DOD Says Carriers Must Bill by PowerTrack
Over the protests of some trucking companies, the Defense Department has decreed that motor carriers must sign up with the PowerTrack online rate-payment system by Sept. 30 if they want to haul military freight for the government.
PowerTrack generates its fees by charging carriers 1% to 2% of the amount billed to the shipper, in this case the Defense Department. DoD is not asked to pay shipper charges. When profit margins in trucking are already thin, some carriers claim the price is too steep.
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Using PowerTrack has been an option for motor carriers until now. The notice of mandatory conversion was issued Aug. 24, and the requirement affects all trucking companies doing business with the Military Traffic Management Command.
While most companies transporting for MTMC have adopted PowerTrack over the two years it has been in existence, some trucking operations have complained about its fee structure, which charges carriers rather than shippers for the electronic service.
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