B-165750, FEBRUARY 13, 1969, 48 COMP. GEN. 542

B-165750: Feb 13, 1969

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TRANSPORTATION - RATES - CLASSIFICATION - COMBINATION ARTICLE RULE - AIRPLANE ENGINE MOUNTED ON TRAILER THE WHEELED CARRIER ON WHICH AN AIRPLANE ENGINE IS MOUNTED FOR SHIPPING PURPOSES IS NOT A FREIGHT TRAILER REQUIRING THE ENGINE AND TRAILER TO BE CONSIDERED A COMBINATION ARTICLE SUBJECT TO THE HIGHEST RATED ARTICLE IN THE MIXED PACKAGE. THE WHEELED CARRIER WAS NOT DESIGNED AND IS NOT USED AS A GENERAL FREIGHT TRAILER BUT IS A SHIPPING DEVICE DESIGNED SOLELY TO SUPPORT THE AIRPLANE ENGINE IN TRANSPORTATION. CHARGES OF $340.53 FOR THIS SERVICE WERE ORIGINALLY COLLECTED ON THE BASIS OF THE AIRPLANE ENGINE RATE OF $9.52 PER 100 POUNDS AT THE TOTAL WEIGHT OF 3. PAYMENT OF THE BILL WAS MADE ON AN ARMY FINANCE CENTER VOUCHER DATED JULY 5.

B-165750, FEBRUARY 13, 1969, 48 COMP. GEN. 542

TRANSPORTATION - RATES - CLASSIFICATION - COMBINATION ARTICLE RULE - AIRPLANE ENGINE MOUNTED ON TRAILER THE WHEELED CARRIER ON WHICH AN AIRPLANE ENGINE IS MOUNTED FOR SHIPPING PURPOSES IS NOT A FREIGHT TRAILER REQUIRING THE ENGINE AND TRAILER TO BE CONSIDERED A COMBINATION ARTICLE SUBJECT TO THE HIGHEST RATED ARTICLE IN THE MIXED PACKAGE, THE FREIGHT TRAILER. THE WHEELED CARRIER WAS NOT DESIGNED AND IS NOT USED AS A GENERAL FREIGHT TRAILER BUT IS A SHIPPING DEVICE DESIGNED SOLELY TO SUPPORT THE AIRPLANE ENGINE IN TRANSPORTATION, THEREFORE, MAKING THE SHIPMENT PROPERLY RATABLE AT THE AIRPLANE ENGINE RATE FOR THE TOTAL WEIGHT OF THE SHIPMENT.

TO THE ILLINOIS-CALIFORNIA EXPRESS, INC., FEBRUARY 13, 1969:

IN YOUR LETTER OF DECEMBER 3, 1968, YOU REQUESTED A REVIEW OF OUR SETTLEMENT CERTIFICATE (CLAIM NO. TK-858478), DATED APRIL 15, 1968. THAT SETTLEMENT DISALLOWED ILLINOIS-CALIFORNIA EXPRESS CLAIM, PER BILL NO. 3075 -66-B FOR $154.25 IN CONNECTION WITH A SHIPMENT OF AN AIRPLANE ENGINE, MOUNTED ON A WHEELED CARRIER, TRANSPORTED FROM MCCHORD AIR FORCE BASE, WASHINGTON, TO KIRTLAND AIR FORCE BASE, NEW MEXICO, UNDER BILL OF LADING NO. C-6492995, DATED APRIL 26, 1966.

