94-7414. Trip Leasing Procedures for DOD Freight

[Federal Register Volume 59, Number 60 (Tuesday, March 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7414]


[[Page Unknown]]

[Federal Register: March 29, 1994]


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DEPARTMENT OF DEFENSE
Department of the Army

 

Trip Leasing Procedures for DOD Freight

AGENCY: Military Traffic Management Command, DOD.

ACTION: Notice.

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SUMMARY: MTMC is changing its trip leasing procedures for DOD freight 
established in November 1988. MTMC's new rule will limit trip leasing 
of DOD shipments to DOD approved carriers.

EFFECTIVE DATE: This change is effective April 28, 1994.

ADDRESSES: Military Traffic Management Command, 5611 Columbia Pike, 
Falls Church, VA 22041-5050.

FOR FURTHER INFORMATION CONTACT:
Ms. Shirley Stachkunas, [phone].

SUPPLEMENTARY INFORMATION: MTMC published notice of proposed revision 
to its trip lease rules in the Federal Register on October 20, 1993 (58 
FR 201). Comments were received from 21 freight motor-common carriers, 
5 carrier's representatives and the National Motor Freight Traffic 
Association. Comments were both in favor of, and against the proposal. 
Comments against the proposal suggested that it would restrict 
competition and increase Government costs; increase carrier costs; 
favor large carriers; eliminate efficiencies of the current system; 
prohibit use of carriers that have proven themselves reliable; increase 
service failures; decrease the pool of carriers needed to provide surge 
capability; and fail to increase MTMC's control over shipments. 
Comments supporting the proposal suggested that it would increase 
security over DOD shipments; reduce the risk of loss and damage; reduce 
transit times; eliminate administrative burden; reduce publication of 
frivolous rates; eliminate the need to monitor lease documentation; 
improve in transit visibility; put all carriers on an equal footing 
subject to the same rules; and increase understanding and 
enforceability of MTMC's Carrier Qualification Program (CQP).
    MTMC considered all comments carefully and has decided to implement 
the proposed change in its trip lease rules for the following reasons:
    Requiring carriers to trip lease only between DOD-approved carriers 
ensures that carriers will operate under the same rules, procedures, 
and qualification requirements. All large competitors, large and small, 
will be required to meet the same qualification criteria. 
Administrative cost and enforcement expenses will be reduced since MTMC 
will not be required to approve carriers to trip lease and maintain 
separate files on those carriers. The security, service, and in transit 
visibility of DOD shipments will be increased.
    Carriers will still be subject to the trip leasing requirements set 
forth in 49 Code of Federal Regulations (CFR) Part 1057 and both lessor 
and lessee carriers will bear the burden of regulatory compliance.
    Under this new rule, carriers will only be allowed to trip lease 
with carriers approved to handle DOD freight. Carriers will no longer 
be required to get approval from MTMC to trip lease. This will reduce 
the administrative burden on carriers as they will only be required to 
be approved under the MTMC CQP in order to trip lease with other DOD 
approved carriers.
    For the reasons set forth in the preamble, the MTMC Freight Traffic 
Rules Publication No. 1A, item 230 is changed as follows:
    Carriers desiring to trip lease will only do so with other 
Department of Defense (DOD) approved carriers. The requirements of 49 
CFR part 1057 will be followed as applicable. Failure to comply with 
the regulatory requirements can result in nonuse or disqualification by 
MTMC.
Kenneth L. Denton,
Army Federal Register Liaison Officer.
[FR Doc. 94-7414 Filed 3-28-94; 8:45 am]
BILLING CODE 3710-08-M