Staff Contact: Allison L. Austin Telephone (703) Item Description Class

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1 Re: Waste Receptacles, steel or concrete Staff Contact: Allison L. Austin Telephone (703) Proponent: Commodity Classification Standards Board Present Classification Provisions Item Description Class Holders or Receptacles, refuse, perforated steel or steel frame, with mounting hardware, with or without wood slatted exterior, with or without plastic or sheet steel liner, in boxes Holders or Receptacles, refuse or waste, cast concrete with wire reinforcement, with or without tops or liners of other materials, on pallets SHEET STEEL ARTICLES GROUP: subject to item Baskets, NOI, Wastebaskets or Dry Measures, in packages: Sub 1 Not nested Sub 2 Nested Cans, ash, garbage, oiled waste, refuse, NOI, or disposal, with or without bails or covers, in packages: Sub 1 Nested, NOI, or not nested Sub 2 Nested, subject to Item 170 and having a density of 6 pounds or greater per cubic foot Receptacles, refuse or refuse bag, not over 12 cubic feet capacity, with permanently attached tops or with self-closing tops, with or without liners, in boxes or crates: Sub 1 SU Sub 2 KD flat Proposed Classification Provisions Item Description Class Holders or Receptacles, refuse, perforated steel or steel frame, etc... Cancel; see item B-NEW Holders or Receptacles, refuse or waste, cast concrete with wire reinforcement, etc... Cancel; see item A-NEW A-NEW Receptacles or Holders, waste or refuse, cast concrete, with or without tops, liners or mounting hardware of same or other materials, in packages, subject to Item 170 and having a density in pounds per cubic foot of: Sub 1 Less than Sub 2 12 or greater National Motor Freight Traffic Association, Inc. Subject 9, Page 1 of 9

2 Proposed Classification Provisions Concluded Item Description Class SHEET STEEL ARTICLES GROUP: subject to item Baskets, NOI, or Dry Measures, in packages: Sub 1 Not nested... No Change Sub 2 Nested... No Change Cans, ash, garbage, oiled waste, refuse, NOI, or disposal, with or without bails or covers, etc... Cancel; see item B-NEW B-NEW Cans, Receptacles or Holders, waste or refuse, or Wastebaskets, with or without tops, liners or mounting hardware of same or other materials, see Note, item C-NEW, in boxes or crates C-NEW NOTE Also applies on such products of steel frame construction, with or without wood slatted exterior Receptacles, refuse or refuse bag, not over 12 cubic feet capacity, with permanently attached tops or with self-closing tops, with or without liners, etc.... Cancel; see item B-NEW Analysis Research Project 1143 This proposal is based on information developed through Research Project 1143, pertaining to waste or refuse cans, receptacles or holders, and wastebaskets. Herein these products will be referred to as waste receptacles. Research Project 1143 was initiated by the CCSB in October 2011, in light of existing interpretation disputes. There are several waste receptacle entries in the NMFC, with provisions largely based on material consist and/or industry terminology. This proposal is limited to waste receptacles constructed of steel or concrete. It should be noted that the project originally encompassed waste receptacles of aluminum or plastic construction as well. However, very limited data was obtained on products made of these materials, and it is uncertain if the data received is representative of the current transportation characteristics of those commodities. Consequently, this proposal does not address aluminum or plastic waste receptacles. Commodity questionnaires were sent to 343 potential manufacturers or shippers of waste receptacles and three associations believed to represent those companies in October, and for those that did not respond, again in December of Six questionnaires were returned as undeliverable, 22 companies responded that they do not manufacture or ship waste receptacles, three companies indicated that they do not ship via less-than-truckload (LTL) and 29 companies provided information, 15 of which provided usable information on steel or concrete waste receptacles. No responses were received from the associations contacted. Subject 9, Page 2 of National Motor Freight Traffic Association, Inc.

