How would you like to save 10% on your transportation spend?
One of the easiest and quickest ways is to do a classification study. Pricing and rating under the NMFC classification requires a high degree of expertise for accurate application to insure proper pricing. “There are many users who simply lack any concept of how classes come about and how NMFC provisions are to be applied,” says Joel Ringer, Chairman, CCSB.
FAK rates will lower carrier’s liability and reduce the amount paid for claims to shippers. When was the last time you did a classification study?
Here are some examples of new rules tariff changes that will drive up cost:
Carrier Liability March 10, 2008
· Carrier's liability will be the same as that of the FAK class, Exception class or class reduction., i.e., a class 125 reduced to an FAK or Exception class 70 will be subject to the Maximum Value per pound per package for class 70.
· There is no excess liability coverage available for published FAK (Freight of All Kinds) class or Exception class pricing referring to this item.
· THE UPS SERVICE GUARANTEE September 2, 2008
o Refunds or credits will not be issued for UPS Ground and UPS Standard to Canada shipments picked up or scheduled to be delivered on Dec. 1 through Dec. 31. (This used to be 14 days before Dec. 25. - applies on September 2, 2008)
o An additional handling charge will not be assessed to packages qualifying for a large package surcharge. (This no longer applies as of September 2, 2008)
o EFFECTIVE SEPTEMBER 2, 2008: Transportation charges do not include other fees or charges that may be assessed by UPS, including but not limited to, fuel surcharges.
These or other changes may impact your pricing and liability.
Hank Mullen is a recognized expert on benchmarking small package, LTL and Truckload supply chain cost. He has been cited by many industry experts and published in Bohman on Pricing, American Shipper, Logistics Management, WERC, D C Velocity, Parcel Distribution, and Outsourced Logistics. Hank is a frequent speaker at industry seminars. Hank has over 41 years experience in the transportation industry, including in-depth expertise of freight classifications and the sun-setted ICC, NMFTA, NCC, (now CCSB), NMFC, DOT, and Surface Transportation Board. Hank is a member of CSCMP, NITL, NASSTRAC, IFTLC (Board Member) and OOIDA, OFDA and the Atlanta Transportation Club.
We have a limited time offer to review your rules tariffs, pricing tariffs and NMFC classification for a flat fee of $5,000 (plus expenses) per distribution center. Please contact lguess@thevisibilitygroup.com or aorr@thevisibilitygroup.com to place your reservation.
