J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) has announced its subsidiary, J.B. Hunt Transport, Inc., is set to acquire the brokerage operations of BNSF Logistics, LLC. This development underscores J.B. Hunt’s commitment to enhancing its supply chain solutions.
BNSF Logistics, LLC, an affiliate of BNSF Railway Company, specializes in third-party logistics (“3PL”) services, catering to a diverse clientele with offerings such as full truckload, flatbed, temp-controlled, drayage, expedited, and less-than-truckload services. Their expertise extends to warehouse management, retail specialties, heavy-haul, and project services.
John Roberts, CEO of J.B. Hunt, expressed his enthusiasm, stating, “This acquisition is another step forward in our mission to create the most efficient transportation network in North America. It aligns with our long-standing partnership with BNSF Railway and our shared vision to provide value-added solutions across the North American supply chain.”
J.B. Hunt and BNSF Railway have a history of collaboration dating back to 1989 when they introduced a groundbreaking double-stack shipping solution that combined rail and trucking services. In March 2022, the two giants embarked on a joint effort to enhance intermodal capacity, solidifying their position as industry innovators.
Katie Farmer, President and CEO of BNSF Railway, emphasized the continuity of their partnership, stating, “This agreement with J.B. Hunt reflects our companies’ shared commitment to provide industry-leading intermodal service to our customers. It continues more than 30 years of partnership between BNSF and J.B. Hunt and builds on our announcement to further integrate our joint services.”
Following the completion of the acquisition, the brokerage operations of BNSF Logistics will integrate into J.B. Hunt’s Integrated Capacity Solutions (ICS) for reporting purposes. The transaction will be financed using J.B. Hunt’s existing cash balance and is slated to conclude by year-end.
Brad Hicks, Executive Vice President of People and President of Highway Services at J.B. Hunt, noted, “This acquisition will provide a compelling value proposition for customers, growth opportunities for J.B. Hunt, and greater service capabilities for BNSF Logistics’ employee and agent model.”
In a show of continued commitment, BNSF Railway and J.B. Hunt will enter into a long-term service agreement, ensuring seamless service continuity for BNSF Logistics’ clients. Stay tuned for more updates on this strategic acquisition.
