A Message from Chief Operating Officer and Senior V.P. of Military Services - Matt Dolan

DPS Continues to Challenge

    The second peak season of military is still going strong, but the end is in sight.  We have booked close to 3,500 shipments since May 15^th, and should perform over 5,000 domestic shipments by September 15^th of this year.  The DPS program continues to challenge Arpin and the industry, but this year saw many more positives.

    Last season, we had a deluge of shipments on one day and there were few if any blackouts in the system.  Shipments came from everywhere and we struggled to handle them all.  Many agents we had never worked with before were called upon to provide services.  This year, Arpin was much more proactive in shaping to those lanes where we could count on agents and drivers.  SDDC had promised better blackout capability, and that has not happened.  It is far from a pure system, and we make daily judgments to try our best to not over book out of certain areas, and overall, this year was much better.  We did receive too many shipments out of the North East, Georgia, and Missouri, but it was much more controlled than last year.

           
    There is no doubt that rates in DP3 are less profitable than TOPS.  While that is true, we have booked many shipments during this peak season at more favorable rates for drivers and agents.  Hauling capacity is the biggest challenge.  As we deal with DP3, we need to find ways to make hauling more profitable, and it has been this summer.  We will continue to find ways to get better rates while bringing the work in the door.

           

    As always, quality is the key.  Our scores this summer are running over 2 points above last summer.  This bodes well for winter tonnage, and should allow us to continue to raise rates going forward.

Matt Dolan

Chief Operating Officer & Senior V.P. of Military Services