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

Transcription

1 Re: Radioactive Materials Item CCSB Contact: Erin N. Topper Telephone (703) Proponent: Commodity Classification Standards Board Present Classification Provisions Item Description Class Radioactive Materials, Articles or Isotopes, in shipping containers as provided in Item 540, see Notes, items , , and : Sub 1 Released value not exceeding 40 cents per pound Sub 2 Released value exceeding 40 cents per pound but not exceeding $1.00 per pound Sub 3 Released value exceeding $1.00 per pound but not exceeding $5.00 per pound NOTE Shipment may include accompanying tools for opening and closing container NOTE The released value must be entered on shipping order and bill of lading in the following form: "The agreed or declared value of the property is hereby specifically stated by the shipper to be not exceeding per pound." NOTE If shipper declines or fails to declare the value or agree to a released value in writing, the shipment will not be accepted, but if shipment is inadvertently accepted, charges will initially be assessed on basis of the class for the highest value provided. Upon proof of lower actual value, the freight charges will be adjusted to those that would apply if the shipment had been released to its actual value. In no instance will carriers' liability exceed the highest value for which classes are provided. (Classes herein based on released value have been authorized by the Interstate Commerce Commission in Released Rates Order No. MC- 558 of January 27, 1964, as amended May 15, 1964 and January 14, 1980.) NOTE Classes apply on materials, articles or isotopes subject to the packaging, marking and labeling requirements of the DOT for radioactive materials as provided in the DOT's hazardous materials regulations. Articles or materials excepted from specific packaging, marking or labeling requirements of the DOT regulations will be subject to other applicable provisions of this tariff National Motor Freight Traffic Association, Inc. Subject 5, Page 1 of 7

2 Proposed Classification Provisions Item Description Class Radioactive Materials, see Notes, items A-NEW and , in U.S. DOTauthorized containers, released to a value not exceeding $25.00 per pound, see Note, item B-NEW A-NEW NOTE Applies on materials regulated by the U.S. Department of Transportation as a Hazard Class 7, Radioactive Material, as defined in 49 CFR and required to bear a notice to that effect on bills of lading and packaging NOTE No Change. B-NEW NOTE Unless otherwise provided in individual participating carriers' tariffs, materials moving under the provisions of item shall only be accepted subject to a maximum liability of $25.00 per pound. If shipper fails to declare a value, or declares a value in excess of $25.00 per pound, shipment will not be accepted, but if the shipment is inadvertently accepted, it will be considered as being released to a value not exceeding $25.00 per pound and the shipment will move subject to such limitation of liability. In no instance will carriers' liability exceed the actual value of the material lost or damaged NOTE Cancel; no further application NOTE Cancel; no further application NOTE Cancel; no further application. Analysis Research Project 1196 Research Project 1196 on radioactive materials was initiated in August of 2013 based on a review of regulated hazardous materials. In conjunction with the project, questionnaires were mailed to 145 potential shippers of the involved materials and 15 associations believed to represent those shippers, in August and November of From those mailings, usable information was received from one company; two companies responded, but did not provide usable data; and ten companies reported that they do not ship these materials. Of the associations contacted, four responded stating that they do not represent shippers of the involved materials. History of Provisions Provisions for radioactive materials, including the initial version of Note, item , were established as a result of action taken on Docket 44, Subject 53 (January, 1950) and first appeared in Supplement 9 to NMFC No. 10, effective June 10, Subject 5, Page 2 of National Motor Freight Traffic Association, Inc.

3 As a result of action taken on Docket 88, Subject 86 (March-April, 1959), and as authorized by the former Interstate Commerce Commission (ICC), the current released value provisions, including Notes, items and , were established. The action was prompted by reports of carriers being asked to transport shipments of these materials valued in excess of $1,500,000 without being given notice of the extraordinary value of such materials. The provisions first appeared in Supplement 10 to NMFC A-7, effective July 2, The initial version of Note, item was established as a result of action taken on Docket 132, Subject 108 (January, 1968) and first appeared in Supplement 6 to NMFC A-10, effective October 3, About Radioactive Materials Radioactive materials have or produce a powerful and dangerous form of energy, called radiation. Hazard Class 7 materials, as designated and regulated by the U.S. Department of Transportation (DOT), are defined in 49 CFR Radioactive materials are used for a variety of purposes, including medical diagnosis and therapy, oil exploration, materials testing, weapons production, electric power production, consumer products, and many other applications 1. The photos below are examples of radioactive materials as tendered for shipment. Transportation Characteristics Density The information of record includes 327 density observations submitted by shippers, carriers, and obtained from the CCSB s Density Study 2. The densities range from 2.00 to pcf, with an average of pcf. The overall frequency distribution is on the following page. 1 (accessed April, 2014) 2 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 5, Page 3 of 7

