FMCSA Requirements For Interstate Household Goods Movers

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    Complying with the
   Consumer Regulations

     FMCSA Requirements For
Interstate Household Goods Movers
  David Hauenstein – AMSA Vice President
 Compliance Services & Government Affairs
                 Outline for Today

 Current Interstate Regulations & Requirements

 NEW Valuation Documentation and Procedures

 Tariffs & the Loss of Antitrust Collective Immunity
                    Requirements for
                    Interstate Movers
 Insurance (AMSA suppliers/venders)
 Process (Statutory) Agents
 Tariff & provide Notice of Tariff Availability (Pg 9)
 Observe Released Rates Orders (prescribe valuation)
 49 CFR 375 Consumer Regulations
 “Ready to Move” brochure
 “Rights and Responsibilities” brochure
 Distribute Arbitration Program information
 Summary of Complaint & Inquiry Procedure (Pg 9)
               Required Documentation

 Written Estimates – binding or non-binding, before
    Order for Service is executed
   Must observe 110% Rule – no hostage shipments
   Some provide customers “hybrid” estimates
   Must be based on physical survey if goods are located
    within 50 miles of place of business (shipper may waive
    requirement but must do so in writing) (Pg 4)
   Charges on shipments rated under non-binding
    estimates must be based on weight NOT volume or
           Required Documentation

 Order For Service - written agreement between
  the COD shipper and the mover that authorizes
  the carrier to move the shipper’s goods
 Must include basic shipment information,
  including pickup & delivery dates and form of
  payment honored at delivery
 Not a contract, but a supporting document to the
  Bill of Lading
             Required Documentation

 Inventory – detailed listing of the count and
  condition of the goods to be shipped
 Prepared at loading & shipper must have
  opportunity to verify count & condition both at
  origin & destination
 Used as receipt of acceptance of the goods by
  the carrier / shipper
            Required Documentation

 Bill of Lading – the receipt for the goods and the
  contract for their transportation
 Lists the dates, services and charges that will
  apply for the shipment
 Contains the valuation options for the shippers
  selection (may be contained on Order for Service
  as option)
              Required Procedures

 Weighing & Weights – performed at Certified
  Scale by Weigh Master; weight tickets to
  accompany final invoice; shipper may request
  reweigh & must waive his right to observe the
  re-weigh weighing in writing (Pg 5)

 Claims – acknowledge within 30 days & provide
  disposition with 120 days
          Released Rates - Valuation

 All movers are required to assume liability for the
  value of the goods they transport
 The levels of liability are prescribed by the
  Released Rates Orders
           Valuation is NOT ‘Insurance’

 Contractual limit of liability
 Subject to Carmack conditions
 Prescribes nature and extent of carrier liability
 Governed by federal Released Rates Order – not
  by state insurance board.
           Under the Oversight Enforcement
                & Reform Act of 2005
                          (Effective 01-01-06)

 FVP level of liability “automatically” applies, subject to
  the tariff valuation charges
 If shipper wishes to avoid these charges, he must
  specifically release shipment to 60-cent level of liability
 Shippers failure to declare alternative level means FVP
  level and your tariff valuation charges apply
 The High Value Option also remains
          In 2007 STB proposed changes
            to the Released Rates Order

STB proposed three MAJOR changes –
1. Initial Cost Estimate must include FVP level of
     Can also provide a second estimate based on 60 cents to
       show the difference
2. Any waiver of FVP liability must be
   accomplished on separate document
3. Amounts ($4.00/4.90 & $5,000) be adjusted for
                   What We Asked For

 Agreed with spirit of revisions to reduce shipper confusion
  & to provide cost estimates that include FVP as standard
 Did not support mandatory separate Valuation Statement
  for released rates shipments; instead suggested simplified
  Valuation Statement (for O/S, B/L or optional separate
 Also recommended resetting the Valuation Levels and
  associated charges ($4.00/4.90 to $6.00 and $5000 to
                     What We Got
           (first scheduled to be effective 04/01/2011)

 FMCSA mandated new expanded Valuation
  Clause (in 12 point type)
 Valuation clause must be on Estimate Form
 Initial estimate must include FVP / second
  estimate based cost 60 cent protection at lower
 Increased minimums are $6.00 per pound /
  $6,000 per shipment
         What It Will Mean If It Stands

 Documentation will have to be revised and
 Sales people will have to be informed and
  diligent in completing paperwork
 Valuation clauses on Order for Service and / or
  Bill of Lading are no longer required
 Estimate becomes an Addendum to the Bill of
          What We Petitioned For . . .

 Compliance date should be November 1, after
  moving season (this was granted)
 Carriers should be able to customize clause for
  ease of computerization
 Wording should be “in English” with summary on
  Estimate and full terms on B / L or O / S
 Bill of Lading is contract, so disclosure clause
  should be on B / L (or referenced if on O / S)
                  Why Its Important . . .
 Carmack Amendment – carrier may limit its
  liability subject to written declaration of the
 Four Part Test – Anton v. Greyhound Van Lines
  1.   Must maintain a tariff
  2.   Must give shipper reasonable opportunity to
       choose between 2 or more levels of liability
  3.   Must obtain shipper’s declaration of choice
  4.   Must issue bill of lading (receipt) that reflects such
                     591 F.2d 103 (1st Cir. 1978)
                   CHANGES in
   Collective Ratemaking and Antitrust Immunity
Terminated in 2007 by Surface Transportation Board
           No More Collective Immunity

 Household goods carrier must publish their rates in a
  tariff (ICCTA § 13702)
 Longstanding Ratemaking Agreement terminated as of
  December 31, 2007
 Change means 70 years of Bureau Tariffs came to an
 The 2300 former participating carriers must publish their
  own individual tariffs
            Charges for the Services You
           Provide Should be in Your Tariff

 Packing, Unpacking, Cartons
 SIT and SIT Pickup & Delivery
 Guaranteed P & D
 Shuttle Service
 Valuation
 Seasonal (Peak Season) rates & any Annual Increases
 Any other rates, charges, service provisions (in
  compliance with FMCSA, STB regulations).
   For more Information – Log on to
           A New Way of Doing Business

 Will likely not be able to base your estimates on your
  competitor’s bids
 No more common benchmark rate levels
 Instead . . .

      More emphasis on understanding costs of operation
       and budgets
      May be more difficult to price on a competitive basis –
       instead may want to place more emphasis on cost-
       based pricing
                      Antitrust Concerns

 Beware of antitrust challenges
 Do not formally or informally agree with any other carrier
  on how to conduct business or apply your charges
 Don’t discuss –
      Prices, rates, costs, or service volume or capacity
      Dividing up customers, geographic areas or contracts
      Wages & salaries, O/O compensation or supplier prices
      Refusing to deal with certain customers (group boycotts) or
       service-tying arrangements
                AMSA is Here to Help

 Providing Staying Legal & Claims Workshops on
  complying with FMCSA requirements and tariff
 Providing Staying Legal publication and email Newsletter
  for guidance operating in new environment – complying
  with FMCSA / STB consumer & tariff regulations.
 Providing our members with Certification & Training
  Workshops and with regulatory consulting & assistance.
                 AMSA Contacts:

 For more information on AMSA training & certification
  programs - Maryscott Tuck at
 For AMSA Membership Information, - Samantha Ha at
 For Regulatory and Compliance Information - Dave
  Hauenstein at
 Visit our industry website –
   Complying with the
  Consumer Regulations

Thank You – Any Questions?

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