ABF Freight System, Inc. - Factors that affect application of pricing

What factors affect application of my pricing?

1.	Standard Order of Precedence - When your company has more than one price that could be applicable for a given shipment, the list below is followed until all applicable provisions necessary to rate the shipment are found.

	(a)	Specifically quoted prices for which a quote ID has been issued by ABF.
	(b)	Specific Account Contract or Agreement Pricing (Contract Carriage) takes precedence over all other pricing, except as shown in (a).
	(c)	Specific Account Pricing (Common Carriage) takes precedence over all other pricing, except as shown in (a) or (b).

	When Specific Account Pricing exists for more than one party (the shipper, the consignee or a third party legally responsible for payment) on the same shipment, pricing applicable for the payor of the freight charges is used. For example, when the shipment is collect and you are the consignee, your inbound collect pricing supersedes a shipper's outbound collect pricing.

	Usually, only one Specific Account Pricing deal may be applied on a given shipment. Specific Account Pricing removes the application of pricing established for general application, such as commodity rates or discounts applicable for all accounts.

2.	Less Than Truckload (LTL) and Truckload - Most shipments will be rated under ABF base rate schedules (ABF 503, 504, ABF 514, or ABF 524), effective January 2010 or later. Since 1995, these base rate schedules contain only LTL rates; therefore, a shipment weighing 25,000 pounds is eligible for any otherwise applicable discount on the 20,000 pound rates. In these tariffs, the rates within the 20,000 pound break are developed as "Less Than Truckload" and are therefore discountable. ABF's Class Rate Tariffs subject to this treatment are shown in Item 130 of the ABF 111 Rules and Special Services Tariff.

	For pricing provisions subject to class rate tariffs other than those shown in Item 130, ABF 111 series, the 20,000 pound weight break is considered as "Truckload," and discount provisions do not apply.

3.	Absolute Minimum Charge - After application of pricing reductions and before charges for special services, if the net revenue fall below these levels, an adjustment to the net revenue will be made accordingly. Unless a different amount is provided in the applicable Specific Account Pricing, the following absolute minimum charges apply: Lanes between the Continental U.S. and Canada - $130.00 for shipments weighing less than 150 pounds and $145.00 for shipments weighing 150 pounds or more Lanes other than between the Continental U.S. and Canada - $111.00 for shipments weighing less than 150 pounds and $128.00 for shipments weighing 150 pounds or more

4.	Most of our rates are expressed in terms of weight. However, for some large, bulky shipments, the important factor is cube. This is especially important since most of our trailers reach their volume capacity before the weight limit. A Density Minimum Charge ("DMC") will apply on a shipment only if it is larger than 750 cubic feet and if its density is less than 6 pounds per cubic foot. Shipments which qualify will be subject to a minimum charge using a pro forma weight calculated at 6 pounds per cubic foot (for example, a shipment with an actual weight of 3,000 pounds with a density of 3 pounds per cubic foot would be rated based on a proforma weight of 6,000 pounds). If the NMFC classification or multiple rates (of any type) apply, the shipment will be rated at class 77.5. If a shipment is subject to a single-factor rate (other than NMFC Class), it will apply. In either case, otherwise applicable pricing provisions will apply, including discounts, percentage expressions, and allowances.

	The Density Minimum Charge is based upon the actual cubic feet of the shipment and not its effective trailer occupancy. However, a minimum vertical dimension of eight feet is used to calculate cube for package units that cannot be top-loaded with like freight. And if the extreme width dimension of a shipment is six or more feet, a minimum width of eight feet will be used. A Density Minimum Charge does not apply to shipments moving on equipment rates (e.g. per pup or per pup mile).

5.	Capacity Load Minimum Charge - Most shipments will be rated under ABF base rate schedules (ABF 503, 504, ABF 514, or ABF 524), effective Januay 2010r later. When a shipment tendered to ABF occupies the full visible capacity (See "Glossary of Terms") of a doubles (pup) trailer, the minimum, for the doubles trailer is 20,000 pounds at the applicable class 50, 20,000 pound (20M) rate, less any applicable discount. For shipments rated under other base rates, capacity load minimum charge may also be applicable. See ABF 111, Item 390 for further details.

6.	Application of your pricing provisions usually varies by mode (single line or joint line), direction of movement (outbound from the account or inbound to the account), and by billing terms (prepaid or collect or paid as third party). For instance, normal pricing application provides a particular LTL discount on NMFC class-rated shipments moving outbound prepaid from a specific city. Exact application is specified in your price schedule and must be reviewed individually.

7.	Usually, territorial (geographical) application will be from/to account named location(s), on the one hand, and limited to the extent of the scope of the schedule in which the pricing is contained, on the other hand. Usually, this means application is from (or to) the specific city to (or from) all points in the continental United States.

When will my pricing NOT apply?

ABF is proud to have the most sophisticated rate application systems in the motor carrier industry. However, we can apply Specific Account Pricing only when we can correctly identify the parties involved. It is important that the original billing include complete names and addresses for both the shipper and the consignee. (Also see "Bill of Lading" for additional requirements.) Please alert your ABF account manager to trade names or spelling variations under which you ship or receive freight. This will help us to correctly apply your Specific Account Pricing.

ABF establishes Specific Account Pricing with the understanding that you will use the competitive rates to transport your freight via ABF. As provided in ABF 111 Series, Item 166, ABF reserves the right to discontinue your Specific Account Pricing, without further notice, if it is not used during any continuous 120-day period.

Some Exceptions - Specific Account Pricing provisions DO NOT APPLY in the following circumstances:

On shipments which do not meet the conditions required by your pricing schedule (e.g., LTL or TL, single-line or joint-line, payment terms, origin city, destination city, commodity, or minimum weight).
On shipments which are tendered before the pricing provisions in your pricing schedule become effective.
On shipments subject to base rate scales that have already been discounted.
On special service charges, charges advanced by ABF, or arbitrary rates and charges.
On shipments that have departed the origin terminal moving C.O.D. or Order Notify.
On shipments which are subject to Section 13712 quotations (often referred to as government tenders).