3 Additional information of record was developed through CCSB dock surveys, carriersubmitted Shipment Information Forms and the CCSB s Density Study 1. History of Provisions Item 99815, naming Holders or Receptacles, refuse, perforated steel or steel frame, was established as a result of action taken on Subject 24 of Docket 797 (October 1979), and first appeared in Supplement 7 to NMF 100-G, effective August 16, That proposal was approved as modified; and information on that record indicated an average density of 9 pcf and no unusual or significant handling, stowability or liability characteristics. The provisions have remained substantially unchanged to the present. Item 99817, naming Holders or Receptacles, refuse or waste, cast concrete with wire reinforcement, was established as a result of action taken on Subject 16 of Docket 812 (March 1981), and first appeared in Supplement 9 to NMF 100-H, effective October 10, Information on that record indicated an average density of 40 pcf and no unusual or significant handling or liability characteristics; although, some stowability issues were identified due to the lack of a regular load-bearing surface for top freight. The proposal was approved as modified, and the provisions have remained substantially unchanged to the present. The noun Wastebaskets was added to the description of item , and the present classes were established in the item, as a result of action taken on Subject 103 of Docket 74 (June 1956) and Subject 52 of Docket 77 (January 1957). The addition of the noun Wastebaskets first appeared in Supplement 5 to NMFC A-4, effective August 12, The present classes first appeared in Supplement 9 to NMFC A-4, effective November 4, The provisions have remained substantially unchanged to the present. The current subprovisions of item , applying on sheet steel Cans, ash, garbage, oiled waste, refuse, NOI, or disposal, were established as a result of action taken on Subject 16 of Docket 898 (December 1989), and first appeared in Supplement 9 to NMF 100-P, effective February 17, The proposal established a reduced class (125) for nested cans having a density of 6 pcf or greater, per sub 2 of the item. Information on that record revealed a density range of 6.32 to 13.8 pcf, with an average density of 8.44 pcf. There was no indication of handling or stowability problems, and value per pound ranged from $0.72 to $3.52, with an average of $1.50 (in 1989 dollars). Nested cans, NOI, or cans not shipped nested remained at the previously assigned class (175), per sub 1. The current provisions of item , applying on sheet steel Receptacles, refuse or refuse bag, are a result of action taken on Subject 30 of Docket 803 (April 1980), and first appeared in Supplement 9 to NMF 100-G, effective October 11, The proposal established a reduced class (125) for receptacles shipped SU, per sub 1 of the item. Shipment 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 9, Page 3 of 9

4 densities on that record ranged from 5.33 to pcf, with a weighted average density of 7.41 pcf. About Waste Receptacles The involved commodities are waste receptacles constructed of steel or concrete. As shown in the examples below, these waste receptacles vary in size, design and area of usage. The products encompass those utilized in the public space, including on street corners, parks and shopping malls, as well as those used in offices or homes. Although industry terminology varies as to the name of these commodities they all serve comparable functions. Shipments of Waste Receptacles The photos below and on the next page illustrate just a few of the ways waste receptacles are tendered for shipment. Steel Subject 9, Page 4 of National Motor Freight Traffic Association, Inc.

5 % of Figures in Interval CCSB DOCKET Concrete Transportation Characteristics Density Overall, information of record includes 2,263 density observations for waste receptacles. When these products are separated by material consist, 2,002 density figures emerge for steel waste receptacles. The steel products range in density from 1.04 to pcf, with a simple average density of 5.48 pcf. A frequency distribution for steel waste receptacles is shown below. Steel Waste Receptacles Frequency Distribution 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 0.00% 3.60% 31.82% 28.02% 27.57% 4.35% 1.90% 1.05% 0.95% 0.40% 0.35% Density Intervals (pcf) As the above frequency distribution depicts, the density observations for steel waste receptacles are distributed throughout the range. However, over 87% of the figures are between 2 and 8 pcf National Motor Freight Traffic Association, Inc. Subject 9, Page 5 of 9

6 % of Figures in Interval CCSB DOCKET Information of record for concrete waste receptacles is based on 261 density figures. These concrete products range in density from 4.22 to pcf, with a simple average density of pcf. As shown in the frequency distribution below, while the densities are distributed throughout the density range, there are two spikes, or clusters, of densities within the density range. The first is the 6 but less than 8 pcf interval representing 18.39% of the density observations, and the second is the 15 but less than 22.5 pcf interval representing 22.99% of the density observations. Concrete Waste Receptacles Frequency Distribution 25.00% 22.99% 20.00% 18.39% 15.00% 10.00% 5.75% 7.28% 6.51% 10.73% 14.18% 14.18% 5.00% 0.00% 0.00% 0.00% 0.00% Density Intervals (pcf) When the data for concrete waste receptacles is evaluated on the basis of the proposed density break at 12 pcf, the following ranges and averages are calculated. Density Group (pcf) Density Range (pcf) Average Density (pcf) Less than or greater Handling Waste receptacles are tendered for shipment in a variety of ways, including in fiberboard boxes which may or may not be palletized, packaged in a crate, wrapped in plastic film on a lift truck skid or pallet, strapped to a lift truck skid or pallet, or loose. Freight boxed, crated or tendered on lift truck skids or pallets will generally provide better handling than that tendered loose 2. However, no unusual handling considerations have been reported. 2 While some of the involved products are shown to be tendered loose, the present provisions do not authorize loose shipments. Subject 9, Page 6 of National Motor Freight Traffic Association, Inc.