CHARGES OF $340.53 FOR THIS SERVICE WERE ORIGINALLY COLLECTED ON THE BASIS OF THE AIRPLANE ENGINE RATE OF $9.52 PER 100 POUNDS AT THE TOTAL WEIGHT OF 3,577 POUNDS, AS STATED IN ILLINOIS-CALIFORNIA EXPRESS BILL NO. 3075-66. PAYMENT OF THE BILL WAS MADE ON AN ARMY FINANCE CENTER VOUCHER DATED JULY 5, 1966. IN APRIL 1967 A SUPPLEMENTAL BILL WAS PRESENTED FOR $341.25, ON THE BASIS THAT THE SHIPMENT WAS A "MIXED PACKAGE," CONSISTING OF AN ENGINE AND A TRAILER. FURNISHED IN SUPPORT OF THIS BILLING WAS A NATIONAL CLASSIFICATION BOARD LETTER, DATED MARCH 14, 1957, WHICH CITES RULE 640, SECTION 3, OF THE NATIONAL MOTOR FREIGHT CLASSIFICATION. THIS AUTHORITY, YOU COMPUTE CHARGES OF $681.78 AT A CLASS 200 RATE OF $19.06 PER 100 POUNDS FOR THE TOTAL WEIGHT OF THE SHIPMENT. SUCH CHARGES ARE PREDICATED ON A "MIXED PACKAGE" RULE REQUIRING THE TOTAL "PACKAGE" BE RATED AT THE HIGHEST RATED ARTICLE IN THE PACKAGE. IF APPLICABLE IN THIS INSTANCE THE RULE WOULD REQUIRE TREATING THE WHEELED CARRIER AS A FREIGHT TRAILER EXCEEDING 44 INCHES IN HEIGHT, WHICH IS SUBJECT TO THE CLASS 200 RATING.

RULE 640 WAS FIRST PUBLISHED IN NATIONAL MOTOR FREIGHT CLASSIFICATION NO. A-9, EFFECTIVE SEPTEMBER 21, 1966. THE SHIPMENT IN QUESTION MOVED APRIL 21, 1966. THEREFORE, NO FURTHER CONSIDERATION NEED BE GIVEN TO RULE 640, SINCE IT WAS NOT IN EFFECT ON THE DATE OF SHIPMENT.

ON FEBRUARY 15, 1968, YOUR SUPPLEMENTAL BILL FOR $341.25 WAS ALLOWED IN THE AMOUNT OF $16.73 AND THE BALANCE, $324.52, WAS DISALLOWED. IN THE $16.73 ALLOWANCE CHARGES WERE COMPUTED AT A CLASS 100 RATING AND RATE OF $9.52 PER 100 POUNDS APPLIED TO THE ENGINE WEIGHT OF 3,227 POUNDS AND AT A CLASS 150 RATING AND RATE APPLIED TO THE 350-POUND WHEELED CARRIER, RATING IT AS A FREIGHT TRAILER. IN OTHER WORDS, SEPARATE RATES WERE APPLIED TO THE AIRPLANE ENGINE AND THE WHEELED CARRIER.

YOUR CLAIM FOR $154.25 IS ON THE BASIS THAT THIS SHIPMENT IS A COMBINATION ARTICLE, CONSISTING OF AN AIRPLANE ENGINE AND A FREIGHT TRAILER, AND YOU CITE AS AUTHORITY RULE 100 OF CLASSIFICATION NO. A-8. YOU MAINTAIN THAT THE CLASS RATE APPLICABLE TO THE WHEELED CARRIER, OR TRAILER, IS TO BE APPLIED TO THE COMBINED WEIGHT OF THE TRAILER AND THE AIRPLANE ENGINE. OUR TRANSPORTATION DIVISION IS OF THE VIEW THAT THIS IS NOT A COMBINATION ARTICLE AND THAT THE TRAILER IS A SHIPPING DEVICE FOR THE TRANSPORTATION OF THE ENGINE. THE SETTLEMENT CERTIFICATE OF APRIL 15, 1968, WAS ISSUED ON THAT PREMISE.

