Two of the top for-hire carriers in the U.S., FedEx and J.B. Hunt, are setting the stage for a potential upswing in the freight industry following a period of tepid demand, as highlighted by executives at a recent industry gathering.

J.B. Hunt Transport Services’ President Shelley Simpson remarked on Nov. 12 at the 54th annual Baird Global Industrial Conference, “This, for us, has been the toughest freight recession — and longest — in terms of depth and duration in my 30-year career. But I think we’ve done a good job managing through that part of the process. We’re looking forward to turning the chapter and hopefully moving into a better position coming into 2025.”

During this downturn, J.B. Hunt prioritized three core areas to ensure readiness for market improvement. These include enhancing customer value to seize emerging opportunities, scaling investments across diverse business units, and delivering long-term returns to shareholders.

Simpson elaborated, “Our first priority is really to reinvest back into the business for long-term returns. Anytime that we could put more capital to use from an equipment perspective on behalf of our customers, that’s going to be over a longer-term basis. And then, certainly, we’re going to be thinking about opportunistic buying from a stock perspective and then return back dividends to our shareholders.”

Meanwhile, FedEx Corp.’s Chief Financial Officer John Dietrich discussed the broader economic challenges affecting their key revenue streams. “I think if you reflect on the numbers, we were impacted by reductions in our highest yielding products,” he noted. The industrial sector’s decline has had a notable impact, with manufacturing contracting 23 times over the past two years as per the Manufacturing ISM Report on Business.

Dietrich predicts that industrial production, alongside the rise of e-commerce, will play a significant role in boosting freight volume growth. “We’ll be well positioned for that,” Dietrich said. “E-commerce is going to make up a large percentage — probably up to 90% — of the volume growth that our ground network and our freight business will be the beneficiary of. So, we can’t ignore that volume is going to be there. We just have to find the right cost structure to accommodate it.”

Until the anticipated rebound, FedEx is focused on maximizing revenue quality and managing capacity, largely by transferring heavier freight to truckload services due to ample capacity. Despite some softness in volumes, the pricing environment remains favorable, with Dietrich adding, “You’re seeing volumes are softer [and] the weight per shipment is down slightly, roughly 3%. But we’re seeing a 5% improvement per hundredweight. You have a strong pricing environment and we’ll be very capable of adapting to the return of volumes.”

Simpson also emphasized the freight recession’s link to market disruptions caused by the COVID-19 pandemic, which led to an oversupply of capacity post-pandemic. “We’ve not been good at predicting the entire COVID up or down,” she stated. Despite these challenges, she noted positive developments, particularly in dedicated contract services, which have maintained a robust pipeline and excellent sales productivity.

Looking ahead to 2025, Simpson highlighted the significance of investing in long-term opportunities for personnel, technology, and capacity. “We’ve invested in long-term opportunities for us and our people, our technology and capacity,” she affirmed. “That’s going to be really important for us as we lean into 2025 and think about the capacity that we’ve added. If you think about it from an intermodal perspective, we still have plenty of equipment to really source for our customers, and help them as they grow.”

Source: Transport Topics

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Understanding Intermodal Driving

Intermodal driving involves transporting freight containers using multiple modes of transportation, such as trucks, trains, and ships. These containers can carry anything from consumer goods to raw materials, making intermodal driving essential for global trade and supply chain logistics. As an intermodal driver, you’ll be responsible for picking up containers from rail yards, ports, or distribution centers and delivering them to their final destinations.

Requirements and Qualifications

Before pursuing a career in intermodal driving, it’s essential to make sure you meet the specific requirements and qualifications. These may include:

1. Commercial Driver’s License (CDL): You must have a valid CDL issued by your state of residence to operate commercial vehicles, which includes the trucks used in intermodal transportation.
2. Intermodal Endorsement: Some companies may require drivers to get an intermodal endorsement on their CDL. This endorsement typically involves additional training and testing specific to intermodal operations.
3. Clean Driving Record: Employers often prefer candidates with a clean driving record, free of serious violations or accidents.
4. Physical Fitness: Intermodal driving can be physically demanding, involving loading and unloading containers. Maintaining good physical fitness is essential for this type of driving career.
5. Familiarity with Regulations: Intermodal drivers must comply with various regulations governing transportation, including hours-of-service rules, weight limits, and hazardous materials regulations. It’s essential to know these regulations and be able to comply.

Tips for Intermodal Success

Once you’ve met the necessary requirements and decided that a career in intermodal driving is for you, here are some tips to help you excel.

1. Safety First: Prioritize safety in all aspects of your job. Follow proper loading and securing procedures, adhere to speed limits, and practice defensive driving techniques to prevent accidents and injuries.
2. Continuous Training: Stay updated on industry trends, technologies, and regulations through ongoing training programs. This will help you enhance your skills and allow you to remain competitive in the job market.
3. Efficient Time Management: Intermodal operations often involve tight schedules and deadlines. Effective time management skills are crucial for completing deliveries on time and maximizing productivity.
4. Attention to Detail: Pay close attention to container documentation, including shipping manifests, bills of lading, and inspection reports. Accurate paperwork ensures smooth transactions and customer satisfaction.
5. Adaptability: Intermodal driving presents diverse challenges, from navigating congested urban areas to handling inclement weather conditions. Stay flexible and adaptable to effectively deal with unexpected situations on the road.

Starting a career in intermodal driving can open up exciting opportunities for professional growth and advancement. You can thrive in this dynamic industry by understanding the requirements, honing essential skills, and prioritizing safety and efficiency. Whether you’re a seasoned truck driver or a newcomer to the field, intermodal driving offers a fulfilling career path with endless possibilities!

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