4 % of Figures in Interval 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Frequency Distribution 48.62% 29.05% 0.00% 0.00% 1.53% 2.45% 2.14% 1.22% 3.98% 4.89% 6.12% Density Intervals (pcf) Handling Radioactive materials are generally tendered in boxes or drums. When tendered on a lift truck skid or pallet, shipments should be readily handled with mechanical equipment. Due to the hazardous nature of the material, however, extra care and attention is necessary. Training carrier employees in handling hazardous materials and then supervising them to ensure compliance with DOT regulations takes additional time, paperwork and extra personnel than that required when transporting nonhazardous freight. Personnel who must be trained in the intricacies of handling hazardous materials include: dispatchers, drivers (pickup, line-haul and delivery), driver supervisors, billing clerks, billing supervisors, terminal managers, freight handlers, dock foremen, maintenance personnel, safety and claims personnel, and even sales personnel. The carrier s driver must check the accuracy of the information provided on the bill of lading and confirm that the shipper s compliance certification statement is included. Further, the driver must accurately count the number of pieces tendered, verify the inclusion of an emergency contact telephone number and verify the application of the proper hazard labels 3. It is also imperative that the driver be aware of the type of freight already in the vehicle to ensure that coloading prohibitions and segregation requirements are complied with. The driver must also be aware of the threshold quantities of hazardous materials that will trigger the need to display the appropriate warning placards on the vehicle. If placards are required, the driver must ensure that they are properly displayed on the vehicle (visible from the front, rear and both sides) 4. The driver must also place the shipping documents for all hazardous materials on top of all documents for nonhazardous freight, or distinctively tab each hazardous materials shipping paper, and the hazardous materials documents must be kept 3 49 CFR , , , , , , CFR Subject 5, Page 4 of National Motor Freight Traffic Association, Inc.

5 within the driver s reach at all times 5. Considering the thousands of hazardous materials handled daily by for-hire carriers and the inescapable fact that leaks, spills, fires and accidents occur, many carriers equip each vehicle transporting hazardous materials with a copy of the Emergency Response Guidebook, and the driver is trained in its use 6. In addition to the information in the Emergency Response Guidebook, virtually every carrier has its own rules that detail the actions to be taken by drivers in the event of problems involving hazardous materials. Carrier billing personnel must be trained to recognize hazardous materials shipments and to accurately transfer all information on these materials from the bill of lading to the freight bill (a copy of which is used to move the freight through the carrier s system to its destination). Additionally, many carriers require that freight bills pertaining to hazardous materials be flagged as a means to ensure that freight handlers and drivers are aware of the dangers presented by the material. Terminal managers, dock foremen and freight handlers must all be trained to be familiar with the care and attention required in the handling of hazardous materials, including the coloading prohibitions and segregation of freight bearing different DOT-required hazard designation labels. Further, complying with the involved handling regulations requires at least one dedicated space on carrier docks for hazardous materials. Most general freight does not require a separate space on the carriers docks. Stowability When tendered in boxes or drums, a flat load-bearing surface may be present, but extra care and attention should nevertheless be given due to the hazardous nature of the freight. Under DOT regulations, coloading prohibitions and segregation requirements apply on radioactive materials, as per the table below 7. These restrictions can limit where in the vehicle and with what freight the carrier can stow the shipments. This can result in less than full utilization of vehicle capacity and/or necessitate the dispatch of more than one vehicle. Hazard Class or Division 1.1 [or] Radioactive materials (7) X X O X=Coloading Prohibition O=Segregation Requirement Liability Radioactive materials are very hazardous. A release of material can lead to significant damage to freight with which stowed and carrier equipment, and exposure can be harmful to carrier personnel and the general public. According to the DOT s Office of Hazardous Materials Safety s Incident Reports Database, from January 1, 2011 through December 31, 2013, there were 12 incidents involving radioactive materials transported by highway. The cost of damages for four of those incidents totaled $107, A limited amount of information received on the value per pound indicates a range from $0.34 to $2,500.00, with an average of $1, per pound CFR (e) 6 The DOT hazardous materials regulations ( (a) and (a)) require that specific emergency response information be displayed on shipping papers or another document accompanying the shipment. In order to comply with these regulations many shippers require carriers handling their freight to equip vehicles with a copy of the Emergency Response Guidebook CFR National Motor Freight Traffic Association, Inc. Subject 5, Page 5 of 7

