A SIMPLE METHOD FOR RESOLVING MINOR SHIPPER-RECEIVER DIFFERENCES

The resolution of shipper-receiver differences in the transfer of uranium-laden products between two parties has been a continuing problem to all concerned. While many suggestions have been put forward as possible solutions, the problem is still with us, although it is perhaps not now as severe as when nuclear materials were transferred in the early days of atomic energy. Currently, major differences are generally resolved by exchanges of samples, through bargaining and negotiations or by depending upon an indepen- dent referee acceptable to both shipper and receiver. However, minor differ- ences on each transfer do not warrant extensive efforts to achieve perfect resolution because of the economics involved; yet, because of frequent large orders now being placed in the industry, small differences on each shipment can be accumulated over many shipments into sizeable dollar values. The purpose of this paper is to present a simple method to resolve equitably on a continuing basis, minor shipper-receiver differences in the transfer of special nuclear materials. The technique, while rather simple in practice, is probably the most equitable of any known system in practice today. The method has been re- ferred to as the \"split-the-difference\" concept. To resolve minor variations, utilizing this method, both parties must agree through an advance understand- ing to use a value midway between the shipper and receiver values. As can be recognized, the concept is particularly acceptable to both parties if the receiver's values are higher than those of the shipper.