First Round of DP3 2014 Rate Filing Opens February 2

The schedule for the Defense Personal Property Program (DP3) Rate Filing is as follows:

Round 1:  02 Feb 14 (06:00 PM CST) - 07 Feb 14 (06:00 PM CST)
Round 2:  25 Feb 14 (06:00 PM CST) - 04 Mar 14 (06:00 PM CST)

Remember that a number of new factors will be in effect for this rate filing, which becomes effective for shipments picking up on or after May 15, 2014:

• In 2014 Domestic TSPs will, for the first time, be able to file Peak & Non-Peak discounts. TSPs filing for Domestic channels must file four components: Peak Linehaul, Non-Peak Linehaul, Peak SIT, and Non-Peak SIT discounts. All four components MUST be accepted by the end of Round 2 in order for the bid to be considered valid at any point during the Annual Cycle.
• This year the 10% Peak Season Linehaul baseline increase for the 400NG has been removed. The baseline for the entire year will be the Non-Peak baseline. Please take this change into consideration when formulating your rates for 2014.
• Don't forget to consider the new California Air Resources Board (CARB) mandate for trucks entering or operating in California, which became effective January 1, 2014.
• For TSPs filing in both Domestic and International Markets using the Bulk Rate File method, separate Bulk Rate Files must be filed for each market.

Other issues you must remember during the rate filing:

• During Round 2, TSPs will not be able to re-file all components of a rate channel (Peak/Non-Peak Linehaul and Peak/Non-Peak SIT) if a rate rejection is due to issues with only one of the four rate components. Example: If a TSP receives a Round 1 "Error Code 4" rate rejection for the Peak single factor rate (TSP Intl-Rate/Domestic discount is higher than acceptable high for this Channel and Code of Service), the TSP cannot change the accepted Non-Peak Single Factor Rate for the same channel/code of service in Round 2.  Likewise, if a TSP receives a Round 1 "Error Code 8" for the Peak Linehaul Bid (TSP Intl-Rate/Domestic discount is lower than the acceptable low for this Channel and Code of Service), the TSP cannot change the accepted Non-Peak Linehaul, the Peak SIT, or the Non-Peak SIT bid for the same Channel/Code of Service in Round 2.
• TSPs using the Bulk Rate Filing method must re-submit all accepted bid components (Peak/Non-Peak Linehaul, Peak/Non-Peak SIT, and Peak/Non-Peak Single Factor Rates).  Previously accepted bids will not be replaced/overwritten.  

As a reminder, TSPs will receive an error code indicating that a specific bid component was accepted in the Round 1 rate filing period.

Note: TSPs using Bidlinx or RFQ cannot re-file accepted bid components.

Editor's Note:  This item was posted in the IAM Social Cafe on Thursday morning, January 30. Be sure to check the Social Cafe every day for the latest DOD/Government news.

Source: IAM & SDDC

International TSP Management Update

IAM has been seeking clarification from SDDC on the issue of "Management" of TSPs in the DP3 International Market for well over a year. The January 21, 2014 edition of this newsletter described the discussion that took place on this issue at a meeting held at the Surface Deployment and Distribution Command (SDDC) on January 14 in the following way:

The next question that we addressed, possibly more aggressively than any other topic discussed, was the need for correcting the practice of Management of TSPs in the International Market. We laid out the current landscape in the International Market and how we felt the "Oliver letter" opened the door for entities to think that the management of TSPs in international was a viable option. We said in no uncertain terms we felt this was wrong and that the Command needed to withdraw the Oliver letter and bring the International program back to the status quo immediately. We pushed for a message to go out from the Command ASAP, especially in light of the looming rate filing, clarifying its position. I think Capt Stanley and his staff finally understood this issue but he did say they would have to review the documentation we had provided and would make a determination as soon as they were able.

On Wednesday, January 29 IAM followed up the conversation at SDDC with an e-mail requesting that SDDC issue a retraction of the communication ("Oliver letter") which opened the door to this international TSP management practice. We also reiterated the point that with the 2014 rate filing beginning on February 2, it is urgent that a clarification be issued immediately.

At this point the Command is reviewing all of the documentation they have been provided and is consulting with their legal department. IAM has had numerous written and verbal communications with SDDC on the issue since the January 14 meeting and they have promised to issue a clarification as soon a full review has been completed.

Source: IAM & SDDC

FMCSA Bond Exemption for DOD-Only Freight Forwarders Update

In response to an IAM application to the Federal Motor Carrier Safety Administration (FMCSA) requesting an exemption from FMCSA's recently mandated $75,000 bond requirement for DOD-only Freight Forwarders, a Federal Register Notice (FRN) was issued on December 26, 2013. This FRN provided notice of our application and made a request for public comment.

The comment period closed on January 27, 2014.

IAM would like to thank the members who submitted comments in support of our exemption request.

We would also like to make special note of one comment that we feel will be key to the FMCSA's positive consideration of our application. The Federal Maritime Commission (FMC) submitted a very detailed comment supporting our position that there was already a precedent in place that allowed for a government agency to exempt Transportation Service Providers (TSPs) operating in the DOD arena from licensing, tariff and bonding requirements issued by that agency.

The FMC comments clearly show the history and regulatory environment that led to exemptions currently in place for companies exclusively involved in transporting used military household goods and personal effects.

This link will take you to the FMC comments

Now that the comment period has closed, we await FMCSA's final decision on our exemption request. At this point we have no idea when the FMCSA will rule on our application. IAM is making efforts to determine how long the process will take. We will continue to update the membership as information becomes available.

