eGov/Mil Newsletter: August 10, 2018
In this Issue:
- USTRANSCOM Weekly Peak Season Teleconference Summary – Week 32
- USTRANSCOM to Hold “Market Expansion”
- USTC 2018 Fall Personal Property Forum Update
- Lyons to lead USTRANSCOM
- FY19 Defense Authorization Bill Passes Congress in Record Speed
- DOD & Government Personal Property News & Notes
- Trucking’s Tight Capacity Squeezes U.S. Businesses
- Why the Trucking Shortage Is Costing You
- Moving this summer? Here’s why you could face delays, no matter where you’re going
August 9, 2018 Peak Season Teleconference – “Week 32”
The following information was discussed at the weekly USTRANSCOM Peak Season call:
COL Lounsbrough hosted the call. He gave a quick update on upcoming Service related meetings happening in the fall. In late October, they will conduct a Council of Colonels and Captains (CoCC), and in November, the General Officer Steering Committee (GOSC). He also mentioned the Friday DPS system outages will continue as they upgrade security on data storage and data in-transit. Those will continue to be worked, likely until the end of September. He also mentioned to the Services that they are looking to expand PPM shipments in My Move. They will likely start the week of 20 August with more Air Force shipments, and then expand to the US Marine Corps.
The attached slides were then discussed. This week’s focus was QA and CSS.
- The pick-up summary is trending normal.
- Per the slides Peak Season violations compared to last year are down in terms of suspensions and letters of warning in key categories. There was discussion as to why that might be. Some suggested there were more suspension actions to come that hadn’t been processed yet. Not clear as to the meaning of that statement. Some said it was based on a change in the way suspensions were processed without providing additional clarification when asked.
- CSS return rate analysis was discussed. Percentages still lower than previous years. USTC said since the member can submit the survey for up to 12 months, they expect the number to continue to rise over the next few months. USTC did clarify that whenever a member provides a CSS, that score is carried in the system for 12 months from when they completed the CSS, not from delivery of the shipment.
- There were two no-capacity reports in the Northern-Tier this past week. None for NTS.
- A new SIT slide was presented. It showed that 6% of SIT shipments are for 1 day or less. USTC said they will dig into the details to see what they can find about that 6%. This looks to be a major discussion item at the PPF as USTC and the Services have some significant concerns regarding what they view as a high number of shipments experiencing a single day of SIT.
- The slide also breaks down SIT conversions and shows that there were about 7,000 converted shipments in the last 12 months. This does not include the number of conversions to member’s expense coming from NTS.
- The 12-week shipment outlet is trending normal.
- The Delivery slide broke out the type of shipments going into SIT. IUB is the leading category. There was discussion on why this might be the case, to include members shipping those well in advance to ensure their IUB is available when they arrive. It was pointed out on this slide that although the earlier slide showed a lower trend for LOWs and suspensions for missed RDD, this slide shows missed RDDS are higher than last year. So, it would appear as though the LOWs and suspensions are not being put in. It was also discussed again that the higher missed RDD numbers might be based on TSPs not making updates in DPS in a timely manner.
- It was suggested that another look at transit times might be in order based on new realities (ELD, Hours of Service, driver shortages, etc.). The USMC commented that it might be time to look at delivery spread dates again; but that they are against spread dates at origin because of constraints on people having to get out of their house or quarters by a specific date.
COL Lounsbrough discussed last week’s comments that they were considering another Open Season. He clarified that it isn’t an Open Season, but really a “Market Expansion.” USTC provided input on the market expansion, explaining they want to target NTS providers already in the program, and see if they are interested in becoming TSPs and expanding their approvals in the program for additional capability. They also mentioned they would adjust guidance to allow new entrants who came into the program in 2017, as well as, any new entrants from the 2018 Market Expansion”, to give them backhaul approval. Currently, the new entrants are NOT allowed to file rates back into their region, only from their origin.
After the telecon IAM staff followed up with a written communication to USTC with a series of questions regarding exactly what program “participants” will be included in this Market Expansion initiative.
1) Since what you are envisioning will be called a “Market Expansion”……. Will that ability to expand also include any current TSPs, SIT Agents, Intra-State only TSPs, etc.?
