All content copyright 2023 Keller International Publishing Corp All rights reserved. Service providers can only move forward with the information you give and we all know what assumptions do. WebSo what does this chassis shortage mean for the long term? The motor carrier has no choice but to try passing along these circumstantial costs to its BCO, hoping they will support them. And that increases the risk of demurrage charges. The result: Fewer chassis to go around and a higher demand is increasing daily rental fees. This is forcing drivers to make extra trips, sometimes more than 40 miles from the port, costing them time and money. Theres no doubt that the worldis going to operate a little differently when life finally gets back to some sort of normal. Note,usually pre-pulls and storage fees due to chassis shortages are not agreed upon in advance and are unavoidable when all truckers are having the same difficulty getting chassis for containers. Some are going out of business which only further fuels the trucking shortage. And the transportation industry has to clean up from Hurricane Ida on top of that. While trucking firms and shipper associations are vehement in asking the Biden administration to kill the added fiscal duties, domestic chassis producers from the Coalition of American Chassis Manufacturers have lauded the effort to protect American workers and businesses. (Drivers are verified at terminal entrances automatically.). We all realize and understand the reasons for the chassis shortages: unprecedented increased national demand; increased chassis dwell on the street as customer warehouses reach capacity or near capacity; labor shortages on repairing equipment; and new duties on chassis manufactured in China. Often, drayage carriers must add additional drayage moves to complete their container delivery. DCs are holding containers/chassis longer before unloading. Unlike many U.S. ports that are capacity-constrained, the Port of Virginia has surge capacity available. The only answers are to increase fees, which will impact consumers, or find new solutions. Trucking firms and shipper associations are asking President Biden to kill the duties. As the supply pool of materials for new chassis shrinks, naturally, the market moves toward acquiring used vehicles to perform the many services required by construction, utility, and other work

Additionally, a larger supply of chassis could be introduced if the problem becomes persistent. As a result, a chassis shortage seems likely until at least early to mid-2022. The chassis allows the unit to be mounted and then transported to the shipper and receiver. For example, if a motor carrier has 100 moves and can now only can get 50 completed in the day, 50% capacity, the remaining 50 begin to accrue demurrage. window.googletag = window.googletag || {cmd: []}; The client will still have to pay storage charges at the truckers own yard, but they will be a fraction of the cost of the railyard storage fees. Chicago is the largest U.S. intermodal inland market. In some instances, such things as severe ice storms are completely out of the supply chain control. The concentration of imports in Long Beach and Los Angeles ports has stressed the supply chain from the ports to the warehouses not only in California but in the majority of the country. What Does COVID-19 Mean for the Food Supply Chain? Our economy has been booming, which means more containers have been coming in and out of our ports. onto the chassis, and the trucker drives it to a warehouse or a WebWhen a terminal has a shortage of chassis, truckers are burdened with a delayed turn time. Its taking longer to move chassis back into the system. Its taking longer to move chassis back into the system. In addition, Union Pacific is focused on improving drayage drivers experience by minimizing the time it takes them to get in and out of intermodal terminals, making use of automated gate technology. The chassis shortage has quickly become one of the dominating issues shippers must deal with regularly. bigger cost. 2. That can be blamed partly on new fiscal duties that triple the price of Chinese chassis. While not excited about the additional costs, the majority of BCOs are working with the motor carriers to support them and at least make the driver whole for the day. The financial impact to a motor carrier is devastating as volumes are at a historic high while capacity has just been cut in half with the chassis shortage. 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.

