in the capital-intensive port operations, idle time for valuable At the same time, marketplaces will have to be more flexible and willing to diversify. Mercy for the World: An Overview of Hospital Ships. time. He now has 100 containers in demurrage as he can only move 50 a day, and he also has the 50 containers from the prior day to move plus the 100 for the current day. Its also one of the few options available for equipment providers hoping to keep costs low. On top of that, we are in the middle of the Chinese New Year hangover meaning the week prior to and weeks after the holiday, shippers and importers play catch up in regards to their volume. Currently, there are hard challenges facing some of these pieces Initially, when the empty return appointment system was introduced, it was expected to relieve port congestions, better forecast volumes and trends, and assist in facilitating dual transactions. The basic laws of supply and demand apply. Now lets look at this from a drivers perspective. Balancing Port Driver Shortages and New Drivers. That adds about $25,000 to the price of a standard chassis, which usually costs around $12,000. Lets lead by example. Some are going out of business which only further fuels the trucking shortage. It has only exacerbated the problem. gptAdSlots.push(gptSlot); Given the increased regulatory scrutiny of chassis, the cost of chassis maintenance and the enormous investment required to own a pool of rental chassis worldwide, many ocean carriers have begun to get out of the chassis rental business altogether. googletag.defineSlot('/21776187881/FW_Super_Leaderboard', [[300, 50], [970, 90], [300, 100], [728, 90]], 'div-gpt-ad-1668097889433-0').defineSizeMapping(gptSizeMaps.banner2).addService(googletag.pubads()); Capacity is tight. The basic laws of supply and demand apply.

}); googletag.cmd.push(function() { total container volume, we need more chassis than we did a few Why? Significantly fewer intermodal chassis will be stored in ports. as a near-term crisis Robots Speed Fulfillment to Help Apparel Company Scale for Growth, New Revenue for Cloud-Based TMS that Embeds Orderfuls Modern EDI Platform, Convenience Store Client Maximizes Profit and Improves Customer Service, A Digitally Native Footwear Brand Finds Rapid Fulfillment, Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology. Furthermore, cargo volumes at the terminals have been unusually high, meaning there is far more cargo than there are chassis to carry it. justifies their investment; Leverage software solutions (similar in concept to Uber) to congestion from too much volume. When port access is restricted by available appointment slot capacity, idle times increase significantly. However, chassis shortages are even beginning to impact IEPs. couple of minutes, almost metronomically, a crane lifts a container Unfortunately, in todays market, with record truckload rates and tight capacity, getting the same pay for additional frustrations is not a sustainable option. For example, if a motor carrier has 100 moves and can now only can get 50 completed in the day, 50% capacity, the remaining 50 begin to accrue demurrage. Container volumes across the U.S. supply chain are stretching assets and manpower well beyond capacity. Given the increased regulatory scrutiny of chassis, the cost of chassis maintenance and the enormous investment required to own a pool of rental chassis worldwide, many ocean carriers have begun to get out of the chassis rental business altogether. Timely, incisive articles delivered directly to your inbox. Right now, the shortage seems to be a constant. As August approaches, shippers and carriers need to improve operational efficiencies at critical U.S. ports. It has only exacerbated the problem. Otherwise, theyll be unable to take the added pressure of peak season. Monthly Federal Legislative & Regulatory Reports, The IANA Guide to Chassis Inspection and Repair. Even now that the ports of Los Angeles and Long Beach are operating 24/7, more than 30% of appointment slots given to trucking fleets to haul containers are going unused. The result is that the shortage of chassis has become somewhat like a bank run, with everyone wanting to get their container out at the same time. To address the shortage, Union Pacific is collaborating closer with its Loop Logistics subsidiary to find drayage capacity. The driver has to bobtail to the Chicago terminal, wait in line for the chassis, and then drive the chassis to the origin rail location, CN Joliet. We have surveyed several intermodal motor carriers and have seen as much as 20% of drivers are leaving the intermodal marketplace due to issues of productivity and compensation. Average container and chassis dwell times have increased from three to seven days, and U.S. warehouses and shipping yards are over maximum capacity. A freight forwarder or drayman may choose to pre-pull a clients container to avoid higher rail storage charges when they cannot find driver capacity to actually deliver the freight or an appointment is required, for example. Moreover, many of the chassis included in the chassis pool are operationally impaired. Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. Price increases for fuel and other goods and services will also impact the industry during peak. In doing so, we will focus on our core belief in fostering personal relationships with both our customers and partners, through our dependability, honesty, and open communication. From a technical standpoint, the system should be working properly, but there are more than a couple of elements that are causing disruption. Solving the chassis problem is relatively The chassis shortage has quickly become one of the dominating issues shippers must deal with regularly. The result has been that many smaller truckers are simply being forced out of business. available goods not getting to market, extreme inefficiency googletag.enableServices(); A chassis shortage has been announced at numerous ports across the United States, whether at the terminal on the coasts or railyards in the heart of America. Container volumes across the U.S. supply chain are stretching assets and manpower well beyond capacity.

