Today J.B. Hunt Transport Services (NASDAQ: JBHT) announced that Shipper 360 by J.B. Hunt, the portal through which its customers access J.B. Hunt’s multimodal digital freight marketplace, will implement new features to improve the efficiency of its North American transportation network.
Shipper 360 offers access to multiple modes of transportation including truckload, less-than-truckload, and intermodal. J.B. Hunt is adding predictive truckload pricing (up to 13 days in advance) and real-time visibility into load statuses and available capacity. The J.B. Hunt 360 platform aggregates data about performance and shipping and receiving facilities to make freight markets more transparent for all participants.
In our view, with Shipper 360, J.B. Hunt has taken another big step toward becoming a truly mode-agnostic transportation provider. In 1989, J.B. Hunt began offering intermodal service through what was then the Atchison, Topeka, and Santa Fe Railroad (now BNSF Railway); the business now accounts for a majority of J.B. Hunt’s revenues. Since 2017, J.B. Hunt has been digitizing its freight brokerage business. Shipper 360 ties many of J.B. Hunt’s service offerings together, allowing customers to shop for transportation capacity and make decisions based on cost, transit time, and performance.
Part of J.B. Hunt’s thesis is that intermodal service has improved in the past few years — both in terms of visibility and velocity — and that when its customers can compare intermodal prices and performance alongside truckload, even more freight will end up moving over the rail.
“There are somewhere between seven and 11 million shipments on the nation’s highways that we believe we can move into intermodal,” said Shelley Simpson, executive vice president, chief commercial officer, and president of Highway Services at J.B. Hunt. “The more data we gather through the platform, the more information we can leverage to know how goods can move most efficiently. With our operational infrastructure and industry knowledge, we can deliver on customer needs while improving the overall experience for carriers.”
The rollout of the various J.B. Hunt 360 platform tools — which include a digital marketplace, a carrier app, a shipper portal (with a mobile app expected to release in December), and a drop trailer program, 360box — has played out according to J.B. Hunt’s innovation cycle of disrupting, adapting, and accelerating transportation efficiency. New offerings change customer and carrier behavior in sometimes unpredictable ways; J.B. Hunt studies the data, pivots to emerging opportunities, and then doubles down to accelerate the rate of change.
In particular, J.B. Hunt believes that small and medium-sized businesses (SMBs) have been under-served by the technological transformation of the logistics industry, because many digital brokerages and other logistics providers have focused on growing wallet share at Fortune 500 companies. J.B. Hunt sees an opportunity to offer SMB shippers access to the same kinds of market data and transportation options that the largest companies enjoy, which can increase available capacity and lower costs to the shipper.
“The work is really just beginning,” Simpson added. “As we’ve been building the platform, we’ve been collecting data. In 2018, we really started diving into machine learning capabilities – how we can take our billions of data points to create a better system for matching the right truck with the right load at the right time.”
As J.B. Hunt drives more of its business onto its digital platform, more transaction, visibility, and facility data make its freight-matching solution smarter and faster.
“We’ve seen a 400% increase in the level of data moving through the platform, which adds up to about five billion sets of data points, encompassing lane information, pricing trends, carrier interest, and more than 590,000 ratings for more than 50,000 shipping and receiving facilities,” Simpson said.
The data from J.B. Hunt’s vast North American transportation system, and especially the company’s insight into how different modes compete with and affect each other, forms an important competitive advantage. There are many use cases for machine learning in transportation and logistics, but we have found that the barrier to further progress tends to be not so much in developing never-before-seen technology or writing new algorithms as in the quality and quantity of data feeding the model.
In other words, some technology startups have written beautiful code that is nonetheless starved of data because of a lack of scale. J.B. Hunt doesn’t have that problem. Beyond scale, what makes Shipper 360 unique is how J.B. Hunt has focused on leveraging its data for the benefit of its affiliates, shippers, and carriers, wagering that customer loyalty and user stickiness will make each shipper more successful while benefiting the overall supply chain through a greater access to capacity, more transparent information, and a real-time understanding of freight transportation.
J.B. Hunt has been a force for innovation in the transportation industry for decades, imagining how things could work differently and offering new services to its customers. We believe that Shipper 360 represents a similar paradigm shift in the way that transportation providers think about customer experience. By aggregating more data, analyzing it, and ultimately giving the shipper recommendations based on their own criteria, J.B. Hunt empowers shippers to make the best decisions for their business and to ultimately pass the benefits realized on to their own customers.
Wiliam Henry Pritchett
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MrBigR504
I guess JB Hunt will be doing big business in California because all the owner operators will be gone. Good riddance California!