Item Number: 610.3

MINIMUM CHARGE ON C. O. D. SHIPMENTS

  1. On shipments qualifying for discounts in carrier's other tariffs, the maximum discount to be applied in determining the rate or charge on any C. O. D. shipment tendered "Freight Collect" shall be 45 percent (45%) of the class rate, base rate, or column commodity rates for which the discount is published to apply. Shipments for which a discount of greater than 45 percent (45%) is published to apply shall be subject to a minimum charge determined by paragraph (b) of this Item.
  2. The minimum charge for shipments requiring C. O. D. service (see Items 180 and 185 of this tariff and Item 430 of the governing classification), shall not be less than the charge determined in accordance with the applicable class or commodity rate for the commodity or commodities shipped at the governing minimum weight less 45 percent (45%). See example below:

    Example: A 2000 pound shipment moving collect from Pittsburgh, PA, to Cleveland, OH, of a commodity taking an LTL Class 50 classification rating and subject to a discount of 50 percent (50%) in carrier's other tariffs is tendered on a shipping order (bill of lading) marked C. O. D. The minimum charge for such shipment shall be determined as follows:
    Base (Class) Rate and Charges ($10.58 x 20 cwt.)= $211.60
    Discount specified in carrier's tariff (50%)= $105.80
    Minimum charge on C. O. D. shipment tendered freight collect ($211.60 less 45%)= $116.38
    The applicable charge shall be the minimum charge in lieu of any other charge or $116.38.

|N1| -Not applicable on shipments which are not subject to discounts or shipments for which the discount published is less than 45 percent (45%).



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