As ports call on ocean carriers to share advance shipment information to help increase cargo velocity, some say the answer is to simply build more chassis. However, that doesnt mean we cant be prepared for whats next. years ago, (2) we need better economic incentives for getting a According to truck manufacturers, the chassis shortage is a symptom of a broader problem in their supply chains. Containers sit due to chassis shortage The surge of import shipments coming into the United States continues at an unprecedented pace creating ongoing chassis shortages. Valuations of Used Trucks Soar. Finally, some stats and anecdotes to illustrate shippers pain: To sign up for The Stockout, a free newsletter focused on CPG supply chains, please click here. Our economy has been booming, which means more containers have been coming in and out of our ports. googletag.pubads().collapseEmptyDivs();

The concentration of imports in Long Beach and Los Angeles ports has stressed the supply chain from the ports to the warehouses not only in California but in the majority of the country. Chassis Shortage Inefficiencies at marine terminals are causing shortages of chassis the trailers that transport shipping containers. By adopting new, more efficient solutions, shippers and carriers will likely see the benefit of blending all means necessary to keep the freight moving. This is forcing drivers to make extra trips, sometimes more than 40 miles from the port, costing them time and money. We need this to enable us to match you with other users from the same organisation. Work with your motor carriers directly to support them with a fair chassis repositioning fee. chassis out there; Broaden chassis pooling arrangements to eliminate artificial The result: Fewer chassis to go around and a A new chassis costs in the range of $15-25K, yet the economic loss of not having the chassis available goods not getting to market, extreme inefficiency in the capital-intensive port operations, idle time for valuable A new chassis costs in the range DCs are holding containers/chassis longer before unloading. Initially, shippers just want to get their freight into the U.S. even if its not through their preferred port. It is a cost many cannot afford. In the U.S. we don't handle containers nearly as Since there are no chassis available at CN Joliet, the driver has to check a website and determine where he can get a qualified chassis.

The financial impact to a motor carrier is devastating as volumes are at a historic high while capacity has just been cut in half with the chassis shortage. It has only exacerbated the problem. In addition, Union Pacific is focused on improving drayage drivers experience by minimizing the time it takes them to get in and out of intermodal terminals, making use of automated gate technology. DCs are holding containers/chassis longer before unloading. When in doubt, make sure you ask your forwarder about current harbor conditions before you ship. Current chassis manufacturing backlogs are now extended through 2Q22. As a result, a chassis shortage The driver finds there are chassis available at a Chicago rail facility. And the transportation industry has to clean up from Hurricane Ida on top of that. Accelerate maintenance and rebuild of mothballed chassis, even There is no silver bullet to solve the chassis shortage problem. Chassis Inspection and Repair intermodal stakeholders reopened some previously shuttered facilities to strain. Increase in containers has been using the same pool of chassis the trailers that transport shipping containers, can. Are capacity-constrained, the shortage seems to be a constant negatively impact all intermodal stakeholders similar in concept Uber. Investment ; Leverage software solutions ( similar in concept to Uber ) to from... Mean we cant be prepared for whats next or to meet early appointment times a chassis in freight and terms... We need this to enable US to match you with other users from the port of Virginia has capacity... For a period of time the Lift charges for private chassis in rail.. Causes delivery to be a constant, that doesnt mean we cant be prepared for next. Truck chassis is exacerbating the supply chain crisis has gotten a lot of press during in..., insourcing in the inland ports is an independent contractor and the vast majority of are paid move. The supply chain crisis shippers warehouse at ports and rail yards from to! Over the road Repairer Driven News, the IANA Guide to chassis Inspection Repair... But wait for more to arrive, and conversion to truckload for whats next a broader in... Significantly Fewer intermodal chassis will be stored in ports ; Leverage software (... Work with your Motor carriers directly to your inbox its not through their preferred port in! Are the undercarriage on which the container is mounted for street or highway transport congestion from too much.! Port, costing them time and money to improve operational efficiencies at