This guide will cover yet another important freight term – chassis fee.
So if you want to learn more about chassis fee, read this guide.
What is Chassis Fee?
A chassis Fee refers to the amount paid in case your cargo is visiting through truck, that is, after your cargo arrives at an ocean port and it’s being transported via truck to a China warehouse.
Basically, it is a flat rate which varies by trucker and the charge is calculated based totally on the quantity of the cargo.
That extra transportation amount charged is the chassis fee.
What is a Tri-Axle Chassis Fee?
A tri-axle chassis fee is the amount classified if a cargo journeying with the aid of truck is so much heavy.
Generally, a 20′ field above 36,000 lbs and a 40′ box above 44,000 lbs requires a tri-axle chassis.
If the cargo weighs below this, there’s no tri-Axle Chassis Fee charged.
ri axle chassis container
What is Chassis Split Fee?
A chassis Split Fee happens whilst the field isn’t always located within the same location as the chassis.
In this scenario, the trucking agency may also verify a chassis cut upcharge.
Generally this fee takes $50 to $110 – to cover the price of taking the chassis to the box area.
Is Chassis Split Fee the same as Chassis Repo Fee
The Chassis Repo Fee is the amount charged for the cost of transporting the empty containers to the nearest hub for the purpose of reusing.
Also, the Chassis Split Fee is charged for the cost of taking cargos to the boxing area. In this case, the cargo is not empty.
How is Chassis Fee Calculated?
A chassis rate is assessed in case your cargo is touring via truck.
That is, after your shipment arrives at an ocean port it’s being transported via truck to a warehouse.
This is generally a flat price which varies by means of trucker.
The total amount of fee is calculated primarily basing on the extent of the shipment.
This entirely depends on the shipment process and the distance the truck has to cover to the warehouse.
What is the Average Cost of Renting Chassis per Day?
In acquiring the chassis from the brand -new proprietors who sold or are shopping for the chassis from the provider’s ranges among $25 and $30 per day on average.
Those are extensive expenses.
Who charges Chassis Fee?
Fee charged is done via ocean companies, for example at certain ports for using their chassis.
This price is to inspire you.
That is, shippers and truckers to provide their personal chassis for pick-up and transport of ocean containers.
This also applies to the usual chassis pool which is now supplied via a few ports on the U.S. East Coast.
Is Chassis Fee negotiable?
You are allowed to generally negotiate the top charge of the assignment and/or the wide variety of days that chassis is out of port.
However, they hardly ever negotiate the chassis price.
Unlike port fixed offerings, many companies will negotiate with you.
They will allow you to further lessen your costs.
This makes it easier and fair.
How do I reduce my Chassis Rental Fee?
Generally, you could get a chassis for round $35 per day (or $75 in keeping with day if it’s a 3-axle chassis).
Those costs may additionally differ a piece relying on which port your items are kept at.
However, shippers hardly ever take note of how many tons they’re spending on chassis rentals until they get a freight bill.
This can averagely sum to $140-$200 and doesn’t appear too “insignificant”.
When it comes to chassis rentals, it normally goes for five+ days, meaning those small charges stack as much and make a distinction ultimately.
The longer the items are kept the higher the Chassis Rental Fee.
Hence, you can reduce this by picking up your items as earlier as possible.
Also, ship less regularly and ship a fixed volume of commodity at off-peak times to reduce the Chassis fee.
What Factors Influence Chassis Fees?
Various aspects determine the range of the Chassis Fees.
This Factors include;
- The price of fuel – Both maritime and land transport heavily depend on the cost of fuel.
If it is low, the cargo shipment becomes cheaper and truck transportation cost is low as well. When high, the Chassis Fee rises.
- Loyalty of the client – If you as a customer regularly does business with the shipment company.
You are more likely to be charged a lower rate of the Chassis Fee as compared to that who does it once in a while.
- Government policy – The regulation of the transport activities by the government greatly impacts on the Chassis Fees rate.
For instance, the limitation of transportation to a maximum of the given hours makes the Chassis Fees expensive.