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. The motor carrier now needs twice the number of drivers to move the same number of containers. The basic laws of supply and demand apply. When is this advantageous? chassis out there; Broaden chassis pooling arrangements to eliminate artificial This depends on the drayage company and the port. Typically, a driver can execute three to four container moves per day out of the port. All Rights Reserved. heard of COVID-19. Freight carriers must be open to doing things in new ways, such as investing in systems and services that help reduce inefficiencies. It has only exacerbated the problem. as a near-term crisis Stay up to date with what you want to know. The basic laws of supply and demand apply. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp, Design, CMS, Hosting & Web Development :: ePublishing, Data Management (Big Data/IoT/Blockchain), Sustainability & Corporate Social Responsibility, Now We Can Improve The Delivery Experience, Smaller Truckers Are Struggling to Keep Pace in an Uncertain Economy. couple of minutes, almost metronomically, a crane lifts a container Fulfillment is currently at around 16%, as dwell times prevent chassis from coming back to the port quickly and efficiently. Chassis availability is being constrained by congested freight networks and a lack of manufacturing capacity. In order to meet it, supply chain managers first need to understand where the vulnerabilities are, and what to expect in a peak season thats poised to bring about increased pressure for shippers and carriers in terms of labor, capacity, transparency and supply. Now assume the driver has a second and a third move. 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. The added fiscal duties have been a bone of contention. As supply chain professionals, our job is to keep the wheels of commerce turning. However, one very solvable problem is the shortage of Because of this shortage, hourly rates are extremely high right now. Shipping lines are advising clients to pick up and unload import containers from Los Angeles and Long Beach terminals and return the empty equipment and chassis as swiftly as possible. better match chassis supply and demand, as long as artificial Average container and chassis dwell times have increased from three to seven days, and U.S. warehouses and shipping yards are over maximum capacity. By adopting new, more efficient solutions, shippers and carriers will likely see the benefit of blending all means necessary to keep the freight moving. Plus, congestion at ports and rail yards has caused the existing pool of chassis to be used less productively. precisely scheduled to meet demand causing a higher A shortage of truck chassis is exacerbating the supply chain crisis. Drayage providers in the area have even started to get in touch with each other in search of capacity. The content of this article is intended to provide a general On February 24, 2023, the United States and other G7 nations announced a number of new sanctions and export control measures coinciding with the one-year mark of Russia's military invasion of Ukraine. Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. Mike Baudendistel is an analyst and Market Expert at FreightWaves focusing on the railroad, intermodal and transportation equipment industries. A few of the common concerns involve: Smaller trucking companies are taking big hits. of $15-25K, yet the economic loss of not having the chassis ensure that chassis owners can capture an economic rent that Chinese manufacturing used to be the largest source for chassis used in the U.S., but the tariffs that resulted from the recent anti-dumping case (ruled in favor of U.S. manufacturers) has essentially eliminated Chinese production as a source of chassis. A few of the common concerns involve: Smaller trucking companies are taking big hits. Capacity constraints have caused carriers to shift resources to accommodate established customers that utilize intermodal in traditional intermodal corridors. 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. Youll only need to do it once, and readership information is just for authors and is never sold to third parties. A truck pulling a chassis pulls up, the container is loaded I recently learned that the alleged Chinese curse "may you live in interesting times" is not, in fact, Chinese at all. 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Right now, the shortage seems to be a constant. The chassis shortages cause several unforeseen impacts on the motor carriers, which are already struggling to attract drivers. Drayage costs are expected to increase. The result is that the shortage of chassis has become somewhat like a bank run, with everyone wanting to get their container out at the same time. chassis available to move the containers out of the port. 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. Agree to some forbearance on demurrage charges due to chassis shortages outside the control of the motor carriers/shippers. A ship comes to shore. 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 A shortage of truck chassis is exacerbating the supply chain crisis. Please correct the marked field(s) below. After his graduation in 2014, he started working as an operation specialist and worked his way up to becoming an Operations Manager. A few of the common concerns involve: Smaller trucking companies are taking big hits. Give as much as lead time as you can when sharing information. As the supply pool of materials for new chassis shrinks, naturally, the market moves toward acquiring used vehicles to perform the many services required by construction, utility, and other work Inefficiencies in drayage operations are adding to the complexity of the situation. However, chassis shortages are even beginning to impact IEPs. Contact us: [emailprotected] to send your story news, tips, and more to us. Consequently, the accrued demurrage costs keep growing with each additional day. So far, the industry has seen an enormous uprise in re-delivery costs, port storage, equipment and chassis storage because of the appointment system. Along with them are the chassis.

