NMFC Changes effective August 15, 2020

by logisticsplus | Aug 18, 2020 | News

In case you missed it, the Commodity Classifications Standards Board (CCSB) has published a new supplement to the National Motor Freight Classification (NMFC®). These changes became effective 8/15/2020.  Some of the notable changes are listed below (thank you for the reminder from our friends at Southeastern Freight).

Boats or Boat Sections – Athletic Goods Group

• New items have been established for Boats, inflatable-24650 and Boats or Boat Sections-24670.
• Items 24540, 24660, 24665, 24666, 25000 and 25230 have been canceled.

Doors, including Mirrored Doors – Building Materials, Miscellaneous, Group 

• The density scale for Item 34265 is going from 8 subs to 10 subs with classes increasing.  Item 34265 has been amended to remove the restriction “other than rolling.”
• Items 34400 and 34500 changed “rolling” to “roll up”.
• Item 34330 has been canceled and moved to Item 34265.
• Item 34267 is amended to included mirrored doors.

Boxes, fiberboard, paper, paperboard or Pulpboard, combined or not combined with other materials

• New Item 29785 is established to incorporate many varieties of fiberboard or paperboard boxes. These will now be full-scale density items.
• Concurrently, Items 28920, 29205, 29240, 29250, 29285 and 29400 are canceled and have been moved to item 29785.

Foodstuffs, other than Frozen

• New items are established 72510 (Cocktail Mix), 72560 (Coconut), 73450 (Honey), 74095 (Molasses and other Syrups), 74310 (Popcorn, not popped), 74495 (Prepared Foods, such as pasta, noodles, rice, etc.) and 75400 (Vinegar).
• Items 72190, 72780, 73200, 74250, 74820, 73480, 74300, 75150 and 75180 are canceled and have been moved to these new Items.
• Additionally, 11 commodities have been removed from the viz listing in Item 73227 and moved to these new Items.

Broilers, Grills, Roasters or Stoves, cooking, outdoor type

• Item 25865 is amended to provide classes predicated on density with breaks at 6 and 10 PCF.
• Item 25860 is canceled with no further application.
• Items 25861, 25863, 25864, 25865 and 25866 have been clarified and simplified.

Bleachers or Grandstands

• The Grandstands Group IT-89800 is canceled.
• New Items 89790 and 89795 have been established to apply for all types of Bleachers and Grandstands with classes based on greatest dimension and density.
• Concurrently, Items 89803, 89805, 89810, 89813, 89816 and 89818 are canceled.

Curtain Poles or Rods

• Item 55190 is amended to a single class of 110.

Self-reactive materials – Hazard Class 4, Division 4.1 – Chemicals Group

• Item 46047 is established for self-reactive materials with classes predicated on whether or not the material is subject to temperature control requirements and by the self-reactive material type for the non-temperature-controlled materials.

Gates

• Item 86310 is amended to provide classes predicated on density, with breaks at 8 and 12 pcf.  It is also amended by adding hallway and stairway gates for clarification.

Cans or Tubes, packaging, fiberboard, paper, paperboard or pulpboard

• New item 29860 is established for Cans or Tubes, mailing or packaging with classes predicated on density with breaks at 4, 6 and 12 pcf.
• Items 29030, 29760, 29820 and 29840 are canceled and moved to Item 29860.

Peanuts, other than raw

• Item 141800 for Peanuts, in shell, is amended to class 85.
• Item 141820 for Peanuts, shelled, is amended to class 70.

Pools, swimming or wading, other than in-ground pools

• Item 17050 is amended for clarification and to provide classes predicated on density breaks at 10 and 15 pcf.

Irons, Electric

• Item 62285 is amended for clarification and simplification, and class 125 is assigned.

Booths, paint and varnish spraying, or panels thereof

• New item 27900 is established for Booths, painting or varnish spraying, with classes based on greatest dimension and density.
• Items 27950, 27960 and 27970 are canceled and have been moved to new Item 27900.

