Today, I will take you through another popular term in the freight industry – chassis pool.
So, if you want to know what it is, why it is important and when to use it, read this guide.
- What is Chassis Pool?
- Who Owns and Operates Chassis Pools?
- How many Types of Chassis Pools are there?
- What is the Difference Between Proprietary Chassis Pool and Third-party Operated Pool?
- What is a ‘Gray’ Pool?
- What is the Benefit of â€˜Gray’ Chassis Pool to Shippers?
- Who are the Main Participants in Chassis Pools?
- What Happens if Chassis Pool is Located in a Different area than the Container Pick-up?
- What is the Difference Between Domestic and International Chassis Pool?
- What are Pool Chassis Agreement, and what do they Entail?
- What is the Benefit of the Chassis Pool Agreement?
- How are Usage Rates Determined in Chassis Pools?
- Who Oversees Maintenance and Repairs at Chassis Pools?
- Who is responsible for decision-making in Cooperative Chassis Pool?
- Must all Cooperative Chassis Pools be Located at the Operating Terminal?
- How are Chassis Pool Locations Determined?
- What are the critical Characteristics of the Coop Chassis Pool Model?
- What is the General Process of Picking Up the Chassis and Container in the Chassis Pool?
- What is the Difference Between US and International Chassis Pools?
- How do Chassis Pool Operators ensure equipment Quality and Safety?
- Can poor Chassis Pools Quality in the Pool Environment Impact my Delivery Schedule?
- How do Chassis Pools Contribute to Terminal Efficiency?
- What Value can taking Control of my Chassis to add to My Business?
- How do you Identify Pool Chassis on Terminal?
- Who Leases Chassis in Pool?
- How much does it Cost to Buy a Chassis?
- Why do Pools have to Depend on Contributors for Chassis?
- Do Chassis Pools Manage Specialized Chassis such as Tri-axles?
- Can I choose my Chassis Provider in the Chassis Pool?
- How do I Choose Chassis in Pool Environment?
What is Chassis Pool?
It refers to storing Chassis near terminal areas or on/terminals across the country, for example, railyards and ocean terminals.
The main aim of a chassis pool is to support everyday usage of intermodal Chassis by modal carriers.
Who Owns and Operates Chassis Pools?
Chassis pools are owned and operated by Consolidated Chassis Management (CCM) with many types of participants like:
- Ocean carriers
- Leasing companies
- Motor carriers
- Other entities sourcing chassis from CCM pools
How many Types of Chassis Pools are there?
There are multiple types of chassis pools, some of which include:
- Proprietary collections like DCLP: it is a type of chassis pool in which the equipment management is owned and managed through the same entity.
These pools allow for investment in operational efficiency, safety, and fleet quality to ensure the delivery of a great trucker experience.
- Gray pools: it is whereby several IEPs contribute Chassis to a given collection, thereby allowing truckers to use the contributed IEPs chassis during movement.
An assigned manager will run the pool with each IEP will charge their selected rates depending on the commercial agreements with motor and ocean carriers.
- The third-party operated pools: managed by a single entity and source equipment from several parties, mostly IEPs and leasing companies.
The pool manager is responsible for all pool operation costs and billing for Chassis usage by motor carriers.
What is the Difference Between Proprietary Chassis Pool and Third-party Operated Pool?
The same entity manages the Proprietary chassis pool.
On the other hand, the third-party operated collection is managed by a single entity, although equipment is mainly sourced from different parties.
In the third-party operated pools, the equipment owners are mostly IEPs and chassis leasing companies, contributing assets.
Proprietary collections offer IEPs a chance to upgrade Chassis, enhance users’ experience, and invest in technology.
Proprietary chassis pool grants direct control and management of Chassis, thus enhancing perfect customer service.
In the third-party operated collection, the pool manager is entirely responsible for all the costs of pool operation and billing of usage of Chassis to operators.
What is a ’Gray’ Pool?
It is a type of chassis pool whereby multiple numbers of IEPs contribute to one collection.
They then allow truckers to use any IEPs’ Chassis that is donated for any movement regardless of the containers of ocean carriers moving from one point.
Traditionally, the ‘gray’ pool running is by a single manager.
Then each IEP charges their set rates depending on their commercial agreements with ocean and motor carriers.
What is the Benefit of ‘Gray’ Chassis Pool to Shippers?
Some of the benefits of gray chassis pool to shippers include:
- ‘Gray’ chassis pool attendees are made up of the largest pool operators in the harbor, thus providing efficient services to shippers.
- It allows ports to cooperatively several issues concerning security, safety, congestion, infrastructure, and equipment.
