More than $20 million in shipments may have been improperly awarded, says ATA
WASHINGTON — The American Trucking Associations (ATA) is calling on the Pentagon to take a closer look at how military freight is awarded, citing concerns that unqualified providers, opaque contracting practices and weak oversight could put the nation’s defense supply chain at risk.
In a letter sent to Secretary of War Pete Hegseth on Aug. 27, Henry Hanscom, ATA’s chief advocacy and public affairs officer, urged the Department of Defense (DOD) to ensure that sensitive, taxpayer-funded shipments are handled only by properly vetted, qualified and compliant motor carriers.
The concerns are based in part on information ATA members have provided to U.S. Army Transportation Command.
Among the issues identified by carriers are that military shipments have been awarded to providers that allegedly:
- Lacked valid USDOT operating authority or required insurance;
- Appeared unable to meet basic shipment requirements; or
- Had little to no apparent asset capacity.
Carriers also identified instances in which shipments appeared to have been awarded outside normal competitive processes or manually routed around the Global Freight Management system.
$20 million in questioned shipments
The numbers from one ATA member review are particularly striking:
A review of activity at 12 locations over a 90-day period in 2024 identified more than $20 million in shipments that members believe may have been improperly awarded. Approximately 80% of the shipments reviewed appeared to have been mishandled or awarded in a manner inconsistent with longstanding Department policy, according to ATA.
ATA members have raised additional concerns about military freight being awarded at rates substantially higher than those offered by compliant, asset-based carriers.
Some of those awards, the association said, involved service providers affiliated with individuals previously convicted of federal fraud and public corruption offenses.
“Military readiness depends on a secure and reliable transportation network,” Hanscom said. “When military freight is awarded to providers that lack proper authority, insurance, equipment or compliance capabilities, the consequences extend far beyond contracting inefficiencies.”
Such practices create risks for “sensitive cargo, service members, the traveling public and taxpayers,” he said.
ATA wants stronger requirements
ATA is urging the DOD to build on trucking enforcement efforts already underway at the U.S. Department of Transportation and the U.S. Department of Homeland Security.
Among ATA’s recommendations is requiring military freight providers to maintain appropriate operating authority, insurance, safety compliance and transportation capabilities.
The association also expressed support for provisions in the Fiscal Year 2026 National Defense Authorization Act designed to strengthen compliance, improve reporting of potential violations, clarify accountability mechanisms, audit the Freight Carrier Registration Program and require an Inspector General review.
“At a time when American forces are deployed across active operational theaters around the world, the security and resilience of our military freight network cannot be taken for granted,” Hanscom said.
The issue goes beyond the trucking companies competing for military freight, Hanscom said. ATA argues that the integrity of the transportation network is directly connected to military readiness — and that taxpayer-funded freight should be awarded through a process that is both competitive and secure.
“ATA is not simply identifying a problem. We are offering to help solve it,” Hanscom said. “Our members stand ready to work with Secretary Hegseth and his team to improve oversight, close loopholes and restore confidence in the military freight transportation system.”
A copy of the letter can be read here.
Linda Garner-Bunch has been with The Trucker since 2020, picking up the reins as managing editor in 2022. Linda has nearly 40 years of experience in the publishing industry, covering topics from the trucking and automotive industry to employment, real estate, home decor, crafts, cooking, weddings, high school sports — you name it, she’s written about it. She is also an experienced photographer, designer and copy editor who has a heartfelt love for the trucking industry, from the driver’s seat to the C-suite.
