Overseas moving companies face tighter MTMC standards
Financial and legal requirements required of overseas carriers have been increased.
The changes were announced by the Military Traffic Management Command in letters to overseas carriers qualified to carry service members' personal property. MTMC is responsible for the move of an average of 646,000 service members annually.
Carriers who do not meet the requirements are subject to a suspension in military business, said Lt. Col. Nonie Cabana, MTMC's deputy chief of staff for passenger and personal property.
The certified letter, dated Oct. 2, went to 166 overseas carriers.
In addition, some 200 letters were distributed Oct. 3 to overseas carriers at the annual conference of the Household Goods Forwarders Association of America, in Anchorage, Alaska.
The carriers receiving the letter include foreign movers and U.S. companies involved in overseas shipments, said Cabana. Technically, the firms are identified as International Through Government Bill of Lading carriers.
In the past 18 months, numerous carriers have gone out-of-business overseas, said Cabana.
"This results in carriers not paying their agents, who in turn, hold shipments hostage because they have not been paid," said Cabana.
"This places unwarranted, unethical and unacceptable hardships on property owners who become the victims of carriers who do not pay their bills."
In future hostage situations, Cabana said he expects other moving companies to support Department of Defense service members by refusing to do business with firms taking such actions.
Carriers notified have 30 days to meet the following requirements:
· An updated certified financial statement signed by a company official listed on the carrier's Tender of Service Signature Sheet.
· Acknowledgement that a firm - and their agents and subcontractors -- agrees to abide by appropriate United States law (37 U.S.C. 406 (l) ) which prohibits liens on Department of Defense-sponsored household goods shipments.
Hostage shipments and delays in receipt of their personal property are unacceptable for American service members, said Cabana.
"This is very frustrating to our customers who comprise the largest market share of this industry," said Cabana.
Moving companies who fail to meet these standards will be subject to immediate administrative worldwide nonuse pending Carrier Review Board action.
Carriers with questions on the new requirements can contact Jim Johnson, chief, business integration division at (703) 428-3048. (FROM MILITARY TRAFFIC MANAGEMENT COMMAND PUBLIC AFFAIRS).
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