The question is often asked at industry conferences, “Why are we talking about chassis?” The reason is clearly driven by the fact that marine chassis are absolutely critical to the supply chain logistics model and the first/final mile of cargo delivery. The reality of hundreds of thousands of marine chassis scattered throughout the major ports and inland intermodal hubs — with different operating rules, different operational models, and competing interests in each location — contributes to the significant complexity in the North American intermodal container paradigm.
Terminal operators and motor carriers have a mission seeking operating efficiency. So do chassis providers. All the while, ocean carriers are competing for BCO business with pricing that sometimes includes chassis and sometimes not. Pools allowing for so-called “box rules” allow ocean carriers to mandate chassis usage, even when they’re not paying for the chassis. The advent of ocean carrier alliances loading and discharging at various ocean terminals, with containers discharging at one terminal and directed to return at another, introduced even more complexity and significantly higher cost.
The reality is there is no single solution. The key stakeholders in each region have to come together and agree on the best operating model that allows for the operating realities and addresses the corresponding challenges.
In the meantime, we continue to focus on supply, service, and quality of equipment. We continue to advocate for BCOs and motor carriers having the right to negotiate and choose their selected chassis provider, when they are in fact arranging the delivery and paying for it. We continue to supplement cost-effective fleet inventories with upgraded premium and new equipment, including GPS. We continue to develop product solutions that meet the demands of the shipping customer. We continue to engage the key stakeholders in each region to contribute to the ultimate solution.