Examining Collaborative Chassis Management Practices at the Ports of - - PowerPoint PPT Presentation

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 Shortage Supply Chain 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? Ocean Carrier Provided (Traditional Model) Ocean Carrier Master agreement between

• cean carrier and marine

terminal operator allows for storage, maintenance, and repair

Terminal Pool Combination of ocean carrier and marine

• terminal. May include chassis contributed

by third-party operators Through terminal operator management

• f terminal facilities

Regional Pool (or Market or Co-op) Pool Ocean carrier with some chassis contributed by third-party operators Multi-party agreement or LLC required Gray (or Neutral) Chassis Pool Chassis leasing company Agreement between pool operator and marine terminal

Pool of Pools (POP) Three separate chassis companies: Direct ChassisLink, Inc., Flexi-Van Leasing, TRAC Intermodal Agreement between chassis lessors and terminals

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

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 of Flow Scenarios

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

• f 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
• wnership and stock of

chassis

– Radio-frequency identification (RFID)

Market Considerations

Image source: https://blog.iron.io/the-overhead-of-docker-run/

This Photo by Unknown Author is licensed under CC BY-SA

Thank you!

Diana Sanchez Diana.Sanchez-sa@csulb.edu Research Associate at Center for International Trade and Transportation