In a strategic collaboration, transportation giants J.B. Hunt Transport Services and BNSF Railway have introduced a groundbreaking time-sensitive service named “Quantum.” This joint venture aims to revolutionize intermodal shipping, promising up to 95% on-time delivery for goods transported through their Quantum service.
Quantum’s Target Audience and Objectives:
The Quantum service is specifically designed to attract customers who have traditionally been hesitant to utilize rail freight services. Recognizing a significant market potential, J.B. Hunt estimates that between 7 million and 11 million loads of freight are ripe for intermodal conversion. Quantum positions itself as a solution for customers with service-sensitive freight, offering the cost savings associated with intermodal transportation while simultaneously reducing carbon footprints and ensuring the level of service consistency vital to supply chains.
Key Features and Benefits:
The Quantum service boasts delivery times up to a day faster than traditional intermodal services, setting a new standard in the industry. This improved efficiency is achieved through aligning forecasts for drayage, container, and rail capacity with customer needs. Shippers opting for Quantum will receive priority drayage and rail movement, ensuring more consistent transits.
Pricing and Operational Structure:
As a premium service, Quantum’s pricing will vary based on individual needs. Shippers can anticipate costs falling between traditional intermodal and over-the-road services. To oversee the new service, a dedicated team of five employees from both J.B. Hunt and BNSF will operate from the Intermodal Innovation Center in Fort Worth, Texas. This central hub will facilitate 24/7 oversight, enabling swift issue resolution.
Market Reach and Growth Ambitions:
Quantum is not limited to a specific business segment or industry; instead, it aims to attract new intermodal business by highlighting its cost savings and sustainability advantages. The service is a result of recent efforts by both J.B. Hunt and BNSF to enhance intermodal service efficiency. Despite J.B. Hunt’s acquisition of BNSF’s brokerage in September, Quantum is unrelated and will complement traditional intermodal services from both companies. Each company will report Quantum revenues separately.
Looking Ahead:
The launch of Quantum signifies a renewed commitment to the intermodal sector by J.B. Hunt, which has set a goal to expand its intermodal fleet to 150,000 containers over the next three to five years. As of Q3, the intermodal fleet stood at 117,387, reflecting a significant year-over-year increase. Tom Williams, Group Vice President of Consumer Products at BNSF, describes Quantum as an “innovative vision” built upon a decades-long partnership that began with the industry’s first modern intermodal transport solution launched in 1989, coincidentally also named Quantum. This new service not only reflects the companies’ commitment to reliability but also serves as a testament to their pioneering spirit in the transportation industry.
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