Tag Archives: Chassis

ILA concerned about NY/NJ chassis depot rents

Trucking and container chassis again moves into the spotlight. But now it’s how much to pay for the ground the chassis get stored on at the port.  The dislocation caused by ocean lines trying to foist off chassis ownership on truckers continues to hurt US ports.

Chassis provision has played a key role in the port container supply chains since ocean lines divested in 2013.  The issue was a key factor in the West Coast labor dispute at ports, and now is headed eastward.

The whole problem with pools, of chassis or otherwise, is how to allocate the burden of maintaining them, or, put another way, allocate the gains of pooling among the participants. Again it seems, truckers will not be benefiting; these players will fight over fees and split them while truckers will wind up paying in lease rates for whatever adjustments there are.  The ILA is at least bringing attention to the problem.

  Increasingly high rents charged to chassis providers by the Port Authority of New York and New Jersey could hurt the port’s overall competitiveness, says Dennis Daggett, executive vice president of the International Longshoremen’s Association.

Source: ILA concerned about NY/NJ chassis depot rents

Terminals in Ports of L.A., Long Beach move container chassis fee to September 1

Again the container chassis issue creates controversy.  Leasing companies created a ‘pool of pools’ in the LA/Long Beach area but are not paying port operators for services and storage performed on or by the port operators.  The $5 fee on a loaded chassis (whether the container is empty or not) is supposed to cover this work.

It’s another example of how hard it is to get a pool to work well.  Normal ways of compensating participants are not usually fair to all parties; nor do they usually act to keep the pool together.  But here the issue is simply that the pool is skimming profits by benefiting from free work by a non-participant; or we could look at the terminals as a dummy participant that contributes no chassis but pays anyway.

We have a talk on a related aspect at the IAME 2016 annual conference in Hamburg later this month.

LONG BEACH, Calif.–The West Coast MTO Agreement (WCMTOA) has extended the implementation date of a new tariff rule for chassis services by one month.

Source: Terminals in Ports of L.A., Long Beach move chassis rule to September 1 – Canadian Shipper

TRAC Intermodal tests waters for potential sale, IPO

Pretty soon it looks like the US chassis at major ports will be owned by, guess what? An international ocean shipping company!!!  Isn’t that where we started in 2012?  Pity we couldn’t have started with someone who could make sense of the chassis situation.

American Shipper

Source: TRAC Intermodal tests waters for potential sale, IPO | AS Daily Newsletter | AS Daily | American Shipper