The NMFC gets a reprieve
Ray Bohman -- Logistics Management, 3/1/2002
Over the past few years, efforts have arisen time and again to strip the trucking industry's National Classification Committee (NCC) of its antitrust immunity to collectively establish or change classification descriptions, ratings, shipping rules and packaging specifications published in the National Motor Freight Classification (NMFC).
But none of these efforts has yet prevailed. On Nov. 20, 2001, the Surface Transportation Board (STB)—in Section 5a Application No. 61 (Sub. No. 6) National Classification Committee-Agreement and Section 5a Application No. 61 National Classification Committee-Agreement—voted to renew its approval of the NCC agreement provided the committee amends its procedures so as to 1) give shippers more information at an earlier stage of the classification process, and 2) provide for a right of review by a neutral arbitrator of initial NCC classification decisions. The NCC is now in the process of developing a proposed revised Section 5a agreement to meet those conditions, which will be filed with the STB no later than March 20. Interested parties may file a response by April 19, and the NCC will have the opportunity to file a reply to any response by May 3. The matter will then go to the STB for a final decision.
When all is said and done, most things will not have changed: For example, it appears certain that the NCC will retain its antitrust immunity and that the National Motor Freight Classification will continue to be a viable, living document rather than a record frozen for all time. Furthermore, the four accepted criteria that must be considered when classifying freight—density, stowability, liability and handling—will remain in place.
But a few things will change. Some of the modifications we are likely to see include:
- The issuance of NCC dockets at least 60 days in advance of NCC quarterly meetings that consider proposed changes or additions to the National Motor Freight Classification.
- The likely assignment of initial decisions, currently made by NCC Classification Panels, to the full National Classification Committee. The full NCC will no longer act as an appellate body.
- The right of review of any NCC initial decision by a neutral arbitrator—a new option. The cost of arbitrating a contested NCC initial decision (approximately $100 per hour) will be split by both sides.
Quite frankly, this writer believes NCC Classification Panels should be allowed to continue to make initial decisions and that once a decision is issued, a dissatisfied party should have the option of either appealing that decision to the full NCC, as is currently allowed, or of requesting a review of such decision by a neutral arbitrator.
Over the years, many parties dissatisfied with initial decisions made by NCC panels have been able to resolve their differences through appeals to the full NCC—achieving compromises that will not likely be attainable though the arbitration process. Why not give the shipping public the choice of appealing initial panel decisions to either the full NCC or going to arbitration? If past decisions made by the full NCC (on appeal) have been so unfair, why is it that review by the Surface Transportation Board has been requested so seldom that you can count those requests on one hand and still have some fingers left over? Why scuttle an appellate process that often satisfies aggrieved shippers?
| Author Information |
| Ray Bohman, a well-known consultant and author. 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. |





















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