FEDA News & Views

FEDASepOct2014

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September/October 2014 23 ©2014 Server Products Inc. th Server Products Made in the U.S.A. NEW – The Beverage Station Easy, efficient dispenser for beverage add-ins. The Beverage Station serves preset portions of dairy and sweeteners, has color-coded branded triggers and holds dairy (below 41°F) without using ice or ice packs. Serve beverages better. beverage-station.com | 800.558.8722 Industry Insights continued try as a whole is estimated to be tens of thousands of drivers short, with some top LTL carriers more than 600 drivers short, carriers can't simply add more capacity (equipment) to the market in order to meet demand and become more profitable. Such limitations are causing them to become more forensic and granular in how they examine and handle freight passing through their system. Note: LTL carriers aren't necessarily implementing any new rules (aside from any new classification guidelines established by the NMFC). Instead, they are now starting to enforce rules that have already been in place. One example of this that everyone needs to pay particular attention to is the enforce- ment of NMFC Rules Item No. 680 ("the 65 percent rule"). This essentially states that any shipment—where the freight on a pallet does not occupy at least 65 percent of the surface area of that pallet—can be rated as a density item. Needless to say, this can impact a number of E&S dealers and manufacturers so it's important to make sure that you cover at least 65 percent of the surface area of a pallet, otherwise something that is an actual Class 55 can end up being re-rated as a Class 125. That's a 105 percent increase in cost so it's important to consider how shipments are leaving your dock or your supplier's dock. The actual verbiage of the rule is as follows: Unless otherwise provided, commodities unitized or secured on lift truck skids, pallets or platforms shall be deemed to be in compliance when occupying not less than 65 percent of the full surface area (deck) of the lift truck skid, pallet or platform. The surface area occupied shall be determined by multiply- ing the greatest straight-line dimensions of length and width of the commodity(ies), including any necessary packaging or vertical bracing, exclusive of banding, strapping or wrap- ping. When less than 65 percent of the surface area of the lift truck skid, pallet or platform is occupied, the gross weight of the lift truck skid, pallet or platform and the commodity(ies) unitized or secured thereon will be subject to the class appli- cable to either the lift truck skid, pallet or platform or the commodity(ies), whichever is higher. Another (perhaps the most important) example to pay attention to is the audit and re-classification of shipments at LTL carriers' terminals. Nowadays, LTL carriers inspect one out of every six shipments that pass through their terminals. A few short years ago, the average was one out of every 14 shipments. LTL carriers have dedicated departments at each terminal whose sole purpose is to check the description on the Bill of Lading (B/L), match it up with the actual commod- ity that was shipped and perform a thorough inspection that includes weighing the shipment and calculating footage and density. Having a proper classification and description on the B/L is imperative to protecting yourself from inflated and unexpected freight costs, which can wipe away the profit- continued on page 28

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