Proposed Rule2021-13889
Implementation of Household Goods Working Group Recommendations
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Published
August 10, 2021
Issuing agencies
Transportation DepartmentFederal Motor Carrier Safety Administration
Abstract
FMCSA proposes to update the Transportation of Household Goods regulations to incorporate recommendations from the Household Goods Consumer Protection Working Group (Working Group) contained in the Recommendations to the U.S. Department of Transportation to Improve Household Goods Consumer Education, Simplify and Reduce Paperwork, and Condense FMCSA Publication ESA 03005 (Recommendations Report). The Agency proposes to update the regulations to reflect those aspects of the Recommendations Report which require a rulemaking to implement and are within the Agency's authority. The proposed updates based on these recommendations would result in an aggregate reduction in costs for household goods motor carriers and provide clarity for individual shippers.
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[Federal Register Volume 86, Number 151 (Tuesday, August 10, 2021)]
[Proposed Rules]
[Pages 43814-43842]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-13889]
[[Page 43813]]
Vol. 86
Tuesday,
No. 151
August 10, 2021
Part III
Department of Transportation
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Federal Motor Carrier Safety Administration
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49 CFR Parts 371 and 375
Implementation of Household Goods Working Group Recommendations;
Proposed Rule
Federal Register / Vol. 86 , No. 151 / Tuesday, August 10, 2021 /
Proposed Rules
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
49 CFR Parts 371 and 375
[Docket No. FMCSA-2020-0205]
RIN 2126-AC35
Implementation of Household Goods Working Group Recommendations
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.
ACTION: Notice of proposed rulemaking.
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SUMMARY: FMCSA proposes to update the Transportation of Household Goods
regulations to incorporate recommendations from the Household Goods
Consumer Protection Working Group (Working Group) contained in the
Recommendations to the U.S. Department of Transportation to Improve
Household Goods Consumer Education, Simplify and Reduce Paperwork, and
Condense FMCSA Publication ESA 03005 (Recommendations Report). The
Agency proposes to update the regulations to reflect those aspects of
the Recommendations Report which require a rulemaking to implement and
are within the Agency's authority. The proposed updates based on these
recommendations would result in an aggregate reduction in costs for
household goods motor carriers and provide clarity for individual
shippers.
DATES: Comments must be received on or before October 12, 2021.
Comments on the information collection must be received on or before
October 12, 2021.
ADDRESSES: You may submit comments identified by Docket Number FMCSA-
2020-0205 using any of the following methods:
<bullet> Go to <a href="https://www.regulations.gov/docket/FMCSA-2020-0205/document">https://www.regulations.gov/docket/FMCSA-2020-0205/document</a>. Follow the online instructions for submitting comments.
<bullet> Mail: Dockets Operations, U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor,
Room W12-140, Washington, DC 20590-0001.
<bullet> Hand Delivery or Courier: Dockets Operations, U.S.
Department of Transportation, 1200 New Jersey Avenue SE, West Building,
Ground Floor, Room W12-140, Washington, DC 20590-0001, between 9 a.m.
and 5 p.m., Monday through Friday, except Federal holidays. To be sure
someone is there to help you, please call (202) 366-9317 or (202) 366-
9826 before visiting Dockets Operations.
<bullet> Fax: (202) 493-2251.
FOR FURTHER INFORMATION CONTACT: Ms. Monique Riddick, Commercial
Enforcement and Investigations Division, Office of Enforcement and
Compliance, Federal Motor Carrier Safety Administration, 1200 New
Jersey Avenue SE, Washington, DC 20590-0001; (202) 366-0073;
<a href="/cdn-cgi/l/email-protection#b9f4d6d7d0c8ccdc97cbd0ddddd0dad2f9ddd6cd97ded6cf"><span class="__cf_email__" data-cfemail="a7eac8c9ced6d2c289d5cec3c3cec4cce7c3c8d389c0c8d1">[email protected]</span></a>. If you have questions on viewing or submitting
material to the docket, contact Dockets Operations, (202) 366-9826.
SUPPLEMENTARY INFORMATION: This notice of proposed rulemaking (NPRM) is
organized as follows:
I. Public Participation and Request for Comments
A. Submitting Comments
B. Viewing Comments and Documents
C. Privacy Act
D. Advance Notice of Proposed Rulemaking Not Required
E. Comments on the Information Collection
II. Executive Summary
A. Purpose of the Amendments
B. Summary of the Major Provisions
C. Costs and Benefits
III. Abbreviations
IV. Legal Basis
V. Background
VI. Discussion of Proposed Rulemaking
VII. International Impacts
VIII. Section-by-Section Analysis
IX. Regulatory Analyses
A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563
(Improving Regulation and Regulatory Review), and DOT Regulatory
Policies and Procedures
B. Congressional Review Act
C. Regulatory Flexibility Act (Small Entities)
D. Assistance for Small Entities
E. Unfunded Mandates Reform Act of 1995
F. Paperwork Reduction Act
G. E.O. 13132 (Federalism)
H. Privacy
I. E.O. 13175 (Indian Tribal Governments)
J. National Environmental Policy Act of 1969
I. Public Participation and Request for Comments
A. Submitting Comments
If you submit a comment, please include the docket number for this
NPRM (Docket No. FMCSA-2020-0205), indicate the specific section of
this document to which your comment applies, and provide a reason for
each suggestion or recommendation. You may submit your comments and
material online or by fax, mail, or hand delivery, but please use only
one of these means. FMCSA recommends that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so that FMCSA can contact you if there are questions
regarding your submission.
To submit your comment online, go to <a href="https://www.regulations.gov/docket/FMCSA-2020-0205/document">https://www.regulations.gov/docket/FMCSA-2020-0205/document</a>, click on this NPRM, click ``Comment,''
and type your comment into the text box on the following screen.
If you submit your comments by mail or hand delivery, submit them
in an unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit comments by mail and would
like to know that they reached the facility, please enclose a stamped,
self-addressed postcard or envelope.
FMCSA will consider all comments and material received during the
comment period and may make changes based on your comments.
Confidential Business Information
CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA, 5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to the NPRM contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this NPRM, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission that
constitutes CBI as ``PROPIN'' to indicate it contains proprietary
information. FMCSA will treat such marked submissions as confidential
under the FOIA, and they will not be placed in the public docket of the
NPRM. Submissions containing CBI should be sent to Mr. Brian Dahlin,
Chief, Regulatory Analysis Division, Office of Policy, Federal Motor
Carrier Safety Administration, 1200 New Jersey Avenue SE, Washington,
DC 20590-0001. Any comments FMCSA receives which are not specifically
designated as CBI will be placed in the public docket for this
rulemaking.
FMCSA will consider all comments and material received during the
comment period.
B. Viewing Comments and Documents
To view any documents mentioned as being available in the docket,
go to <a href="https://www.regulations.gov/docket/FMCSA-2020-0205/document">https://www.regulations.gov/docket/FMCSA-2020-0205/document</a> and
choose the document to review. To view comments, click this NPRM, and
click ``Browse Comments.'' If you do not have access to the internet,
you may view the docket online by visiting Dockets Operations in Room
W12-140 on the ground floor of the DOT West Building, 1200 New Jersey
Avenue SE, Washington, DC 20590-0001, between 9
[[Page 43815]]
a.m. and 5 p.m., Monday through Friday, except Federal holidays. To be
sure someone is there to help you, please call (202) 366-9317 or (202)
366-9826 before visiting Dockets Operations.
C. Privacy Act
In accordance with 5 U.S.C. 553(c), DOT solicits comments from the
public to better inform its rulemaking process. DOT posts these
comments, without edit, including any personal information the
commenter provides, to <a href="http://www.regulations.gov">www.regulations.gov</a>, as described in the system
of records notice (DOT/ALL-14 FDMS), which can be reviewed at
<a href="http://www.transportation.gov/privacy">www.transportation.gov/privacy</a>.
D. Advance Notice of Proposed Rulemaking Not Required
This rulemaking is under the authority of several provisions in
title 49 U.S.C., subtitle IV, part B and is not a safety rule under
title 49 U.S.C., subtitle VI, part B. This rulemaking is therefore not
subject to the requirement under 49 U.S.C. 31136(g) to publish an
advance notice of proposed rulemaking or proceed with a negotiated
rulemaking.
E. Comments on the Information Collection
Written comments and recommendations for the information collection
discussed in this NPRM should be sent to FMCSA within 60 days of
publication using any of the methods described in ``Public
Participation and Request for Comments'' above.
II. Executive Summary
A. Purpose of the Amendments
FMCSA proposes to incorporate certain recommendations from the
Working Group's Recommendations Report into the regulations at 49 CFR
part 375. These recommendations, when implemented, would offer
streamlined documentation requirements and provide opportunity for
increased efficiency for the transportation of household goods for
individual shippers by interstate household goods motor carriers and
service by household goods brokers, improve consumer education and
protection for individual shippers in need of their services, and
combat fraud. The Working Group was established and provided
recommendations pursuant to section 5503 of the Fixing America's
Surface Transportation Act (FAST Act), Public Law 114-94, 129 Stat.
1312, 1551 (Dec. 4, 2015).
B. Summary of the Major Provisions
The proposed rule would implement the majority of the Working
Group's recommendations that require a rulemaking. These
recommendations would update a variety of regulatory requirements under
49 CFR part 375.
The first recommendation from the Working Group that is being
proposed in this NPRM is to revise Appendix A to part 375 with an
updated version of the Your Rights and Responsibilities When You Move
booklet (Rights and Responsibilities). The updated Rights and
Responsibilities booklet would contain the same information as the 2013
version of the booklet with some modifications to conform with the
other proposed changes in this NPRM, which are discussed below, and to
increase clarity of the information contained in the booklet.
Additionally, FMCSA is proposing to implement the Working Group's
recommendation to require motor carriers to provide the Rights and
Responsibilities booklet at the same time as the estimate instead of at
the time of the order for service as currently required. These changes
to Appendix A and the Rights and Responsibilities booklet would ensure
that the appendix matches the information contained in the booklet and
that the booklet presents individual shippers with clear and accurate
information earlier in the moving process. FMCSA is also proposing to
remove the requirement in section 375.213(e) for a waiver if the
individual shipper accesses either Ready to Move? or the Rights and
Responsibilities booklet via a hyperlink.
The next recommendation from the Working Group that is being
proposed in this NPRM is to remove the ability of the motor carrier or
individual shipper to revise a binding estimate or a non-binding
estimate. Instead, FMCSA would require the preparation of a new binding
estimate or new non-binding estimate when the individual shipper
tenders additional items or requests additional services. This would
incorporate into the regulations certain provisions from the FMCSA
guidance titled Regulatory Guidance Concerning Household Goods Carriers
Requiring Shippers To Sign Blank or Incomplete Documents (76 FR 50537,
Aug. 15, 2011) (2011 guidance). FMCSA is also proposing to incorporate
other provisions from the 2011 guidance that clarify that an individual
shipper may never be required to sign a blank document, and that the
shipper may be required to sign an incomplete document only when it is
missing certain information that cannot be determined before the
document must be signed. These proposed changes would increase
protection of individual shippers by ensuring that any documents they
are required to sign be as accurate as possible at the time those
documents are signed.
This proposal would also implement the Working Group's
recommendation to allow for virtual surveys of household goods. By
updating the definition of physical survey to include virtual surveys,
this proposed change would allow an option for motor carriers and
individual shippers to use live video to conduct surveys, rather than
requiring motor carriers to survey the household goods to be moved in-
person. A related recommendation to require motor carriers to conduct
surveys beyond a 50-mile radius is also being proposed. Based on the
availability of virtual surveys, this would ensure that every
individual shipper has the option of a survey of their goods prior to
the preparation of an estimate. The implementation of these two
recommendations, as proposed, would reduce the burden on motor carriers
for moves originating within 50 miles of the motor carrier agent's
location by allowing them to conduct surveys remotely, while enhancing
protection of individual shippers who are beyond 50 miles from the
motor carrier agent's location by offering the option for a survey
regardless of where the household goods are located.
This proposal would also implement the Working Group's
recommendations to remove the requirement for an order for service,
update the requirements in the bill of lading, and require the bill of
lading to be provided earlier in the moving process. This proposal
incorporates all of the requirements that are currently part of the
order for service into the bill of lading. FMCSA also proposes to
require the bill of lading to be signed at least 3 days before the
scheduled date of the move in order to ensure that the bill of lading
is provided earlier in the moving process. This would reduce the
paperwork burden on motor carriers while ensuring that individual
shippers would be given the same level of protection as they are under
the current regulations.
FMCSA is also proposing to implement the Working Group's
recommendation to replace the requirement for a freight bill with an
invoice. This proposed change would increase clarity for individual
shippers regarding any outstanding balances that must be paid while
reducing repetitive paperwork for motor carriers.
This proposal would implement the Working Group's recommendation to
require all motor carriers who have a
[[Page 43816]]
website to display prominently, at their option, a link to either Ready
to Move? on the FMCSA website or to a true and accurate copy of Ready
to Move? on their own websites. This would increase the opportunity for
individual shippers to become aware of the information contained in
Ready to Move? earlier in the moving process.
In addition to proposing to implement the Working Group's
recommendations, FMCSA is proposing additional minor changes to the
regulations which are intended to increase clarity and consistency.
C. Benefits and Costs
This proposed rule would affect household goods motor carriers and
individual shippers. Some provisions in this rule would result in costs
for motor carriers (i.e., providing the Rights and Responsibilities
booklet earlier in the process, and providing either in-person or
virtual surveys at locations beyond 50 miles from the motor carrier
agent's location), and some provisions would result in negative costs,
or cost savings (i.e., allowing virtual surveys in place of in-person
surveys, and eliminating the order for service document and including
its information in the bill of lading). The motor carrier efficiencies
discussed would not negatively impact shippers, as the services and
information received today would not change under the proposed rule.
FMCSA does not anticipate that shippers would incur costs as a result
of this proposed rule. FMCSA estimates the total 10-year costs of this
rule, if finalized as proposed, at -$1.6 million (or $1.6 million in
cost savings) discounted at 3 percent, and -$1.3 million (or $1.3
million in cost savings) discounted at 7 percent. Expressed on an
annualized basis, this equates to -$188,000 in costs (or $188,000 in
cost savings) at both a 3 and 7 percent discount rate.
FMCSA does not expect this rule to impact safety. FMCSA does expect
that it would result in benefits related to consumer protection and
potentially motor carrier fuel savings. The proposal would result in
shippers receiving accurate and clear information earlier in the
process, enabling them to make more informed and better decisions
regarding which household goods motor carrier to hire. Additionally,
the proposal would aid in obtaining more accurate estimates of moving
fees based on physical surveys for those interstate moves that are
beyond 50 miles from a motor carrier agent's location.
III. Abbreviations
AMSA American Moving and Storage Association
ATA American Trucking Associations
ATRI American Transportation Research Institute
CAGR Compound Average Growth rate
CE Categorical Exclusion
CFR Code of Federal Regulations
DOT Department of Transportation
E.O. Executive Order
FAST Act Fixing America's Surface Transportation Act
FMCSA Federal Motor Carrier Safety Administration
FOIA Freedom of Information Act
FR Federal Register
HHG Household goods
ICC Interstate Commerce Commission
MAP-21 Moving Ahead for Progress in the 21st Century Act
MCMIS Motor Carrier Management Information System
MCSAP Motor Carrier Safety Assistance Program
NAICS North American Industry Classification System
OMB Office of Management and Budget
PIA Privacy Impact Assessment
PII Personally Identifiable Information
PTA Privacy Threshold Assessment
SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users
Secretary Secretary of Transportation
STB Surface Transportation Board
U.S.C. United States Code
IV. Legal Basis for the Rulemaking
The purpose of this rulemaking is to propose changes in the
regulations in 49 CFR part 375 applicable to the transportation of
household goods for individual shippers in interstate commerce. Most of
the proposed changes involve FMCSA's implementation of the
recommendations of the Working Group, which was established pursuant to
section 5503 of the Fixing America's Surface Transportation Act (FAST
Act), Public Law 114-94, 129 Stat. 1312, 1551 (Dec. 4, 2015).
Additional changes are being proposed by FMCSA to update provisions in
part 375 and its appendix A.
FMCSA's authority to provide protection for individual shippers of
household goods is found in several sections of 49 U.S.C. subtitle IV,
part B. The sections primarily involved in this rulemaking are 49
U.S.C. 13704, 13707, and 14104. They govern guaranteed service and
charges for transportation, payment of rates, and surveys, estimates,
and weighing of shipments, respectively. The Secretary of
Transportation (the Secretary) has specific authority to issue
regulations, including regulations protecting individual shippers, in
order to carry out 49 U.S.C. subtitle IV, part B with respect to the
transportation of household goods by motor carriers (49 U.S.C.
14104(a)). The Secretary also has broad authority to prescribe
regulations to carry out 49 U.S.C. subtitle IV, part B. 49 U.S.C.
13301(a). This authority has been delegated by the Secretary to FMCSA
(49 CFR 1.87(a)).
V. Background
FMCSA is an operating administration of the United States
Department of Transportation (USDOT). FMCSA's primary mission is to
reduce crashes, injuries, and fatalities involving large trucks and
buses.
In addition to its primary safety mission, FMCSA is responsible for
a national household goods transportation and consumer protection
program that promotes increased compliance through data analysis,
investigations, enforcement, and public education and outreach
activities, and is responsible for licensing and regulating more than
5,000 interstate household goods motor carriers, freight forwarders,
and brokers.
Historically, the Interstate Commerce Commission (ICC) regulated
all aspects of the interstate moving process from assessing the need to
permit entities to participate in the industry, to pricing, to
establishing how claims would be handled. When Congress terminated the
ICC in 1995 (ICC Termination Act of 1995, Pub. L. 104-88, 109 Stat. 803
(Dec. 29, 1995)), it transferred household goods regulation to the
USDOT. Congress established FMCSA in 2000 to carry out the regulation
of commercial motor vehicles, specifically large trucks and buses.
Congress also granted the Agency authority over consumer protection of
individual household goods shippers.
Since FMCSA's inception, Congress has addressed the regulation of
household goods movers through legislation to improve consumer
protection and regulatory authority to ensure compliance by motor
carriers, brokers, and freight forwarders. The legislation is briefly
outlined below:
<bullet> Sections 4201-4216 of the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU),
Public Law 109-59, passed in 2005. These sections of SAFETEA-LU are
also referred to as the ``Household Goods Mover Oversight Enforcement
and Reform Act of 2005;''
<bullet> Sections 32921-32923 of the Moving Ahead for Progress in
the 21st Century Act (MAP-21), Public Law 112-141, passed in 2012. MAP-
21 brought about significant updates to licensing requirements for
household goods motor carriers; and
[[Page 43817]]
<bullet> Section 5503 of the FAST Act, Public Law 114-94, passed in
2015. The FAST Act called for the formation of the Working Group to
develop recommendations on how best to convey relevant information to
consumers with respect to Federal laws that pertain to the interstate
transportation of household goods by motor carriers.
