Tariff Changes: Minimum Weight Eliminated on Partial Deliveries From SIT

Note: This is the sixth 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.

Most of the changes we have covered so far have been changes that will alter the calculation of certain billing items. Unlike last year’s changes, there have been fewer changes that directly reduce the amount of money that a TSP can bill for a service.  Unfortunately, the item we are covering today falls into that category. In the 2011 400NG, SDDC has eliminated the 1,000 minimum weight for partial deliveries out of SIT.

In the 2010 400NG, the delivery from SIT item included this section:

SIT Pickup and Delivery charges are subject to the minimum wights as provided for int his tariff, except for pickup or delivery of portions of the shipment, which shall be subject to a minimum weight of 1000 pounds if not otherwise specified.

This was changed in the 2011 400NG as follows:

SIT Pickup and Delivery charges are subject to the minimum weights as provided for in this tariff, except for pickup or delivery of portions of a shipment placed into or removed from storage, which are based on actual weight.

In addition, they added a note to the Reweighs section stating that “Reweigh charges do not apply on partial deliveries from SIT.” Interestingly, in the 2011 400NG Baseline Rates spreadsheet, the minimum weight listed for delivery out of SIT rate is 1,000 pounds, so they did not make an adjustment to the rate tables to match the policy change.

Regardless, the net effect of this change will be reduced income for the TSP on partial deliveries out of SIT. And since almost all of the all of that money is passed on to the agent performing the service, it will further reduce the income of a local agent.

Why do you think SDDC made this change? How much will it affect TSPs and Agents? Please share your opinion in the comments below:

Related Posts

1. Tariff Updates for IS09 - April 13th, 2009
2. Tariff updates – INT and BAG for IS07 - May 1st, 2007
3. I-19 Tariff Updates - November 10th, 2007