6 Relationship to CCSB Policies and Guidelines CCSB policies with respect to handling, stowability and liability state that when these transportation characteristics are unusual or significant, they may be contributing factors in the assignment of classes. As indicated, handling and stowing radioactive materials require extra care and attention due to the hazards involved and the applicable regulations. When unitized for shipment, freight may be handled with mechanical equipment. Shipments of radioactive materials are subject to coloading restrictions and segregation requirements. Additionally, the liability assumed by the carrier when transporting radioactive materials is greater than that typically assumed when transporting most general freight. Per the precedence of hazards from the DOT regulations, and found in Sec. 3 of NMFC Item (Rule) 540, Hazard Class 7, radioactive materials, is the most hazardous class/division. The table below lists DOT hazard classes/divisions and packing groups in order of descending degree of hazard. Table of Precedence in Order of Descending Hazard 1. Class 7 (radioactive materials, other than limited quantities). 2. Division 2.3 (poisonous gases). 3. Division 2.1 (flammable gases). 4. Division 2.2 (nonflammable gases). 5. Division 6.1 (poisonous liquids), Packing Group I, poisonous-by-inhalation only. When establishing provisions for other hazardous materials, precedent has been to assign classes higher than those called for under the density guidelines, reflective of the respective hazards involved. In this instance, using the DOT s precedence of hazard, the degree of hazard of the involved Hazard Class 7 materials was compared to that of Poison Gas, Hazard Class 2, Division 2.3, Hazard Zone A, as named in sub 1 of item (class 200), and Flammable Gas, Hazard Class 2, Division 2.1, as named in item (class 125), to determine the relative degree of hazard of the materials. Based on that comparison, it would be in keeping with CCSB policies and precedent to assign a class 250 in item for materials offered for transportation as Hazard Class 7, Radioactive Material. The current released value provisions in item were authorized by the former Interstate Commerce Commission and became effective in 1964 in consideration of the extraordinary value of some of these materials. In this regard, information on the present record reveals values as high as $2, per pound. Accounting for inflation, using the Producer Price Index (PPI), the current maximum released valuation of $5.00 per pound would be adjusted to $29.24 per pound. However, the highest per pound released valuation found in the NMFC is $25.00 per pound for Machines, Systems or Devices, data processing, or Components, Parts or Peripherals thereof, as named in item Adjusting the released valuation in item to not exceeding $25.00 per pound would recognize the impact of inflation and be within NMFC precedent. Concurrently, a new Note would be added to item 8 See CCSB Docket , Subject 2 (September, 2012). Subject 5, Page 6 of National Motor Freight Traffic Association, Inc.

7 stipulating that unless otherwise provided in individual participating carriers tariffs, materials moving under the provisions of item shall only be accepted subject to a maximum liability of $25.00 per pound. The Note would further provide for an inadvertence clause to address situations where a value is not declared, or declared in excess of $25.00 per pound. It would also be in keeping with CCSB clarification policies and precedent to establish a new Note to state that item applies on radioactive material, as defined in 49 CFR Notes, items , and would be canceled as having no further application. Based on the information of record, this proposal, as docketed, is in keeping with CCSB policies and precedent National Motor Freight Traffic Association, Inc. Subject 5, Page 7 of 7