MTMC should try different OTO approach - Industry challenge - Military Traffic Management Command - one-time-only contracts - Brief Article

Translog: Journal of Military Transportation Management, July-August, 2001

Hurdle by hurdle, the Military Traffic Management Command has been reducing the time required to process one-time-only contracts.

What once took an average of over 35 days is now routinely below 10 days--and headed for under five days.

One-time-only cargoes are those which do not fall under regular liner contracts. Many of these cargoes involve over-size freight or transportation to a remote location.

However, an ocean shipping representative says MTMC is going about trying to move these cargoes in the wrong direction.

Attack it in a different way, suggests Mike Garvin, Director, Government Services, Matson Navigation Co., Inc.

"Encourage partners to take over that part of the business" said Garvin on April 3 at the MTMC 2001 Training Symposium, in Dallas.

Garvin was at a session that included MTMC briefings on both one-time-only cargoes and the pending Universal Services Contract #03.

In 2000, MTMC had 1,386 one-time-only contracts valued at $25.5 million, said Lt. Col. Kathleen Pedersen, of the Joint Traffic Management Office. These cargoes seemed to peak in late spring and summer.

Ninety percent of these cargoes are now processed in 10 days or less, said Pedersen. Five-day processing is the goal, added Pedersen.

Garvin suggested another approach.

"Your goal should be to reduce one-time-only contracts from 1,400 to 500, or to 400, or to zero," said Garvin.

How do you do that?

Add a percentage of the one-time-only cargoes to the Universal Services Contract, he said.

"Reduce the need for one-time-only contracts with more line items," said Garvin. "Let the carriers (in the Universal Services Contract) know you can get this cargo, but you have to participate in some percentage of the (one-time-only) cargo.

"So, it's not all gravy."

Garvin said that the Universal Services Contract is a platform that MTMC contract developers can expand to include most, or all, of the one-time-only cargoes. He suggested contract language that is not "overly specific."

"It is a way to get there," said Garvin.

Transporter Robert Dawson, of the Joint Traffic Management Office, called Garvin's thoughts "a good idea."

Dawson, who briefed the status of the Universal Shipping Contract #03, cautioned that many of the one-time-only requirements are for remote regions with little maritime traffic.

"We don't always know where cargo is going," said Garvin.