2) Will former TSPs that have been promised that they would be able to “reapply during a future Open Season” be allowed to reapply during this Market Expansion?
3) Are you looking at the International Market at all during this Market Expansion?
4) We currently have some Freight Forwarder approved as TSPs in the Domestic Market. Will any International-only TSPs be considered to “Expand” into the Domestic Market?
The initial response from USTC indicated that, “Since this is not an open season, the answer to #2 and #4 is dependent upon whether they are an approved NTS TSP in good standing. We are not looking at the International Market at all during this Market Expansion”. Question #1 was not directly addressed in the response but it appears that only approved NTS TSPs will be allowed to apply during this upcoming Market Expansion.
Marine Corp asked for data on shipments that go into storage when a member is looking for a direct delivery. They have been looking for ways to help members that are “inconvenienced” due to not being able to get a delivery out of SIT in a timely fashion.
Sources: IAM & USTRANSCOM
As was discussed in the previous newsletter item, the U.S. Transportation Command (USTC) plans to hold, what they are terming, a “Market Expansion”. This will not be a true Open Season.
It appears from the discussion that took place on the weekly USTC Peak Season teleconference that the Market Expansion will be aimed only at currently approved Non-Temporary Storage service providers. USTC believes that these current providers have experience in the DOD personal property program, understand the rules/regulations and are the perfect candidates to participate as an interstate transportation service provider in the Defense Personal Property Program (DP3).
This Market Expansion initiative is progressing rapidly. The process is currently undergoing a legal review by USTC which the personal property office believes will be completed in a few days. Then information/guidelines for the Market Expansion will be finalized and sent to industry. USTC staff believes that the information will begin to go out in approximately two weeks.
The goal is to have applications vetted and new DP3 Transportation Service Providers ready to file rates for the 2019 Annual Cycle well in advance of the start of the January 2019 rate filing.
The goal of the Market Expansion is increase capacity in a number of targeted areas that continue to experience major capacity issues during the Peak Season. One issue that will be addressed in this process that was not addressed in the two 2017 Open Season will be the idea of “backhaul.”
New entrants in both of the 2017 Open Seasons only received limited scopes of operation. They were only initially approved to file rates FROM their origin state TO all of the CONUS Regions. They were not authorized to file rates from other states back to their origin, i.e. backhaul. USTC has indicated that they saw this as a flaw and they plan to rectify this for both the TSPs approved in the 2017 Open Seasons and the newly approved TSPs from this 2018 Market Expansion. All of the 2017 and 2018 approved TSPs will have the ability to file a wider variety of rates to and from their origin states.
At this point the specific details are not available; however, USTC hopes to have all of the information available in the next few weeks when the Market Expansion process opens.
Sources: IAM & USTRANSCOM
According to USTRANSCOM Personal Property Advisory #18-0092, the Fall PPF scheduled to take place on 25-26 Sept. in Fairview Heights, Illinois.
The agenda for this event is currently in the planning stages, but a high-level view follows. Day one (25 Sep) will consist of a format similar to the March PPF. The morning briefs will consist of program level peak season topics and the afternoon will consist of smaller program related breakout sessions. Day two (26 Sep) is projected to consist of various training sessions. As we continue to plan the fidelity of the breakout and training sessions, we look forward to exchanging program growth/betterment ideas and two-way communication with everyone in attendance, to include other Government organizations, TSPs, and agents.
Please submit attendee name(s) and organization(s) to firstname.lastname@example.org.
For travel planning purposes, IAM and AMSA plan to hold an industry only “Pre-PPF” meeting on Sept. 24 from 4:30 – 7:00 p.m.
Lyons to lead USTRANSCOM
The Senate has confirmed U.S. Army Lt. Gen. Stephen R. Lyons, Joint Staff Director for Logistics (J4), as the next commander of U.S. Transportation Command here. A change of command ceremony will take place Aug. 24, 2018, at the Scott Air Force Base Parade Field. U.S. Air Force Gen. Darren W. McDew, current USTRANSCOM commander, will retire following the change of command ceremony.
