J. B. Hunt

But the fuel component of this, you've got to discount it a little bit, even though fuel matters clearly, but it's not when you're talking about the cost pressures from the carrier.

We heard it from JB Hunt.

Yep.

We've heard it from Werner.

The small and mid caps continue to underperform.

The semis have been coming on, but, and the AI has been better, but from trashings to the downside, did I forget to tell you the transports were down over 500 today because of Landstar being down 30 bucks, JB Hunt 10 bucks, CH Robinson down $18.

That ain't no hill for a climber.

So stay tuned.

To your question really around, does that mean that they are responsible for adopting technology? And in many cases, it is crazy to think that if you're working with 80 different trucking carriers or 10 different uh, steamship lines or the seven different major railroads that they are all individually going to be providing you with technology that fits your explicit and unique needs.

So more often than not, and this is where ERPs and transportation management systems and warehouse management systems, and even, you know, certain like unique and niche technology have had to come in and kind of fill those gaps because even the best performing tech team at a trucking carrier, like a Werner or JB Hunt, uh, or at a BNSF or a UP or CSX can't fully form fit everything that they're doing on a day-to-day basis to actually meet every single shipper's expectations.

And that kind of would be a foolhardy journey as well of a lot of resources to maintain a lot of things that probably aren't actually driving incremental revenue back into the organization.

So...

We also would like more some of the consumer discretionary names and travel like Delta Airlines and Wyndham.

and also in the transportation space in JB Hunt and CSX.

Here are some sectors and companies that Parker likes in the small cap space.

We like AGCO in that space that not only has the potential for a bottoming to improving overall cycle, but has some company specific market share opportunities as they've launched a number of products and they've changed how they go to market and interact with farmers.

which I'm sure that they will at some point, but where will the volume be? And the last thing I'll mention is, you know, certainly the JB Hunts of the world are the retail arm of the railroads.

And so, you know, they're depending on JB Hunt, Hub, Schneider, all the IMCs out there really to carry their water to be able to get more volume.

So it's an interesting season.

Yeah, I mean, look, we've been tracking contract intermodal rates, and there's a 34% spread between truckload.

Intermodal growth continues to be a huge component of this market, and it's continuing to grow.

JB Hunt came out, had pretty strong earnings on growth, revenue growth.

Their costs were going up faster than their revenues were, but that doesn't mean that we aren't still seeing volume.

And if you look at the tender volume chart, Intermodal is still just growing right through it.