Wednesday 25th January 2023

J.B. Hunt’s 4Q sees change in growth trajectory

By Thomas Cullen, Ti

Fourth quarter and full year results from J.B. Hunt, the leading Arkansas intermodal, less-than-truck load, full-truck load and last mile provider, show that both its sales and its profits boomed in 2022.

Read brief

Kirsty Adams
Logistics Briefing Editor

Changed trajectory

It’s January so I’m in new-trajectory mode. More steps, less meat, don’t be cold... Trajectories is what you do of course, within supply chains. Create them, ride them and disrupt them like a vegan dish at Christmas.

For J.B. Hunt, its fourth quarter results suggest that the company has changed its trajectory, somewhat. For this period revenue rose by 4% year-on-year to $3.65 billion but operating income fell by 13% to $281million. See the full brief here.

Warehouse space in the UK has also changed path. Six months ago, UK warehouses were bursting at the seams. However, when we spoke to Clare Bottle yesterday morning – head of the UK Warehousing Association – she told us warehouse operators are reporting 50% more space. (Read more in next week’s Logistics Briefing.)

50% is a figure that’s also been attached recently to Diesel costs (the fuel is accounting for 50% of total operating transport costs according to our road freight research.) You can hear the Ti team plus guests from Upply and the IRU discuss findings on the latest episode of Ti Talks Supply Chains.

Bottle also discussed her campaign to get solar panels on the roofs of warehouses in the UK, and argues that government is not supporting the initiative. It seems unlikely there will be enough electricity to support warehouses of the future, especially the ones investing in electric fork lift trucks and automation, just like the one DHL opened in Germany last week.

It’s DHL’s largest fully-automated robotic fulfillment centre, designed and built for fashion retailer Peek & Cloppenburg Düsseldorf. It covers 6,000 square metres and is one of the largest fully-automated storage and order fulfillment systems in Germany.

If energy initiatives like the aforementioned aren’t considered in the UK, and in all countries tackling energy access/costs, will it knock warehouse automation off its trajectory?

I look forward to seeing how the industry will tackle this energy challenge.

PS: Don’t forget our special subscription offer. Readers of Logistics Briefing receive 10 per cent off Ti reports. Visit our reports page and use the following discount code 'LBSUBS10'

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Contract logistics companies report growth in latest earnings reports

By Paul Chapman, Ti

There is revenue growth progression and the sentiment overall is bullish, although there are some less positive results. Taken across the board, the market does appear to be showing resilient growth in what are difficult economic conditions. Read more here.

New Year and new sustainability laws across Europe

By Marta Chiriatti, Ti

Following calls for actions and scientific pressure, in 2023, Europe is introducing new legislations to mitigate and offset the impact of climate change. Read more here.

Podcast hosted by Kirsty Adams.

Episode 2: Road freight rates: why are they so volatile?

Listen now

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