The rationale for this rulemaking to update 49 CFR part 375 is that
the rules contained therein are outdated. Additionally, Appendix A:
Your Rights and Responsibilities When You Move is outdated. The Protect
Your Move website (<a href="http://www.protectyourmove.gov">http://www.protectyourmove.gov</a>) displays the 2013
version of the Rights and Responsibilities booklet, which did not
undergo change through the rulemaking process. The booklet was instead
approved by the FMCSA Administrator for distribution to the household
goods industry and their customers. The booklet was shortened in 2013
to enhance readability and contained new regulatory language from the
Surface Transportation Board (STB) regarding valuation and insurance
and the placement of this language on FMCSA-required transportation
documents.
As stated above, the FAST Act required FMCSA to establish a working
group to provide specific recommendations as outlined below. The
Working Group was comprised of representatives of the Agency, consumer
affairs experts, educators with expertise in how people learn most
effectively, and representatives of the household goods moving
industry. These members represented all facets of the household goods
industry and worked vigorously to produce the Recommendations Report.
Specifically, the FAST Act directed the Working Group to develop
recommendations for FMCSA in the following areas:
1. Condense FMCSA publication ESA 03005 (Ready to Move?) into a
format more easily used by consumers;
2. Use state-of-the-art education techniques and technologies,
including optimizing the use of the internet as an educational tool;
and
3. Reduce and simplify the paperwork required of motor carriers and
shippers in interstate transportation.
The Working Group produced a Recommendations Report \1\ with 19
recommendations for FMCSA, stating:
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\1\ Available at <a href="https://www.fmcsa.dot.gov/fastact/fast-act-hhg-working-group-report-recommendations">https://www.fmcsa.dot.gov/fastact/fast-act-hhg-working-group-report-recommendations</a>. The Recommendations Report is
also in the docket for this rulemaking.
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1. Develop and maintain modern communications tools, platforms, and
partnerships to educate consumers.
2. Develop online (and other) education modules that are short and
easily understood, and aligned with the different phases of the moving
process.
3. Develop and maintain modern tools to assist the moving industry
with its efforts to educate consumers.
4. Provide additional funding for staff and resources dedicated to
household goods consumer education. This funding would allow FMCSA to:
<bullet> Procure full time, year-round, dedicated resources and
personnel (either Federal or contracted) with the expertise needed to
implement state-of-the-art education utilizing the internet as a tool
for the purpose of consumer protection education and outreach efforts.
<bullet> Collect data (such as intake interviews) to ensure that
education and outreach efforts are effective and continuously
improving.
<bullet> Collaborate and build partnerships with industry, the
public, and other organizations.
<bullet> Develop content delivery and messaging tactics for
consumer protection education and outreach.
5. This Working Group recommends the following with regard to
FMCSA-ESA-03-006, Your Rights and Responsibilities When You Move:
<bullet> The 2013 version should be formally adopted by rulemaking
to officially replace the pre-2013 version which FMCSA currently
permits movers to choose to use in lieu of the formally approved
wording.
<bullet> FMCSA should look for opportunities to further condense
and streamline this document.
<bullet> If applicable, and as other recommendations are adopted in
the future, the contents of this document should be updated to reflect
the changes that are implemented as a result of this Working Group's
efforts.
<bullet> It should be acceptable for movers to provide this
document electronically without requiring the shipper to provide
written consent to waive their right to a hard copy.
<bullet> Movers should be required to provide this document earlier
in the move process (along with the estimate instead of before the
order for service).
6. FMCSA's guidance should be formally adopted that if a consumer
tenders additional items or requests additional services prior to load,
and the mover agrees to such additions, the mover should prepare a
completely new estimate (instead of amending the existing one).
Additionally, the mover should maintain a record of the date, time, and
manner that the new estimate was accepted by the shipper.
7. Change the requirement for a ``physical'' survey to a ``visual''
survey. The term ``visual survey'' should include both physical and
virtual surveys.
8. Movers should be required to offer visual surveys for all
household goods shipments, including those that are located over 50-
miles from the mover's location. Consumers should continue to have the
option to waive in writing the visual survey if they choose, but movers
must offer them the option of a visual survey regardless of distance.
9. The requirement for an order for service should be eliminated,
and the unique, critical items from the order for service should be
moved to the bill of lading. (Note: The Working Group is recommending
eliminating the order for service as a requirement of all movers, but
movers that prefer to use an order for service should still be allowed
to do so.)
10. The following changes should be made to the bill of lading
requirements:
<bullet> The carrier's physical address, telephone number, and DOT
number should be added to the bill of lading requirements.
<bullet> The bill of lading should continue to require the
carrier's name, and either the legal or trade name registered with
FMCSA should be acceptable.
<bullet> The requirement to provide names, addresses, and telephone
numbers of additional motor carriers involved in the move should be
eliminated. (However, movers should still be allowed to provide this
information if they choose to.)
<bullet> Any reference to the order for service should be removed
from the bill of lading.
<bullet> Add ``Any identification or registration number you assign
to the shipment'' to the bill of lading requirements (carried over from
the current order for service requirements).
<bullet> A statement should be added that the bill of lading
incorporates by reference all of the services and charges printed on
the estimate.
11. The bill of lading should be made available to consumers prior
to the date of load, at least as early as the time when the order for
service was previously provided (before a mover receives a shipment
from an individual shipper).
12. Remove the requirement for a freight bill, and the written
notices for a freight bill should be transferred to an invoice.
13. Finalize the proposed rulemaking published at 79 FR 23306 (4/
28/14) to
[[Page 43818]]
allow for electronic delivery of all required documents.
14. Eliminate the current requirement for consumers to sign a
written waiver in order to receive their documents electronically.
15. Movers should be required to provide FMCSA publication ESA
03005 (Ready to Move?) when the visual survey is either scheduled or
waived by the consumer.
16. The title of FMCSA publication ESA 03005 should be changed from
Ready to Move? to Choose Your Mover.
17. ESA 03005 should be made available electronically and should be
printable. It should fit on a standard desktop or laptop screen without
requiring scrolling, and it should also be mobile-friendly.
Consideration should be given to how the brochure can be both visually
appealing and also direct consumers' attention to the right places.
18. All movers who have a website should be required to prominently
display, at their option, either a link to the brochure (ESA 03005) on
the FMCSA website or a true and accurate copy of ESA 03005 on their own
websites.
19. ESA 03005 should be condensed to include only the content found
in Appendix H.
The Recommendations Report includes a discussion of potential
benefits to both motor carriers and consumers, which are attributed to
the reduction in paperwork motor carriers are required to issue. The
recommendations of the Working Group seek to provide clarity for
consumers, allowing them to move with confidence and make their moves
more successful. Finally, the Recommendations Report states that these
updates would provide the opportunity for motor carriers to create a
smooth moving experience for consumers.
VI. Discussion of Proposed Rulemaking
FMCSA has reviewed the recommendations contained in the
Recommendations Report and is now proposing changes to 49 CFR part 375
to implement those recommendations that FMCSA believes require a
rulemaking. After considering the recommendations, FMCSA found that
recommendations 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, and 18 would require
a change to the regulations at 49 CFR part 375 to implement.\2\ Those
11 recommendations are therefore considered in this proposed rule,
including recommendation 15 discussed below, which FMCSA lacks
statutory authority to implement. The Agency will address the remaining
recommendations separate from this rulemaking.
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\2\ See Household Goods Consumer Protection Working Group Report
To Congress. Available at <a href="https://www.fmcsa.dot.gov/mission/policy/household-goods-consumer-protection-working-group-report-congress">https://www.fmcsa.dot.gov/mission/policy/household-goods-consumer-protection-working-group-report-congress</a>.
The Household Goods Consumer Protection Working Group Report To
Congress is also in the docket for this rulemaking.
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The specific proposed changes based on the Recommendations Report
are described below.
A. Recommendations 5 and 14--Appendix A and Electronic Documents
Recommendation 5 suggests that FMCSA incorporate the 2013 version
of the Rights and Responsibilities booklet into appendix A to part 375.
Recommendation 5 also suggests that FMCSA look for ways to further
condense and streamline the 2013 booklet, update the document with any
changes to part 375 from the Recommendations Report, and require movers
to provide this booklet earlier in the moving process.
Under current guidance titled Guidance on FMCSA's Publication: Your
Rights and Responsibilities When You Move, FMCSA permits distribution
of both the 2013 and the pre-2013 version of the Rights and
Responsibilities booklet (78 FR 25782, May 2, 2013). The Working Group
noted that the 2013 version is much more streamlined than the pre-2013
version, which the Working Group stated is long, cumbersome, and less
helpful to consumers. The Working Group also determined that the 2013
version can be further condensed and would need to be updated to
conform with any changes to the regulations in 49 CFR part 375.
FMCSA proposes to revise appendix A to part 375 to formally adopt
an updated version of the Rights and Responsibilities booklet. Appendix
A currently contains the contents of the pre-2013 version of the Rights
and Responsibilities booklet. The updated version of the Rights and
Responsibilities booklet that would be incorporated into appendix A
would contain the same information as the 2013 version of the booklet,
with further updates to reflect the changes to 49 CFR part 375 proposed
by this rulemaking, as discussed below. These edits would ensure that
the content of the booklet conforms with the updated regulations. The
updated Rights and Responsibilities booklet, and therefore appendix A,
would also include various minor changes intended to increase the
clarity of the information in the booklet for individual shippers.
These changes would ensure that the Rights and Responsibilities booklet
and appendix A are consistent and contain the most up-to-date
information for individual shippers.
The updated Rights and Responsibilities booklet would contain the
same information provided in the proposed contents of appendix A in
this rulemaking. Any comments received on the proposed appendix A below
which result in changes in a final rule would therefore be reflected in
the final version of the updated Rights and Responsibilities booklet.
If this NPRM is finalized, motor carriers would be required to provide
the updated Rights and Responsibilities booklet in order to satisfy the
requirements under 49 CFR 375.213. Accordingly, the Agency would
rescind the guidance titled Guidance on FMCSA's Publication: Your
Rights and Responsibilities When You Move (78 FR 25782, May 2, 2013)
because the pre-2013 and 2013 versions of the Rights and
Responsibilities booklet would be inaccurate due to the changes to 49
CFR part 375 in this rulemaking, resulting in individual shipper being
misinformed about their regulatory rights and responsibilities under 49
CFR part 375.
FMCSA proposes to amend 49 CFR 375.213 to require motor carriers to
provide individual shippers with the Rights and Responsibilities
booklet at the time the estimate is provided. The regulations at 49 CFR
375.213 currently require the Rights and Responsibilities booklet to be
provided along with the order for service. The statute at 49 U.S.C.
14104(b)(2) states, in part:
Before the execution of a contract for service, the motor
carrier shall provide the shipper copy of the Department of
Transportation publication OCE 100, entitled ``Your Rights and
Responsibilities When You Move'' required by section 375.213 of
title 49, Code of Federal Regulations (or any successor regulation).
FMCSA is proposing to require the Rights and Responsibilities booklet
be provided along with the estimate, which is prior to the execution of
a contract for service (the bill of lading under the proposed changes
in this rulemaking). Motor carriers would likely see an increased
burden under this proposed change because they would be required to
provide the Rights and Responsibilities booklet earlier in the moving
process and more often than they are currently required. This proposed
change, however, would also increase the likelihood that individual
shippers would become aware of the consumer protection information in
the booklet earlier in the moving process, when it would be more
helpful for them to understand their rights and responsibilities.
[[Page 43819]]
The Working Group Report, in its Recommendations 5 and 14, also
suggests that FMCSA should revise its regulations to make it acceptable
for motor carriers to provide documents, including the Rights and
Responsibilities booklet, electronically without requiring the shipper
to provide written consent to waive their right to a hard copy. These
recommendations were considered by FMCSA after the Working Group Report
in the rulemaking titled ``Electronic Documents and Signatures'' (NPRM,
79 FR 23306, (April 28, 2014), and final rule, 83 FR 16210 (April 17,
2018)) which implemented provisions similar to the related
recommendation 13 by ``eliminating the requirement in Sec. 375.213 for
the Ready to Move brochure and Rights and Responsibilities booklet to
be provided only in paper copy or retrieved at a URL.'' See 83 FR at
16214.
The Electronic Documents final rule retained the provisions of 49
CFR 375.213(e), which provides that a shipper may elect to waive
receipt of a copy of either Ready to Move? or the Rights and
Responsibilities booklet and elect to access the same information via a
hyperlink on the carrier's website to the FMCSA web page. 49 CFR
375.213(a) and (b)(1). When the shipper elects to receive these
documents via the hyperlink, the motor carrier is required to obtain a
signed and dated receipt that includes ``verification of the shipper's
agreement to access the Federal consumer protection information on the
internet.'' 49 CFR 375.213(e)(2).
FMCSA is proposing to remove the requirement in section
375.213(e)(1) for a waiver in order for the individual shipper to have
the option to access either Ready to Move? or the Rights and
Responsibilities booklet via a hyperlink. FMCSA is not proposing to
change the requirements of section 375.213(e)(2) and (3) for the motor
carrier to obtain and retain proof that the shipper agreed to access
one or both of these publications via the internet.\3\ The proposed
change would no longer require a waiver for the individual shipper to
access documents electronically through a hyperlink, but would still
require the motor carrier to obtain a signed receipt as proof of the
individual shipper's acknowledgment that they have received access to
the electronic copies of these documents. These documents are important
to educate individual shippers, and it is necessary ensure that the
motor carrier's records are clear that the shipper was able to access
to these documents through the provided hyperlink.
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\3\ Section 375.213(e) is proposed to be renumbered as section
375.213(f) with substantive changes to allow the proposed insertion
of a new paragraph (e).
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B. Recommendation 6--Estimates
Recommendation 6 from the Recommendations Report suggested that
FMCSA eliminate the motor carrier's ability to revise a binding
estimate or a non-binding estimate and, if additional items are
tendered, require that a new binding estimate or new non-binding
estimate be prepared. The Working Group explained that, while this
practice has been adopted in FMCSA guidance titled, Regulatory Guidance
Concerning Household Goods Carriers Requiring Shippers To Sign Blank or
Incomplete Documents (76 FR 50537, Aug. 15, 2011) (2011 guidance), it
should be formally adopted into the regulations.
FMCSA proposes to amend 49 CFR 375.403(a)(6)(ii), (a)(9), and 49
CFR 375.405(b)(7)(ii) to clarify that a motor carrier must prepare a
new binding or non-binding estimate when an individual shipper tenders
additional household goods or requests additional services. This
proposed change would update the regulatory language for consistency
with FMCSA's interpretation of the regulations issued in response to
question 3 in the 2011 guidance.
Additionally, FMCSA is proposing to incorporate the rest of the
2011 guidance into the regulations in 49 CFR part 375. The 2011
guidance refers to the regulations at Sec. 375.501(d) when discussing
blank documents, incomplete documents, and revised estimates. As
discussed in section VI.D. below, FMCSA is proposing to remove 49 CFR
375.501 from the regulations and move certain items from 49 CFR 375.501
to 49 CFR 375.505, including the requirements that are currently
located at Sec. 375.501(d). Accordingly, the edits incorporating
FMCSA's interpretation of Sec. 375.501(d) found in the 2011 guidance
would be made to paragraph Sec. 375.505(g). FMCSA is proposing to add
subparagraph (3) to proposed paragraph (g) of Sec. 375.505, which
would prevent a motor carrier from requiring an individual shipper to
sign a blank document. The Agency is also proposing an additional
sentence to paragraph (g)(2) of Sec. 375.505 which would allow motor
carriers to omit from documents only that information that cannot be
determined before loading, such as actual shipment weight or unforeseen
charges incurred in transit. These additional changes clarify how blank
and incomplete documents may be involved in the moving process. Blank
and incomplete documents may both be provided to the individual
shippers for informational purposes. Motor carriers may never require
an individual shipper to sign a blank document. Motor carriers may
however require individual shippers to sign incomplete documents only
when the information omitted from the documents cannot be determined
before loading, such as actual shipment weight or unforeseen charges
incurred in transit.
These proposed changes fully incorporate FMCSA's interpretation of
the regulations from the 2011 guidance into 49 CFR part 375. The
proposed changes would protect individual shippers from motor carriers
that attempt improperly to utilize blank documents, incomplete
documents, or revised estimates when such use is a violation of the
regulations in 49 CFR part 375 and would provide additional clarity to
motor carriers regarding proper use of blank and incomplete documents.
FMCSA would rescind the 2011 guidance if the proposed changes discussed
above are finalized.
C. Recommendations 7 and 8--Surveys of Household Goods
Recommendation 7 from the Recommendations Report suggested that
FMCSA change the requirement for a physical survey to a visual survey.
The Working Group stated that the term visual survey should include
both physical and virtual surveys. The Working Group determined that
the term visual survey was necessary to ensure that movers actually see
what they would be moving before preparing an estimate, while
recognizing that technological advances would allow remote surveys
through the use of video capability in addition to physical surveys.
FMCSA proposes to define the term physical survey to include both
on-site and virtual surveys. The requirement for a physical survey
originates in 49 U.S.C 14104(b)(1)(A), which states:
Except as otherwise provided in this subsection, every motor
carrier providing transportation of household goods described in
section 13102(10)(A) as a household goods motor carrier and subject
to jurisdiction under subchapter I of chapter 135 shall conduct a
physical survey of the household goods to be transported on behalf
of a prospective individual shipper and shall provide the shipper
with a written estimate of charges for the transportation and all
related services.
However, there is no definition for the term physical survey in the
statute and FMCSA has not established a definition
[[Page 43820]]
of the term in the regulations under 49 CFR 375. FMCSA therefore
proposes a reasonable interpretation of the statutory term physical
survey in order to give a clear meaning to the term and to resolve any
ambiguity. FMCSA would not change the term physical survey to visual
survey as recommended by the Working Group because FMCSA does not
believe that it can replace the statutory term with a new term.
However, FMCSA has sufficient authority to propose a reasonable
interpretation of the term which meets the functional intent of the
Working Group's recommendation.
FMCSA proposes to define physical survey in 49 CFR 375.103 as ``a
survey which is conducted on-site or virtually. If the survey is
performed virtually, the household goods motor carrier must be able to
view the household goods through live video that allows it to clearly
identify the household goods to be transported.'' The proposed
definition of physical survey would allow for virtual surveys with a
live video component that would permit motor carriers to see the
household goods that are the subject of the survey as if the motor
carrier were performing the survey on-site. Any survey conducted
without a video component, such as verbally over the phone or through
filling out a form, would not be acceptable under this proposed change.
