USTC J9 Conditions Based Movement Call (1 Sep)

September 03, 2020

Tuesday’s J9 call with industry and the Services followed a recent trend of very little change in data presented on the J9 slides, and very little interaction in terms of questions, answers and issues during the main portion of the brief.  IAM took the opportunity, along with a few TSPs to ask questions and raise concerns with some of DoD’s proposed 2021 business rules.  Specifically, the proposals to move Hawaii, Okinawa, and Spain to a winner-take-all Special Solicitation for COS 4; and the requirement for TSPs to provide a customer service capability on Saturdays.

 

When asked what the impetus behind including Hawaii and Okinawa to a Special Solicitation, J9 stated those were the areas that JPPSOs have specifically mentioned having trouble getting capacity for; and in light of what J9 sees as success with the additional Code J special solicitations this year, they felt they could see similar success securing capacity for these origin/destination locations for COS 4.

 

AF PPA also questioned J9 as to whether the current transit times had been extended without their knowledge.  J9 stated that the current transit times were in effect until further notice, but no decision had been made on industry’s recommendation to maintain these transit times as the new standard.

 

IAM reminded J9 and the Service representatives on the call of the struggles moving HHG through the LB Port; and challenges across many ports with customs delays, port congestion, US Flag availability, chassis, and rail congestion.

 

Per data briefed on the slides, J9 stated looking at the 4-week projection on slide 1, they see pickups staying above the 3 year average over the next month.  And on slide 2 demand model, it appears weeks 36-38 are well above the three year average.

 

Short fuse numbers were down last week, and continue to be lower this week.  Blackouts are still extremely low.

 

Last week was a good week in terms of COVID related punitive actions, as only one suspension was passed out. There were 16 suspensions to other operational issues such as missed pickups and reweigh failures.

 

During the expanded short fuse window, the week to week peak was about 33%.  We are at 20% for last week.  August short fuse was 23.4% of all shipments; last year’s peak short fuse percentage was 30% in June ’19.

 

J9 reminded the audience that they are looking for a good scrub of business rules and need inputs by 11 Sep COB.

 

The Storage Management Office has a new Branch Chief.  His name is Scott Matthews. He provided a quick update on warehouse status after Hurricane Laura.  No SIT or NTS storage lots specifically impacted.  In terms of NTS TSP’s compliance with Sec 889 of the NDAA, J9 reported that 86% of NTS TSPs have responded and are in compliance. Just over 100 NTS TSPs not in compliance.  Rick Marsh stated J9 has done their due diligence in tracking down TSPs who haven’t responded, and has told the staff to stop.  98.3% of HHG TSPs are compliant.