B-153629, FEB. 19, 1965

B-153629: Feb 19, 1965

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INC.: FURTHER REFERENCE IS MADE TO YOUR LETTER OF AUGUST 18. THE APPLICABLE CHARGES WERE COMPUTED HERE ON THE BASIS OF SECTION 3. ITEM 212 IS AN EXCEPTION TO RULE 130 OF THE NATIONAL MOTOR FREIGHT CLASSIFICATION. IN PERTINENT PART: "WHEN THE AGGREGATE CHARGE UPON THE ENTIRE SHIPMENT IS LESS ON BASIS OF VOL OR TL RATE AND VOL OR TL MIN WT (ACTUAL OR AUTHORIZED ESTIMATED WEIGHT TO BE CHARGED FOR IF IN EXCESS OF THE MIN WT) FOR ONE OR MORE OF THE ARTICLES. THE SHIPMENT WILL BE CHARGED FOR ACCORDINGLY. * * *" IN ACCORDANCE WITH THIS RULE. THE CHARGES FOR THE SMOKE POTS IN THE SHIPMENT WERE COMPUTED HERE AT THE APPLICABLE VOLUME RATE TIMES THE VOLUME MINIMUM WEIGHT OF 20. THE CHARGES FOR THE GRENADES IN THE SHIPMENT WERE COMPUTED AT THE APPLICABLE LESS THAN TRUCKLOAD (LTL) RATE TIMES THE ACTUAL WEIGHT OF THE GRENADES.

B-153629, FEB. 19, 1965

TO RYDER TRUCK LINES, INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF AUGUST 18, 1964, YOUR FILE OC GOV. BILL 62-2152, IN WHICH YOU REQUESTED REVIEW OF THE SETTLEMENT WHICH DISALLOWED YOUR CLAIM FOR $146.81 IN CONNECTION WITH A SHIPMENT MADE UNDER GOVERNMENT BILL OF LADING B-6996418.

THE SHIPMENT IN QUESTION CONSISTED OF 1,202 POUNDS OF GRENADES AND 18,624 POUNDS OF SMOKE POTS, AND THE APPLICABLE CHARGES WERE COMPUTED HERE ON THE BASIS OF SECTION 3, ITEM 212, SOUTHERN MOTOR CARRIERS RATE CONFERENCE (SMCRC) TARIFF 517-P. ITEM 212 IS AN EXCEPTION TO RULE 130 OF THE NATIONAL MOTOR FREIGHT CLASSIFICATION, COVERING MIXED VOLUME OR TRUCKLOAD SHIPMENTS.

SECTION 3 READS, IN PERTINENT PART:

"WHEN THE AGGREGATE CHARGE UPON THE ENTIRE SHIPMENT IS LESS ON BASIS OF VOL OR TL RATE AND VOL OR TL MIN WT (ACTUAL OR AUTHORIZED ESTIMATED WEIGHT TO BE CHARGED FOR IF IN EXCESS OF THE MIN WT) FOR ONE OR MORE OF THE ARTICLES, AND ON BASIS OF ACTUAL OR AUTHORIZED ESTIMATED WEIGHT AT LTL RATE OR RATES * * * OR CHARGE FOR THE OTHER ARTICLE OR ARTICLES, THE SHIPMENT WILL BE CHARGED FOR ACCORDINGLY. * * *"

IN ACCORDANCE WITH THIS RULE, THE CHARGES FOR THE SMOKE POTS IN THE SHIPMENT WERE COMPUTED HERE AT THE APPLICABLE VOLUME RATE TIMES THE VOLUME MINIMUM WEIGHT OF 20,000 POUNDS. THE CHARGES FOR THE GRENADES IN THE SHIPMENT WERE COMPUTED AT THE APPLICABLE LESS THAN TRUCKLOAD (LTL) RATE TIMES THE ACTUAL WEIGHT OF THE GRENADES.

GRENADES ARE CLASSIFIED IN THE MOTOR CARRIER EXPLOSIVES TARIFF AS CLASS B EXPLOSIVES. SHIPMENTS CONSISTING OF OR CONTAINING SUCH EXPLOSIVES ARE SUBJECT TO A MINIMUM CHARGE SPECIFIED IN ITEM 7028-C OF SMCRC TARIFF 505- B.IT IS YOUR CONTENTION THAT THIS MINIMUM CHARGE MUST BE OBSERVED IN COMPUTING THE CHARGES FOR THAT PORTION OF A SHIPMENT RATED LTL UNDER SECTION 3 OF ITEM 212. CONSEQUENTLY, YOU URGE THAT THE CORRECT CHARGES ON THE SHIPMENT IN QUESTION UNDER SECTION 3 ARE THE VOLUME CHARGES FOR THE SMOKE POTS, PLUS THE MINIMUM CHARGE SPECIFIED IN ITEM 7028-C FOR THE GRENADES. THE LTL RATE TIMES ACTUAL WEIGHT FOR BOTH THE GRENADES AND THE SMOKE POTS PRODUCES A LOWER CHARGE AND YOUR CLAIM IS SUBMITTED ON THAT BASIS.