Carriers or Racks, bicycle, motorcycle, motor scooter, mobility scooter or wheelchair, vehicle mounting, metal

• New Item 164075 is established with classes based on density breaks at 8 and 12 pcf.
• Item 164070 is canceled with reference to new Item 164075.

Burners or Burner heads, gas appliance 

• Item 25885 is amended to provide classes predicated on density, with a single break at 9 pcf.

Workbenches

• New item 82250 is established for Workbenches with classes predicated on density breaks at 6 and 10 pcf.
• Items 79920 and 79930 are canceled.

Corrosive Materials – Hazard Class 8

• Item 44155 is amended to assign classes predicated on the DOT-assigned Packing Group.

Cesspools and Floor Drains

• New item 51130 is established for Floor Drains with classes based on a density break at 12 pcf.
• Item 50810 is canceled.

Blackboards or Chalkboards, NOI; Corkboards or Tackboards or Whiteboards, Dry Erase Boards or Markerboards

• Item 23701 is amended to specify additional packaging requirements only.

Pesticides, NOI

• Item 155050 is amended to remove the “bomb burst” symbol, add language further restricting the item’s application to materials not required by the DOT to bear a Hazard Class or Hazard Division label.

Obsolete Items

• Filler, arm rest , Item 18700 is canceled.
• Forms, arm rest, Item 18720 is canceled.

6 Types of Freight Claims and 6 Reasons for Denial

by logisticsplus | Jul 21, 2020 | News

As a freight broker/intermediary, Logistics Plus has no legal liability for loss and damage claims that occur as a result of carrier services we source for our customers; although we do offer to assist our customers with the processing of freight claims. No one likes to deal with missing or damaged goods or filing freight claims, but sometimes it happens. Here are six common types of freight claims.

1. Damaged Claim – If physical damage to your shipment packaging is visible as noted by your consignee on the delivery receipt (or proof of delivery, POD), you can file a damage claim. Typically, you have nine months to submit a claim for visibly damaged goods. With proper evidence, the carrier will most likely refund a portion of your shipping costs. However, you’ll have to pay your freight invoice upfront and get reimbursed for any losses when the claim is processed.
2. Concealed Damage Claim – When damage is concealed, that generally means it isn’t visible until after delivery, which means it was probably not notated on the POD. Concealed damaged claims are harder to prove. Most carriers only allow a five-day window to file a concealed damage claim (some even less based on each carriers’ rules tariff). If more than the allotted timeframe passes before you file, the carrier that handled your shipment will likely deny your claim. Including photos and any other evidence, you have with your claim will increase your odds of getting a partial refund.
3. Shortage Claim – If your shipment shows up with a shortage and the consignee notates it on the POD, you can file a shortage claim. This can happen if the packaging is not intact and freight is missing. It can also happen if the amount of freight delivered doesn’t match what’s printed on the original bill of lading (BOL). Again, you typically nine months to file a claim. Expect to pay your freight upfront and then get reimbursed once the claim has been processed.
4. Concealed Shortage Claim – Like a concealed damage claim, concealed shortage claims occur when a missing product is not noted on your POD, meaning it isn’t visibly evident that you’re short until after delivery. With concealed shortages, the packaging is usually intact, and it’s not obvious that freight delivered doesn’t match freight specified on the original BOL. Concealed shortage claims are difficult to prove, so you’ll often find that carriers push back. As with other concealed claims, time is of the essence. You only have five business days (or less) to file a claim.
5. Refused Claim – Sometimes, a shipment delivers and it’s the wrong freight, the product is damaged, or the shipment is late. Consignees have the right to refuse part or all of shipment if they are unhappy with the condition of their freight. If your consignee refuses the shipment, it’s returned to the carrier’s delivery terminal. The carrier will contact you and ask what you want them to do with your shipment. Your options are to have it shipped back to you, have it sent to another address, or have it disposed of. In most cases, you will not have to pay your invoice.
6. Loss Claim – A loss claim is a worst-case scenario because it means your entire shipment was lost by the carrier. This most commonly happens when shipment paperwork is separated from the freight. When this occurs, the carrier typically has a week to attempt to locate your freight. If they can’t find it, you shouldn’t be charged for shipping.

