MTMC INTENDS LINER SERVICE CONTRACT EXTENSION
The U.S. military’s surface transportation logistics unit intends to extend its current annual liner service contract with the U.S.-flag ocean carriers another six months, starting Sept. 1.
The Military Traffic Management Command’s Office of Principal Assistance, responsible for contracting, said the extra time was needed to refine program requirements of its annual liner service contract.
“We’re looking to further streamline possibilities in the areas of proposal submissions from the carriers and further streamline the contract’s rate structure,” said Craig Robinson, contracting officer at MTMC, based in Alexandria, Va.
MTMC’s liner service contract, Universal Service Contract No. 3 (USCO3), is the largest contract for container transport in the Defense Department. The $325-million contract, scheduled to run from Sept. 1, 2001 to August 30, involves the movement of more than 100,000 containers and 300,000 measurement tons to 130 countries.
Under USCO3, seven U.S.-flag carriers are guaranteed cargo on major routes and from various Defense Department shippers. The carriers include APL, Maersk Line, Lykes Lines, Farrell Lines (P&O Nedlloyd), Central Gulf Lines, and American Roll-on Roll-off Carrier.
Two other U.S.-flag carriers, Waterman Steamship Corp. and Matson Navigation Co., are included in the contract but without minimum freight volume guarantees.
There are also half-dozen foreign-flag carriers included in USCO3. They are Hamburg Sud’s Crowley, Polynesian Lines, Toho Shipping, Samskip, PM&O Navigation, and P&O North Sea Ferry. With the exception of P&O North Sea Ferry, there are also no guaranteed minimum freight volumes for these carriers.
The half-year extension of USCO3 is expected to cover about 50,000 containers and 150,000 measurement tons, valued at $162.5 million.