As previously indicated, the inferences drawn concerning these displays are subject to certain limitations. Traffic was not related to the overall rate structure in charts IV-1 and IV-2. In order to derive such relationships, Sea-Land's TL rates on principal moving commodities 19 have been displayed on chart IV-3 to show the distribution of actual traffic movements in relation to its overall TL rate structure in 1968. This chart shows that Sea-Land's 1968 southbound TL rates on major moving commodities are distributed over the full range of the rate structure; about 56 percent are grouped in the 125 to 200 cents per 100 pounds range. This distribution agrees with other indications that Sea-Land carries a considerable amount of high-rated cargo. However, 44 percent in number of Sea-Land's principal moving commodities are grouped in the lower 90 to 125 cents per 100 pounds range (app. D, table 1). This distribution, which displays the approximate rate situation confronting the shipper of general merchandise in the trade, shows that rates on food and consumer items are lower than those applicable on intermediate goods.20 It is important to note that the majority of SeaLand's rates on principal moving commodities did not increase between 1960 and 1968 despite the rising costs in stevedoring, ship operations, and construction. The history of Sea-Land's rate changes on principal moving commodities 21 is illustrated in chart IV-4.22 This chart shows 75 rates applicable on dry cargo moving in large volumes from Elizabeth to San Juan for January 1, 19 The principal moving commodities selected, including foods, consumer dry goods and intermediate goods, generated about 50 percent of the freight revenues earned by that carrier in 1966-67. 20 The food items include: confectionary products, pretzels, and biscuits; the consumer dry goods include: toilet preparations, leaf tobacco, cigarettes, stationery, footwear, toys, electrical appliances, dry goods, tissue paper, furni ture, and refrigerators; and intermediate goods include: cellophane bags, electrical machinery, nonelectrical machinery, paper, refrigerator motors and units, china, plumbing fixtures, bottle caps, glassware, paper straws, yarn, cotton, jute, or wool synthetic yarn, paperboard boxes, paperboard cartons, boxboard, and paper cups. 21 Appendix C, table 2, contains a list of Sea-Land's principal moving com. modities from New York to Puerto Rico. These commodities generated approximately 50 percent of the freight revenues from Elizabeth to San Juan in 1966 and 1967. The most important of these commodities, in order of revenue importance, include: fabricated textile products, canned fruits and vegetables, machinery, feedstuffs for animals, paperboard boxes, household goods, soaps, plumbing fixtures, leaf tobacco, paints, plastic materials, footwear, glass containers, refrigerators, fabricated plastic products, rubber tire tubes, malt, tin mill products, meats, lubricants, toys, beans, and yarn. 22 All of the 75 TL-type rates shown in chart IV-4 apply on dry cargoes moving in 35-foot containers and are listed in descending order of revenue importance based on the carrier's 1966 freight revenue information. (Sea-Land's actual rates and commodity descriptions are shown in app. E, table 1.) Sea-Land's commodities generally move under either a weight or measurement rate, whichever produces the greater revenue. On each commodity examined, the rate selected (weight or measurement) is that under which the article generally moves according to information provided by the carrier. Of the 75 rates shown in the chart, 39 are weight rates, 35 are measurement rates, and one, barrels, is in terms of "cents each". 1960 23 and June 1, 1968. Of the 75 items shown, the rates on 54 items or 72 percent remained steady or were reduced between September 1, 1960 and June 1, 1968; 32 rates remaining unchanged, and 22 rates declining, while rates on 21 items or 28 percent were increased." Appendix E, table 1, contains the 21 commodity rates which increased including the percentage of increase on each item and the 22 rate decreases including percentage of decline on these items. The analysis also shows that, unlike 1960 when virtually all of the 75 commodities moved under breakbulk or AQ rates, in 1968 these same commodities had 32 TL rates, generally applicable on 1,600 cubic feet or 40,000-pound loads, 15 maximum charge per container rates, and only 28 AQ rates.25 Almost all of SeaLand's AQ rates on principal moving commodities remained unchanged over the 8-year period, which means that in general the small shipments were still being transported in 1968 at the same price assessed 8 years ago. On the other hand, it is noted that if all of the 75 items shown in chart IV-4 moved in trailerload quantities, 28 items or 37 percent would have moved under an AQ rather than a TL rate because Sea-Land's tariff offers only AQ rates on these 28 items. Although some items may not move in TL quantities, it is clear that the principle of TL shipments, and corresponding TL rates, has not been extended to a portion of this carrier's principal moving commodities. It would seem fitting that the benefits incident to TL shipments should be given to more shippers. An examination of Sea-Land's LTL rates revealed that the bulk of these rates have remained steady or declined. Its LTL rates on 71 principal moving dry cargo commodities from Elizabeth to San Juan, effective during the 1960-1968 period, are shown in 23 Sea-Land's 1960 rates, for the most part, were about the same as the corresponding U.S. Atlantic and Gulf-Puerto Rico Conference rates. 24 In addition, app. E, table 1, contains five leading reefer and five leading breakbulk shipments and indicates that rates on nine of these articles remained unchanged or decreased between 1960-68. 25 Except for the 1968 requirement that the consignee unload the trailer himself and several "shipper load" requirements (app. E, table 1), all 1968 rates involve services which are similar to those offered in 1960. An adjustment of the rates for shipper and/or consignee load/off-load requirements would slightly decrease the number of rates which showed a decline or no change over the 8-year period. Analysis of traffic movements, however, indicates that in practice, virtually all TL-type shipments generally have been loaded by the shipper and unloaded by the consignee and, for this reason, such an adjustment would appear to be of little importance. (The 1960 freight on canned goods, groceries, and other articles in mixed trailerload shipments from New York and Jacksonvile was on an "exclusive use" basis. Exclusive use rates apply when the shipper is guaranteed that only his cargo will be loaded aboard a particular trailer and that any unused space will not be stuffed with miscellaneous LTL cargo.) Percentile CHART IV-1 FREIGHT RATE STRUCTURE: TOTAL RATES SEA-LAND SERVICE, INC. FROM ELIZABETH, NEW JERSEY TO SAN JUAN, PUERTO RICO September 1, 1960; June 1, 1968 CHART IV-2 FREIGHT RATE STRUCTURE: TL, LTL, AND AQ FROM ELIZABETH, NEW JERSEY TO SAN JUAN, PUERTO RICO-June 1, 1968 |