This definition requires both the motor carrier and the individual
shipper to be physically present on a live video in order to perform a
virtual survey.
This proposed change recognizes the significant technological
advances (e.g., use of smart phones, tablets, faster computers) that
have occurred since the passage of SAFETEA-LU and its implementing
regulations, which allow for clear live videos between motor carriers
and individual shippers. Allowing motor carriers to use this technology
to conduct remote surveys of household goods reduces the burden of
those surveys on the motor carriers. Requiring a live visual component
to the survey process ensures that motor carriers provide consumers
with estimates that are as accurate as those prepared following an on-
site survey.
Recommendation 8 from the Recommendations Report suggested that
FMCSA require movers to offer visual surveys for all household goods
shipments, including those that are located over 50 miles from the
motor carrier agent's location. The Working Group determined that, with
the availability of virtual surveys, consumers' ability to obtain a
visual survey should no longer be limited because of distance.
FMCSA proposes to remove the provision under 49 CFR 375.401(a)(1)
that excepts from the physical survey requirement those surveys where
the household goods are located more than 50 miles from the motor
carrier agent's location. FMCSA also proposes to remove similar
language from 49 CFR 371.113(a) to ensure consistency in the
regulations relating to household goods brokers. The statutory language
in 49 U.S.C. 14104(b)(1)(C) states that the written estimate given to
an individual shipper shall be based on a physical survey of the
household goods if the household goods are located within a 50-mile
radius of the location of the carrier's agent preparing the estimate.
Congress enacted this provision in section 4205 of SAFETEA-LU, Public
Law 109-59, 119 Stat. 1144 at 1753-54 (Aug. 10, 2005). Both the statute
and legislative history are silent on whether an estimate should be
based on a physical survey when the household goods are located more
than 50 miles from the location of the carrier's agent. (Id., see also
Sen. Rep. 109-120 at 47-48 (July 29, 2005), and H. Conf. Rep. 109-203
at 1009-1010 (July 28, 2005)). But the Senate report on SAFETEA-LU also
noted that:
Inaccurate estimates based on an inventory provided by a
prospective customer over the telephone or the internet are the
source of many complaints and disputes. It is hoped that requiring
an estimate be based on a visual inspection of the goods to be moved
prior to the execution of a contract will significantly reduce such
disputes.
In 2007, FMCSA adopted regulations to implement this statutory
provision, among others, in Amendments To Implement Certain Provisions
of the Safe, Accountable, Flexible, Efficient Transportation Equity
Act: A Legacy for Users (SAFETEA-LU), 72 FR 36760. The Agency stated
that:
The statute permits two exceptions to the requirement for a
physical survey. First, the motor carrier need not conduct a
physical survey if the household goods are located beyond a 50-mile
radius of the location of the carrier's household goods agent
preparing the written estimate provided to the individual shipper.
72 FR at 36764. Because the statute permitted, but did not require,
that estimates for household goods located more than 50 miles from the
motor carrier agent's location be based on a physical survey, the
implementing regulation, in Sec. 375.401(a)(1) provides:
If the household goods are located beyond a 50-mile radius of
the location of the household goods motor carrier's agent preparing
the estimate, the requirement to base the estimate on a physical
survey does not apply.
See also 72 FR at 36766. Even though household goods carriers and their
agents are not required to perform a physical survey on goods located
more than 50 miles from the motor carrier agent's location, neither the
statute nor the regulation precludes carriers from conducting a
physical survey in such circumstances, if they choose to do so. For
similar reasons, the statute also does not preclude the consideration
of a regulatory requirement for physical inspection of household goods
located beyond the 50-mile radius.
Recommendation 8 in the Recommendations Report states:
Movers should be required to offer visual surveys for all
household goods shipments, including those that are located over 50-
miles from the mover's location. Consumers should continue to have
the option to waive in writing the visual survey if they choose, but
movers must offer them the option of a visual survey regardless of
distance.
As the Recommendations Report explained:
The Working Group also discussed the current exception to the
survey requirements for consumers who are over 50 miles from the HHG
carrier's agent. The reason for this exception is because consumers
living in remote areas may not be able to obtain one or more
estimates if movers were required to travel long distances to
physically inspect shipments. The Working Group determined that
since virtual surveys are a realistic possibility, that consumers'
ability to obtain a visual survey should not now be waived
automatically because of distance. Rather, if consumers' goods are
located more than 50 miles from the mover's agent that is providing
the estimate, they should be given the option of a visual survey.
Consumers should continue to have the option to waive the visual
survey if they choose, but movers must offer them the option of a
visual survey regardless of distance. Movers will be required to
perform a visual survey unless the consumer decides to voluntarily
waive the right for such survey.
Report at 30-31 (emphasis in original). In the Report to Congress in
response to the Working Group's recommendations (submitted in September
2019 as required by section 5503 of the FAST Act), FMCSA addressed
Recommendation 8 as follows:
FMCSA is evaluating the working group's recommendation. If
deemed appropriate by the Administrator/Secretary, FMCSA will
develop proposed regulatory changes for notice and comment
rulemaking. This recommendation would add a potential benefit to the
consumer by preventing unexpected charges for additional household
goods.
Report at 4.
As recognized in the passage above from the Senate Report on
SAFETEA-LU, a physical inspection of the
[[Page 43821]]
household goods to be moved is important because it provides an
accurate inventory, permits the creation of a meaningful estimate
(whether binding or non-binding), and minimizes the opportunity for
both fraudulent actions by the carriers or their agents and/or disputes
with consumers. The development of technology that allows virtual
surveys to be conducted accurately and efficiently by remote electronic
means that can be included within the scope of physical surveys (as
proposed in the NPRM) enables the requirement to be extended to
household goods shippers located more than 50 miles from the motor
carrier agent's location. FMCSA is proposing to adopt this requirement
because it has concluded that 49 U.S.C. 14104(b) does not preclude the
application of a requirement of a physical survey (either on-site or
virtual, as discussed earlier in this proposal). Even if the carrier
would be required to offer a physical survey to all individual
shippers, those individual shippers could still waive the physical
survey, if desired.
In addition, 49 U.S.C. 14104(a) includes a general delegation of
authority to the Agency to adopt regulations for the protection of
individual shippers of household goods. By expanding the required use
of physical surveys (either on-site or virtual) to individual shippers
located beyond 50 miles, the proposed amendment would provide more
shippers with protections and increase the competitive alternatives
available to them. Requiring a physical survey beyond 50 miles could
result in motor carriers performing more surveys of household goods
than they perform under the current regulations. FMCSA estimates
however that all shippers located beyond 50 miles from the motor
carrier agent's location would take advantage of the virtual survey
option, as discussed in section IX.A.
D. Recommendations 9, 10, and 11--Order for Service and Bill of Lading
Recommendation 9 from the Recommendations Report suggested that
FMCSA should eliminate the order for service and add any items on the
order for service that are not already on the bill of lading to that
document. The Working Group explained that the requirement for an order
for service results in an additional paperwork burden for motor
carriers without providing any additional protection for individual
shippers. The Working Group stated that the information required by the
bill of lading and order for service is very similar, therefore they
could be combined to reduce the paperwork burden for motor carriers.
FMCSA proposes to remove the requirement for an order for service
for the shipment of household goods under Part 375. This proposed
change recognizes the significant overlaps in the current order for
service requirements in Sec. 375.501 and the bill of lading
requirements in Sec. 375.505. Additionally, FMCSA proposes to remove
all references to the order for service from Part 375 and replace them
with references to the bill of lading. FMCSA proposes to delete 49 CFR
375.501 and, as discussed below, to update 49 CFR 375.505 with all of
the requirements currently found in Sec. 375.501.
Recommendation 10 from the Recommendations Report suggested that
FMCSA make a variety of updates to the bill of lading requirements:
<bullet> Add the carrier's physical address, telephone number, DOT
number, any identification or registration number assigned to the
shipment, and a statement that the bill of lading incorporates by
reference all of the services and charges printed on the estimate;
<bullet> Continue to require the carrier's name on the bill of
lading, and provide that either the legal or trade name (i.e., doing
business as name) registered with FMCSA is acceptable for use;
<bullet> Eliminate the requirement that names, addresses, and
telephone numbers of additional motor carriers involved in the move be
provided; and
<bullet> Remove references to the order for service;
Recommendation 11 from the Recommendations Report suggested that
FMCSA should require movers to provide the bill of lading to consumers
prior to the date of loading.
FMCSA proposes to update the requirements for a bill of lading
under 49 CFR 375.505 to include requirements currently found in an
order for service. The proposed bill of lading requirements would offer
the same level of protection, but with a lesser paperwork burden. These
updates to the bill of lading requirements include almost all of the
recommended changes in recommendation 10. FMCSA is not proposing to
eliminate the requirement to provide names, addresses, and telephone
numbers of additional motor carriers involved in the move, because this
requirement provides the individual shipper with information that is
often necessary to understand which motor carriers are involved in the
shipment of their household goods.
FMCSA proposes to update Sec. 375.505(b) by adding the
requirements currently found in Sec. 375.501(a) which are not already
covered by Sec. 375.505(b). This proposed change ensures that Sec.
375.505(b) would require the same information on a bill of lading
currently required in an order for service. By ensuring that all the
information from both documents would be included in the bill of
lading, the proposed change would provide the same level of consumer
protection while only requiring a single document and therefore
reducing the burden on motor carriers.
FMCSA also proposes to update 49 CFR 375.505 by adding the
requirements that are currently in 49 CFR 375.501(b) through (e). Under
the proposed change, these sections would be moved to Sec. 375.505(e)
through (h). These sections would also be updated to replace references
to an order for service with references to a bill of lading. FMCSA also
proposes an additional update to the new Sec. 375.505(f) to clarify
that the bill of lading must be signed at both the origin and the
destination of the shipment by the motor carrier and the individual
shipper. These proposed changes would ensure that the regulatory
requirements that are currently in 49 CFR 375.501 are fully
incorporated into 49 CFR 375.505 and would not be lost by removing the
requirement for an order for service.
Additionally, FMCSA proposes to add Sec. 375.505(h) to require
movers to provide the bill of lading to consumers prior to the date of
load. The Working Group recommended that the bill of lading be provided
before the date of the load, at least as early as the order for service
was provided. The current regulations do not have a specific
requirement for when the order for service must be provided to an
individual shipper. However, Sec. 375.501(e) mentions allowing for a
3-day period, if possible, for the individual shipper to rescind the
order for service after it is provided by the motor carrier. FMCSA
proposes to require motor carriers to provide a bill of lading to
individual shippers at least 3 days prior to the date the shipment is
scheduled to be loaded. This proposed approach implements
recommendation 11 and ensures that individual shippers will have
sufficient time to fully read and understand the bill of lading and
decide if they want to rescind it. FMCSA specifically requests public
comment on whether the bill of lading should be provided more or fewer
than 3 days before the date the shipment is scheduled to be loaded.
[[Page 43822]]
E. Recommendation 12--Invoice
Recommendation 12 from the Recommendations Report suggested that
FMCSA remove the requirement for a freight bill, and replace references
in the Federal Motor Carrier Safety Regulations to a freight bill with
references to an invoice. The Working Group stated that the freight
bill requirement is repetitive and unnecessary, evidenced by the fact
that movers typically combine it with the bill of lading. The Working
Group explained that customers who have already paid in full for their
charges find a freight bill confusing, while customers with a balance
due after their deliveries better understand an invoice as a request
for payment.
FMCSA proposes to replace the requirement for a freight bill in
Subpart H of 49 CFR part 375 with a requirement for an invoice. This
proposed change would reduce the need for essentially duplicative
documents, while increasing clarity regarding outstanding charges for
individual shippers. Accordingly, FMCSA proposes to replace the term
``freight bill'' with the word ``invoice'' throughout 49 CFR 375.
F. Recommendations 15 and 18--Ready To Move
Recommendation 15 from the Recommendations Report suggested that
FMCSA require movers to provide FMCSA publication ESA 03005 (Ready to
Move?) when the physical survey is either scheduled or waived by the
consumer. The Working Group determined that consumers are not currently
receiving the brochure at the right time in the moving process, and
that consumers should receive the information contained in the brochure
earlier in the process, before picking a mover. The Working Group
explained that the brochure provides critical information about how to
select a mover and the best time for consumers to receive this
information is during the very early stages of the process.
FMCSA is not proposing to implement recommendation 15. FMCSA does
not believe that the statute at 49 U.S.C. 14104(b)(2) allows Ready to
Move? to be provided earlier than at the time the estimate is provided.
That statutory provision states, in part:
At the time that a motor carrier provides the written estimate
required by paragraph (1), the motor carrier shall provide the
shipper a copy of the Department of Transportation publication
FMCSA-ESA-03-005 (or its successor publication) entitled ``Ready to
Move?''.
FMCSA believes this language explicitly requires Ready to Move? to be
provided when the motor carrier provides the estimate to the individual
shipper. For this reason, FMCSA is not proposing to implement
recommendation 15 at this time.
Recommendation 18 from the Recommendations Report suggested that
FMCSA should require all household goods motor carriers that have a
website to display prominently, at their option, either a link to Ready
to Move? on the FMCSA website or a true and accurate copy of Ready to
Move? on their own websites. The Working Group determined that this
requirement would allow consumers to have access to this information as
soon as they start searching for movers and would ensure broader
distribution.
FMCSA proposes to update 49 CFR 375.213 to include a requirement
for a motor carrier that has a website to display prominently either a
link to Ready to Move? on the FMCSA website or a true and accurate copy
of Ready to Move? on their own website. This proposed change would only
apply to motor carriers that already have a website and does not impose
any requirement for motor carriers to create a website. Requiring motor
carriers to update their existing website including the hyperlink or
electronic document ensures that individual shippers are more likely to
become aware of Ready to Move? earlier in the process when they are
initially looking for motor carriers to contact. The Agency
specifically requests public comment on whether the term ``display
prominently'' provides sufficient clarity to motor carriers regarding
where to include either a link to Ready to Move? on the FMCSA website
or a true and accurate copy of Ready to Move? on their own website. If
the term does not provide sufficient clarity, the Agency specifically
requests public comment on alternative language to ensure that
individual shippers can easily find the required link to Ready to Move?
on the FMCSA website or a true and accurate copy of Ready to Move? on a
motor carrier's website.
G. Additional Proposed Changes
FMCSA proposes to make clarifying changes to 49 CFR part 375 in
addition to the recommendations from the Working Group. The Agency
proposes to define bill of lading as ``both the receipt and the
contract for the transportation of the individual shipper's household
goods.'' This proposed definition would provide additional information
regarding the role of the bill of lading in the household goods moving
process in light of the removal of the order for service requirement.
FMCSA proposes to update the definition of Surface Transportation
Board in 49 CFR 375.103 to reflect that the STB is no longer an agency
within DOT and is an independent establishment of the United States
government. See 49 U.S.C. 1301.
FMCSA proposes to require that motor carriers provide a direct
hyperlink to Ready to Move? and the Rights and Responsibilities booklet
on the Agency's website if they use a hyperlink to provide those
documents to individual shippers under 49 CFR 375.213. This proposed
revision would specify that the hyperlinks be direct to each document
and not to FMCSA's website generally, in order to ensure that
individual shippers who are provided with those hyperlinks are able to
access the required documents without needing to search FMCSA's website
for the required information. The Agency recognizes that the location
of documents on its website may change as the website is updated and
would ensure that their location is not affected by website updates or
updates to the documents themselves.
FMCSA proposes to revise the title of 49 CFR 375.801 to read ``What
types of charges are subject to subpart H?'' instead of ``What types of
charges apply to subpart H?'' This would clarify that 49 CFR 375.801
discusses which types of charges are subject to the requirements of
subpart H.
Overall, the implementation of the proposed changes discussed in
this NPRM are expected to reduce paperwork burden, save money on
printing materials, and save time for regulated entities and
stakeholders. Consumers would have fewer documents to review, approve,
and sign and potentially experience less confusion in a stressful
situation.
VII. International Impacts
The regulations in 49 CFR parts 371 and 375 apply only within the
United States (50 states and the District of Columbia). Motor carriers
and drivers are subject to the laws and regulations of the countries in
which they operate, unless an international agreement states otherwise.
Drivers and carriers should be aware of the regulatory differences
among nations.
VIII. Section-by-Section Analysis
This section-by-section analysis describes the proposed changes in
numerical order.
[[Page 43823]]
A. Section 371.113 May I provide individual shippers with a written
estimate?
Paragraph (a) of this section would be revised to remove the
requirement for household goods to be within 50 miles of the motor
carrier agent's location before a physical survey is required.
B. Section 375.103 What are the definitions of terms used in this part?
In this section, a definition for bill of lading would be added to
clarify the role of the bill of lading as both a contract and a receipt
in the transportation of household goods. The current definition for
order for service would be removed. A definition for physical survey
would also be added, which would allow for virtual surveys. The current
definition for reasonable dispatch would be revised to remove the
reference to the order for service. The current definition for Surface
Transportation Board would be updated to reflect that the STB is no
longer an agency within DOT, but is instead an independent agency.
C. Section 375.211 Must I have an arbitration program?
In paragraph (a) subparagraph (2), the term ``order for service''
would be removed and replaced with ``bill of lading.''
D. Section 375.213 What information must I provide to a prospective
individual shipper?
In this section, the introductory text of paragraph (a) would be
revised and subparagraphs (1) and (2) would be added. The new paragraph
(a) would require both Ready to Move? and the Rights and
Responsibilities booklet to be provided to the individual shipper along
with the estimate. Subparagraphs (1) and (2) would also include a
requirement for motor carriers providing a hyperlink for either of the
documents to the individual shipper to provide a hyperlink directly to
those documents on the FMCSA website.
In the introductory text of paragraph (b), the term ``order for
service'' would be removed and replaced with ``bill of lading'' and the
word ``five'' would be removed and replaced with ``four.'' Paragraph
(b)(1) would be deleted and paragraphs (b)(2) through (b)(5) would be
renumbered as (b)(1) through (b)(4).
Paragraph (e) would be redesignated as paragraph (f) and a new
paragraph (e) would be added, which would require motor carriers that
have a website to display prominently either a link to the Ready to
Move? document on the FMCSA website or a true and accurate copy of that
document on their own websites.
E. Section 375.215 How must I collect charges?
In this section, the requirement for a freight or expense bill in
the first sentence would be replaced with a requirement for an invoice.
F. Section 375.217 How must I collect charges upon delivery?
In paragraph (b), the language regarding an order for service would
be removed.
G. Section 375.221 May I use a charge or credit card plan for payments?
In paragraph (c), the phrase ``for a freight or expense bill''
would be removed and replaced with the phrase ``an invoice.''
