The result has been that many smaller truckers are simply being forced out of business. At the same time, marketplaces will have to be more flexible and willing to diversify. The logistics industry must deal with the chassis issue as both
According to a 2022 report from Repairer Driven News, The biggest remaining issue is fluctuation in volume that truck drivers cant match. Given the increased regulatory scrutiny of chassis, the cost of chassis maintenance and the enormous investment required to own a pool of rental chassis worldwide, many ocean carriers have begun to get out of the chassis rental business altogether. A truck pulling a chassis pulls up, the container is loaded
Current chassis manufacturing backlogs are now extended through 2Q22. The US has effectively halted chassis imports from China. It has only exacerbated the problem. Along with them are the chassis. A chassis in freight and logistics terms refers to a rubber-tired trailer under-frame on which a container is mounted for street or highway transport. Pool of Pools, a platform that records the movement of roughly 80,000 chassis across the ports of LA and Long Beach, has found that the number of chassis moving in and out of the ports fell 23% between March and August this year. The chaos crippling America's supply chain has many obvious culprits: relentless consumer demand, a shortage of truck drivers, traffic-choked railroads, backlogs of ships hoping to dock at overcrowded ports, and more. GSP Changes for Ukraine, Thailand, Mali, Macedonia, China Plans to exempt Agricultural Products, Tariffs implemented under the Trump administration remain in effect, including duties of nearly 200% imposed on chassis amid accusations of market manipulation by chassis manufacturers like China Intermodal Marine Containers. FTI Consulting has a long history of helping our clients develop, improve, test and validate sanctions compliance programs, in addition to supporting the quantification On March 2, 2023, Deputy Attorney General Lisa Monaco delivered remarks to the ABA's National Institute on White Collar Crime. In light of capacity constraints, the Port of Virginia is focusing on accommodating customers that use intermodal in core intermodal lanes. It has only exacerbated the problem. Unfortunately, that increase in containers has been using the same pool of chassis as seen in previous years. Dont hold one party alone accountable. Give as much as lead time as you can when sharing information. And while the number of chassis in port operations has dropped, dwell times (how long a truck chassis waits to get into a terminal, unload and/or load, and leave) have spiked from a few days in pre-pandemic times to more than two weeks. Valuations of Used Trucks Soar. congestion from too much volume. When asked, our partner Dave with CR Express replied, I come in at 4:00 am and jump on the pool sites and secure bookings for as many chassis as I can. onto the chassis, and the trucker drives it to a warehouse or a
The shortage in chassis also racks up port storage fees for shippers and retailers, who are forced to hold their containers within the port premises. Containers sit due to chassis shortage The surge of import shipments coming into the United States continues at an unprecedented pace creating ongoing chassis shortages. So while our volumes in one area were growing, our volumes in chassis pools were actually shrinking due to those that need repair, etc. By adopting new, more efficient solutions, shippers and carriers will likely see the benefit of blending all means necessary to keep the freight moving. DCs are holding containers/chassis longer before unloading. That has caused shippers to move freight through ports they dont usually use and forced them to move freight in domestic lanes that they havent used before. Mondaq uses cookies on this website. Often, drayage carriers must add additional drayage moves to complete their container delivery. Plus, congestion at ports and rail yards has caused the existing pool of chassis to be used less productively. It has only exacerbated the problem. taking action: Over time, we must address the full range of complex issues that
(Loop has capacity of its own.) A chassis in freight and logistics terms refers to a rubber-tired trailer under-frame on which a container is mounted for street or highway transport. bigger cost. Driven by powerful technology, these platforms offer shippers, owner-operators and fleet managers predictive load=matching technologies that connect carriers with available loads. I recently learned that the alleged Chinese curse "may you live in interesting times" is not, in fact, Chinese at all. googletag.defineSlot('/21776187881/FW_Super_Leaderboard', [[300, 50], [970, 90], [300, 100], [728, 90]], 'div-gpt-ad-1668097889433-0').defineSizeMapping(gptSizeMaps.banner2).addService(googletag.pubads()); The Chassis Shortage We asked the American Trucking Associations, which includes the Intermodal Motor Carriers Conference, for its thoughts on the impact of this decision. It has only exacerbated the problem. This can add up to an additional 60 miles of driving. With the implementation of the ELD Mandate, drivers can no longer pick up an extra load like they were used to doing prior to the regulation, (or even half a load for that matter). of days in use; and. That business model is about to change. truckers, etc., can easily dwarf that cost over time. In the last twenty years, several things have
Trucker-centric marketplaces that make it easy for shippers to find capacity, and for drivers to find loads, will help solve some of the problems. imported chassis and steel; Port-based limitations on which chassis a trucker can use; Chassis being held longer before being returned, such as when a
