J.B. Hunt Transport Services, Inc. Announces Arbitration Proceedings
January 03 2017 - 10:05AM
Business Wire
J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) announced
today that it has exercised its right to arbitrate the revenue
division provided for in the Joint Service Agreement (“JSA”)
between J.B. Hunt Transport, Inc. (“JBHT”), its wholly owned
subsidiary, and BNSF Railway Company (“BNSF”). The JSA provides
that the revenue division shall be a negotiated provision
determined by the parties and reviewed quarterly for its fairness.
JBHT has requested that the fairness of the revenue division be
reviewed by a panel of arbitrators.
The revenue sharing is determined under confidential contract
standards, and the issues submitted for arbitration include both
the interpretation and application of these standards. Each party
believes its interpretation of the contract and methodology to
determine the revenue division is both proper and fair. The
arbitration pertains to the division of revenue collected under the
JSA beginning May 1, 2016.
The fairness of the revenue division has not been reviewed by a
third party in more than 10 years, and the intermodal network built
by the parties over that time has seen tremendous growth and
increased operating complexities. While this type of proceeding
between the parties has been infrequent, and may be lengthy and
time consuming, JBHT considers this part of the normal course of
business within the long term relationship. Compartmentalizing the
proceeding is a more efficient way to facilitate the revenue
division determination and will allow both parties to maintain
their focus on growing and operating the joint service network.
The ultimate goal is to jointly serve our large and expanding
customer base and to continue to provide them with the premier
intermodal service they have come to expect from this relationship.
Both parties agree that retaining customer service levels and
customer confidence is paramount to the success of intermodal and
that this administrative proceeding will in no way interfere with
that priority.
JBHT cannot reasonably predict the outcome of the arbitration,
but it believes the resolution of this matter will not have a
material effect upon its current or prior financial results nor the
ongoing delivery of services to its customers.
This press release contains forward-looking statements, which
are based on information currently available. Actual results may
differ materially from those currently anticipated due to a number
of factors, including, but not limited to, those discussed in Item
1A of the Company’s Annual Report filed on Form 10-K for the year
ended December 31, 2015. We assume no obligation to update any
forward-looking statement to the extent we become aware that it
will not be achieved for any reason.
This press release and related information will be available
immediately to interested parties on our website:
www.jbhunt.com.
About J.B. Hunt
J.B. Hunt Transport Services, Inc., a Fortune 500 and S&P
500 Company, focuses on providing safe and reliable transportation
services to a diverse group of customers throughout the contiguous
United States, Canada and Mexico. Utilizing an integrated,
multimodal approach, the company provides capacity-oriented
solutions centered on delivering customer value and
industry-leading service. J.B. Hunt Transport Services, Inc. stock
trades on NASDAQ under the ticker symbol JBHT and is a component of
the Dow Jones Transportation Average. J.B. Hunt Transport, Inc. is
a wholly owned subsidiary of JBHT. For more information, visit
www.jbhunt.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170103005792/en/
J.B. Hunt Transport Services, Inc.David G. Mee,
479-820-8363Executive Vice President, Finance/Administration and
Chief Financial Officer
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