H. Section 375.401 Must I estimate charges?
In this section, the introductory text of paragraph (a) would be
revised to require a physical survey for all shipments unless waived,
and to state that the only way to waive the physical survey of
household goods is through a written agreement between an individual
and a motor carrier. Additionally, paragraph (a) would be further
revised so that paragraphs (a)(2)(i) through (a)(2)(iii) would be
redesignated as (a)(1) through (a)(3).
Paragraph (b) would be revised by removing the phrase ``an order
for service'' and replacing it with ``a bill of lading.'' In paragraph
(f), the phrase ``the order for service and'' would be removed in both
places it appears.
I. Section 375.403 How must I provide a binding estimate?
In this section, paragraph (a)(1) would be revised to reflect that
49 CFR 375.401(a) would allow for only one waiver procedure under the
proposed changes discussed above. Paragraphs (a)(6)(ii) and (a)(9)
would be revised to no longer allow for a revised binding estimate and
instead require the preparation of a new binding estimate when an
individual shipper tenders additional household goods or requires
additional services related to the transportation of the household
goods.
J. Section 375.405 How must I provide a non-binding estimate?
In this section, paragraph (b)(7)(ii) would be revised to no longer
allow for a revised non-binding estimate and would instead require the
preparation of a new non-binding estimate when an individual shipper
tenders additional household goods or requires additional services
related to the transportation of the household goods.
In paragraph (c) the language regarding an order for service would
be removed.
K. Section 375.501 Must I write up an order for service?
This section would be deleted in its entirety.
L. Section 375.505 Must I write up a bill of lading?
In this section, paragraph (a) would be revised to clarify that a
motor carrier must prepare and issue a bill of lading at least 3 days
before receiving a shipment of household goods to transport for an
individual shipper. Additionally, the last three sentences in the
paragraph would be removed. Removing these sentences would delete a
discussion of incomplete bills of lading, which would be addressed
under paragraph (h), as well as a reference to an order for service.
Paragraph (b) would be revised to require a bill of lading to
contain 17 items, instead of the 14 items a bill of lading is currently
required to contain. The additional three items, as well as updates to
the other items listed in paragraph (b)(1) through (b)(17), incorporate
requirements currently found in 49 CFR 375.501(a).
In paragraph (d), the word ``bills'' would be removed and replaced
with ``a bill of lading.''
New paragraph (e), which would mirror current paragraph 49 CFR
375.501(b), would be added to this section.
New paragraph (f), which would mirror current paragraph 49 CFR
375.501(c), would be added to this section with updates to replace all
references to an order for service with language regarding a bill of
lading.
New paragraphs (g)(1) through (g)(3) would be added to this
section. Paragraphs (g)(1) and (g)(2) would mirror current paragraphs
49 CFR 375.501(d)(1) and (2) with updates to remove the reference to an
order for service in subparagraph (1) and replacing ``at origin'' with
``before the shipment is loaded'' in subparagraph (2). Subparagraph (3)
would be added to state that a motor carrier cannot require an
individual shipper to sign a blank document.
A new paragraph (h) would be added to this section to require the
motor carrier to provide the bill of lading at least 3 days before
loading and provide the individual shipper a 3-day period after the
individual shipper signs the bill of lading to rescind the bill of
lading. It would also require a motor
[[Page 43824]]
carrier to provide the individual shipper with the opportunity to
rescind the bill of lading without any penalty for a 3-day period after
the individual shipper signs the bill of lading. Paragraph (h) would
also state that, if a new estimate is prepared under Sec. Sec.
375.403(a)(6)(ii) or 375.405(b)(7)(ii), ``the corresponding changes to
the bill of lading from the new estimate do not require a new 3-day
period as otherwise required in this paragraph (h).''
M. Section 375.605 How must I notify an individual shipper of any
service delays?
In paragraph (a), the term ``order for service'' would be removed
and replaced with the term ``bill of lading.''
N. Section 375.801 What types of charges apply to subpart H?
The title of this section would be changed to read ``What types of
charges are subject to subpart H?'' to clarify that 49 CFR 375.801
discusses which types of charges are subject to the requirements of
subpart H. Additionally, the term ``invoice'' would replace the term
``freight bill'' in paragraph (a).
O. Section 375.803 How must I present my freight or expense bill?
In this section, the term ``invoice'' would replace the term
``freight bill'' everywhere it appears, including in the section title.
The new title would read ``How must I present my invoice?''
P. Section 375.805 If I am forced to relinquish a collect-on-delivery
shipment before the payment of ALL charges, how do I collect the
balance?
The term ``invoice'' would replace the term ``freight bill.''
Q. Section 375.807 What actions may I take to collect the charges upon
my freight bill?
In this section, the term ``invoice'' would replace the term
``freight bill'' everywhere it appears, including in the section title.
The new title would read ``What actions may I take to collect the
charges upon my invoice?''
R. Appendix A to Part 375--Your Rights and Responsibilities When You
Move
This appendix would be replaced in its entirety with the
information contained in the updated Your Rights and Responsibilities
When You Move booklet, which would conform with the other revisions to
part 375 discussed in this proposal.
IX. Regulatory Analyses
A. Executive Order (E.O.) 12866 (Regulatory Planning and Review), E.O.
13563 (Improving Regulation and Regulatory Review), and DOT Regulatory
Policies and Procedures
Under section 3(f) of E.O. 12866 (58 FR 51735, October 4, 1993),
Regulatory Planning and Review, as supplemented by E.O. 13563 (76 FR
3821, January 21, 2011), Improving Regulation and Regulatory Review,
this NPRM does not require an assessment of potential costs and
benefits under section 6(a)(3) of E.O. 12866. Accordingly, the Office
of Management and Budget has not reviewed it under those Orders. In
addition, this rule is not significant within the meaning of DOT
regulatory policies and procedures.
Affected Entities
This proposed rule affects household goods motor carriers covered
by the 49 CFR part 375 regulations. These regulations are based on the
commercial statutes with special provisions for household goods
carriers that authorize States, at their discretion, to enforce Federal
rules, but only for interstate household goods transportation. The
motor carrier safety assistance program (MCSAP) statutes do not require
MCSAP grant recipients to adopt compatible commercial regulations for
intrastate transportation not related to safety.\4\ Therefore, FMCSA
anticipates that this rule would affect interstate household goods
motor carriers, and does not include intrastate household goods motor
carriers in the counts of affected entities.
---------------------------------------------------------------------------
\4\ See 49 U.S.C. 31102(c)(2)(Q).
---------------------------------------------------------------------------
FMCSA obtained motor carrier count information from the Motor
Carrier Management Information System (MCMIS), which includes
information submitted to FMCSA by motor carriers the first time they
apply for a DOT number, and then biennially thereafter. The table below
shows the counts of household goods motor carriers in 2019 and
estimates of the number of carriers that would be affected by this rule
annually during the analysis period of 2022 to 2031.
FMCSA estimated the future baseline number of motor carriers by
developing a compound average growth rate (CAGR) using historical
counts from 2014 through 2019. There were 3,472 active household goods
motor carriers in 2014, and 4,297 active household goods motor carriers
in 2019, resulting in a CAGR of 4.36 percent.
This rule would also affect shippers, or consumers who hire
household goods motor carriers. The U.S. Census Bureau estimates that
approximately 7.4 million people moved interstate during 2018, and that
the average household contained 2.63 people. Therefore, we can estimate
that approximately 2.8 million households participated in interstate
moves during 2018 (7,443,306 / 2.63 = 2,830,154).\5\ However, most
interstate moves do not involve a for-hire mover, and thus would not be
affected by this rule. As discussed below, the American Moving and
Storage Association (AMSA) estimated that approximately 20 percent of
interstate household good moves are completed by for-hire movers.\6\
---------------------------------------------------------------------------
\5\ U.S. Census Bureau. 2018: ACS 5-Year Estimates Data
Profiles. Available at: <a href="https://data.census.gov/cedsci/table?d=ACS%205-Year%20Estimates%20Data%20Profiles&table=DP02&tid=ACSDP5Y2018.DP02&vintage=2018&hidePreview=true">https://data.census.gov/cedsci/table?d=ACS%205-Year%20Estimates%20Data%20Profiles&table=DP02&tid=ACSDP5Y2018.DP02&vintage=2018&hidePreview=true</a> (accessed October 6, 2020).
\6\ The AMSA will become a conference of the ATA. AMSA to Become
Conference of American Trucking Associations (Aug. 7, 2020),
available at <a href="https://www.moving.org/amsa-to-become-conference-of-american-trucking-associations/">https://www.moving.org/amsa-to-become-conference-of-american-trucking-associations/</a>.
Table 1--Interstate Household Goods (HHG) Motor Carriers
------------------------------------------------------------------------
Interstate HHG
Year motor carriers
------------------------------------------------------------------------
2019.................................................... 4,297
2020.................................................... 4,484
2021.................................................... 4,680
2022.................................................... 4,884
2023.................................................... 5,097
2024.................................................... 5,319
2025.................................................... 5,551
2026.................................................... 5,793
2027.................................................... 6,046
2028.................................................... 6,309
2029.................................................... 6,584
2030.................................................... 6,871
2031.................................................... 7,171
------------------------------------------------------------------------
Analysis Inputs
Motor Carrier Profit per Hour
Broadly speaking, the opportunity cost to the motor carrier (the
firm) of a given regulatory action is the value of the best alternative
that the firm must forgo in order to comply with the regulatory action.
In this analysis, FMCSA follows the methodology used in the Entry-Level
Driver Training rulemakings published in 2016 and 2018 and values the
change in time spent in nonproductive activity as the opportunity cost
to the firm, which is represented by the now attainable profit, using
three variables: The marginal cost of operating a CMV, an estimate of a
typical average motor carrier profit margin, and the change in
nonproductive time.
The American Transportation Research Institute (ATRI) report, An
[[Page 43825]]
Analysis of the Operational Costs of Trucking: 2019 Update, found that
marginal operating costs were $71.78 per hour in 2018.\7\ These
marginal costs include vehicle-based costs (e.g., fuel costs, insurance
premiums, etc.), and driver-based costs (i.e., wages and benefits).
---------------------------------------------------------------------------
\7\ ATRI. An Analysis of the Operational Costs of Trucking: 2019
Update. October 2019. Table 10, pg. 19. Available at: <a href="https://truckingresearch.org/wp-content/uploads/2019/11/ATRI-Operational-Costs-of-Trucking-2019-1.pdf">https://truckingresearch.org/wp-content/uploads/2019/11/ATRI-Operational-Costs-of-Trucking-2019-1.pdf</a> (accessed December 11, 2019). Source
data are assumed to be presented in 2018 dollar terms.
---------------------------------------------------------------------------
Next, the Agency estimated the profit margin for motor carriers.
Profit is a function of revenue and operating expenses, and the
American Trucking Associations (ATA) defines the operating ratio of a
motor carrier as a measure of profitability based on operating expenses
as a percentage of gross revenues.\8\ Armstrong & Associates, Inc.
(2009) states that trucking companies that cannot maintain a minimum
operating ratio of 95% (calculated as operating costs / net revenue)
will not have sufficient profitability to continue operations in the
long run.\9\ Therefore, Armstrong & Associates states that trucking
companies need a minimum profit margin of 5% of revenue to continue
operating in the future. Transport Topics publishes data on the ``Top
100'' for-hire carriers, ranked by revenue.\10\ For 2014, 39 of these
Top 100 carriers also have net income information reported by Transport
Topics. FMCSA estimates that the 39 carriers with both revenue and net
income information have an average profit margin of approximately 4.3
percent for 2014. For 2018, 33 of these Top 100 carriers have net
income information reported by Transport Topics, with an average profit
margin of approximately 6 percent for 2018.\11\ The higher profit
margin experienced in 2018 is reinforced by a Forbes article that found
net profit margin for freight trucking companies ``expanded to 6
percent in 2018, compared with an annual average of between 2.5 percent
and 4 percent each year since 2012.'' \12\ In 2019, the data provided
by Transport Topics shows a similar pattern based on the 28 companies
that provided net income information, with an average profit margin of
5.8 percent.\13\ It is uncertain whether the recent surge in net profit
margin will continue through the analysis period, so FMCSA assumes the
lower profit margin of 5 percent for motor carriers for purposes of
this analysis.
---------------------------------------------------------------------------
\8\ ATA. American Trucking Trends 2015. Page 79.
\9\ Armstrong & Associates, Inc. Carrier Procurement Insights.
2009. Pages 4-5. Available at: <a href="https://www.3plogistics.com/product/carrier-procurement-insights-trucking-company-volume-cost-and-pricing-tradeoffs-2009/">https://www.3plogistics.com/product/carrier-procurement-insights-trucking-company-volume-cost-and-pricing-tradeoffs-2009/</a> (accessed January 5, 2016).
\10\ Transport Topics. 2014. Top 100 For-Hire Carriers.
Available at: <a href="http://ttnews.com/top100/for-hire/2014">http://ttnews.com/top100/for-hire/2014</a> (accessed
November 19, 2018).
\11\ Transport Topics. 2018. Top 100 For-Hire Carriers.
Available at: <a href="https://www.ttnews.com/top100/for-hire/2018">https://www.ttnews.com/top100/for-hire/2018</a> (accessed
November 19, 2018).
\12\ Forbes. Trucking Companies Hauling in Higher Sales.
Available at: <a href="https://www.forbes.com/sites/sageworks/2018/03/04/trucking-companies-hauling-in-higher-sales/#40e0012f3f27">https://www.forbes.com/sites/sageworks/2018/03/04/trucking-companies-hauling-in-higher-sales/#40e0012f3f27</a> (accessed
November 19, 2018).
\13\ Transport Topics. 2019. Top 100 For-Hire Carriers.
Available at: <a href="https://www.ttnews.com/top100/for-hire/2019">https://www.ttnews.com/top100/for-hire/2019</a> (accessed
October 14, 2020).
---------------------------------------------------------------------------
Using the assumed profit margin of 5 percent for motor carriers,
FMCSA estimated the revenue gained per hour for motor carriers by
multiplying the marginal cost per hour by the profit margin. This
calculation resulted in a profit per hour of $3.59.
Number of Interstate Moves per Year
FMCSA estimates the number of interstate moves by for-hire movers
using U.S. Census Bureau data based on the number of people moving
interstate, the average number of people per household, and an AMSA
estimate of the number of moves that involved for-hire moving services.
The U.S. Census Bureau estimates that approximately 7.4 million people
moved interstate during 2018, and that the average household contained
2.63 people. Therefore, we can estimate that approximately 2.8 million
households participated in interstate moves during 2018 (7,443,306 /
2.63 = 2,830,154).\14\ FMCSA estimates the growth in interstate moves
using the same Census data from 2010 through 2018, and finds an annual
average growth rate of 0.08 percent.\15\ AMSA estimated that 550,000,
or approximately 20 percent, of the interstate household goods moves in
2017 were completed by for-hire movers.\16\
---------------------------------------------------------------------------
\14\ U.S. Census Bureau. 2018: ACS 5-Year Estimates Data
Profiles. Available at: <a href="https://data.census.gov/cedsci/table?d=ACS%205-Year%20Estimates%20Data%20Profiles&table=DP02&tid=ACSDP5Y2018.DP02&vintage=2018&hidePreview=true">https://data.census.gov/cedsci/table?d=ACS%205-Year%20Estimates%20Data%20Profiles&table=DP02&tid=ACSDP5Y2018.DP02&vintage=2018&hidePreview=true</a> (accessed October 6, 2020).
\15\ 0.08 percent = (average households that moved interstate in
2018 / average household that moved interstate in 2010) (\1/8\)-
1[caret]..
\16\ American Moving and Storage Association. Newsroom: About
our Industry. <a href="https://www.moving.org/newsroom/data-research/about-our-industry/">https://www.moving.org/newsroom/data-research/about-our-industry/</a> (accessed December 29, 2020).
---------------------------------------------------------------------------
Some impacts of the proposed rule would be based on the distance of
the shipper's location from the motor carrier. For instance, moves that
are within 50 miles of the motor carrier agent's location must receive
a physical survey unless the shipper signs a waiver. The information
collection request (ICR) supporting statement, published in November
2019, estimated that the motor carrier agent is within 50 miles of the
shipper's location for 95 percent of interstate moves, and beyond 50
miles for 5 percent of moves. The table below shows the number of
household interstate moves by for-hire movers, and those that are
within and beyond 50 miles from the motor carrier agent's location.
Table 2--Number of Interstate Moves by: Households, For-Hire Movers, Within and Beyond 50 Miles of the Motor
Carrier Agent Location
----------------------------------------------------------------------------------------------------------------
Number of Number of Number of
Total number of household interstate moves interstate moves
Year interstate moves interstate moves by for-hire by for-hire
by households by for-hire movers within 50 movers beyond 50
movers miles miles
A B = A x 20% C = B x 95% D = B x 5%
----------------------------------------------------------------------------------------------------------------
2018................................ 2,830,154 556,621 528,784 27,837
2019................................ 2,832,418 557,066 529,207 27,859
2020................................ 2,834,684 557,512 529,630 27,882
2021................................ 2,836,952 557,958 530,054 27,904
2022................................ 2,839,221 558,404 530,478 27,926
2023................................ 2,841,493 558,851 530,902 27,949
2024................................ 2,843,766 559,298 531,327 27,971
2025................................ 2,846,041 559,745 531,752 27,993
2026................................ 2,848,318 560,193 532,177 28,016
[[Page 43826]]
2027................................ 2,850,596 560,641 532,603 28,038
2028................................ 2,852,877 561,090 533,029 28,061
2029................................ 2,855,159 561,539 533,456 28,083
2030................................ 2,857,443 561,988 533,882 28,106
2031................................ 2,859,729 562,438 534,309 28,128
2032................................ 2,862,017 562,888 534,737 28,151
----------------------------------------------------------------------------------------------------------------
Cost Impacts
Recommendation 5--Appendix A
FMCSA is proposing to adopt the working group recommendation that
would require the Rights and Responsibilities booklet to be provided
earlier in the process--at the time the estimate is provided to the
shipper. This document contains useful information to assist a shipper
in making a determination regarding which household goods motor carrier
to hire. However, requiring the document earlier in the process, prior
to when a shipper has chosen a carrier, would result in providing an
additional two documents per interstate move, as FMCSA estimates that
shippers request an estimate from three household goods carriers and
only contract with one. Therefore, while FMCSA considers it important
to require this information early enough in the process for the
information to inform the shipper's decision on which household goods
carrier to choose, the proposed requirement would result in costs equal
to the increase in the time required to print the additional hard-copy
Rights and Responsibilities booklets provided.
