CCSB Reclassification of Televisions

Transcription

1 CCSB Reclassification of Televisions Proposed Change to Density Base Current Item Sub Screen Size Class 1 > < Sub PCF Class 2 < < > 110 In display or shelf ready packaging with BOL notations and PKG labeling with intent to file a claim. Sub PCF Class 6 < < > 100 In display or shelf ready packaging without shipper intent file a claim.

2 CCSB Reclassification - Issues Screen size under 40 - classification can increase depending upon density to class It can also decrease based upon the density. While classification can decrease this docket also presents an increase in class to shelf ready packaging with filing damage claims. This can alarm the consumer and impact sales to Manufacture's and retailers. Shelf ready display packaging should not be considered into this classification change and for over 30 years TV s have been shipped in this manner without cause. Carton damage is not significant and carriers need to be accountable for their actions. Changes in the four key areas of classification (Handling, Stowability, Density and value) has changed to improve handling & stowability, density improvements and significant value reduction in the last 10 years. These characteristics continue to improve and the current classification item of needs to be reduced downward to reflect these positive changes.

3 Handling & Stowability IMPROVEMENTS Increased Density 6.08 PCF Use of pallets for ease of handling. 42 inch LCD 48x40x90 (100 cube/pallet) 21 units/pallet 46.3 pounds/unit 973 pound/pallet PCF = 9.73 Oversize Pallets based on TV screen size to prevent overhang and improve stack heights. Use of stretch wrap, banding and corner boards to strengthen pallet stack stability. 50 inch Plasma 55x45x101 (144 cube/pallet) 15 units/pallet 72.8 pounds/unit 1092 pounds/pallet PCF = 7.58

4 Handling & Stowability IMPROVEMENTS Density increase as reported of 6.08 PCF. Use of pallets for ease of handling. 55 inch LCD TV 64x48x72 (128 cube/pallet) 14 units/pallet 79.4 pounds/pallet 1112 pounds/pallet PCF = 8.69 Oversize Pallets based on TV screen size to prevent overhang and improve stack heights. Use of stretch wrap, banding and corner boards to strengthen pallet stack stability. 60 inch LCD TV 64x44x77 (125.4 cube/pallet) 12 units/pallet 86 pounds/pallet 1032 pounds/pallet PCF = 8.23

5 CCSB Television - Summary SUMMARY Improved Handling & Stowability oversize pallets, Stack heights and use stretch wrap. Improved Density or increased PCF as reported. Product Values reduced by up to 80% of when originally Classified. Screen sizes < 40 - Favorable handling, Stowability, Density (2005 study 7.9 PCF) and value. All of the above suggest classification reductions are necessary and notes to display packaged not justified.

6 CCSB Television - Recommendation Option 1 Amend item as follows: Screen sizes < 40 classify as 100. Screen sizes > 40 but less than 80 classify as class 150. Screen sizes 80 and > classify as 200. Option 2 Review and receive further comments from the industry. This change can provoke other similar class changes to shelf ready packaged products, unfairly increasing the costs to the Consumer Electronic Industry.

7 CCSB Notice of Proposed Amendments to the NMFC Reclassification of Televisions (TVs) January 29, 2013

8 Key Points Call for Notations on Product and Bills of Lading Handling and Stowability Shelf ready packaging Density 8

9 Additional Marking / Notations Requirement Item Note Requires that Bills of Ladings and shipping packages be marked to indicate that any damage to packaging will result in a claim. For SEL the cost for these requirements would be cost prohibitive. In a global environment these product packaging changes would be a US only requirement. In addition the IS costs to add logic for TV models only to the BOL in multiple WMS platforms would also be costly. Notice...from a practicality standpoint The shippers BOL goes no farther than the LTL carriers origin terminal. What is the reason for the notice of potential claim filing on the box? Will the carriers dockman be aware of this new notice and adjust their handling accordingly? 9

10 Handling and Stowability All SEL TV product is cornerboarded, shrink wrapped and palletized. Including costlier custom size pallets for larger screen sizes. SEL launched freight claims reduction initiatives back in 2010, and as a result have increased our packaging costs dramatically. All product handling requirements are called out in our transportation agreements with our carriers. LTL carriers now have decking widely available Stowability issues are mitigated by this equipment 10

11 Claims History for TV Product shipped LTL claims ratio for TV s shipped via LTL is 0.19%

12 Shelf Ready Packaging Big box retailers reject all carton damaged product, and issue chargebacks i.e. don t pay for them, and in most cases don t return them. It is common in todays retail environment to sell carton damaged freight (of all product) at a discount if that channel exists. Two examples: 12

13 Transportation Characteristics Density Distribution SEL TV density distribution differs greatly from data presented in CCSB docket Product density of our 157 TV models measured reflects: - Average density of 8.81(pcf) vs % average 9.87 (pcf) vs 26% density of 8 <10 is equal to class % 69 % CCSB Density Group (pcf) Density Range (pcf) Average Density (pcf) Percentages of Figures Less than % 4 but less than % 8 or greater % SEL Density Group (pcf) Density Range (pcf) Average Density (pcf) Percentages of Figures Less than % 4 but less than % 8 or greater % 13

14 SONY or make.believe is a registered trademark and/or trademark of Sony Corporation. Names of Sony products and services are the registered trademarks and/or trademarks of Sony Corporation or its Group companies. Other company names and product names are the registered trademarks and/or trademarks of the respective companies