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Logistics: Warehousing, Trucking and Freight Handling

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Logistics: Warehousing, Trucking and Freight Handling

April 29, 2015

Logistics is commonly defined as the management of the flow of goods between the point of origin and the point of consumption in order to meet customers’ specific requirements. There are several classifications that can apply to employers engaged in logistics services. To correctly classify such employers, it is imperative to determine the services that the employer performs on a fee basis.

Warehouse Operators
Some employers operate warehouses for the purpose of storing their customers’ general merchandise for as long as required by the customer. In this case, revenues are generated by charging storage fees based on the length of time that the customer’s merchandise is stored, and the amount of warehouse space that it occupies. Employers engaged in fee storage of general merchandise are classified as 8292, Warehouses – general merchandise – N.O.C., shown below. 

WAREHOUSES – general merchandise – N.O.C

This classification applies to the storage of general merchandise, including new furniture, for separate concerns on a fee basis when no other classification more specifically describes the operations. This classification also includes the crating of merchandise on a fee basis. 

Drivers and their helpers shall be separately classified as 7219(1), Trucking Firms. 

The storage of household goods and furniture (not new furniture) for separate concerns on a fee basis shall be classified as 8293(1), Warehouses – furniture.

 Warehouses that provide climate controlled storage maintaining below ambient temperatures to prevent spoilage and preserve the integrity of the stored merchandise shall be classified as 8291, Warehouses – cold storage. 

The operation of self-storage warehouses and facilities shall be classified as 8290, Warehouses – self-storage.

8292

Note that Classification 8292 directs that drivers and their helpers shall be separately classified as 7219(1), Trucking Firms. Based on this directive Classifications 8292 and 7219(1) are commonly assigned to employers that both store and deliver their customer’s merchandise.

Trucking Firms
Many trucking firms have facilities (terminals) to receive, consolidate and temporarily hold customer’s freight-in-transit; however, they do not store merchandise on a fee basis. In these cases, merchandise is staged for short periods of time pending transit or transfer. Since this type of trucking firm does not store merchandise on a fee basis, the terminal operations are classified as 7219(1), Trucking Firms, in accordance with the classification phraseology that specifically includes terminal employees, shown below.

 

TRUCKING FIRMS – N.O.C. – including terminal employees and mechanics

This classification applies to hauling customers’ goods under contract, whether for one or more individuals or concerns, when such operations are not more specifically described by another classification. 

When employees furnish the vehicles utilized in these operations, the determination of reportable remuneration shall be made in accordance with Section V, Rule 4, Drivers’ and Their Helpers’ Payroll.

This classification also applies to the rental of trucks or forklift trucks with operators and the excavation, transportation and transplanting of mature trees. 

The transport of the United States mail under contract to the United States Postal Service shall be classified as 7232, Mail Delivery Service Companies.

The contract delivery of parcels shall be classified as 7198(1), Parcel Delivery and Messenger Companies, if (1) less than 10% of the individual parcels and packages delivered weigh in excess of one hundred pounds, and (2) less than 10% of all deliveries have a total combined weight of all items delivered at any one stop exceeding two hundred pounds. 

The hauling of logs under contract shall be classified as 2727, Log Hauling.

The contract hauling and disposal of waste shall be classified as 
9403(1), Garbage or Refuse Collecting. 

The transporting of household goods and furniture, office furniture and fixtures for separate concerns on a fee basis shall be classified as 8293(2), Furniture Moving.

7219(1)

Freight Handlers                                                  
Many logistics firms are not in the business of fee-based storage or trucking, but only handle or forward customers’ goods-in-transit on a fee basis. Firms that load, unload or consolidate freight at shipping or receiving terminals, but are not storage or trucking firms, are classified as 7360(1), Freight Handlers. These operations are sometimes described as cross docking. These operations are often intermodal, facilitating the transfer of freight between air, sea, rail or truck transportation providers. Classification 7360(1) appears as follows:

FREIGHT HANDLERS – packing or handling merchandise at shipping or receiving terminals – N.O.C.

Hauling of freight on a fee basis or freight handling activities in connection therewith shall be classified as 7219(1), Trucking Firms.

The storage of freight on a fee basis shall be separately classified. 

7360(1)

Freight Forwarders 
Logistics firms that specialize in arranging various freight transportation services for their clients are classified as 7360(2), Freight Forwarders or Consolidators – N.O.C. Many freight forwarders specialize in international shipments, and it is common for international freight forwarders to have a relatively large office staff to coordinate transportation services and prepare shipping documents. While freight forwarders are not in the trucking or storage business, they may retain drivers to pick-up freight from customers pending transfer to transportation companies, and facilities to temporarily hold customers’ shipments pending transfer, all of which are assignable to Classification 
7360(2), shown below: 

FREIGHT FORWARDERS OR CONSOLIDATORS – N.O.C. 

This classification contemplates the consolidation of freight at a terminal location in preparation for shipping by air, rail, or ship as well as the de-consolidation of freight shipped by separate concerns. Incidental pickup of freight for consolidation purposes is also contemplated by this classification. 

Hauling of freight on a fee basis or freight handling activities in connection therewith shall be classified as 7219(1), Trucking Firms. 

The storage of freight on a fee basis shall be separately classified.

7360(2)

Related Information 

Classification Search
Classification Information
Online Guide to Workers Compensation: The Standard Classification System