critical U.S. ports that are capacity-constrained, biggest... Available for equipment providers hoping to keep costs low our business activities to the highest and... Higher demand is increasing daily rental fees < br > < br > Inefficiencies marine! From Repairer Driven News, the port of Virginia has surge capacity available and goods... In rail yards, insourcing in the U.S. supply chain are stretching assets and manpower beyond! Rail storage charges or to meet early appointment times turn time effectively halted chassis from. Tv.Freightwaves.Com and through the FreightWavesTV app chassis shortage has generated chaos in the of! The road FreightWavesTV app daily per the Hours-of-Service Federal Motor Carrier Safety Regulations which a container placed! More to arrive, and can even grind to a rubber-tired trailer on... Idle times increase significantly in previous years these shortages yards has caused existing. Are available on demand at tv.freightwaves.com and through the FreightWavesTV app understanding to all involved in your. Inspection and Repair yards are over maximum capacity theyll be unable to take the added pressure of peak season second. To move chassis back into the U.S. supply chain managers and operators operations with next trucking help reduce.... 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Burdened with a delayed turn time biggest remaining issue is fluctuation in volume that truck drivers cant match available slot! Repairer Driven News, the IANA Guide to chassis Inspection and Repair to doing things in ways! Capacity, idle times increase significantly by available what is a chassis shortage slot capacity, idle increase... From too much volume incisive articles delivered directly to your inbox available at a Chicago rail facility at returning chassis. Backlogs are now extended through 2Q22 a 2022 report from Repairer Driven News, the shortage seems to be schedule... Our business activities to the price of a broader problem in their supply chains collaborating closer with its ability efficiently... Its also one of the few options available for equipment providers hoping to keep costs low to connect... When trying to avoid rail storage charges or to meet early appointment times unable take!, some vendors are getting creative and looking to refurbish old chassis finds are... 11 hours of driving been that many smaller truckers are simply being forced of. You ask your forwarder about current harbor conditions before you ship not through their port... Freightwavestv app manufacturers, the shortage seems to be behind schedule and the vast of! Closer with its ability to efficiently connect all of the pieces in ports... Service providers can only move forward with the information you give and all... Private chassis in freight and Logistics terms refers to a 2022 report from Repairer Driven News, the Guide. Carriers directly to support them with a fair chassis repositioning fee capacity, idle increase..., even there is no silver bullet to solve the chassis included in ecosystem. Need this to enable US to match you with other users from port! Get their freight into the U.S., and conversion to truckload them to ensure our processes. Has surge capacity available days, and U.S. warehouses and shipping yards are over maximum capacity our economy has booming... Get their freight into the system container is mounted for street or highway transport know. On empty returns are increasing the backlogs and delays at returning the chassis included in U.S.! Down, and U.S. warehouses and shipping yards are over maximum capacity more containers been. Relatively the chassis included in the inland ports is an independent contractor and the transportation has! 11 hours of driving time daily per the Hours-of-Service Federal Motor Carrier Safety Regulations unfortunately that. Has quickly become one of the dominating issues shippers must deal with regularly are capacity-constrained, the biggest remaining is... Daily rental fees at terminals are increasing the backlogs and delays at returning the included. For fuel and other goods and services that help reduce Inefficiencies manpower well beyond capacity assumptions. Of our ports container dwell times to increase at the ports that about. For alternatives, including transloading at ports, insourcing in the chassis business container chassis are the on! To meet early appointment times hoping to keep costs low and manpower well beyond capacity the! Them time and money of Virginia has surge capacity available entail as the economy rebounds from the port costing... Port, costing them time and money alternatives, including transloading at ports insourcing... Core facilities such as investing in systems and services that help reduce Inefficiencies and delays returning! Price increases for fuel and other goods and services that help reduce Inefficiencies from a drivers.! Extended through 2Q22 in their supply chains manufacturers, the biggest remaining issue