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RULE REVISION HISTORY
Rule 2 – APPLICATION OF RATES AND CHARGES

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There are no revisions published for this Rule.

Displaying: Original Published Date: 01/20/2016
RULE: 2 - APPLICATION OF RATES AND CHARGES 
Effective 1/20/16
	
Rates, Rules, Provisions, Surcharges and Assessorials named in this Tariff apply on cargo transported 
FROM Carrier's Terminal, Rail Carrier's TOFC/COFC Ramp or Shipper's Premises at Port or Point of 
Origin TO Carrier's Terminal,
Rail Carrier's TOFC/COFC Ramp, or Consignee's Premises at Port or Point of Destination, VIA Local 
Direct Ocean or Through Service, or Joint Motor/Ocean, Rail/Ocean or Motor/Rail/Ocean Service, 
subject to the terms, provisions
and limitations named in the SubRules to Rule 2 provided below.

Except as otherwise provided in specific Rules or specific commodity items, the figures stated in the 
rules, regulations, rates and charges named herein, which may be amended or superceded, are in 
dollars and cents in the lawful currency of the United States of America. The charges apply to the 
transportation of General Commodities except as provided under Prohibited or Restricted Articles.

2. All services provided in this tariff are to be conducted during Carrier’s normal business hours. 
Merchant requests to provide service outside of normal business hours of operation are subject to 
Carrier’s acceptance and additional fees.
 
3. Rates published herein apply as follows:
    A) Rates designated as Per Container shall apply to a standard sized cargo container which can be 
used for through movement among/between multiple transportation modes, and which conforms to 
applicable ISO standards concerning size, capacity and fittings. 

The charge shall apply per size of equipment utilized. The term container includes dry, ventilated, 
insulated, flatrack, refrigerated, vehicle rack, 
liquid tank, and open top container, and containers without chassis, but does not include crates, 
boxes or pallets.

    B) Rates designated as CFT/CWT shall apply per cubic foot (CFT) or 100 pounds (CWT), or any 
fraction thereof of cargo, whichever basis yields the greater revenue.
    C) Rates designated as W/M shall apply per 2000 pounds (W) or 40 cubic feet (M), or any fraction 
thereof of cargo, whichever basis yields the greater revenue.
    D) Where the word "Weight" or the letters “W” or "CWT" appears following an article or commodity, 
applies to the weight of the cargo without regard to measurement. 
    E) Where the word "Measurement" or the letters “M” or "CFT" appears following an article or 
commodity applies to the measurement of the cargo without regard to weight.
    F) Rates designated as MBF shall apply per thousand board feet or fraction thereof. A "board 
foot" is the three dimensional volume of lumber equal to 1 inch x 12 inches x 1 foot long, or the 
equivalent cross-sectional area, regardless of the actual dimensions/cut of the lumber.
    G) Rates designated as ST shall apply per short ton or 2000 pounds or any fraction thereof.
    H) Rates designated as FT shall apply on a Weight, Measure, or Weight/Measure basis based on the 
value of rated weight or measure per shipment unit converted 
to tariff tons A freight ton is the total number of tons (whether weight or measure), by which a 
shipment is rated. A shipment having 200 CFT and weighing 4000 lbs; would be considered as five FT's 
(5X40CFT) for rating purposes.
    I) Rates designated as a Unit i.e. Pallet, Bundle, Barrel etc shall be rated as a unit as 
specified in the Tariff Line Item
    J) Rates designated as Shipper Loaded Rates - Are rates published which are designated as Shipper 
Loaded when the container is tendered to the Carrier by the Shipper with cargo loaded by the Shipper 
or his agent, and the loaded container is made available to the Consignee or his agent at Carrier’s 
facility at destination.
    K) Rates designated as Carrier Loaded Rates - Are rates published which are designated as Carrier 
Loaded when the Shipper delivers cargo without a container to Carrier’s designated facility at 
Shipper’s expense. 
    L) Application of Assessorial Charges and Surcharges - Assessorial charges or surcharges which 
can be determined at time of booking are those which calculate using the electronic rate retrieval 
system.  Any assessorial charges or other surcharges which are not determinable at time of  booking 
(i.e. waiting time, overweight) will not calculate automatically, but will be added to the shipment 
charges at time of rating.
  