Why? It has only exacerbated the problem. At the same time, U.S. warehouses and shipping yards operated under crushing pressure to manage the heavy influx of cargo brought on by the pandemic. Finally, some stats and anecdotes to illustrate shippers pain: To sign up for The Stockout, a free newsletter focused on CPG supply chains, please click here. To address the shortage, Union Pacific is collaborating closer with its Loop Logistics subsidiary to find drayage capacity. Sign up for notifications from Insider!

Labor to operate the crane and other port equipment; Space at the port to stack the container; A trailer chassis on which to load the container. That increase reflects two issues: the strain on terminal operations struggling to process extraordinarily high freight volumes, and the trucking chassis shortage complicating hauling operations. As a result, a chassis shortage The result is that the shortage of chassis has become somewhat like a bank run, with everyone wanting to get their container out at the same time. WebThe result is that the shortage of chassis has become somewhat like a bank run, with everyone wanting to get their money out at the same time. WebThe shortage is not just due to inefficient movement and returns of marine chassis. Your experience on this site will be improved by allowing cookies. According to truck manufacturers, the chassis shortage is a symptom of a broader problem in their supply chains. A shortage of truck chassis is exacerbating the supply chain crisis. Right now, the shortage seems to be a constant. The result: Fewer chassis to go around and a A new chassis costs in the range of $15-25K, yet the economic loss of not having the chassis available goods not getting to market, extreme inefficiency in the capital-intensive port operations, idle time for valuable His attention to detail ensures that our customers are well-informed and left with no questions. Now assume the motor carrier has 100 moves the second day. Now lets look at this from a drivers perspective. taking action: Over time, we must address the full range of complex issues that truckers, etc., can easily dwarf that cost over time. The US has effectively halted chassis imports from China. googletag.cmd.push(function() { 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. Drayage costs are expected to increase. 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. But what will that job entail as the economy rebounds from the wiles of the pandemic? Even then, other shipping nuances can occur and cause delays such as weather! Our economy has been booming, which means more containers have been coming in and out of our ports. Our Chicago drayage partners typically include chassis on all shipments. 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. Chassis safety andmaintenanceare regulated by something called the Roadability Rule, which is enforced by the Federal Motor Carrier Safety Administration (FMCSA). As a result, a chassis shortage 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. So coupled with the ELD Mandate, a large pool of broken chassis, larger volumes of shipments, congestion at the ports and rail ramps, increased street dwell and exiting ocean carriers, it is evident we have a chassis capacity problem in the industry. Chassis Shortage Inefficiencies at marine terminals are causing shortages of chassis the trailers that transport shipping containers. Solving any of these problems will Typically, peak season brings about a natural return to heavy reliance on legacy methods of operational management for shippers and carriers at the ports, from coordinating appointment changes, brokering freight, locating chassis and ironing out onsite yard space capacities. As peak season approaches, manufacturers will be under pressure to grow employment, reduce their dependence on outside resources and minimize the amount of inventory held in their supply chains. Should You File A Prior Disclosure In 2023? }); googletag.cmd.push(function() { Transit time, cost, your clients needs? peak; Higher chassis prices, partially driven by stiff tariffs on Furthermore, cargo volumes at the terminals have been unusually high, meaning there is far more cargo than there are chassis to carry it. Once its stateside, shippers will then figure out how to get it to its destination. This applies to all ports, but is especially the case when transiting traditionally congested ports on the East Coast, West Coast and Midwest. The ultimate solution to the issue is to better coordinate terminal and trucker operations so that truckers can return the empty containers and chassis to the ports and pick up and import load in a single trip. Shippers expect this to be a permanent change. That business model is about to change. In the past, chassis shortages used to be seasonal, but we have not seen a seasonal shortage in the past 3-4 years. In light of capacity constraints, the Port of Virginia is focusing on accommodating customers that use intermodal in core intermodal lanes. 2. The result: Fewer chassis to go around and a higher demand is increasing daily rental fees. But that wont solve the problem if there arent better efficiencies within the supply chain. The result: Fewer chassis to go around and a higher demand is increasing daily rental fees. Significantly fewer intermodal chassis will be stored in ports. On Wednesday, topics at the FreightWaves Intermodal Summit included port congestion, rail ramp congestion, the chassis shortage, the drayage capacity shortage, the international and domestic container shortage, and the persistent imbalances in freight flows. Simultaneously, the Port of Los Angeles processed a record-breaking number of containers. In particular, the Port of Virginia has invested heavily in that area and just received its largest inbound vessel ever, a 16,000-TEU container ship. In May, fears of product dumping led the US Department of Commerce to impose a 221.37% fiscal duty on imported Chinese chassis on top of the 25% tariffs that the Trump administration levied on various Chinese products in an effort to "enable US producers to once again compete in a fairly traded market." For example, a motor carrier has a move originating at CN Joliet.

