Southern California’s Supply Chains May Get Some Relief

As U.S. West Coast ports begin to address their critical congestion issues, an innovative approach is being launched at San Pedro Bay.

According to spokesmen for the Ports of Los Angeles and Long Beach, implementation of a “gray chassis fleet” begins today.

Three companies that own the vast majority of chassis serving both ports are on track to activate a “gray chassis fleet” of truck-trailers on March 1, a move that should improve the flow of goods through the nation’s busiest harbor complex.

As noted in LM last month, this idea surfaced while labor/management negotiations were at their nadir.

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 – the wheeled trailers used by trucks to haul cargo containers.

Eleven of the 13 container terminals at the San Pedro Bay ports, as well as the off-dock rail yards, are expected to participate. The two remaining marine container terminals use their own equipment, but could opt to participate in the future.

Port of Long Beach Chief Executive Jon Slangerup, noted that this is an “historic agreement.”

Marine terminals have experienced a “chassis imbalance,” created by non-interoperable chassis pools, which has led to delays. The new pact allows more than 80 percent of chassis in service at the ports of Long Beach and Los Angeles to be used interchangeably, which will greatly improve the ease and efficiency of obtaining chassis.

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. The pools will remain commercially independent, with each chassis provider competing for business and setting its own leasing terms and rates. A separate third-party service provider will manage billing and other proprietary information.

California’s other great load center – The Port of Oakland – continues, meanwhile, to provide operational status update sent daily to hundreds of harbor truckers, ocean carriers and shippers to improve supply chain planning.

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