Source: IAM & FMC

Obama Seeks Highway Bill by Summer

1/29/2014

President Obama told lawmakers he wants them to pass surface and waterway transportation funding bills by the summer and to pay for them by reforming the corporate tax code.
In his State of the Union address Jan. 28, Obama criticized the corporate tax code as being "riddled with wasteful, complicated loopholes" that reward moving jobs out of the country. He wants Congress to close those loopholes.

"We can take the money we save from this transition to tax reform to create jobs rebuilding our roads, upgrading our ports, unclogging our commutes - because in today's global economy, first-class jobs gravitate to first-class infrastructure," he said, adding that lawmakers could protect 3 million jobs if they pass surface transportation and waterways bills by the summer.

Congress passed the MAP-21 highway law in 2012, but it will expire Sept. 30. Lawmakers have started considering a new bill to replace it, in addition to a water infrastructure bill to fund ports, canals and similar assets.

Obama said he would work to streamline the permitting process for infrastructure.

American Trucking Associations welcomed Obama's call for infrastructure development, but found it lacking.

"While we appreciate President Obama making reference to the need for infrastructure investment, we remain disappointed in the continued lack of specificity when he discusses funding," ATA President Bill Graves said in a statement.

"While it is critically important to the nation that Congress and the administration come together on a multiyear highway bill this year, we believe that until the administration puts forward a serious, user-based funding proposal we will risk going over the Highway Trust Fund 'fiscal cliff' in the near term and be woefully underfunded to meet the longer term needs of the nation," he said.

The American Road & Transportation Builders Association also welcomed the infrastructure discussion.

"It is commendable that President Obama once again used his State of the Union address to talk about the need to repair the nation's transportation infrastructure," CEO Pete Ruane said in a statement. "Now we would like to see specific plans about how Congress and president plan to tackle the underlying problem: the need for new, long-term revenues."

The president promoted expanded use of natural gas, which he called "the bridge fuel that can power our economy with less of the carbon pollution that causes climate change."

He said he'd "cut red tape" to get more natural gas fueling stations built, which he said would help move trucks and cars to the fuel.

Obama also said his administration would set new fuel-efficiency standards for heavy-duty trucks "in the coming months ... so we can keep driving down oil imports and what we pay at the pump."

The standards would start in 2019 and build on current efficiency and greenhouse gas emission levels that get stricter from this year to 2017. An administration official said last year that the new standards may regulate trailers in addition to trucks.

Source: Transport Topics

News from the Daycos Weblog

Daycos News - "Tariff Updates"

On December 20, the 2014 400NG and the IT14 tariffs were posted on SDDC's website.  There was no prior indication that there would be many changes to the upcoming year's tariffs, so it came as no surprise that the 2014 versions followed the same trend as last year's tariffs by including relatively minimal updates.

One of the only noted changes to the 2014 400NG was that crates for bulky articles cannot be invoiced to the government.  The tariff was updated to read that 'the crating of bulky articles on Code D shipments is at the discretion of the TSP and no additional cost can be billed to the shipper / government.'

Additional guidance regarding the information needed to support a shuttle service was initially introduced in Change 3 to the 2013 400NG in December and was carried over into the 2014 400NG tariff as well.  While shuttle services have always required pre-approval, the tariff now notes that TSPs should include detailed notes in the pre-approval request covering the circumstances leading to the need for the shuttle, as well as obtaining shipper signatures validating the completion of the service.

The 2014 400NG baseline rates spreadsheet included a 1.57% rate increase from the 2013 rates.  As well, the peak rate tables for Linehaul, Alaska-intra and Alaska waterhaul were removed from the spreadsheet since TSPs will have the ability to file rate discounts for both peak and non-peak timeframes starting in the 2014 rate cycle.

The IT14 tariff saw even fewer changes.  A rate increase of 1.57% was listed for services that occur in CONUS locations, along with Hawaii, Alaska, Puerto Rico, and Guam.  Verbiage was added to the diversion section of the IT14, noting that port handling and storage charges may apply to some shipments, but those charges need to be billed for the actual costs incurred, and not based on tariff rates.  TSPs need to keep in mind that those charges must be supported by a copy of the original invoice from the port agent.

While there were not many updates included in either of the 2014 tariffs, we have only covered the invoicing-related updates.  We encourage you to review the entire tariff to ensure that you are fully aware of the current guidance.

Source: Daycos News - https://blog.daycos.com/

HOS Study Proves Benefits of New Restart Restrictions, FMCSA Say

1/30/2014

A new study found that the restart provision in the Federal Motor Carrier Safety Administration's (FMCSA) current hours-of-service rule is more effective at combating fatigue than the prior hours rule, the agency said.

The "real world, third-party" study, mandated by the MAP-21 transportation law, provided scientific evidence that the restart provision helps "truckers stay well-rested, alert and focused on the road," Transportation Secretary Anthony Foxx said in a Jan. 30 statement.
The hour's rule, which became effective July 1, requires any driver working long enough to need a restart to take off at least 34 consecutive hours that include two periods between 1 a.m. and 5 a.m.

The study found that drivers who began their work week with just one nighttime period of rest, as compared with the two nights in the updated 34-hour restart break, exhibited more lapses of attention, reported greater sleepiness and showed increased lane deviation in the morning, afternoon and at night.

"This new study confirms the science we used to make the hours-of-service rule more effective at preventing crashes that involve sleepy or drowsy truck drivers," FMCSA Administrator Anne Ferro said. "For the small percentage of truckers that average up to 70 hours of work a week, two nights of rest is better for their safety and the safety of everyone on the road."

Source: Transport Topics