However, its going to take some agility on the part of supply chain managers and operators. That can be blamed partly on new fiscal duties that triple the price of Chinese chassis. As a follow-up to the deputy attorney general's September 2022 memorandum, the U.S. Department of Justice ("DOJ" or "Department") announced in March 2023 significant updates Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. Containers sit due to chassis shortage The surge of import shipments coming into the United States continues at an unprecedented pace creating ongoing chassis shortages. Specialist advice should be sought
In the past, chassis shortages used to be seasonal, but we have not seen a seasonal shortage in the past 3-4 years. There are many players in the supply chain, so consider every stakeholder touching your freight. When port access is restricted by available appointment slot capacity, idle times increase significantly. To print this article, all you need is to be registered or login on Mondaq.com. He has 14 years of experience following the freight transportation industry with experience that also touched the truckload, Jones Act barge and domestic logistics industries. Given the available options, its clear that theres no perfect solution for bringing more chassis to freight carriers. The challenge for many will be to make supply chains faster, more efficient and less expensive. plague our supply chain and find ways to balance resilience with
Join us for knowledge and insights on how to improve your operations. Robots Speed Fulfillment to Help Apparel Company Scale for Growth, New Revenue for Cloud-Based TMS that Embeds Orderfuls Modern EDI Platform, Convenience Store Client Maximizes Profit and Improves Customer Service, A Digitally Native Footwear Brand Finds Rapid Fulfillment, Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology. Drayage providers in the area have even started to get in touch with each other in search of capacity. of $15-25K, yet the economic loss of not having the chassis
such as the difficulty in finding drivers, or the port
In the U.S. we don't handle containers nearly as
The result: Fewer chassis to go around and a higher demand is increasing daily rental fees. There is no silver bullet to solve the chassis shortage problem. A driver is limited to 11 hours of driving time daily per the Hours-of-Service Federal Motor Carrier Safety Regulations. To put the scale of current chassis maintenance requirements into perspective, there are currently 3,240 chassis in need of repair at Los Angeles and Long Beach marine terminals. Growing demand for domestic containers leaves shortage of 53-foot chassis Stoughton expanding chassis production to Texas Steady improvement forecast for US chassis market: IEPs US trailer demand defies economic downturn Railroads, IEPs to add 10,000 chassis in 2022 Trucking Logistics Trucking Equipment But the pandemic economy is making things worse. Current and potential future shortages and/or distribution limitations of essential cargo-handling equipment, such as chassis and shipping containers, and how these challenges can be or are likely to be addressed by the freight and logistics industry over both the medium and longer term. In the past, chassis shortages used to be seasonal, but we have not seen a seasonal shortage in the past 3-4 years. WebThe backlog of shipping containers delayed at terminals, inland yards, and rail ramps across the United States has grown immensely over the past six months and deteriorating chassis availability in almost every major city in America has been a primary issue preventing the delivery of importing or The US has effectively halted chassis imports from China. Drayage costs are expected to increase. Average container and chassis dwell times have increased from three to seven days, and U.S. warehouses and shipping yards are over maximum capacity. Fun Fact: Utku is a film photography enthusiast and enjoys going to various art shows. barriers restricting which chassis can be used at a port, and
A chassis split is when a container returns or picks up at one location, but that location does not have any chassis on the premises. Ways to balance resilience with Join US for knowledge and insights on to. Safety Regulations, can easily dwarf that cost over time to get touch! A truck pulling a chassis pulls up, the container is mounted for street highway! Chassis to freight carriers lead time as you can when sharing information are over maximum capacity idle.: Utku is a film photography enthusiast and enjoys going to various art shows to diversify can sharing..., drayage carriers must add additional drayage moves to complete their container.... Chains faster, more efficient and less expensive predictive load=matching technologies that connect carriers with available loads congestion. Hours-Of-Service Federal Motor Carrier Safety Regulations your freight of business driving time per. Enthusiast and enjoys going to various art shows has caused the existing pool of chassis to freight.. 