In Port News 09/03/2015
When port operations slowdown, and cargo begins to build up, a port-wide gray chassis pool is said to be one of the best options for efficient chassis provisioning – something which Los Angeles and Long Beach are sticking to.
Congestion problems at the ports of Los Angeles and Long Beach started in late 2014, with a “chassis imbalance” being named as one of the main causes.
Now, a gray chassis fleet of truck-trailers has been activated by three companies, as of 1 March 2015, in a bid to improve the flow of goods through the nation’s busiest harbour complex.
Within a gray chassis pool, where various chassis providers contribute their chassis into one large fleet, competitors whose assets are being interchanged within the pool need a neutral moderator with expertise in managing the “pool of pools.”
Dubbed the “pool of pools”, the landmark agreement between Direct ChassisLink Inc (DCLI), Flexi-Van Leasing Inc and TRAC Intermodal clears the way for more efficient cargo operations by giving terminal operators and trucking companies at the ports of Long Beach and Los Angeles much more flexibility in obtaining chassis.
“This is a major step forward in addressing the congestion issues that have challenged the San Pedro Bay cargo flow in recent months,” said Gene Seroka, executive director, POLA.
“The gray chassis pool, along with other initiatives underway to improve efficiencies, will help our marine terminals move effectively towards restoring cargo flow through this important gateway,” he added.
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 more than 81,500 chassis.
Eleven of the 13 container terminals at the San Pedro Bay ports, as well as the off-dock rail yards, are expected to take part. The two remaining marine container terminals use their own equipment, but could opt to participate in the future.
The pools will remain commercially independent, with each chassis provider competing for business and setting its own leasing terms and rates.
But, having a pool like this requires a third party to perform various chassis usage reconciliation tasks while meeting government regulations on anti-trust, ensuring neutrality and keeping commercial terms confidential. So, International Asset systems (IAS) is assigned the responsibility for these tasks. A provider of technology that connects shipper communities to the goods transport industry, IAS is a neutral party without cargo- or asset-related interests.
The ports says they are working with container terminals, shipping lines and the trucking community to provide additional space, sort cargo more efficiently, reduce wait times for truckers and improve real-time data throughout the port complex. Port officials are also working with their railroad partners to enhance rail efficiency.
Elsewhere in the US, the Port of New York and New Jersey (PANYNJ) is also following the same gray chassis agreement.
The ‘pool of pools’ agreements are expected to ease congestion almost immediately.
