Tariff Changes: Code 2 Added to Domestic Program

Note: This is the third in a series of posts on the changes in the upcoming 2011 400NG and the 2011 International Tender. Please note that these articles are not intended to cover every change made, so TSPs still need to read the tariffs prior to filing rates. Also, these posts are based on our own interpretation of the tariffs, and we cannot guarantee that our interpretation will always be shared by SDDC, the PPSOs, or GSA.

In the 2011 400NG, SDDC added an additional code of service to the domestic program, Code 2 for containerized service. This code of service existed in the pre-DP3 program, and SDDC has made the decision to bring it back for 2011 in an attempt to generate some extra capacity during the upcoming peak season.

There is very little actual information in the 2011 400NG about Code 2 shipments. There is an announcement of the addition “subject to the same rules and regulations applicable to DOD shipments documented in the Defense Transportation Regulation, Part IV and this tariff”, and then there is a definition: “Movement of Household Goods in a Container from origin residence in CONUS to destination residence in CONUS.”

It was not the definition of Code 2 that has caused concern,but the accompanying change to the defintion of Code D, which was changed to read (emphasis added) “Movement of Household Goods in a Motor Van from origin residence in CONUS to destination residence in CONUS.” In the previous versions of the 400NG, Code D was defined as (emphasis added) “ Movement of Household Goods in a Motor Van or Container from origin residence in CONUS to destination residence in CONUS. The actual mode of service is at the discretion of Transportation Service Provider at no extra cost to the shipper.”

This definition change seems to indicate that shipments booked as Code D would no longer be able to be containerized at the TSPs discretion, which would limit the TSP’s flexibilty and likely reduce some capacity in the summer peak season. It is not clear if that was the intent of SDDC, and it is possible these definitions will be revised in an update to the 2011 400NG.

The rest of the 400NG is silent on Code 2, which has caused many TSPs to seek further details about Code 2 shipments. It appears the intention is to treat them the same as Code D from an operational and billing point of view, just with a different discount filed during rate filing. Many TSPs have expressed a desire to know the expected amount of shipments that will move as Code 2′s, but it is not clear if SDDC could accurately predict that percentage.

There have also been suggestions that the addition of Code 2 opens the door for portable storage containers, such as the ones used by PODS and some other van lines, for use in the military program. However, it appears that SDDC Pamphlet 55-12 still governs the acceptable usage of storage containers for household goods moves, and those portable storage units are not currently on the List of Approved Containers.

There are still a lot of questions concerning Code 2 in the 2011 400NG. We have heard that the recent delay in the rate filing schedule was  to give the developer extra time to do the programming necessary for DPS to handle Code 2 rate filing, but it might also give TSPs some extra time to get answers to their Code 2 questions.

Do you have unanswered questions about Code 2 shipments? Please share them using the comment form below.

Related Posts

1. Domestic Tariff changes effective 11-01-06 added to AccuBill - November 7th, 2006
2. International Tariff changes effective 10-01-06 added to accubill - October 13th, 2006
3. Tariff Changes: Delivery Out of SIT Mileage Based on Block 18 - January 13th, 2011