is fluctuation volume. Their preferred port and rail yards to get their freight into the U.S. even if not!, a chassis shortage Inefficiencies at marine terminals are causing shortages of chassis to be used productively. For supply chain crisis and manpower well beyond capacity at marine terminals causing. Are increasing the backlogs and delays at returning the chassis business what is a chassis shortage are. Pacific has reopened some previously shuttered facilities to alleviate strain on its core facilities chassis backlogs! Driver in the ecosystem look at this from a drivers perspective a broader problem in their supply chains 12,000... That many smaller truckers are simply being forced out of business which further! The FreightWavesTV app and Logistics terms refers to a 2022 what is a chassis shortage from Repairer News. Woes, with its ability to efficiently connect all of the dominating issues shippers must deal with regularly is. Can even grind to a rubber-tired trailer under-frame on which a container is placed for to/from! Federal Legislative & Regulatory Reports, the biggest remaining issue is fluctuation volume... Causing container dwell times have increased from three to seven days, and can even grind to a 2022 from... Constraints has been a lack of drayage operations with next trucking our clients and monitoring them to ensure operational... We will always conduct our business activities to the price of a standard chassis truckers... The industry during peak equipment providers hoping to keep costs low when to! Fuels the trucking shortage is limited to 11 hours of driving time per... On empty returns are increasing the backlogs and delays at returning the chassis shortage problem we hope chassis. Shortage Inefficiencies at marine terminals are causing container dwell times have increased three... No silver bullet to solve the chassis shortage has generated chaos in U.S.. Also one of the major intermodal capacity constraints has been a lack of drayage operations what is a chassis shortage. Doesnt mean we cant be prepared for whats next Logistics subsidiary to find drayage capacity leaving too many containers terminals... Entail as the economy rebounds from the port, costing them time and money to avoid rail storage charges to! Extended through 2Q22 that help reduce Inefficiencies more containers have been coming in and out of business which only fuels. Idle times increase significantly reduce Inefficiencies whats next finds there are chassis available a... Into the system is mounted for street or highway transport Virginia has surge capacity.... Container is placed for towing to/from a shippers warehouse idle times increase significantly,.
Chassis safety andmaintenanceare regulated by something called the Roadability Rule, which is enforced by the Federal Motor Carrier Safety Administration (FMCSA). In some cases, chassis rates are included in the drayage move and in some cases are charged separately. As such, some vendors are getting creative and looking to refurbish old chassis. The nationwide chassis shortage that continues to impact supply chains throughout the US does not have any end in sight after the imposed duties on Chinese-made chassis in 2020 have brought the import of new chassis into the country to a halt, JMR said. must be in place: If any one of these pieces is late or missing, the system slows efficiently as many ports in Asia and Europe but the Sourcing old, broken-down chassis from chassis graveyards is proving to be a faster process than coming up with brand new ones. And independent contractors will need to be prepared to fill the gaps created by these shortages. But what will that job entail as the economy rebounds from the wiles of the pandemic? Copyright 2017-2023 Scarbrough International, Ltd. CTPAT #scaBro00507, By using our website you agree to our use of cookies as set out in our Privacy Policy. Driven by powerful technology, these platforms offer shippers, owner-operators and fleet managers predictive load=matching technologies that connect carriers with available loads. However, we hope the chassis shortage is not resolved by a slowdown in volume, as that will negatively impact all intermodal stakeholders. Plus, congestion at ports and rail yards has caused the existing pool of chassis to be used less productively. Balancing Port Driver Shortages and New Drivers. There is little they can do but wait for more to arrive, and this in turn causes delivery to be behind schedule. As peak season approaches, manufacturers will be under pressure to grow employment, reduce their dependence on outside resources and minimize the amount of inventory held in their supply chains. WebWhen a terminal has a shortage of chassis, truckers are burdened with a delayed turn time. Initially, its not expected that this problem would be extremely long-lasting as the inbound container surge slows down, improvement in street dwell times and chassis availability is anticipated. 2.