The carrier must acknowledge receipt within 30 days (49 CFR 370.5). Carriers must pay, decline, or make a firm compromise settlement offer within 120 days after receipt of the claim (49 CFR 370.9). The time period for commencing civil action cannot be less than two years from the date the carrier gives written notice to the claimant disallowing the claim (49 USC 14706e). Since there are legal time limits for filing and processing claims, you must obtain registered mail or other receipts indicating when you filed your claim.

Now that you understand the most common freight claim types, here are six common reasons why freight claims may be denied.

1. Incomplete/Inadequate Documentation – When filing a freight claim, shippers should be sure to follow NMFC minimum documentation requirements.  Probably the most common reason for a claim being denied is because of incomplete information and/or documentation. Logistics Plus offers help as to what documentation should be filed and can assist customers with the filing process.
2. Mitigation – Per NMFC guidelines, it is the responsibility of a shipper to mitigate the costs of a claim to the least amount possible, which essentially means shippers are required to do their part to help minimize financial loss.  Mitigation is usually done by selling the damaged item at a discount, selling it for parts or scrap, or by repairing the item rather than replacing it completely.  If making repairs, the cost of repairing the item would be the amount filed for in the claim.
3. Freight Charges Not Paid – Even if the freight charges are going to be refunded or credited in their entirety¸ per industry guidelines set by the NMFC, the freight charges for a shipment must be paid before a claim can be settled.
4. Pallet/Piece Count – A bill of lading will typically denote having received “x” number of skids/pieces intact (shrink-wrapped/non-shrink wrapped) when a shipper performs their own load and count.  When a carrier doesn’t perform the load and count, it’s considered that the number of skids/pieces tendered to the carrier is the quantity shipped, since they aren’t able to perform a piece count of the broken-down shipment before it was packaged to verify quantity.  For example, a carrier is tendered 2 shrink-wrapped skids comprised of 25 individual boxes on each skid for a total of 50 boxes for the entire shipment, which the shipper shrink-wrapped and loaded onto the truck themselves.  The carrier will likely mark the BOL as having received 2 shrink wrapped skids said to contain 50 boxes.  When both skids arrive at the consignee and a shortage of 1 box is discovered, it’s difficult to prove that the shipment only contained 50 boxes to begin with. The shipper could have packaged the shipment with only 49 boxes by accident.  The only thing the carrier knows for certain is that 2 skids were tendered, and 2 skids were delivered, as there was no opportunity for the driver to verify or count all 50 boxes, especially when skids are already shrink-wrapped when a carrier arrives for pickup.
5. Clear Delivery – Establishing carrier liability without notation of damage on the delivery receipt can be difficult.  In spite of what some shippers may think, writing “Subject to Inspection” on the POD does not serve as sufficient evidence that any specific damage has occurred, because it can create a scenario in which the consignee is the only witness to the discovery of the damage, which leaves reasonable doubt as to who was in possession of the shipment when the damage occurred.
6. Act of God – Carriers are exempt from liability for things like hurricanes, floods, and fires, which are considered an act of God and beyond a carrier’s control.

You should be aware that all freight shipments come with some sort of “limited liability coverage.”  This coverage is determined by the carrier and varies depending on the commodity type or freight class of the goods being shipped (more LTL carriers are going to limited liability by freight class). For the most part, carrier liability covers up to a certain dollar amount per pound of freight.  It is not uncommon to find that the included liability coverage is less than the actual value of the goods being shipped. New goods liability limits generally run between $2 and $10 per pound; while used goods will typically be capped at $0.10 to $0.50 per pound. Also, special commodities also have released-value liability limits. So, if you are shipping a high-value shipment (new or used), you should consider some sort of additional shippers’ interest cargo insurance coverage.

Need freight claims help or are you looking for a freight claims management solution? Contact Logistics Plus – we’re here to help!