DOD Household Goods: Increased Carrier Liability for Loss and Damage Warranted

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Report Type	Reports and Testimonies
Report Date	May 8, 1995
Report No.	NSIAD-95-48
Subject	Damages (legal) Department of Defense contractors Freight damage claims Freight transportation Freight transportation rates Household goods Liability (legal) Liability insurance Property damages MTMC Total Quality Assurance Program Claims settlement

Summary:

The Defense Department (DOD) spends more than $700 million each year to move the household goods of military service members and DOD civilian employees. DOD shares liability with carriers for loss and damage to these shipments. During mid-1987, DOD increased carrier liability for domestic household goods shipments, a change that the carrier industry opposed. In March 1993, DOD proposed that carrier liability be similarly increased for international household goods shipments, a change that carriers objected to as well. This report evaluates DOD household goods shipment programs to determine (1) the impact of the 1987 increase in carrier liability on domestic shipments and (2) the level and the type of carrier liability that DOD should adopt for international shipments.

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DOD Household Goods: Increased Carrier Liability for Loss and Damage Warranted