USTC J9 Peak Season Call (9 July)
July 10, 2020
A summary of the USTC J9, July 9th Peak Season call follows:
- Slide 1 data (depicts week 27) continues to show counseled and awarded shipments exceeding the three year average for this week. Projections for the next couple of weeks suggests the numbers will stay above the three year average for those same weeks.
- Week 26 reflects pick ups at 85% of the three year average.
- IAM asked J9 about rumblings we are hearing that suggests a drop off in bookings for late July early August. J9 did not know why there might be that perspective in certain areas. JPPSO-NE asked for specific areas, because they said they continue to have capacity challenges and trouble getting shipments booked. Other JPPSOs chimed in with the same perspective. J9 stated it could be the impact of short fuse expansion; could be July 4th holiday anomaly; could be some agents not being used; could be a combination of many different items. But the feedback on the call was that DoD is seeing a capacity constraint in many areas. J9 stated the “no capacity” report isn’t highly reflective of the capacity problems the Services are talking about; so they aren’t sure why that is. But they continued to maintain that the volume of moves is out there, and the demand is high.
- Slide 1 also shows DoD cracked 8% of domestic shipments moving via Code 2. The overall raw numbers of Code 2 fell from last week, but the overall percentage continues to climb.
- JPPSO-NE mentioned that based on their booking problems, with people being counseled today, they are telling them it’s at least August until they can get moved. So there was much discussion and confusion as to why some in industry see bookings dropping off; at the same time when JPPSOs are having so much trouble booking shipments.
- Some industry reps mentioned that they keep hearing DoD say that there is no Hawaii capacity for the next 7 weeks, but at least one Hawaiian agent said they have capacity starting in two weeks; and hope the 7-week message doesn’t result in the JPPSO not even trying to book shipments, and everyone losing out on that capacity. Navy HQ, Jay Yerkey stated if any agent has capacity in Hawaii inside the next 7-weeks, please contact him directly so he can put them in touch with JPPSO-Hawaii and get everyone on the say page. Jay’s email is email@example.com.
- JPPSO-NE mentioned that for them, anything now picking up in July, they put directly on their load board. Industry can view that board for available shipments. Questions can be directed to firstname.lastname@example.org.
- JPPSO-MA also seeing capacity issues out of DC area. Resorting to short fuse to move shipments.
- The short fuse numbers for June were the highest since last June.
- Slide 14 represents a significant drop in refusals. Slide 15 shows a drop in the blackout ratio. This suggests to J9 that like previous years, capacity is opening up post July 4 weekend; and they are hoping what that represents will lead to less capacity issues moving forward than what is currently being experienced.
- Slide 16 shows that in week 27 there were 6,542 accepted shipments to 18,030 refusals…down from last week’s 55,225 refusals. That’s a trend that J9 likes to see; and is more comparable to last year in week 27.
- JPPSO-SE mentioned that they weren’t seeing blackouts; what they are experiencing is shipments timing out; when asked if those were short fuse or standard shipment offers, SE seemed to be focusing on short fuse shipments; but mentioned some standard offers were also timing out. J9 reminded SE to take appropriate punitive action on standard shipments that time out…as long as SE was making contact with TSPs to make sure there weren’t system issues causing the problems.
- After being brought to J9’s attention a couple of weeks ago, iHHG missed RDDs for direct deliveries has now fallen below (better performance) the three year average for the past two weeks. Previously, it had been noted that missed RDD numbers were trending better than the three year average for all markets except iHHG; but that has since turned around.
- J9 discussed advisory 20-0100, 45 Day Extension for Peak Season Rates. Paragraph #4 states, “This DOES NOT APPLY to local moves, Non-Temporary Storage- Retrograde shipments,
Direct Procurement Method, and One-Time Only shipments. They were asked what the term “Retrograde shipments” referred to. J9 responded that they were referring to the two Non-Temp Storage Contracts on the East and West Coast…NTS Retrograde. Later, AF PPA stated that since some NTS retrograde shipments moved via GBL, it would appear the rate extension would apply to those specific NTS retrograde shipments.
- J9 was asked about the status of the clarification on reweigh guidance that IAM has been asking for. They stated they had a coordinated document that makes the requirements clear, and it was being staffed to leadership and should be out soon.
- J9 was asked whether they had acted on the suggestion from two weeks ago to use DPM contracts to move shipments (even large shipments) where JPPSOs were having capacity constraints? JPPSO-SC and JPPSO-NE replied that they use every capability, even DPM, to move shipments when capacity is constrained.