# Presentation: 021601

## eTARIFF 400-N

- Welcome to the
- AMSA – Introduction to Tariff 400-N

## Housekeeping Items

- <date/time>

*Housekeeping Items*

- Turn cell phones and pagers to OFF or to *vviibbbbrrrraaattee*.
- Be sure to use only smoking areas designated by the hotel.

## What is Tariff 400-N anyway?

- A replacement of Tariff 400
- that is an electronic Zip Code driven,
- modified “single-factor” tariff.

## Why replace Tariff 400?

- Tariff 400 is too complex – product of 60 years of revisions.
- Source of customer confusion; estimating problems and billing errors.
- Tariff needs to be modernized and made easier to use and to understand.

## Major Componentsof New Tariff

**3-Digit Zip Code to 3-Digit Zip Code Linehaul Rates **
**      ****⇨  ****Geographic/Labor**
**          ****Cost Based**
**Complex accessorials cancelled and replaced with a hundredweight origin/destination charge to be shown as separate item**

**Obsolete Accessorials Cancelled**
**Full Packing Jobs on Hundredweight Rate Basis**
**Partial Pack on Container Basis**
**Rating/Estimating Totally Electronic**

## Measured Linehaul Cost Factors

- Base Linehaul Reflects Origin/Destination Cost Factors:
_**Geographic Component**_ - Cost of doing business in zip areas (travel expenses, meals, hotel rooms, taxes, tires, rent, utilities, and building repairs).
_**Labor Index Component**_ – Personnel costs (warehousemen, packers, helpers, and local drivers).

## Restructured Transportation Charges

_**Zip Code-Based Charges**_** still include loading, unloading, vehicle transportation and basic 60****¢ valuation****.**
**Charges **_**also reflect expenses factors; **_**same distance moves are no longer rated the same.**
_**Short Haul Factor**_** established for shipments transported 800 miles or less.**

## Single-Factor Additional Service Charge Developed

**ATC, Stairs, Elevator, Long Carry and Piano and Organ Carry revenue incorporated into new Origin/Destination Service Fee.**
**Weight based charges to be shown in new Item 135 by Service Area/Zip Code.**

## Container Service

**Packing rates apply on *****per***** *****hundredweight basis for full pack***** jobs or *****per container basis for partial pack jobs***** based on shipper’s election.**
**Uses Hundredweight Packing Rates that are simple to bill and result in increased load efficiencies.**
**Overtime, Debris Removal & Crating provisions retained.**

## Accessorials Restructured and Simplified

**Bulky articles simplified with one rate for all classifications.**
**Bridges & Tolls changed to apply as **_**advanced charges**_** (Item 35).**
**SIT P & D no longer alternates with transportation charges.**

## Obsolete Accessorials Cancelled

**Item 18, Shipments on Tour**
**Item 29, COD Shipments**
**Item 40, Signature Service**
**Item 59, Travel Time**
**Item 150, Empty Miles**
**Item 165, Advertising on Carrier Equipment**
**Item 197, Forklifts**
**Item 205 & 206, Papering & Banding**
**Item 220, Supervisory Personnel**

## New Tariff Attributes

**Provides quick and easy way to estimate and rate**
**    ****shipments**
**Based on geographic/labor adjusted pricing**
**Utilizes hundredweight packing rates that are simple to bill and result in increased load efficiencies**
**Customer-Friendly pricing system that’s easy to understand and to explain**
**A Tariff System that promotes accuracy and is audit-friendly**

## Benefits for GSA

**Fewer billing errors; fewer line items on invoices**
**Reduced audit costs with simplified invoices**
**Less confusing to the transferee; most services included in O/D service fee**

**Controlled packing costs with cwt pricing**
**Easy to understand costs based on zip codes**
**No more surprise origin and destination charges**

## Tariff 400-N becomes effective January 1, 2002

*The industry’s first electronic tariff*
*that’s zip code based*
*to provide fast, accurate pricing*
*that’s easy to use and *
*easy to understand.*