MTMC AWARDS OCEAN CARRIERS SERVICE CONTRACTS
The U.S. Military Traffic Management Command has announced its Universal Service Contract 2 program for 2000. Minimum value of the contracts will be $18 million
MTMC, based in Falls Church, Va., which manages the ocean and land transport of military and Defense Department cargo, said it mimimum-guarantee volume contracts will take effect on March and last through Feb. 29, 2001.
'For its specific customer service contracts, MTMC awarded U.S.-flag carriers 23,541 FEUs:
* Army and Air Force Exchange Service (the military’s retail goods provider): Maersk Sealand will handle 1,100 FEUs to Okinawa, Japan; 180 FEUs to other locations in Japan; and 5,980 FEUs to Northern Europe. APL was awarded 1,685 FEUs to South Korea.
MTMC split a 491 FEU Navy Exchange Service contract for the Western Mediterranean between Farrell Lines, which will handle 52 percent of this cargo, and Maersk Sealand will carry the rest.
* Defense Commissary Agency (the military’s provider of grocery items): Maersk Sealand was awarded 1,924 FEUs to Japan, 1,612 FEUs to Okanawa, and 6,968 FEUs to Northern Europe. APL will receive 1,348 FEUs destined for South Korea.
* “Volicity management contracts” (repair parts shipments): APL will carry 778 FEUs to South Korea and Maersk Sealand will handle 875 FEUs to Northern Europe.
For its designated route contracts, MTMC awarded U.S.-flag carriers 14,142 FEUs:
* Designated route contracts: MTMC’s U.S. West Coast/Far East route, 7,577 FEUs. APL will handle 60 percent of that volume, while Maersk Sealand will carry the rest.
The U.S. East and Gulf Coasts/Northern Europe route, 5,620 FEUs. Maersk Sealand will handle 62 percent, with Lykes Lines handling the rest.
'The U.S. East Coast/Western Mediterranean route, 875 FEUs. Maersk Sealand will handle 73 percent and Farrell will carry the rest.
'On the U.S. East Coast/Eastern Mediterranean route, Farrell will carry 286 FEUs, while on the U.S. Gulf Coast/Mediterranean route, Maersk Sealand is guaranteed 20 FEUs.
'MTMC also awarded 57,562 measurement tons of breakbulk to U.S.-flag carriers:
'* On the U.S. East Coast/Northern Europe route, MTMC offered 50,426 measurement tons of breakbulk freight. American Roll-on Roll-off Carrier will handle 83 percent of that volume, with Lykes handling the rest.
'On the U.S. East Coast/Western Mediterranean route, Farrell will handle 5,336 measurement tons of breakbulk for MTMC. Farrell will also carry 1,753 tons on MTMC’s U.S. East Coast/Eastern Mediterranean route.
'Waterman Steamship Corp. was awarded a minimum of 47 tons on MTMC’s U.S. Gulf Coast/Eastern Mediterranean route.
'MTMC said it based its carrier selection on U.S.-flag presence and “best value practices,” such as carrying cargo as booked, handling data through electronic data interchange, and providing cargo tracking and on-time delivery.
'”Our previous contracts were based on lowest cost,” said Len Priber, chief of the international customer service division for MTMC. “That’s no longer acceptable for our needs today.”
'On low-volume routes, such as U.S. East Coast/Central and South America and U.S. West Coast/Australia/New Zealand, all U.S-flag carriers are guaranteed 1 FEU. These are rate-driven services, Priber said.