CCSB DOCKET 2011-1 SECTION Iedit 2011-1/2011-1...SUBJECT 3 '2010 National Motor Freight Traffic Association, Inc. Subject 3, Page 3 of 7 other proposals to raise or lower the class

CCSB DOCKET 2011-1 SECTION I

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©2010 National Motor Freight Traffic Association, Inc. Subject 3, Page 1 of 7

Re: Pneumatic Tires

Staff Contact: William F. Mascaro Telephone — (703) 838-1834 [email protected]

Proponent: Commodity Classification Standards Board

Present Classification Provisions

Item Description Class

PLASTIC OR RUBBER ARTICLES, OTHER THAN EXPANDED, GROUP: subject toitem 156500

157230 Tires, pneumatic, NOI; see Notes, items 157232 and 157234 ............................. 77.5157232 NOTE—Tires may have steel bead locks inserted, may be mounted on steel rims

or may contain flaps, inner tubes, reliners or valves.157234 NOTE—Tubeless tires (tires not employing tubes for retention of air) weighing

each 700 pounds or more must have labels or placards attached byshipper to each side of tire warning against improper handling and statingmethods of proper handling. Labels or placards must be printed in typenot less than one-half inch in height.

157235 Tires, pneumatic, used or defective; or Scrap Rubber Tires, having value onlyfor reclamation of raw materials; see Note, item 157232, actual valuenot exceeding $1.00 per pound, see Note, item 157236 ....................... 60

157236 NOTE—Shipper must certify on shipping orders and bills of lading at time ofshipment that the actual value per pound of the property does notexceed $1.00. If the shipper fails to so certify the actual value per pound,the tires will be classed per item 157226, 157227, 157230 or 157238, with thefinal determination of item dependent on the type of tire.

RUBBER MATERIALS GROUP: subject to item 171600171880 Rubber, scrap, NOI, see Note, item 171884, in packages............................... 50171884 NOTE—Applies only on: scraps, pieces or trimmings of rubber-impregnated

cloth; reclaimers' tailings or residue; old worn-out rubber boots, shoes,belting, clothing, rolls or rollers, hose mats, matting or packing; or similarworn-out articles; having value only for reclamation of raw materials. Sucharticles must be described on bills of lading and shipping orders at time ofshipment as 'Scrap Rubber.' Does not apply on scrap rubber tires.Provisions for such tires are found in item 157235.


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©2010 National Motor Freight Traffic Association, Inc.Subject 3, Page 2 of 7

Proposed Classification Provisions

Item Description Class

PLASTIC OR RUBBER ARTICLES, OTHER THAN EXPANDED, GROUP: subject toitem 156500

157230 Tires, pneumatic, other than mounted on wheels, see Notes,items A-NEW and 157234........................................................................110

A-NEW NOTE—For provisions applicable to pneumatic tires mounted on wheels, seeitems 12420, 197590, 197592 and 197597, with the final determination ofitem dependent upon the involved wheel and tire combination.

157232 NOTE—Cancel; no further application.157234 NOTE—No Change.157235 Tires, pneumatic, used or defective; or Scrap Rubber Tires, etc...... Cancel; see

items 157230 and B-NEW157236 NOTE—Cancel; see item C-NEW.

RUBBER MATERIALS GROUP: subject to item 171600171880 Rubber, scrap, NOI, see Note, item 171884, in packages.................. No Change171884 NOTE—Applies only on: scraps, pieces or trimmings of rubber-impregnated

cloth; reclaimers' tailings or residue; old worn-out rubber boots, shoes,belting, clothing, rolls or rollers, hose mats, matting or packing; or similarworn-out articles; having value only for reclamation of raw materials. Sucharticles must be described on bills of lading and shipping orders at time ofshipment as 'Scrap Rubber.' Does not apply on scrap rubber tires.Provisions for such tires are found in item B-NEW.

WASTE MATERIALS GROUP: subject to item 194200B-NEW Tires, rubber, scrap, having value only for reclamation of raw materials,

actual value not exceeding $1.00 per pound, see Note,item C-NEW ................................................................................................... 60

C-NEW NOTE—Shipper must certify on shipping orders and bills of lading at time ofshipment that the actual value per pound of the property does notexceed $1.00. If the shipper fails to so certify the actual value per pound,the tires will be classed per item 157226, 157227, 157230 or 157238, with thefinal determination of item dependent on the type of tire.

Analysis

This proposal is based on information developed through Research Project 1101involving tires. Project 1101 was initiated in response to indications of transportationcharacteristics inconsistent with CCSB guidelines for the currently applicable class 77.5 peritem 157230, “Tires, pneumatic, NOI,” as shown in the present classification provisions.

