J.B. Hunt * USA: Earnings fall amid weak demand
* Ohio - Low rates cut profits for intermodal trucker
--- Falling truck and intermodal pricing cut into profits at J.B. Hunt Transport Services in the third quarter, despite increases in freight volume and revenue. The 5 percent drop in net profit to $109.4 million was the first decline in profitability this year for the intermodal trucking firm, which has gained market share in 2016 while competitors cut capacity as their margins narrowed... The drop in profitability at a reliably profitable large transport operator underscores the intensity and depth of the rate battle between US freight shippers and trucking companies this year. Truckload carriers, in particular, have been pressed to lower rates as weak consumer spending, high inventories, and excess truckload capacity depress freight demand in 2016... That higher-margin business and demand will inspire more dedication to dedicated services at J.B. Hunt and other truckload and even less-than-truckload carriers expanding dedicated services as they pursue opportunities for growth...
(Photo Bloomberg News - Tractor trailers sit parked at a J.B. Hunt Transport Services facility) -- Columbus, OH, USA - JOC, by William B. Cassidy - Oct 17, 2016
Labels: trucking industry news USA