It helps ensure that shippers’ truckers pulling a container and Chassis can deliver or pick up the equipment at any of the terminals in the harbor.
- The current situation at the ports has eased by the use of a ‘gray’ pool.
- ‘Gray’ pool allows Chassis to be interchanged with ease and even kept off/dock rather than at terminals. It grants shippers the ability of their Chassis to move freely both at the start and stop locations.
Who are the Main Participants in Chassis Pools?
The main participants in chassis pools include:
- United Arab
- Bridge Chassis
- Yang Ming Line
- Maersk Line
- China shipping
- Zim Line
- Motor Carriers Chassis Pool
- Med Shipping
- Direct Chassis Link
- NYK Line
- Hamburg Sud
- Hanjin Shipping
- TRAC Intermodal
- Hapag Lloyd
- Turkon Line
What Happens if Chassis Pool is Located in a Different area than the Container Pick-up?
If a chassis pool is located in a different area than the container pick-up, a split chassis fee will apply.
The trucking company will have to assess the Chassis split fee to cater for the costs of transporting the Chassis to the container location.
Chassis split refers to when the container’s location is not the same as that of the Chassis.
In case the ocean port does not possess any available chassis, the trucker first travels to a nearby chassis pool to collect the Chassis then proceed to the port.
Where applicable, a chassis slit fee will appear on your invoice in the form of a destination charge.
What is the Difference Between Domestic and International Chassis Pool?
The difference between domestic and international pools is the size of the Chassis.
Domestic chassis pool is 48’ and 58′ containers while global chassis pool is 20′, 40′, and 45′ containers.
What are Pool Chassis Agreement, and what do they Entail?
They are a set of rules to provide access to pool chassis at railroad maps, container yards, and maritime terminals.
Pool chassis agreement includes access.
Some examples of the Pool Chassis Agreement include:
- Management Agreement: this is for management and business functions.
- Contributor Agreement: contributor takes responsibility for the number and conditions of the Chassis at induction.
- Terminal License or Access Agreement: for the relationship with the terminal.
- M&RVendor agreement.
- User Agreement: for the entity which takes Chassis from the pool. The user has the liability to pool contributors for their operations.
What is the Benefit of the Chassis Pool Agreement?
Chassis Pool Agreement helps to improve the general operational efficiency and costs of repositioning.
It, in turn, leads to a reliable supply of equipment needed by motor carriers in given locations.
How are Usage Rates Determined in Chassis Pools?
The usage rates are determined by the start and stop (origination and ending) at the gate of the shared pool location.
Who Oversees Maintenance and Repairs at Chassis Pools?
The pool manager oversees the maintenance and repairs at the chassis pool.
Who is responsible for decision-making in Cooperative Chassis Pool?
Decision-making in a cooperative chassis pool is made collectively by the members that have pulled their equipment together.
These include a collection of steamship lines.
Must all Cooperative Chassis Pools be Located at the Operating Terminal?
Yes, all cooperative chassis pools must be located at the operating terminals to ensure the following benefits:
- Faster terminal throughput.
- Increased utilization of the terminal.
- Economies of scale.
- Reduction in costs of repositioning.
- Improved utilization of assets.
- Reduction in the expenses of maintenance and repair.
- Higher turn time and velocity.
How are Chassis Pool Locations Determined?
Chassis pool locations are determined depending on the efficiencies received by the participants for serving given areas.
Some of the examples of chassis pool locations include:
- Typical areas: for instance, ocean terminals or rails. It is where bare Chassis is made available to any pool participant, and several members are present.
- Non-common locations: for example, container yards. They are selected by members and are locations that have little or lack efficiency for chassis exchange between participants.
What are the critical Characteristics of the Coop Chassis Pool Model?
Some of the critical characteristics of the Coop Chassis pool model include:
- A given percentage of equipment is supplied by each member, relative to their future or historical trends of usage.
- Made up of a collection of steamship lines that have pooled their equipment together.
- Members cater for expenses like repositioning costs and maintenance and repair costs.
- The third-party manager is only able to get a fee for management.
What is the General Process of Picking Up the Chassis and Container in the Chassis Pool?
The general process of picking up Chassis and shipping container chassis pool is based on several factors, which include:
- Size: they come in different ranges of sizes, making it possible to set the most appropriate ones for your needs.
- Load capacity: the load capacity of most transportation mediums ranges between twenty tons to forty tons. For heavy applications, it is good to consider forty tons and use the twenty tons option for lighter applications.
- Design: pick a strategy that will meet the requirements of your specific needs.
