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12 NCFRP Report 20 | Guidebook for Assessing Evolving International Container Chassis Supply Models | 12 Chassis Supply Chain Operations Key Messages The terminal storage function can be âgrounded,â which requires stacking containers, or âwheeledâ with containers stored on chassis. Wh eeled operations, more typical at inland rail terminals, usually transfer containers to draymen with one lift, but require a larger fleet of chassis, more land to store chassis, and containers on chassis. Conventionally, ocean container chassis in the U.S. have been stored (parked, stacked, or racked) an d managed within the terminal gate, which is unique to the U.S. However, because of the need for additional acre- age to increase container capacity, the storage of chassis at another location out- side the terminal gate is a growing trend.
Guidebook for Assessing Evolving International Container Chassis Supply Models | NCFRP Report 20 | 13 2.1 Role of Ocean Container Chassis in Freight Movement Ocean container chassis serve critical functions in the movement and storage of full and empty ocean containers. With respect to the mo vement of containerized imports and exports, Figure 2-1 highlights the transportation moves in which the chassis is involved (orange arrows). A chassis is involved every time an ocean container moves by truck, irrespective of the type of move . Likewise, a domestic chassis is involved every time a 53' domestic container moves to and from a terminal (dotted orange arrows). Figure 2-1. Use of Chassis in Import and Export of Containerized Freight Source: CPCS. In addition to the chassis' role in drayage operations, the ch assis also provide a storage function, which is largely unique to U.S . supply chains. This takes place in the following two ways: At a te rminal si te : Storage of containers on chassis until ready for pickup (at a "wheeled" terminal, described in more detail in Section 2.2 below). Wheeled facilities are most typical of rail terminal operations. At the shipper's facility : Often containers and the chassis on which they rest are unhooked from the tractor and left at the shipper's fa cility for unloading and picked up later (drop and hook operation). In some instances, the container and chassis can be left at a shipperâs facility for a pr olonged period of time (free time), thereby representing additional storage space at that shipper's facility. Chassis supply chain operations at terminals and BCO facilities and relevant distinctions are described in Sections 2.2 and 2.3 , respectively.
14 NCFRP Report 20 | Guidebook for Assessing Evolving International Container Chassis Supply Model s | 14 2.2 Chassis Operations at Terminals Conventionally, the ocean carrier chassis supply model required the pickup/drop off of a ch assis or chassis container for every import container transported, in-gate inspections upon the motor carrier returning the chassis, and the storage, maintenance, and repair of chassis within the terminal gate. As with the evol ution of chassis supply models, this is no longer always the ca se. In terms of how the chassis interfaces with the terminal, there are primarily two key distinctions, as follows: 1. Whether chassis are part of the container staging and storage operation at the terminal (wheeled vs. grounded terminals). 2. Whether the driver arrives at the terminal with a chassis or must pick one up. It is relevant to review the implications of these two key terminal model distinctions and others as they have important and varying implications for alternative chassis supply models. 2.2.1 Wheeled Versus Grounded Terminals Intermodal terminals consist of three interactive operations: gate, transferring (ramp/berth), and storage. The storage function can be âgrounded,â in which case containers are stored in the containe r yard by stacking them upon one another, or âw heeled,â with containers stored on chassis (Figure 2-2). In wheeled terminals, containers coming off a vessel or train are directly transferred to a chassis, and thus the chassis is an active element of terminal operations (Figure 2-3). Figure 2-2. Grounded Operations at Hanjin Terminal, Port of Long Beach Source: Port of Long Beach. A grounded operation is the standard terminal operating model in the rest of the world, which does not require chassis to be stored on terminal for operating use. Due to operating preferences, U.S. rail and ce rtain marine terminals maintain a portion of containers on chassis, which then does require chassis to be stored, and thus maintained, on terminal.
Guidebook for Assessing Evolving International Container Chassis Supply Models | NCFRP Report 20 | 15 Figure 2-3. Wheeled Operations at APL Terminal, Port of Long Beach Source: Google Maps. Many terminals are neither all-wheeled, nor all-grounded (stacked) operations. A percentage of a grounded terminalâs space is typically reserved for wheeled operation (e.g., high-priority, hazardous, or refrigerated cargo), and wheeled terminals switch to stacked operations when they run out of places to park chassis/containers, or when they run out of chassis. Wheeled operations usually transfer containers with one lift, but require a significantly larger fleet of chassis, more land to store storage area. chassis, and containers on chassis. Usually there is also more yard tractor time and mileage driving to and from the The following figures provide an overview of the process for picking up and dropping off a container at a grounded terminal (Figure 2-4), a wheeled terminal (Figure 2-5), and returning a chassis or wheeled container (Figure 2-6). Where steps do not Chassis Flips Chassis flips occur when there is a need to transfer a container from the chassis it is resting upon to another chassis. The incidence rate of chassis flips performed at marine and rail terminals varies but is generally on the order of about 5% of the total volume of intermodal transfers, based on terminals consulted (but could be more or less). Chassis flips nevertheless can create significant delays. There are five reasons for a chassis flip, ranked below by prevalence: 1. Bad order chassis (defective chassis), 2. Mismatched (wrong pool) container and chassis, 3. Driver brings his own chassis at a wheeled terminal, 4. The chassis cannot leave the terminal (rail), and 5. Container is stored on a chassis not suitable for the container weight. happen in all instances, their boxes have dashed-line borders. These processes are generic and may not exactly match all chassis operations nationally.
