[Federal Register Volume 59, Number 10 (Friday, January 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1042]


[[Page Unknown]]

[Federal Register: January 14, 1994]


-----------------------------------------------------------------------


INTERSTATE COMMERCE COMMISSION
49 CFR Part 1056

[Ex Parte No. MC-19 (Sub-No. 42)]

 

Practices of Motor Common Carriers of Household Goods; 
Performance Reports

AGENCY: Interstate Commerce Commission.

ACTION: Final rules.

-----------------------------------------------------------------------

SUMMARY: The Commission is adopting modifications to the Annual 
Performance Report, Form OCP-101 (OCP-101), which sets forth 
requirements that relate to carrier performance information given to 
prospective individual shippers of household goods. This proceeding was 
instituted to address concerns expressed by consumer groups and the 
moving industry regarding the quality and reliability of the 
information provided by household goods carriers in the OCP-101. The 
modified OCP-101 requires objective disclosure by carriers of their 
performance to prospective shippers and verification of accuracy of the 
data contained in the reports.

EFFECTIVE DATE: The revised rules are effective February 13, 1994.

FOR FURTHER INFORMATION CONTACT: Charles E. Wagner (202) 927-5530 or 
John Fristoe, (202) 927-5520. (TDD for hearing impaired: (202) 927-
5721.)

SUPPLEMENTARY INFORMATION: Currently, the Commission's rules require 
household goods common carriers that transport 100 or more shipments to 
individual shippers, as defined in the Commission's rules, to provide 
information annually to the Commission about their previous year's 
performance by filing an Annual Performance Report (Form OCP-101). 
Under the new rules adopted in this decision, all household goods 
common carriers will be required to file the OCP-101 annually. However, 
only carriers that deliver 100 or more individual C.O.D. shipments will 
be required to complete the major portion of the form (Part B) and 
provide copies of it to prospective shippers. Part B of the OCP-101 
shows a carrier's performance in the areas of estimating, on-time 
performance, and claims handling in a calendar year for C.O.D. shippers 
only. The OCP-101 must be filed with the Commission's Office of 
Compliance and Consumer Assistance by March 31 of the following 
calendar year.
    A notice of proposed rulemaking was published on February 3, 1993, 
at 58 FR 6912. Additional information is contained in the Commission's 
decision. To obtain a copy of the full decision, write to, call, or 
pick up in person from Dynamic Concepts, Inc., room 2229, Interstate 
Commerce Commission Building, Washington, DC 20423. Telephone: (202) 
289-4357/4359. [Assistance for the hearing impaired is available 
through TDD services (202) 927-5721.]

Energy and Environmental Consideration

    We conclude that modification of the regulations governing Form 
OCP-101 will not significantly affect either the quality of the human 
environment or the conservation of energy resources.

Regulatory Flexibility Analysis

    Pursuant to 5 U.S.C. 605(b), we conclude that our action in this 
proceeding will not have a significant economic impact on a substantial 
number of small entities. We are modifying the OCP-101 requirements 
that relate to a carrier's performance information given to prospective 
individual shippers of household goods by motor common carriers of 
household goods transporting 100 or more C.O.D. individual-type 
shipments. The modified form will require verification of the data in 
the report by a company official. The regulations will have some impact 
on the administrative costs of preparing and duplicating the OCP-101 
for smaller carriers (i.e., Class II and III carriers) of household 
goods. The information required for completing that form is the type of 
information already kept by such entities and the time required to 
compile the data for that form should be minimal and vary 
proportionately with the number of shipments transported by the 
carrier. Although transportation consumers should benefit from the 
availability of this information, the cost to small carriers should be 
relatively minimal. Accordingly, it is unlikely that the economic 
impact on these small entities will be significant within the meaning 
of the Regulatory Flexibility Act.

List of Subjects in 49 CFR Part 1056

    Advertising, Consumer protection, Freight, Insurance, Motor 
carriers, Moving of household goods, Reporting and recordkeeping 
requirements.

    Decided: January 4, 1994.

    By the Commission, Chairman McDonald, Vice Chairman Simmons, 
Commissioners Phillips and Philbin.
Sidney L. Strickland, Jr.,
Secretary.
    For the reasons set forth in the preamble, title 49, chapter X, 
part 1056 of the Code of Federal Regulations is amended as follows:

PART 1056--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE OR 
FOREIGN COMMERCE

    1. The authority citation for part 1056 continues to read as 
follows:

    Authority: 49 U.S.C. 10321, 11109, 11110 and 5 U.S.C. 553.

    2. In Sec. 1056.2, paragraph (a)(3) is revised to read as follows:


Sec. 1056.2  Information for shippers.

