Examining Collaborative Chassis Management Practices at the Ports of Los Angeles and Long Beach Diana Sanchez March 6, 2020 Emerging Scholars Transportation Research Symposium Collaborators: Thomas O’Brien, Tyler Reeb, Ahmed Mohammed, Anete Brinke
Outline • Define Chassis • Outline critical issues and externalities • Evolution of chassis management practices • Discuss methodology • Explain chassis management scenarios • Findings • Future Research Opportunities
Discuss chassis MANAGEMENT at ports to facilitate better DECISION MAKING regarding chassis OPERATIONS
What is a Chassis?
The container Image source: https://blog.iron.io/the-overhead-of-docker-run/
POLB CARGO PROFILE BASED ON METRIC REVENUE TONS
Background • In 2011, there were 670,000 registered chassis in North America through IANA – 70% were ocean carrier provided
Problem statement 1. Truckers needed to return the chassis back to the port after dropping off a container 2. Resulted in many non-revenue generating trips for truckers 3. Limited the number of revenue-generating trips, or turns, a driver could make in any given day 4. Real estate shortage in terminals made storing chassis difficult 5. Delays would arise when truck drivers dropped off a chassis in the wrong terminal
Problem statement 1. Truckers needed to return the chassis back to the port after dropping off a container 2. Resulted in many non-revenue generating trips for truckers 3. Limited the number of revenue-generating trips, or turns, a driver could make in any given day 4. Real estate shortage in terminals made storing chassis difficult 5. Delays would arise when truck drivers dropped off a chassis in the wrong terminal
Problem statement 1. Truckers needed to return the chassis back to the port after dropping off a container 2. Resulted in many non-revenue generating trips for truckers 3. Limited the number of revenue-generating trips, or turns, a driver could make in any given day 4. Real estate shortage in terminals made storing chassis difficult 5. Delays would arise when truck drivers dropped off a chassis in the wrong terminal
Problem statement 1. Truckers needed to return the chassis back to the port after dropping off a container 2. Resulted in many non-revenue generating trips for truckers 3. Limited the number of revenue-generating trips, or turns, a driver could make in any given day 4. Real estate shortage in terminals made storing chassis difficult 5. Delays would arise when truck drivers dropped off a chassis in the wrong terminal
Problem statement 1. Truckers needed to return the chassis back to the port after dropping off a container 2. Resulted in many non-revenue generating trips for truckers 3. Limited the number of revenue-generating trips, or turns, a driver could make in any given day 4. Real estate shortage in terminals made storing chassis difficult 5. Delays would arise when truck drivers dropped off a chassis in the wrong terminal
Negative Externalities Pollution Congestion Real Estate Supply Chain Shortage Disruptions • Picture 1 Source: https://www.nytimes.com/2020/01/06/climate/trump-truck-pollution.html • Picture 2 Source: https://everchem.com/more-on-the-ports/ • Picture 3 Source: https://www.marineinsight.com/shipping-news/msc-pact-port-long-beachs-largest-terminal-approved/ • Picture 4 Source: https://www.cnn.com/2018/09/13/us/food-banks-hurricane-florence-trnd/index.html
Types of Chassis Management Practices Management Structure Equipment Owner How Is It Facilitated? Master agreement between ocean carrier and marine Ocean Carrier Provided terminal operator allows for Ocean Carrier (Traditional Model) storage, maintenance, and repair Combination of ocean carrier and marine Through terminal operator management Terminal Pool terminal. May include chassis contributed of terminal facilities by third-party operators Ocean carrier with some chassis Regional Pool (or Market or Co-op) Pool Multi-party agreement or LLC required contributed by third-party operators Agreement between pool operator and Gray (or Neutral) Chassis Pool Chassis leasing company marine terminal Three separate chassis companies: Direct Agreement between chassis Pool of Pools (POP) ChassisLink, Inc., Flexi-Van lessors and terminals Leasing, TRAC Intermodal
Historic Overview
Historic Overview Cont.
Pool of Pools – POP a multi-pool agreement between two or more third-party equipment managers each with its own pool – Increase overall chassis efficiency and availability
Potential Benefits of Pool of Pools • Conserve land • Rationalize terminal operations • Reduce congestion and diesel emissions • Reduce bare drays
Methodology • Do pooled chassis allow truck drivers to operate more efficiently and possibly increase the number of turns. • Stakeholder Interviews – Truckers and port community • 17 Interviews • October 2014 - October 2015 • Emphasized on short-and-long term impacts on the supply chain
Process of Flow Scenarios Sample scenarios under the pool of pools: • If chassis are available at the terminal • If the right size chassis is not available at the terminal during the day • If driver wants to use the same chassis all day (different terminal locations) • If the driver picks up a chassis that needs to be flipped • Owning and using your own chassis • Owning and using your own chassis with a PierPASS dray to yard • Leasing from a third party leasing company (not part of the pool of pools)
Process Flows: Scenario A If a chassis is available at the terminal
Process Flows: Scenario B Leasing from a third-party leasing company (not part of the POP)
Trucking Stakeholders • Alternative solution • Truckers who invest in their own chassis: – Storing challenge – Cost burden • Roadability inspection process
Port Authority Stakeholders • POLA & POLB are landlord ports • Chassis management is still evolving • Some terminals may not like to rely on other terminals for equipment • Chassis storage needs to move off-dock
Rail Stakeholders • POP has impacted equipment availability at rail ramps – Shortages make it difficult to move containers • Since POP model, rail operators report more difficulties in identifying chassis owners • Expressed interest in using technology to track equipment
Conclusion • POP is more efficient but has not eliminated altogether the repositioning of equipment between terminals • POP has created uncertain and continuous environment at the roadability inspection station • Respondents observe redundancies in: – Managing logistics and stock control – Customer coordination – Labor coordination on maintenance and repair
Future Research Opportunities • Chassis management is still a challenge today • Use of technology to track ownership and stock of chassis – Radio-frequency identification ( RFID)
Market Considerations This Photo by Unknown Author is licensed under CC BY-SA Image source: https://blog.iron.io/the-overhead-of-docker-run/
Thank you! Diana Sanchez Diana.Sanchez-sa@csulb.edu Research Associate at Center for International Trade and Transportation
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