Q:Why did the HGCB Committee propose a new approach to household goods carrier pricing?
A: Tariff 400-N answered several needs. It established a more rational industry pricing
mechanism; it made estimating and pricing an interstate shipment easier for customers to understand;
and it made the estimating and pricing process simpler, less time consuming, and less expensive for
the mover.
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Q:How is Tariff 400-N easier to understand and price?
A: As digital information, Tariff 400-N resides on a PC, laptop computer, or networked
computer system, including the Internet. With just a few keystrokes, an estimate or bill can be
calculated instantly. For example, linehaul transportation rates no longer require someone to
calculate mileage from origin to destination—a process that is time-consuming, especially if one
or more points are not key points, i.e., major cities. Tariff 400-N requires only the weight of
the shipment and the first three digits of the ZIP or postal codes for the origin and destination
to instantly determine linehaul charges.
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Q:How are rates for accessorial (additional) services determined?
A: To simplify pricing for the customer and carrier, Tariff 400-N eliminates the need to
separately charge for certain frequently occurring accessorial services. Instead, the average costs
and revenue associated with these accessorials are incorporated into a separate origin and
destination service charge.Specifically, rates associated with ATC (additional transportation charges),
e.g. elevators, stair carries, long carries, piano/organ carries, appliance service, and
import/export charges, are incorporated into a service charge for origin or destination.
The mover and customer no longer discuss charges based upon counting flights of stairs,
measuring the distance from the truck to the residence, or counting the number of elevators used.
In addition, the customer is not surprised by a charge at destination that was unknown by the
estimator at origin. Of course, some accessorial services have been retained because
they are difficult to incorporate fairly into averaged rates. These include charges
related to storage-intransit (SIT), pickup and delivery from IT, shuttle service, bulky articles,
extra labor, packing and unpacking. The application of these accessorial services has been
simplified as much as possible. The chance for error has also been reduced, and the estimating,
billing and auditing problems associated with these individual accessorials have been totally
eliminated.
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