Household Goods Carriers' Bureau v. United States

288 F. Supp. 641, 1968 U.S. Dist. LEXIS 10087, 1968 WL 168513
CourtDistrict Court, N.D. California
DecidedJune 10, 1968
DocketCiv. No. 47646
StatusPublished
Cited by6 cases

This text of 288 F. Supp. 641 (Household Goods Carriers' Bureau v. United States) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Household Goods Carriers' Bureau v. United States, 288 F. Supp. 641, 1968 U.S. Dist. LEXIS 10087, 1968 WL 168513 (N.D. Cal. 1968).

Opinion

OPINION

Before BROWNING, Circuit Judge, and SWEIGERT and BURKE, District Judges.

PER CURIAM.

This is an action before a statutory three-judge court [28 U.S.C. §§ 1336, 2284, 2321-2325] to annul and set aside a Report and Order of the Interstate Commerce Commission. The Report, Kingpak, Inc., Investigation of Operations, 103 M.C.C. 318 (1967), was principally concerned with the legality of door-to-door container services provided by non-regulated freight forwarders of used household goods. In substance, the Commission held that the parties under investigation were performing their services in accord with all the criteria of a freight forwarder as that term is defined in section 402(a) (5) of the Interstate Commerce Act, 49 U.S.C. § 1002(a) (5). The Commission properly deferred to another proceeding consideration of whether these freight forwarders were relieved of the duty of compliance with part IV of the Act [49 U.S.C. §§ 1001-1022] by reason of the exemption in section 402(b) (2) [49 U.S.C. § 1002(b) (2)] for freight forwarders who limited their operations to the handling of used household goods.

A freight forwarder is one who in the ordinary course of business assembles and consolidates small shipments into a single lot, assumes responsibility for the transportation of such property from a point of receipt to a point of destination, utilizes the services of carriers by rail, water or motor vehicle to help accomplish the movement, breaks the consolidated shipment up into its component parts, and distributes the goods to their destination point.

Since the original shipments are usually small, the customer is charged on the basis of freight rates applicable to less-than-truckload or less-than-carload shipments. The freight forwarder, who consolidates multiple small shipments into one large one, secures the cheaper transportation rate applicable to full truckload or carload lots. The spread between the two freight rates accounts for his gross profit.

The plaintiffs are all motor carriers of household goods certificated under part II of the Act. The forwarders involved in this proceeding compete with the plaintiffs by offering a service in [643]*643which household goods are transported from door to door in one container. The goods are stowed into the container at the point of origin, are moved from household to terminal by local ware-housemen or motor vehicle operators, are transported overland by rail or truck common carriers and overseas by ocean vessels, are further moved from terminal to household by local warehousemen and motor vehicle operators, and are finally removed from the container at the point of destination. This door-to-door container service eliminates the necessity of rehandling the lading in transit, thus resulting in a more economical rate.

The great preponderance of traffic handled by these freight forwarders consists of the household effects of military personnel moving to and from overseas duty stations. Because of the geographical dispersion of such shipments, the practice of the Department of Defense in tendering shipments to approved forwarders on a rotation basis, and the need for expedited deliveries, the forwarder rarely has sufficient traffic at any one time to permit it to effect consolidation of shipments originating in its own service. Instead a practice has developed whereby two or more freight forwarders secure the economies available in full carload or truckload freight rates by combining their single shipments onto the same truck or car. This combining of shipments is referred to as joint-loading.

Section 402(a) (5) requires that a freight forwarder assemble and consolidate or provide for the assembly and consolidation of property entrusted to him for transit. The Commission concluded that joint-loading, being the substantial equivalent of consolidation, satisfies the statutory requirement. Such an interpretation by the Interstate Commerce Commission of the very statute which it enforces is entitled to great weight and should not be lightly interfered with by this court in the absence of compelling reasons. See United States v. American Trucking Associations, 310 U.S. 534, 549, 60 S.Ct. 1059, 84 L.Ed. 1345 (1940); I.C.C. v. Allen E. Kroblin, Inc., 113 F.Supp. 599, 623 (N. D.Iowa, 1953), aff’d, 212 F.2d 555 (8th Cir. 1954), cert. denied, 348 U.S. 836, 75 S.Ct. 49, 99 L.Ed. 659 (1954). No such reasons have here been shown.

The Commission has recognized that consolidation can be performed in many ways. See, e. g., Hopke Freight Forwarder Application, 265 I.C.C. 726 (1950); Barge Service Corp. Freight Forwarder Application, 285 I.C.C. 249 (1953). It has also accepted the right of two freight forwarders to joint-load their less-than-carload lots onto the same car. Twin City Shippers Association Freight Forwarder Application, 260 I.C.C. 307 (1944); Kelly Freight Forwarder Application, 260 I.C.C. 315 (1944); Empire Freight Co. Freight Forwarder Application 265 I.C.C. 109 (1947).

Plaintiffs argue, however, that the combining of traffic in the joint-loading process must always be a combining of consolidated shipments rather than of single shipments; each freight forwarder must effect a consolidation of his own shipments before joint-loading. We disagree. There is nothing in the language of the statute to compel such a result. Furthermore, we see no great distinction between the joint-loading of consolidated and unconsolidated shipments; the service to the consumer is the same in either case. Accordingly, we hold that when the single shipment of one freight forwarder is joint-loaded with the single shipments of one or more other freight forwarders for the purpose of tendering the combined shipment for line-haul transportation, the statutory requirement of consolidation has been met.

Plaintiffs next attack the Commission’s finding that such consolidations can be effected through the physical aggregation of shipments at the port of embarkation or even outside the United States. They claim that the mere assem[644]*644bly movement into a port is not enough; at least part of the line-haul movement of the consolidated lot must take place within the United States. However, we find no support for the plaintiffs’ position in either the statute or case law.

The Commission has consistently held that the definition of a freight forwarder does not require that all the essential operations be performed within the United States; it is enough that each is in fact performed. To be sure, the Commission’s jurisdiction (and hence its power to regulate) extends only to the boundaries of the United States, but because the extent of the operations in the United States is limited does not prevent the entire operation from being properly classified as freight forwarding.

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288 F. Supp. 641, 1968 U.S. Dist. LEXIS 10087, 1968 WL 168513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/household-goods-carriers-bureau-v-united-states-cand-1968.