Charles G. Wellins, President and COO, FlexiVan

https://www.flexivan.com
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Charles G. Wellins

As the marine chassis segment continues to evolve, 2019 is ushered in with a variety of new influencers accelerating change in the current chassis environment.

We’ve seen shortages in available trucking power, rising fuel and inland transportation costs, fluctuating trade volumes because of the uncertainty of tariffs, and a tight labor market for qualified mechanics. Meanwhile, mega-ships continue to add extra stress on the supply chain, and the demand for interoperable pool chassis keeps growing. FlexiVan has been focused on balancing complex demands and competing needs of key stakeholders at marine and rail terminals. In Los Angeles-Long Beach, chassis returned to different terminals than where they originate (often dictated by carrier alliances) has caused forced repositioning and delays in available capacity for other shippers. Terminals holding idle or excess equipment and shutting out empties further exacerbate the imbalance and impact overall equipment availability. A greater cooperation among stakeholders is imperative to improve service delivery.

Motor carriers, BCOs, and logistics groups are looking at new ways to secure chassis. New rental and leasing models have been emerging in the chassis provisioning arena, with a growing trend for motor carriers and shippers to enter into long-term lease agreements. This model facilitates a dedicated fleet allowing greater control and availability of equipment when needed, while also augmenting pool chassis for peak demand surges.

“Open choice” also remains an attractive option for motor carriers and shippers to negotiate their own deals for merchant haulage moves, outside of restrictions often imposed by ocean carriers. It’s an alternative strongly advocated by the trucking community, allowing for greater control over logistics, productivity, congestion, and cost.