How to Stay Legal in Missouri The Missouri Department of Transportation What is Important to Remember • Must publish a tariff • Tariff must be retained at each business location • You can decide your rates and charges for your services • Rules and regulations pertaining to rates and charges still exists as established by previous commission orders or state regulations for consumer and carrier protection 2 What is Important to Remember • Fuel surcharge method is still intact • Requirements are in place on how you prepare you tariff 3 Rates & Charges – What’s New Territorial Rates Statewide Hourly Rates Distance Rates within Commercial Zones 4 Rates and Charges – Territorial Rates What does this mean? Having different rates in different geographic areas Rate differences are based on costs, labor rates and other costs or justifications that determine your rates and charges and that they are reasonable and non-discriminatory 5 5 Territorial Rates - Example 1. Shipments within Northwest Zone– Hourly Rate for 1 man and 1 truck is $125.00 Shipments within St. Louis Zone– Hourly Rate for 1 man and 1 truck is $150.00 66 Territorial Rates - Example 2. Hourly rate for 1 man and 1 truck are as follows: Shipments within 25 miles of Jefferson City, MO is $125.00. Within 75 miles of Jefferson City, Mo but not wholly within 25 miles of Jefferson City, Mo is Jefferson City and $140.00. 25 miles 75 miles Note: Jefferson City is the carrier’s place of business 100 miles 77 Territorial Rates - Example 3. Hourly Rate Only Within 25 miles of shipment’s originating municipality where the population of that municipality is 25,000 or more, the hourly rate is $125.00 for 1 man and 1 truck. Within 25 miles of shipment’s originating municipality where the population of that municipality is less than 25,000, the hourly rate is $150.00 for 1 man and 1 truck. 88 Territorial Rates - Example 4. Distance Rate Only Northwest Zone Distance ADD WT 600 LBS Excess (Miles) St. Louis Zone 2000 LBS ADD WT Excess 4000 LBS ADD WT Excess 15 Distance ADD WT 600 LBS Excess (Miles) 2000 LBS ADD WT Excess 4000 LBS ADD WT Excess 15 189 21.99 496 15.39 804 13.85 194 22.51 509 15.83 825 14.21 199 23.22 524 16.19 848 15.57 204 23.84 538 16.54 869 14.97 20 190 21.99 498 15.39 806 13.85 196 22.51 511 15.83 827 14.21 201 23.22 526 16.19 850 15.57 206 23.84 540 16.54 871 14.97 20 30 30 40 40 99 Statewide Hourly Rates Regulation changes that required operation within municipalities to obtain authority Prior to passage of SB470 and HB 1402 hourly rates statewide were exceptions to distance rates Issuance of commission order that opens the use of hourly rates statewide 10 10 Distance Rates within Commercial Zones Carriers who continue to operate wholly within municipalities may use weight/distance rates as well as hourly rates 11 11 Rates & Charges – Generally Changes in rates must be effective in a future time frame with a minimum of one day from issued date Must post rate changes Seasonal or other time period rates may be published Tariff rule 4 CSR 265-10.120 on how the tariff is to be prepared 12 12 Rates & Charges – Generally Changing rates may impact quoted non binding estimates Changing rates may impact binding estimates Rates must be fixed, just and nondiscriminatory Reduced rates may be offered to all similarly situated if stated in the tariff – no coupons in advertisements Records must be maintained for two years 13 13 Rates & Charges – Conflicting Charges If rates and charges are listed within your tariff for the same service, both methods will have to be computed and the consumer will get the lower rate. 14 14 Rates & Charges – How to Eliminate Conflicting Charges 15 15 Rates & Charges - Estimates Binding Estimate Carrier may, but not required to, offer “The total charges of the shipment at time of delivery shall be based on the binding estimate or on the actual charges for the services performed, whichever is lower.” Includes surcharge if applicable If movement is performed using distance commodity rates, the shipment must be weighed 16 16 Rates & Charges - Estimates Non Binding Estimate • • • • Provide a written estimate upon request On-site visit not required Not a guaranteed price Does not bind or limit the carrier 17 17 Additional Service Rates and Charges • All services performed in conjunction with the transportation movement must be reflected in the tariff • May add or modify additional services dependent upon your needs • • Types of cartons Additional types of packing or unpacking services 18 18 Inventory Required When -- • Shipment is loaded on vehicle with • • • • another shipment When shipment is released at a value not to exceed 60 cent per pound Items of extraordinary value Shipment is being placed into storage Shipment is leaving storage 19 19 Valuation Distance Rates • Four types of valuations • • • • 60 cents per pound per article (No cost) Not to exceed $1.25 multiplied by the weight of the shipment Declared value Full value 20 20 Valuation Hourly Rates • Standard Valuation (fair market value of article) OR • Released Value (60 cents per pound per article where estimated weight is determined using the Military/Industry Table of Weights and Depreciation Guide) • Declared Value 21 21 Payments and Collection of Charges Payment due when shipment is delivered Carrier may limit credit card acceptance If any amount is charged for use of credit card, the amount must be stated in the tariff Carrier may extend credit on movements where a non-binding estimate was given and actual charges are over 10% of the estimate 22 22 Preparing or Modifying Your Tariff Opportunities for Assistance-- • Tariff Bureaus can prepare the tariff • MCS drafted three different sample tariffs that can be found on MCS Website at http://www.modot.mo.gov/mcs/HHG/index.htm • Call MCS to discuss specific items or questions 23 23 For More Information: [email protected] 573-751-7128 www.modot.org/mcs 1-866-831-6277 24 24