Wal-Mart Turns Crossdock Freight Over to J.B. Hunt
A $100 million-a-year contract won by J.B. Hunt Transport Services to take over shipments leaving Wal-Mart’s crossdock facilities has some carriers concerned they will be cut out by the Lowell, Ark., truckload and logistics giant.
“If it means hauling freight for less, that could mean trouble for a lot of carriers,” Cannon said. “I don’t think we will haul for J.B. Hunt because when there is a slow down, they’re going to load their own trucks and let you sit.”
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J.B. Hunt will now control freight that used to be hauled by 50 carriers. But both J.B. Hunt and Wal-Mart said the agreement leaves ample business to go around, noting that only 10% of Wal-Mart’s transportation business is involved in the Hunt contract.
Dean Cannon, chairman of Cannon Express in Springdale, Ark., said the pact could make it more difficult for his company and other carriers to continue hauling for Wal-Mart because they would have to negotiate with J.B. Hunt to provide service at lower rates.
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