B-180131, OCT 2, 1974

B-180131: Oct 2, 1974

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WHERE SHIPMENTS ARE ROUTED BY THE GOVERNMENT AND NO RATE IS INSERTED IN THE BILLS OF LADING. THE GOVERNMENT IS ENTITLED TO HAVE THE SHIPMENTS MOVED OVER THE CHEAPEST ROUTE CONSISTENT WITH THE ROUTING INSTRUCTIONS. A SECTION 22 QUOTATION PROVIDING RATES TO A MILITARY INSTALLATION IS APPLICABLE ON SHIPMENTS DELIVERED TO A NEW BOMB AREA ACTUALLY COMPRISING A PART OF SUCH INSTALLATION. EVEN THOUGH THE DELIVERY INSTRUCTIONS DIRECTING UNLOADING AT SUCH AREA ON THE BILL OF LADING MIGHT BE CONSIDERED AMBIGUOUS AND SUSCEPTIBLE OF AN INTERPRETATION THAT THE DESTINATION IS OUTSIDE THE INSTALLATION. BOOSTER EXPLOSIVES AND EXPLOSIVE BOMBS ARE BOTH INCLUDED WITHIN THE GENERIC DESCRIPTION OF CLASS A EXPLOSIVES.

B-180131, OCT 2, 1974

WHERE SHIPMENTS ARE ROUTED BY THE GOVERNMENT AND NO RATE IS INSERTED IN THE BILLS OF LADING, THE GOVERNMENT IS ENTITLED TO HAVE THE SHIPMENTS MOVED OVER THE CHEAPEST ROUTE CONSISTENT WITH THE ROUTING INSTRUCTIONS. A SECTION 22 QUOTATION PROVIDING RATES TO A MILITARY INSTALLATION IS APPLICABLE ON SHIPMENTS DELIVERED TO A NEW BOMB AREA ACTUALLY COMPRISING A PART OF SUCH INSTALLATION, EVEN THOUGH THE DELIVERY INSTRUCTIONS DIRECTING UNLOADING AT SUCH AREA ON THE BILL OF LADING MIGHT BE CONSIDERED AMBIGUOUS AND SUSCEPTIBLE OF AN INTERPRETATION THAT THE DESTINATION IS OUTSIDE THE INSTALLATION. BOOSTER EXPLOSIVES AND EXPLOSIVE BOMBS ARE BOTH INCLUDED WITHIN THE GENERIC DESCRIPTION OF CLASS A EXPLOSIVES; AND WHERE BOTH SUCH COMMODITIES MOVE IN A SINGLE SHIPMENT THEIR COMBINED WEIGHTS ARE INCLUDED IN APPLYING THE TRUCKLOAD MINIMUM WEIGHT FACTOR.

WELLS CARGO, INC.:

WELLS CARGO, INC., REQUESTS REVIEW OF THE ACTIONS OF OUR TRANSPORTATION AND CLAIMS DIVISION IN THE SETTLEMENT OF THREE CLAIMS, TK-902191, TK- 916962, AND TK-940214.

THE FIRST CLAIM, NUMBER TK-902191, INVOLVED A SHIPMENT OF ONE PALLET OF BOOSTER EXPLOSIVE AND SEVEN PALLETS OF EXPLOSIVE BOMBS WEIGHING TOGETHER 14,860 POUNDS AND TEN PALLETS OF BOMB FIN ASSEMBLIES WEIGHING 14,840 POUNDS WHICH MOVED FROM THE NAVAL AMMUNITION DEPOT, HAWTHORNE, NEVADA, TO THE NAVAL AUXILIARY AIR STATION, FALLON, NEVADA, UNDER GOVERNMENT BILL OF LADING (GBL) D-1063215, DATED MAY 5, 1969. THE CARRIER COLLECTED TOTAL TRANSPORTATION CHARGES OF $290.50 BASED ON A TRUCKLOAD RATE OF 83 CENTS PER 100 POUNDS, MINIMUM WEIGHT 35,000 POUNDS.

IN SETTLEMENT OF THE CARRIER'S SUPPLEMENTAL BILL FOR $216.23, IT WAS DETERMINED THAT THE BOMB FINS WERE NOT TENDERED AS COMPONENTS OF THE EXPLOSIVE BOMBS AND ADDITIONAL CHARGES OF $179.56 WERE ALLOWED BASED ON A RATE OF $1.21 PER 100 POUNDS FOR THE BOMB FINS. THE CARRIER'S REQUEST FOR REVIEW OF THIS SETTLEMENT DOES NOT REFLECT THE ALLOWANCE OF THIS AMOUNT.

THE DISALLOWED PART OF THE CLAIM REPRESENTS CHARGES CLAIMED FOR THE ONE PALLET OF BOOSTER EXPLOSIVE, THE WEIGHT OF WHICH WAS INCLUDED ALONG WITH THE WEIGHT OF THE EXPLOSIVE BOMBS IN APPLICATION OF THE 35,000 POUND TRUCKLOAD MINIMUM WEIGHT. BOTH ITEMS ARE CLASS A EXPLOSIVES. THE CARRIER CITES NO AUTHORITY PRECLUDING SUCH APPLICATION AND WE ARE NOT AWARE OF ANY. THE SETTLEMENT ACTION TAKEN BY THE TRANSPORTATION AND CLAIMS DIVISION ON THIS CLAIM IS SUSTAINED.

