Ports believe pool of more than 80,000 interchangeable chassis will help ease West Coast congestion.
Three major chassis providers in the Ports of Los Angeles and Long Beach have launched a “gray” chassis pool that will allow 80 percent of the chassis in service at the two ports to be used interchangeably.
A lack of chassis, as well as rules about when and where they could be obtained and returned, were seen by trucking companies and shippers as a major reason for the congestion that has plagued the two ports during the past year.
Direct ChassisLink Inc. (DCLI), Flexi-Van Leasing and TRAC Intermodal said the agreement will allow unprecedented chassis interoperability for about 81,500 chassis contributed to three pools in which the companies manage or contribute equipment. The chassis are used to transport marine containers between ports, rail yards and cargo destinations such as warehouses.
Also called the “pool of pools,” the gray chassis pool will bring together the DCLI pool or “DCLP” and two pools managed by Flexi-Van – the Grand Alliance Chassis Pool and Los Angeles Basin Pool. TRAC currently contributes 30,000 chassis to the pools managed by Flexi-Van. Another pool called the West Coast Chassis Pool could participate at some point in the future.
DCLI, Flexi-Van and TRAC said in a joint press release, “Interoperability of chassis across the terminal complex should reduce time spent in travel to pick up or return chassis, improving motor carrier productivity that will also benefit the steamship lines and beneficial cargo owners utilizing the ports.
“Marine terminal operators will no longer be required to segregate chassis from the participating pools which, along with greater utilization efficiencies, should free up valuable terminal real estate in the crowded port area,” the companies added. “The general public and the environment should also see the benefits of this program, in the form of decreased fuel usage, reduced engine emissions and less port congestion as the transportation of containers entering and exiting the ports becomes more efficient.”
A dozen container terminals at the San Pedro Bay ports, as well as the off-dock rail yards, are expected to participate in the pool of pools.
“This is a historic agreement that will help our ports overcome a major challenge that has played a significant role in the congestion we’ve experienced,” said Port of Long Beach Chief Executive Jon Slangerup.
Port of Los Angeles Executive Director Gene Seroka said, “The gray chassis pool, along with other initiatives underway to improve efficiencies, will help our marine terminals move effectively toward restoring cargo flow through this important gateway.”
The agreement creates a new chassis supply model with a team of representatives from each of the three pool operators overseeing day-to-day logistics and repositioning of the more than 81,500 chassis. The pools will remain commercially independent, with each chassis provider competing for business and setting its own leasing terms and rates.
A third party service provider will audit cross-pool chassis usage to allow the pools to compensate one another for such usage on a regular basis, and assist in preventing the exchange of competitively sensitive information between the pools and chassis providers.
‘Gray’ chassis pool begins operation in Los Angeles, Long Beach
