MTMC ESTIMATES $17 MILLION SAVINGS IN NEW OCEAN CARRIER CONTRACT
The U.S. Military Traffic Management Command, the surface transportation logistics unit for the armed forces, said its ocean carrier service contract for 2001-2002 will save the agency as much as $17 million.
“This is smaller, simpler and easier to use,” said Len Priber, chief of international customer service division for MTMC’s Joint Traffic Management Office. “This contract also represents a tremendous savings for the taxpayer.”
MTMC awarded its contract — Universal Services Contract 03 — to the carrier industry in mid-July. The contract, valued at over $325 million, begins Sept. 1 and covers containerized and breakbulk shipments to over 130 countries.
The one-year contract covers the movement of about 100,000 containers and 300,000 measurement tons of breakbulk.
The contract awards volume movements to 14 carriers. U.S.-flag carriers participating in the contract are APL, Maersk Sealand, Lykes Lines, Farrell Lines (P&O Nedlloyd), Central Gulf Lines, and American Roll-on Roll-off Carriers. Two other U.S. flag carriers are listed on the contract, but without minimum volumes: Waterman Steamship Corp. and Matson Navigation Co.
For more details about the contract and the behind-the-scenes processes that shaped it, refer to the August issue of American Shipper, pages 8-10, or view it online at AmericanShipper.com.