RMA Prevails in Halting Rate Increases on Shipment of Rubber Products

10 November 1999
RMA Prevails in Halting Rate Increases on Shipment of Rubber Products
    WASHINGTON, Nov. 9 -- The Rubber Manufacturers Association
announced a major victory today in a case proposing to hike shipping rates for
rubber hose products. The issue was addressed at a November 9, 1999 hearing of
the National Classification Committee (NCC). NCC is a trucking-industry
organization operating with antitrust immunity.
    The November 9 vote of the NCC involved removing "Item 100120" from the
National Motor Freight Classification (NMFC) system. Item 100120 represents
hose (plastic or rubber) reinforced with fabric or wire in packages, having a
density in pounds per cubic foot of 6 up to 50 pounds.
    "We're very pleased with the outcome of this case," said Donald B. Shea,
RMA president & CEO. "Many of our General Product Group members manufacture
and ship products classified under Item 100120 -- including industrial,
automotive and hydraulic hose -- which would have been subject to
extraordinary freight-charge increases and burdensome administrative
procedures had we not taken aggressive action," he added.
    The NMFC is an entity that provides a mechanism that bases its pricing on
an evaluation of density, stowability, ease of handling and liability of
commodities moving in interstate and intrastate transport.
    The NMFC provides both carriers and shippers with a standard by which to
begin pricing negotiations and simplifies the comparative evaluation of the
many thousands of products moving in today's marketplace.
    RMA member-company representatives from The Goodyear Tire & Rubber
Company, The Gates Rubber Company and Mark IV Industries -- Dayco Industrial
Division presented comments at today's hearing. Titan Industries and HBD
Industries, Inc. also supplied written comments on the issue. Other companies
including Parker-Hannifin and Aeroquip, along with the National Association of
Hose and Accessories Distributors also offered support.
    "This victory has saved our company millions in potential shipping-cost
increases," said Paul Schauer, representing The Gates Rubber Company. "RMA
should be complimented on its 'early-warning' alert to their members on this
obscure, but potentially costly regulatory matter."
    "Our job was to protect our member's business interests," said Ann Wilson,
RMA's vice president of government affairs. "Through the combined effort of
our members, RMA staff and other industry groups we presented compelling
rationale for defeating this NMFC proposal."
    Founded in 1915, the Rubber Manufacturers Association is the national
trade association of the rubber industry. Its members include over 100 member
companies and affiliated organizations that produce thousands of rubber or
rubber-related products.