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From page 37... ... Guidebook for Assessing Evolving International Container Chassis Supply Models \| NCFRP Report 20 \| 37 Alternative Chassis Supply Models: Stakeholder Perspectives Key Messages Different supply chain stakeholders have different and, in many cases, divergent interests with respect to chassis supply. Likewise, the perceived advantages and disadvantages of alternative chassis supply models also differ by stakeholder. Read the entire page →
From page 38... ... 38 NCFRP Report 20 \| Guidebook for Assessing Evolving International Container Chassis Supply Models \| 38 5.1 Different Stakeholders, Different Interests and Needs Many stakeholders have an interest in ocean container chassis supply. These stakeholders include, but are not limited to the following: BCOs -- importers and exporters; Ocean carriers; Motor carriers; Terminal operators (marine and inland) Read the entire page →
From page 39... ... Guidebook for Assessing Evolving International Container Chassis Supply Models \| NCFRP Report 20 \| 39 Profile of BCOs Consulted Ten BCOs were consulted in the development of this Guidebook, including importers and exporters and covering a range of containerized cargo including consumer packaged goods, manufactured and industrial products, chemical and agricultural commodities, among others.8 These BCOs ranged in size -- the smallest moved 100 twenty-foot equivalent unites (TEUs) per year, and the largest moved over 300,000 TEUs per year. Read the entire page →
From page 40... ... 40 NCFRP Report 20 \| Guidebook for Assessing Evolving International Container Chassis Supply Models 40 Service Terms: The terms of delivery and chassis supply operations at the BCO's facility, including live-unload versus drop and hook and "free time." Cost* (see box below) Read the entire page →
From page 41... ... 5.2.2 Advantages and Disadvantages of Alternative Chassis Supply Models for BCOs From the perspective of BCOs, the advantages and disadvantages of alternative chassis supply models are presented Table 5-1 below, with a focus on the implications to their specific commercial interests, as outlined in Section 5.2.1 above. Table 5-1. Read the entire page →
From page 42... ... 42 \| 42 5.2.3 BCOs and Chassis Supply Transitions All BCOs surveyed were aware of the changing landscape with regard to chassis in the intermodal supply chain. In every case, the status quo chassis supply model was preferred to any alternative, which is not surprising given the specific BCO interests and their current chassis supply arrangements -- minimum or otherwise understood service risk, good service terms, and no separate explicit cost. Read the entire page →
From page 43... ... Guidebook for Assessing Evolving International Container Chassis Supply Models \| NCFRP Report 20 \| 43 5.3 Ocean Carriers In almost all markets in the U.S., chassis supply has historically been the responsibility of the ocean carrier. Most ocean carriers considered providing chassis a cost of doing business in the U.S., the equivalent of providing containers. Read the entire page →
From page 44... ... 44 NCFRP Report 20 \| Guidebook for Assessing Evolving International Container Chassis Supply Models \| 44 Asset utilization: The higher the better, leading to more effective chassis cost per load. Liability: Chassis provider is responsible to provide adequate third-party liability insurance. Read the entire page →
From page 45... ... 5.3.2 Advantages and Disadvantages of Alternative Chassis Supply Models for Ocean Carriers From the perspective of the ocean carriers, the advantages and disadvantages of alternative chassis supply models are presented in Table 5-2, with a focus on the implications to their specific commercial interests, as outlined in Section 5.3.1 above. Table 5-2. Read the entire page →
From page 46... ... Neutral Chassis Pool Model (Note: some terminal pools are neutral and some are co-op.) Capital Cost: No chassis-related capital investment needed for ocean carriers. Read the entire page →
From page 47... ... Guidebook for Assessing Evolving International Container Chassis Supply Models \| NCFRP Report 20 \| 47 5.3.3 Ocean Carriers and Chassis Supply Transitions According to the OCEMA website, 16 ocean carriers have implemented chassis model transitions of some type. Most have ended the general practice of providing chassis in smaller container volume markets though a few lines have implemented transition strategies in major markets as well. Read the entire page →
From page 48... ... 48 NCFRP Report 20 \| Guidebook for Assessing Evolving International Container Chassis Supply Models \| 48 5.4 Motor Carriers The motor carrier drayage model in the U.S. container trade is predominately "asset light," utilizing primarily owner-operators (aka "sub-contractors") Read the entire page →
