B-159419, FEB. 21, 1967

B-159419, FEB. 21, 1967

TO STRICKLAND TRANSPORTATION CO., INC.:

REFERENCE IS MADE TO YOUR REQUEST FOR REVIEW OF OUR SETTLEMENT CERTIFICATE DATED MAY 24, 1966, WHICH DISALLOWED YOUR CLAIM, PER BILL NO. 15931-A, FOR $1,368 AS ADDITIONAL FREIGHT CHARGES FOR THE TRANSPORTATION OF A SHIPMENT OF ROCKET MOTORS WITH COMPONENT IGNITERS AND INITIATORS. THE SHIPMENT MOVED FROM THE AEROJET GENERAL CORPORATION AT NIMBUS, CALIFORNIA, TO THE RED RIVER ARMY DEPOT, DEFENSE, TEXAS, ON GOVERNMENT BILL OF LADING NO. C-1708652 DURING OCTOBER 1964. THE SHIPMENT UNDER CONSIDERATION IS SIMILAR TO A NUMBER OF OTHER SHIPMENTS FROM AND TO THE SAME POINTS AS TO WHICH THE QUESTION OF ALLOWABLE FREIGHT CHARGES IS ALSO RAISED. SEE YOUR LETTER DATED JUNE 29, 1966, IN CONNECTION WITH BILL NO. 1383-A, AMONG OTHERS.

THE SHIPMENT UNDER BILL OF LADING NO. C-1708652 CONSISTED OF 36 BOXES OF JET THRUST UNITS, OR ROCKET MOTORS, CLASS B, TOTAL WEIGHT 39,240 POUNDS, 2 BOXES OF IGNITERS, CLASS A EXPLOSIVES, WEIGHING 190 POUNDS, AND 2 BOXES OF INITIATORS, CLASS C EXPLOSIVES, WEIGHING 52 POUNDS. THE TOTAL WEIGHT OF THE SHIPMENT WAS 39,482 POUNDS, AND YOU ORIGINALLY COLLECTED CHARGES OF $1,400, BASED ON A SECTION 22 QUOTATION (ROCKY MOUNTAIN MOTOR TARIFF BUREAU I.C.C. NO. 16) RATE OF $3.50 PER 100 POUNDS AT A TRUCKLOAD MINIMUM WEIGHT OF 40,000 POUNDS APPLICABLE ON CLASS B ROCKET MOTORS.

YOUR SUPPLEMENTAL CLAIM FOR $1,368 WOULD INCREASE THE TOTAL CHARGES TO $2,768 FOR THE SHIPMENT, APPLYING THE SECTION 22 QUOTATION RATE OF $3,50 PER 100 POUNDS TO THE TRUCKLOAD MINIMUM WEIGHT OF 40,000 POUNDS, PLUS A CHARGE OF $1,368, BASED ON A 7,500 POUND MINIMUM WEIGHT AT THE CLASS 200 RATE FOR THE 190 POUNDS OF IGNITERS AND 52 POUNDS OF INITIATORS. THAT CLAIM WAS DISALLOWED BY THE SETTLEMENT IN QUESTION WITH THE EXPLANATION THAT, ALTHOUGH THE QUOTATION RATE OF $3.50 PER 100 POUNDS APPLIES ONLY ON ROCKET MOTORS CONTAINING A CLASS B EXPLOSIVES DESIGNATION, THE IGNITERS CONTAINING CLASS A EXPLOSIVES AND THE INITIATORS CONTAINING CLASS C EXPLOSIVES ARE PARTS OF THE ROCKET MOTORS AND THE THREE ITEMS CONSTITUTE A COMPLETE ARTICLE, SUBJECT TO THE CLASS B ROCKET MOTOR DESIGNATION. THE $3.50 PER 100 POUND RATE WAS ACCORDINGLY APPLIED TO THE ENTIRE SHIPMENT. YOUR POSITION IS THAT THE QUOTATION RATE OF $3.50 PER 100 POUNDS IS LIMITED TO ROCKET MOTORS CONTAINING CLASS B EXPLOSIVES ONLY, AND WHILE COMPLETE ROCKET MOTORS WERE SHIPPED, THE $3.50 RATE IS NOT APPLICABLE WHEN CLASS A AND CLASS C COMPONENTS ARE INCLUDED.