FMCSA estimated this cost by first determining the increase in the
number of hard-copy Rights and Responsibilities booklets printed each
year. This can be determined by subtracting the number of estimates
provided from the number of orders for service provided, and adjusting
for the preference to receive electronic documents. The number of
orders for service provided is equal to the number of household
interstate moves by for-hire movers from Table 2. The number of
estimates provided is equal to the number of orders for service
provided multiplied by three, accounting for the fact that shippers
likely request estimates from more than one motor carrier. In the ICR
supporting statement, FMCSA previously estimated that 40 percent of
shippers prefer to receive information in hard copy form, and that 60
percent prefer to receive electronic information.
As shown in columns A and B of Table 3 below, FMCSA multiplied the
number of interstate moves per year by 40 percent to estimate the
number of hard-copy Rights and Responsibilities booklets provided to
shippers under the existing requirements, and multiplied the number of
orders for service where hard-copies are provided by three (to account
for the assumption that shippers seek an estimate from three different
household goods carriers) to estimate the number of hard-copy Rights
and Responsibilities booklets that would be provided under the proposed
rule. The difference between these two variables (column C) represents
the increase in the number of hard-copy Rights and Responsibilities
booklets that would be printed as a result of this rule.
The ICR supporting statement estimated that a carrier could print
roughly 1,600 pages per hour, and that each Rights and Responsibilities
booklet consists of 25 pages. Thus, the increase in the number of hours
needed to print hard-copy Rights and Responsibilities documents is
equal to the number of Rights and Responsibilities documents from Table
3, Column C, multiplied by 25 pages per document, and divided by 1,600
pages per hour. Column D shows this maximum increase in hours spent
printing.
The time spent printing additional copies of the Rights and
Responsibilities booklet is time not spent in other revenue producing
activities. As shown in Table 3, Column E, FMCSA quantifies this
opportunity cost of time using the previously discussed estimate of the
motor carrier profit per hour, $3.59, resulting in total 10-year costs
of $251,000, or $218,000 discounted at 3 percent, and $179,000
discounted at 7 percent. On an annualized basis, the costs would be
$26,000 discounted at 3 percent and $26,000 discounted at 7 percent.
Table 3--Recommendation 5: Motor Carrier Opportunity Cost Resulting From Increased Printing of Your Rights and Responsibilities Booklet
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of orders Number of Motor carrier
for service with estimates with Maximum increase Maximum increase increase in cost
Year hard copy YRR \c\ hard copy of YRR in number of hard in total hours for hours spent
provided provided copies provided spent printing printing
A = Interstate B = A x 3 C = B - A D = C x 25 E = D x $3.59
moves by for- / 1600
hire movers
x 40%
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022..................................................... 223,362 670,085 446,723 6,980 $25,051
2023..................................................... 223,540 670,621 447,081 6,986 25,071
2024..................................................... 223,719 671,158 447,438 6,991 25,092
2025..................................................... 223,898 671,695 447,796 6,997 25,112
[[Page 43827]]
2026..................................................... 224,077 672,232 448,155 7,002 25,132
2027..................................................... 224,257 672,770 448,513 7,008 25,152
2028..................................................... 224,436 673,308 448,872 7,014 25,172
2029..................................................... 224,616 673,847 449,231 7,019 25,192
2030..................................................... 224,795 674,386 449,590 7,025 25,212
2031..................................................... 224,975 674,925 449,950 7,030 25,232
----------------------------------------------------------------------------------------------
Total 10-Year Cost................................... ................. ................. ................. ................. 251,418
----------------------------------------------------------------------------------------------
Total Annualized Cost................................ ................. ................. ................. ................. 25,142
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\a\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded
components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.
\c\ The Rights and Responsibilities booklet is abbreviated as YRR for the purposes of the tables in this section.
FMCSA also proposes to adopt the recommendation to make it
acceptable for motor carriers to provide documents, including the
Rights and Responsibilities booklet, electronically without requiring
the motor carrier to include a waiver statement on the written
estimate. Under the existing requirements, when the shipper elects to
receive these documents via the hyperlink, the motor carrier is
required to obtain a signed waiver of the shipper's right to a hard
copy via a statement on the written estimate, as well as a signed and
dated receipt that includes ``verification of the shipper's agreement
to access the Federal consumer protection information on the
internet.'' The proposal would remove the requirement in 49 CFR
375.213(e)(1) for the shippers to include a waiver statement on the
written estimate, but would retain the requirement to obtain a receipt.
FMCSA expects that removing the waiver statement would be a de minimis
one-time cost savings for motor carrier, but requests comment on the
current process for obtaining the waiver statement and receipt required
in 49 CFR 375.213(e), and whether removing the requirement to obtain a
waiver would result in measurable cost savings.
Recommendation 7--Survey of Household Goods
In agreement with the recommendations, FMCSA proposes to change the
requirement to conduct a survey of the shipper's goods by redefining a
``physical survey'' to include both an ``in person'' and a ``virtual''
survey. The physical survey would include in-person surveys and virtual
surveys. This change does not require that shippers receive only
virtual surveys, but it does provide the option and allows the shipper
to determine whether a physical or virtual survey would better suit
their needs.
In the event of a virtual survey, the motor carrier would likely
spend the same amount of time completing the survey but would not need
to travel to and from the shipper's location. This reduction in travel
would allow that time to be put to other productive uses, resulting in
a motor carrier cost savings equal to the now attainable profit that
can be earned during that time. FMCSA estimates this cost savings using
three variables; the reduction in travel time per completed survey, the
number of completed surveys that would now be virtual, and the motor
carrier hourly profit. The distance and time required to travel to and
from a move site varies with each survey. However, the survey
requirement is in place for moves originating within 50 miles from the
motor carrier agent's location. Therefore, we can estimate that the
time savings would accrue to those moves originating within 50 miles.
FMCSA estimated the average round-trip travel time for a move
originating within 50 miles of the motor carrier agent would be
approximately 1 hour.
Under the current requirements, physical surveys must be completed
for all moves originating within 50 miles of the motor carrier agent's
location, unless the physical survey is waived by the individual
shipper. FMCSA assumes that under the proposal, some portion of
shippers would voluntarily request a virtual survey but is unable to
estimate the exact number of virtual surveys that would be conducted
under the proposal. FMCSA developed an estimate of the number of
surveys that would be conducted virtually using a range from 25 percent
to 75 percent, with a primary estimate of 50 percent. As shown in the
table below, the motor carrier cost savings are estimated by
multiplying the number of virtual surveys originating within 50 miles,
by the 1 hour of time savings, and by the motor carrier profit per hour
of $3.59. FMCSA estimates that providing virtual surveys would result
in in costs of $9.6 million over 10 years (or $9.6 million in cost
savings), $8.1 million (or $8.1 million in cost savings) discounted at
3 percent, and $6.7 million (or $6.7 million in cost savings)
discounted at 7 percent. On an annualized basis, the costs would be
$955,000 (or $955,000 in cost savings) discounted at 3 percent and
$955,000 (or $955,000 in cost savings) discounted at 7 percent.
[[Page 43828]]
Table 4--Recommendation 7: Motor Carrier Opportunity Cost Savings for Providing Virtual Surveys Within 50 Miles
--------------------------------------------------------------------------------------------------------------------------------------------------------
Motor carrier Motor carrier Motor carrier
Year Number of virtual Number of virtual Number of virtual opportunity cost opportunity cost opportunity cost
surveys (low) surveys (primary) surveys (high) (low) (primary) (high)
A B C D = A x $3.59 E = B x $3.59 F = C x $3.59
x -1 hour x -1 hour x -1 hour
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022.................................. 132,619 265,239 397,858 ($475,971) ($951,942) ($1,427,914)
2023.................................. 132,726 265,451 398,177 (476,352) (952,704) (1,429,056)
2024.................................. 132,832 265,663 398,495 (476,733) (953,466) (1,430,199)
2025.................................. 132,938 265,876 398,814 (477,114) (954,229) (1,431,343)
2026.................................. 133,044 266,089 399,133 (477,496) (954,992) (1,432,488)
2027.................................. 133,151 266,302 399,452 (477,878) (955,756) (1,433,634)
2028.................................. 133,257 266,515 399,772 (478,260) (956,521) (1,434,781)
2029.................................. 133,364 266,728 400,092 (478,643) (957,286) (1,435,929)
2030.................................. 133,471 266,941 400,412 (479,026) (958,052) (1,437,078)
2031.................................. 133,577 267,155 400,732 (479,409) (958,818) (1,438,228)
-----------------------------------------------------------------------------------------------------------------
Total 10-Year Cost Savings........ ................. ................. ................. (4,776,884) (9,553,767) (14,330,651)
-----------------------------------------------------------------------------------------------------------------
Total Annualized Cost Savings..... ................. ................. ................. (477,688) (955,377) (1,433,065)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\a\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded
components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.
Recommendation 8--Survey of Household Goods; beyond 50 miles
In agreement with the recommendations, FMCSA is proposing to
require that movers offer physical surveys for all household goods
shipments, including those that are located over 50 miles from the
motor carrier agent's location.
Currently, motor carriers are not required to offer physical
surveys for household goods shipments that are located beyond 50 miles
from the motor carrier agent's location. Often, a consumer will discuss
the shipment load and the mover will provide an estimate based on the
discussion, without visually inspecting the amount or weight of goods
for transport. The purpose of the survey is to develop a more accurate
estimate of moving fees and to prevent unexpected charges from
surfacing later in the move process. Because FMCSA lacks data on how
behavior would change, FMCSA estimates that all shippers located beyond
50 miles from the motor carrier agent's location would take advantage
of the virtual survey option. These surveys would take about 1.5 hours
each, and FMCSA monetizes this time using the motor carrier profit
margin of $3.59 per hour. As shown below, FMCSA estimates the cost of
providing virtual surveys to be approximately $1.5 million over 10
years, $1.3 million at a 3 percent discount rate, and $1.1 million at a
7 percent discount rate. On an annualized basis, the cost would be
$151,000 annualized at both a 3 and 7 percent discount rate.
Table 5--Recommendation 8: Motor Carrier Opportunity Cost for Providing Virtual Surveys Beyond 50 Miles
----------------------------------------------------------------------------------------------------------------
Number of moves
beyond 50 miles Motor carrier Motor carrier Motor carrier
Year with a virtual opportunity cost opportunity cost opportunity cost
survey 3% discount rate 7% discount rate
A A = B x 1.5 hours ................. .................
x $3.59
----------------------------------------------------------------------------------------------------------------
2022................................ 27,926 $150,342 $145,963 $140,506
2023................................ 27,949 150,462 141,825 131,419
2024................................ 27,971 150,582 137,804 122,920
2025................................ 27,993 150,703 133,898 114,971
2026................................ 28,016 150,823 130,102 107,535
2027................................ 28,038 150,944 126,413 100,580
2028................................ 28,061 151,065 122,830 94,076
2029................................ 28,083 151,186 119,347 87,991
2030................................ 28,106 151,307 115,964 82,301
2031................................ 28,128 151,428 112,676 76,978
---------------------------------------------------------------------------
Total 10-Year Cost Savings...... ................. ................. 1,286,822 1,059,278
---------------------------------------------------------------------------
Total Annualized Cost Savings... ................. ................. 150,855 150,817
----------------------------------------------------------------------------------------------------------------
Notes:
\a\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column
are the rounded sum of unrounded components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a
cost savings.
[[Page 43829]]
Recommendation 9--Order for Service
In agreement with the working group recommendation, FMCSA is
proposing to eliminate the order for service. Much of the information
provided on the order for service is also on the bill of lading, and is
therefore duplicative.\17\ Eliminating the order for service would
reduce the amount of paperwork consumers are required to review, but
would not reduce the necessary information they are provided.
Currently, each interstate move requires both an order for service and
a bill of lading. Each document takes 30 minutes to prepare. Under the
proposal, a motor carrier would be able to save 30 minutes of time for
each interstate move by no longer drafting an order for service. FMCSA
monetized this time using the motor carrier hourly profit margin of
$3.59. As shown below, FMCSA estimates that eliminating the order for
service would result in costs of -$10 million over 10 years (or cost
savings of $10 million), -$8.6 million (or $8.6 million in cost
savings) discounted at 3 percent, and -$7.1 million (or $7.1 million in
cost savings) discounted at 7 percent. On an annualized basis, the
costs would be -$1.0 million (or $1.0 million in cost savings)
discounted at 3 percent and 7 percent.
---------------------------------------------------------------------------
\17\ FMCSA is revising the requirements for a bill of lading to
incorporate all of the requirements from an order for service,
including non-duplicative information.
Table 6--Recommendation 9: Motor Carrier Opportunity Cost for Eliminating the Order for Service
----------------------------------------------------------------------------------------------------------------
Number of
interstate moves Motor carrier Motor carrier Motor carrier
Year by for-hire opportunity cost opportunity cost opportunity cost
movers discounted at 3% discounted at 7%
A B = A x -0.5 ................. .................
hours x $3.59
----------------------------------------------------------------------------------------------------------------
2022................................ 558,404 ($1,002,056) ($972,870) ($936,501)
2023................................ 558,851 (1,002,858) (945,290) (875,935)
2024................................ 559,298 (1,003,660) (918,491) (819,286)
2025................................ 559,745 (1,004,463) (892,453) (766,300)
2026................................ 560,193 (1,005,267) (867,152) (716,741)
2027................................ 560,641 (1,006,071) (842,569) (670,388)
2028................................ 561,090 (1,006,876) (818,682) (627,032)
2029................................ 561,539 (1,007,681) (795,473) (586,480)
2030................................ 561,988 (1,008,487) (772,922) (548,550)
2031................................ 562,438 (1,009,294) (751,010) (513,074)
---------------------------------------------------------------------------
Total 10- Year Cost Savings..... ................. ................. (8,576,911) (7,060,287)
---------------------------------------------------------------------------
Total Annualized Cost Savings... ................. ................. (1,005,476) (1,005,226)
----------------------------------------------------------------------------------------------------------------
Notes:
\a\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column
are the rounded sum of unrounded components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a
cost savings.
Document Production Cost
The ICR supporting statement also estimated printing costs of $0.15
per page for both the Rights and Responsibilities booklet and the Order
for Service. FMCSA estimates the change in the cost of materials for
printing the Rights and Responsibilities booklet and the Orders for
Service by multiplying the change in the number of pages by the $0.15
cost per page. As shown in Table 7, FMCSA estimates a 10-year materials
cost to total $16 million, or $13.6 million discounted at 3 percent,
and $11.2 million discounted at 7 percent. On an annualized basis, the
costs would be $1.6 million discounted at both 3 and 7 percent.
Table 7--Document Production Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation 9--
Recommendation 5-- Eliminating the Total change in Total cost for
Year Increase in pages order for service number of pages producing documents
for hard copy YRR (reduction in pages)
A B C = A + B D = C x $0.15
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022............................................................ 11,168,084 -558,404 10,609,680 $1,591,452
2023............................................................ 11,177,018 -558,851 10,618,167 1,592,725
2024............................................................ 11,185,960 -559,298 10,626,662 1,593,999
2025............................................................ 11,194,909 -559,745 10,635,163 1,595,275
2026............................................................ 11,203,865 -560,193 10,643,671 1,596,551
2027............................................................ 11,212,828 -560,641 10,652,186 1,597,828
2028............................................................ 11,221,798 -561,090 10,660,708 1,599,106
2029............................................................ 11,230,775 -561,539 10,669,237 1,600,386
2030............................................................ 11,239,760 -561,988 10,677,772 1,601,666
2031............................................................ 11,248,752 -562,438 10,686,314 1,602,947
---------------------------------------------------------------------------------------
[[Page 43830]]
Total 10-Year Cost Savings.................................. .................... .................... .................... 15,971,934
---------------------------------------------------------------------------------------
Total Annualized Cost Savings............................... .................... .................... .................... 1,597,193
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\a\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded
components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.
Total Costs
As shown below, FMCSA estimates the total costs of this final rule
at $1.6 million (or $1.6 million in cost savings) discounted at 3
percent, and $1.3 million (or $1.3 million in cost savings) discounted
at 7 percent. Expressed on an annualized basis, this equates to -
$188,000 in costs (or $188,000 in cost savings) at both a 3 and 7
percent discount rate.
Table 8--Total 10-Year and Annualized Costs of the Proposed Rule
[Thousands of 2018$]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rec. 7:
Virtual Rec. 8: Rec. 9:
Rec. 5: survey of Survey of Order for Document Total cost Total cost Total cost
Year Appendix A HHG HHG beyond service production (primary) discounted discounted
\c\ (primary) 50 miles \f\ \g\ at 3% at 7%
\d\ \e\
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022.................................................... $25.1 ($951.9) 150.3 (1,002.1) 1,591.5 (187.2) (181.7) (174.9)
2023.................................................... 25.1 (952.7) 150.5 (1,002.9) 1,592.7 (187.3) (176.6) (163.6)
2024.................................................... 25.1 (953.5) 150.6 (1,003.7) 1,594.0 (187.5) (171.5) (153.0)
2025.................................................... 25.1 (954.2) 150.7 (1,004.5) 1,595.3 (187.6) (166.7) (143.1)
2026.................................................... 25.1 (955.0) 150.8 (1,005.3) 1,596.6 (187.8) (162.0) (133.9)
2027.................................................... 25.2 (955.8) 150.9 (1,006.1) 1,597.8 (187.9) (157.4) (125.2)
2028.................................................... 25.2 (956.5) 151.1 (1,006.9) 1,599.1 (188.1) (152.9) (117.1)
2029.................................................... 25.2 (957.3) 151.2 (1,007.7) 1,600.4 (188.2) (148.6) (109.5)
2030.................................................... 25.2 (958.1) 151.3 (1,008.5) 1,601.7 (188.4) (144.4) (102.5)
2031.................................................... 25.2 (958.8) 151.4 (1,009.3) 1,602.9 (188.5) (140.3) (95.8)
Total 10-Year Cost Savings.......................... .......... .......... .......... .......... .......... (1,878.3) (1,601.9) (1,318.6)
-----------------------------------------------------------------------------------------------
Total Annualized Cost Savings....................... .......... .......... .......... .......... .......... (187.8) (187.8) (187.8)
-----------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\a \ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded
components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.
\c\ (Increase in Number of Hard Copy YRR Booklets Provided) x (25 / 1600) x ($3.59).
\d\ (Number of Virtual Surveys) x ($3.59) x (-1 hour).
\e\ (Interstate Moves beyond 50 miles by For-Hire Movers) x (-0.5 hours) x ($3.59).
\f\ (Interstate Moves by For-Hire Movers) x (-0.5 hours) x ($3.59).
\g\ ((Increase in Pages for YRR Booklet) + (Decrease in Pages for Elimination of Order for Service)) x $0.15.