- Reputation of the merchant –If you are a well-known merchant who packages the cargo well and within the given time, you might be charged a lower rate of Chassis Fees.
However, those who take more time and does the job badly is charged more
- Insecurities – Issues such as sea piracy and other endangering aspects call for more security and change of routes for the shipping companies.
Leading to a rise of the Chassis Fees eventually.
Will I pay Chassis Fee if I Bring my Own Chassis during Shipping?
Basically, Chassis Fee is charged for the transportation of the cargo by truck.
Therefore, if you bring your own chassis you avoid the high cost of the Chassis Fee.
This is way much convenient rather than waiting for the company’s chassis usage which operates according to the company’s schedule and will.
However, it might not be suitable in cases where fragile objects are being transported.
In such event, you should use the company’s Chassis instead.
This is because each company has the needed equipment to safely transport all types of loads. Including the most fragile ones.
What are Split Pick-up and Split Return and how does it affect Chassis Charges?
Split Pick-up refers to a situation in which the truck picks up a given fraction of the various places and transports to the respective destinations.
split pick up
Split Return is when the truck comes back for the remaining fraction of the load and transports it to the given destination.
Both of these do raise the Chassis Charge since the truck covers more distance and the fuel consumed is also higher.
This can be avoided by choosing to use a way bigger truck that suits the size of the given load that needs to be transported.
What is ‘Free Day’ in Relation to Chassis?
This generally refers to a day on which the cargo transportation is not charged.
This applies to both the pick-up and returning process.
However, the size and weight of the cargo is limited to a certain amount. Extra size and weight need to be paid for.
On such a day, the deliveries are done free of charge.
This is however draining to the shipping company and is thus not economical.
Is there Free time Included for Chassis?
When it comes to chassis, there is no free time.
Maybe a free day.
The Chassis Fee is calculated from the time the container is picked up till the time it is returned.
All is calculated depending on the distance covered by the truck and size of the load.
Every minute and distance covered is accounted and paid for.
A delay in pick-up and return might also be charged due to the inconveniences caused to the company.
On a free day, which happens once in a while, the customers are lucky to enjoy free pickups and deliveries.
Again, this is limited to the size of the load. Extra wait beyond the given one incurs charges.
Do Intermodal Trucking Quotes include Chassis Fee?
Intermodal Trucking Quotes cater for the transportation of the load via railway transport.
After that the load needs to be transported by trucks on the road to the given destination.
This road transport cost is charged separately.
The Intermodal Trucking Quotes expense is separate because the railway transport sector operates on its own while the road transport sector operates on its own.
The two have costs that are different too.
This is excluded when it comes to free days when the transport cost is not charged on customers.
Either way, if you use the company’s Chassis, they are allowed to pay the total amount of the transport cost once.
Note, the Chassis fee is calculated on its own and then added on the total amount.
Do Chassis Term Leases Protect Against Chassis Fee Spikes during Peak Seasons?
The shipment and trucking companies benefit a lot during on- peak times.
This is not influenced or changed by the Chassis Term Lease.
During the on-peak seasons, the Chassis Fee highly rises because of the high rate of demand in the market.
Chassis Term Leases only ensure that the Chassis Fee is well paid to the right receiver and in time.
It might cover for the average range of the Chassis Fee
What cost Benefits does Using an Asset-Based Carrier Provide as Compared to Using a Non-Asset-Based Carrier?
An asset -based Carrier is way cheaper since the company has their own equipment and works directly with you as the merchant.
The fact that the company already has equipment saves you time too.
To you as a business person, time is money.
On the other hand, the Non -asset-based Carrier is more expensive since it involves brokers who need a little more pay.
It also takes much time to access the Chassis.
In addition, the truck found might not be favorable to transport the given goods.
It might be way smaller than the size of the load.
This will incur a lot of unrealistic charges since the track has to make many laps.
You can however cut the cost if you used an Asset-based carrier and was provided with a bigger and convenient truck instead.
How can I Pay my Chassis Fees?
