eGov/Mil Newsletter: July 15, 2016
In this Issue:
- U.S. Bank Freight Payment Seller Agreement - Change in price structure effective Oct. 1
- DP3 Metrics Dashboard Slides for Weekly Peak Call on 14 July
- Week ahead: Defense bill talks kicking off
- Shipping Firms Promise the EU Steps to Prevent Price Hike Collusion
- A Handful of Sponsorhips and Exhibit Booths Left for IAM Annual Meeting
The message below is being sent to all Transportation Services Providers (TSP) involved in the DOD households goods program by US Bank. It signals US Bank’s intent to increase its fee per invoice from 1.00 percent to 1.33 percent as of Oct. 1, 2016. You may not have received the message as of yet but please be on the lookout for it.
The obvious issue is that with an implementation date of October 1, 2016 TSPs will not be able to incorporate this increase in their rates until the 2017 Annual Cycle. This is unacceptable.
IAM has already been in communicated with SDDC and have asked them to approve a line item pass-through charge, billable on every DOD HHG invoice, beginning with any shipments billed after Sept. 30, 2016 through any billed shipments picking up before May 15, 2017. We have also asked for the pass-through to be in the amount of 0.40 percent due to the extra administrative, programming and extra line item billing associated with the change.
There are numerous precedents for such a surcharge and we are optimistic that SDDC will agree to our request.
Look for further details as they become available.
US Bank message:
Dear Valued Client:
Since 1998, the United States Federal Government has depended upon U.S. Bank Freight Payment to deliver timely, accurate payment and pre-payment audit services with the highest level of readiness, performance and value. In order to maintain and surpass Government readiness and performance requirements, U.S. Bank continuously invests in U.S. Bank Freight Payment to ensure we protect against cyber-attacks and provide world-class disaster recovery and continuity-of-business capabilities.
Government and commercial shippers and their carriers benefit from patented transportation specific product features, robust reporting, best-in class pre-payment audit capabilities and an increasingly broad array of service support models delivered through U.S. Bank Freight Payment. To ensure continued value, U.S. Bank is changing its pricing structure to a shipper driven model. As a Government carrier, you benefit from quick payment and exception resolution, 24x7 support and easy collaboration through U.S. Bank Freight Payment.
Effective immediately, Schedule 1: Fees document will be added to your existing agreement1. This Schedule is in addition to any Schedule or Pricing Addendum currently attached to your existing agreement which continues unchanged.
Schedule 1: Fees
Effective October 1, 2016, pricing in the Schedule 1: Fees will take effect for carriers billing Tier 1 shippers. Today, the United States Federal Government or any of its agencies including the Department of Defense, Department of State, Department of Homeland Security and Department of Health and Human Services are the only Tier 1 shippers. The charge per invoice will be 1.33% of the invoice total, based on the current Wall Street Journal Prime Rate. As part of this pricing change, U.S Bank will eliminate all carrier user and transaction fees on invoices for Tier 1 shippers.
If you do business with both the Government and commercial shippers, only your Government business is impacted at this time.
We value your business and remain committed to providing the carrier community with a level of service that is unmatched by any other freight payment provider. If you have questions, please refer to the FAQ document, or contact us at 877.856.4974 or email email@example.com.
U.S. Bank Corporate Payment Systems
DP3 Metrics Dashboard Slides for Weekly Peak Call on 14 July
The DP3 Metrics Dashboard Slides for Weekly Peak Call that happened today is available on IAM’s website.
Week ahead: Defense bill talks kicking off
The House and Senate are preparing to work on a final defense policy bill for 2017, a process expected to be fraught with disagreements.
The House moved on Friday to begin conference on the 2017 National Defense Authorization Act. Members of the House and Senate will now sit down and work out the differences between their respective bills in the coming weeks.
Shipping Firms Promise the EU Steps to Prevent Price Hike Collusion
Several container shipping companies have promised to change practices that potentially allowed them to raise the price of global goods transport, the European Commission announced July 7, following an investigation.
A Handful of Sponsorhips and Exhibit Booths Left for IAM Annual Meeting
It's not too late to register for space in the exhibit hall or choose a sponsorship for IAM's 54th Annual Meeting. Many spaces and sponsorships have already been claimed but a handful remain. Want to get your company in front of everyone at the conference? Act now before it the opportunity is over. Contact Katia McKennon.