May is “Black Out” notice month for moversBy Eric Anders • May 3rd, 2012 • Category: *RELOCATION NEWS UPDATES*, Defense Personal Property Procurement Program (DP3), Department of Defense/Military, Government Relocation Programs
National Moving Month arrived on Tuesday. For some van line agents, their first official notice of planned booking and pricing restrictions arrived the same day.
This is due to the increase volume of confirmed new order registrations that are already exceeding 2011 tonnage levels all across the country.
While it might be a coincidence that the announcement coincides with the official start of the household goods (HHG) moving industry's peak volume period, these booking guidelines were actually issued almost a week later than last year.
These types of booking restriction announcements are a common occurrence among responsible service providers in the full-service moving industry.
Historically management at the national level communicate these self-imposed tonnage embargoes to their agency networks, sales associates, and loyal repeat customers when they begin to notice a rapid build-up of new business in certain geographic areas within their own local or long distance moving company, national van line system, or affiliated independent moving and storage network.
These types of 'new business' restrictions are normal within intra- and interstate transportation environments which typically rely on a limited (and still shrinking) number of qualified professional van operators and licensed household goods trucks and equipment during the moving industry's peak volume period.
Most families in North America try to schedule their relocation plans for the period between May and August when kids are out of school.
According to information shared at this year's sales conventions and education expos, most trade association experts and relocation professionals expect a dramatic reduction in normal moving industry capacity in 2012 due to the long-term effects that attrition has taken on independent owner-operators and smaller motor carriers as a result of the economic recession and real estate meltdown.
With fewer professional drivers and qualified over-the-road trucks available to handle what is expected to be a double-digit increase in individual, government, and corporate demand, the booking restrictions and pricing adjustments being announced this week are the first of many that will likely extend throughout the summer.
And we all know what happens once the first domino falls …
“Ladies and Gentlemen, start your Dominos”
Just like in the past, it appears the unsuspecting customers who will be most affected by these types of early booking cut-offs are the hundreds of thousands of inexperienced military service members, civilian government employees, and their respective families who can only plan their domestic and international permanent-change-of station (PCS) transfers themselves after receiving their new personal Department of Defense (DOD) from their respective military command.
Although the DOD is the moving industry's largest customer, the automated, internet based self-counseling household goods procurement process recently introduced by the military's Surface Deployment Distribution Command (SDDC) has experienced a number of well-document internal and external problems among both PCSing military transferees and the transportation service providers (TSP) who are supposed to move them.
Normally these new pricing guideline announcements create cascading booking restrictions throughout the HHG moving industry that will undoubtedly affect any transferee moving under SDDC's low rate Defense Personal Property Program, DP3, again this summer.
Get Ready! May is National Moving Month – RELO Roundtable
I’m so confused! How do I find a mover NOW? – RELO Roundtable
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