Benefit Impacts
FMCSA does not expect this rule to impact safety, but does expect
that it would result in benefits related to consumer protection and
fuel savings. Recommendation 5 would result in shippers receiving
accurate and clear information earlier in the process, allowing them to
make more informed and better decisions regarding which household goods
motor carrier to hire, and would allow shippers to obtain more accurate
estimates of moving fees based on physical surveys for those interstate
moves beyond 50 miles from a motor carrier agent's location. The motor
carrier efficiencies discussed above would not negatively impact
shippers, as the services and information received today would not
change under the proposed rule.
FMCSA anticipates that providing virtual surveys for those moves
within 50 miles of a motor carrier agent's location would not only
result in motor carrier time savings quantified above, but could
potentially result in fuel savings if motor carriers drive fewer miles,
which could produce a small reduction in CO2 emissions. It is important
to note that FMCSA is not anticipating a change in CMV vehicle miles
traveled, as the rule does not affect the number of interstate moves
occurring per year, but recognizes that motor carriers could reduce
miles driven in light-duty vehicles used for providing estimates to
shippers. The distance and fuel required to travel to and from a move
site varies with each survey. However, the survey requirement is in
place for moves within 50 miles from the motor carrier agent's
location, and we can estimate that any potential fuel savings would
only accrue to those moves. FMCSA assumes the average mileage for these
moves would be approximately 25 miles, or 50 miles round-trip. Based on
data provided by the Bureau of Transportation Statistics, light-duty
vehicles averaged approximately 22 miles per gallon in 2017, resulting
in just over 2 gallons saved per trip (22.27 miles per gallon / 50
miles per trip = 2.24 gallons per trip).\18\ The U.S. Energy
[[Page 43831]]
Information Administration forecasts real petroleum prices for motor
gasoline, and estimates an average price per gallon over the analysis
period of $3.28 in 2018 dollars.\19\ Therefore, FMCSA estimates that
each virtual survey could result in $7.37 in avoided fuel costs (2.24
gallons per trip x $3.28 per gallon). Any potential fuel savings would
result from a reduction in vehicle miles traveled in light-duty
vehicles. The Agency is uncertain how motor carriers would respond to
the proposed change allowing virtual surveys, and whether they would be
involved in other driving-related activities which could diminish or
negate any potential fuel savings. For these reasons, FMCSA is not
quantifying any potential fuel impacts but requests comment on how
motor carriers would adjust their operations in response to this
proposed rule. Similarly, while these potential fuel savings, if
realized, would result in a reduction of CO2 emissions that is directly
proportional to the amount of fuel saved, the Agency is not quantifying
those potential savings in this proposed rule due to the aforementioned
uncertainty with respect to how motor carriers would adjust their
operations. If FMCSA receives data that enables the quantification of
fuel savings in the context of the development of a subsequent final
rule, the Agency would monetize the commensurate reduction in CO2
emissions consistent with the social cost of carbon values, as
established by the White House and the Interagency Working Group on the
Social Cost of Greenhouse Gases.
---------------------------------------------------------------------------
\18\ U.S. Department of Transportation, Bureau of Transportation
Statistics. Table 4-23: Average Fuel Efficiency of U.S. Light Duty
Vehicles. Available at: <a href="https://www.bts.gov/content/average-fuel-efficiency-us-light-duty-vehicles">https://www.bts.gov/content/average-fuel-efficiency-us-light-duty-vehicles</a>
\19\ U.S. Energy Information Administration. Petroleum and Other
Liquids Prices, Transportation, Motor Gasoline: Reference Case,
years 2022--2031, inflated to 2018$. Available at: https://
www.eia.gov/outlooks/aeo/data/browser/#/?id=12-AEO2015®ion=0-
0&cases=ref2015~highmacro~lowmacro~highprice~lowprice&start=2020&end=
2034&f=A&linechart=ref2015-d021915a.3-12-AEO2015~highmacro-
d021915a.3-12-AEO2015~lowmacro-d021915a.3-12-AEO2015~highprice-
d021915a.3-12-AEO2015~lowprice-d021915a.3-12-AEO2015&sourcekey=0
(accessed October, 15 2020).
---------------------------------------------------------------------------
B. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).\20\
---------------------------------------------------------------------------
\20\ A ``major rule'' means any rule that the Administrator of
Office of Information and Regulatory Affairs at the Office of
Management and Budget finds has resulted in or is likely to result
in (a) an annual effect on the economy of $100 million or more; (b)
a major increase in costs or prices for consumers, individual
industries, Federal agencies, State agencies, local government
agencies, or geographic regions; or (c) significant adverse effects
on competition, employment, investment, productivity, innovation, or
on the ability of United States-based enterprises to compete with
foreign-based enterprises in domestic and export markets (5 U.S.C.
804(2)).
---------------------------------------------------------------------------
C. Regulatory Flexibility Act (Small Entities)
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) as
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (Pub. L. 104-121, 110 Stat. 857), requires Federal agencies to
consider the effects of the regulatory action on small business and
other small entities and to minimize any significant economic impact.
The term ``small entities'' comprises small businesses and not-for-
profit organizations that are independently owned and operated and are
not dominant in their fields, and governmental jurisdictions with
populations of less than 50,000 (5 U.S.C. 601(6)). Accordingly, DOT
policy requires an analysis of the impact of all regulations on small
entities, and mandates that agencies strive to lessen any adverse
effects on these businesses. Section 605 of the RFA allows an Agency to
certify a rule, in lieu of preparing an analysis, if the rulemaking is
not expected to have a significant economic impact on a substantial
number of small entities.
This rule affects shippers and household goods motor carriers.
Shippers, or consumers that hire household good motor carriers, are not
considered small entities because they do not meet the definition of a
small entity in Section 601 of the RFA. Specifically, shippers are
considered neither a small business under Section 601(3) of the RFA,
nor are they considered a small organization under Section 601(4) of
the RFA.
The SBA defines the size standards used to classify entities as
small. SBA establishes separate standards for each industry, as defined
by the North American Industry Classification System (NAICS).\21\
Household goods motor carriers would fall under Subsector Industry
48421, household good and office goods moving, which has an SBA size
standard based on annual revenue of $30 million.
---------------------------------------------------------------------------
\21\ Executive Office of the President, OMB. ``North American
Industry Classification System.'' 2017. Available at: <a href="https://www.census.gov/eos/www/naics/2017NAICS/2017_NAICS_Manual.pdf">https://www.census.gov/eos/www/naics/2017NAICS/2017_NAICS_Manual.pdf</a>
(accessed January 15, 2020).
---------------------------------------------------------------------------
FMCSA examined data from the U.S. Census Bureau to determine the
number of small entities within the identified 5-digit NAICS industry
group. The Census Bureau collects and publishes data on the number of
firms, establishments, employment, annual payroll, and estimated
receipts by revenue size of the firm. The most recent data available
are from the 2012 County Business Patterns and the 2012 Economic
Census.\22\ The revenue size categories used in the 2012 Economic
Census do not exactly align with the SBA size standard, but they do
allow FMCSA to develop a good estimate of the percentage of small
entities within the NAICS industry group 48421. The 2012 Economic
Census reported that there were 5,718 firms operating for the entire
year within NAICS industry group 48421 (household goods and office
goods moving). Of those firms that operated for the entire year, 5,663
firms (99 percent), had annual revenues of less than $25 million, and
5,692 firms (100 percent) had annual revenues less than $50 million.
FMCSA concludes that this rule will impact a substantial number of
small entities.
---------------------------------------------------------------------------
\22\ U.S. Department of Commerce, U.S. Census Bureau.
Establishment and Firm Size: Summary Statistics by Revenue Size of
Firms for the U.S. Release date March, 2016. Available at: <a href="https://www2.census.gov/econ2012/EC/sector48/EC1248SSSZ4.zip">https://www2.census.gov/econ2012/EC/sector48/EC1248SSSZ4.zip</a> (accessed
September 18, 2020).
---------------------------------------------------------------------------
The RFA does not define a threshold for determining whether a
specific regulation results in a significant impact. However, the SBA,
in guidance to government agencies, provides some objective measures of
significance that the agencies can consider using.\23\ Revenue is one
measure that could be used to illustrate a significant impact,
specifically, if the cost of the regulation exceeds one percent of the
average annual revenues of small entities in the sector.
---------------------------------------------------------------------------
\23\ SBA, Office of Advocacy. ``A Guide for Government Agencies.
How to Comply with the Regulatory Flexibility Act.'' 2017. Available
at: <a href="https://www.sba.gov/sites/default/files/advocacy/How-to-Comply-with-the-RFA-WEB.pdf">https://www.sba.gov/sites/default/files/advocacy/How-to-Comply-with-the-RFA-WEB.pdf</a> (accessed on December 30, 2020).
---------------------------------------------------------------------------
Examining the 2012 Economic Census data discussed above, FMCSA
found that affected entities had average revenues ranging from $55,000
to $35 million. The cost of the regulation would thus need to exceed
$550 per carrier in any one year in order to be considered a
significant impact on the entities within the smallest revenue size
category. The exact impact per motor carrier is dependent on many
variables throughout the year (e.g., the number of hard-copy Rights and
Responsibilities booklets provided, the number of virtual surveys
provided for those moves within 50 miles of the motor carrier agents'
locations, and the number of virtual surveys completed for moves beyond
50 miles of the motor carrier agents' locations), and cannot be
estimated with precision. While FMCSA cannot provide the exact impact
per
[[Page 43832]]
motor carrier, it is possible to evenly distribute the total cost of
the rule across all affected motor carriers to determine the average
impact per motor carrier. As shown in the table below, the estimated
impact per motor carrier does not exceed $550 in any year, and
therefore is not a significant impact.
Table 8--Estimated Impact per Motor Carrier
----------------------------------------------------------------------------------------------------------------
Total cost
Year Household goods (discounted at Estimated impact
motor carriers 7%) per motor carrier
----------------------------------------------------------------------------------------------------------------
2022................................................... 4,884 ($174,909.9) ($35.8)
2023................................................... 5,097 (163,597.9) (32.1)
2024................................................... 5,319 (153,017.6) (28.8)
2025................................................... 5,551 (143,121.5) (25.8)
2026................................................... 5,793 (133,865.4) (23.1)
2027................................................... 6,046 (125,208.0) (20.7)
2028................................................... 6,309 (117,110.4) (18.6)
2029................................................... 6,584 (109,536.5) (16.6)
2030................................................... 6,871 (102,452.5) (14.9)
2031................................................... 7,171 (95,826.6) (13.4)
----------------------------------------------------------------------------------------------------------------
Consequently, I certify that the proposed action would not have a
significant economic impact on a substantial number of small entities.
D. Assistance for Small Entities
In accordance with section 213(a) of the Small Business Regulatory
Enforcement Fairness Act of 1996, FMCSA wants to assist small entities
in understanding this NPRM so they can better evaluate its effects on
themselves and participate in the rulemaking initiative. If the NPRM
would affect your small business, organization, or governmental
jurisdiction and you have questions concerning its provisions or
options for compliance; please consult the person listed under FOR
FURTHER INFORMATION CONTACT.
Small businesses may send comments on the actions of Federal
employees who enforce or otherwise determine compliance with Federal
regulations to the Small Business Administration's Small Business and
Agriculture Regulatory Enforcement Ombudsman and the Regional Small
Business Regulatory Fairness Boards. The Ombudsman evaluates these
actions annually and rates each agency's responsiveness to small
business. If you wish to comment on actions by employees of FMCSA, call
1-888-REG-FAIR (1-888-734-3247). DOT has a policy regarding the rights
of small entities to regulatory enforcement fairness and an explicit
policy against retaliation for exercising these rights.
E. Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or Tribal government, in
the aggregate, or by the private sector of $168 million (which is the
value equivalent of $100 million in 1995, adjusted for inflation to
2019 levels) or more in any one year. Though this NPRM would not result
in such an expenditure, the Agency does discuss the effects of this
rule elsewhere in this preamble.
F. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) requires
that an agency consider the impact of paperwork and other information
collection burdens imposed on the public. An agency is prohibited from
collecting or sponsoring an information collection, as well as imposing
an information collection requirement, unless it displays a valid OMB
control number (5 CFR 1320.8(b)(3)(vi)).
This proposed rule would amend the existing approved information
collection titled ``Transportation of Household Goods; Consumer
Protection,'' OMB control number 2126-0025, which expires on November
30, 2022. Specifically, FMCSA seeks approval for the revision of the
information collection request (ICR) due to the Agency's development of
this NPRM. In accordance with 44 U.S.C. 3507(d), FMCSA will submit the
proposed information collection amendments to the Office of Information
and Regulatory Affairs (OIRA) at OMB for its approval.
Title: Transportation of Household Goods; Consumer Protection.
OMB Control Number: 2126-0025.
Type of Review: Revision of a currently-approved information
collection.
Summary: FMCSA is proposing to make various changes to the
household goods regulations recommended by Household Goods Consumer
Protection Working Group. These proposed changes include further
revisions to streamline the Rights and Responsibilities booklet which
would be incorporated in appendix A of the regulations, requiring new
binding or non-binding estimates when an individual shipper tenders
more goods or requests additional service instead of a revised
estimate, allowing a motor carrier to provide a virtual survey,
removing the exception from the survey requirement for moves where the
household goods are located more than 50 miles from the motor carrier
agent's location, eliminating the order for service and incorporating
that document into the bill of lading, and making other minor updates
to increase the clarity of the regulations. These proposed changes are
intended to reduce the paperwork burden on household goods motor
carriers and reduce confusion for individual shippers. FMCSA summarizes
the resulting changes from the existing ICR below.
IC-1: Required Information for Prospective Individual Shippers
FMCSA is proposing to require the Rights and Responsibilities
booklet to be provided earlier in the process, when the estimate is
provided to the shipper, which would result in providing an additional
two documents per interstate move. This is because FMCSA estimates that
shippers request an estimate from three household goods carriers but
contract with only one. FMCSA multiplied the average number of
interstate moves per year by 40 percent to estimate the number of hard-
copy Rights and Responsibilities booklets provided to shippers under
the existing requirements (558,851 x 40 percent = 223,540 copies).
FMCSA then multiplied the number of orders for
[[Page 43833]]
service where hard-copies are provided by three, to account for the
assumption that shippers seek an estimate from three different
household goods carriers, (223,540 x 3 = 670,621 copies). The number of
additional hard copies that would be provided as a result of this rule
is 447,081 (670,621-223,540 = 447,081 copies). It is estimated that a
carrier could print roughly 1,600 pages per hour and each Rights and
Responsibilities booklet consists of 25 pages. The increase in the
number of hours needed to print hard-copy Rights and Responsibilities
booklets would be the additional hard copies multiplied by 25 pages per
document (447,081 x 25 = 11,177,021 pages) divided by 1,600 pages per
hour (11,177,021/ 1,600 = 6,986 hours). The Agency assumes printing and
storing these booklets would be completed by an office clerk with a
loaded hourly wage of $33.31. Therefore, the increase in burden hours
would be 6,986 and the increase in cost resulting from the proposed
rule is $232,705, (6,986 burden hours x $33.31 = $232,693).
Estimated Number of Respondents: 5,100.
Estimated Responses: 447,081.
Estimated Burden Hours: 6,986.
Estimated Cost: $232,693.
IC-2: Estimating Charges
The proposed rule would require that movers offer surveys for all
household goods shipments, including those that are located over 50
miles from the motor carrier agent's location. Currently, household
goods motor carriers are not required to offer surveys for household
goods shipments that are located beyond 50 miles from the motor carrier
agent's location. FMCSA estimates that all shippers located beyond 50
miles from the motor carrier agent's location would take advantage of
the survey option. There is an annual average of 27,949 moves beyond 50
miles, of those moves that currently receive non-binding surveys. These
surveys would take about 1.5 hours each, and FMCSA assumes all tasks
will be completed by a first line supervisor of a transportation and
material moving worker with a loaded hourly wage of $44.11, resulting
in an increase of 41,923 burden hours and an increased cost of
$1,849,045 (27,959 x 1.5 hours x $44.11 = $1,849,045).
Estimated Number of Respondents: 5,100.
Estimated Responses: 27,949.
Estimated Burden Hours: 41,923.
Estimated Cost: $1,849,045.
IC-3: Pick Up of Shipments of Household Goods
FMCSA is proposing to eliminate the order for service because much
of the information provided on the order for service is also provided
on the bill of lading. Currently, each interstate move requires both an
order for service and a bill of lading and it takes 30 minutes to
prepare each document. As such, removing the order for service form
requirement would save 30 minutes per move. The Agency assumes all
tasks would be completed by a cargo agent with a loaded hourly wage of
$33.80. With the annual average of 558,851 total interstate moves and
30 minute time savings, motor carriers would save 279,426 burden hours
(558,851 interstate moves x -0.5 hours = -279,426 burden hours). The
estimated cost savings would be $9,445,421 (-279,426 burden hours x
$33.80 = -$9,445,421).
Estimated Number of Respondents: 5,100.
Estimated Responses: 558,851.
Estimated Burden Hours: -279,426.
Estimated Cost Savings: $9,445,421.
Document Production
The estimates of the costs of producing required documents is based
on the total number of pages movers would need to produce multiplied by
a flat rate of $0.15 per page. With the estimated annual average of
670,621 ``Your Rights and Responsibilities'' documents printed, there
would be 16,765,531 total pages printed (670,621 documents printed x 25
pages per document = 16,765,531 total pages printed). The estimated
total annual printing cost to respondents is $2.5 million (16,765,531
total pages printed x $0.15 per page = $2.5 million).
In removing the order for service form, which is a one page
document, the Agency estimates that there would be 558,851 fewer
documents printed. This results in an estimated annual cost savings to
respondents of $83,828 (558,851 documents printed x 1 page per document
x $0.15 per page = $83,828).
Estimated Number of Respondents: 5,100.
Estimated Responses: 1,229,472.
Estimated Cost: $2,431,002.
FMCSA asks for comment on the information collection requirements
of this proposed rule. Specifically, the Agency asks for comment on:
(1) Whether the proposed information collection is necessary for FMCSA
to perform its functions; (2) how the Agency can improve the quality,
usefulness, and clarity of the information to be collected; (3) the
accuracy of FMCSA's estimate of the burden of this information
collection; and (4) how the Agency can minimize the burden of the
information collection.
If you have comments on the collection of information, you must
send those comments to FMCSA as outlined under the PUBLIC PARTICIPATION
AND REQUEST FOR COMMENTS section at the beginning of this NPRM.
G. E.O. 13132 (Federalism)
A rule has implications for federalism under Section 1(a) of E.O.
13132 if it has ``substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government.''
FMCSA has determined that this rule would not have substantial
direct costs on or for States, nor would it limit the policymaking
discretion of States. Nothing in this document preempts any State law
or regulation. Therefore, this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Impact
Statement.
