Some truckers who haul for the Department of Defense are raising objections to a billing plan that could force them to give up from 1% to 2% of freight charges in order to get paid.
An agreement is expected to be announced this week between DOD and the U.S. Bank of Minneapolis to institute a new electronic freight payment system, called PowerTrack.
The new procedure is designed to speed payments by eliminating much of the paperwork associated with the delivery of munitions and other goods to military facilities across the United States.
However, carriers say the plan is the latest in a series of new policies that are making it increasingly difficult and costly to do business with DOD, which spends an estimated $4 billion a year on transportation.
In response to their concerns, American Trucking Associations President Walter B. McCormick Jr. has invited member carriers to meet at the organization’s headquarters in Alexandria, Va. Those at the March 24 discussion will attempt to develop a common approach for dealing with DOD officials.
Among the problems carriers cited about doing business with the defense agency are:
Closing of military bases on Fridays, forcing carriers to store shipments in transit without compensation.
Dictating terms and conditions for service without consultation.
Demanding one-year rate guarantees with no commitment by the government on the number of shipments.
Failing to resolve disputes and ignoring complaints from carriers.
Adopting a policy of “best value contracting,” but not defining any non-price criteria for the purchase of transportation services.
Advocating the use of rail, but not holding railroads to the same security standards as truck shipments.
For the full story, see the March 8 print edition of Transport Topics. Subscribe today.