    (a) * * *
    (3) A copy of Form OCP-101, Annual Performance Report, most 
recently filed with the Commission, as prescribed in Sec. Sec. 1056.18, 
if the carrier is required to complete part B of that form.
* * * * *
    3. Section 1056.18 is revised to read as follows:


Sec. 1056.18  Preparation and filing of annual performance report.

    (a) Filing requirement. Each motor common carrier for household 
goods as defined in Sec. 1056.1(b) that delivers interstate shipments 
to individual C.O.D. shippers, during any calendar year shall, on or 
before March 31 of the following year, file with the Office of 
Compliance and Consumer Assistance, Interstate Commerce Commission, 
Washington, DC 20423-0001, a report of the service performed during the 
report year. The report shall be submitted on Form OCP-101, and its 
accuracy must be verified by an official of the carrier. All carriers 
must complete part A of Form OCP-101, and those carriers transporting 
100 or more shipments also must complete part B.
    (b) Prescribed Annual Performance Report Form OCP-101.

Interstate Commerce Commission

Office of Compliance and Consumer Assistance

Annual Performance Report for Year Ended December 31, 19--

Carrier's Name---------------------------------------------------------
Carrier's Address------------------------------------------------------
ICC Number-------------------------------------------------------------

Part A

    During the year, the total number of household goods shipments 
(1st proviso) delivered for each type of shipper was:


1. C.O.D. shipments delivered under your common carrier                 
 authority (excluding all Government, Freight Forwarder,                
 and Interline shipments)..................................   __________
2. All other 1st proviso shipments (including all                       
 Government, Freight Forwarder, and Interline shipments)...   __________
3. Total of Lines 1 and 2 (NOTE: Total must agree with                  
 total 1st proviso shipments reported in your ICC Annual                
 Report, Schedule 600, Line 7, Column d, if you are                     
 required to file that report).............................   __________
                                                                        

Part B

    Complete part B only if the C.O.D. delivered shipments reported 
in part A, Line 1, equals or exceeds 100 shipments. The questions 
and answers below deal only with the shipments reported in part A, 
Line 1.


4. Number of C.O.D. shipments where the order for service               
 was based upon a written binding estimate (included are so-            
 called hybrid estimates such as Guaranteed Price and Price             
 Protection)...............................................   __________
5. Number of C.O.D. shipments where the charges were based              
 on a written non-binding estimate.........................   __________
6. Number of C.O.D. shipments where the charges were based              
 on other than a written binding or non-binding estimate...   __________
7. Total of Lines 4, 5, and 6 (NOTE: Total should equal the             
 shipment count reported in part A, Line 1)................   __________
8. Percentage of shipments delivered where the final                    
 charges exceeded the initial written binding estimate.....   __________
9. Percentage of shipments delivered where the final                    
 charges exceeded the initial written non-binding estimate              
 by 10% or more............................................   __________
10. Percentage of shipments that were picked up after the               
 last date for pickup listed on the order for service or                
 bill of lading............................................   __________
11. Percentage of shipments that were delivered after the               
 last date of delivery specified on the order for service               
 or bill of lading.........................................   __________
12. Percentage of shipments delivered where there was a                 
 claim filed (in excess of $200) for property damage or                 
 loss......................................................   __________
13. Percentage of shipments delivered where there was a                 
 claim filed (in excess of $200) for damages resulting from             
 late pickup or delivery...................................   __________
14. Average number of days required to settle a claim (in               
 excess of $200)...........................................   __________
15. Percentage of claims (in excess of $200) that were                  
 resolved through the use of an arbitration program........   __________
16. Percentage of claims (in excess of $200) that were                  
 resolved after the carrier received a legal notice of a                
 lawsuit filed by the shipper..............................   __________
                                                                        

Carrier's Oath (Must be Completed by a Carrier Official)

    I, (name and title of company official), verify under penalty of 
perjury, under the laws of the United States of America, that all 
information supplied on this form or relative to the data contained 
in the form is, to the best of my knowledge and belief, true, 
correct and complete, based on all the information required to be 
included therein, of which I have any knowledge, and these 
representations are made in good faith. Further, I certify that I am 
qualified and authorized to certify the accuracy of the data. I know 
that willful misstatements or omission of material facts constitutes 
Federal crime violations punishable under 18 U.S.C. Sec. 1001 by 
imprisonment up to 5 years and fines up to $10,000 for each offense.

----------------------------------------------------------------------
Signature

----------------------------------------------------------------------
Title

----------------------------------------------------------------------
Date

    (c) Instructions for Preparation of Annual Performance Report, Form 
OCP-101.