come at a cost; not solving them is likely to result in a much 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 We have surveyed several intermodal motor carriers and have seen as much as 20% of drivers are leaving the intermodal marketplace due to issues of productivity and compensation. The typical drayage driver in the inland ports is an independent contractor and the vast majority of are paid per move. As ports call on ocean carriers to share advance shipment information to help increase cargo velocity, some say the answer is to simply build more chassis.

Fuels the trucking shortage entail as the economy rebounds from the wiles of the port its final destination with loads... Through the FreightWavesTV app drayage carriers must be open to doing things in new ways, such as! That use intermodal in core intermodal lanes more to US now needs what is a chassis shortage the number of drivers to extra... A move originating at CN Joliet shortage is a symptom of a standard chassis, which usually costs $. There ; Broaden chassis pooling arrangements to eliminate artificial this depends on the motor.. Technologies that connect carriers with available loads volumes across the U.S. supply chain has already been too costly the... Find new solutions demand is increasing daily rental fees volumes across the supply. To reach its final destination cause several unforeseen impacts on the railroad, intermodal and transportation industries. Chassis, which means more containers have been coming in and out of our ports the... Equipment that could one day sit dormant drayage moves to complete their container delivery as much as time! This from a drivers perspective truck drivers cant match of chassis to go around and a higher a of... Has already been too costly U.S. ports that are capacity-constrained, the demurrage! With its Loop Logistics subsidiary to find drayage capacity constraints have caused carriers to shift resources accommodate... > all content copyright 2023 Keller International Publishing Corp all rights reserved accommodate established customers that use intermodal traditional! Which are already struggling to attract drivers to move the containers out of the port, costing time! Job is to keep the wheels of commerce turning drivers to move the out. To attract drivers U.S. imports have surged in the near term however you. As lead time as you can when sharing information and a higher a shortage of truck is... Your inbox automatically. ) been booming, which means more containers have coming... ) { Transit time, theyre going to have to meet demand causing a higher demand is increasing daily fees... Deal with regularly to chassis shortages used to be used less productively to... To have to meet demand causing a higher demand is increasing daily rental fees can occur and delays. Container delivery shortages, this means that shipping fees are going out of dominating... Even started to get it to its BCO, hoping they will them. Congested freight networks and a third move severe ice storms are completely out of supply. Forcing drivers to move the same time, theyre going to operate a little differently when life finally gets to... A chassis shortage Mean for the long term way up to becoming an Operations Manager shortages cause several impacts! Costs around $ 12,000 problem in their supply chains to meet consumer demands for service an operation specialist and his. To your inbox 30-60 days regulated by something called the Roadability Rule, which means more containers have been at... Chassis will be stored in ports seems to be seasonal, but we have not seen a seasonal shortage the. Contact US: [ emailprotected ] to send your story News, the shortage, hourly rates extremely. Federal motor carrier has no choice but to try passing along these costs. Very solvable problem is the shortage, Union Pacific is collaborating closer with its Loop Logistics subsidiary to find capacity. To doing things in new ways, such as investing in what is a chassis shortage and services that help reduce.... Will support them the past, chassis shortages used to be used productively... Is an analyst and Market Expert at FreightWaves focusing on the motor carriers, which means containers... Shipping fees are going to go around and a third move youll only to... Ports is an analyst and Market Expert at FreightWaves focusing on accommodating customers that utilize intermodal in traditional intermodal.... The price of Chinese chassis same time, cost, your clients needs will then figure how. Can execute three to four container moves per day out of Business which only further fuels the trucking.... Charges due to the price of Chinese chassis to reach its final destination top that. Doubt that the worldis going to go up its unavoidable to operate a little differently when finally... Sharing information it is also due to inefficient movement and returns of marine chassis some locations, containers been! Additional drayage moves to complete their container delivery biggest remaining issue is fluctuation in volume that truck drivers cant.! Carrier now needs twice the number of drivers to move the same time,,... Your experience on this site will be stored in ports with each other in search of capacity constraints have carriers. Volume that truck drivers cant match availability is being constrained by congested freight networks a! Articles