16 NCFRP Report 20 | Guidebook for Assessing Evolving International Container Chassis Supply Models | 16 Source: Adapted from NCFRP Report 11: Truck Drayage Productivity Guide, The Tioga Group et al., Transportation Research Board of the National Academies, Washington, D.C., 2011. Figure 2-4. Chassis Operations at a Grounded Terminal
Guidebook for Assessing Evolving International Container Chassis Supply Models | NCFRP Report 20 | 17 Figure 2-5. Chassis Operations at a Wheeled Terminal Figure 2-6. Returning a Chassis to the Terminal
18 NCFRP Report 20 | Guidebook for Assessing Evolving International Container Chassis Supply Models | 18 2.2. 2 O n-terminal Versus Off-terminal Chassis Storage Conventionally, ocean container chassis in the U.S. have been stored within the terminal gate, but because of the need for additional acreage to increase container capacity, the storage of chassis at another location outside the terminal gate is an emerging practice, though not prevalent. Off-terminal chassis storage is not an option for wheeled terminals because chassis are required for operations â containers are directly loaded to a chassis for trucker pickup. A grounded terminal has the optio n of whether or not to domicile chassis. A greater share of motor carriers arriving at the terminal with their own chassis not only eliminates the need to supply a chassis at the terminal, but also increases throughput: every acre not needed for chassis stora ge is an additional acre available for container storage. The number and nature of truck moves differ depending on whether the chassis is domiciled within or outside the terminal gate. A number of permutations are possible, depending on whether the terminal operation is grounded or wheeled (note: there is no off-terminal chassis storage/pickup in wheeled operations), and whether the loading/unloading operation at the BCOâs facility is a drop and hook vs. a live-load/unload operation. For illustrative purposes, the following simplified Table 2 -1 compares the number and nature of truck moves for an ocean container import move under three chassis storage scenarios: on terminal, off terminal, and at the motor carrierâs facility. This illustrative example is for a grounded terminal operation an d live- unload scenario, and assumes a same-day process. Chassis Storage When chassis need to be stored more efficiently than simply being parked, they are either stacked or racked (Figure 2-7). Figure 2-7. Examples of Chassis Storage: (a) Stack and (b) Rack (a ) Chassis Stack (b) Chassis Rack Source: Prime Focus LLC.
Guidebook for Assessing Evolving International Container Chassis Supply Models | NCFRP Report 20 | 19 Table 2-1. Truck Move Sequence for Delivering an Import Container from a Grounded Terminal to a Customer Facility (Live-Unload) On-Terminal Chassis Storage Off-Terminal Chassis Storage Motor Carrier Storage (at Motor Carrierâs Facility) Leave motor carrier yard bobtail, move to terminal Leave motor carrier yard bobtail, move to chassis yard Leave motor carrier yard bare chassis, move to terminal Terminal in-gate: truck arrives bobtail Chassis yard in-gate: bobtail in, pickup chassis Terminal in-gate: truck arrives bare chassis Pick up chassis Chassis yard out-gate: bare chassis Terminal out-gate: chassis and full container Proceed to pick up a container Truck move to terminal Truck move to customer for live-unload Terminal out-gate: chassis and full container Terminal in-gate: bare chassis in, pick up container Truck move from customer to terminal Truck move to customer for live- unload Terminal out-gate: with chassis and full container Terminal in-gate: chassis and empty container, drop off empty Truck move from customer to terminal with empty container Truck move to customer for live- unload Terminal out-gate: bare chassis Terminal in-gate: chassis and empty container, drop off empty Truck move from customer to terminal with empty container Terminal out-gate: bobtail Terminal in-gate: chassis and empty container, drop off empty Terminal out-gate: leave with bare chassis Truck move terminal to chassis yard Chassis yard in-gate: drop off bare chassis Chassis yard out-gate: bobtail Using this illustrative example, on any single move, the off-terminal chassis storage construct increases the number of truck moves and number of gate transactions compared to on-site chassis storage.
