Post on 01-Oct-2020
CCSB 2013-1
Reclassification of Televisions
Current Item 63321
Proposed Change to Density Base
Sub Screen
Size
Class
1 >40” 200
2 <40” 125
Sub PCF Class
2 <4 400
3 4<8 175
4 8> 110
Sub PCF Class
6 <4 300
7 4<8 150
8 8> 100
In display or shelf ready packaging
with BOL notations and PKG
labeling with intent to file a claim.
In display or shelf ready packaging
without shipper intent file a claim.
CCSB 2013-1
Reclassification - Issues • Screen size under 40” - classification can increase depending upon density to class
150 - 175. It can also decrease based upon the density.
• While classification can decrease this docket also presents an increase in class to shelf ready packaging with filing damage claims. This can alarm the consumer and impact sales to Manufacture's and retailers.
• Shelf ready display packaging should not be considered into this classification change and for over 30 years TV’s have been shipped in this manner without cause.
• Carton damage is not significant and carriers need to be accountable for their actions.
• Changes in the four key areas of classification (Handling, Stowability, Density and value) has changed to improve handling & stowability, density improvements and significant value reduction in the last 10 years. These characteristics continue to improve and the current classification item of 63321 needs to be reduced downward to reflect these positive changes.
42 inch LCD
48x40x90 (100 cube/pallet)
21 units/pallet
46.3 pounds/unit
973 pound/pallet
PCF = 9.73
50 inch Plasma
55x45x101 (144 cube/pallet)
15 units/pallet
72.8 pounds/unit
1092 pounds/pallet
PCF = 7.58
Handling & Stowability
IMPROVEMENTS
• Increased Density
6.08 PCF
•Use of pallets for
ease of handling.
•Oversize Pallets
based on TV screen
size to prevent
overhang and
improve stack
heights.
• Use of stretch
wrap, banding and
corner boards to
strengthen pallet
stack stability.
55 inch LCD TV
64x48x72 (128 cube/pallet)
14 units/pallet
79.4 pounds/pallet
1112 pounds/pallet
PCF = 8.69
60 inch LCD TV
64x44x77 (125.4 cube/pallet)
12 units/pallet
86 pounds/pallet
1032 pounds/pallet
PCF = 8.23
IMPROVEMENTS
• Density increase as
reported of 6.08 PCF.
• Use of pallets for
ease of handling.
• Oversize Pallets
based on TV screen
size to prevent
overhang and improve
stack heights.
• Use of stretch wrap,
banding and corner
boards to strengthen
pallet stack stability.
Handling & Stowability
CCSB 2013-1
Television - Summary • SUMMARY
• Improved Handling & Stowability – oversize pallets, Stack heights and use stretch wrap.
• Improved Density or increased PCF as reported.
• Product Values reduced by up to 80% of when originally Classified.
• Screen sizes < 40” - Favorable handling, Stowability, Density (2005 study 7.9 PCF) and value.
• All of the above suggest classification reductions are necessary and notes to display packaged not justified.
CCSB 2013-1
Television - Recommendation
Option 1
• Amend item 63321 as follows:
• Screen sizes < 40” classify as 100.
• Screen sizes > 40” but less than 80” classify as class 150.
• Screen sizes 80” and > classify as 200.
Option 2
• Review and receive further comments from the industry.
• This change can provoke other similar class changes to shelf ready packaged products, unfairly increasing the costs to the Consumer Electronic Industry.
CCSB
Notice of Proposed Amendments to the NMFC
Reclassification of Televisions (TVs)
January 29, 2013
Key Points
8
• Call for Notations on Product and Bills of Lading • Handling and Stowability • Shelf ready packaging
• Density
Additional Marking / Notations Requirement
9
Item 63321 – Note Requires that Bills of Ladings and shipping packages be marked to indicate that any damage to packaging will result in a claim. For SEL the cost for these requirements would be cost prohibitive. In a global environment these product packaging changes would be a US only requirement. In addition the IS costs to add logic for TV models only to the BOL in multiple WMS platforms would also be costly. Notice...from a practicality standpoint – The shippers BOL goes no farther than the LTL carriers origin terminal. What is the reason for the notice of potential claim filing on the box? Will the carriers’ dockman be aware of this new notice and adjust their handling accordingly?
Handling and Stowability
10
• All SEL TV product is corner-boarded,
shrink wrapped and palletized. Including costlier custom size pallets for larger screen sizes. • SEL launched freight claims
reduction initiatives back in 2010, and as a result have increased our packaging costs dramatically.
• All product handling requirements are called out in our transportation agreements with our carriers.
• LTL carriers now have decking widely available • Stowability issues are mitigated
by this equipment
Claims History for TV Product shipped LTL
11
2012 claims ratio for TV’s shipped via LTL is 0.19%
Shelf Ready Packaging
12
• Big box retailers reject all carton damaged product, and issue chargebacks –
i.e. don’t pay for them, and in most cases don’t return them.
• It is common in todays retail environment to sell carton damaged freight (of all product) at a discount if that channel exists.
Two examples:
Transportation Characteristics
Density Distribution
13
SEL TV density distribution differs greatly from data presented in CCSB docket Product density of our 157 TV models measured reflects: - Average density of 8.81(pcf) vs 5.96 - 69% average 9.87 (pcf) vs 26% – density of 8 <10 is equal to class 100
Density Group (pcf) Density Range (pcf) Average Density (pcf) Percentages of Figures
Less than 4 0.67 - 3.97 2.57 32%
4 but less than 8 4.02 - 7.99 6.08 42%
8 or greater 8.02 - 28.86 9.80 26%
CCSB
Density Group (pcf) Density Range (pcf) Average Density (pcf) Percentages of Figures
Less than 4 3.46 - 3.61 3.56 2%
4 but less than 8 4.09 - 7.99 6.57 29%
8 or greater 8.02 - 14.75 9.87 69%
SEL
29
%
69
%
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