YOUR LETTER OF DECEMBER 3, 1968, VOICES THE VIEW OF THE NATIONAL CLASSIFICATION BOARD, AS STATED IN ITS LETTER OF NOVEMBER 25, 1968, THAT: "THE FASTENING OR ATTACHMENT OF THE ENGINE TO THE HANDLING TRAILER DOES CONSTITUTE A COMBINATION ARTICLE AS CONTENDED BY ICX" (ILLINOIS CALIFORNIA EXPRESS). THIS LETTER ALSO REFERS TO RULE 422 OF THE CURRENT NATIONAL MOTOR FREIGHT CLASSIFICATION. HOWEVER, THIS RULE, LIKE RULE 640, WAS NOT IN EFFECT IN APRIL 1966; REFERENCE TO RULE 100 OF CLASSIFICATION NO. A-8 MIGHT HAVE BEEN INTENDED. THAT RULE IN SUBSTANCE PROVIDED THAT COMBINED ARTICLES WOULD BE CHARGED FOR AT THE HIGHEST RATED ARTICLE IN THE COMBINATION, IN THIS INSTANCE, THE WHEELED CARRIER, OR TRAILER, WHICH IS SUBJECT TO THE CLASS 150 RATE.

THE QUESTION TO BE DECIDED HERE IS WHETHER THE TRAILER CONSTITUTING A PART OF THE ARTICLE SHIPPED IS A SEPARATE ENTITY, THAT IS, A FREIGHT TRAILER, OR WHETHER IT IS IN FACT A SHIPPING DEVICE, OR FORM, DESIGNED AND USE SOLELY AS A MEDIUM OF SUPPORT FOR THE AIRPLANE ENGINE DURING TRANSPORTATION AND STORAGE.

OUR BILL OF LADING RECORD AND RELATED PAPERS SHOW THAT THE ENGINE IS A J65WB JET ENGINE, AND THE TRAILER, DESCRIBED IN THE AIR FORCE TECHNICAL MANUALS, IS KNOWN AS AN AIRCRAFT ENGINE TRAILER. THIS TRAILER IS OF ALUMINUM FRAME CONSTRUCTION, AND IS DESIGNED ESPECIALLY FOR A J65 ENGINE. IT IS 97 INCHES LONG, 56 INCHES WIDE AND 41.5 INCHES HIGH. THIS INFORMATION IS SHOWN IN THE AIR FORCE STOCK LIST NO. SL 1700, WHICH LISTS BY BASIC STOCK NUMBER A LARGE SERIES OF AIRCRAFT ENGINE TRAILERS RANGING FROM APPROXIMATELY 270 POUNDS TO MORE THAN 1,500 POUNDS IN WEIGHT.

THE TRAILER IN THIS CASE WEIGHS 350 POUNDS AND THE PICTURE OF THE SHIPMENT IN QUESTION, WHICH APPARENTLY WAS SUPPLIED BY THE CARRIER, SHOWS THAT THE TRAILER CONSISTS SIMPLY OF RAIL-TYPE TOP ON A U-SHAPED FRAME TO WHICH 21-INCH WHEELS ARE ATTACHED. THE BRAKES ARE HAND OPERATED AND APPLY ONLY ON THE REAR WHEELS. THE IMPORTANT POINT IS THAT THIS ARTICLE WAS NOT DESIGNED AND IS NOT USED AS A GENERAL FREIGHT TRAILER. IT WAS DESIGNED SOLELY TO SUPPORT AN AIRPLANE ENGINE; AND OTHER MODELS OF TRAILERS VARY SUBSTANTIALLY, DEPENDANT UPON THE SIZE OF ENGINE FOR WHICH THEY ARE MADE.

THE AIR FORCE PUBLISHES A BULLETIN CALLED TECHNICAL ORDER NO. T.O. 00-85- 20, ENTITLED: ,AIRCRAFT ENGINE SHIPPING INSTRUCTIONS.' PARAGRAPH 1-12A OF THIS BULLETIN STATES THAT THE WORDS: ,SHIPPING DEVICES" APPLY TO TRAILERS, METAL CONTAINERS, ENGINE STANDS OR SKIDS, ENGINE DOLLIES, WOOD BOXES AND TRUCKS. THE "TRAILER" AS USED IN THIS TECHNICAL ORDER OR BULLETIN IS DEFINED AS BEING A LIGHTWEIGHT VEHICLE WITH PROVISIONS FOR LIMITED MOBILITY.

