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July 2025 President’s Column
President's Comments
By: Steve Weitekamp |
More than a few measured voices are speaking to the current issues with US TransCom and the need for the industry to represent itself as a partner, assisting the Command with solutions to its self-induced crisis. I appreciate the potential benefits of being there to pick up the pieces. However, let me address the elephant in the room, an issue that US TransCom has yet to discuss publicly. Thanks, do not pay the rent! Every call, following the failure of the Global Household Goods (GHC) program, includes many verbal thanks but not a single word on correcting some of the significant government missteps that led to the program's collapse.
During a recent call, an industry participant shared that Transcom had pushed rates to an unsustainable level in an attempt to align the current program pricing with the GHC (Statement made by Command). This has drastically injured the industry. A 15-20% decrease in weight hauled in 2025 and a 15-18% decrease in revenue is not a successful formula. This is strangling not only agencies, but it is also causing drivers harm. One could reasonably assume that the Government would have at least one comment, but their only comment is that this is not the correct forum to discuss such issues.
Another comment, and I want to share these because some in social media follow a narrative that those who have long spoken up for the entire industry are just sitting on their hands or working for some self-serving end. The industry asked, “Is US TransCom planning to help agents in any way mitigate the rate reasonableness issues that were raised earlier in the year? When General Reed was on the Hill, he mentioned that US TransCom was going to reduce rates for this peak season. I’m thankful for compliments on what the industry has been able to do, but compensation for the work is depressed. When agents have to file their financial statements at the end of the year, there’s going to be an impact due to the rates they are operating under. Will there be a mechanism in place to ensure that money reaches the curb? The industry is living on borrowed time.
Just a reminder for US TransCom, the health of the moving industry in peak determines the capacity for the next peak. They are directly related; the longer the delay in workable economics, the greater the impact on the industry's ability to provide the necessary capacity for the next peak and beyond. If nothing is done as soon as possible, we will see a continued deterioration of contractors and more agents closing after the peak season. When the economy begins to improve and residential and corporate moves return, the remaining balance of capacity will be dedicated to those business lines. |
