J.B. Hunt Acquires BNSF Logistics' Brokerage Unit

In a big industry shakeup, J.B. Hunt Transport Services is set to acquire the brokerage operations of BNSF Logistics, a subsidiary of BNSF Railway. Here are the details of this game-changing development:

What's Happening?

• J.B. Hunt is expanding its horizons by getting its hands on BNSF Logistics' full suite of 3PL services, from truckload to drayage.

• The deal, however, won't touch the part of BNSF Logistics that handles warehouse, specialty retail, heavy-haul, and project-related services.

Why This Matters?

• J.B. Hunt CEO John Roberts sees this as a chance to "drive value for customers" and tap into their tech platform, J.B. Hunt 360.

• This move strengthens a long-standing relationship between J.B. Hunt and BNSF. They've been intermodal partners on the West Coast since 1989 and plan to expand their intermodal capacity significantly.

What's the Game Plan?**

• J.B. Hunt plans to grow its container fleet to 150,000 units over the next few years and has been setting up transloading facilities along the coasts.

• BNSF is pulling its weight, too, with a new rail hub in Washington, bolstering container service between the Port of Tacoma and Chicago.

The Fine Print

• Unfortunately, the financial details of this transaction remain shrouded in mystery.

• The deal is expected to close by year-end, funded by cash on hand. A long-term service agreement will ensure the newly acquired operations continue performing 3PL services for BNSF Railway.

Source: FreightWaves