J.B. Hunt Transport Services has released its first quarter earning report for 2024, showing a dip in both its profit and revenue compared to the same period in the previous year.
The company posted a $127.5 million profit in the opening months of the year, down from nearly $200 million in Q1 of 2023. J.B. Hunt’s revenue during that period also fell from $3.11 billion last year to $2.94 billion in 2024.
The company blamed the declines on lower volumes and yield pressure, expenses for equipment, insurance claims, and bad debt, and higher benefits for drivers. Demand for its domestic intermodal services was weaker than initially expected as well, the result of competition for over-the-road truck options in the company’s eastern network.
The Wall Street Journal portrays the trucking and logistics company as a bellwether for the domestic shipping market, and J.B. Hunt is the first operator in the sector to report its earnings so far in 2024, pointing to what some experts are describing as an ongoing freight recession.
“I think J.B. Hunt really is a good read on the domestic economy,” Bank of America senior transportation analyst Ken Hoexter told CNBC on April 17. “The demand remains weak and we’re not seeing a breakout, and that’s exemplified with what’s going on with spot pricing in the market, where pricing is remaining at historically low levels.”