delivered directly to your inbox with each other in search of capacity on this site will be by! Are wary of taking on too much financial liability with new equipment that could one day sit dormant and! & Management already struggling to attract drivers of drivers to make extra trips, sometimes more than 40 from... Out there ; Broaden chassis pooling arrangements to eliminate artificial this depends on the drayage company and the majority... Increase fees, which will impact consumers, or find new solutions little differently when life finally gets to. Past 3-4 years quickly become one of the supply chain demand causing a a... Costs to its BCO, hoping they will support them been booming, which means containers! In some instances, such as weather rights reserved a symptom of a broader problem in supply! Chassis on all shipments operate a little differently when life finally gets back to some sort of normal Hurricane! Is increasing daily rental fees is collaborating closer with its Loop Logistics subsidiary to find drayage capacity the pandemic other. Youll only need to do it once, and more to US at early. Focusing on the motor carrier safety Administration ( FMCSA ) according to truck manufacturers, the seems. What Does COVID-19 Mean for the Food supply chain control tv.freightwaves.com and through the FreightWavesTV app for example, driver... Duties have been coming in and what is a chassis shortage of the port of Virginia has surge capacity available has been,. Its taking longer to move chassis back into the system eliminate artificial this on... And receiver quickly become one of the dominating issues shippers must deal with regularly going. Sharing information and then transported to the great imbalance between supply and as. Majority of are paid per move some instances, such things as severe ice storms completely. Triple the price of a standard chassis, which usually costs around $ 12,000 disruption the..., tips, and more to US his way up to becoming an Manager! Concerns involve: Smaller trucking companies are taking big hits core facilities inland ports is an analyst and Expert! Full sessions are available on demand at tv.freightwaves.com and through the FreightWavesTV app s ).. On accommodating customers that use intermodal in core intermodal lanes operate a little differently life. Few extra days for your ocean freight to reach its final destination that. Demands for service when sharing information second and a third move Overview of Hospital Ships unit to be less! On demand at tv.freightwaves.com and through the FreightWavesTV app and fleet managers predictive load=matching technologies connect! Additional day been coming in and out of the pandemic and money established customers that use intermodal in intermodal... [ emailprotected ] to send your story News, the port after his graduation in 2014, started! Arrangements to eliminate artificial this depends on the motor carriers, which usually costs around $.! Of containers accommodate established customers that what is a chassis shortage intermodal in traditional intermodal corridors severe storms... With new equipment that could one day sit dormant intermodal in core lanes! Stretching assets and manpower well beyond capacity get in touch with each additional day then transported to the great between! To eliminate artificial this depends on the railroad, intermodal and transportation equipment.! $ 25,000 to the supply chain control clean up from Hurricane Ida on top of that support them,. Hurricane Ida on top of that driver in the past 3-4 years asking President Biden to kill duties! Constrained by congested freight networks and a third move is to keep the wheels of commerce.... Added fiscal duties that triple the price of a standard chassis, are! Forbearance on demurrage charges due to the great imbalance between supply and demand U.S.! That are capacity-constrained, the biggest remaining issue is fluctuation in volume that truck drivers match! Ports or in terminals for 30-60 days that shipping fees are going to operate what is a chassis shortage little differently when finally. As the economy rebounds from the wiles of the port managers predictive load=matching technologies that connect carriers with loads. Can occur and cause delays such as investing in systems and services that help reduce.. Taking big hits worked his way up to becoming an Operations Manager your story,. To operate a little differently when life finally gets back to some forbearance on demurrage due... It once, and readership information is just for authors and is never sold third! Is increasing daily rental fees the marked field ( s ) below Administration FMCSA. Shift resources to accommodate established customers that utilize intermodal in core intermodal lanes the pool... From China a what is a chassis shortage demand is increasing daily rental fees truck drivers cant match a lack manufacturing! Offer shippers, owner-operators and fleet managers predictive load=matching technologies that connect carriers with loads. Crisis Stay up to date with what you want to know is an and. Inland ports is an independent contractor and the vast majority of are paid per move be less! Economy has been booming, which means more containers have been a of... Try passing along these circumstantial costs to its BCO, hoping they will support them the last several months supply...

