Profile: J B Hunt Transport Services Inc (JBHT.OQ)

J B Hunt Transport Services Inc, formerly J.B. Hunt Transport Services, Inc., incorporated on August 10, 1961, is a holding company that, together with its wholly owned subsidiaries, operates as a surface transportation and delivery services to a diverse group of customers and consumers throughout the continental United States, Canada and Mexico. Its service offerings include transportation of full truckload containerized freight, which it directly transports utilizing the Company-controlled revenue equipment and Company drivers or independent contractors. It also provides customized freight movement, revenue equipment, labor, systems and delivery services. It operates in four segments: intermodal (JBI), dedicated contract services (DCS), full-load dry-van (JBT) and integrated capacity solutions (ICS). Its local and home delivery services are provided through a network of cross-dock service centers throughout the continental United States. The Company also provides transportation and logistics services. In addition to dry-van, full-load operations, these outside carriers also provide flatbed, refrigerated, less-than-truckload (LTL) and other specialized equipment, drivers and services.

JBI Segment

The transportation service offerings of the Company’s JBI segment utilize arrangements with North American rail carriers to provide intermodal freight solutions for its customers throughout the continental United States, Canada and Mexico. JBI draws on the intermodal services of rail carriers for the underlying line haul movement of its equipment between rail ramps. The origin and destination pickup and delivery services (drayage) are handled by its Company-owned tractors for its intermodal loads, while utilizing third-partydray carriers. JBI operates 54,506 pieces of Company-controlled trailing equipment systemwide. The fleet consist of 53-foot, high-cube containers. JBI also manages a fleet of 2,901 Company-owned tractors and 3,504 Company drivers.

DCS Segment

DCS specializes in the design, development and execution of supply chain solutions, which support a range of transportation networks. The Company’s designs are developed and customized to provide assigned equipment and labor. DCS focuses on final mile delivery, replenishment, and specialized services supporting private fleet conversion, fleet creation and transportation system augmentation. As of December 31, 2011, DCS segment operated 4,571 Company-owned trucks 330 customer-owned trucks, and 17 independent contractor truck.

JBT Segment

The service offering in this segment is full-load, dry-van freight, utilizing tractors operating over roads and highways. The Company picks up freight at the dock or specified location of the shipper and transports the load directly to the location of the consignee. It uses its Company-owned tractors and employee drivers or independent contractors who agree to transport freight in its trailers. As of December 31, 2011, the JBT segment operated 1,637 Company-owned tractors. At December 31, 2011, it had 948 independent contractors operating in the JBT segment, some of whom were leasing Company-owned tractors.

ICS Segment

ICS provides non-asset, asset-light, and transportation logistics solutions to customers through relationships with a number of third-party carriers and integration with the Company’s owned equipment. The Company provides a service offering to customers by providing flatbed, refrigerated, expedited and LTL, as well as a range of dry-van and intermodal solutions. ICS provides logistics management for customers that desire to outsource their transportation functions and utilize its supply chain, technology, and design. ICS operates 11 remote sales offices or branches, as well as onsite logistics personnel working in direct contact with customers.