ICS segment revenue decreased 40% to $1.39 billion in 2023, from $2.32 billion in 2022. The decrease was partially offset by the acquisition of the brokerage assets of BNSF Logistics, LLC (BNSFL) on September 30, 2023.

Despite the decrease in operating revenues, the company is still committed to spending approximately $868 million, net of proceeds from sales or trade-ins, during the years 2024 and 2025, as well as an additional $381 million thereafter. These expenditures will relate primarily to the acquisition of tractors, containers, chassis, and other trailing equipment.

JBT segment revenue decreased, but load volume increased 3% compared to 2022. Load volume growth was primarily related to the continued expansion of J.B. Hunt 360box which leverages the J.B. Hunt 360 platform to access drop trailer capacity for customers across our transportation network.

The DCS segment experienced a 1% increase in revenue, with customer retention rates approximately at 93%. This indicates effective management in maintaining customer relationships and securing long-term contracts.

FMS segment revenue decreased 12%, primarily due to decreased customer demand and the effects of internal efforts to improve revenue quality across certain accounts, partially offset by improved revenue quality at underperforming accounts and the addition of multiple new customer contracts implemented over the past year.

The company continues to repurchase shares and increase dividends, indicating a focus on returning value to shareholders. On January 18, 2024, an increase in the quarterly cash dividend from $0.42 to $0.43 per share was announced.

The 10-K highlights that future insurance and claims expenses might exceed historical levels, which could reduce earnings. The company has experienced substantial increases in the severity of auto liability claims which have exceeded insurance coverage layers.

The company relies on railroads for intermodal services, independent contractors, and third-party carriers. Disruptions or changes in these relationships could have a material adverse effect on business and operating results.

The 10-K acknowledges that a determination that independent contractors are employees could materially increase exposure under a variety of federal and state tax, workers' compensation, unemployment benefits, labor, employment and tort laws, as well as potential liability for employee benefits.

The filing states that the freight transportation markets are frequently referred to as highly fragmented and competitive. J.B. Hunt competes with other intermodal marketing companies, full-load carriers, and railroads.

The company derives a significant portion of its revenue from a few major customers, with the top 10 customers accounting for approximately 36% of revenue. The loss of one or more of these customers could have a material adverse effect on the business.

The company emphasizes its J.B. Hunt 360 platform as a key differentiator, offering shippers and carriers greater access, visibility, and transparency of the supply chain. This platform is intended to improve efficiency and service, enhancing the company's competitive position.

The company seeks to accomplish a more efficient transportation network by maintaining a modern fleet to maximize fuel efficiency, converting loads from truck to rail with intermodal service, and introducing technologies to optimize freight flows in the supply chain by eliminating waste.

Operating supplies and expenses increased 1.4% in 2023 compared with 2022, driven primarily by higher building and facilities maintenance costs, increased tolls expense, increased towing costs, and higher equipment maintenance costs compared to 2022.

At December 31, 2023, the average age of the combined tractor fleet was 1.9 years, while containers averaged 9.0 years of age and trailers averaged 6.3 years. This indicates a relatively modern fleet, which can contribute to operational efficiency.

The company maintains an Information Technology (IT) risk identification process that encompasses risks associated with enterprise solutions and products and services provided by third-party service providers. Cybersecurity risks are considered a subcategory of IT risks and are therefore part of this process.

The company has invested significantly in the development of its Marketplace for J.B. Hunt 360 online freight matching platform, aiming to achieve operating efficiencies and growth. The platform helps shippers and carriers match the right load with the right carrier.

The company continues to ingrain safety into its corporate culture and strive to conduct all of its operations as safely as possible. J.B. Hunt employees participate in regular job-specific safety training programs.

The company is committed to spend approximately $868 million, net of proceeds from sales or trade-ins, during the years 2024 and 2025, as well as an additional $381 million thereafter. These expenditures will relate primarily to the acquisition of tractors, containers, chassis, and other trailing equipment.

The company currently intends to continue paying cash dividends on a quarterly basis. On January 18, 2024, an increase in the quarterly cash dividend from $0.42 to $0.43 per share was announced.

During calendar year 2023, the company purchased approximately 902,100 shares, or $159.6 million, of its common stock in accordance with plans authorized by the Board. At December 31, 2023, $391.5 million was available under an authorized plan to purchase common stock.

The company's vision is to create the most efficient transportation network in North America, focusing on delivering both for customers across all business segments. The company seeks to accomplish this by maintaining a modern fleet to maximize fuel efficiency, converting loads from truck to rail with intermodal service, and introducing technologies to optimize freight flows in the supply chain by eliminating waste.

The company holds strongly to the principle that a qualified, diverse workforce, and inclusive workplace helps represent the broad cross-section of ideas, values, and beliefs of employees, customers, suppliers, and communities.

The health and well-being of the workforce is a priority as the company continues to ingrain safety into its corporate culture and strive to conduct all operations as safely as possible. J.B. Hunt employees participate in regular job-specific safety training programs.

The company's business can be significantly impacted by economic conditions, customer business cycles, and seasonal factors. Recessionary economic cycles and downturns in customers' business cycles may substantially reduce freight volumes.

The company's operations can be heavily impacted by the effects of a widespread outbreak of contagious disease. The effects of a pandemic may disrupt or restrict the freight shipping activities of some customers, on which the business is dependent.

The company's operations as a for-hire motor carrier are subject to regulation by the U.S. Department of Transportation (DOT) and the Federal Motor Carrier Safety Administration (FMCSA), and certain business is also subject to state rules and regulations.