"NOI" descriptions come under review
By Ray Bohman -- Logistics Management, 11/1/2003
Are you shipping articles that are subject to classification descriptions in the National Motor Freight Classification (NMFC) that are followed by the abbreviation "NOI" ("not more specifically described herein")? Many NOI ratings (classes) have remained in effect for a long time—some of them, in fact, have been unchanged for decades. Don't get lulled into thinking those ratings will be around forever, though; changes may be coming sooner than you think.
For some time now, the staff of the National Classification Committee (NCC) has been working under a directive to review the transportation characteristics of NOI classification descriptions and associated ratings to determine if changes are warranted. As a result of that initiative, NOI descriptions have been amended to provide for a multiple scale of ratings, based on density, for the following commodities:
Baskets, Hampers, or Jar-dinières, NOI
Brass, Bronze, or Copper Articles, NOI
Cabinets, NOI
Coolers, Iceboxes, or Refrigerators, NOI
Metallic or Wooden Furniture, NOI
Paper Goods, NOI
And more changes to other commodity descriptions and rates are on the way.
The major reason for initiating these reviews is that the transportation characteristics of many of these articles have changed considerably over the years. For example, new, lighter-weight materials such as plastic are now being used to manufacture items that used to be made from heavier, denser materials such as metal or wood. In some cases, bulkier packaging has become the norm since a rate originally was established.
The NCC staff is finding that many of the NOI commodity descriptions have a wide range of densities (weight per cubic foot), in contrast to the narrower range that existed when the current ratings were first established. This wider range warrants a multiple scale of ratings based on density in order to ensure the most equitable distribution of the transportation burden. In other words, the rates need to be changed so that shippers of light and bulky articles pay a higher rate than those who ship heavier, denser items.
Such density-based scales provide an incentive for shippers to redesign or repackage their products in order to attain a heavier density, and thus be able to take advantage of a lower rating. That's something they can do immediately, with no need to go to the National Classification Committee for its approval.
Keep in mind that all multiple scales are subject to Item (Rule) 171 of the NMFC—the so-called "bumping clause." This allows the shipper to declare on the bill of lading a heavier weight than the actual gross shipping weight in order to qualify for the next lowest rating. It's possible to save up to 10 percent by "bumping."
If you are shipping under an NOI description that hasn't recently been changed, keep your eye on future NCC dockets. These dockets are issued quarterly on NCC's Web site (www.nmfta.org). When those changes do come, take a good look at them as you may find a way to save yourself some money.
| 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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