THE IMPORT OF THE FOREGOING INFORMATION IS THAT THE AIR FORCE HAS GROUPED A NUMBER OF ARTICLES INTO A SPECIFIC PURPOSE GROUP DESCRIBED UNDER THE TERM "SHIPPING DEVICES," AND THESE ITEMS ARE DESIGNED AND CONSTRUCTED SOLELY FOR THE PURPOSE OF STORING AND TRANSPORTING ENGINES, EITHER BY AIR OR SURFACE TRANSPORTATION. IN OTHER WORDS, FOR AIR FORCE PURPOSES, THESE ARTICLES ARE GROUPED TOGETHER AS "SHIPPING DEVICES"AND THEY HAVE BEEN ACCEPTED WITHOUT QUESTION BY SOME CARRIERS AS BEING RATABLE AT THE RATING APPLIED TO THE ENGINE. THE METAL CYLINDER CONTAINER IN WHICH VARIOUS TYPES OF ENGINES HAVE BEEN PACKED IS ONE FORM OF SHIPPING DEVICE GENERALLY RECOGNIZED BY THE CARRIERS AS BEING ENTITLED TO THE RATE APPLICABLE TO THE ENGINE WHICH IT CONTAINS. ALL OF THESE SHIPPING DEVICES SEEM TO BE REGARDED AS PACKAGES, OR CONTAINERS, OF ONE FORM OR ANOTHER.

THE CLASSIFICATION AND THE EXCEPTIONS RATINGS PROVISIONS COVERING AIRPLANE ENGINES CONTAIN NO PACKING REQUIREMENTS. PRIOR TO JUNE 1, 1966, RULE 30 OF CLASSIFICATION NO. A-8 OMITTED REFERENCE TO ANY PACKING RULE IN SUCH INSTANCES, THAT IS, WHERE NO PACKING REQUIREMENTS WERE SPECIFIED, EXCEPT AS SHOWN IN SECTION 2 OF THE RULE. THIS SECTION PROVIDES THAT WHETHER OR NOT MINIMUM PACKING REQUIREMENTS ARE OBSERVED, THE OUTER CONTAINERS OR OTHER FORM OF SHIPMENT MUST BE MADE OF MATERIALS OF SUCH STRENGTH AS TO INSURE PROPER PROTECTION OF THE ARTICLE AND THE EQUIPMENT IN WHICH THE SHIPMENT IS TRANSPORTED, AND CARRIERS MAY REFUSE TO TRANSPORT SUCH FREIGHT IF IN THEIR JUDGMENT IT IS NOT REASONABLY SAFE AND PRACTICABLE TO DO SO. WE HAVE NO RECORD OF ANY CARRIER REFUSING TO ACCEPT THE TRAILER-MOUNTED ENGINES FOR TRANSPORTATION.

ON JUNE 1, 1966, IN SUPPLEMENT NO. 15 TO CLASSIFICATION NO. A-8, RULE 30 WAS CLARIFIED BY THE ADDITION IN SECTION 1 (B) OF THE WORDS; "OR IF NO PACKING OR FORM OF ACCEPTANCE IS MENTIONED, THE CLASSES (RATINGS) WILL ALSO APPLY ON THE SAME ARTICLES WHEN LOOSE OR IN PACKAGES.' SECTION 5 OF THE RULE, TITLED "DEFINITION OF TERM -IN PACKAGES,-" DEFINES THE TERM AS MEANING THAT SUCH ARTICLES WILL BE ACCEPTED FOR TRANSPORTATION IN ANY CONTAINER, OR IN ANY SHIPPING FORM OTHER THAN IN BULK, LOOSE OR ON SKIDS, BUT INCLUDING ARTICLES SECURELY FASTENED TO ELEVATING TRUCK PLATFORMS, LIFT TRUCK SKIDS, OR PALLETS, PROVIDING SUCH CONTAINER OR FORM OF SHIPMENT WILL RENDER THE TRANSPORTATION OF THE FREIGHT REASONABLY SAFE AND PRACTICABLE. THUS, BOTH BEFORE AND SUBSEQUENT TO JUNE 1, 1966, THE CLASSIFICATION AUTHORIZES ANY FORM OF SHIPMENT WHEN NO PACKING REQUIREMENTS ARE NAMED IN THE DESCRIPTIVE ITEMS.

