This may be a bit obscure, but I've been encouraging my clients to add a clause to their contracts that requires a carrier to bump up the weight of a shipment subject to a class rating based on density when that shipment is inspected.
Item 171 in the NMFC states articles rated by density and make reference to that item may have their weight "bumped" up to secure a lower rating. For instance, a shipment which has a density of 3.60 lbs. PCF (class 250) can have its cube multiplied by 4 lbs. PCF and bump the weight up to receive a class 150 rating. That bumping of the weight is required to be noted on the Bill of Lading at the time of the shipment.
The problem comes when carriers' Weight & Inspection departments inspect a shipment which shows one density and find it's a different density. Many times, shippers calculate their density based on the packaged product whereas the carriers are determining the density based on how it is palletized for shipment. That is correct but it reaps a considerable windfall for the carriers. Understandably, carriers are hoping for that "Gotcha" shipment as their revenue goes up, needless to say.
Some years ago, we wrote a clause into a client's contract to buffer this effect. The provision stated that if a carrier inspects the shipment and finds that the density is incorrect, they are required to bump the weight up to secure the lower rate. Other clients have also used the same language.
This is very "outside the box", but I think more companies should consider this approach. The benefits are clear for shippers who have this language.
Here's an example from yesterday. A client's supplier shipped six pallets of plastic drums without any formal NMFC description, showing a total weight of 1800 lbs. The carrier inspected the goods and found it had a cube of 469.44 Cubic Feet for a density of 3.83 lbs. PCF at class 250.
Ironically, the bill was rated as 2000 lbs. and if you used that weight, the density would be 4.26 lbs. PCF. Of course, that's not how it's done. Using the bumping clause language for inspected shipments, the weight would bump to 1878 lbs. and move at the same 2000 lbs. rate albeit at a class 150 rate. In this case, it would reduces the bill by more than half.
As you can see such language in your contract can control your freight costs a great deal.
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