26 Jul 2019
During the National Motor Freight Traffic Association’s (NMFTA) public meeting in June 2019, the Commodity Classification Standards Board (CCSB) eliminated NMFC Item (Rule) 171—known as the “Bumping” Clause—and all notes for classifications referencing the Item. Item 171 permitted shippers to increase an LTL shipment’s density (by artificially increasing weight), thereby lowering a shipment’s class for rating purposes. Although “bumping” was not applicable in situations where the added artificial weight would not have resulted in cost savings, it was a rule that shippers could have implemented for cost savings in various ways. Imagine the impact of adding a few extra pounds on the bill of lading, thereby increasing the density, and resulting in a lower rating class. Moreover, if the lower class obtained from bumping fell within a pricing freight all kinds (FAK) scale, it would result in an even lower class and even greater cost savings.
The bottom line is, it is critical for shippers to understand the NMFC rules and their impacts on transportation budgets. Partner with AMTR and let us put that same knowledge to work for your company by discovering overcharges, recovering freight dollars and educating
your team on similar cost saving rules.