FY19 Defense Authorization Bill Passes Congress in Record Speed
The FY19 NDAA authorizes a $717 billion national defense budget that rebuilds our military, increases lethality, strengthens our alliances and partnerships and reforms the way we do business.
DOD Fuel Surcharge Update for August, 2018
Fuel surcharge for DoD Personal Property Domestic/International shipments is 6% effective 8/15/18 through 9/14/18.
Early Closure of JPPSO-Northeast: 10-Aug-2018 (11:00-1630 EST)
Purpose: To inform Industry, MAJCOMs, JPPSOs, PPSOs and PPPOs of early office closure.
Be Advised: JPPSO Northeast will be closed 10 August 2018 from 1100-1630 EST due to a detachment function and will re-open 13 August 2018 at 07:00 EST.
Action: Contact our after-hours on-call person at 978-995-5063 for urgent matters that need to be addressed prior to re-opening.
POCs: JPPSO-NE email: Hanscom.JPPSO.CMB@us.af.mil
Expiration: 13 August 2018 – 07:00 EST
JPPSO-NE Announces Truck Inspection Gate Change at Hanscom AFB
The following details regarding a slight change in the area that will be used to inspect trucks entering Hanscom AFB, MA was provided by the Hanscom AFB security office and JPPSO-NE:
We just wanted to reach out and give you all a heads up as your organizations receive the vast majority of deliveries/commercial vehicles at Hanscom AFB. The plan right now is to occupy the new Temporary Commercial Vehicle Security Area (CVSA) outside of the Vandenberg Gate on 13 August. Please let your drivers/contractors know the new location change/effective date and we will have a Defender out there for the first few days to minimize vehicles bypassing the search area.
Air Force Provides Process to Vet Converted Lots
The Air Force Personal Property Activity Headquarters (AF PPA) is now the single resource for “converted” Air Force shipments that were originally awarded by an Air Force Joint Personal Property Shipping Office (JPPSO).
Agents needing to make inquires on Non-Temporary Storage (NTS) or Storage-in-Transit (SIT) shipments converted to member’s expense, the AF PPA is now the “one-stop-shop” for all inquiries.
The AF PPA will help with access to contact information for service members if agents have not been able to contact them regarding their goods and will also be able to determine if individuals are still in the service. This will help with ensuring that agents are compliant with the rules associated with the Service Members Civil Relief Act (SCRA).
The process and form that the AF PPA would like agents to utilize for requesting help with this process can be found at PPA HQ Request for SCRA Process.
In a recent discussion with AF PPA officials, they frankly stated…. “The process is working”! Of the companies that have reached out to the AF PPA for information and/or help with finding members or determining if they were still in the military they have had a 100% success rate. However, the AF PPA personnel have been surprised at how few companies have taken advantage of them as a resource.
Agents are highly encouraged to take advantage of this process. There has been an outcry from industry regarding the number of “abandoned” converted storage lots that are sitting in warehouses across the country. This has been identified as a significant drain on warehouse space and resources.
It’s time for warehouseman to take advantage of this resource. Do it now.
Sources : IAM, JPPSO-NE & Air Force PPA HQ, Daycos
Trucking’s Tight Capacity Squeezes U.S. Businesses
More companies are pointing to rising freight costs as a drag on earnings and growth, as trucking companies raise rates at a historic pace and one says finding trucks is getting ‘ugly’
Why the Trucking Shortage Is Costing You
A shortage of truck drivers that has been simmering in the United States for years has reached a full boil, causing anxiety from small factories to the Federal Reserve. Trucking companies have responded by raising wages and boosting their hauling fees. Their customers then have to choose between smaller profits or passing along the higher costs, which fuels inflation. Some producers have encountered a shortage of trucks, which can tap the brakes on economic growth. Don’t expect the problem to go away soon: In the tight labor market, construction and manufacturing jobs will continue to lure would-be truckers.
Moving this summer? Here’s why you could face delays, no matter where you’re going
Military families on the move this summer are experiencing hardships because of unexpected delays in pickups or delivery of their household goods, and the situation isn’t likely to improve, officials said. About 1 in 10 military members who have moved so far this year have experienced delivery delays, according to Army Maj. Nichole Downs, a spokeswoman for U.S. Transportation Command. Officials expect delays to continue, she said.