WE HAVE CONSIDERED THE PROVISIONS OF THE SECTION 22 QUOTATION NAMING THE $3.50 RATE AND THE RECORD FURNISHED BY THE ADMINISTRATIVE OFFICE, AND WE AGREE WITH YOUR VIEW THAT THE IGNITERS, DESIGNATED AS CLASS A EXPLOSIVES AND THE INITIATORS, DESIGNATED CLASS C EXPLOSIVES, SHOULD BE RATED SEPARATELY, SINCE THEY ARE IN SEPARATE PACKAGE IN THE SHIPMENT. HAD THE IGNITERS AND INITIATORS BEEN MADE AN INTEGRAL PART OF THE ROCKET MOTOR SO THAT THE SHIPMENT WOULD HAVE CONSISTED ONLY OF 36 BOXES OF COMPLETELY ASSEMBLED ROCKET MOTORS, WE BELIEVE THAT THE $3.50 RATE, APPLYING ON CLASS B MOTORS, WOULD HAVE BEEN APPLICABLE TO THE SHIPMENT.

WE DO NOT AGREE, HOWEVER, THAT THE FREIGHT CHARGES ON THE 190 POUNDS OF IGNITERS AND 52 POUNDS OF INITIATORS SHOULD BE MADE SUBJECT TO THE 7,500- POUND MINIMUM CHARGE BASIS NAMED IN ITEM 540 OF ROCKY MOUNTAIN MOTOR TARIFF BUREAU FREIGHT TARIFF NO. 20-F. YOU APPARENTLY WOULD TREAT THE SHIPMENT INVOLVED AS TWO SEPARATE SHIPMENTS, APPLYING THE ROCKET MOTOR, CLASS B, RATE ON THE 39,240 POUNDS OF ROCKET MOTORS, AND THE 7,500-POUND MINIMUM WEIGHT CHARGE BASIS ON THE REMAINDER OF THESHIPMENT.

AS NOTED, THE $3.50 RATE IS NAMED IN ROCKY MOUNTAIN MOTOR TARIFF BUREAU QUOTATION I.C.C. NO. 16. THIS QUOTATION (ITEM 20) AND TARIFF NO. 20-F, ARE SUBJECT TO THE RULES AND OTHER PROVISIONS OF NATIONAL MOTOR FREIGHT CLASSIFICATION NO. A-7. RULE 5-5 OF THE CLASSIFICATION DEFINES A ,SHIPMENT" AS A LOT OF FREIGHT TENDERED TO THE CARRIER BY ONE CONSIGNOR AT ONE PLACE AT ONE TIME FOR DELIVERY TO ONE CONSIGNEE AT ONE DESTINATION ON ONE BILL OF LADING. THE SHIPMENT TENDERED IN THIS INSTANCE CONSISTED OF A MIXED SHIPMENT OF CLASS A, B AND C EXPLOSIVES, AND THE MAXIMUM ALLOWABLE CHARGES ARE PRODUCED BY APPLYING THE QUOTATION RATE OF $3.50 TO A 40,000 POUND MINIMUM WEIGHT FOR THE ROCKET MOTORS, PLUS LESS-THAN-TRUCKLOAD RATES APPLIED TO THE ACTUAL WEIGHTS OF THE IGNITERS AND INITIATORS. THE AUTHORITY TO APPLY APPLY TRUCKLOAD RATES ON A PORTION OF THE SHIPMENT AND THE LESS-THAN TRUCKLOAD RATES ON THE REMAINDER OF THE SHIPMENT IS FOUND IN SECTION 3 OF RULE 130 OF THE NATIONAL MOTOR FREIGHT CLASSIFICATION NO. A- 7.

SINCE THE SETTLEMENT CERTIFICATE REFLECTED ALLOWANCE OF $1,400, ON THE BASIS THAT IGNITERS AND INITIATORS WERE INCLUDED AS A PART OF THE TOTAL WEIGHT SUBJECT TO THE $3.50 RATE, IT WILL BE REVISED TO ALLOW SUCH ADDITIONAL CHARGES AS MAY BE DUE ON THE BASIS NOW FOUND ALLOWABLE.