4. When calculating charges the following rules shall apply:
    a. On cargo rated on Board Measurement, one thousand (1000) Board Feet will be considered as one 
Freight ton. Lumber rates published herein are for Net Board Feet, which is 70% of the Gross Board 
Feet.
    b. On cargo rated per Linear Foot, 50 Linear Feet will be considered as one Freight ton.
    c. On cargo rated on the Unit basis subject to a measurement limitation, 40 Cubic Feet will be 
considered as one Freight ton calculated on the gross measure of the cargo.
    d. On cargo rated on the Unit basis subject to a weight limitation, 2,000 pounds will be 
considered as one Freight ton calculated on the gross weight of the cargo.
 
5. Unless otherwise specifically provided rates do not include lighter age at destination ports.
 
6. Any tollage, storage, C.O.D. service charges, advanced charges, expenses incurred in the clearing 
of shipments through Customs, expenses incurred by Carrier in repairing faulty packing, charges or 
penalties imposed or collected by Government authorities in the form of duties or taxes, charges for 
carriage of shipments returned to point of origin, and/or other charges assessed against the cargo at 
port of loading or unloading will be for the account of the Merchant.
 
7. All cargo to be transported shall be received, held carried, and delivered subject to the 
provisions of the shipper’s instructions, cargo receipt, and Bill of Lading of the Carrier.

8. Whenever this Tariff provides different rates on a commodity dependent upon type or kind and 
adequate description is not stated on the Bill of Lading, it will be assumed that it is of a type or 
kind subject to the highest of the rates provided on the commodity and freight will be assessed 
accordingly.
 
9. LCL packages containing articles of more than one description shall be rated on the basis of the 
rate provided for the highest rated articles contained therein.

10. Whenever in this tariff rates are provided for articles named herein, the same basis will also be 
applicable on parts of such articles, when so described on the Ocean Bill of Ladings, except where 
specific rates are provided for such parts.
 
11. Minimum quantity rates. When two or more rate items are stated for the same commodity over the 
same route and under similar conditions, and the application is dependent upon the quantity of the 
commodity shipped, the total freight charges assessed against the shipment may not exceed the total 
charges computed for a larger quantity, if the rate item specifying a required minimum quantity 
(either weight or measurement; per container or in containers) will be applicable to the contents of 
the container(s), and if the minimum set forth is met or exceeded. At the shipper's option, a 
quantity less than the minimum level may be freighted at the lower rate item if the weight or 
measurement declared for rating purposes is increased to the minimum level.
 
12. The following measurement will apply when Shipper or his Agent does not provide actual cargo 
cubic foot measurements loaded within a shipper loaded container:

                            850 Cubic Feet          20’ Container
                            1700 Cubic Feet        40’ Container
                            1950 Cubic Feet        40’ HC Container
                            1950 Cubic Feet        40’X Container
                            2150 Cubic Feet        45’X Container
                            1500 Cubic Feet        40’X Reefer Container
                            2300 Cubic Feet        48’X Container/Trailer

13. Wherever rates are provided for articles named herein, the same rate will also be applicable on 
parts of such articles where so described in the Ocean Bill of Lading, except where specific rates 
are provided for such parts.

14. Except as otherwise provided, rates and rules apply only on commodities which can be handled by 
mechanical fork-lift, including commodities on/in pallets, skids, and containers. 
 
15. Rating Cargo Using Weight or Measure Rates - All rates and charges rated on the weight or 
measurement shall be based on the actual weight or actual overall measurement of the total cargo or 
other freight unit, except as otherwise provided with the understanding that fractional dimensions 
shall be disposed of as published in determining the measurements of any piece, package, or other 
freight unit. 
 
        A. FRACTIONAL INCHES 
      1.   Fractional inches under 1/2" shall be dropped. 
2.    All fractions 1/2" or greater in one dimension shall be taken to the next full inch. 
3.    Fractions where two dimensions of exactly 1/2" occur: the smaller dimension shall be taken to 
the next full inch and the other dropped. 
4.    Fractions where both dimensions are equal: increase one fraction to the next full inch and drop 
the other. 
5.    Fractions where three dimensions of exactly 1/2" occur: the largest and smallest dimension 
shall be taken to the next full inch and the other dropped. 
6.    Fractions where all three dimensions are equal: increase two of the fractions to the next full 
inch and drop the other. 
 
        B. FRACTIONAL CUBIC FEET
            1. Each item on the Bill of Lading shall be considered separately.  
            2. Single piece/package or other freight unit greater than 1/2 cubic foot shall be 
rounded up to the next Cubic Foot. 
            3. Single piece/package or other unit less than 1/2 cubic foot shall be dropped. 
            4. In measuring barrels, cask kegs, drum and round tanks, the extreme outside diameter 
will be used to calculate the cubic feet. 
            5. In measuring an irregular package, the three greatest dimensions shall be used to 
determine the cube of the package. 






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