From page 49... ... Guidebook for Assessing Evolving International Container Chassis Supply Models \| NCFRP Report 20 \| 49 Profile of Motor Carriers Consulted Thirty motor carriers were consulted in the preparation of this Guidebook, collectively serving all major ocean and inland rail terminals in the U.S. The adjacent figure provides an overview of regions served by the sample of motor carriers consulted. Read the entire page →
From page 50... ... 50 NCFRP Report 20 \| Guidebook for Assessing Evolving International Container Chassis Supply Models \| 50 Supply: Ensuring adequate supply of chassis -- right place at the right time. Motor Carrier Performance Metrics with Respect to Chassis Supply Motor carriers were typically less inclined to measure chassis performance given they are still typically not paying this cost, and ownership rates are very low. Read the entire page →
From page 51... ... 5.4.2 Advantages and Disadvantages of Alternative Chassis Supply Models for Motor Carriers From the perspective of the motor carriers, the advantages and disadvantages of alternative chassis supply models are presented in Table 5-3, with a focus on the implications to their specific commercial interests. Table 5-3. Read the entire page →
From page 52... ... Terminal Chassis Pool Model Productivity: "Gray fleet" increases efficiency when it serves multiple terminals due to more "start" and "stop" locations. Capital Costs: No capital investment required for chassis or chassis storage. Read the entire page →
From page 53... ... Guidebook for Assessing Evolving International Container Chassis Supply Models \| NCFRP Report 20 \| 53 5.4.3 Motor Carriers and Chassis Supply Transitions Approximately 85% of the motor carriers surveyed still are unsure of their chassis strategies or are passively awaiting the market to sort it out. Nevertheless, the potential implications of chassis supply transitions from the motor carrier perspective are many. Read the entire page →
From page 54... ... 54 NCFRP Report 20 \| Guidebook for Assessing Evolving International Container Chassis Supply Models \| 54 5.5 Terminal Operators (Marine and Inland) Terminals, both marine and rail, are the place where the container in transit changes transportation modes. Read the entire page →
From page 55... ... Guidebook for Assessing Evolving International Container Chassis Supply Models \| NCFRP Report 20 \| 55 cases of terminal-operated chassis pools, they are not as inclined to be concerned with utilization rate so much as cost control and supply liquidity. The primary metrics used by terminal operators and port authorities with respect to chassis are varied and often inconsistent, but include share of total land devoted to chassis storage; percentage of bad-order chassis; and administrative cost and maintenance and repair costs, as applicable. Read the entire page →
From page 56... ... 5.5.2 Advantages and Disadvantages of Alternative Chassis Supply Models for Terminal Operators From the perspective of terminal operators (rail and marine) , the advantages and disadvantages of alternative chassis supply models are presented in Table 5-4, with a focus on the implications for their specific commercial interests. Read the entire page →
From page 57... ... Terminal Chassis Pool Model Terminal Productivity: Higher chassis utilization than ocean carrier model. Gray fleet eliminates chassis flips caused by mismatching containers to chassis. Read the entire page →
From page 58... ... 58 NCFRP Report 20 \| Guidebook for Assessing Evolving International Container Chassis Supply Models \| 58 5.5.3 Terminals and Chassis Supply Transitions Though marine terminals prefer the motor carrier owned/operated model, which would ef fectively move the chassis storage terminal, none surveyed believed transition to this model was realistic in the short term, as the barriers to wholesale change are too numerous and too high to undo the current chassis structure. These factors have been described previously, but include the many challenges in the transfer of assets from ocean to motor carriers (capital, storage facilities, maintenance, and administration) Read the entire page →

From page 37...

... Guidebook for Assessing Evolving International Container Chassis Supply Models | NCFRP Report 20 | 37 Alternative Chassis Supply Models: Stakeholder Perspectives Key Messages Different supply chain stakeholders have different and, in many cases, divergent interests with respect to chassis supply. Likewise, the perceived advantages and disadvantages of alternative chassis supply models also differ by stakeholder.