DOD Will Not Drop Billing Plan
At a symposium in Denver last week, officials from the Military Traffic Management Command told carriers that participation in U.S. Bank’s PowerTrack billing system will be mandatory on all future military hauling contracts.
A DOD spokeswoman said the new billing procedure is expected to speed up payments — paying carriers in three days vs. 60 days or more — and could eventually eliminate all Government Bill of Lading forms.
Some motor carriers argue, however, that they should not be forced to pay a fee to U.S. Bank for hauling military freight (3-8, p. 1).
“MTMC promises participating carriers a three-day payment schedule, but the procedures set forth by the agency indicate that actual payments could take 30 days or more,” said ATA Deputy General Counsel Kenneth Siegel.
“In addition, many carriers already have made investments in an electronic funds transfer plan offered by MTMC in which payments are made in five days at no additional cost to the carriers,” he said.
In a letter to Gen. Charles T. Robertson Jr., commander of the U.S. Transportation Command at Scott Air Force Base in Illinois, ATA President Walter B. McCormick Jr. offered to broker an agreement similar to those in place for the airline and ocean shipping industries.
“I see this as an opportunity for motor carriers to help TRANSCOM develop programs and procedures to meet its transportation needs in both peacetime and in conflict situations,” McCormick said.
Representatives of U.S. Bank defended the PowerTrack program, and some carriers that have participated in the program’s start-up say it has many advantages over the current system.
“It’s no different than a fuel card,” said Rick Langer, vice president of business development for U.S. Bank.
For the full story, see the April 5 print edition of Transport Topics. Subscribe today.
