Federal Transportation Officer Training Program: Basic (Level 1)

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1 Page 1 of 27 Federal Transportation Officer Training Program: Basic (Level 1) Freight, Cargo, and Household Goods Session 4: Domestic Transportation Page 1 of 27

2 Page 2 of 27 What You Will Learn This session will introduce domestic transportation and its packaging and shipping requirements. Page 2 of 27

3 Page 3 of 27 Session 4 Outline What Is Domestic Transportation? How Do I Plan A Domestic Transportation Move? What Are Expedited Carriers? What Are Small Package Carriers? What Are Specialty Carriers? Glossary of Terms Knowledge Review Where to Go for More Information Page 3 of 27

4 Page 4 of 27 What Is Domestic Transportation? According to Title 49, Transportation, 49 CFR 171.8, "domestic transportation" is defined as "transportation between places within the United States other than through a foreign country." Domestic transportation includes the movement of freight, cargo and household goods. Domestic transportation does not include OCONUS. Page 4 of 27

5 Page 5 of 27 How Do I Plan a Domestic Transportation Move? Step Details 1. Identify Cargo Details The cargo type, quantity, and volume may determine some initial packaging and marking requirements, as well as special handling requirements. 2. Determine Shipment Origin and Destination You may not always be shipping from your physical location, and either origin or destination locations may have specific delivery requirements, such as special security procedures to be followed. 3. Identify Delivery Date Some shipments may have required delivery dates due to the urgency of the cargo, while others may have some latitude in delivery timeframe. 4. Evaluate and Select Mode(s) Taking into consideration the type and quantity of cargo, the origin and destination locations, and the delivery date needed, different modes will make sense. In many cases, more than one mode may be needed along the way from origin to destination. 5. Evaluate Carriers and Award Shipment For each mode, evaluate carrier options, and select best-value carrier, based on your priorities and definition of best-value. Page 5 of 27

6 Page 6 of 27 What's a good example for this process? You have been given 2 pallets of computer hardware to ship from Boston, MA to Austin, TX. The shipment is expected to arrive within the next week. Let's review the steps of a shipment process and apply these steps to the example Page 6 of 27

7 Page 7 of 27 Step 1: Identify Cargo Details Questions to ask... For the example... What is being shipped? We are shipping computers with no hazardous components. Are the pallets standard dimensions (40" by 48")? The pallets are standard. What are the pallet weights? The pallets each weigh 450 pounds so they are handled with regular forklift or pallet jack equipment. Is the cargo adequately packed already or will other protective wrap be needed? The computer equipment is in vendor packaging so it should be adequately protected. Page 7 of 27

8 Page 8 of 27 Step 1: What if the example were different? If the Cargo Were Then Batteries? Batteries are classified as hazardous material, so the Material Safety Data Sheet should be consulted to determine additional placarding and marking, as well as any mode restrictions. Medical vaccines? Vaccines may require temperature control, so refrigerated transport would be required. Helicopter rotor blades? Rotor blades are very long and heavy and will not fit in a standard pallet configuration. Shipments with unusual dimensions and/or weights need to be clearly communicated to any carriers. Page 8 of 27

9 Page 9 of 27 Step 2: Determine Shipment Origin and Destination Questions to ask... For the example... What is the origin address? The origin is a Boston, MA distribution facility on the Port of Boston property. What is the destination address? The destination is a warehouse in Austin, TX. What are the material handling capabilities at the sites? Both sites have standard loading and receiving dock configurations and forklifts. What are the access requirements at the sites? The Port of Boston requires an appointment prior to arrival. Page 9 of 27

10 Page 10 of 27 Step 2: What if the example were different? If the Origin/Destination Were Then An office building? The building may not have a commercial loading dock or equipment to handle pallets. This may require loading the pallets to a different-size truck for better access, and extra time for material transfer. A secure facility? The driver may be required to provide proof of citizenship, or some other identification, or be pre-cleared. Only open part-time? The delivery needs to be scheduled to arrive when the facility is open. Page 10 of 27