ITEM 7028-C OF SMCRC TARIFF 505-B READS, IN PERTINENT PART:

"THE MINIMUM CHARGE ON ANY LTL OR AQ SHIPMENT CONSISTING OF OR CONTAINING CLASS A OR B EXPLOSIVES, * * * MOVING UNDER RATES NAMED IN THIS TARIFF, WILL BE THE CHARGE FOR 7,500 POUNDS AT THE CLASS 200 RATE. * * *"

FROM THE ABOVE LANGUAGE, IT WILL BE OBSERVED THAT THE MINIMUM CHARGE APPLIES ON ANY LTL SHIPMENT CONSISTING OF CLASS A OR B EXPLOSIVES AND THE MINIMUM CHARGE APPLIES ALSO ON ANY LTL SHIPMENT CONTAINING CLASS A OR B EXPLOSIVES. IT FOLLOWS, THEREFORE, THAT THE MINIMUM CHARGE APPLIES ON A MIXED LTL SHIPMENT CONSISTING IN PART OF CLASS A OR B EXPLOSIVES AND IN PART OF OTHER COMMODITIES. AS TO SUCH A SHIPMENT, IT IS CLEAR THAT THE MINIMUM CHARGE APPLIES ON THE SHIPMENT AS A WHOLE AND NOT JUST TO THAT PART OF IT CONSISTING OF EXPLOSIVES.

THE SHIPMENT IN QUESTION WAS AN LTL SHIPMENT CONSISTING IN PART OF SMOKE POTS AND IN PART OF GRENADES. UNDER THE PROVISIONS OF SECTION 3 OF ITEM 212 AND RULE 140 OF THE GOVERNING MOTOR FREIGHT CLASSIFICATION, A SHIPPER IS GIVEN THE OPTION OF RATING A PART OF THIS SHIPMENT AT VOLUME RATE AND VOLUME MINIMUM WEIGHT AND THE BALANCE OF THE SHIPMENT AT ACTUAL WEIGHT AND LTL RATE OR CHARGE, IF THE AGGREGATE CHARGE UPON THE ENTIRE SHIPMENT IS THUS MADE LESS THAN THE LTL CHARGES OTHERWISE APPLICABLE. IT SEEMS TO BE YOUR VIEW THAT IN RATING THE LTL PORTION OF A SHIPMENT UNDER SECTION 3, SUCH LTL PORTION MUST BE CONSIDERED AS THOUGH IT WERE A SEPARATE SHIPMENT AND A MINIMUM CHARGE APPLICABLE IF IT WERE SO CONSIDERED MUST BE PROTECTED. NEITHER THE LANGUAGE OF SECTION 3 OF ITEM 212 NOR THAT OF ITEM 7028-C SEEMS TO US TO REQUIRE THE CHARGE BASIS IN SECTION 3 TO BE APPLIED IN SUCH ABSTRACT FASHION. NOTHING IN SECTION 3 OR ELSEWHERE EXCEPTS EXPLOSIVES FROM ITS COVERAGE. YOUR VIEW, IF CORRECT, WOULD NEGATE THE PROVISIONS OF SECTION 3 AND RULE 140 AS TO ANY LTL SHIPMENT CONSISTING IN PART OF CLASS A OR B EXPLOSIVES AS THE BASIS WOULD SELDOM, IF EVER, APPLY BECAUSE THE MINIMUM CHARGE FACTOR WOULD MAKE THE TOTAL CHARGE PROHIBITIVE.

THE OBVIOUS PURPOSE OF THE MINIMUM CHARGE PROVISION OF ITEM 7028-C WAS TO INSURE MINIMUM REVENUE, BASED ON 7,500 POUNDS AT THE CLASS 200 RATE, TO CARRIERS FOR THE TRANSPORTATION OF ANY LTL SHIPMENT CONSISTING IN WHOLE OR IN PART OF CLASS A OR B EXPLOSIVES. THE CHARGES COMPUTED HERE, ON THE BASIS OF SECTION 3 OF ITEM 212, EXCEED THE MINIMUM CHARGE BASED ON 7,500 POUNDS AT THE CLASS 200 RATE. THE SECTION 3 CHARGE BASIS, AS WE HAVE APPLIED IT, DOES NOT, THEREFORE, FRUSTRATE THE PURPOSE OF ITEM 7028-C, BECAUSE THE REVENUE EARNED ON THE SHIPMENT IN QUESTION IS GREATER THAN THE MINIMUM CHARGE.

THERE IS NO INDICATION IN EITHER ITEM 212 OR ITEM 7028-C THAT THE MINIMUM CHARGE IS TO BE CONSIDERED AND APPLIED SEPARATE AND APART FROM THE TOTAL REVENUE OTHERWISE ACCRUING ON THE SHIPMENT AS A WHOLE. THE SETTLEMENT HERE WAS CONSISTENT WITH THE TARIFF PROVISIONS IN QUESTION AND IT IS ACCORDINGLY SUSTAINED.