New Military Rates to start in May
Starting mid-may, the personal property movement of military personnel would undergo certain new changes including the rate. The base rate has come down to 1.552919439% after adjusting to the annual inflation rate. The shipments between the mainland and Alaska are expected to take place over water or through Canada. However, the new rate indicates that they are going to be priced equivalent to shipments over water through Tacoma.
On the other hand, the rate for the water part of the shipment from Tacoma to Alaska would be brought down by 17%. However, the rate for the land part of the movements has not been affected. There is a new formula for the bunker fuel surcharge. It would calculate the percentage of the overall bunker surcharge assigned for each shipment and it would depend on that shipmentâs weight.
The new changes bring down the main fuel surcharge. While the old surcharge used to increase by 1% for each 10 cents starting from $2.50, the new limit is for every 13 cents, with everything else remaining the same. Therefore, now it would grow slowly and thus reduce the overall fuel surcharge.
The good thing for AMSA members is that the DoD is making only small changes to the military fuel surcharges and that there is not going to be any outsourcing of their residential goods program. A new formula for calculating fuel surcharge indicates that that the reimbursements are going to remain stable or they would drop by just a minor amount. This is evident in the memo that Commander of Surface Deployment and Distribution Command, Maj. Gen. Thomas Richardson has sent to AMSA. According to the memo, the baseline for the calculation of the surcharge is going to be $2.50, without any changes.
AMSA had disputed the earlier proposals that were designed for reducing the surcharge but increased the baseline. It would have caused loss to owner-operators who need to pay for fuel and get the surcharge.
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