Insights - May/June 2018 - 13

CHASSIS - from page 11
wants more information, safety and security."
C & K Trucking CEO Mike Burton stressed the importance of
technology, too, particularly location-based technology. However,
he emphasized there is still work to be done on resolving how to
link the tractor with the chassis to gain maximum efficiency for
both pieces of equipment, rather than one or the other.
Speakers at the Business Meeting outlined additional complexities that arise in the pursuit of greater overall efficiency.
Sal Ferrigno, vice president of SSA Marine, said he was "hard
pressed to find anyone who doesn't like the idea" of chassis availability at off-dock facilities near ports. Terminal operators like
SSA are coping with increased volume and land costs that can
reach $200,000 an acre.
However, Burton said the off-dock facilities weren't as attractive to truckers because they can create additional drayage
moves and terminal stops for motor carriers.

"The entities that are paying for the
use of the equipment should be the
ones to make the choice [of chassis]."
- Charlie Wellins, president, FlexiVan

Experts focused many of their comments on pools.
From the ocean carrier side, Greg Tuthill, senior vice president of CMA CGM America, said the company would welcome
any interoperability in chassis pools, and floated the concept of
container pools.
Ferrigno praised the Southern California chassis arrangement
at the San Pedro Bay Port Complex, called a pool of pools, which
includes the major leasing companies.
In an interview, TRAC Intermodal CEO Keith Lovetro said offdock chassis pools have been showing promise in the New York/
New Jersey area.
Lovetro, a pool of pools
participant with TRAC, advocates for
a pool structure for the industry that
is focused on consistent practices,
rather than some existing operations
that are hampered by inconsistent
operational, maintenance, governance
and repair practices among pool
participants. He further noted the
pool of pools structure in Southern
Lovetro
California fits the latter mold because it
is inefficient for both IEPs and terminal operators, though it
has given motor carrier users interoperability that is beneficial
to them.
Jon Poelma, Consolidated Chassis Management's president,
focused his comments on equipment quality improvements in
its pool. That has taken the form of deploying additional, higherquality assets with radial tires, LED lights and other equipment,
both in pools and in equipment leased to truckers.

Open Choice Model
Motor carriers, including C & K, have emphasized the need for
wider adoption of "open choice" or "trucker choice" models, in which
truckers choose what chassis to use.
Dave Manning, who heads the North
American Chassis Pool Cooperative,
offered a working example of this model
- the newly operational open choice
pool started in the New York/New Jersey
area by the trucker-owned enterprise in
cooperation with FlexiVan.
FlexiVan is "a big supporter of open
choice," Wellins said. "We are coming
from a position where the entities that
are paying for the use of the equipment
Manning
should be the ones to make the choice [of
chassis]."
Tioga Group partner Dan Smith explained that other key financial
questions have to be addressed through an open choice model. In
order for that model to work, he said, motor carriers will need the
financial means to be able to acquire and provide multiple chassis
per power unit in order to literally support containers left at shippers'
docks.
"That can be a high hurdle for smaller truckers on tight margins,"
Smith said. "That cost makes it risky to commit to long-term leases.
At the same time, motor carriers have to plan for ocean freight surges
that create an acute need for more chassis."
In addition, Smith said there still is a large supply of older chassis
available, which reduces the incentive to buy new ones.
Eventually, he believes the chassis market will resemble over-theroad motor carriers' approach with a combination of owned equipment for base load customers and a blend of short and long-term
leases.

Goal Is Efficiency
Other truckers linked equipment efficiency with choice.
"Trucker choice is the ultimate goal," said Robert Loya, director of operations for CMI Transportation. He said the issue of
who controls the chassis still can be troublesome.
B.J. Tarver, chief operating officer at Gulf Winds International,
also said trucker choice was the
top-level issue for the motor carrier,
though the issue of efficiency in terminals is also important.
Steps that are needed, he said, include creating pools where they make
sense and don't exist today, such as
in Dallas. On the other hand, he said
pools don't seem to be needed in
Houston, where port officials encourage truckers to reuse chassis instead
Tarver
of swapping them out frequently.
Also noted was an emphasis on investment in new
equipment.
"We have seen a number of new entrants into the
international chassis market," Poelma said, citing companies
such as Milestone and American Intermodal Management. At
the same time, he said, motor carriers are increasingly acquiring

May/June 2018 | Intermodal Insights

13



Table of Contents for the Digital Edition of Insights - May/June 2018

IANA News
Operations & Maintenance Business Meeting 2018 Recap: Creating the Future of Intermodal
Intermodal Is on a Positive Path in 2018
Chassis Market’s Evolution Blends Promise, Challenges
Identifying the Missing Link in Chassis Maintenance
ELD Mandate Lessons: Opportunity, Compliance, Tech Issues
ELD Mandate Effect: Opportunity Beckons for Intermodal
Ocean Carrier Realignments Trigger Significant Change for Intermodal
Freight Report
Build Awareness of Intermodal to Attract Job Candidates
3PLs Adopt Technology to Enhance Customer Relationships
As Technology Changes Business Relationships, Personalization Still Matters
Voice of the Shipper
Government News
New Members
People News
Intermodal Calendar
Insights - May/June 2018 - Cover1
Insights - May/June 2018 - 2
Insights - May/June 2018 - 3
Insights - May/June 2018 - IANA News
Insights - May/June 2018 - Operations & Maintenance Business Meeting 2018 Recap: Creating the Future of Intermodal
Insights - May/June 2018 - 6
Insights - May/June 2018 - 7
Insights - May/June 2018 - 8
Insights - May/June 2018 - Intermodal Is on a Positive Path in 2018
Insights - May/June 2018 - 10
Insights - May/June 2018 - Chassis Market’s Evolution Blends Promise, Challenges
Insights - May/June 2018 - 12
Insights - May/June 2018 - 13
Insights - May/June 2018 - 14
Insights - May/June 2018 - Identifying the Missing Link in Chassis Maintenance
Insights - May/June 2018 - ELD Mandate Lessons: Opportunity, Compliance, Tech Issues
Insights - May/June 2018 - 17
Insights - May/June 2018 - ELD Mandate Effect: Opportunity Beckons for Intermodal
Insights - May/June 2018 - Ocean Carrier Realignments Trigger Significant Change for Intermodal
Insights - May/June 2018 - 20
Insights - May/June 2018 - 21
Insights - May/June 2018 - 22
Insights - May/June 2018 - Freight Report
Insights - May/June 2018 - Build Awareness of Intermodal to Attract Job Candidates
Insights - May/June 2018 - 25
Insights - May/June 2018 - 26
Insights - May/June 2018 - 27
Insights - May/June 2018 - 3PLs Adopt Technology to Enhance Customer Relationships
Insights - May/June 2018 - 29
Insights - May/June 2018 - 30
Insights - May/June 2018 - As Technology Changes Business Relationships, Personalization Still Matters
Insights - May/June 2018 - 32
Insights - May/June 2018 - 33
Insights - May/June 2018 - 34
Insights - May/June 2018 - Government News
Insights - May/June 2018 - 36
Insights - May/June 2018 - New Members
Insights - May/June 2018 - 38
Insights - May/June 2018 - 39
Insights - May/June 2018 - 40
Insights - May/June 2018 - 41
Insights - May/June 2018 - 42
Insights - May/June 2018 - Intermodal Calendar
Insights - May/June 2018 - Cover4
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