J.B. Hunt buys brokerage operations of BNSF Logistics
Provide chain options supplier J.B. Hunt Transport Companies Inc. yesterday mentioned it had agreed to amass the brokerage operations of BNSF Logistics LLC, the trucking companies third-party logistics supplier (3PL) unit of railroad Burlington Northern Santa Fe LLC.
In keeping with Lowell, Arkansas-based J.B. Hunt, the acquisition will present environment friendly, value-added options for patrons throughout the North American provide chain. Phrases of the acquisition weren’t disclosed.
The deal extends a long-running cooperation between the 2 corporations, which in 1989 developed a double-stack transport answer that will complement each rail and trucking companies, calling it a primary for contemporary transportation. And in 2022, they launched a joint effort to enhance capability within the intermodal market by increasing their infrastructure of containers, actual property, railcars, and chassis.
Following the closing of the transaction, the brokerage operations of BNSF Logistics will roll into J.B. Hunt’s Built-in Capability Options (ICS) for phase reporting functions.
Fort Value, Texas-based BNSF Logistics gives for the motion of full truckload, flatbed, temp-controlled, drayage, expedited, and less-than-truckload (LTL) companies. BNSF Logistics additionally gives warehouse, retail specialty, heavy-haul, and undertaking companies, which aren’t included within the J.B. Hunt transaction.
“This settlement with J.B. Hunt displays our corporations’ shared dedication to offer industry-leading intermodal service to our clients,” Katie Farmer, president and CEO of BNSF Railway, mentioned in a launch. “This continues greater than 30 years of partnership between BNSF and J.B. Hunt and builds on our announcement to additional combine our joint companies.”
“BNSF Logistics has proven sturdy efficiency in serving clients of all sizes,” Brad Hicks, government vp of Individuals and president of Freeway Companies at J.B. Hunt, mentioned in a launch. “Complemented with our best-in-class intermodal and J.B. Hunt 360box power-only service providing, this acquisition will present a compelling worth proposition for patrons, progress alternatives for J.B. Hunt and better service capabilities for BNSF Logistics’ worker and agent mannequin.”
An {industry} analyst backed the transfer, saying it made sense for each events because the brokerage operation was not a core enterprise for BNSF however is for J.B. Hunt, TD Cowen’s Jason Seidl mentioned in an e-mail notice. The acquisition additionally sends a sign to the market that the usually turbulent relationship between the 2 transport giants is probably going in a greater place, he mentioned.
