Government Could Save Millions by Clarifying Defense Transportation Regulations

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Wed May 27, 2009 9:30am EDT

chris Alf, co-founder of National Air Cargo, comments on Duncan Hunter Act

BUFFALO, N.Y., May 27 /PRNewswire/ -- Chris Alf, co-founder of freight
forwarder National Air Cargo, heralded the passing and signing of the Duncan
Hunter National Defense Authorization Act (NDAA) as a victory for military
vendors, personnel, and taxpayers back in October 2008. According to Chris
Alf, Section 355 of the law was meant to make changes to regulations that had
been causing inefficiency, resulting in the potential waste of government
funds. However, to date only two adjustments have been made to the regulations
in question.

In addition to National Air Cargo, also active in the campaign to get the
original law passed was the Air Forwarders Association, American Trucking
Association, and multiple independent freight forwarders.  The industry had
always believed that the AFTRP 5 requirements to move cargo by air only
applied to air carriers and not freight forwarders.  Freight forwarders had
always operated in a mode-neutral fashion.  

Brandon Fried, Executive Director of the Air Forwarders Association stated
"The inconsistencies in the Department of Defense and the Air Mobility Command
Freight Traffic Rules Publication 5 (AFTRP 5) regulations result in vendor
inefficiency.  In many cases government contractors are mandated to ship cargo
by air when it would cost the government and vendor substantially less to ship
the cargo by truck."    

For example, Chairman Solomon Ortiz and Ranking Member Jo Ann Davis in a July
20, 2007 letter to the Under Secretary Office of Defense for Acquisition,
Technology and Logistics stated "Air Mobility Command's non-conforming
regulation appears to cause inefficient business practices and a substantial
waste of Department of Defense funds..." The letter continues "In an
example... the AFTRP requirement nearly doubled the costs for one shipper
moving freight... [which] resulted in an additional cost to the government of
$173,140... this amounts to approximately $250,000 in additional annualized
costs to the taxpayer for this one DOD shipper."

Chris Alf stated recently that "At this point, if the government forced all
freight forwarders to operate by the previous wording in AFTRP 5, they would
be paying millions of dollars more in shipping costs."  

Chris Alf continued "I was overjoyed when the legislation was passed back in
October. The changes to the regulations allow for government shippers to
utilize commercial best practice, which is more cost-effective and allows
commercial vendors to charge lower fees. Our troops deserve the most efficient
shipment of supplies - medical, combat, and otherwise - so that funds are
spent effectively on US conflicts."

National Air Cargo was founded by Chris Alf along with his wife Lori Alf, and
continues to contract with the government for the delivery of cargo for the
Department of Defense. National Air Cargo's web site is
www.nationalaircargo.com. 

SOURCE  National Air Cargo

Samantha Stark, Rubenstein Public Relations, +1-212-843-8001,
sstark@rubensteinpr.com
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