USTC J9 Peak Season Call (25 June)
June 25, 2020
USTC J9 hosted their weekly peak season call with government and industry representatives. The call started out with a review of Peak Season slides.
- Slide 2 of the attached slides shows peak season continuing to build volume. We are in week 26, but the data depicts week 25. Members counseled last week, and shipments awarded are both above the three year average for week 25.
- Slide 3 represents non-temp storage “no capacity” hot spots.
- Slide 4 reflects HHG “no capacity” reporting. Greater details on the capacity reports start on slide 26.
- The no capacity reporting kicked off a discussion about refusals, and J9 calling for TSPs with no capacity to use blackout capabilities instead of refusals. J9 explained that in areas where the majority of TSPs have blacked out, but a small handful of TSPs continue to refuse shipments instead of blackout, it only delays allowing PPSOs to manage getting customers serviced and figuring out how far they have to push their shipment to the right. It was explained by industry reps that TSPs receive feedback from agents that while they might not be able to take a large shipment, they often hold open their capacity to find a smaller shipment that an agent can still service. DoD reps stated they’d prefer TSPs blackout in that case, and allow the PPSOs to use the tools they have (new manual booking process, short fuse, DPM) to get the shipment assigned.
- J9 brought up that this week and next week are currently their most challenging capacity issues to date, even though volume remains low relative to previous years.
- J9 stated they have a Council of Colonels and Captains meeting with the Services later today, and one of the topics will be whether or not to expand short fuse from 5 days to 10 days.
- Slide 8, upper right hand quadrant, depicts a sharp rise in the time out ratio. J9 is hearing potential issues with shipments timing out before they can be awarded or accepted. If TSPs have examples of this issue, please contact the help desk with details so J9 can track the issue and resolve it.
- Code 2 utilization on slide 12 is trending up; as is the Code 2 blackout ratio.
- Refusals are starting to climb; J9 expects it to be higher than last year based on DPS bot improvements; but stressed again the need for TSPs to blackout vice relying on refusals. J9 stated that if as a TSP, you’re getting hundreds of offers on a shipment, it’s a sign you should be blacked out…which will allow the process to move forward as intended.
- Slide 16 is a new slide this season (but shown last year) on the impact of refusals. To J9’s point, it shows that PPSOs are having a harder and harder time awarding the same number of shipments. It also depicts that 80-90% of shipments offered receive an administrative blackout; and when asked J9 said this was similar to last year. But the small percent of refusals can still have a large impact on getting shipments awarded to customers.
- Slide 17 shows the 24 week outlook. J9 again stressed that the shipments are moving, and hoped that industry is gearing up to handle the workload; they stated looks like mid-July could shape up to be the peak of the peak.
- Slide 19 breaks down the shipment forecast by Service, and shows every Service projection greater than 100% of the three year average when looking out to the 24 week projection, when compared to this same point last year.
USTC J9 discussed again that they found some transit times not properly updated in DPS for some lanes. They think there are potentially up to 2,800 shipments impacted; however it appears that some of those shipments wouldn’t be eligible for additional transit days. The issue is fixed moving forward; but shipments already in-transit or awarded prior to the fix may still have to be updated. For those shipments a TSP finds that doesn’t have the transit time updated, TSPs can use the same process to challenge punitive action or an inconvenience claim if they believe it was the result of the improper transit time/RDD.
Industry brought up that slide 22 (Missed RDDs), in the lower right hand quadrant reflects that while domestic and iUB shipments show a lower percentage of missed RDDs than the three year average, international HHG shipments is higher than the three year average; potentially suggesting that the recent transit time updates and overall transit time increases (domestically) last year have helped in the domestic or iUB market, but have missed the mark for international. The general international network complexity, combined with COVID impacts of decreased sailings, less consolidation opportunities, and slowed port operations, is having a larger impact on code 4 shipments than other markets. J9 noted the difference and said they would monitor it moving forward.
It was brought up that Ft Jackson and Ft Stewart have been telling moving crews that the members can waive the requirement for them to wear masks indoors. It was re-iterated on the call that the member cannot waive that requirement; and Army G4 stated they would handle that issue with those installations.
To that end, JPPSO-SC stated they are still seeing issues with face covering compliance both with movers, and with the customer; and they are taking punitive action on the TSP, and calling a halt to shipments when customers won’t comply, until the customer follows the appropriate PPE guidelines.
Discussion on blackouts continued. The Navy wanted to reiterate that they have feedback from Hawaiian agents that there is no capacity for the next 7 weeks in Hawaii, so didn’t understand why everyone wasn’t blacked out so the JPPSO could better manage customer expectations. Two industry members spoke up to say that while the next two weeks are booked, they are still getting Hawaiian agents to give them capacity the third week of July; and one stated they have a Hawaiian agency, and outside of the next two weeks, still have capacity.