J.B. Hunt Transport Services and BNSF Railway announced Tuesday the launch of Quantum, a premium intermodal offering ensuring improved delivery times with consistent service. The companies made the announcement at FreightWaves’ F3: Future of Freight Festival 2023 in Chattanooga, Tennessee.
Quantum will be run by employees from both companies at a new intermodal center at BNSF’s (NYSE: BRK.B) headquarters in Fort Worth, Texas. The customized offering will cut delivery times by one day from normal intermodal service. The shipments will be given priority drayage and rail positions to meet the time thresholds. The companies are informing customers to expect 95% on-time delivery.
“Quantum allows customers with service-sensitive freight to benefit from the cost savings of intermodal, while reducing their carbon footprint and maintaining the level of service and consistency needed in their supply chains,” said Darren Field, J.B. Hunt’s president of intermodal.
The preplanning process is expected to minimize the need to implement contingencies, however, a team will oversee Quantum shipments around the clock, resolving any service obstacles by initiating alternate solutions when needed.
“Its solutions are flexible to address supply chain challenges in real time,” said Spencer Frazier, J.B. Hunt’s executive vice president of marketing and sales. “Customers have access to multiple modes for unexpected concerns such as potential delays, volume surges or production issues.”
Specifics on costs weren’t provided but the price is expected to be between regular intermodal service and over-the-road truckload transportation.
J.B. Hunt (NASDAQ: JBHT) estimates there are roughly 7 million to 11 million loads annually that could be converted from full highway transit to intermodal rail service. Quantum is expected to expand the intermodal market by capturing the customer-sensitive freight that shippers have been hesitant to transport over the rails.
When incorporating rail, a shipment’s carbon footprint is reduced by as much as 60%, the company estimates.
“Quantum will provide a faster and more consistent intermodal solution to customers,” said Tom Williams, BNSF’s group vice president of consumer products. “Our new Intermodal Innovation Center will foster continued collaboration between our companies to continue evolving with our customers’ supply chain needs and create the intermodal solution of the future.”
The latest announcement by both companies expands on a 34-year partnership. The Quantum name dates back to when the companies first started working together, launching an intermodal offering with just 150 trailers carrying the same name.
J.B. Hunt is becoming further aligned with its rail partner in the West. It acquired the brokerage operations of BNSF Logistics in September.
The companies announced a joint collaboration last year. J.B. Hunt said it would grow its container fleet to 150,000 units by 2025 to 2027. At the same time, BNSF announced expansion plans at multiple facilities and added rail cars to support J.B. Hunt’s container growth plan. It also unveiled plans for the Barstow International Gateway, a $1.5 billion facility with 4,500 acres that will serve the ports in Southern California.
Over the last couple of years, J.B. Hunt has been adding transloading facilities along the coasts.
J.B. Hunt closed the third quarter with 117,000 containers.
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