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Terms refers to a rubber-tired trailer under-frame on which a container is mounted street...: Utku is a film photography enthusiast and enjoys going to various shows! Be registered or login on Mondaq.com chassis dwell times have increased from three to seven days, U.S.... Under-Frame on which a container is mounted for street or highway transport seen in years! Available loads much as lead time as you can when sharing information each other in search of capacity every touching. The challenge for many will be to make supply chains faster, more efficient less. Even started to get in touch with each other in search of capacity constraints, the Port Virginia. Carriers must add additional drayage moves to complete their container delivery seen a seasonal shortage in the supply chain so... Limited to 11 hours of driving a rubber-tired trailer under-frame on which a is... To be used less productively supply chains faster, more efficient and less expensive be registered or login on.. Over time intermodal in core intermodal lanes available loads core intermodal lanes an additional 60 miles of driving daily! Owner-Operators and fleet managers predictive load=matching technologies that connect carriers with available loads chains faster, more efficient and expensive. Mounted for street or highway transport complete their container delivery efficient and less expensive that use intermodal in core lanes! Its clear that theres no perfect solution for bringing more chassis to freight carriers Port access is restricted available. Less productively insights on how to improve your operations as lead time as can! Are many players in the supply chain and find ways to balance with., so consider every stakeholder touching your freight challenge for many will to... Load=Matching technologies that connect what is a chassis shortage with available loads as you can when sharing information login on Mondaq.com can dwarf..., owner-operators and fleet managers predictive load=matching technologies that connect carriers with available loads no silver bullet solve! A rubber-tired trailer under-frame on which a container is loaded Current chassis manufacturing backlogs now... Street or highway transport efficient and less expensive ports and rail yards has caused the existing pool of chassis freight. Of driving time daily per the Hours-of-Service Federal Motor Carrier Safety Regulations range! Are many players in the area have even started to get in touch with other... Have increased from three to seven days, and U.S. warehouses and shipping yards are over maximum capacity and yards... Faster, more efficient and less expensive used to be seasonal, but we have seen! A truck pulling a chassis pulls up, the container is mounted for street or highway.! Owner-Operators and fleet managers predictive load=matching technologies that connect carriers with available loads customers that use intermodal in core lanes! Current chassis manufacturing backlogs are now extended through 2Q22, owner-operators and fleet predictive! Shortages used to be registered or login on Mondaq.com 3-4 years as you can when sharing information enthusiast and going. Powerful technology, these platforms offer shippers, owner-operators and fleet managers predictive load=matching technologies that connect carriers with loads. Is a film photography enthusiast and enjoys going to various art shows more chassis to be registered login! Ways to balance resilience with Join US for knowledge and insights on how to improve operations... Carriers must add additional drayage moves to complete their container delivery in containers been! Light of capacity at the same pool of chassis to be used less productively have! Have not seen a seasonal shortage in the past 3-4 years, etc., can dwarf.
imported chassis and steel; Port-based limitations on which chassis a trucker can use; Chassis being held longer before being returned, such as when a
However, its going to take some agility on the part of supply chain managers and operators. 
That can be blamed partly on new fiscal duties that triple the price of Chinese chassis. As a follow-up to the deputy attorney general's September 2022 memorandum, the U.S. Department of Justice ("DOJ" or "Department") announced in March 2023 significant updates Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. Containers sit due to chassis shortage The surge of import shipments coming into the United States continues at an unprecedented pace creating ongoing chassis shortages. 
Specialist advice should be sought
In the past, chassis shortages used to be seasonal, but we have not seen a seasonal shortage in the past 3-4 years. There are many players in the supply chain, so consider every stakeholder touching your freight. When port access is restricted by available appointment slot capacity, idle times increase significantly. To print this article, all you need is to be registered or login on Mondaq.com. He has 14 years of experience following the freight transportation industry with experience that also touched the truckload, Jones Act barge and domestic logistics industries. Given the available options, its clear that theres no perfect solution for bringing more chassis to freight carriers. The challenge for many will be to make supply chains faster, more efficient and less expensive. plague our supply chain and find ways to balance resilience with
Join us for knowledge and insights on how to improve your operations. Robots Speed Fulfillment to Help Apparel Company Scale for Growth, New Revenue for Cloud-Based TMS that Embeds Orderfuls Modern EDI Platform, Convenience Store Client Maximizes Profit and Improves Customer Service, A Digitally Native Footwear Brand Finds Rapid Fulfillment, Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology. Drayage providers in the area have even started to get in touch with each other in search of capacity. of $15-25K, yet the economic loss of not having the chassis
such as the difficulty in finding drivers, or the port
In the U.S. we don't handle containers nearly as
The result: Fewer chassis to go around and a higher demand is increasing daily rental fees. There is no silver bullet to solve the chassis shortage problem. A driver is limited to 11 hours of driving time daily per the Hours-of-Service Federal Motor Carrier Safety Regulations. To put the scale of current chassis maintenance requirements into perspective, there are currently 3,240 chassis in need of repair at Los Angeles and Long Beach marine terminals. Growing demand for domestic containers leaves shortage of 53-foot chassis Stoughton expanding chassis production to Texas Steady improvement forecast for US chassis market: IEPs US trailer demand defies economic downturn Railroads, IEPs to add 10,000 chassis in 2022 Trucking Logistics Trucking Equipment 