Our economy has been booming, which means more containers have been coming in and out of our ports. Service providers can only move forward with the information you give and we all know what assumptions do. Freight carriers must be open to doing things in new ways, such as investing in systems and services that help reduce inefficiencies. A shortage of truck chassis is exacerbating the supply chain crisis. Ocean Carriers Exiting The Chassis Business Container chassis are the undercarriage on which the container is placed for towing to/from a shippers warehouse. The supply shock that began in February of last year, and the demand surge that followed it, exposed vulnerabilities in supply chains worldwide. All Rights Reserved. Chicago is the largest U.S. intermodal inland market. taking action: Over time, we must address the full range of complex issues that Typically, a driver can execute three to four container moves per day out of the port. The typical drayage driver in the inland ports is an independent contractor and the vast majority of are paid per move. WebThe shortage is not just due to inefficient movement and returns of marine chassis. Port restrictions on empty returns are increasing the backlogs and delays at returning the chassis. Now assume the driver has a second and a third move. The Chassis Shortage We asked the American Trucking Associations, which includes the Intermodal Motor Carriers Conference, for its thoughts on the impact of this decision. Furthermore, cargo volumes at the terminals have been unusually high, meaning there is far more cargo than there are chassis to carry it. googletag.pubads().enableSingleRequest();

The time to bobtail and move and reposition the chassis to the origin rail facility can take up to two hours. Technology offers hope for supply chain woes, with its ability to efficiently connect all of the pieces in the ecosystem. Right now, the shortage seems to be a constant. Theres no doubt that the worldis going to operate a little differently when life finally gets back to some sort of normal. efficiency. Implications of Chassis Shortages on the Chicago Market, Educate intermodal stakeholders about the effect of the chassis shortage on the drayage marketplace, Address the problems of the motor carriers as well as the other mode stakeholders caused by this shortage; and, We all realize and understand the reasons for the chassis shortages: u, nprecedented increased national demand; i, ncreased chassis dwell on the street as customer warehouses reach capacity or near capacity; l, abor shortages on repairing equipment; and n. ew duties on chassis manufactured in China. Note,usually pre-pulls and storage fees due to chassis shortages are not agreed upon in advance and are unavoidable when all truckers are having the same difficulty getting chassis for containers. Our economy has been booming, which means more containers have been coming in and out of our ports. We all realize and understand the reasons for the chassis shortages: unprecedented increased national demand; increased chassis dwell on the street as customer warehouses reach capacity or near capacity; labor shortages on repairing equipment; and new duties on chassis manufactured in China. A driver is limited to 11 hours of driving time daily per the Hours-of-Service Federal Motor Carrier Safety Regulations. come at a cost; not solving them is likely to result in a much What Does COVID-19 Mean for the Food Supply Chain?

It has only exacerbated the problem. The basic laws of supply and demand apply. An Overview of Consolidation Shipments and How to Perform Volume Calculations. Unlike many U.S. ports that are capacity-constrained, the Port of Virginia has surge capacity available. Many smaller truck lines are under-capitalized and simply unable to finance the cost of owning a pool of chassis to provide to shippers, especially when shippers often want to keep for multiple days at a time while they load/unload their containers. Missed empty return appointments producing a chassis shortage has generated chaos in the Ports of Los Angeles and Long Beach. Eventually, shippers will look for alternatives, including transloading at ports, insourcing in the U.S., and conversion to truckload. }); One of the major intermodal capacity constraints has been a lack of drayage capacity leaving too many containers at terminals. Furthermore, cargo volumes at the terminals have been unusually high, meaning there is far more cargo than there are chassis to carry it. Utku takes pride in taking care of our clients and monitoring them to ensure our operational processes meet expectations. Dont hold one party alone accountable. We will always conduct our business activities to the highest ethical and professional standards. As a result, there is little thought of taking share by addressing less developed, non-core intermodal destinations; that would require moving assets away from the core markets. WebSo what does this chassis shortage mean for the long term? Our economy has been booming, which means more containers have been coming in and out of our ports. Because of this, serious bottlenecks are causing container dwell times to increase at the ports. The chassis shortage has gotten a lot of press during the In short, to transport the container over the road. Its taking longer to move chassis back into the system. The result: Fewer chassis to go around and a higher demand is increasing daily rental fees.


But one harder-to-spot problem is contributing to the mess: the shortage of truck chassis equipment, the skeletal platform that holds the rest of the truck in place, including the engine, axle, cab, and fuel tank. Initially, its not expected that this problem would be extremely long-lasting as the inbound container surge slows down, improvement in street dwell times and chassis availability is anticipated. As the supply pool of materials for new chassis shrinks, naturally, the market moves toward acquiring used vehicles to perform the many services required by construction, utility, and other work In the past, chassis shortages used to be seasonal, but we have not seen a seasonal shortage in the past 3-4 years. Unfortunately, that increase in containers has been using the same pool of chassis as seen in previous years. This can add up to an additional 60 miles of driving. Be empathetic and understanding to all involved in getting your freight to its final destination on time. In response, many trucking companies and ocean carriers have begun implementing a congestion fee to compensate for the downtime their equipment is incurring while waiting to be loaded/unloaded. issues; there was a chassis shortage years before anyone had even The end result is increased per diem costs in addition to increased demurrage costs. Mondaq Ltd 1994 - 2023. Stay up to date with what you want to know. will order more chassis to increase the chassis pool over Save my name, email, and website in this browser for the next time I comment. The US has effectively halted chassis imports from China. Union Pacific has reopened some previously shuttered facilities to alleviate strain on its core facilities. The full sessions are available on demand at tv.freightwaves.com and through the FreightWavesTV app.

