Want to avoid surprises? Know the rules

By Ray Bohman -- Logistics Management, 7/1/2006

In this day and age, it's pretty easy to find out what it would cost to make a less-than-truckload (LTL) shipment. Whether through telephone calls and e-mails to carriers, DVDs containing carriers' rates, or research on the Internet, shippers and consignees are able to determine the rates per 100 pounds and the applicable fuel surcharges in short order.

Having that information in hand, however, may not necessarily give you the final, bottom-line price you will be charged for an LTL shipment. Motor carriers have all kinds of rules that govern such subjects as packaging, detention charges, and fees for additional services, to mention just a few.

How can you avoid being blindsided by some added charge you never knew existed or having a damage claim denied because you didn't comply with protective-packaging rules? The best way to stay on top of all the charges that might apply to your shipments is to familiarize yourself with the carriers’ rules.

If any of the LTL carriers you use are participating in the National Motor Freight Classification (NMFC)—and nearly 1,000 trucking companies, including most of the nation’s major LTL carriers, do—you'll want to consider acquiring a copy of the NMFC's rules section. It's available by subscription only, either in print or in the new electronic version of ClassIT that is available over the Internet.

The rules section of the NFMC currently takes up 81 pages. That will go up to 85 pages on July 22, when the new North American Free Trade Agreement (NAFTA) Uniform Bill of Lading takes effect. Of those pages, 61 involve rules governing protective packaging. The NFMC's rules tariff does not show the actual charges for additional services rendered or the dollars-and-cents penalties for failing to comply with the group's rules. Those charges are established by the individual carriers.

All LTL carriers, including those that are party to the NMFC, publish their own rules. I consulted one major carrier's rules tariff, which was 107 pages long and contained 124 separate rules. Some of this particular carrier's rules are exceptions to rules in the NMFC, and they apply only for the carrier's account. You should be aware of that possibility, although most carriers' tariffs typically include rules that are not found in the NMFC.

Many carriers' rules tariffs include charges for added services or penalties for non-compliance. Here are a few examples:

·Pickup or delivery at residential, construction site, and non-residential locations

·Collect on delivery (COD) shipments

·Rate arbitraries (for example, additional charges for remote areas)

·Rules for advancing charges

·Storage

·Stop-off for partial loading or unloading

·Re-consignment or diversion

·Pickup or delivery service on Saturdays, Sundays, or holidays

·Notification prior to delivery

·Transportation of articles of excessive length

Some individual carriers have chosen to have their rules included in regional rate bureaus' rules tariffs, such as Tariff 190 issued by SMC3, rather than issuing their own rules tariff. More and more individual carriers, meanwhile, are making their rules tariffs available online.

Advance knowledge of carriers' rules will help you to make sure each of your shipments fully complies with all applicable rules and will move to their destinations without any complications or unexpected costs.