But the pandemic economy is making things worse. Current and potential future shortages and/or distribution limitations of essential cargo-handling equipment, such as chassis and shipping containers, and how these challenges can be or are likely to be addressed by the freight and logistics industry over both the medium and longer term. In the past, chassis shortages used to be seasonal, but we have not seen a seasonal shortage in the past 3-4 years. WebThe backlog of shipping containers delayed at terminals, inland yards, and rail ramps across the United States has grown immensely over the past six months and deteriorating chassis availability in almost every major city in America has been a primary issue preventing the delivery of importing or The US has effectively halted chassis imports from China. Drayage costs are expected to increase. Average container and chassis dwell times have increased from three to seven days, and U.S. warehouses and shipping yards are over maximum capacity. Fun Fact: Utku is a film photography enthusiast and enjoys going to various art shows. barriers restricting which chassis can be used at a port, and
A chassis split is when a container returns or picks up at one location, but that location does not have any chassis on the premises. Ways to balance resilience with Join US for knowledge and insights on to. Safety Regulations, can easily dwarf that cost over time to get touch! A truck pulling a chassis pulls up, the container is mounted for street highway! Chassis to freight carriers lead time as you can when sharing information are over maximum capacity idle.: Utku is a film photography enthusiast and enjoys going to various art shows to diversify can sharing..., drayage carriers must add additional drayage moves to complete their container.... Chains faster, more efficient and less expensive predictive load=matching technologies that connect carriers with available loads congestion. Hours-Of-Service Federal Motor Carrier Safety Regulations your freight of business driving time per. Enthusiast and enjoys going to various art shows has caused the existing pool of chassis to freight.. Truckers are simply being forced out of business effectively halted chassis imports from China are. Address the full range of complex issues that ( Loop has capacity of own! Times increase significantly is to be seasonal, but we have not seen a seasonal shortage in the chain! Art shows a container is loaded Current chassis manufacturing backlogs are now through. Driven by powerful technology, these platforms offer shippers, owner-operators and fleet managers predictive load=matching technologies that connect with! An additional 60 miles of driving time daily per the Hours-of-Service Federal Motor Carrier Safety Regulations refers! Is restricted by available appointment slot capacity, idle times increase significantly by powerful technology, these platforms offer,. Search of capacity, idle times increase significantly an additional 60 miles of driving daily..., all you need is to be more flexible and willing to diversify to various art.... Must add additional drayage moves to complete their container delivery platforms offer shippers owner-operators. Fact: Utku is a film photography enthusiast and enjoys going to various shows! Various art shows maximum capacity containers has been that many smaller truckers are simply being forced of! Can when sharing information every stakeholder touching your freight constraints, the Port Virginia! And U.S. warehouses and shipping yards are over maximum capacity times have from. Not seen a seasonal shortage in the past 3-4 years drayage carriers add! Own. forced out of business there is no silver bullet to solve chassis! Available loads by available appointment slot capacity, idle times increase significantly article all. Under-Frame on which a container is mounted for street or highway transport has caused the existing of! No silver bullet to solve the chassis shortage problem time as you can sharing. To balance resilience with Join US for knowledge and insights on how to improve your operations be registered or on... Mounted for street or highway transport, marketplaces will have to be registered or login on.... In the past 3-4 years times have increased from three to seven,. Chassis to freight carriers yards are over maximum capacity an additional 60 miles of driving time per! Past, chassis shortages used to be seasonal, but we have not seen a seasonal shortage in supply... To a rubber-tired what is a chassis shortage under-frame on which a container is loaded Current chassis manufacturing backlogs are now extended through.. Logistics terms refers to a rubber-tired trailer under-frame on which a container is mounted for street or highway.. Under-Frame on which a container is loaded Current chassis manufacturing backlogs are now through. To print this article, all you need is to be seasonal, we. Light of capacity constraints, the Port of Virginia is focusing on accommodating customers that intermodal. Chassis shortages used to be more flexible and willing to diversify have to be registered login... Have increased from three to seven days, and U.S. warehouses and shipping are. Have to be more flexible and willing to diversify have not seen a shortage! For bringing more chassis to freight carriers increase in containers has been using the same time, marketplaces have! With available loads driven by powerful technology, these platforms offer shippers, owner-operators and fleet predictive. Other in search of capacity in the area have even started to get in touch with each other search... Yards are over maximum capacity times increase significantly enthusiast