Familiarize yourself with your carrier’s rules tariffs
By Ray Bohman -- Logistics Management, 8/1/2008
In addition to its scale of base rates (generally called “class rates”), less-than-truckload (LTL) carriers publish a tariff containing its rules. If a carrier is party to the National Motor Freight Classification (NMFC), as nearly 1,000 LTL carriers are, they are also governed by the rules published therein; although they may take exception, in whole or in part, to some of the NMFC rules in their own individual rules tariff.
Over time, carriers have developed rules to cover all types of contingencies, such as added costs they may incur when making deliveries to a specifically named prison or a specifically named retailer, warehouse, or distribution center. Some rules have come into being to make it precisely known how much time is allowed—noted as “free time”—for unloading and loading an LTL shipment depending on the weight of the shipment, as the penalties the consignee will incur if it delays the driver and vehicle beyond the free time.
For many years, up until December of last year, a number of LTL carriers, particularly medium and small-sized carriers, participated in rules tariffs published by regional motor carrier rate bureaus, such as the rules tariff published by the Southern Motor Carriers Rate Conference (SMCRC), rather than issue their own.
Since December 27, 2007, much has changed. On that date, a decision by the Surface Transportation Board (STB) handed down in May 2007 revoking long-time anti-trust immunity of motor carrier rate bureaus, became effective. It required all collectively established rates and charges, excluding those published in the NMFC which do not contain any rates or charges. Most of those rules include definitions, packaging rules (Item 222), the so-called “Bumping clause,” and others.
That change has forced many small- and medium-sized LTL carriers to publish their own individual rules tariffs. Many do so with the help of the staff of the rate bureaus. If you want to know what accessorial charges you may be hit with (such as additional charges for pickups and deliveries at private residences or schools, penalties for late payment of freight bills, or how fuel surcharges are determined) you’ll find these out in individual carrier rules tariffs.
Be aware that you can always request a carrier to take exception to one or more of its rules, but only for your account. For example, you may be able to get your carrier to agree to eliminate its additional charge for delivery of shipments to all schools, or just one or more named schools. Or, the carrier might be persuaded to agree to reduce its current extra charge. Such agreements probably wouldn’t be published in its rules tariff but rather be handled through a letter of agreement between it and your company.
As for the larger LTL carriers such as Roadway Express, and ABF Freight System, many have maintained their own individual rules tariffs for years. Some even publish them on their Web sites. UPS is a good example. Its rules tariff contains over 23,000 words. And, by the way, interstate carriers are required to furnish their rules on request, which is why more and more carriers are putting their rules on the Web.
Rules tariffs can also help you determine if any additional charges on your freight bills are correct. They provide the reference you need to conduct a precise post audit of your freight bill.
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