IN THE PRESENT CASE, THE ENGINE, AFTER BEING PREPARED FOR TRANSPORTATION BY A PROTECTIVE SHEETING OR WRAPPING, IS SECURELY MOUNTED ON A WHEELED TRUCK MADE SPECIFICALLY FOR THE PURPOSE OF CONTAINING THE ENGINE FOR TRANSPORTATION. AS A SHIPPING DEVICE THE TRAILER DIFFERS FROM A WOODEN BOX, A METAL CYLINDER OR HALF CYLINDER OR A STAND, PRIMARILY BECAUSE OF MOBILITY. STILL, THIS METHOD OF MAKING THE TRANSPORTATION OF THE ENGINE REASONABLY SAFE AND PRACTICABLE WOULD SEEM TO BE INCLUDED IN THE WORDS "IN ANY SHIPPING FORM," AS USED IN SECTION 5 OF RULE 30. IN THE CIRCUMSTANCES IT IS NOT UNREASONABLE TO CONCLUDE THAT SHIPMENTS OF ENGINES, PLACED IN METAL CONTAINERS, OR MOUNTED OR SECURED ON TRAILERS, DOLLIES, OR OTHER "SHIPPING DEVICE," AS DEFINED IN TECHNICAL ORDER T.O. 00-85-20, SHOULD BE RATABLE AT THE AIRPLANE ENGINE RATES FOR THE TOTAL WEIGHT OF THE SHIPMENT.

WE THEREFORE ARE OF THE VIEW THAT THIS TRAILER, DESIGNED EXPRESSLY FOR THE CONVEYANCE OF AIRPLANE ENGINES, IS A PART OF THE PACKAGE TENDERED TO THE CARRIER. SECTION 1 OF RULE 135, CLASSIFICATION NO. A 8, STATES THAT CHARGES ARE TO BE COMPUTED ON THE ACTUAL GROSS WEIGHT, WHICH IS THE WEIGHT OF THE ENGINE AND THE TRAILER. WE BELIEVE THAT THERE IS NO MATERIAL DIFFERENCE IN THE NATURE OF THE SERVICE TO BE PERFORMED IF THE ENGINE IS MOUNTED ON A SPECIFICALLY DESIGNED TRAILER HAVING FOUR WHEELS, OR CONTAINED IN A METAL SHIPPING CYLINDER WHICH IS NOT MOUNTED ON WHEELS, EXCEPT POSSIBLY AS TO THE DEGREE OF DUNNAGE THAT IS REQUIRED TO BE USED IN EACH CASE.

CONSISTENT WITH THE CLASSIFICATION RULES AND OTHER CONSIDERATIONS MENTIONED ABOVE, WE ARE OF THE OPINION THAT THE CHARGES FOR THE SHIPMENT IN QUESTION SHOULD BE COMPUTED AT THE RATE OF $9.52 PER 100 POUNDS APPLIED TO THE COMBINED WEIGHT OF THE ENGINE AND THE CARRIER ON WHICH IT IS MOUNTED FOR SHIPPING PURPOSES. THIS PRODUCES A CHARGE OF $340.53 (3,577 POUNDS AT $9.52 PER 100 POUNDS). SINCE YOUR COMPANY HAS BEEN PAID $357.26, THERE IS AN OVERCHARGE OF $16.73, WHICH SHOULD BE REFUNDED WITHIN 60 DAYS; OTHERWISE, THIS AMOUNT WILL BE COLLECTED BY DEDUCTION FROM A CURRENT BILL FOR FREIGHT CHARGES.