Household Goods

Adjustment of DOD's Shipping Rates Based on Foreign Currency Fluctuation Gao ID: NSIAD-88-154 June 30, 1988

In response to a congressional request, GAO reviewed the Military Traffic Management Command's (MTMC) termination of its foreign currency rate adjustment program, which allowed shippers transporting Department of Defense (DOD) household goods to adjust their rates to compensate for fluctuations in foreign exchange rates.

GAO found that there was no overriding reason for MTMC to reinstitute the program, since: (1) the termination properly transferred the inherent risk in exchange from DOD to the shipping industry; (2) during the 2 years following program termination, the shipping industry offered rates comparable to those it offered when the program was in effect; and (3) it could not verify the reason for the increases and decreases in shippers' rates or determine if termination of the program caused the rates to change.



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