CCSB Contact: Erin N. Topper Telephone (703) Item Description Class

Transcription

1 Re: Welding Bars, Rods or Wire (Welding Electrodes), iron or steel CCSB Contact: Erin N. Topper Telephone (703) Proponent: Commodity Classification Standards Board Present Classification Provisions Item Description Class Welding Bars, Rods or Wire (Welding Electrodes), iron or steel: Sub 1 Acid coppered, flux coated, flux cored or plain, in packages Sub 2 Chromium-manganese coated, in packages Proposed Classification Provisions Item Description Class IRON OR STEEL: subject to item NEW Bars, Rods or Wire, welding (Welding Electrodes): Sub 1 In metal cans secured on lift truck skids or pallets Sub 2 In boxes or drums Welding Bars, Rods or Wire (Welding Electrodes), etc... Cancel; see item NEW Analysis Research Project 1177 Research Project 1177 on welding bars, rods or wire (welding electrodes), as named in item , was initiated in February of 2013 in response to a report of claims resulting from damage to the packaging of these products. In conjunction with the project, questionnaires were mailed to 250 potential shippers or manufacturers of the involved products and nine associations believed to represent those shippers or manufacturers, in March and May of From those mailings, usable information was received from three companies; four companies did not provide usable data; and 11 reported that they do not ship or manufacture these products. Of the associations contacted, one responded and indicated it had forwarded the questionnaire to its membership National Motor Freight Traffic Association, Inc. Subject 1, Page 1 of 5

2 History of Provisions The provisions for flux-coated iron or steel welding bars, rods or wire were adopted from the rails and first appeared in LTL-1, effective April 1, 1936, at a rating equivalent to class 50. The provisions were amended multiple times to include other material consist references, at the respective classes. The most recent change was as a result of action taken on Docket 711, Subject 43 (January, 1971), which added the term flux cored to sub 1. That change first appeared in Supplement 28 to NMFC A-11, effective July 7, The item has remained substantially unchanged to the present. About Welding Bars, Rods or Wire Welding is a process that unites metal by heating and allowing the metals to flow together. Depending on the type of process, the electrode (bar, rod or wire) may be either consumable or non-consumable, and electrode selection is based on the composition of the metal, the process variation being used, and the material surface conditions. The goal is for the finished weld metal to have mechanical properties similar to those of the base material with no defects and, therefore, a wide variety of electrodes exist, as can be seen in the photos below. For a carrier, determining the specific material consist of a particular product may be difficult and can result in interpretation issues. Subject 1, Page 2 of National Motor Freight Traffic Association, Inc.

3 Shipments of Welding Bars, Rods or Wire Transportation Characteristics Density The information of record includes 6,034 density observations submitted by shippers and carriers, observed firsthand on CCSB dock surveys, and culled from the CCSB s Density Study 1. The densities range from 1.55 to pcf, with an average of pcf. As can be seen in the frequency distribution on the next page, 75% of the figures are 30 pcf or greater. 1 The Density Study is part of an ongoing effort by the CCSB to collect information on actual shipments; it is 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 through their respective freight auditing programs. The data is identified by NMFC item, and only verifiable data points, which include the weight and the dimensions and/or cube of the shipping unit involved, are used National Motor Freight Traffic Association, Inc. Subject 1, Page 3 of 5

4 Frequency Distribution % of Figures in Interval 80% 60% 40% 20% 0% 0% 0% 0% 0% 1% 1% 1% 2% 6% 14% 75% Density Intervals (pcf) Handling Welding bars, rods or wire may be packaged in metal cans, fiberboard boxes or drums, which are generally palletized for shipment. When so tendered, they may be readily handled with mechanical equipment. Extra care and attention may be necessary to mitigate the chance for damage. Stowability Due to the weight of the handling units, floor loading may be required. When tendered in fiberboard boxes or drums, a flat load-bearing surface may be present to stack other freight. While a flat load-bearing surface may be present when welding bars, rods or wire are tendered in metal cans, the cans may not be able to support the weight of other freight. Liability Welding bars, rods or wire are not unusually susceptible to theft nor prone to spontaneous combustion or explosion. They are not likely to damage freight with which stowed, but may themselves be susceptible to damage, particularly when tendered in metal cans on lift truck skids or pallets. A carrier reported that any damage to the metal cans (including denting) will result in a complete loss because the cans are hermetically sealed. That carrier reported 2 claims ratios ranging from 0.52% to 9.36%, with an average of 4.26%, while another carrier reported a claims ratio of 1.26%. An example of the type of damage frequently seen is shown in the photo. The value per pound, based on limited information, ranges from $0.76 to $3.74, with an average of $2.16 per pound. 2 January 1, 2013 June 30, 2013 Subject 1, Page 4 of National Motor Freight Traffic Association, Inc.

5 Relationship to CCSB Policies and Guidelines CCSB policy calls for amending classification provisions that are a source, or potential source, of interpretation disputes so as to eliminate or avoid those disputes. The current provisions of item are based on very specific material consist, e.g. acid coppered or chromium-manganese coated, and carriers may not always be able to identify such specific construction of welding bars, rods or wire in a particular shipment. Additionally, item is currently not under a generic heading and is listed alphabetically by the descriptor welding. It would be consistent with CCSB policies and precedent to cancel item with reference to a new item under the Iron or Steel generic heading for Bars, Rods or Wire, welding (Welding Electrodes). CCSB policy also calls for provisions to reflect a commodity s known transportation characteristics. Information of record includes 6,034 density observations ranging from 1.55 to pcf, with 75% of the figures 30 pcf or greater and an average density of pcf. An average density of pcf is generally associated with a class 55, which under CCSB guidelines calls for a minimum average density of 35 pcf. Through the course of research, it was determined that whether or not welding bars, rods or wire are shipped in metal cans on lift truck skids or pallets has a significant influence on the transportation characteristics of these products, as they are more susceptible to damage than when tendered in boxes or drums, increasing the liability of a carrier transporting such freight and impacting the products stowability. CCSB policy provides that the CCSB may deviate from the density guidelines when these additional considerations are evident. As such, assigning a class 60, a one-class adjustment, for welding bars, rods or wire shipped in metal cans secured on lift truck skids or pallets would be in keeping with CCSB policies. Assigning a class 55 to welding bars, rods or wire tendered in boxes or drums, based on the average density, would also be in keeping with CCSB policies and guidelines. This proposal is also in keeping with CCSB precedent. As a result of action taken on Docket , Subject 10 (June, 2013) the provisions for sausage or food product casings, as named in item 41650, were amended to provide classes based on whether or not the casings are shipped in brine. It was found that casings in brine present liability considerations due to their perishability and the possibility of leakage, which also impacts handling and stowability. Accordingly, class 60 a one-class adjustment from class 55, based on an average density of pcf (later revised to pcf) was proposed for those casings. That proposal was approved as docketed, and the provisions first appeared in Supplement 2 to NMF 100-AM, effective August 24, Based on the information of record, this proposal, as docketed, is in keeping with CCSB policy and precedent National Motor Freight Traffic Association, Inc. Subject 1, Page 5 of 5