I’ve had several inquiries from our agents asking what they should do regarding signing with Homesafe Alliance (HSA) to participate in the Global Household Goods Contract. I can’t, and won’t, tell you to sign or not to sign. That is a decision you must make based on your circumstances.
If you sign with HSA, you can perform O/A, D/A, and intrastate work with them. However, until National Van Lines signs an agreement with HSA, GHC shipments cannot be hauled under National Van Lines’s authority.
When deciding whether to sign up, I encourage you to do your homework:
- Be sure that you and your attorney carefully review the Master Service Agreement (MSA), which contains specific provisions about the liability you will assume when handling these shipments. Some of the terms differ from “standard” agreements, and it is important that you fully understand the terms of the contract.
- Develop a bottom-up costing model to fully understand your agency’s economics and what you require to be profitable for any service you offer. Include all overhead—equipment, insurance, warehouse, etc. You’ll need this analysis to determine if the compensation terms of the contract are sufficient.
- Understand how the Service Contract Act (SCA) applies to your local crews and drivers. As stated in my previous communication, the industry is trying to work with the Department of Labor to provide specific information so that agents can conform. Please refer to my earlier message, sent on 3.18.24, regarding the challenges of understanding the SCA and how it will apply.
Please let me know if you have any additional questions.
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