Major Carrier Adds New Trucks to Fleet
While the past year has seen many major carriers pull back their efforts to save money in a weak market, one major name in the field has gained enough new business to expand their presence on the road.
It was announced that J.B. Hunt Transport services would be adding 500 to 700 trucks next year to its dedicated contract services business. The third-largest trucking company in terms of revenue, the organization manages fleets for retailers and manufacturers. The truckload segment alone may gain between 100 to 120 trucks.
This growth could be attributed to many factors. Though a recent ATA report did note that the future looks brighter for trucking, this growth is actually owed to proper planning in the past. Strategic logistics management and the proper use of capacity on shippers.
“It appears as if the strategy management has undertaken in 2016, whereby it continues to add assets despite a depressed market to gain share, will continue into 2017,” said an analyst note from Stifel on the report.
It should be noted that J.B. Hunt Transport is perhaps the only carrier with the revenue to finance such expansion and think forward in such a manner. This is due in part to their expansion and margin agreements with railroads.
The additional trucks won’t raise overall capital expenditures in relation to estimates, according to J.B. Hunt Transport.