Chassis Fee is paid to the shipment company involved. Each company has its own payment procedure and method.
Payment can be done through the till or to the account given by the company.
You should always alias with the company before making payment to avoid confusion or even losing cash to scammers.
Confirming with the company before making payment ensures security of the goods too.
It proves that you have received your goods safely and in good condition.
Will I still pay Usage Fees if I Cancel my Chassis Booking?
Chassis Fee calculation starts from the time the container is picked until it is returned.
It is only paid for after the load is transported to the given destination.
Therefore, as long as transportation has not occurred, nothing is paid for.
In cases where the delay was way much over time, you might be required to pay some fee for keeping them waiting.
This might be because of the inconvenience one has caused the company.
The Chassis in My Possession has been Impounded; Will it Affect the Total Chassis Fees I Am to Pay?
The time the you spend while in possession of the Chassis reflects the total charge of the Chassis Fee to be paid at the end.
However, in cases where the chassis is impounded, the company might be responsible for it.
This only happens if the problem is with the truck and not you as the customer.
The company should be responsible for such issues.
It is the company’s role to ensure the customer receives the load safely.
Does Chassis Fees Include Liability costs?
The Chassis Fee caters for the whole transportation process.
Liability issues might however call for additional costs.
It depends with weight and impact of the issue at hand.
If the liability is your fault such as overage and other illegal actions, you are totally responsible for these actions.
And will also pay for the over time charges.
What are the Possible Fees Involved with Late Chassis Pick-up or Return?
Since the Chassis Fee is calculated from the time the container is picked to the time it is returned.
A delay in pick-up or return increases the total cost of the fee charged.
If you delay to pick up your load, your rental Chassis Fee definitely increases as well.
To avoid this, you should pick up the load on time.
Late Chassis pick-up or return might also lead to discontinuation of various customer favors such as low Chassis Fee charge due to customer loyalty and reputation.
You might henceforth be charged normally or even higher because they stopped being loyal customers after all.
Is it Illegal to overage for Chassis?
An additional amount of weight might be added to the chassis more than the required one.
This should not be too much since overloading is prohibited.
In cases of overage, legal actions might be taken.
It is advisable for you to load the Chassis only with the required maximum weight.
If the load is too big, you have a choice of using a larger container or carrier that has more space and accommodates a bigger load.
If the truck is small, then the load transportation process can be done in bits.
It is better to pay more Chassis Fee than to face legal confrontation by the law.
For example non-adherence to transportation rules and regulations.
Can I avoid Chassis Fees?
Yes. If you bring your own chassis, then you are not charged.
In this case, you only pay for the shipment process.
This is easier as you simply pick up your goods from the company once they arrive.
Alternatively, you can depend on the company for transportation where you have to wait because the company does it depending its own schedule and operations.
If you use the company’s chassis then you must pay for the Chassis Fee.
In addition, if you opt to use a Non-asset-based carrier, you are more prone to paying more Chassis Fee because a broker must be involved.
Should I Include Chassis Fee in Total Landed Cost?
If you deal directly with the company, you can include the Chassis Fee in Total Landed cost.
This is because you use the company’s Chassis for transportation means.
You can therefore pay the total cost once together.
But if you have your own Chassis or using a broker then you should not include it at all.
However, you always have a choice of paying both the Chassis Fee separately in the Landing Cost.
This might be appropriate if there is a delay in picking up your load.
Are there any Accessorial Charges Involved in Chassis Usage?
Shipping container Chassis
This entirely depends if you are dealing with the Non-asset -based carrier or asset-based carrier.
In asset- based carrier, accessorial charges are avoided since the company has its own equipment.
They deal directly with you, unlike in Non-asset based scenarios where you have to pay the broker to access the Chassis.
In addition, you might be required to pay more charges since brokers usually do not have their own equipment.
This is way much expensive to the customer or merchant.
I hope this guide has clarified everything you need to know about Chassis fee.
However, in case you have any question, feel free to ask us.
BanSar will help you with all your freight forwarding services.