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 Saturday, February 20, 2010

Please note additional changes (underlined), which further define actions to be taken under these revised rules. Previous changes issued in May 5, 2005 and August 14, 2005 are retained and are in italics.

The U. S. Department of Transportation Federal Motor Carrier Safety Administration initiated substantial revisions of the regulations as applies to individual shipping of Household Goods in Interstate Commerce.  The intent of the revisions is to prevent movers from unfairly raising rates and charges for the move after an agreement to cover those services has been signed. This Bulletin outlines the updated Consumer Protection Regulations for Interstate Transportation of Household Goods, and will cover:

• Scope of regulations
• Added quantities & services
• Other issues – documents, weights, etc.

Estimates & Scope – All Interstate Movers

• transportation charges, regardless of tariff application. The balance of the regulations as applies to these revisions also applies to Individual Shippers.
• Must specify form of payment - on both Orders for Service (O/S)  & Bills of Landing (B/L)
• Billing for additional quantities/services not shown on the Estimate must not be presented for 30 days following delivery
• Written estimates must be based on visual inspections if located within 50 miles of the Branch or Agent location. The customer may waive this requirement if done so before the shipment is loaded. Any waiver must appear in writing on the Estimate. The Order for Service should be noted as follows:  “Shipper waives the requirement for a visual survey of the items to be moved”.

New Form

The DOT pamphlet “Ready to Move” must be given to the customer at the time of the estimate.  Also, carrier must provide customer Your Rights & Responsibilities booklet before execution of the Order for Service.

Arbitration Program: The threshold has been raised to include cargo claims and billing disputes in amounts up to $10,000 and is binding on the carrier. A revised arbitration brochure must be provided to every shipper at the time of the estimate.

Telephone Surveys

• Considered same as an Estimate; must be provided in writing – signed by the shipper and the mover.  They are subject to 110% rule.  See visual waiver and inspection provision above.

The biggest change in the Regs is where the original agreement for items to be moved and services to be performed has changed since the original O/S was signed.  Those are covered as follows:

Revised Estimate Before Loading - If additional quantities/services are requested or required, you should:

• Negotiate a revised written Estimate, (Strongly recommended whenever there is substantial difference in scope of work), or
• Reaffirm the Original Estimate, (No substantial change in cost is anticipated), or
• In the case of a Binding Estimate, reach agreement with the shipper in writing, that the Original Binding Estimate will be considered a non-binding estimate. (Not recommended).

Important Note: Whenever a change in weight or scope of work occurs, it is necessary for the service provider performing the work (usually the driver) to immediate notify the Booker so the revised Estimate or Addendum can be completed.  Failure to do so may impede the ability of the van line to collect for legitimate services.

Key Points – For Surveys and Estimates

• Must have complete scope of work - List all articles going & all services
• Itemize cost of any reasonable expectation of services that may be required not currently included
• Details- Items & services not included  - Include articles to be disposed of
• Destination questions??? Key Concerns   (Shuttle, Gated, Mini Storage, Extra Stop, Etc.)

Added Services Requested By Shipper After Loading – Once goods are ”In Transit”, (i.e. Loading has started in any way) and the shipper requests additional items to be moved or added services:

• You must inform shipper that added charges will apply and the cost of those services
• The shipper must be notified, and have at least 1 hour to decide if he wants the added services
• Accomplish a written Addendum
• Payment for services for items not on the original estimate and requested by the customer may be collected at time of delivery subject to the payment at delivery conditions noted below.
• Proper completion of Addendum is necessary in order to pursue collection

 

We attach a sample Addendum & Change Order that will need to be used if this occurs. 

 

Added Services Necessary For Delivery

• If shipper agrees, must be supported by written signed Addendum
• If shipper does not agree, you should still perform the service necessary to accomplish delivery
• In either case, billing will be as noted below

 

Collection Provisions Major Change in Regulation– At time of delivery we are permitted to collect -

• 100% of the binding estimate amount or 110% of the non-binding estimate amount, plus
• Charges applicable for any added services (e.g. waiting time, extra pickup or delivery, storage-in-transit) requested by the shipper after the contract has been executed that were not included in the estimate, and
• In the event that shuttle service is required, you may also collect for the shuttle charges at delivery - provided that the shuttle charges collected at delivery do not exceed fifteen (15%) percent of the total charges due at delivery.
• Any remaining charges are billed to the shipper - and it is these additional charges that are billed to the shipper (and not collected at delivery) that would be subject to arbitration in the event of a dispute.
• Remaining charges are to be paid by the customer within 30 days.  This cancels the previous requirement that we defer billing balance 30 days for Required Added Services to effect delivery, Charges in excess of 110%, and Shuttle or other service in excess of 15% of total bill

Note on Collections: Under the revised rules, we see an increased level of post-move activity involving collection.  Of the files reviewed, more than 60% would have been resolved with the collection of 110% of the non-binding estimate at destination.

 

Valuation: All shipments must be transported at Full Value Protection. The shipper can waive this only in writing by selecting $.60/lb/article. In the event the shipper fails to select FVP or $.60/lb,, the valuation will default to FVP.

 

Penalty Provisions - Most Important - We cannot withhold delivery from a shipper if the above collection provisions are met.  Withholding delivery or services would be construed as a willful violation of the rules, and may subject the offending party to severe monetary penalties and sanctions.

 

Orders for Service

• Form of payment that will be honored at delivery (must be same as shown on Estimate)
• Must include any expectation that Additional Services will be required
• Dates or spreads & per-diem required
• Minimums, of applicable, required
• Reasonable expectation Additional Services should be included on the O/S

Bills of Lading

Must include all former information, plus: Indicate form of payment honored at delivery (must be same as shown on Estimate & Order for Service)

 

Shipment Weights

• 49CFR Part 375 (507 & 519) still applies - Certified scales are required for all shipments
• Up to 3000# on certified warehouse scales
• Shipper must have opportunity to observe all weights
• May request re-weigh with charges based on re-weigh weight
• Waiving right to observe re-weigh must be in writing by shipper

 

Orders for Service and Bills of Lading have been reviewed and changed as necessary to comply with the requirements.

 

For more information on these rules, please contact the AMSA website at www.promover.org