H. Privacy
The Consolidated Appropriations Act, 2005,\24\ requires the Agency
to conduct a privacy impact assessment (PIA) of a regulation that will
affect the privacy of individuals. This NPRM would not require the
collection of personally identifiable information (PII). The Agency
will complete a Privacy Threshold Assessment (PTA) to evaluate the
risks and effects the proposed rulemaking might have on collecting,
storing, and sharing personally identifiable information. The PTA will
be submitted to FMCSA's Privacy Officer for review and preliminary
adjudication and to DOT's Privacy Officer for review and final
adjudication.
---------------------------------------------------------------------------
\24\ Public Law 108-447, 118 Stat. 2809, 3268, note following 5
U.S.C. 552a (Dec. 4, 2014).
---------------------------------------------------------------------------
I. E.O. 13175 (Indian Tribal Governments)
This rule does not have Tribal implications under E.O. 13175,
Consultation and Coordination with Indian Tribal Governments, because
it does not have a substantial direct effect on one or more Indian
Tribes, on the relationship between the Federal Government and Indian
Tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian Tribes.
[[Page 43834]]
J. National Environmental Policy Act of 1969
FMCSA analyzed this proposed rule for the purpose of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and
determined this action is categorically excluded from further analysis
and documentation in an environmental assessment or environmental
impact statement under FMCSA Order 5610.1 (69 FR 9680, March 1, 2004),
Appendix 2, paragraphs 6.m. and 6.l. The Categorical Exclusions (CEs)
in paragraphs 6.m. and 6.l., respectively, cover regulations requiring
every motor carrier to issue and keep a receipt or bill of lading (or
record) for property tendered for transportation in interstate or
foreign commerce, and regulations implementing procedures applicable to
the operations of household good carriers engaged in the transportation
of household goods. The proposed requirements in this rule are covered
by these CEs, and the proposed rule would not have any effect on the
quality of the environment. The CE determination is available for
inspection or copying in the docket.
List of Subjects
49 CFR 371
Brokers, Motor carriers, Reporting and recordkeeping requirements.
49 CFR 375
Advertising, Consumer protection, Freight, Highways and roads,
Insurance, Motor carriers, Moving of household goods, Reporting and
recordkeeping requirements.
Accordingly, FMCSA proposes to amend 49 CFR chapter 3, parts 371
and 375 as follows:
PART 371--BROKERS OF PROPERTY
0
1. The authority citation for part 371 continues to read as follows:
Authority: 49 U.S.C. 13301, 13501, and 14122; subtitle B, title
IV of Pub. L. 109-59; and 49 CFR 1.87.
0
2. Amend Sec. 371.113 by revising paragraph (a) to read as follows:
Sec. 371.113 May I provide individual shippers with a written
estimate?
(a) You may provide each individual shipper with an estimate of
transportation and accessorial charges. If you provide an estimate, it
must be in writing and must be based on a physical survey of the
household goods conducted by the authorized motor carrier on whose
behalf the estimate is provided. The estimate must be prepared in
accordance with a signed, written agreement, as specified in Sec.
371.115 of this subpart.
* * * * *
PART 375--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE;
CONSUMER PROTECTION REGULATIONS
0
3. The authority citation for part 375 continues to read as follows:
Authority: 49 U.S.C. 13102, 13301, 13501, 13704, 13707, 13902,
14104, 14706, 14708; subtitle B, title IV of Pub. L. 109-59; and 49
CFR 1.87.
0
4. Amend Sec. 375.103 by:
0
a. Adding, in alphabetical order, definitions for ``Bill of lading''
and ``Physical survey'';
0
b. Removing the definition for ``Order for service''; and
0
c. Revising the definitions for ``Reasonable dispatch'' and ``Surface
Transportation Board''.
The additions and revisions read as follows:
Sec. 375.103 What are the definitions of terms used in this part?
* * * * *
Bill of lading means both the receipt and the contract for the
transportation of the individual shipper's household goods.
* * * * *
Physical survey means a survey which is conducted on-site or
virtually. If the survey is performed virtually, the household goods
motor carrier must be able to view the household goods through live
video that allows it to clearly identify the household goods to be
transported.
* * * * *
Reasonable dispatch means the performance of transportation on the
dates, or during the period, agreed upon by you and the individual
shipper and shown on the bill of lading. For example, if you
deliberately withhold any shipment from delivery after an individual
shipper offers to pay the binding estimate or 110 percent of a non-
binding estimate, you have not transported the goods with reasonable
dispatch. The term ``reasonable dispatch'' excludes transportation
provided under your tariff provisions requiring guaranteed service
dates. You will have the defenses of force majeure, i.e., superior or
irresistible force, as construed by the courts.
* * * * *
Surface Transportation Board means an independent agency of the
United States that regulates household goods carrier tariffs, among
other economic regulatory responsibilities.
* * * * *
0
5. Amend Sec. 375.211 by revising the introductory text of paragraph
(a)(2) to read as follows:
Sec. 375.211 Must I have an arbitration program?
(a) * * *
(2) Before execution of the bill of lading, you must provide notice
to the individual shipper of the availability of neutral arbitration,
including all three of the following items:
* * * * *
0
6. Amend Sec. 375.213 by:
0
a. Revising paragraph (a);
0
b. Revising the introductory text of paragraph (b);
0
c. Removing paragraph (b)(1);
0
d. Redesignating paragraphs (b)(2) through (5) as paragraphs (b)(1)
through (4);
0
e. Redesignating paragraph (e) as paragraph (f);
0
f. Adding new paragraph (e); and
0
g. Revising newly redesignated paragraph (f).
The revisions and addition read as follows:
Sec. 375.213 What information must I provide to a prospective
individual shipper?
(a) When you provide the written estimate to a prospective
individual shipper, you must also provide the individual shipper with
the following documents:
(1) The DOT publication titled ``Ready to Move?--Tips for a
Successful Interstate Move'' (Department of Transportation publication
FMCSA-ESA-03-005, or its successor publication). You must provide the
individual shipper with either a copy or provide a hyperlink on your
internet website to the web page on the FMCSA website containing that
publication.
(2) The contents of appendix A of this part, titled ``Your Rights
and Responsibilities When You Move'' (Department of Transportation
publication FMCSA-ESA-03-006, or its successor publication). You must
provide the individual shipper with either a copy or provide a
hyperlink on your internet website to the web page on the FMCSA website
with the publication ``Your Rights and Responsibilities When You
Move.''
(b) Before you execute a bill of lading for a shipment of household
goods, you must furnish to your prospective individual shipper all four
of the following documents:
* * * * *
(e) If you have a website, you are required to display prominently
either a link to the DOT publication titled ``Ready to Move?--Tips for
a Successful Interstate Move'' (Department of
[[Page 43835]]
Transportation publication FMCSA-ESA-03-005, or its successor
publication) on the FMCSA website or a true and accurate copy of that
document on your website.
(f) If an individual shipper elects to access the Federal consumer
protection information via the hyperlink on the internet as provided in
paragraphs (a)(1) and (2) of this section:
(1) You must obtain a signed, dated receipt showing the individual
shipper has received either or both of the publications that includes
verification of the shipper's agreement to access the Federal consumer
protection information on the internet.
(2) You must maintain the signed receipt required by paragraph
(f)(1) of this section for one year from the date the individual
shipper signs the receipt. You are not required to maintain the signed
receipt when you do not actually transport household goods or perform
related services for the individual shipper who signed the receipt.
0
7. Revise Sec. 375.215 to read as follows:
Sec. 375.215 How must I collect charges?
You must issue an honest, truthful invoice that includes all the
information required by subpart A of part 373 of this chapter. All
rates and charges for the transportation and related services must be
in accordance with your appropriately published tariff provisions in
effect, including the method of payment.
0
8. Amend Sec. 375.217 by revising paragraph (b) to read as follows:
Sec. 375.217 How must I collect charges upon delivery?
* * * * *
(b) You must specify the same form of payment provided in paragraph
(a) of this section when you prepare the bill of lading.
* * * * *
0
9. Amend Sec. 375.221 by revising paragraph (c) to read as follows:
Sec. 375.221 May I use a charge or credit card plan for payments?
* * * * *
(c) If you allow an individual shipper to pay an invoice by charge
or credit card, you are deeming such payment to be the same as payment
by cash, certified check, money order, or a cashier's check.
* * * * *
0
10. Amend Sec. 375.401 by revising paragraphs (a), (b) introductory
text, and (f) to read as follows:
Sec. 375.401 Must I estimate charges?
(a) You must conduct a physical survey of the household goods to be
transported and provide the prospective individual shipper with a
written estimate, based on the physical survey, of the charges for the
transportation and all related services. An individual shipper may
elect to waive a physical survey. The waiver agreement is subject to
the following requirements:
(1) It must be in writing;
(2) It must be signed by the shipper before the shipment is loaded;
and
(3) You must retain a copy of the waiver agreement as an addendum
to the bill of lading with the understanding that the waiver agreement
will be subject to the same record retention requirements that apply to
bills of lading, as provided in Sec. 375.505(d).
(b) Before you execute a bill of lading for a shipment of household
goods for an individual shipper, you must provide a written estimate of
the total charges and indicate whether it is a binding or a non-binding
estimate, as follows:
* * * * *
(f) You must determine charges for any accessorial services such as
elevators, long carries, etc., before preparing the bill of lading for
binding or non-binding estimates. If you fail to ask the shipper about
such charges and fail to determine such charges before preparing the
bill of lading, you must deliver the goods and bill the shipper after
30 days for the additional charges.
* * * * *
0
11. Amend Sec. 375.403 by revising paragraphs (a)(1), (a)(6)(ii), and
(a)(9) to read as follows:
Sec. 375.403 How must I provide a binding estimate?
(a) * * *
(1) You must base the binding estimate on the physical survey
unless waived as provided in Sec. 375.401(a).
* * * * *
(6) * * *
(ii) Prepare a new binding estimate prior to loading. The new
estimate must be signed by the individual shipper. You should maintain
a record of the date, time, and manner that the new estimate was
prepared.
* * * * *
(9) If the individual shipper requests additional services after
the bill of lading has been issued, you must inform the individual
shipper of the additional charges involved. The individual shipper must
agree to the new charges. You must prepare a new binding estimate and
have the new binding estimate signed by the individual shipper. You may
require full payment at destination for these additional services and
for 100 percent of the original binding estimate. If applicable, you
also may require payment at delivery of charges for impracticable
operations (as defined in your carrier tariff) not to exceed 15 percent
of all other charges due at delivery. You must bill and collect from
the individual shipper any applicable charges not collected at delivery
in accordance with subpart H of this part.
* * * * *
0
12. Amend Sec. 375.405 by revising paragraphs (b)(7)(ii) and (c) to
read as follows:
Sec. 375.405 How must I provide a non-binding estimate?
* * * * *
(b) * * *
(7) * * *
(ii) Prepare a new non-binding estimate which must be signed by the
individual shipper.
* * * * *
(c) If you furnish a non-binding estimate, you must enter the
estimated charges upon the bill of lading.
* * * * *
Sec. 375.501 [Removed and Reserved]
0
13. Remove and reserve Sec. 375.501.
0
14. Amend Sec. 375.505 by revising paragraphs (a), (b) introductory
text, (b)(1), (6), and (14 through (17), and (d), and adding paragraphs
(e) through (h) to read as follows:
Sec. 375.505 Must I write up a bill of lading?
(a) Before you receive a shipment of household goods you will
transport for an individual shipper, you must prepare and issue a bill
of lading. The bill of lading must contain the terms and conditions of
the contract.
(b) On a bill of lading, you must include the following 17 items:
(1) Your legal or trade name (i.e., doing business as name) as it
is registered with FMCSA, to include your physical address.
(2) The names, telephone numbers, addresses, and USDOT numbers of
any motor carriers, when known, who will participate in transportation
of the shipment.
(3) The individual shipper's name, address, and, if available,
telephone number(s).
* * * * *
(6) For non-guaranteed service, the agreed date or period of time
for pickup of the shipment and the agreed date or period of time for
the delivery of the shipment.
* * * * *
(14) A complete description of any special or accessorial services
ordered and minimum weight or volume charges applicable to the
shipment, subject to the following two conditions:
[[Page 43836]]
(i) If you provide service for individual shippers on rates based
upon the transportation of a minimum weight or volume, you must
indicate on the bill of lading the minimum weight- or volume-based
rates, and the minimum charges applicable to the shipment.
(ii) If you do not indicate the minimum rates and charges, your
tariff must provide how you will compute the final charges relating to
such a shipment based upon the actual weight or volume of the shipment.
(15) Each attachment to the bill of lading. Each attachment is an
integral part of the bill of lading contract. If not provided elsewhere
to the shipper, the following two items must be added as an attachment
to the bill of lading.
(i) The binding or non-binding estimate.
(ii) The inventory.
(16) Any identification or registration number you assign to the
shipment.
(17) A statement that the bill of lading incorporates by reference
all the services included on the estimate.
* * * * *
(d) You must retain a copy of the bill of lading for each move you
perform for at least 1 year from the date you created the bill of
lading.
(e) You, your agent, or your driver must inform the individual
shipper if you reasonably expect a special or accessorial service is
necessary to safely transport a shipment. You must refuse to accept the
shipment when you reasonably expect a special or accessorial service is
necessary to safely transport a shipment and the individual shipper
refuses to purchase the special or accessorial service. You must make a
written note if the shipper refuses any special or accessorial services
that you reasonably expect to be necessary.
(f) You and the individual shipper must sign the bill of lading
prior to the shipment being loaded. The bill of lading must be signed
at both the origin and the destination. You must provide a dated copy
of the bill of lading to the individual shipper at the time you sign
the bill of lading.
(g)(1) You may provide the individual shipper with blank or
incomplete estimates, bills of lading, or any other blank or incomplete
documents pertaining to the move.
(2) You may require the individual shipper to sign an incomplete
document prior to the shipment being loaded provided it contains all
relevant shipping information except the actual shipment weight and any
other information necessary to determine the final charges for all
services performed. You may omit only that information that cannot be
determined before loading, such as actual shipment weight in the case
of shipments moved under non-binding estimates or unforeseen charges
incurred in transit.
(3) You may not require an individual shipper to sign a blank
document.
(h) The bill of lading must be provided to, signed, and dated by
the individual shipper at least 3 days before the shipment is scheduled
to be loaded. You must provide the individual shipper the opportunity
to rescind the bill of lading without any penalty for a 3-day period
after the individual shipper signs the bill of lading. If the
individual shipper tenders additional items to be moved or requires
additional services on the day of the move, resulting in a new binding
estimate under Sec. 375.403(a)(6)(ii) or a new non-binding estimate
under Sec. 375.405(b)(7)(ii), the corresponding changes to the bill of
lading from the new estimate do not require a new 3-day period as
otherwise required in this paragraph.
0
15. Amend Sec. 375.605 by revising paragraph (a) introductory text to
read as follows:
Sec. 375.605 How must I notify an individual shipper of any service
delays?
(a) When you are unable to perform either the pickup or delivery of
a shipment on the dates or during the periods specified in the bill of
lading and as soon as the delay becomes apparent to you, you must
notify the individual shipper of the delay, at your expense, in one of
the following six ways:
* * * * *
Sec. 375.801 [Amended]
0
16. Amend Sec. 375.801 by removing the words ``freight or expense
bill'' and adding, in their place, the word ``invoice''.
Sec. 375.803 [Amended]
0
17. Amend Sec. 375.803 by removing the words ``freight or expense
bill'' and adding, in their place, the word ``invoice''.
Sec. 375.805 [Amended]
0
18. Amend Sec. 375.805 by removing the words ``freight bill'' and
adding, in their place, the word ``invoice''.
Sec. 375.807 [Amended]
0
19. Amend Sec. 375.807 by removing the words ``freight bill'' and
adding, in their place, the word ``invoice'' in the section heading and
paragraphs (a) and (c)(1) through (4).
0
20. Revise appendix A to part 375 to read as follows:
Appendix A to Part 375--Your Rights and Responsibilities When You Move
General Requirements
The Federal Motor Carrier Safety Administration's (FMCSA)
regulations protect consumers of interstate moves and define the
rights and responsibilities of consumers (shippers) and household
goods motor carriers (movers).
The household goods motor carrier gave you this booklet to
provide information about your rights and responsibilities as an
individual shipper of household goods. Your primary responsibilities
are to ensure that you understand the terms and conditions of the
moving contract (bill of lading), and know what to do in case
problems arise.
The primary responsibility for protecting your move lies with
you in selecting a reputable household goods mover or household
goods broker, and making sure you understand the terms and
conditions of your contract and the remedies that are available to
you in case problems arise.
Definitions and Common Terms
Accessorial (Additional) Services--These are services such as
packing, unpacking, appliance servicing, or piano carrying, that you
request to be performed or are necessary because of landlord
requirements or other special circumstances.
Advanced Charges--Charges for services performed by someone
other than the mover. A professional, craftsman, or other third
party may perform these services at your request. The mover pays for
these services and adds the charges to your bill of lading.
Agent--A local moving company authorized to act on behalf of a
larger national company.
Appliance Service by Third Party--The preparation of major
electrical appliances to make them safe for transportation. Charges
for these services may be in addition to the line-haul charges.
Bill of Lading--The receipt for your shipment and the contract
for its transportation.
Broker--A company that arranges for the transportation of
household goods by a registered moving company.
Collect on Delivery (COD)--This means payment is required at the
time of delivery at the destination residence (or warehouse).
Certified Scale--Any scale designed for weighing motor vehicles,
including trailers or semitrailers not attached to a tractor, and
certified by an authorized scale inspection and licensing authority.
A certified scale may also be a platform or warehouse type scale
that is properly inspected and certified.
Commercial Zone--A commercial zone is roughly equivalent to the
local metropolitan area of a city or town. Moves that cross state
lines within these zones are exempt from FMCSA's commercial
jurisdiction and, therefore, the moves are not subject to FMCSA
household goods regulations. For example, a move between Brooklyn,
New York, and Hackensack, New Jersey, would be within the New York
City commercial zone. Although it crossed states lines, this move
would not be subject to FMCSA household goods regulations.
[[Page 43837]]
Estimate, Binding--This is a written agreement made in advance
with your mover. It guarantees the total cost of the move based upon
the quantities and services shown on the estimate.
Estimate, Non-Binding--This is what your mover believes the cost
will be, based upon the estimated weight of the shipment and the
services requested. A non-binding estimate is not binding on the
mover. The final charges will be based upon the actual weight of
your shipment, the services provided, and the tariff provisions in
effect.
Expedited Service--An agreement with the mover to perform
transportation by a set date in exchange for an agreed upon
additional charge.
Flight Charge--An additional charge for carrying items up or
down flights of stairs. Charges for these services may be in
addition to the line-haul charges.
Full Value Protection--The liability coverage option you are to
receive for your shipment unless you waive this option in writing.
It means your mover will process your loss and damage claim by
replacing or repairing the item to restore its original like, kind,
and quality.