20 NCFRP Report 20 | Guidebook for Assessing Evolving International Container Chassis Supply Models | 20 2.2. 3 D ifference Between Marine Terminal and Rail Terminal Operations with Respect to Chassis There are a few important distinctions between rail and marine operations. One salient factor is the greater prevalence of wheeled operations at rail terminals than at marine terminals. On the whole, ra il terminals make up the majority of wheeled operations, with marine terminals increasingly grounded partially, if not totally, making grounded the more predominant model on the whole. Most rail terminals have to handle both TOFC (trailer on flat car) and COFC (container on flat car) services. Wheeled terminals are a legacy of handling trailers, which accounted for over 70% of the market as recently as th e early 1980s (see Figure 2-8). An important shift in the composition of the No rth American intermodal rail fleet took place in the late 1980s and early 1990s. The development of long distance corridors linking major port gateways such as Los Angeles/Long Beach to inland destinations incited the setting of double-stacked unit train services and a shift toward double-stacked COFC. The TOFC service s that used to dominate became marginal. The main reason relates to a more efficient usage of ra il assets permitted by double- stacked services as well as the commitment of trucking companies to integrate their drayage services with long distance intermodal rail services. What used to be carried as TOFC (without the use of a container chassis) is now carried as COFC (with a drayage segment) for the first/last mile, using a chassis. Figure 2-8. Composition of th e North American Intermodal Rail Fleet (%) Source: adapted from T. Prince âToward s an inte rn ational intermodal network,â American Shipper , November, 2001. The transition away from TOFC rail fleet is opening additional opportunities for rail terminals to shift away from wheeled operations to higher density grounded (stacked) operations. This has important operating implications for chassis, particularly at wheeled terminals, where chassis are used as part of the storage function. Yet, wheeled operations are more difficult to convert to grounded operations at existing rail terminals as most rail terminals must handle both containers and trailers (lif t equipment must service both). For rail operations, there is a higher likelihood of mismatched containers and chassis because the railroads handle equipment from many different ocean carriers, which often belong to different chassis pools. There may be enough chassis in the terminal, but there might not be enough chassis from a particular ocean carrier or pool. As a result, the railroads have to st o re more different types of chassis, including domestic chassis as well as multiple sizes of marine chassis. Chassis needs planning can be very different between port and rail operations. In terms of container pickup, the railroads generally have shorter free time allowances (24 to 48 hours versus 4 to 5 days), which results in shorter chassis dwell times. The volume and nature of container flow (the peaks and troughs of chassis demand) also differ at wheeled marine and rail 0% 20 % 4 0% 60 % 8 0% 100% 20 01 19 96 19 91 19 86 19 81 Double stac k (C OFC) Sing le st ac k (T OF C) Sing le st ac k (COFC) Sing le st ac k al l purpos e
Guidebook for Assessing Evolving International Container Chassis Supply Models | NCFRP Report 20 | 21 terminals. For example, a large marine terminal may unload 3,000 containers onto chassis from each of the three vessels calling in a week, while a large rail terminal unloads 240 containers to chassis for each of the ten inbound trains a day. 2.3 Chassis Operations at BCO Facilities There are two basic chassis operations with respect to the loading/unloading of ocean containers at the BC Oâs facility (Figure 2- 9): Drop and Hook: The container and chassis is disconnected from the tractor and left behind at the BCOâs facility for loading/unloading. The period of time that the chassis is left at the BCOâs facility is referred to as âfree timeâ and is defined in the service terms of a private contract. In a drop and hook operation, the motor carrier could leave the BCOâs facility without a chassis (bobtail), or with another chassis and container (full or empty). Drop and hook operations are often used by large BCOâs who are trying to optimize warehouse labor and stage loads for product flow reasons within the warehouse operations. In the U.S., where chassis have conventionally been provided by ocean carriers as part of their service, shippers have often negotiated to hold on to the container and chassis with corresponding "free time" as part of the delivery service (this is a contractual term of service). In most jurisdictions abroad, where the chassis is supplied by the motor carrier or a logistics company, the tractor typically remains hooked to the chassis and is redeployed quickly for other drayage operations. Live-Load/Unload: The container and chassis remains hooked to the tractor and is loaded/unloaded in real time at the BCOâs facility, while the driver stays with the equipment. In the case of a live-unload operation, the truck operator waits with the chassis at the importerâs facility until the container unloading operation is complete, after which the truck and chassis go to the terminal with an empty container, or onward to another facility for the container to be reloaded. Conversely, in the case of a live-load operation, the container on chassis will arrive at the BCOâs facility empty and be loaded before returning to the terminal for onward carriage. Live loads and unloads are typically used by BCOs with very limited parking space at their facility and are typical for high value loads and/or low volume shippers/receivers. Figure 2-9. Chassis Operations at the BCOâs Facility