A 10,000 Foot View of 2012 Tariff Changes

Note: This article is part of a series on changes to the 2012 400NG and International Tender. (To view the entire series of articles, click here.) 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.

Examining tariff changes is all about the details. A word gets added, a sentence gets deleted, or a comma gets moved; and we scramble to figure out the implications of those little changes. This is necessary because all those words, sentences, and commas are what we need to use to defend the invoices we create.  However, as we conclude our series on the 2012 tariff changes, we want to take a step back and look at the overall trends of this year’s changes:

Some Positives for TSPs  Unlike years past, when we struggled to find any positive changes, there were a number of things that TSPs could like in this year’s tariff changes. The elimination of the 70 percent rule, more flexibility on passing through international customs charges, and an increase in international baseline rates are all things that will help TSPs during this tariff cycle.

No “Major” Changes Some may disagree with this, since any change that affects a TSP directly can be considered a “major” change. However, in comparison with recent years, we felt like the changes in 2012 were not as disruptive as previous years, which is another positive for TSPs.

Alaska Is Confusing The complexity and challenge of correctly billing Alaska shipments continues to cause problems. Between the Fairbanks waterport issue, and the mileage confusion, it seems like nothing is ever simple with Alaska. We expect to see major changes to this area next year, as SDDC seems likely to overhaul the Alaska billing rules.

Simplify, Simplify, Simplify SDDC continues to try to simplify the invoicing process, primarily by basing more of the billing on the planned pickup information rather than the actual shipment results. While this does create some potential problems, they are achieving some consistency and simplicity with this effort.

Timing is Everything The most memorable thing about this tariff cycle may not be the changes made, but the timing with which they were announced. From the initial discussion about what the 45 day notice requires to the delay in rate filing due to late tariff changes, it seemed like the tariff changes were more of a moving target than normal. SDDC has stated some plans to do things differently during next year’s process, in order to get the information out to TSPs sooner.

 What do you think were the overall trends of the 2012 tariff changes? Which changes do you think will have the most impact? Use the comments below to share your opinion:

Related Posts

1. 2012 Tariff Changes To Be Detailed - January 17th, 2012
2. Fairbanks, Anchorage, and the 2012 400NG - January 31st, 2012
3. Change 2 Versions of 2012 400NG & International Tender Posted - February 8th, 2012