J.B. Hunt Sees Freight Recovery, Intermodal Pricing Upside Into 2027

Key Points

• J.B. Hunt sees an early-stage freight recovery as trucking capacity tightens, demand indicators improve and truckload pricing strengthens, although housing-related freight demand remains weak.
• Intermodal pricing could gain significant upside through 2027. Rising truckload rates, reliable rail service and a wider price gap are creating opportunities to reprice contracts and convert highway freight to rail.
• The company is targeting 10%–12% intermodal operating margins and has reached a $135 million annualized run rate from cost-saving initiatives, while a record dedicated-business pipeline could increase future capital spending.

J.B. Hunt Transport Services NASDAQ: JBHT executives said the company sees a strengthening freight environment, supported by tightening capacity, improving truckload pricing and sustained rail service quality, while emphasizing that intermodal pricing opportunities may build into 2027.

Speaking at Deutsche Bank’s Industrial Conference, Chief Financial Officer Brad Delco said the company believes the current cycle remains in its early stages. He said customer forecasts generally tracked expectations in the fourth quarter, while available capacity tightened, which J.B. Hunt initially attributed largely to supply attrition. Demand indicators subsequently improved, he said, though housing remains a missing source of freight demand.

Delco noted that most of J.B. Hunt’s earnings come from its dedicated and intermodal operations, which do not move in lockstep with the broader trucking cycle. Dedicated contracts generally run for five years and include fixed and variable pay components, while intermodal pricing historically lags truckload pricing by two to three quarters.

Intermodal value proposition and pricing

Delco said J.B. Hunt’s intermodal offering is particularly competitive because of the combination of elevated fuel prices, rising truckload rates and solid rail service. The company competes on cost, capacity and service, he said, and a reliable rail product paired with a discount to truckload transportation creates a strong value proposition.

Stacey Griffin, senior vice president of intermodal pricing, said demand for J.B. Hunt’s intermodal services has risen as highway spot and contract pricing increased. She said the company was not able to fully reflect intermodal’s value proposition in pricing over the last 12 months, but now sees “meaningful opportunities” to be paid appropriately as it moves into 2027.

Griffin said the company’s 2026 bid season was largely complete, with transcontinental pricing more competitive than expected despite positive pricing and volume. She expects more opportunities as the next bid cycle begins. J.B. Hunt reprices roughly 10% of its business in the fourth quarter and about 30% in each of the following three quarters, according to Griffin.

She described the current summer as the “summer of many mini-bids,” citing opportunities to price new business, revisit earlier pricing and shift freight from highway transportation to intermodal. Griffin said the company has seen more new customer names, including customers that had not previously explored intermodal options.

Delco said J.B. Hunt typically sees a 10% to 15% pricing gap between intermodal and truckload in the Eastern network and about a 25% gap in transcontinental freight. While the current gap is wider, he said truckload contract rates may continue rising, creating further room for intermodal pricing adjustments.

Rail service and conversion opportunity

Executives said rail service has been consistently strong for roughly two to three years, helping customers gain confidence in shifting freight from highway to rail. Griffin said customers want reliable service not only during low-volume periods but also when industry volumes rise.

Delco said J.B. Hunt moved a record amount of intermodal volume in 2025 despite what he described as one of the worst freight recessions on record. In the company’s most recent second quarter, Eastern network volumes grew 16% against a 15% comparison, he said. J.B. Hunt has identified an estimated 7 million to 11 million loads of potential highway-to-rail conversion opportunity, with most of that freight located in the East.

Driver capacity, costs and margins

Griffin said J.B. Hunt’s drayage operations represent a competitive advantage during a tighter driver market. The company outsources about 10% to 15% of its intermodal drayage moves, retaining third-party capacity for peak periods while relying primarily on its own operations.

Delco said the company’s driver needs are at their highest level since 2022. He pointed to J.B. Hunt’s day-cab fleet and dedicated operations as advantages in recruiting and retention, noting that more than half of its trucks are day cabs and its dedicated fleet averages a length of haul of roughly 180 miles.

The company continues to target intermodal operating margins of 10% to 12%. Delco said the range reflects the capital required for containers, chassis, trucks, terminals and maintenance infrastructure, as well as the risks associated with freight transportation. He said J.B. Hunt expects growth to improve as it executes on its lower-cost-to-serve initiatives.

J.B. Hunt has reached a $135 million run rate from its cost-to-serve program, Delco said. While much of the initial low-hanging fruit has been addressed, he said the company sees additional potential from discipline around cost metrics and from using technology and artificial intelligence to improve processes.

Capital spending and other business lines

Delco said annual maintenance capital expenditures of about $700 million, net of proceeds, is an appropriate general framework, though the level can vary with pricing and fuel conditions. Dedicated capital spending is largely tied to new customer contracts, and Delco said a record dedicated-business pipeline could drive more equipment investment. J.B. Hunt has enough intermodal containers to support growth currently, though continued strong growth could bring forward the need for additional container purchases.

In its Integrated Capacity Solutions brokerage business, Delco said the second quarter brought significant gross-margin pressure as purchased transportation costs rose. However, the segment returned to profitability during the quarter. He said pricing in brokerage can adjust faster because of its transactional nature, and the company is focused on resetting customer prices and procuring capacity efficiently.

On autonomous trucking, Delco said J.B. Hunt views the technology as potentially beneficial for safety and capable of expanding intermodal’s addressable market in certain long-drayage lanes. However, he maintained that rail will remain the most fuel-efficient freight mode because steel-on-steel transportation creates less friction than rubber on roads.

About J.B. Hunt Transport Services (NASDAQ:JBHT)

J.B. Hunt Transport Services, Inc is a leading provider of transportation and logistics solutions headquartered in Lowell, Arkansas. The company offers a comprehensive suite of services designed to move freight efficiently across North America, including intermodal, dedicated contract services, full truckload, less-than-truckload (LTL), final mile delivery and specialized transport.

In its intermodal segment, J.B. Hunt leverages a network of rail and truck assets to transport containers and trailers on major U.S.

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