THE SHIPMENT IDENTIFIED IN CLAIM TK-916962 CONSISTED OF TWO TRUCKLOADS OF EXPLOSIVES WHICH MOVED FROM THE NAVAL AMMUNITION DEPOT, HAWTHORNE, NEVADA, TO MARINE CORPS AIR STATION, EL TORO, CALIFORNIA, UNDER GBL D-1064028, DATED OCTOBER 1, 1969. THE GBL ROUTING BLOCK SHOWS THE FOLLOWING ROUTE: "WELLS CARGO INC % WEST TRANSPORTATION INC." THE CARRIER COLLECTED TOTAL TRANSPORTATION CHARGES OF $1,183.80 ON BILL NO. N-2447, GOVERNMENT VOUCHER 4212 DATED FEBRUARY 25, 1970. IN THE AUDIT OF THE PAYMENT VOUCHER IT WAS DETERMINED THAT THERE WAS AN OVERCHARGE OF $209.80 BASED ON A RATE OF $1.25 PER 100 POUNDS, MINIMUM WEIGHT 40,000 POUNDS. THE OVERCHARGE WAS DEDUCTED FROM CARRIER BILL NO. N-2630, GOVERNMENT VOUCHER NO. N-4397 DATED AUGUST 30, 1971.

THE CARRIER'S SUPPLEMENTAL BILL FOR $2,863.88 WAS ALLOWED IN THE AMOUNT OF $322.49. THE CARRIER BASES CHARGES ON THE THROUGH RATE IN ROCKY MOUNTAIN MOTOR TARIFF BUREAU TARIFF 7-C, MF-ICC 186. HOWEVER, ITEM 9900 OF THAT TARIFF PROVIDES THAT THE TARIFF ONLY APPLIES OVER THE ROUTES AND TRANSFER POINTS SPECIFIED AND NO ROUTE IS LISTED FOR JOINT TRAFFIC BETWEEN WELLS CARGO AND WEST TRANSPORTATION COMPANY.

WHERE SHIPMENTS WERE SPECIFICALLY ROUTED BUT NO RATE IS INSERTED IN THE BILL OF LADING, THE SHIPPER IS ENTITLED TO HAVE ITS SHIPMENTS ROUTED OVER THE CHEAPEST ROUTE CONSISTENT WITH THE INSTRUCTIONS. CENTRAL PENNSYLVANIA LUMBER CO. V. BUFFALO & S.R.R., 52 ICC 329 (1919). FOR THIS SHIPMENT, IT WAS DETERMINED THAT THE PROPER CHARGES SHOULD BE BASED ON A COMBINATION OF RATES OVER BRIDGEPORT, CALIFORNIA. THE CARRIER'S CLAIM WAS PROPERLY DISALLOWED.

THE SHIPMENT IDENTIFIED IN CLAIM TK-940214 CONSISTED OF TWO TRUCKLOADS OF ROCKET MOTORS WHICH MOVED FROM THE NAVAL WEAPONS STATION, CONCORD, CALIFORNIA, TO THE NAVAL AMMUNITION DEPOT, HAWTHORNE, NEVADA, UNDER GBL F- 5446446, DATED DECEMBER 1, 1970. THE CARRIER COLLECTED TOTAL TRANSPORTATION CHARGES OF $1,356.35 ON BILL NO. N-2528, GOVERNMENT VOUCHER NO. 05335 DATED MARCH 17, 1971.

THE CARRIER CONTENDS THAT ITS INITIAL BILLING WAS UNDERSTATED BY $1,558.78 BECAUSE THE INITIAL CHARGES WERE BASED ON DELIVERY TO THE NAVAL AMMUNITION DEPOT, HAWTHORNE, NAVADA, WHEN DELIVERY WAS ACTUALLY MADE TO THE NEW BOMB AREA, WHICH THE BILL OF LADING STATES IS 25 MILES BEYOND THE NAVAL AMMUNITION DEPOT PROPER. THE CARRIER REASONS THAT SINCE THE DEPOT IS LESS THAN 25 MILES WIDE, DELIVERY MUST HAVE BEEN MADE ELSEWHERE AND THE SPECIAL QUOTATION FOR THE DEPOT DOES NOT APPLY.

THE NAVY HAS CONFIRMED THAT THE NEW BOMB AREA IS WITHIN THE AREA DESIGNATED AS THE NAVAL AMMUNITION DEPOT. THE CONSIGNEE'S CERTIFICATE OF DELIVERY INDICATES THAT THE SHIPMENT WAS RECEIVED AT THE DEPOT. SECTION 7, RMMTB QUOTATION 14B NEITHER SPECIFICALLY NOR BY NECESSARY IMPLICATION PRECLUDES APPLICATION OF THE CONCORD - HAWTHORNE NAD RATE ON SHIPMENTS CONSIGNED TO THE NEW BOMB AREA. THE SETTLEMENT DISALLOWING THE CARRIER'S SUPPLEMENTAL BILL WAS CORRECT, AND IS SUSTAINED.