source site In the prior seven years, the average rate had been running at , trucks per year. While the need to have a fleet of new trucks as a driver retention tool has often been cited as the reason behind these eye-popping numbers, Vieth said the improved fuel economy is a big reason for the buying frenzy. In the model years, Vieth said, fuel economy was about 8 mpg. But that has moved up to 8. Burton noted that the drayage sector was not buying new trucks; it was the market for the used vehicles. Productivity on the consumer end: The issue of productivity was not simply focused on what carriers would do for improvement.
As Shook noted, drivers today have their choice of where they want to haul freight. Robinson shares data with their customers on how long it takes drivers to get in and out of their particular site.
Feb 5, Robinson Worldwide finance chief Andrew Clarke said he seeks a strategic edge and compatible technology, rather than size. The Minneapolis logistics company has spent nearly $1 billion on acquisitions since , contributing to an industry-wide flurry of deals. “They may fill. Robinson Hunts Deals With Strategic Edge, Size, Get all the Latest news, Breaking headlines and Top stories, photos & video in real time about BlackCentaur.
But the first-half gains in volume and rates are probably in the process of leveling out. Spencer Frazier, the senior vice president-sales at J. An informal show of clapping—as opposed to a show of hands—indicated the audience believed the market would be even stronger at this time next year. Show More. In , he won two Corporate Achievement Awards from McGraw-Hill, an extremely rare accomplishment, one for steering coverage of the BP Deepwater Horizon disaster and the other for the launch of a public affairs television show, Platts Energy Week.
The first deal of its kind created a new age for trucking intermodal services.
The deal was rapidly expanded to other railroads, creating a national intermodal network. Constructed as a joint venture, the deal gave J. Hunt almost unlimited capacity and required the railroad to give the carrier right-of-first refusal of capacity on the trains.
The deal also gave J. Hunt a more competitive cost structure. They were playing arbitrage against much higher truckload costs, by buying capacity on the railroads at a significant discount to what it costs to use a driver with a truck. Hunt was able to hire drivers near local rail ramps who could be home nightly, not having to travel beyond a mile radius of the railyard.
This strategy proved effective in making J. Hunt the powerhouse in the long-haul market. As other long-haul truckload carriers saw their pricing power deteriorate due to the scale of the intermodal segment, they were forced to move into the wild-west tweener market, putting downward pressure on their economic models and operating efficiency. Until recently, the worst place to operate as an enterprise truckload carrier with drivers was the tweener market, where you were forced to compete against owner-operators and brokers who were not subject to the same level of scrutiny in terms of hours-of-service compliance.
This, of course, could change with the ELD mandate. Since the ELD mandate, we have seen tender rejections highest in the tweener market defined as mile length of haul , indicating that shippers are seeing real stress in this segment of the market. In the chart above, taken from our proprietary SONAR platform tracks electronic tender rejections by length of haul.
The tweeners are seeing much higher rejections. This means that we should see price inflation greatest in the market in the tweener market.
We would anticipate carriers with the most exposure to the tweener market to have the best upside in these conditions. Hunt was also an early powerhouse in managed logistics. Hunt Logistics was created as the brokerage and managed logistics arm that was folded into Transplace at the formation of the 3PL. While Transplace ultimately went on to do great things, the initial experiment failed.
Hunt, along with the other carriers that founded the logistics company, all sold out so the owner carriers could pursue their own logistics operations. ICS continues to gain steam with the creation of J. In fact, J.. Hunt is the largest digital broker in the market, bigger than Convoy, Uber, Transfix, and all the others.
In the second quarter, J. The last part of the puzzle for J.
Dedicated trucking is a service offered by truckload carriers where companies outsource their private fleet under contract to an asset-based carrier. The carrier provides contract logistics to the shipper, with a dedicated truck, trailer, operations, and driver. The shipper gets the luxury of having its own private fleet to manage their supply chain, without having to deal with the headaches of recruiting and retaining the driver or the potential liability that comes from operating trucks.
For companies like J. Hunt, the projects are lucrative and provide a cash flow annuity.
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Contracts are multi-year and enable the shipper to have operational certainty and dependability to operate their supply chain without risk of carriers dropping off. In a tight capacity market like the one we are currently experiencing, the operation is a golden goose for carriers, and for shippers, it is one of the most important hedges against capacity shortages. Many times, the carrier will carry the goods into the home and will assemble the item for the customer. A year ago, I ordered chairs for my media room and a J. Hunt pup trailer showed up with two guys that came in and carried them upstairs and proceeded to assemble them.
This was the first acquisition J. Hunt has all of the elements that Amazon has reportedly been wanting to build out in their logistics operations. The company brings significant and theoretically unlimited linehaul capacity on the railroads. Amazon is already one of the largest users of intermodal services, serving as the third largest intermodal client in North America. Intermodal capacity is important for providing the lifeline to their linehaul networks and with the right of first refusal structures on the railroad, they would have an enormous strategic advantage in capacity securitization at peak.
The freight brokerage operations would be ideal as Amazon build out its logistics operations. The app would be an important asset for Amazon and matches their goals to build a digital freight brokerage app to source capacity.