Logistics Brokerage Operations BNSF Acquired by J.B. Hunt

In a development, in the transportation and logistics sector, J.B. Hunt, a known player in the industry has revealed its intentions to purchase the brokerage operations of BNSF Logistics, a division of BNSF Railway. This strategic decision is set to transform the landscape of third-party logistics (3PL) services for trucking operations and signifies the phase in the standing collaboration between the two companies. John Roberts, CEO of J.B. Hunt and Katie Farmer, CEO of BNSF, jointly made the announcement.

BNSF Logistics has been delivering an array of logistics services, including truckload, flatbed, temperature-controlled, drayage, expedited and less than truckload (LTL) movements to a significant customer base associated with BNSF Railway. However, it is worth noting that certain services provided by BNSF Logistics like warehousing, specialty services heavy haul transportation and project services are not included in this acquisition agreement. This selective approach highlights J.B. Hunts strategy to strengthen its position, in sectors of the logistics industry.
John Roberts, the CEO of J.B. Hunt stressed the importance of this acquisition emphasizing the efforts, with BNSF Railway to enhance customer value. The move combines its strengths in transportation services and technology through platforms like J.B. Hunt 360° aiming to build a transportation network in North America.

Katie Farmer, CEO of BNSF echoed Roberts sentiments underlining their commitment to providing notch intermodal services. She mentioned the partnership between the two companies for over three decades and how this acquisition aligns with their plans announced earlier in March 2022 to further improve their combined services.

Following the completion of the transaction BNSF Logistics brokerage operations will merge into the J.B. Hunts Integrated Capacity Solutions division. J.B. Hunt intends to fund this acquisition using its existing cash reserves demonstrating their confidence, in the value of the deal. While specific financial details remain undisclosed the closing is expected by year end.
Brad Hicks, the Executive Vice President of People and President of Highway Services, at J.B. Hunt highlighted the advantages of this acquisition. He mentioned that BNSF Logistics has performed well in catering to customers of all sizes. When combined with our notch services and J.B. Hunt 360box power-only service this acquisition will offer great value to customers growth opportunities for J.B. Hunt and expanded service capabilities for BNSF Logistics employees and agents.

Additionally, this acquisition will involve a long-term service agreement between BNSF Railway and J.B. Hunt to ensure the continuation of third-party logistics services for BNSF Railway by J.B. Hunt.

In terms BNSF Logistics generated $685 million in revenue in the year according to the railways annual report indicating the large scale and importance of the operations now owned by J.B. Hunt.

This acquisition highlights how companies in the transportation and logistics industry are adapting strategically to provide services to their clients. By incorporating the brokerage operations of BNSF Logistics into its portfolio J.B. Hunt is demonstrating an effort to strengthen its position, in the 3PL sector and enhance its ability to meet the changing demands of the transportation market.

Throughout the evolution of the agreement experts, in the field will closely monitor how these leading companies work together and come up with ideas to provide service to their customers in an ever-changing logistics environment.