Instructions for Preparation

General Instructions

    1. Data for completion of Form OCP-101 may be obtained by random 
sampling providing that in every instance, the universe sampled is 
all shipments delivered under your common carrier authority 
(excluding Government, Freight forwarder, and Interline traffic) 
during the report year or all claims arising out of the 
transportation of those shipments that were received or settled, as 
appropriate, during the report year.
    2. When random sampling is used, the minimum sample size in 
every instance shall be 400 shipments or claims, as appropriate, in 
replicates of 100 shipments or claims each. All samples must conform 
to standard deviation with a 95% confidence level.
    3. Carriers submitting Form OCP-101 shall retain and make 
available for review by an authorized Commission employee all 
working papers, notes, and other files relating to the preparation 
of each report for a period of not less than 24 months following the 
date of filing such a report.
    4. The data in Form OCP-101 must be verified by a sworn 
statement signed by an official of the company.

Specific Instructions

Part A

Line 1: Only report those 1st proviso C.O.D. shipments moved under 
your common carrier authority after excluding all Government, 
Freight forwarder and Interline traffic.
Line 2: Report all other 1st proviso shipments, including those 
moving under contract carriage provisions and all Government, 
Freight forwarder and Interline traffic.
Line 3: Sum lines 1 and 2. The total should agree with total 1st 
proviso shipments reported in your ICC Annual Report, Schedule 600, 
Line 7, Column d, if you are required to file that report.

Part B

    It is not necessary to complete Part B if the total of C.O.D. 
shipments reported on Part A, Line 1, did not equal or exceed 100 
shipments. If completion of Part B is not required, sign the 
Certification and return the form to the Interstate Commerce 
Commission.

Line 4: Report only those C.O.D. shipments where the order for 
service was signed after the receipt of a written binding estimate. 
Include in this computation all so-called hybrid estimates (e.g., 
Guaranteed Price and Price Protection options).
Line 5: Report the total number of C.O.D. shipments where the order 
for service was signed after the receipt of a written non-binding 
estimate. In the case of non-binding estimates, the actual charges 
are determined after the shipment has been picked up and weighed.
Line 6: Report only those C.O.D. shipments where there was no 
requirement for the preparation of a binding or non-binding written 
estimate by the carrier. As with non-binding estimates, the charges 
here are determined after the shipment has been picked up and 
weighed.
Line 7: Sum of Lines 4, 5, and 6. The number of shipments reported 
on Line 7 should be the same as those reported in Part A, Line 1.

Computation of Percentages or Averages

    You must determine the number of shipments falling into each of 
the categories described in Lines 8 and 9, respectively, and divide 
these shipments by the number of shipments reported on Lines 4 and 
5, respectively.
    You must determine the number of shipments falling into each of 
the categories described in Lines 10 through 16 and divide these 
shipments by the number of shipments reported on Line 7. (Exception: 
Line 13 is an average, not a percentage.)

Line 8: Compute the percentage of those shipments delivered where 
the final charges exceeded the written estimate initially provided 
to the shipper because of changes agreed to by the carrier and 
shipper in commodities transported and services provided.
Line 9: Compute the percentage of those shipments delivered under a 
non-binding written estimate where the final charges exceeded the 
written estimate provided to the shipper by 10% or more. The 10% 
figure is used because every C.O.D. shipper is required to have 
available 110% of the estimate at the time of delivery.
Line 10: Compute the percentage of those shipments where the actual 
pickup date occurred after the last date for pickup promised on the 
order for service or bill of lading.
Line 11: Compute the percentage of those shipments where the actual 
delivery date occurred after the last date for delivery promised on 
the order for service or bill of lading.
Line 12: Compute the percentage of those shipments where there was a 
claim filed within 60 days of the actual date of delivery to the 
residence. Only count those claims where the dollar value of the 
amount claimed by the shipper exceeded $200 and resulted from 
property damaged or lost. This excludes claims for late pickups and 
deliveries which are reported on line 13.
Line 13: Compute the percentage of those shipments where there was a 
claim filed within 60 days of the actual date of delivery to the 
residence. Only count those claims where the dollar value of the 
amount claimed by the shipper exceeded $200 and resulted from a late 
pickup or delivery. Late pickups and deliveries are defined in 
Instructions 10 and 11.
Line 14: Enter the average number of days required to pay, decline, 
or make a firm compromise offer of settlement of all claims 
exceeding $200 during the report year. For the purpose of this 
report, a claim shall be considered to be a ``claim filed'' if it 
meets the criteria set forth in Lines 11 and 12, and shall be 
considered as paid, declined, or compromised on the date on which a 
written offer is mailed or delivered in person to a claimant.
Line 15: Compute the percentage of the claims exceeding $200 arising 
out of the transportation of shipments which were resolved during 
the report year through the use of a dispute resolution or 
arbitration procedure maintained or participated in by the carrier.
Line 16: Compute the percentage of the claims exceeding $200 arising 
out of the transportation of shipments which were resolved during 
the report year as a result of legal notice of suit to recover being 
filed by the shipper.

[FR Doc. 94-1042 Filed 1-3-94; 8:45 am]
BILLING CODE 7035-01-P