BNSF, J.B. Hunt Head to Arbitration Over Revenue Sharing

A BNSF locomotive (GE ES44C4) leading a freight train is stopped in Atlanta on Nov. 28, 2014. (Photo by Todd DeFeo)

BNSF Railway Co. (BNSF) said it is exercising its right to arbitration provided for in a Joint Service Agreement with J.B. Hunt Transport.

The JSA provides that the revenue division shall be a negotiated provision determined by the parties and reviewed quarterly for its fairness. J.B. Hunt also requested arbitration.

Revenue sharing between the two companies 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.

“Because the terms of the joint services agreement between the two companies are confidential, as are the arbitration proceedings, BNSF will not provide any additional comments at this time,” the railroad said in a statement. “BNSF continues to be focused on providing excellent service to our customers, which will not be affected by this review.”