Issue link: https://www.e-digitaleditions.com/i/571132
6 FEDA News & Views Industry Insights Freight Class Changes are not a Foregone Conclusion Here's How to Defend Against Them Kevin Brink, ReTrans Freight Director Account Development kbrink@retransfreight.com A nywhere between three and five times per year, the Commodity Classification Standards Board (CCSB) proposes amendments to the National Motor Freight Classification (NMFC). The proposed amendments are published for the public to review at least 30 days in advance of the public meeting, where the modifications will be considered and ultimately accepted, denied or reconsidered for deliberation at a later date. How does this affect FEDA members? Well, the proposed amend- ments the CCSB suggests ultimately lead to changes to a specific com- modity's classifica- tion, which directly impacts a commod- ity's shipping cost. As an example, in September of 2014, the CCSB approved changes to refrigeration and freezing commodities, changing all related items from class 92.5 to class 150. The cost differential between the two classes was an increase of nearly 62 percent on a commodity that nearly all FEDA mem- bers ship. When evaluating commodities in con- nection to the assignment of freight class, the CCSB considers four transportation characteristics: density, handling, stow- ability and liability. After analyzing data from both carriers and shippers regard- ing the aforementioned characteristics, it produces a profile of each commodity and publishes proposed amendments based on its findings in a public docket file. Each docket file contains propos- als to any number of commodities and displays all relevant facts, data and evi- dence supporting the proposed amend- ment. More often than not, the proposed amendments are passed with very little to no contention from the shippers that are affected the most. In the case of the refrigeration/freezer proposal, the CCSB identified 287 potential manufacturers or shippers of refrigerators or freezers and 18 associations believed to repre- sent those companies. Then they sent out questioners in April 2013 and again in May (to non-responders) to make the public aware of the proposed changes, so they could be discussed and/or con- tested at a public meeting. Of the 287 manufactur- ers/shippers, only 13 companies responded. Two of the 18 associations r e s p o n d e d — a n d they responded to notify the CCSB that they did not represent any of the involved com- panies or commodities. As a result, the 62 percent increase in the cost of ship- ping refrigerators and/or freezers went into effect on November 29, 2014, large- ly uncontested. Your Input Matters Anyone, including FEDA members (and vendors), has the power to defend against changes made to the NMFC. All of the information is public and the CCSB provides written forms to those who wish to contest suggested amend- ments. Everyone's input truly does make a difference. In fact, earlier this year, the CCSB was scheduled to consider a proposal to change the classification of dishwashers at its public meeting on January 27, 2015. However, during the continued on page 22 MORE ON FREIGHT @ FEDA.COM FEDA members, to download a pdf of the Freight Class Directory, visit the "Members Only" section at http://www.feda.com/education/freight.cfm and type in your username and password.