First Weekly USTC J9 Peak Season Call (30 April)
April 30, 2020
USTC J9 held their first weekly peak season call today. See attached slides.
On slide 2, J9 discussed that from week 12 to date, industry is moving approximately 30% of what was moved last year. Those numbers are getting lower each week, but that appears largely due to DPS instability, changes and adjustments to the Stop Move Order, and DoD members waiting for some clarity on the COVID-19 crisis before scheduling their move. J9 stated they expect more shipments to break free in the coming weeks. And JPPSOs are going to be a little more aggressive engaging service members to get their moves scheduled, so J9 believes there will be a little up tick in the amount of shipments picked up and scheduled.
The pie graph shows we are trending more toward domestic moves over international. The numbers in the upper right do not include DPM shipments, and may include some counseling for NTS if completed in DPS, but DPM and NTS totals are not included in shipment numbers.
On slide 3, J9 mentioned when discussing the Time Out Ratio data, that due to DPS instability, they disabled the “time out” functionality in DPS due to industry concerns over TSPs not being able to accept shipment awards in the required timing.
Side 4, short fuse chart in the lower right corner should have April data included in next week’s slides. The upper left hand corner chart shows a spike in short fuse, likely because of DPS stability problems with getting shipments processed in a timely manner.
Slide 7, Code 2 utilization goal for this upcoming peak season is being boosted to 15% as opposed to 12% last year. And the maximum weight has been bumped from 7,500 lbs to 10,000 lbs. The Army has stated they will look to significantly by-pass the 15% goal.
J9 reiterated that refusals would be allowed for shipments picking up 15 May or later, and will be announced with the Peak Season message that is due out Friday or Monday.
Change 4 advisory is due out “soon”. The increased Transit Time advisory is due out “soon”. The advisory on air freight rates for Code 6/8 shipments is due out “soon”.
For Code 6/8 shipments, TRANSCOM’s Rates Team is prepared to process shipments on a case by case basis. TSPs should process those shipments as requested by PPSOs and seek approval of their pass-through rates through the J9 Rates Team.
Slide 12, this is DoD’s best projection of capacity demand that they can put together. They continue to work it hard to get as much clarity as possible. The note made on this slide is that people need to understand that the capacity requirement will significantly move to the right.
Much talk ensued on what capacity is or might be available to DoD once the Stop Movement Order is lifted, and for how long industry can sustain a larger capacity into the fall, because it looks clear that DoD will significantly move shipments to the right…potentially stretching into Oct – December.
The other large topic of the call was with regard to PP Advisory #20-0081 (TSP Health Protection Protocols). Much concern was expressed. J9 mentioned they are consolidating industry questions and concerns and will publish a Frequently Asked Questions document to provide insight on the many questions posed to J9. They stated they had received over 100 questions. They clarified the cleaning requirement was a wipe down of high touch areas, not a cleaning of the residence. J9 was asked to put what high touch areas include directly on the form that industry is required to provide the customer. They were asked whether the form is required each day over a multiple day servicing of a shipment, and J9 said, yes. DoD is not getting into the details with industry on how they ensure crews are safe/healthy; on what kind of cleaner to use, etc. They are relying on the industry to do what is appropriate.