|278||4/4116 (page 103, Item 33)||Major (Incorrect material that may cause non-concurrence with publication)|
MFTURP should clearly establish carriers rights to charge shippers under exclusive use of dromedary when shippers opt to have their freight take up space that could otherwise be sold in the marketplace.
The Government Freight Conference (GFC) of the American Trucking Associations (ATA) has reviewed, and concurs with, the entry the Roadmaster Group regarding carriers’ ability to charge for exclusive use of dromedary transportation. If the proposed changes at paragraph 4 of Item 33, paragraph 9 of Item 103, and paragraph 3 of Item 105 were to be adopted, TPS carriers bringing unique dromedary capacity to DoD’s core mission would be unduly harmed. Carrying capacity is what motor carriers sell, or “space available.” When a shipper customer demands that their freight “ride alone,” they negate the capacity or space that the carrier would otherwise have available to sell in the marketplace. In the private sector, determining space available is the exclusive domain of the carrier, not the shipper. If the shipper – for whatever reason – wants their freight to “ride alone,” the shipper must compensate the carrier for the loss of the business opportunity represented by the unutilized space/capacity. DoD would never think to tell an airline that its personnel should be able to sit in the middle seat of a row and not charge for the seats on both sides of the traveler. To state the case another way, carriers of any mode invest millions of dollars to create space available to buyers of that space, not to run it empty without compensation. Moreover, to allow the changes would run counter to DoD Commanders’ consistent expression of concern regarding capacity and the motor carrier industry’s ability to surge in support of DoD’s timely ramp-ups to meet mission objectives. Devising rules that compel a carrier to give away space for free is a disincentive to invest in more capacity. Accordingly, the GFC urges SDDC to adopt the reasoned position set forth by the Roadmaster Group.