On November 5, 2021, USTRANSCOM released the 2022 DP3 Business Rules, including the 400NG
, Tender of Service
, Claims & Liability Business Rules
, and IT-22
. This memo serves as the first in a series of three, in which we will discuss all relevant changes in the 2022 Business Rules. Please note that our discussion in these memos is not exhaustive, and we encourage you to review the business rules yourself in addition to our memos.
Apart from minor grammatical changes, there were two changes in the 400NG regarding reweighs (page 19) and uncrating (page 47).
Automatic reweigh thresholds were adjusted so that there are now two conditions that are sufficient for an auto-reweigh: for pay grades E-1 thru E-5, all shipments weighing 4000 lbs or more are required to be reweighed. For pay grades E-6 thru O-10, all shipments weighing 7000 lbs or more are required to be reweighed. Please note that whether or not the customer has dependents is now a non-factor in determining the auto-reweigh threshold.
Along with the new auto-reweigh criteria, there are new tolerances for when the reweigh charge is billable. If the reweigh net weight is less than the original net weight, it must be within the following tolerances for the charge to be billable:
- For shipments with original weight of 5000 lbs or less; the original net weight minus the reweigh net weight is less than 150 lbs (up from 100 in 2021).
- For shipments with original weight of over 5000 lbs; the original net weight minus the reweigh net weight is less than 5% of the reweigh net weight (up from 2% in 2021).
Finally, there was a regulation added that if a reweigh was not performed and the original weight exceeded the customer’s entitlement, the TSP can only bill up to 110% of the customer’s entitlement. This particular regulation makes it extremely important that reweighs are performed when requested, as it can create a significant loss in revenue if there is a failed reweigh. To assist drivers in ensuring that reweighs are completed when requested, NFC will implement new programming to send text messages to drivers with reminders to reweigh. Look out for more details on this program in the spring.
Uncrating is now included in the packing service charge, meaning it is required for the TSP and, therefore, their agents to perform uncrating at destination. Compensation for uncrating is part of the unpacking line item billable per our compensation schedule. We recommend that your crews are prepared to uncrate on every move which has crated goods (regardless of whether a third party crated at origin), and the only time uncrating is not required is if the customer authorizes the TSP to not uncrate. If a shipper waives one or both services at destination, the DD619 should specifically list which services were waived.
The 2022 Tender of Service has numerous changes from previous years. This memo will highlight them in the order they appear in the TOS.
SIT at Origin
First, on page 11, a change was made for shipments going in SIT at Origin. With the new change, it is now required that the customer is notified of placement into SIT. When the shipment is released from SIT at Origin, it is also required that the customer is notified of the new RDD.
Missed RDD Inconvenience Claims
Also on page 16, there was a section added for situations where the customer is not available for the FADD (First Available Delivery Date) on shipments with a missed RDD. If the customer was available for delivery on the missed RDD, and subsequently unavailable on the FADD due to good cause, then the TSP may be responsible for an inconvenience claim for the time between the RDD and the FADD. The Inconvenience Claim is authorized for payment only if the customer is unavailable due to good cause, which USTRANSCOM defines as “a short notice mission/exercise, hospitalization, or convalescent leave of the customer.” This good cause must also be documented on the DP3 Shipment Inconvenience Claim Form
, which was modified to include a section for statements of non-availability.
On page 20, there was a clause added to the pre-move survey section, which says that weight estimates must be accurate within 10% of actual shipment net weight. Given this new statement, we expect to receive Letters of Warning for shipments with a larger difference between estimated weight and actual weight. Please ensure that when servicing a shipment as OA, you perform the pre-move survey and get the most accurate weight estimate possible.
There were several adjustments made to Spread Dates, which were introduced last year. Spread Dates created some confusion at the time of offer acceptance, and there were many date changes for peak shipments due in part to this confusion. The changes listed on page 22, are that customers will enter their “Pickup No Later Than Date” and “Requested Pickup Date” in DPS, which TSP’s will then receive with the shipment offer. The Spread Dates are now between the customer’s Pickup NLT Date, and one week prior to that date.
On pages 24-25, there were several clauses added regarding inventories. Most notably, USTRANSCOM announced that electronic inventories are mandatory effective 15 May 2023. For the rules effective 15 May 2022, though, electronic inventories are still highly encouraged. In instances where technical difficulties prohibit the agent from providing the customer with a copy of the inventory prior to departure, it is required that the customer is provided with a signed electronic copy NLT the next business day.
Last, on page 28, there were further requirements added for Code 2 container seals. If the seals are broken in-transit, the containers must be resealed, and the circumstances and new seal numbers must be notated in DPS. Additionally, the TSP must verify with the customer at delivery that all container seals are intact. If it is not discovered that seals are broken until delivery, remarks must be entered in DPS to document the situation.
stay up to date on the changes for 2022.
Memo 1 - 400NG & TOS: January 12, 2022
Memo 2 - Claims & Liability Business Rules: January 26, 2022
Memo 3 - IT-22: February 9, 2022