10/2/2007
Allied Van Lines Takes Industry Lead by Introducing New Tariff Well Ahead of Deadline
Minimal Changes Maintain ‘Business as Usual’ for Customers
CHICAGO, October 2, 2007 — Allied Van Lines today announced its new, independent tariff, which closely follows the current Tariff 400-N used as the standard by the household goods (HHG) moving industry. Allied introduced its new tariff three months before the Surface Transportation Board’s (STB) effective date of January 1, 2008, to allow its customers, van line agents and drivers a sufficient amount of time to review and understand the changes. The STB is an economic regulatory agency of the Department of Transportation, which regulates and resolves service and rate disputes for most of the transportation industry, including interstate household goods carriers.
“We want to make this transition as smooth as possible for our customers, agents and drivers so we have modeled the new tariff after the current tariff used as a benchmark in our industry,” said Eileen McCarthy, vice president and general manager of Allied Van Lines.
Allied’s new tariff is the result of a May 7, 2007, ruling issued by the STB that has the effect of requiring all household goods carriers to independently develop their own tariffs by January 1, 2008. Essentially, Tariffs explain a household goods carrier’s base rates, charges and service rights, rules and responsibilities.
Allied’s new tariff is posted on the company’s Web site at www.allied.com. In addition, the company offers a handy calculator customers can use to determine an estimated tariff amount based on origin, destination, zip code, and shipment weight.
STB Decision and History
The STB decided to end joint ratemaking during its most recent periodic review of the approvals of motor carrier bureau agreements. The STB determined rate bureaus are not necessary or consistent with the industry's deregulated environment and no longer serve the public interest.
For many years, the household goods industry, like most sectors within the transportation industry, has operated with anti-trust immunity. Tariff bureaus were established to bring order to the wide range of pricing practices, and were allowed to jointly establish the rate structure for their respective memberships. In 1980, Congress started the move towards deregulating the motor carrier industry by eliminating most entry restrictions and rate regulations, including the extensive regulatory authority of the Interstate Commerce Commission (ICC) over rates.
In 1995, deregulation further progressed with the ICC Termination Act (ICCTA), which eliminated the ICC and established the STB. ICCTA included specific provisions on joint ratemaking agreements, including requiring the STB to review those agreements every five years to determine if they were necessary to protect the public interest.
Changes Mean Future Benefits for Customers
Allied Van Lines believes establishing carrier-specific tariffs offers greater opportunity in the long run to create more innovative moving and relocation services that improve efficiencies and offer solutions customers need and want most.
“We’re no longer restricted by the industry tariff,” said Steve McKenna, director, Pricing and Contracts for Allied Van Lines. “Allied is now poised to go to market with new tools and products that will provide long-term benefits for both our corporate and consumer customers, while providing fair compensation for our service providers.”
The buyers at our corporate customers will likely feel the most uncertain in the short term, according to McKenna. “Our transition plan will allow buyers to operate in a ‘business as usual’ environment,” he said. “Over time, we will work with our corporate customers to establish the best economic structure that continues the service/value relationship they are familiar with.”
“The introduction of Allied’s tariff will ensure compliance with the STB rulings and laws,” McCarthy said. “Providing value to our corporate and consumer customers through improved products and services supported by easy-to-understand pricing applications will continue to be a priority for us.”
About Allied Van Lines
Established in 1928, Allied Van Lines, with more than 500 agent locations in North America, is an experienced leader in household goods moving and specialized transportation services. Allied is one of the established global brands of SIRVA, Inc., (NYSE: SIR), a leader in providing relocation services to corporations, consumers and governments around the world. For more information about Allied Van Lines, visit www.allied.com.
About SIRVA, Inc.
SIRVA, Inc. is a leading provider of relocation solutions to a well-established and diverse customer base around the world. The Company handles all aspects of relocation, including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services. SIRVA conducts more than 300,000 relocations per year, transferring corporate and government employees along with individual consumers.
The Company operates in more than 40 countries with over 4,000 employees and an extensive network of agents and service providers. SIRVA's well-recognized brands include Allied, Allied International, Allied Pickfords, Allied Special Products, DJK Residential, Global, northAmerican, northAmerican International, Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA Settlement. More information about SIRVA can be found on the Company's Web site at www.sirva.com.
Media Contact
Jenine Davis-Hanson
Marketing Manager
Allied Van Lines
630.570.3807
