Penalties may apply

By Ray Bohman -- Logistics Management, 2/1/2001

Many LTL carriers have a rule in their tariffs labeled Minimum Charge Cubic Capacity and Density or Minimum Charge for Low-Density Freight or some similar wording. Such rules were designed to provide them with adequate revenue on light and bulky freight that generally has a low average density and occupies more than 750 cubic feet of trailer space. The minimum density varies from carrier to carrier, but most rules we've reviewed set the minimum at either less than 4 pounds or less than 6 pounds per cubic foot.

Companies making shipments of less than 750 cubic feet may think these rules do not apply to them. But they should be aware that such rules contain provisions that, when applied, can push such shipments into the category of 750 cubic feet or greater and thus make them subject to these rules.

The provisions in question center on how the vertical dimension is computed. A vertical dimension of seven feet (84 inches), and in some instances as high as eight feet (96 inches), will be the maximum height used to determine the cube of an individual shipping unit when top loading of like cargo is precluded because of:

• The nature of the article or commodity.

• The packaging used or the lack of packaging.

• Palletization in "pyramided," "rounded off," or "topped off" fashion.

• The shipper's specific instruction in the form of a bill-of-lading notation prohibiting the loading of any other freight on top of the article.

• Construction of a bulkhead by the shipper (anything a shipper does to prohibit the carrier from using any part of a trailer by means of installing partitions, blocking, bracing, or other barriers).

In an effort to keep shippers from trying to get around this rule by tendering two or more shipments to them from the same place during one calendar day for delivery to one place, carriers typically have policies stating that they consider such shipments to be one shipment. The only way to avoid that provision would be to break up a shipment into two or more shipments and tender them on successive days.

We should also note here that some carriers do not allow the application of discounts on light and bulky shipments that take up more than 750 cubic feet of trailer space, or if they do, it might be a minimal discount. (One we saw applied a 20-percent discount.)

The upshot is, if you're shipping light and bulky LTL freight, it may be in your best interest to familiarize yourself with your carriers' rules.

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.