Provisions for pneumatic tires were adopted from the rail classification in 1936 at arating equivalent to class 85. Since that time, the provisions for tires in the NMFC have beenthe subject of numerous proposals to raise or lower the applicable class and to addressinterpretative issues. The currently applicable class 77.5 in item 157230 was established as aresult of action taken on Docket 142, Subject 12 (September 1969) and first appeared inSupplement 7 to NMFC A-11, effective September 2, 1970. Since that time, there have been


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other proposals to raise or lower the class applicable to pneumatic tires but none have beenadopted.

During the course of Project 1101 the CCSB contacted four trade associations and 161potential manufacturers or shippers of tires in August and December of 2009. From thissampling, one association responded that they did not represent shippers of tires. No responsewas received from the other three associations. Of the 161 potential manufacturers orshippers contacted, 24 of the surveys were returned as undeliverable, 13 companiesresponded that they did not manufacture or ship tires, and 8 companies provided someinformation. Additional information was developed through carrier-submitted ShipmentInformation Forms, CCSB dock surveys and the CCSB’s Density Study1.

Overall, the information developed encompasses a wide variety of pneumatic tires,including aircraft tires, automobile tires, truck tires, motorcycle tires, and off-road vehicle tires.Where identified, information involving tires mounted on wheels has been excluded as thesearticles are classified elsewhere in the Classification. Examples of the types of tires on whichinformation is available are depicted in the photos below.

In addition to the different types of tires, the record also includes used or defectivepneumatic tires named in item 157235 as these tires are similar in nature to the pneumatic tiresnamed in item 157230.

1 The Density Study is part of an ongoing effort by the CCSB to collect information on actual shipments; itis not tied to any particular research project, nor does it target any particular product category.Carriers that choose to participate in the study periodically submit shipment data captured throughtheir respective freight auditing programs. The data is identified by NMFC item, and only verifiable datapoints, which include the weight and the dimensions and/or cube of the shipping unit involved, areused.


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Transportation Characteristics

Density: Overall, the information of record encompasses 5,552 density observations andreveals a range in density from 0.27 to 92.17 pcf, with a simple average density of 9.33 pcf. Afrequency distribution of the overall density range is provided below:

As depicted in the graph, the density observations are distributed throughout theidentified density range, with the greatest concentration of figures in the 6 but less than 8 pcfinterval.

Stowability: Pneumatic tires are tendered for shipment in a variety ofways, including loose, loose on pallets, stretch-wrapped on pallets, banded on pallets, and in boxesor reusable shipping containers. It should be noted,however, that only two shipments of record werereported to be in boxes and two in reusable shippingcontainers.

When tendered on pallets, whether or notunitized to the pallet, pneumatic tires will generally require floor loading.Also, given the general elastic or flexible nature of pneumatic tires, it is

likely that additional freight will not be able to be loaded on top of the tires, thereby renderingthe space above unusable, absent the use of load decks or loadbars, and making it more difficult to structure a load. In addition,palletized shipments may not occupy the full area of the palletdeck, or the tires may overhang the edges of the pallet deck.When the tires fail to occupy the area of the pallet deck, there maynot be any lateral support for adjacent freight. When the tiresoverhang the edges of the pallet, additional care and attention

0.005.00

10.0015.0020.0025.0030.00

Lessthan 1

1 butless

than 2

2 butless

than 4

4 butless

than 6

0.05 0.003.55

20.12

% o

f Fig

ures

in In

terv

al

Frequency Distribution


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4 butless

than 6

6 butless

than 8

8 butlessthan10

10 butlessthan12

12 butlessthan15

15 butlessthan22.5

22.5butlessthan30

30 orgreater

20.12

26.49

19.51

11.65 10.91

5.101.37 1.24

Density Intervals (pcf)

Frequency Distribution


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30 orgreater

1.24


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may be required to ensure that only compatible freight is loaded adjacent to the tires toprevent damage.

Tires tendered loose may be stackedor interlaced within the vehicle. Again,floor loading is generally required, andwhen stacked or interlaced, any remainingspace above the tires is essentiallyunusable due to the tires’ inability tosupport other freight. Such shipments mayalso require the use of load bars ordunnage to prevent movement of the tiresduring transit. Loose tires loaded on edge will also require the

use of dunnage or some type of bracing to prevent movement within the vehicle. As is thecase with other shipping methods, pneumatic tires loaded in this manner will also severely limitthe carrier’s ability to use the surrounding vehicle space, especially on top.

Handling: When tendered unitized to a pallet, pneumatic tires may be handled in amanner similar to other like-packagedfreight, however, extra care andattention will be required when the tiresoverhang the edges of the pallet toprevent damage. When placed orstacked on a pallet without banding orstretch wrap being used to secure thetires to the pallet, extra care andattention may be required to avoidhaving the tires fall from the pallet while loading and unloading

and during cross-dock operations.