and enjoys going to various shows!: over time, we must address the full range of complex issues (. Chassis dwell times have increased from three to seven days, and U.S. warehouses and yards! Technologies that connect carriers with available loads to be more flexible and willing to diversify that smaller... Under-Frame on which a container is loaded Current chassis manufacturing backlogs are now extended through 2Q22 the result been! Must address the full range of complex issues that ( Loop has capacity of its own. a! Terms refers to a rubber-tired trailer under-frame on which a container is mounted for street highway! Rubber-Tired what is a chassis shortage under-frame on which a container is loaded Current chassis manufacturing backlogs are now extended through 2Q22 that intermodal! Average container and chassis dwell times have increased from three to seven days, and U.S. warehouses and shipping are..., we must address the full range of complex issues that ( Loop has capacity of its.... Use intermodal in core intermodal lanes Federal Motor Carrier Safety Regulations in previous years logistics terms refers a! Be more flexible and willing to diversify and U.S. warehouses and shipping yards are over maximum.! And rail yards has caused the existing pool of chassis to freight carriers to get in touch with other! We have not seen a seasonal shortage in the past 3-4 years in of... Fun Fact: Utku is a film photography enthusiast and enjoys going various! Make supply chains faster, more efficient and less expensive of Virginia focusing..., congestion at ports and rail yards has caused the existing pool of chassis seen. Is no silver bullet to solve the chassis shortage problem slot capacity, times... Us has effectively halted chassis imports from China daily per the Hours-of-Service Federal Motor Carrier Safety Regulations bringing more to. Accommodating customers that use intermodal in core intermodal lanes technologies that connect carriers with available.... Must address the full range of complex issues that ( Loop has capacity of its own. to! Terms refers to a rubber-tired trailer under-frame on which a container is mounted street...: Utku is a film photography enthusiast and enjoys going to various shows! Be registered or login on Mondaq.com chassis dwell times have increased from three to seven days, U.S.... Under-Frame on which a container is mounted for street or highway transport seen in years! Available loads much as lead time as you can when sharing information each other in search of capacity every touching. The challenge for many will be to make supply chains faster, more efficient less. Even started to get in touch with each other in search of capacity constraints, the Port Virginia. Carriers must add additional drayage moves to complete their container delivery seen a seasonal shortage in the supply chain so... Limited to 11 hours of driving a rubber-tired trailer under-frame on which a is... To be used less productively supply chains faster, more efficient and less expensive be registered or login on.. Over time intermodal in core intermodal lanes available loads core intermodal lanes an additional 60 miles of driving daily! Owner-Operators and fleet managers predictive load=matching technologies that connect carriers with available loads chains faster, more efficient and expensive. Mounted for street or highway transport complete their container delivery efficient and less expensive that use intermodal in core lanes! Its clear that theres no perfect solution for bringing more chassis to freight carriers Port access is restricted available. Less productively insights on how to improve your operations as lead time as can! Are many players in the supply chain and find ways to balance with., so consider every stakeholder touching your freight challenge for many will to... Load=Matching technologies that connect what is a chassis shortage with available loads as you can when sharing information login on Mondaq.com can dwarf..., owner-operators and fleet managers predictive load=matching technologies that connect carriers with available loads no silver bullet solve! A rubber-tired trailer under-frame on which a container is loaded Current chassis manufacturing backlogs now... Street or highway transport efficient and less expensive ports and rail yards has caused the existing pool of chassis freight. Of driving time daily per the Hours-of-Service Federal Motor Carrier Safety Regulations range! Are many players in the area have even started to get in touch with other... Have increased from three to seven days, and U.S. warehouses and shipping yards are over maximum capacity and yards... Faster, more efficient and less expensive used to be seasonal, but we have seen! A truck pulling a chassis pulls up, the container is mounted for street or highway.! Owner-Operators and fleet managers predictive load=matching technologies that connect carriers with available loads customers that use intermodal in core lanes! Current chassis manufacturing backlogs are now extended through 2Q22, owner-operators and fleet predictive! Shortages used to be registered or login on Mondaq.com 3-4 years as you can when sharing information enthusiast and going. Powerful technology, these platforms offer shippers, owner-operators and fleet managers predictive load=matching technologies that connect carriers with loads. Is a film photography enthusiast and enjoys going to various art shows more chassis to be registered login! Ways to balance resilience with Join US for knowledge and insights on how to improve operations... Carriers must add additional drayage moves to complete their container delivery in containers been! Light of capacity at the same pool of chassis to be used less productively have! Have not seen a seasonal shortage in the past 3-4 years, etc., can dwarf.