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Drum It Up! Steel Drum Industry News, Trends, and Issues

Increased LTL Rates for Empty Steel Drums Is Now In Effect

October 15th, 2008 by Dean Ricker

Filed under: Industry News

As of August 23rd, 2008, the rates charged for transporting empty (new) steel drums has increased due to reclassification by the Commodity Classification Standards Board (CCSB). Drums that were formerly shipped under class 92.5 may now be shipped under class 150 or higher. The reclassification study has been a work in progress for the last 5 years. Common carriers were complaining that their profits were being reduced by the introduction of lighter packagings. Indeed, steel drum metal thickness has seen reduced averages, as has plastic drums and IBC’s. Therefore, CCSB sought to re-level the classification rates based on these new packaging specifications. Currently, we believe that not all carriers have acted on this matter; however, several regional carriers have begun negotiations with their customers. Furthermore, existing FAK (Freight of All Kinds) rates may also be under negotiation. Apparently, the trucking industry is very competitive at this time and we advise our customers and shippers to actively negotiate these new rates as soon as possible.

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