Pneumatic tires tendered loose will require extra time whenloading, unloading and during cross-dock operations. Interlacing orstacking loose tires in a vehicle will also require additional time, notonly to interlace or stack the tires in the vehicle, but also to securethem with load bars or bracing. The useof additional personnel may also berequired to complete the task in a timelymanner. Positioning the tire within the

vehicle may also take additional time and personnel as dunnageand/or compatible freight may be required to support the tire in thevehicle, as shown in the photo on the right. These activities are notrequired for most other types of general commodities.

Larger and heavier tires, such as those found on heavy-duty off-road vehicles or farmequipment, will also require additional care and attention when handling. Informationdeveloped indicates that these tires are typically tendered loose, and due to their size andweight, will most likely require mechanical handling equipment. Positioning these tires in thevehicle is also more difficult than other general commodities and may require extra personnel


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to assist. For example, as depicted in the photo on the right, this loosetire had a reported weight of 1,407 pounds and would require the useof mechanical equipment to move. When handling such a tire, extracare would have to be exercised to not only prevent damage to thetire, but also to prevent the tire from falling or rolling off the forklift tinesduring cross-dock operations.

Liability: Tires are not perishable, prone to spontaneouscombustion or explosion, or susceptible to theft. They may besusceptible to damage; however, this susceptibility will vary depending on the manner inwhich the tire is tendered for shipment. Information of record indicates that the manner oftender for pneumatic tires varies from in boxes or reusable shipping containers, stretch-wrapped or banded to a pallet, or loose. As is the case with most general commodities,pneumatic tires tendered fully enclosed within a box or reusable shipping container, while notfound to be typical, will be afforded greater protection against damage than when tenderedstretch-wrapped or banded to a pallet, and especially compared to loose tires. It is noted,however, that there is no information on the record that would indicate a claims problem. Alimited amount of information on value indicates a range from $1.67 to $4.30 per pound, witha simple average value of $2.99 per pound.

Relationship to CCSB Policies and Guidelines

CCSB policy calls for classification provisions to be as clear as possible to help precludeinterpretation disputes. Item 157235 currently provides for used, defective or scrap rubber tires.From the carriers’ standpoint, verifying whether a particular tire shipment consists of defectivetires or new tires can be difficult at best. In addition, the transportation characteristics of new,used or defective pneumatic tires will be essentially the same, with little or no difference in thedensity, and the same handling and stowing considerations. In view of this, cancelling theprovisions for used or defective pneumatic tires in item 157235 with reference to the provisionsof item 157230, as proposed, is in keeping with CCSB policy and precedent.

CCSB policy calls for classification provisions to reflect a commodity’s knowntransportation characteristics. Information of record indicates that pneumatic tires have arange in density from 0.27 to 92.17 pcf, with a simple average density of 9.33 pcf. CCSBguidelines for the currently applicable class 77.5 for pneumatic tires as named in item 157230and the class 60 applicable to used or defective pneumatic tires as named in item 157235 callfor a minimum average density of 13.5 and 30 pcf, respectively. Under CCSB guidelines, anaverage density of 9.33 pcf is generally associated with a class 100, which calls for a minimumaverage density of 9 pcf.

CCSB policy provides that commodities or commodity groups exhibiting a wide densityrange not accurately reflected by a single, overall average density may be assigned density-based classes. However, in this instance, due to the varying ways that tires are tendered forshipment and the density variances that may result from interlacing or stacking tires from thepoint of origin to their destination, the use of density-based classes is not practical.Additionally, the record identifies several significant negative stowing and handlingcharacteristics that must be considered. These have been previously detailed in this analysisand include such factors as the lack of a flat load-bearing surface for other freight and


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handling considerations resulting from the manner in which the tire is tendered for shipment, aswell as its size and weight.

With respect to commodities that exhibit less-than-favorable handling, stowing orliability characteristics, classification precedent has been to assign a class one or two classeshigher than what would generally be called for under the density guidelines. A recentexample of such an approach can be found in Docket 2010-1, Subject 1 (February 2010)involving mail. In that instance, the CCSB approved a class that was one class higher thanthat called for under CCSB density guidelines to address identified negative handling, stowingand liability characteristics.

Based on the information of record, this proposal would establish a class 110 forpneumatic tires, which is one class higher than that called for under CCSB density guidelines,to address the identified negative handling and stowing considerations.

CCSB policy further calls for listing provisions under appropriate generic headings.Accordingly, the provisions for scrap rubber tires are proposed to be cancelled andreestablished under the Waste Materials Group, with no change to the assigned class 60, forclarification and to group these products with other scrap or waste articles. Concurrently,Note, item 171884, applicable to item 171880 for scrap rubber, is proposed to be amended toreference the new item for scrap rubber tires in lieu of item 157235, which would be cancelled.

Based on the information of record, this proposal, as docketed, is in keeping with CCSBpolicy and precedent.

Documents

CCSB DOCKET 2011-1 SECTION Iedit 2011-1/2011-1...SUBJECT 3 '2010 National Motor Freight Traffic Association, Inc. Subject 3, Page 3 of 7 other proposals to raise or lower the class