Tom Markowitz

Tom Markowitz asked if the DOT's enforcement efforts, particularly regarding non-domicile CDL issues, could serve as a catalyst to change shipper mindset and impact pricing. He also questioned the legitimacy of the 200,000 non-domicile CDL number mentioned by the DOT.

Answer

CEO and President Shelley Simpson noted that shippers have been surprised by the prolonged market conditions and are managing costs based on bids. She believes the market needs to change, and non-domicile CDL could be a catalyst, making more sense of current capacity. COO and President of Highway and Final Mile Services Nick Hobbs agreed the 200,000 non-domicile CDL number is 'fairly legit' and that other factors like cabotage are also impacting capacity. EVP of Sales and Marketing Spencer Frazier added that shippers won't make meaningful changes until they 'feel it at the dock level' (freight not picked up), despite macro data.

Tom Markowitz asked Shelley Simpson about potential catalysts for a shift in shipper mindset coming out of the industry downturn. Specifically, he questioned if DOT efforts, such as the non-domicile CDL issue, were causing significant concern among shippers and if the reported 200,000 figure for impacted drivers seemed accurate, potentially influencing pricing.

Answer

CEO Shelley Simpson acknowledged that the prolonged market state has surprised both J.B. Hunt and shippers, who, while sympathetic to cost pressures, manage based on bids. She stated that while non-domicile CDL enforcement could be a catalyst, the market needs to change. EVP of Sales and Marketing Spencer Frazier added that shippers won't make meaningful changes until they experience freight not being picked up. COO Nick Hobbs confirmed the 200,000 non-domicile CDL figure is 'fairly legit' and that other factors like cabotage are also impacting capacity, with economic and regulatory sides driving the timing of any significant market impact.