In response to the rising cost of lumber and materials, USTRANSCOM (USTC) and Department of State (DOS) have released advisories and a notice, respectively, to assist in offsetting these increased costs.
Below is a summation each category. This post will be updated if and when additional information is provided from these organizations.
DoD HHG Shipments Updates:
The increases are effective on shipments with a requested pickup date of 05/15/21 through 9/30/21.
Update: On December 17, 2021, USTC issued an advisory that extended these policies to include shipments booked with a requested pickup date through 5/31/2022.
- Crating –The rate for crating (Item 105B) was increased in the 400NG Baseline Rates Change 1 from $23.71 to $35.57 or by $11.86. Pre-approvals are still required for crating.
- Packing – The rate was also increased for packing (Item 105A) in the Baseline Rates Change 1. The packing rate has been updated by $3.30 across all service schedules and weight brackets, however, that increase is prior to the discount being applied.
- Liftvan Surcharge –A liftvan surcharge is applicable on all Code 2 and all Code D/2 shipments to/from Alaska. The surcharge allows the TSP to bill $10 per CWT using the miscellaneous Item Code (Item 226A). When billed, the charge must include an exact line note stating: Liftvan surcharge $10X75cwt=$750.
- Crating –The increase for crating is being applied in the IT for only external crates (Item 508C). There is no mention in the advisory of an increase for internal crates (Item 508B). The advisory does not note the increased amount, and as of this communication, a change to the IT Tariff noting the increase has not been posted by USTC. During the peak season call this morning, however, USTC shared that the external crate rate was being increased from $9.83 to $10.81.
- Packing surcharge – A packing surcharge is billable on all International Codes of Service. The surcharge of $2.00 per CWT may be billed using the miscellaneous Item Code (Item 533A). When billed, the charge must include an exact line note stating: Packing surcharge $2X75cwt=$150.
- Liftvan surcharge –A liftvan surcharge is applicable for Code 4, 6, and T shipments. The surcharge allows the TSP to bill $10 per CWT using the miscellaneous Item Code (Item 533A). When billed, the charge must include an exact line note stating: Liftvan surcharge $10X75cwt=$750.
- If both the packing and liftvan surcharge apply to one shipment, the surcharges need to be submitted as one consolidated charge. A billing line note indicating the amount of each surcharge should be included. An example is: Liftvan surcharge $10x75cwt=$750 and Packing surcharge $2x75cwt=$150. Total combined surcharge $900.
In the event that a shipment is reweighed with a lower weight, the TSP is to adjust and refund the surcharge to reflect the lower weight.
The advisory notes that the rate increases do not apply to local moves, Direct Procured Moves (DPM), NTS Retrograde shipments, or One-Time-Only (OTO) shipments.
US Department of State (DOS) Shipment Updates
DOS has released notice they have authorized a lumber surcharge that will apply on all ITGBL HHE shipments to help offset the rising costs of lumber used for shipping. The surcharge of $12 per hundredweight (cwt) is a billable on all shipments with a pickup date of May 1, 2021 through October 31, 2021. Approval to bill the surcharge must be listed on the workorder (WO) prior to billing.
Update: The DOS surcharge remains set to conclude on shipments booked with a pickup date of October 31, 2021. At that time, new rates/tariff will go into effect, allowing the TSPs to have adjusted for the increased price of lumber in their filed rates.