Military Cargo Routing:
Allocation of Port Handling Costs
NSIAD-88-148: Published: Apr 27, 1988. Publicly Released: Jun 1, 1988.
- Full Report:
In response to a congressional request, GAO investigated an ocean carrier's allegations that the Military Traffic Management Command (MTMC) improperly allocated port handling costs to determine the: (1) appropriateness of the cost allocations; and (2) administrative roles of MTMC and the Military Sealift Command (MSC) in shipping agreements.
GAO found that: (1) MTMC properly considered only incremental port handling costs and not the full cost of using a government-owned military terminal in determining the lowest-cost routing for moving cargo, since there was no legal requirement to the contrary; and (2) since 1981, MTMC has been responsible for administering sealift cargo booking and contract administration, while MSC continues as sealift operator and procuring agent.