuel surcharge revenue and a 12.0% increase in load count compared to a year ago. The increase in revenue per load excluding fuel surcharge revenue was driven by a 36.0% increase in revenue per loaded mile excluding fuel surcharge revenue and a 20.0% increase in average length of haul.
Source: J.B. Hunt