- Cost: this is a significant factor when picking up Chassis and containers in the chassis pool. It is essential to stick to your budget and select a kind that will serve your functions and be affordable.
What is the Difference Between US and International Chassis Pools?
US chassis pools, in most cases, are designed to specific container sizes of about 40’ and 20 ‘and contain two axles.
They are very light in weight compared to international chassis pools due to the US nation gross weight standards of vehicles.
Chassis pools in the US have a storage function that is mainly unique to its country.
On the other hand, international chassis pools are often left at the shippers’ facilities for loading and unloading.
The US has over seven hundred thousand chassis pools, of which almost eighty percent are standards ocean container chassis.
In comparison to international chassis pools, the US operates so many Chassis than overseas jurisdiction.
Chassis is operated and supplied independently by ocean carriers in the US just as part of its delivery.
Internationally, chassis tend to be provided by motor carriers and always stay connected to the truck.
How do Chassis Pool Operators ensure equipment Quality and Safety?
Chassis pool operators ensure equipment quality and safety by implementing the following measures:
- Establishing fleet standards.
- Conducting pre and post-repair inspection services.
- Carrying out general condition audits.
- Keeping proper records.
- Ensuring compliance with the standards in place.
- Designing methods for a single resource, procedure approval, and payment process.
Can poor Chassis Pools Quality in the Pool Environment Impact my Delivery Schedule?
Yes, poor chassis pool quality in the pool environment can impact your delivery schedule.
Chassis pools bring about so many benefits, but it is essential to ensure that they are structured correctly.
Chassis pools that are poorly designed may lead to inefficiency, and this might cause delays in your delivery schedule.
How do Chassis Pools Contribute to Terminal Efficiency?
Chassis contribute to terminal efficiency by reclaiming scarce acreage and, in this way, reducing the number of stored Chassis.
Chassis pool enables operating savings by reducing the combined inventory levels and the repair and maintenance economies of scale.
They also ensure terminal efficiency by decreasing the risk of Chassis, which is caused by service failures.
What Value can taking Control of my Chassis to add to My Business?
Some of the values that taking control of your Chassis may add to your business include:
- Improved utilization: it will ensure that resources in your business are used efficiently, and there is no wastage.
- Regional efficiencies: taking control of your Chassis will ensure that there is minor repositioning.
- Standardized maintenance and repairs: this will, in turn, ensure safety and reliability in your business.
- Centralized inventory control: taking control of your Chassis will make you able to carry out forecasting and repositioning, thus significantly improving your business.
- Reduces congestion: there will be reduced truck turn time and positive environmental benefits to your business.
How do you Identify Pool Chassis on Terminal?
All pool chassis are stenciled to enable easy identification as part of a specific terminal.
- DCLP chassis are stenciled with a ‘’DCLI’’ marking.
- LABP chassis stenciled with ‘’LABP’’ marking.
- GACP chassis are stenciled with either ‘’TNWA’’ or ‘’GACP’’ marking.
In this way, pool chassis can be collected with a container identification number at any start or stop locations and the terminal.
Who Leases Chassis in Pool?
Chassis in a pool is leased by leasing companies whose provision ranges from daily lease to fleet options dedicated.
How much does it Cost to Buy a Chassis?
Volume discounts apply when buying a chassis, just like any other purchase.
In case you are just purchasing a few new Chassis units, the price you will pay would be under $10000.
However, it is essential to note that the value of Chassis depreciates over time.
Also, note that Chassis that are old and well maintained serve as new ones.
Why do Pools have to Depend on Contributors for Chassis?
Pools have to depend on contributors for Chassis because of the cooperative aspect of the pool structure.
This structure has catered to its members, who all possess their fleet to contribute.
Do Chassis Pools Manage Specialized Chassis such as Tri-axles?
Yes, the chassis pool manages specialized Chassis such as triaxles.
They do this by imposing a tri-axle chassis fee after assessing if an FCL shipment moving by truck is overweight.
Can I choose my Chassis Provider in the Chassis Pool?
In most cases, there is little choice in choosing your chassis provider in the chassis pool.
Mostly, a container is put on a chassis at the rail or ocean terminal before the motor carrier comes to pick it up.
The chassis provider is primarily determined unless your container is taken off the Chassis and loaded on another.
However, there are several chassis’ providers within the CCM pool, and most of them take part in a program.
This program allows you to select a chassis provider without changing the container to a new chassis.
How do I Choose Chassis in Pool Environment?
You can choose a chassis in a pool environment under the following conditions:
- Your terms
- With your chassis provider
- Your rate
You can be allowed to select your preferred Chassis in its pools on specified movement, although there are some restrictions.
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