We often speak on how the linchpin to consistently high service levels of intermodal transportation service comes from dray. A subcomponent of dray that is an essential but often overlooked aspect of intermodal logistics is the chassis.
With that said, let’s take a deep dive into the complexities, challenges, and importance of chassis in the intermodal supply chain, which will help in addressing the important questions you should be asking when determining the best intermodal transportation solution for your company.
At its core, a chassis is a wheeled frame used to transport shipping containers. While it may seem like a simple piece of equipment, the chassis plays a pivotal role in enabling the seamless movement of containers across rail, road, and port infrastructure. It serves as the linchpin that holds the intermodal drayage process together, ensuring that containers can move efficiently to their final destinations.
Without chassis, the movement of goods from ship to rail or truck—and eventually to the consignee—would literally grind to a halt on the ground. Despite their critical role, chassis are often misunderstood or taken for granted by those not directly involved in intermodal operations.
Chassis pools are collections of chassis that are shared among users within a specific market or terminal. These pools are designed to improve the availability and efficiency of chassis use, but they come with their own complexities.
These are primarily used for 53-foot containers and are simpler to manage. Companies like DCLI provide chassis for Class 1 railroads and other domestic freight movements.
Used for 20-, 40-, and 45-foot international containers, also known as ISO containers, these pools are more complex due to varying rules, contracts, and agreements between steamship lines and intermodal equipment providers (IEPs).
Understanding potential costs is crucial for shippers to budget effectively and avoid unexpected fees.
Accessorial charges are often viewed negatively by freight buyers, as they’re perceived as penalties or unexpected costs. However, using the term “accessorials” in the context of intermodal shipping can be misleading and does a disservice to buyers. By definition, accessorials are charges that fall outside the scope of the initial pricing agreement.
In reality, some intermodal accessorial charges are predictable and necessary for every shipment and should ideally be included upfront in the pricing provided by your Intermodal Marketing Company (IMC). Gaining a clear understanding of what drives these charges is essential for effectively managing and optimizing your company’s intermodal budget.
Below are the most common charges associated with intermodal chassis:
Shippers may face migration fees if a chassis is out-gated at one terminal and in-gated at a different location. These fees reflect the cost of repositioning the chassis to balance the pool.
A chassis split fee occurs when a trucker must retrieve a chassis from one location and the container from another. This situation often arises in port operations where terminals operate as "chassis-neutral" environments, requiring truckers to source chassis from depots before picking up containers.
Also known as per-diem charges, these fees apply when shippers or motor carriers keep chassis beyond the allowed free time.
If a chassis is returned in damaged condition, the shipper or motor carrier may be held liable for M&R fees.
Storage fees may apply if a chassis is left idle for an extended period at a terminal or depot.
When repositioning chassis between markets, fuel surcharges may be included in the cost, especially for long-haul moves involving stacked chassis.
Some providers offer premium lease options for shippers requiring guaranteed availability.
If a trucker exceeds the allocated time for loading or unloading a container, detention fees may apply.
Another important distinction in intermodal logistics is the difference between wheeled and grounded operations within the intermodal ramp network:
In wheeled operations, containers remain mounted on chassis and are ready for immediate pickup by motor carriers. This approach prioritizes speed and efficiency, allowing truckers to hook and haul the container with minimal delay. However, wheeled operations require significant space for parking and storing containers on chassis, which can be a challenge in high-volume or space-constrained areas.
Grounded operations involve stacking containers to optimize space, particularly in congested port environments. While this approach increases capacity, it requires additional lifts to move containers from stacks onto chassis. Truckers may also need to wait longer for their containers to be lifted and mounted.
Many terminals, especially in major hubs like Chicago, employ hybrid models that blend wheeled and grounded operations.
To address the challenges of chassis availability and efficiency, companies like DCLI have invested heavily in new technologies and strategies:
The pandemic highlighted vulnerabilities in the intermodal system, particularly regarding chassis availability. Factors like increased container dwell times and surges in import volumes strained the industry’s capacity.
Today, however, the industry is better prepared:
Chassis may not be the most visible component of intermodal logistics, but they are undeniably one of the most critical. As Abby Anderson aptly put it during a recent podcast on chassis, "Chassis are the glue that makes intermodal possible."
By understanding the role of chassis, the complexities of managing them, and the potential charges involved, shippers can better navigate the intermodal landscape and optimize their shipping operations. Transparent communication with intermodal providers and proactive planning are key to minimizing unexpected costs and ensuring seamless delivery.
For more insights on intermodal logistics, subscribe to the Intermodal Logistics Podcast. Whether you're a seasoned logistics professional or new to the industry, understanding the intricacies of chassis management will enhance your ability to navigate the ever-evolving world of intermodal shipping.
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