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KLLM, INC. RULES CIRCULAR

Item 290

FRACTIONS

In computing a rate based on a multiple of percentage of another rate, the following will govern in the disposition of fractions: Fractions of less than ½ or .50 of a cent - mil. Fractions of ½ or .50 of a cent or greater - increase to next whole figure.

Item 300

IMPRACTICAL OPERATIONS

Pickup or delivery service will not be performed by carrier at any site from or to which it is impracticable to operate vehicle because of:

(a) The condition of roads, streets, driveways, alleys or approaches thereto;
(b) Inadequate loading or unloading facilities;
(c) Riots, acts of God, the public enemy, the authority of law, the existence of violence or such possible disturbances as tending to create reasonable apprehension of danger to person or property.

Item 310

LOADING BY CONSIGNOR - UNLOADING BY CONSIGNEE

Rates named herein provide for the loading and unloading of carrier’s vehicle to be performed by the consignor or consignee. In the event shipment is stopped off to complete loading or partial unloading, the party shipping or receiving any portion of the shipment will be subject to these charges. Upon request of consignee or shipper, carrier is requested to assist in loading and/or unloading, the carrier will furnish one person to assist, under the director of the shipper or receiver, subject to an additional charge of $150.00 for shipments of up to 2,000 pieces. An additional charge of $.04 per piece will be assessed on shipments in excess of 2,000 pieces. If the carrier hires a lumper service to perform this duty, the actual charges incurred are to be reimbursed by the shipper. Should shipper require documentation for lumper fees incurred, and additional administration fee of $15 per load will apply. These charges shall be in addition to all other applicable charges.

All shipments shall be presumed to be “shipper load and count” within the meaning of 49 U.S.C. 80113. Inadvertent omission of seal numbers or SLC notation shall not result in carrier liability for count or loading defects when shipper actually loads and seals trailer which is delivered intact to consignor.

Item 320

MINIMUM CHARGE

Except as otherwise provided, the minimum truckload charge shall be $600.00.

Item 330

OPERATING RIGHTS

Sub. No. 149. To operate as a common carrier, by motor vehicle, in interstate or foreign commerce, over irregular routes, transporting general commodities (except classes A and B explosives, household goods, and commodities in bulk), between points in the United States (except Alaska and Hawaii).

Item 340

CANADIAN OPERATING RIGHTS

Rates and provisions named herein are applicable to the extent of the authority shown below (in United States currency):

Canadian Provinces lf Alberta; British Columbia (excluding automobiles and trucks, new or used); Quebec (except Group 31: Currency and Precious Merchandise conveyed by armored vehicles, Group 32: furniture and other used goods and Group 34: Explosives); and Ontario (restricted against the carriage of primary iron or steel products, including galvanized products except coating or allied processing see 34994 or coke oven products see 3311).

Item 350

PALLET CHARGE

When carrier is requested by consignor or consignee to provide pallets, a minimum charge of $8.00 per pallet will be assessed to the party making the request. These charges are in addition to all other applicable charges. The bill of lading must be noted: “Carrier requested to provide pallets.”

Item 360

PACKING OR PACKAGING - SHORTAGE

Carrier will not be responsible for shortage on shipments which are banded, strapped, netted, shrink-wrapped or otherwise secured to bins, pallets, platforms or skids when such securing material is found to be intact at the time of unloading by consignee. Carrier will only be responsible for the number of binds, pallets, platforms or skids on such shipments.

Item 370

PICK-UP & DELIVERY SERVICE

The rates named herein include pickup or delivery at all points within the limits of the cities, towns, villages and other points from and to which rates apply, but each shipment will include only one pickup and one delivery.

Item 380

REFUSED, UNCLAIMED OR UNDELIVERED FREIGHT

When conditions beyond carrier’s control exist at the address or place designated on the bill of lading as the point of final delivery and such conditions make delivery impossible after proper notification (see Note), or when a shipment is refused by consignee, or cannot otherwise be delivered when tender of delivery is made by the carrier at the appointed time, shipment remains in carrier’s possession and carrier must notify the shipper in writing (facsimile transmission will constitute a writing) of failure to delivery. Shipper will be afforded two (2) hours to respond with disposition, after which carrier may, at carrier’s option, (a) return the shipment to shipper, applying applicable circular charges; (2) deliver the shipment to the nearest place of public storage where same will be subject to applicable warehouse liens and carrier’s liens for services rendered from origin through point of delivery to the warehouse; or (3) exercise remedies afforded by the Uniform Commercial Code.

Note: Notice of arrival as defined in this circular means a forty-eight (48) hour written notice (facsimile transmission will constitute written notice) given by carrier to the shipper and consignee that a delivery is forthcoming or the actual tender for delivery, whichever comes first.

Item 390

HAZARDOUS MATERIALS PROVISION

Shipper accepts all US Department of Transportation requirements governing placarding of hazardous material. Unless otherwise noted, rates published by carrier do not include services for hazardous materials. A hazardous materials surcharge of $.05/mile, subject to a $75 minimum charge per shipment will apply on all shipments classified as hazardous material.

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