JB Hunt Transport Services, a titan in the North American transportation landscape, recently held its Q1 2024 earnings call [Source: Seeking Alpha](https://seekingalpha.com/symbol/JBHT). While analysts dissected the company's financial performance and market dynamics, one critical detail seemed to slip under the radar: JB Hunt's Intermodal segment is sitting on a coiled spring of excess capacity, ready to unleash a potential 20% volume surge.

This revelation, casually dropped during Darren Field's (President of Intermodal) segment update, painted a fascinating picture of the company's forward-looking strategy. While grappling with the realities of a persistently challenging freight environment, JB Hunt appears to be meticulously preparing for a dramatic market upswing.

The company has repeatedly acknowledged the 'depth and duration' of the current down cycle, exceeding their initial expectations. Yet, instead of cowering, they've continued investing in capacity, most notably through the strategic acquisition of Walmart's intermodal container fleet. This move, coupled with the continuous expansion of their own container fleet, has put them in a unique position.

Currently, their intermodal network can handle at least 20% more volume than what they're currently moving. Field, during the Q&A session, even acknowledged that their system is 'built for it and could accommodate it.' This latent capacity, a product of both foresight and calculated risk-taking, is what we're calling JB Hunt's 'coiled spring.'

Now, the question becomes, how realistic is a 20% volume surge in the near future? It's certainly audacious, especially considering the current market dynamics. But several factors suggest it might not be as far-fetched as it initially seems.

Firstly, the intermodal market is ripe for expansion. Both Field and Simpson (JB Hunt's President), emphasized the substantial volume of freight that could be shifted from over-the-road trucking to intermodal. The inherent cost advantages and environmental benefits of intermodal make it an attractive alternative, especially in a cost-conscious environment.

Secondly, JB Hunt isn't just building capacity, they're building confidence. Their focus on operational excellence, delivering consistent high-quality service, is aimed at regaining customer trust after a period of pandemic-related disruptions. A reliable intermodal network could be a game-changer for shippers looking for stability and predictable transit times.

Thirdly, external factors could catalyze a shift towards intermodal. Amit Mehrotra, during the Q&A, highlighted the significant disruptions in the Red Sea, impacting the Suez Canal and potentially influencing supply chain decisions. A prolonged disruption in these crucial waterways could force shippers to seek alternative routes and modes, with intermodal being a prime beneficiary.

Intermodal Volume Potential

Let's put some numbers to this hypothesis. In Q1 2024, JB Hunt's Intermodal segment moved approximately 571,000 loads. A 20% increase would translate to an additional 114,200 loads, bringing the total to 685,200 loads. Considering the current overcapacity, absorbing this additional volume would significantly improve profitability.

While this 20% surge might not materialize overnight, the building blocks are clearly in place. JB Hunt's 'coiled spring' strategy, coupled with the evolving market dynamics and potential external catalysts, suggests that a significant volume upswing in their intermodal segment is a very real possibility.

"Fun Fact: JB Hunt started in 1961 with only five trucks and seven refrigerated trailers, hauling rice hulls. Today, they operate over 130,000 pieces of equipment, making them one of the largest transportation providers in North America. [Source: JB Hunt Official Website](https://www.jbhunt.com/)"