Keep antitrust immunity for the NCC!

By Ray Bohman -- Logistics Management, 2/1/1998

As you no doubt already know, late last December the Surface Transportation Board (STB) announced it was broadening its review of antitrust matters. Specifically, the board said that at the same time it was deciding whether or not to continue antitrust immunity for motor carrier rate bureaus beyond Dec. 31, 1998, it also would consider whether to continue antitrust immunity for classification activities--specifically those carried out by the National Classification Committee (NCC), which is responsible for approving all changes to the National Motor Freight Classification (NMFC).

As you consider your position on continued antitrust immunity for the NCC, you might think about what the alternatives would most likely be.

First of all, the NMFC would be frozen in place. No further changes in descriptions, ratings, rules, or packaging requirements could be made. Certain provisions in the current NMFC that allow for ratings to go up or down would remain in effect, including:

* Multiple ratings based on density

* Released-value ratings

* Actual-value ratings

* The "bumping" privilege in Rule 171 for certain density-based ratings.

But if antitrust immunity were ended, even those provisions couldn't be changed.

Does this mean the NMFC would no longer be of any value and that everybody--shippers and carriers alike--would throw out their copies?

Absolutely not. Unless something better comes along, which I don't foresee, most carriers party to the NMFC would likely continue to use it, even in its frozen-in-place state. Wouldn't it be in the shipping public's best interest to continue a live classification that would allow for changes in descriptions, ratings, rules, and packaging requirements if warranted?

Over the past 18 years, I have repeatedly observed the committee members trying their level best to apply the NCC Density and Value Guidelines and other criteria fairly. It has not been an easy role for NCC members to play--putting on an entirely different hat once they got into the meeting room, with some of their own customers present--but I haven't found any members being arbitrary or unfair. They have been very conscientious in trying to make certain the process works the same way for everyone.

Of course, not all of the committee's decisions have been popular. In some cases, shippers who had been enjoying unwarranted low ratings because their freight's descriptions and ratings hadn't been reviewed in years, were disturbed when they learned they were going to have to pay the piper. Likewise, I've seen many shipper applications turned down or modified because they asked for far more than they were entitled to (such as seeking Class 70 on a product having a density of only 5 pounds per cubic foot).

On the other hand, many shippers who met the criteria and NCC Guidelines have been granted the relief they sought.

For my money, I'll vote for continued antitrust immunity for the NCC--and a live National Motor Freight Classification.

Editor's note: Mr. Bohman has included this column in a filing with the STB addressing antitrust immunity for the NCC.

Ray Bohman is a well-known consultant and author. Mr. Bohman is editor of several highly successful newsletters on transportation and is a consultant to a number of national trade associations. He is president of The Bohman Group, consultants and publishers in the freight-transportation field. His offices are located at 27 Bay Lane, Chatham, MA 02633. Phone: (508) 945-2272.