1. Much Ado about Nothing
Much Ado about Nothing is a comedic play by William Shakespeare. Much Ado about Nothing is generally
considered one of Shakespeare's best comedies, because it combines elements of:
1. Mistaken Identities,
2. Robust Hilarity
3. Serious Meditations on Honor,
4. Shame,
5. Court Politics.
This fits the recent STB decision on the Bill of Lading changes that the NMFTA made effective August 13, 2016.
One of the flaws the STB exhibited, Hubris (Excessive Pride or Self-Confidence; Arrogance.) with this decision.
On July 14, 2016, the National Motor Freight Traffic Association (NMFTA) issued a supplement to the National
Motor Freight Classification (NMFC) to become effective on August 13, 2016. The supplement was to publish a
revised Uniform Straight Bill of Lading which is particularly favorable for the motor carriers and not their
customers.
Essentially all of the changes found in the new bill of lading serve to protect the carrier. This creates a
challenging burden to successfully recover a claim for loss and damage whenever a carrier asserts one of what
are known as the bill of lading defenses. The changes to the Bill of Lading were made without notice to the
public, nor where shippers of the transportation community given any opportunity to comment or protest the
changes.
We have seen this before in the 1948 Congress authorized truckers to fix rates in concert with one another
when it enacted, over President Truman's veto, the Reed-Bulwinkle Act (5a), which exempted carriers from
the antitrust laws. THERE IS SOME REAL POWER IN THESE TRANSPORTATION GROUPS.
I think it was about time someone or some groups did something about the Bill Of Lading.
Don’t like it? “What are you going to do about it?”
Rule 11. Independent Action.
The CCSB does not interfere with a carrier’s free and unrestrained right of independent action.
(DOES THIS MEAN YOU CAN CHANGE OR DELETE OR BOTH? CAN YOU USE A NEW LTL SHIPMENT RATING SYSTEM
BASED ON ”SPACE OCCUPIED” THAT HAS NO REFERENCE TO NMFC CLASS OR NMFTA RULES, HELL YES)
OR
Remedies for the Classification system's fundamental propensity to research and implement changes that
favor carriers would include providing shippers an equal voice in the determination of the Products and rules
that are selected for such research. There will always be differences over the justification for increasing the
classes of individual commodities or rule changes.
However, having a truly independent or non-biased shippers organization as the decision-maker would go a
long way toward dispelling the prevalent suspicion that a classification change is being made primarily to
generate revenue for carriers. And it would greatly reduce the likelihood of civil actions or complaints by
private parties such as reported by the JOC.
Such a group would only include shippers.
This Space Occupied LTL Pricing makes it easy to add a shipment. Remember, just one extra shipment per
month per customer per pickup and delivery driver will generate more than $170 million in incremental
revenue per year — revenue with a very high operating margin…YRC CEO
2. What would work? ”SPACE OCCUPIED”
The shipper and carrier first agree on the cube group or density class
• In this example, the carrier’s pricing follows the NMFC classifications.
• The shipper and carrier have agreed that class 100 maps to C3 Cube Group, on the weight multiplier, on the transit
time multiplier, on the insurance rate, on the mileage multiplier and on the stackable multiplier.
• The shipper has a C3 Cube Group shipment weighing 500 pounds being delivered from Atlanta to Memphis. The
shipper would like $500 of insurance. This shipment is stackable and on a 40 x 48 x 6 pallet.
• Shipment Dimensions = C3
• Shipment Weight = W5
• Insurance = I2 ($.35 x 5)
• Transit Time = T5
• Distance (388 miles) = M1
• Stackable = S0
• Payment Terms
Price: (C3 x W5 x T5 x M1 x S0 x PT) + ($.35 x 5)
5. SPACE OCCUPIED
Shipment Dimensions
Can map to Density pricing
Can map to NMFC Classification pricing
Shipper
Entry
Length
X
Width
X
Height
Formula
Cube =
Length x
Width x
Height
Round to
the
nearest
tenth of a
cubic foot
Map to Cube
or Density
Classification
D1 or C1
30 to 50
lbs/Cubic Feet
D1 or C2
29.9 to 13
lbs/Cubic Feet
D3 or C3
12.9 to 10 lbs/
Cubic Feet
D4 or C4
9.9 to 7 lbs/
Cubic Feet
D5 or C5
6.9 to < 1
lbs/Cubic Feet
NMFC
Classification
50, 55, 60
65, 70, 77.5
85, 92.5
100, 110
125 and up
Carrier Base
Rate
D1 or C1
D2 or C2
D3 or C3
D4 or C4
D5 or C5
6. SPACE OCCUPIED
Weight
Shipper
Entry
Weight (in lbs.)
Map to
Weight
Classification
W1
1 to 100 lbs.
W2
101 to 200 lbs.
W3
201 to 300 lbs.
W4
301 to 400 lbs.
W5
401 to 500 lbs.
Carrier
Multiplier
W1
W2
W3
W4
W5
W5+
Multiply W5 by 1000 lb.
Increments
7. SPACE OCCUPIED
Insurance
Shipper
Entry
Enter Insured Value
Map to
Insured Value
Classification
I1
$0 to $100
I2
Insured Value $101 to $499
$.50 per $100
I3
Insured Value $500 to $999
$.45 per $100
I4
Insured Value $1000 to $4999
$.40 per $100
I5
Insured Value $5000+
Contact Carrier for Quote
Carrier Adds
Charge
I 1 (No Charge)
I2
I3
I4
I5
W5+
Multiply W5 by $1000
Increments
8. SPACE OCCUPIED
Transit Time
Shipper
Entry
Select Transit Time
Map to
Transit Time
Classification
T1
Now
Call Carrier for Availability
T2
Next Day 7:00am
T3
Next Day 10:00am
T4
2nd Day (specify AM or
PM)
T5
3-5 Day (specify AM or
PM)
Carrier
Charge
(Multiplier)
T1
T2
T3
T4
T5
9. SPACE OCCUPIED
Distance
Shipper
Entry
Enter Origin and
Destination
Map to
Mileage
Classification
M1
0 to 150 Miles
M2
151 to 450 Miles
M3
451 to 750 Miles
M4
751 to 1200 Miles
M5
1200 or more Miles
Carrier
Charge
(Multiplier)
M1
M2
M3
M4
M5
11. SPACE OCCUPIED
Space Occupied™ At Work
The shipper and carrier first agree on the cube group or density class
Example
In this example, the carrier’s pricing follows the NMFC classifications.
The shipper and carrier have agreed that class 70 maps to C2 Cube Group, on the weight
multiplier, on the transit time multiplier, on the insurance rate, on the mileage multiplier and on
the stackability multiplier.
The shipper has a C2 Cube Group shipment weighing 500 pounds being delivered from Atlanta to
Memphis. The shipper would like to deliver the next day by 08:00 am with $500 of insurance.
This shipment is stackable.
Shipment Dimensions = C2
Shipment Weight = W5 x 3
Insurance = I3 ($.45 x 7.5)
Transit Time = T3
Distance (388 miles) = M2
Stackability = S0
Payment Terms
Price: (C3 x (W5 x 3) x T3 x M2 x S0 x PT) + ($.45 x 7.5)
12. Dynarates™ LTL Pricing for Space Occupied
Simply stated: You pay for only what you use based upon space
occupied. In this case, both shippers and carriers benefit from the
new structure.
www.dynarates.com hank.mullen@dynarates.com
1012 Forest Creel Ln
Canton, Georgia 30115
770-380-1650