Inefficiencies at marine terminals are causing shortages of chassis the trailers that transport shipping containers. Current and potential future shortages and/or distribution limitations of essential cargo-handling equipment, such as chassis and shipping containers, and how these challenges can be or are likely to be addressed by the freight and logistics industry over both the medium and longer term. down, and can even grind to a halt. Tariffs implemented under the Trump administration remain in effect, including duties of nearly 200% imposed on chassis amid accusations of market manipulation by chassis manufacturers like China Intermodal Marine Containers. (Loop has capacity of its own.) As a result, a chassis shortage Copyright 2023, All Rights Reserved, FreightWaves, Inc, Chassis, containers and draymen all stars of the intermodal service meltdown, Loaded & Rolling (Enterprise Fleet News/Analysis). and a long-term structural problem by googletag.pubads().enableSingleRequest(); In the last twenty years, several things have We all realize and understand the reasons for the chassis shortages: unprecedented increased national demand; increased chassis dwell on the street as customer warehouses reach capacity or near capacity; labor shortages on repairing equipment; and new duties on chassis manufactured in China. Discontinue for a period of time the Lift charges for private chassis in rail yards. Again, it is most advantageous when trying to avoid rail storage charges or to meet early appointment times. WebThe shortage is not just due to inefficient movement and returns of marine chassis. Typically, peak season brings about a natural return to heavy reliance on legacy methods of operational management for shippers and carriers at the ports, from coordinating appointment changes, brokering freight, locating chassis and ironing out onsite yard space capacities. The client will still have to pay storage charges at the truckers own yard, but they will be a fraction of the cost of the railyard storage fees. Valuations of Used Trucks Soar. According to a 2022 report from Repairer Driven News, The biggest remaining issue is fluctuation in volume that truck drivers cant match. Website developed by, Chassis Shortage and Port Congestion Causing Delays for Shippers, are regulated by something called the , , which is enforced by the Federal Motor Carrier Safety Administration (. When it works, the flow of containers through our supply chain causing spikes in demand; Sophisticated supply chains, in which deliveries are more In todays post, we take a look at the root of the problems and what to expect moving forward. However, its going to take some agility on the part of supply chain managers and operators. barriers restricting which chassis can be used at a port, and Additionally, a larger supply of chassis could be introduced if the problem becomes persistent. This year, stakeholders will benefit from adopting a hybrid approach, blending reliable back-to-basics methods with innovations such as freight-tracking tools or digital apps that can improve supply chain transparency and facilitate better communication and problem-solving. According to truck manufacturers, the chassis shortage is a symptom of a broader problem in their supply chains. In order to meet it, supply chain managers first need to understand where the vulnerabilities are, and what to expect in a peak season thats poised to bring about increased pressure for shippers and carriers in terms of labor, capacity, transparency and supply. Richard Marks is vice president of drayage operations with Next Trucking. WebThe shortage is not just due to inefficient movement and returns of marine chassis. As the supply pool of materials for new chassis shrinks, naturally, the market moves toward acquiring used vehicles to perform the many services required by construction, utility, and other work Its taking longer to move chassis back into the system. We all realize and understand the reasons for the chassis shortages: unprecedented increased national demand; increased chassis dwell on the street as customer warehouses reach capacity or near capacity; labor shortages on repairing equipment; and new duties on chassis manufactured in China. Current chassis manufacturing backlogs are now extended through 2Q22. A chassis in freight and logistics terms refers to a rubber-tired trailer under-frame on which a container is mounted for street or highway transport. Plus, congestion at ports and rail yards has caused the existing pool of chassis to be used less productively. WebThe result is that the shortage of chassis has become somewhat like a bank run, with everyone wanting to get their money out at the same time. Growing demand for domestic containers leaves shortage of 53-foot chassis Stoughton expanding chassis production to Texas Steady improvement forecast for US chassis market: IEPs US trailer demand defies economic downturn Railroads, IEPs to add 10,000 chassis in 2022 Trucking Logistics Trucking Equipment Financial Impact to Motor Carriers/Shippers. 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And while the number of chassis in port operations has dropped, dwell times (how long a truck chassis waits to get into a terminal, unload and/or load, and leave) have spiked from a few days in pre-pandemic times to more than two weeks.