11 Page 11 of 27 Step 3: Identify Delivery Date Questions to ask... For the example... Is there a no-later-than delivery date? The shipment has no firm delivery date required, just sometime next week. What is the risk and impact of a late delivery? The cargo is replenishment for warehouse stock, as opposed to delivery to a customer for immediate use. Is transportation cost a primary or secondary consideration? Transportation costs should be kept at a minimum. Page 11 of 27

12 Page 12 of 27 Step 3: What if the example were different? If Then The cargo had a definite delivery date? Potential modes of transport may be limited to only those that can arrive by the delivery date. Making delivery was more important than the cost incurred? The best mode will be the mode that guarantees on-time delivery. Transportation cost was a concern? Determine if the identified delivery date must be met, and provide alternate options for delivery that save money. Required delivery date was over a week away? An intermodal transportation mode may be a solution. While intermodal moves tend to be less expensive, this mode may take a longer delivery time. Page 12 of 27

13 Page 13 of 27 Step 4: Evaluate and Select Mode(s) Questions to ask... For the example... What modes can meet the delivery date? Air, truckload, and less-than-truckload (LTL) can likely make the delivery date. Do any modes prohibit the transport of the cargo in question? A 2-pallet shipment isn't likely to make contracting for an entire truck worthwhile, because truckload is billed by the mile and this is a longdistance trip. Do the weight or dimensions of the cargo make any modes uneconomical? The pallets and weights are standard and easily handled by an LTL carrier. Page 13 of 27

14 Page 14 of 27 Step 4: What if the example were different? If Then The cargo was compressed gas cylinders (acetylene and oxygen) required for welding? Provisions exist for packing and marking these items for domestic air movements, but air carriers may not be willing to transport this cargo. Therefore, the transportation officer (TO) may have to rely on movement by truck or rail. The transport distance was shorter? Contracting with a truckload carrier may be more economical over a short distance. The cargo was 3 medium-sized industrial diesel-powered generators? Although they could be moved by a LTL carrier, the cost to move the 3 generators at truckload rate may actually be cheaper than LTL. TOs should consider the weight breaks used in the tenders of service to determine which mode would be more advantageous. Page 14 of 27

15 Page 15 of 27 Step 5: Evaluate Carriers and Award Shipment Questions to ask... For the example... What mode(s) have we narrowed options to? The shipment is best fit with LTL. Do established agency rates or tenders exist? The origin and destination combination has been used before and multiple tenders are on file. If multiple modes, do you want someone else to manage the multiple bills of lading? Select the best value LTL transportation service provider (TSP) that meets the delivery requirements. Page 15 of 27

16 Page 16 of 27 Step 5: What if the example were different? If Then There were no tenders on file? If this shipment is likely to recur, a TO may solicit private tenders from multiple LTL TSPs. If this is a one-time shipment, a TO may instead assess public tenders published on each TSP's website or ask for one time only bids from multiple LTL TSPs. If air delivery was necessary to meet the required delivery data? The TO will need to contact an air shipment TSP, who will manage not only the air but the beginning and ending trucks legs of the journey. Page 16 of 27

17 Page 17 of 27 What about the transportation shipping documents? Consider the item that is being shipped and determine what documents you will need, such as: U.S. Department of Transportation (DOT), Pipeline and Hazardous Materials Safety Administration permits The bill of lading (BOL) is the ordering document and binds the TSP to provide services for the shipper. The BOL is legally recognized as the TSP's receipt for the shipment and establishes its responsibility and liability while the shipment is in its care Airway bill which is a contract between the shipper and airline that states the terms and conditions of transportation SF1113, Public Voucher for Transportation Charges, and Any other required transportation documentation. Page 17 of 27

18 Page 18 of 27 What about packaging? Packaging is intended for the protection of goods while they are in transit from point of origin to final destination. It is vital that the commodity being transported is packaged properly and in compliance with regulations. All of the transportation modes have their own unique packaging regulations and standards. Page 18 of 27

