ICS segment revenue decreased 21% to $270 million in Q2 2024, from $344 million in 2023. Overall volumes decreased 25% compared to the second quarter 2023, and approximately $104 million of second quarter 2024 ICS revenue was executed through the Marketplace for J.B. Hunt 360, compared to $225 million in the second quarter 2023.

FMS segment revenue increased 5% to $235 million in Q2 2024 from $224 million in 2023, primarily due to the addition of multiple new customer contracts implemented over the past year.

We expect to spend in the range of $650 million to $700 million for net capital expenditures during the full calendar year 2024. Capital expenditures in 2024 were primarily for intermodal containers and chassis and other trailing equipment.

DCS segment revenue decreased 4% to $851 million in the second quarter 2024 from $888 million in 2023. Productivity, defined as revenue per truck per week, decreased 3% when compared to the second quarter 2023. Productivity, excluding fuel surcharge revenue, decreased 3%, primarily due to decreased asset utilization and increased idle equipment.

JBI segment operating income decreased 31% to $99.2 million in the second quarter 2024 from $142.9 million in 2023. The decrease is primarily due to the decrease in revenue and higher driver and non-driver wages, increased maintenance and equipment-related costs, and higher insurance premiums expense, as a percentage of gross revenue.

JBT segment operating income decreased to $3.5 million in 2024, compared with $3.8 million during second quarter 2023. The decrease is primarily due to the decrease in revenue and higher insurance premiums expense, partially offset by overall cost management initiatives.

The company reiterates risk factors from its annual report, including the impact of economic conditions, weather, environmental laws, and reliance on third parties.

Insurance and claims expenses increased 14.6% in 2024 compared with 2023, primarily due to higher insurance policy premiums expense, partially offset by lower cost per claim.

We derive a significant portion of our revenue from a few major customers, the loss of one or more of which could have a material adverse effect on our business.

Load volumes during the second quarter 2024 decreased 1% over the same period 2023, primarily driven by weak demand, competition from over-the-road truck options in the eastern network, and our disciplined approach to the market for the value our services provide.

ICS's carrier base decreased 24% compared to second quarter 2023, primarily due to changes in carrier qualification requirements.

We operate in a competitive and highly fragmented industry. Numerous factors could impair our ability to maintain our current profitability and to compete with other carriers and private fleets.

Rents and purchased transportation costs decreased 9.3% in the second quarter 2024. This decrease was primarily the result of a decrease in rail and truck carrier purchased transportation rates within JBI, ICS, and JBT segments and decreased JBI, ICS and JBT load volumes.

Salaries, wages, and employee benefits costs decreased 2.3% during the second quarter 2024, compared with 2023. This decrease was primarily due to a decrease in driver and office employee headcounts and lower incentive compensation.

Operating supplies and expenses decreased 6.6%, driven primarily by lower equipment maintenance costs, decreased towing expenses, and lower travel and entertainment expenses.

Approximately $104 million of second quarter 2024 ICS revenue was executed through the Marketplace for J.B. Hunt 360, compared to $225 million in the second quarter 2023.

We rely significantly on our information technology systems, a disruption, failure or security breach of which or inability to keep pace with technological advances could have a material adverse effect on our business.

The company continues to invest in technology to improve efficiency. This is reflected in the capital expenditure plans and ongoing efforts to enhance the J.B. Hunt 360 platform.

At June 30, 2024, $163 million of this authorization was remaining. We purchased approximately 1,350,700 shares, or $228.3 million, of our common stock under our repurchase authorization during the six months ended June 30, 2024.

On July 17, 2024, our Board of Directors declared a regular quarterly dividend of $0.43 per common share, which will be paid on August 16, 2024, to shareholders of record on August 2, 2024.

Our net capital expenditures include net additions to revenue equipment and non-revenue producing assets that are necessary to contribute to and support the future growth of our various business segments.

Our operations are subject to various environmental laws and regulations, including legislative and regulatory responses to climate change. Compliance with environmental requirements could result in significant expenditures and the violation of these regulations could result in substantial fines or penalties.

The company acknowledges the potential impact of climate-related risks on its business, results of operations, or financial condition.

In March 2024, the SEC adopted new rules that will require registrants to provide certain climate-related information in their registration statements and annual reports. We are currently evaluating the impact of the adoption of these rules on our financial statements and related disclosures and monitoring the status of the rules while legal challenges are pending.

Our business is significantly impacted by economic conditions, customer business cycles, and seasonal factors.

Extreme or unusual weather conditions can disrupt our operations, impact freight volumes, and increase our costs, all of which could have a material adverse effect on our business results.

Rapid changes in fuel costs could impact our periodic financial results.