It's all in the description
By Ray Bohman -- Logistics Management, 1/1/2001
No shipper wants to pay more in freight charges than is strictly necessary, but it happens all the time. How can you avoid overpaying? One way to ensure that the lowest legally applicable freight charges appear on your freight bills is to be sure to show the proper classification description of the commodities you are shipping when you prepare your bills of lading.
If you are shipping via one of the nearly 1,600 LTL (less-than-truckload) motor carriers or freight forwarders that are party to the National Motor Freight Classification (NMFC), your bill-of-lading descriptions should conform precisely to the applicable description found in that publication. (Even on FAKs - "Freight, All Kinds" rates - some carriers want NMFC descriptions shown.)
Determining the correct classification description of an article is generally quite easy. First check the alphabetical Index of Articles found in the front of the NMFC. If you find what you're looking for in the Index, turn to the body of the Classification and locate the item number from the Index. You'll find the complete description to the right of that number, followed by the class.
There are times, however, when a commodity you are shipping isn't listed in the Index of Articles. For example, if you are shipping inflated playballs, you won't find any such description in the NMFC. The proper description is "Games or Toys, NOI," according to density, under Item 84260 of the NMFC.
No matter how careful you are in describing your freight, there may be instances in which carriers challenge the descriptions shown on your bills of lading. How do you go about resolving such disputes?
First of all, remember that you as the shipper have as much right to interpret the classification as a carrier - or anyone else - does. In so doing, you should always keep the basic tenet of classification interpretation in mind - that the most specific description applies. If you should find that no specific description is listed in the NMFC, an "NOI" (Not Otherwise Indexed) description would apply, if one should be found. And if no "NOI" description is listed, the so-called "rule of analogy" applies - Item (Rule) 421 of the NMFC. That rule requires the carrier party to the NMFC to determine, in its judgment, what description in the classification "is the most closely analogous."
There are other rules that should be consulted as well, including:
Item 420 - Classification of Articles-General
Item 422 - Classification of Combined Articles
Item 423 - Classification of Loose Articles
Item 424 - Classification of Parts or Pieces of a Complete Article
Item 425 - Classification of Reconditioned Articles
Item 428 - Classification of Various Documents Included With Freight.
If you are still uncertain as to the correct description or are at loggerheads with a carrier over its interpretation, you can always request an opinion from a knowledgeable party such as a transportation consultant or transportation lawyer. The staff of the National Classification Committee in Alexandria, Va., is always available to give its opinion - and at no charge. Even the Surface Transportation Board (STB), for a fee of $150, will render an informal non-binding opinion. If all else fails, you are always free to file a petition for a declaratory order with the STB or to file suit in a court of law.
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.
View All Blogs
