Final Rule Increases Efficiency Processes for Movers, Enhances Communications to Shipper 

As IAM has reported on throughout the year, and after a delay in enforcement granted by the agency on June 24, enforcement of the final household goods shipment rule is scheduled to begin Oct. 31. Adherence to the new regulations are required for non-government household goods interstate moves. IAM was among a handful of industries to comment on the proposed recommendations in October of last year.

Key changes in the Final Rule include:

• Requires preparation of a new binding (or non-binding estimate) when an individual shipper requests additional services - revised estimates are not permitted.

• Allows for virtual, live video surveys of household goods in lieu of in-person estimates. Virtual surveys are now permitted beyond a 50 mile radius - unless waived in advance by the shipper, newly defined surveys are required for all covered interstate moves.

• Removes the requirement for an "order for service" to be issued.

• Replaces the freight bill with an invoice requirement - this change is intended to provide clarity to individual shippers regarding outstanding balances that must be paid.

• While the bill of lading must be signed by the shipper three days prior to their HHG load date, they reserve the right to rescind the bill of lading three days prior to loading without penalty. The bill of lading also now encompasses DOT numbers and other pertinent information for all motor carriers involved in the shipment.

• Requires all motor carriers and household goods brokers to provide a copy of the updated Rights and Responsibilities Booklet and the Ready to Move? pamphlet at the time the estimate is provided. Information on the updated guides may be found by clicking here. Companies with websites must also display the updated and accessible versions of both.

Background:

The origin of the proposed rulemaking stretches back to 2015, when the HHG Working Group (Federal Advisory Committee) was formed as part of the 2015 Highway Reauthorization Bill (FAST Act). IAM was represented by Chuck White on the Federal Advisory Committee, enabling the association to help lead discussion and provide direct input into the recommendations. After several meetings in 2016 and 2017, the FMCSA issued the Group's final recommendations in 2019. Ten of the eleven recommendations requiring rulemaking were ultimately adopted in the Final Rule.

For additional information or any questions, please contact Bryan Vickers, bvickers@pacellp.com, 703-403-2882, with IAM's Government and Regulatory Affairs Team.