7 Stowability Generally, when tendered in boxes or crates, a flat load-bearing surface will be present for loading other freight on top; however, some shippers instruct carriers to Do Not Stack. Greater stowability problems may exist when the waste receptacle is tendered wrapped or strapped to a pallet or loose, as other freight may not be top-loaded because of the absence of a regular load-bearing surface. Nevertheless, no specific stowability issues have been reported by carriers. Liability Waste receptacles are not perishable, prone to spontaneous combustion or explosion, or unusually susceptible to theft. One carrier that is unable to provide a claims ratio specific to these products notes that dents and scratches to waste receptacles have been reported when tendered loose or without sufficient interior packing materials. As is the case with other general commodities, waste receptacles tendered in boxes, crates or on lift truck skids or pallets will be afforded greater protection against damage than those tendered loose. When necessary, per Item (Rule) 680, Sec. 1(a), interior packing must be provided to give adequate protection against damage to the freight. A second carrier reports a claims ratio of 0.06% for product shipments moving under item and 0.55% for shipments moving under item 99817, both below the 1% threshold considered typical for LTL freight operations. Responding shippers have indicated a limited number of claims on these commodities. A limited amount of information on the value of these commodities reveals a range from $1.12 to $43.54 per pound, with an average value of $7.24 per pound for steel waste receptacles, and a range from $0.77 to $3.25 per pound, with an average value of $1.63 per pound for concrete waste receptacles. Relationship to CCSB Policies and Guidelines CCSB policy calls for provisions to be as clear as possible to mitigate the potential for interpretation disputes, combining descriptions embracing related commodities and uniformity in provisions addressing the same or similar circumstances. The present language and structure of provisions applying on waste receptacles is incongruous. Items 99815, , and all apply on waste receptacles constructed of steel, but are inconsistently named and described throughout the Classification, resulting in interpretation issues. These interpretation issues could be mitigated by combining the descriptions for the related commodities. Combining these related commodities for simplification and uniformity would be in keeping with CCSB policy. CCSB policy also calls for provisions to reflect a commodity s known transportation characteristics. Information of record for steel waste receptacles shows a range in density from 1.04 to pcf, with an average density of 5.48 pcf. As shown in the frequency distribution on page 5, a predominant concentration of density figures for steel waste receptacles are within a narrow range around the overall average. Under CCSB guidelines, an average density of 5.48 pcf is generally associated with a class 175, which calls for a minimum average density of 5 pcf National Motor Freight Traffic Association, Inc. Subject 9, Page 7 of 9

8 Removing Wastebaskets from item and canceling items 99815, and with reference to a new item for sheet steel Cans, Receptacles or Holders, waste or refuse, or Wastebaskets, at class 175, reflective of the overall average density of these commodities, would be in keeping with CCSB policy and precedent. Such an approach would be consistent with action taken on Docket , Subject 2 (October 2009), involving item 28160, for footwear. No significant negative handling, stowability or liability concerns were reported, and, as such, density was determined to be the primary transportation characteristic. As with steel waste receptacles, footwear was shown to exhibit a wide range of densities from 1.00 to pcf with a significant concentration of the density observations almost 78% clustered around the overall average density of 6.28 pcf. Based on the information of record, and in keeping with CCSB guidelines, that proposal was approved as docketed, assigning class 150, and the provisions first appeared in Supplement 5 to NMF 100-AI, effective January 9, A new Note would also be added to provide for waste receptacles on a steel frame, with or without a wood slatted exterior. Information of record for concrete waste receptacles reveals a range in density from 4.22 to pcf, with an average density of pcf. According to CCSB density guidelines, an average density of pcf is generally associated with a class 70, which calls for a minimum average density of 15 pcf. However, CCSB policies further state that when commodities exhibit a wide range in density that is not accurately reflected by a single class, density-based provisions may be established. As shown in the frequency distribution on page 6, there are two spikes, or clusters, of densities within the overall density range. When the data of record is evaluated on that basis, with a density break at 12 pcf, the following density groupings and class assignments emerge. Density Group (pcf) Average Density (pcf) Guideline Class Density Guideline (pcf) Less than or greater Canceling the provisions of item 99817, for cast concrete waste receptacles, and establishing a new item for Receptacles or Holders, waste or refuse, cast concrete, with a density break at 12 pcf 3, reflective of the two spikes within the overall density range, would be in keeping with CCSB policy and precedent. A similar approach was taken on Docket , Subject 11 (June 2009), involving engine radiator, fuel tank or oil filler caps, as named in item No significant negative handling, stowability or liability concerns were reported, and, as such, density was determined to be the primary transportation characteristic. While the densities were distributed throughout the density range of 2.96 to pcf, there were two spikes, or clusters, of densities within the overall density range. Thus, a single density break was proposed to provide a more accurate reflection of the identified range in density. That proposal was approved as docketed, and the provisions first appeared in Supplement 3 to NMF 100-AI, effective August 22, The density provisions would include reference to Item (Rule) 170, the inadvertence clause. Subject 9, Page 8 of National Motor Freight Traffic Association, Inc.

9 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 9, Page 9 of 9