Guaranteed Pickup and/or Delivery Service--An additional level
of service featuring guaranteed dates of service. Your mover will
provide reimbursement to you for delays. This service may be subject
to minimum weight requirements.
High-Value Article--These are items valued at more than $100 per
pound.
Household Goods--As used in connection with transportation,
household goods are the personal effects or property used, or to be
used, in a dwelling, when part of the equipment or supplies of the
dwelling belong to an individual shipper. Transporting of the
household goods must be arranged for and paid by you or another
individual on your behalf.
Household Goods Motor Carrier--A motor carrier that, in the
normal course of its business of providing transportation of
household goods, offers some or all the following additional
services: (1) Binding and non-binding estimates, (2) Inventorying,
(3) Protective packing and unpacking of individual items at personal
residences, and (4) Loading and unloading at personal residences.
The term does not include a motor carrier when the motor carrier
provides transportation of household goods in containers or trailers
that are entirely loaded and unloaded by an individual (other than
an employee or agent of the motor carrier).
Individual Shipper--Any person who:
1. Is the shipper, consignor, or consignee of a household goods
shipment;
2. Is identified as the shipper, consignor, or consignee on the
face of the bill of lading;
3. Owns the household goods being transported; and
4. Pays his or her own tariff transportation charges.
Impracticable Operations--Conditions which make it physically
impossible for the mover to perform pickup or delivery with its
normally assigned road-haul equipment so that the mover is required
to use specialized equipment and/or additional labor to complete
pickup or delivery of your shipment. A mover may require payment of
additional charges for services required due to impracticable
operations, even if you do not request these services. The specific
services considered to be impracticable operations by your mover are
defined in your mover's tariff.
Inventory--The detailed list of your household goods showing the
quantity and condition of each item.
Line-Haul Charges--The charges for the transportation portion of
your move when a household goods mover transports your shipment.
Household goods brokers or movers must provide you with basic
information before you move. You should expect to receive the
following information:
<bullet> A written estimate
<bullet> The ``Ready to Move'' Brochure (or a web link to access the
document)
<bullet> Information about the mover's arbitration program
<bullet> Written notice about access to the mover's tariff
<bullet> The process for handling claims
<bullet> This booklet, ``Your Rights and Responsibilities When You
Move'' (or a web link to access the document)
You should avoid brokers and movers that are not registered with
FMCSA or refuse to perform a physical survey of your household
goods. If a broker or mover requires cash, FMCSA advises you to
retain all receipts and supporting documents associated with the
transaction.
Customer's Responsibilities
As a customer, you have responsibilities both to your mover and
to yourself. They include:
<bullet> Reading all moving documents issued by the mover or
broker.
<bullet> Being available at the time of pickup and delivery of
your shipment. If you are not available, you should appoint a
representative to act on your behalf.
<bullet> Promptly notifying your mover if something has changed
regarding your shipment (i.e., move dates, additional items).
<bullet> Making payment in the amount required and in the form
agreed to with the mover based on the bill of lading document.
<bullet> Promptly filing claims for loss, damage, or delays with
your mover, if necessary.
Estimates
The two most important things to understand for your interstate
move are: The types of estimates offered and the mover's liability
in the event of loss or damage. As you read further, you will
discover that movers offer two different types of estimates--binding
and non-binding. The type of estimate you select determines how the
charges for your shipment will be calculated. The estimate provided
by your mover will notify you of the two liability coverage options:
Option 1--Full Value Protection and Option 2--Waiver of Full Value
Protection (60 cents per pound). The mover's liability is discussed
in detail in the next section.
FMCSA requires your mover to provide written estimates on every
shipment transported for you. Your mover's verbal quote of charges
is not an official estimate since it is not in writing. Your mover
must provide you with a written estimate of all charges including
transportation, and accessorial and advanced charges (defined at the
end of this booklet). This written estimate must be dated and signed
by you and the mover.
The estimate your mover provides you will include a statement
notifying you of two options of liability coverage for your
shipment: Full Value Protection and Waiver of Full Value Protection,
Released Value of 60 cents per pound per article.
Your mover must provide an estimate based upon a physical survey
of your household goods. A physical survey means a survey which is
conducted on-site or virtually, that allows your mover to see the
household goods to be transported. A physical survey must be
performed unless you waive this requirement in writing.
Please be aware that a household goods broker may only provide
an estimate on a mover's behalf if the broker has a written
agreement with the mover and uses the mover's published tariff.
You and your mover may agree to change an estimate of charges
based on changed circumstances, but only before your shipment is
loaded. Your mover may not change an estimate after loading the
shipment. There is more information about changes to estimates in
the following sections.
Binding Estimates
A binding estimate guarantees that you cannot be required to pay
more than the amount on the estimate at the time of delivery.
However, if you add additional items to your shipment or request
additional services, you and your mover may:
<bullet> Agree to abide by the original binding estimate;
<bullet> prepare a new binding estimate; or
<bullet> agree to convert the binding estimate into a non-
binding estimate.
If you and the mover do not agree to one of the three options
listed above, the mover is not required to service the shipment. If
the mover does not give you a new binding estimate in writing, or
agree in writing to convert the binding estimate to a non-binding
estimate before your goods are loaded, the original binding estimate
is reaffirmed. Under these circumstances, your mover should not
charge or collect more than the amount of the original binding
estimate at delivery for the quantities and services included in the
estimate.
If there are unforeseen circumstances (such as elevators,
stairs, or required parking permits) at the destination the mover
can bill you for these additional expenses after 30 days from
delivery. Charges for services required because of impracticable
operations (defined at the end of this booklet) are due at delivery,
but may not exceed 15 percent of all other charges due at delivery;
any remaining charges will be billed to you with payment due in 30
days from delivery.
If you are unable to pay 100 percent of the charges on a binding
estimate at delivery, your mover may place your shipment in
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storage at your expense. In an effort to schedule delivery of your
shipment from storage, you will have to pay the required charges and
storage fees, if listed in the tariffs, after your shipment arrives
at the residence.
Your mover may charge a fee to prepare a binding estimate.
Non-Binding Estimates
A non-binding estimate is intended to provide you with an
estimate of the cost of your move. A non-binding estimate is not a
guarantee of your final costs, but it should be reasonably accurate.
The estimate must indicate that your final charges will be based
upon the actual weight of your shipment, the services provided, and
the mover's published tariff. Therefore, the amount of your mover's
non-binding estimate may be different than the amount you ultimately
must pay to receive your shipment.
A non-binding estimate must be in writing and clearly describe
the shipment and all services provided. Under a non-binding
estimate, the mover cannot require you to pay more than 110 percent
of the non-binding estimate at the time of delivery. This does not
excuse you from paying all the charges due on your shipment. The
mover will bill you for any remaining charges after 30 days from
delivery.
On the day of pick-up, if you have additional items to move,
your mover must do one of two things prior to loading:
<bullet> Reaffirm your non-binding estimate; or
<bullet> prepare a new non-binding estimate to include all the
items that are being moved.
If you and the mover do not agree to one of the two options
listed above, the mover is not required to service the shipment. If
you are unable to pay 110 percent of the charges on a non-binding
estimate at delivery, your mover may place your shipment in storage
at your expense. In order to schedule delivery of your shipment from
storage, you will likely have to agree to pay the required charges
and storage fees, if listed in the tariffs, after your shipment
arrives at the residence.
Your mover must give you possession of your shipment if you pay
110 percent of a non-binding estimate or 100 percent of a binding
estimate, plus 15 percent of the impracticable operations charges
(if applicable). If your mover does not relinquish possession, the
mover is holding your shipment hostage in violation of Federal law.
Your Mover's Liability and Your Claims
In general, your mover is legally liable for loss or damage that
occurs during the transportation of your shipment and all related
services identified on the bill of lading.
The extent of your mover's liability is governed by the Surface
Transportation Board's Released Rates Order. The Surface
Transportation Board is an independent Federal agency that has
jurisdiction over HHG motor carrier tariffs and valuation for lost
or damaged goods. You may obtain a copy of the current Released
Rates Order by visiting the Surface Transportation Board's website
at: <a href="https://prod.stb.gov/wp-content/uploads/files/docs/householdGoodsMoving/41845.pdf">https://prod.stb.gov/wp-content/uploads/files/docs/householdGoodsMoving/41845.pdf</a>. In addition, your mover may, but is
not required to, offer to sell you separate third-party liability
insurance.
All moving companies are required to assume liability for the
value of the household goods they transport. However, there are two
different levels of liability that apply to interstate moves: Full
Value Protection and Waiver of Full Value Protection--Released
Value. It is important you understand the charges that apply and the
amount of protection provided by each level.
Full Value Protection
This is the most comprehensive option available to protect your
household goods, but it will increase the cost of your move. The
initial cost estimate of charges that you receive from your mover
must include this level of protection. Your shipment will be
transported at this level of liability unless you waive Full Value
Protection. Under your mover's Full Value Protection level of
liability, subject to the allowable exceptions in your mover's
tariff, if any article is lost, destroyed, or damaged while in your
mover's custody, your mover will, at its option, either (1) repair
the article to the extent necessary to restore it to the same
condition as when it was received by your mover, or pay you for the
cost of such repairs; or (2) replace the article with an article of
like, kind and quality, or pay you for the cost to replace the
items.
The exact cost for your shipment, including Full Value
Protection, may vary by mover and may be further subject to various
deductible levels. Full Value Protection will increase the cost of
your move above the basic transportation cost. The minimum valuation
level for determining the cost of Full Value Protection of your
shipment is $6.00 per pound times the weight of your shipment. Your
mover may use a higher minimum value or you may declare a higher
value for your shipment (at an additional cost). The charges that
apply for providing Full Value Protection must be shown in your
mover's tariff. Ask your mover for the details under its specific
program.
Under this option, movers are permitted to limit their liability
for loss or damage to articles of extraordinary value, unless you
specifically list these articles on the shipping documents. An
article of extraordinary value is any item whose value exceeds $100
per pound (for example, jewelry, silverware, china, furs, antiques,
oriental rugs, and computer software). Ask your mover for a complete
explanation of this limitation before your move. It is your
responsibility to study this provision carefully and to make the
necessary declaration.
Waiver of Full Value Protection (Released Value of 60 Cents per Pound
per Article)
Released Value is minimal protection; however, it is the most
economical protection available as there is no charge to you. Under
this option, the mover assumes liability for no more than 60 cents
per pound, per article. For example, if a 10-pound stereo component
valued at $1,000 was lost or destroyed, the mover would be liable
for no more than $6.00 (10 pounds x $ .60). Obviously, you should
think carefully before agreeing to such an arrangement.
Third Party Insurance
If you purchase separate third party cargo liability insurance
through your mover, the mover is required to issue a policy or other
written record of the purchase and to provide you with a copy of the
policy or other document at the time of purchase. If the mover fails
to comply with this requirement, the mover is liable for any claim
for loss or damage.
Shipments transported under a mover's bill of lading may be
subject to arbitration in the event of a dispute over loss or damage
claims. However, disputes with third party insurance companies are
not subject to FMCSA regulations.
Reducing Your Mover's Normal Liability
The following are some actions that may limit or reduce your
mover's liability for loss or damage to your household goods:
1. Your acts or omissions cause the loss or damage to occur. For
example, improper packing of containers you pack yourself do not
provide sufficient protection or you include perishable, dangerous,
or hazardous materials in your shipment without your mover's
knowledge. Federal law forbids you to ship hazardous materials in
your household goods boxes or luggage without informing your mover.
2. You chose the Waiver of Full Value Protection--Released Value
level of liability (60 cents per pound per article) but ship
household goods valued at more than 60 cents per pound per article.
3. You declare a value for your shipment which is less than the
actual value of the articles in your shipment.
4. You fail to notify your mover in writing of articles valued
at more than $100 per pound. (If you do notify your mover, you will
be entitled to full recovery up to the declared value of the article
or articles, not to exceed the declared value of the entire
shipment.)
Loss and Damage Claims
Movers customarily take every precaution to make sure that,
while your shipment is in their possession, no items are lost,
damaged or destroyed. However, despite the precautions taken,
articles are sometimes lost or destroyed during the move. You have
the right to file a claim with your mover to be compensated for loss
or damage.
You have 9 months from the date of delivery (or in the event of
loss for the entire shipment, from the date your shipment should
have been delivered) to file your claim.
The claim must be submitted in writing to your mover or to your
mover's third party insurer for claim processing. After you submit
your claim, your mover has 30 days to acknowledge receipt of it. The
mover then has 120 days to provide you with a disposition. The mover
might be entitled to 60-day extensions if the claim cannot be
processed or disposed of within 120 days. If an extension is
necessary, your mover must notify you in writing.
[[Page 43839]]
Delay Claims
Delay claims are processed when you have contracted with your
mover for guaranteed service for pickup and delivery. Your mover
will outline on the bill of lading any penalty or per diem
entitlements when there is a pickup delay and/or delivery delay.
Moving Paperwork
Do not sign entirely blank documents. And only sign incomplete
documents where the only incomplete sections are for information
that cannot be determined prior to loading, specifically the actual
weight of your shipment, in the case of a non-binding estimate, and
unforeseen charges that occur in transit or at destination.
Inventory
Your mover must prepare an inventory of your shipment. This is
usually done at the time the mover loads your shipment. The mover is
required to list any damage or unusual wear to any items. The
purpose is to make a record of the existence and condition of each
item before it is moved.
After completing the inventory, both you and the mover must sign
each page of the inventory. It is important that before signing you
make sure the inventory lists every item in your shipment and that
entries regarding the condition of each item are correct. You have
the right to note any disagreement. When your shipment is delivered,
if an item is missing or damaged, your ability to recover from the
mover for any loss or damage may depend on the notations made on
this form.
The mover will give you a copy of each page of the inventory.
Attach the complete inventory to your copy of the bill of lading. It
is your receipt for the shipment.
At the time your shipment is delivered, it is your
responsibility to check the items delivered against the items listed
on your inventory. If new damage is discovered, make a record of it
on the inventory form. Call the damage to the attention of the mover
and request that a record of the damage be made on the mover's copy
of the inventory.
After the complete shipment is unloaded, the mover will request
that you sign the mover's copy of the inventory to show that you
received the items listed. Do not sign until you have assured
yourself that it is accurate and that proper notations have been
entered regarding any missing or damaged items. Movers are
prohibited from having you sign documents that release the mover
from all liability for loss or damage to the shipment in exchange
for delivery.
Bill of Lading
Your mover is required by law to prepare a bill of lading for
your shipment. The bill of lading is the contract between you and
the mover for the transportation of your shipment. This document is
issued at least 3 days prior to the pickup date. The information on
the bill of lading is required to include all the information and
charges associated with the transportation of your shipment. The
driver who loads your shipment must give you a copy of the bill of
lading before or at the time of loading your shipment. The bill of
lading is an important document. Do not lose or misplace your copy.
Keep it available until your shipment is delivered, all charges are
paid, and all claims, if any, are settled.
IT IS YOUR RESPONSIBILITY TO READ THE BILL OF LADING BEFORE YOU
ACCEPT IT
The bill of lading requires the mover to provide the service you
requested and requires you to pay the charges for the service. It is
your responsibility to understand the bill of lading before you sign
it. If you do not agree with something on the bill of lading, do not
sign it until you are satisfied it is correct.
The bill of lading serves to identify the mover and specifies
when the transportation is to be performed. Be sure that the
portions of the bill of lading that note the dates when pickup and
delivery are to be performed are completed and that you agree with
the dates. The bill of lading also specifies the terms and
conditions for payment of the total charges and the maximum amount
required to be paid at the time of delivery for shipments moving
under a binding estimate. In the case of shipments moving under non-
binding estimates, the bill of lading will not include a final
calculation of charges because that cannot be determined until the
shipment is weighed. However, the bill of lading must contain all
relevant shipment information--except the shipment weight that will
be determined after the shipment has been weighed and any unforeseen
charges that occur in transit or at destination.
The bill of lading must include the following 17 items:
1. The legal or trade name (i.e., doing business as name) of the
mover as it is registered with FMCSA, to include its physical
address.
2. The names, telephone numbers, addresses, and USDOT Numbers of
any motor carriers, when known, who will participate in
transportation of the shipment.
3. Your name, address, and, if available, telephone number(s).
4. The form of payment the mover and its agents will honor at
delivery. The payment information must be the same that was entered
on the estimate.
5. When transportation is on a collect-on-delivery basis, the
name, address, and if furnished, the telephone number, facsimile
number, or email address of a person to notify about the charges.
The notification may also be made by overnight courier or certified
mail, return receipt requested.
6. For non-guaranteed service, the agreed date or period of time
for pickup of the shipment and the agreed date or period of time for
the delivery of the shipment.
7. For guaranteed service, subject to tariff provisions, the
dates for pickup and delivery, and any penalty or per diem
entitlements due to you.
8. The actual date of pickup.
9. The company or motor carrier identification number of the
vehicle(s) that will transport your shipment.
10. The terms and conditions for payment of the total charges,
including notice of any minimum charges.
11. The maximum amount your mover will demand at the time of
delivery in order for you to obtain possession of the shipment, when
you transport under a collect-on-delivery basis.
12. The valuation statements provided in the Surface
Transportation Board (STB)'s released rates order. These statements
require individual shippers either to accept Full Value Protection
for their liability or to waive the Full Value Protection in favor
of the STB's released rates. The released rates may be increased
annually by the motor carrier based on the U.S. Department of
Commerce's Cost of Living Adjustment. Contact the STB for a copy of
the Released Rates of Motor Carrier Shipments of Household Goods. If
the individual shipper waives your Full Value Protection in writing
on the STB's valuation statement, you must include the charges, if
any, for optional valuation coverage (other than Full Value
Protection).
13. Evidence of any insurance coverage sold to or procured for
the individual shipper from an independent insurer, including the
amount of the premium for such insurance.
14. A complete description of any special or accessorial
services ordered and minimum weight or volume charges applicable to
the shipment, subject to the following two conditions:
(i) If your mover provides service for you on rates based upon
the transportation of a minimum weight or volume, your mover must
indicate on the bill of lading the minimum weight- or volume-based
rates, and the minimum charges applicable to the shipment.
(ii) If your mover does not indicate the minimum rates and
charges, your mover's tariff must provide information to compute the
final charges relating to such a shipment based upon the actual
weight or volume of the shipment.
15. Each attachment to the bill of lading is an integral part of
the contract. That includes the binding or non-binding estimate,
inventory and any signed waiver documents associated with the
shipment.
16. Any identification or registration number assigned to the
shipment.
17. A statement that the bill of lading incorporates by
reference all the services included on the estimate, including any
new estimate prepared by the mover.
The bill of lading must be signed and dated by you and your
[…truncated; see source link]Indexed from Federal Register on August 10, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.