J.B. Hunt Transport Services, Inc. Announces Arbitration Proceedings

LOWELL, Ark.--(BUSINESS WIRE)--

J.B. Hunt Transport Services, Inc. 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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