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1977 - July DOT Ord. & Dec. [1] (July, 1977)

handle is hein.usfed/dotod0608 and id is 1 raw text is: Order 77-7-1 UNITED STATES OF AMERICA CIVIL AERONAUTICS BOARD WASHINGTON, D. C. Adopted by the Civil Aeronautics Board at its office in Washington, D. C. on the Ist day of July, 1977 Increased freight rates proposed by UNITED PARCEL SERVICE CO. Docket 30993 ORDER DISMISSING COMPLAINT By tariff revisions 1/ issued June 3 and marked to become effective July 3, 1977, United Parcel Service Co. (UPS), an air freight forwarder, proposes to increase air freight rates systemwide by an average of 9.2 percent. A complaint requesting suspension and investigation of the proposal has been submitted by the Hawaii Air Cargo Shippers Association, Inc. (HACSA), a shippers' cooperative association. The complaint contends, inter alia, that UPS's rates on small shipments are below costs; 2/ that these rates threaten HACSA's existence and are diverting freight from existing consolidators, forcing them to give up aircraft space; and that the end result will be reduced competition and increased rates in Hawaiian markets. HACSA further contends that UPS's zone structure violates the precepts of all previous Board rate-making proceedings; that this structure results in identical rates between Hawaii and all Mainland points, regardless of distance; and that the forwarder's over- sized piece rule fails to conform to the standard industry-dimensional weight rule. 3/ Finally, HACSA alleges that Hawaii is uniquely 1/ Revisions to United Parcel Service Co. Tariff C.A.B. No. 5. 2/ For example, HACSA claims that UPS's charge for a one-pound shipment from New York to Honolulu is $1.52 plus a service charge of $2.00 per week, regardless of the number of shipments, while that of the airlines is $21.50 for air freight plus $12.95 for pickup and delivery, for a total 6f $34.45. 3/ The dimensional weight, or cube rule of most airlines and forwarders provides that the chargeable weight will be the greater of the actual weight or the dimensional weight, currently one pound for every 194 cu. in. for most carriers. UPS's over-sized piece rule provides that any package with combined length and girth exceeding 84 inches shall have a minimum charge equal to the charge for 25 pounds.

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