FREIGHT MANAGEMENT SYSTEMS

"Your Freight Is Our Reputation."

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SHIPPING 101

Welcome to your step by step guide through the world of shipping. With all the various rules and regulations, shipping at first glance can appear incomprehensible. But don�t worry, once you understand the basics, you will enjoy the benefits of saving your time and money.

Product Classification
Each product being shipped is defined by a product classification as listed in the National Motor Freight Classification tariff often referred to as NMFC and assigned an item number. There are eighteen product classes that can range from a low of 50 to a high of 500. The item number relates, not only to the product being shipped, but also to density, packaging, hazardous materials, and liability. Classification also figures into the rate base. The NMFC number should always be listed on the bill of lading with an accurate product description.

Shipping Costs
Unfortunately there is no simple explanation for how freight rates are calculated. There are numerous factors that come into play: the product classification, density, weight, value, distance the shipment is moving, and damageability. Keep in mind, the higher the class, the higher the shipping rate will be.

Packaging & Labeling
Proper packaging is one of the most important things that you can do to ensure that your product delivers damage free. Be sure your cartons are of the correct strength to hold the amount you are packing. Do not �overstuff� the cartons. Be sure each carton is clearly labeled including the complete shipper and consignee name, address, and telephone number. If you are shipping by a LTL carrier, it is advisable to put the cartons on a skid and shrink wrap. The cartons should be stacked on the skid evenly with no overhang. Be sure to put a label on at least one side of the skid, but preferably both sides of the skid.

The Bill of Lading
Properly completed, this gives the carrier all the information they need to deliver your product. FMS will assist you with this process.

Receiving �Clear� Shipments
Clear shipments simply mean that there were no shortages or signs of visible damage at the time of delivery. Once your shipment arrives, before you sign the delivery receipt, be sure you have received the correct product, number of skid(s) and verify the piece and/or carton count. Inspect the shipment for signs of damage.

Receiving Damaged or �Short� Shipments
Occasionally, freight will be damaged in transit. Each carrier has a basic process for filing a claim and procedures for accepting and making payment for the claim. Listed below are some necessary steps to make this a valid process.

1. Should you notice damaged or missing product upon receipt of freight, you must write on the delivery receipt, with the driver still present, that there is a problem with the shipment. Be as specific as possible. Keep a copy of the delivery receipt for your records. If you do not make a notation on the delivery receipt at the time of delivery, chances of receiving a payment on the claim is greatly lessened.

2. Provided that you have made an exception on the delivery receipt, your next step is to contact the local terminal who will send and/or fax you a claim form. The claim form should be self-explanatory. The local terminal will assist you in this process should you encounter problems or need further assistance.

3. If the damage was concealed and could not be noticed at the time of delivery, you must request an inspection of the freight. All merchandise should be retained in the same shipping container and in the same condition, as it was when the loss or damage was discovered. Payments for claims that are concealed are usually divided into thirds. The shipper, carrier and consignee (receiver) are each responsible for one third.

4. The freight company, more than likely, will ask you for the following information:

A copy of the delivery receipt with the exception noted

A copy of the paid freight bill, i.e. a signed statement verifying the freight charges have been paid

Copy of original invoice

Actual claim, in writing, of dollar amount claimed.