Proposed Change to the National Motor Freight Classification

The Commodity Classification Standards Board will have a public meeting on Monday, June 3, 2013 to consider changes to a standard that may impact you. The concern involves the transport of corrugated sheets by way of common carrier motor freight. If you ship sheets by a mode that this not owned by the combiner or is a contract carrier, this may be of interest to you. Below is a summary from Dave Carlson at FBA.

“The NMFTA/CCSB material that I have looked at is Docket 2013-2 for the June 3, 2013 CCSB meeting at Alexandria, VA. The only item of interest to the corrugated industry is Subject 14, which deals with changes in the classifications for shipping corrugated sheets. This is the third classification revision involving shipping corrugated products over the past 7 years. KD corrugated was changed in 2006, corrugated cut shapes (D/C), molded pulp, corner posts changed in 2011, and now we have sheets. The proposed classifications for sheets are not materially different than the classifications now in effect for the other two types of corrugated products, so I don’t think the industry has much of a leg to stand on a far as challenging the proposal. The end result will most likely be an opportunity for modest increases by motor carriers to transport corrugated sheets. While the classifications are standard for truckers, the rates they charge must be independently set, per antitrust regulations. However, the effects will be limited because the huge majority of sheets shipped in the U.S. are handled by contract carriers with rates established in the contracts between box plants and the truck lines. Another factor is that the classifications apply to interstate carriers with LTL freight. ”

I have provided the Subject 14 material to our Technical Committee and asked for comments from them.”

— Ralph

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