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DOCUMENT RESUME
07622 - [C27879101 (Restricted)
(Negotiation of Freight Rates by the Department of Defense].
LCD-77-231. September 29, 1978. 4 pp.
Report to Maj. Gen. H. R. Del Mar, Commander, Department of
Defense: Military Traffic Management Comnand; by Henry 3.
Connor, Associate Director, Logistics and Communications Div.
Contact: Logistics and Communications Div.
Organization Concerned: Department of Defense.
A review was conducted of the Department of Defense's
(DOD's) procedures and practices with regard to the negotiation
of freight rates to determine if negotiations are conducted in
the most efficient manner and result in the lowest rates
obtainable for moving DOD cargo. Duplication of effort between
headquarters and area commands was found on acticns involving
volume shipments, and shipping offices were generally not
providing the Military Traffic Management Command (MTMC) with
the required 30-day advance notice of shipment. MTMC analysts
qenerally used existing rates on analagous commodities and
prevailing rates on other shipping patterns as the basis for
negotiations without considering either rates available by using
other forms of transportation or making a comparison of the
carrier's costs and revenues. Improvements in procedures would
help MTMC to avoid some administrative costs and obtain more
favorable consideration by carriers of its rates proposals.
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