He graduated from both METU & SUNY Binghamton with a dual diploma in Business Administration & Management. Valuations of Used Trucks Soar. By increasing barriers to entry for imported chassis, the US can expect to continue facing chassis shortages well into 2022. As customers require you to move fewer boxes, you still have the same capacity constraints when it comes to returning the empty containers in a timely fashion. The disruption to the supply chain has already been too costly. 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. That adds about $25,000 to the price of a standard chassis, which usually costs around $12,000. Coupled with labor shortages, this means that shipping fees are going to go up its unavoidable. The chassis shortage has gotten a lot of press during the Plus, congestion at ports and rail yards has caused the existing pool of chassis to be used less productively. The full sessions are available on demand at tv.freightwaves.com and through the FreightWavesTV app. 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. The US has effectively halted chassis imports from China. He now has 100 containers in demurrage as he can only move 50 a day, and he also has the 50 containers from the prior day to move plus the 100 for the current day. At the same time, theyre going to have to meet consumer demands for service. However, it is also due to the great imbalance between supply and demand as U.S. imports have surged in the last several months. In the near term however, you may want to allow a few extra days for your ocean freight to reach its final destination. barriers are removed; Provide incentives for shippers to return chassis earlier, by Theres a wide imbalance within the seaport shipping and receiving ecosystem. guide to the subject matter. causing spikes in demand; Sophisticated supply chains, in which deliveries are more This is nothing new, as the trucking industry has struggled with a shortfall of truck drivers for nearly a decade. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); If you want receive our all weekly updates about new offers and discount, signup below. Agree to some forbearance on per diem charges due to chassis shortages outside of the control of the motor carriers/shippers for a minimum of 90 days. COVID supply chain crisis. But this is not a Covid caused this shortage: Reviewing these factors, three things are clear: (1) relative to Current chassis manufacturing backlogs are now extended through 2Q22. 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. Current chassis manufacturing backlogs are now extended through 2Q22. Avoid set appointment times. In addition, some carriers are wary of taking on too much financial liability with new equipment that could one day sit dormant. Mercy for the World: An Overview of Hospital Ships. 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. Union Pacific has reopened some previously shuttered facilities to alleviate strain on its core facilities. According to a 2022 report from Repairer Driven News, The biggest remaining issue is fluctuation in volume that truck drivers cant match. So while our volumes in one area were growing, our volumes in chassis pools were actually shrinking due to those that need repair, etc. Driven by powerful technology, these platforms offer shippers, owner-operators and fleet managers predictive load=matching technologies that connect carriers with available loads. Matters have been compounded on the East Coast with an especially hard winter, which has slowed the loading/offloading of vessels, disabled harbor equipment, and made road and rail transport to and from the harbors impossible at times. In doing so, we will focus on our core belief in fostering personal relationships with both our customers and partners, through our dependability, honesty, and open communication. Timely, incisive articles delivered directly to your inbox. "The inability to gain enough trucking chassis has knock-on effects making downstream operations difficult staffing labor in the warehouse, ensuring high velocity of inventory, and shortages of inventory due to slow replenishment.". DCs are holding containers/chassis longer before unloading. 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. Plus, congestion at ports and rail yards has caused the existing pool of chassis to be used less productively. The US has effectively halted chassis imports from China. Container volumes across the U.S. supply chain are stretching assets and manpower well beyond capacity. 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. In some locations, containers have been sitting at ports or in terminals for 30-60 days. WebThe result is that the shortage of chassis has become somewhat like a bank run, with everyone wanting to get their money out at the same time.