19 Page 19 of 27 Where can I go for more information on packaging? U.S. Department of Transportation, Federal Motor Carrier Safety Administration for package requirements for hazardous materials. U.S. Department of Energy (DOE) Packaging and Transportation which is responsible for developing systems and technologies to ensure packaging and transportation activities are safe, economical, efficient, secure, and meet applicable regulatory requirements; resolving packaging and transportation issues safely, economically, and promptly; and developing, managing and coordinating policies and procedures for packaging and transportation activities for DOE materials, including hazardous materials, substances and wastes. Page 19 of 27

20 Page 20 of 27 What about shipping? After you have packaged your shipment, contact your TSP for a scheduled pickup. You will need to give them specific instructions on where, when, and how they can pick it up. Think about: The time of day you want it picked up Any security issues that could arise Property transfers sheets, if necessary, for security Any special permits needed for the TSP to enter your facility, and Monitoring and ensuring delivery. It is your responsibility to track the shipment from pickup to delivery. Page 20 of 27

21 Page 21 of 27 How about the cost? When you think about paying for transportation, you must think about how much your agency's budget will allow you to pay and how much is fair. You should consider the business rules including costs, best value and government mandates along with those associated with the mode of transportation. Review is necessary because the price is generally not firm fixed with transportation. Look at the industry and compare costs, competition, and determine a fair price. Page 21 of 27

22 Page 22 of 27 What Are Expedited Carriers? Expedited carriers are companies that provide service faster than routine service. Expedited carriers are used for extremely urgent freight, when next day, two day or three day express delivery is required. The shipper selects the required type of delivery service based on the day the shipment will be delivered (e.g. next day, two-day). Page 22 of 27

23 Page 23 of 27 What is a small package carrier? Small package carriers are companies that deliver letters and packages weighing up to 150 pounds. Examples of packages sent using small package carriers include: Urgent letters (typically considered and managed by mail policy), and Packages under 150 lbs. GSA has a Direct Delivery Service Carrier contract that provides for agency cost savings in delivery for domestic timedefinite and day-definite delivery services that include air and ground shipments. Your agency may have signed on with this contract. Page 23 of 27

24 Page 24 of 27 What is a specialty carrier? Specialty carriers handle items that are delicate, fragile, or in need of special attention or equipment. Examples of items shipped are: Item(s) Service required Jet engine Air-ride trailer Museum art Extensive packing & crating Oversized Special equipment, permits, and routing Perishables Refrigerated equipment Sensitive or classified cargo Protective services Page 24 of 27

25 Page 25 of 27 Glossary of Terms The following terms are those frequently used in federal transportation; however, this is not an inclusive list of terms. You may want to refer to and for additional transportation definitions. Common Carrier is a transportation company which provides service to the general public at published rates. Strategic Sourcing is the structured and collaborative process of critically analyzing an organization's spending patterns to better leverage its purchasing power, reduce cost and improve overall performance. Domestic Mail Manual provides information about USPS commercial parcels. Page 25 of 27

26 Page 26 of 27 Knowledge Review When planning for a shipment, what should you know? Commodity Origin and destination Packaging requirements Time requirements Agency requirements Specialty requirements Answer: Commodity, Origin and Destination, Packaging requirements, Time requirements, Agency requirements, Specialty requirements Yes, that's correct. These are all part of the information you will need to develop an effective and efficient transportation plan in compliance with appropriate regulations and requirements to meet your agency's mission. Incorrect: Sorry, that's not correct. These are all part of the information you will need to develop an effective and efficient transportation plan in compliance with appropriate regulations and requirements to meet your agency's mission. Page 26 of 27

27 Page 27 of 27 Where to Go for More Information In addition to the sites identified in this session, you can find more information from the following: 41 CFR Transportation Management and 41 CFR Transportation Management and Audit U.S. General Services Administration (GSA) provides policy and regulation guidance, purchasing of transportation services through the multiple award schedules; and audit assistance services Policy and Regulation Guidance Multiple Award Schedules: Schedule 48-Transportation, Scheduling and Relocation Solutions Audit Assistance Services U.S. Department of Transportation provides you with assistance with motor, air, rail and hazardous materials transportation regulations and guidance U.S. Department of Energy, Office of Packaging and Transportation, provides policy and guidance for packaging and transportation operations involving hazardous materials, and Your agency mail manager. Page 27 of 27

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