Page 118: of Maritime Reporter Magazine (August 2018)

INTERMODAL PORT LOGISTICTS

Chasing the Perfect Chassis

The most important part of the domestic waterfront that you never heard of is heating up. The stakes are huge and, for the North Ameri- can intermodal supply chain, failure is not an option.

BY JOSEPH KEEFE

In a tersely worded, late July press re- Changing Chassis Landscape MLPro, “There is a lot of waste in inter- because the most recent edition of the lease, the Federal Maritime Commission In response to July’s FMC announce- modal, and if I were back in the shipping Descartes Datamyne U.S. Port Report (FMC) announced that ‘Ports in South ment, TRAC’s CEO provided a pre- line industry, that’s where I would focus. (for 2017) showed that just two of the

Carolina and Georgia would be able to pared statement. “TRAC Intermodal is I also see some opportunities in the chas- nation’s top 20 boxports experienced establish a Common Chassis Pool.’ That a long-time contributor to the current sis ? eet area, and demurrage and deten- a drop in TEU volume from the previ- seemingly innocuous bit of news might South Atlantic Chassis Pool (SACP) tion can be more effectively handled.” ous year, and one of those – Tacoma not resonate with anyone outside of the that is managed by Consolidated Chassis He might get his wish. – involved the shift of cargo within rapidly expanding southeastern United Management (CCM). We’ve contributed More recently, the Georgia Ports Au- the young Northwest Port Seaport Alli-

States, but here, it likely heralds one of close to 15,000 TRAC chassis to sup- thority and SCPA both said in a prepared ance, and the port of Seattle. The robust the most important changes in container port our customers’ shipping needs in statement that, “Both South Carolina and national numbers have, by and large, port logistics in more than a decade. the SACP,” said Lovetro, adding, “As Georgia are pleased to be moving for- continued to increase. Combined traf-

No one knows that fact any better than the current pool shifts to the new South- ward with the proposed SSCP agreement ? c to Savannah and Charleston alone

Keith Lovetro, then the President & CEO ern States Chassis Pool (SSCP), TRAC in an effort to add chassis to the current increased 10 percent last year, and that of TRAC Intermodal – the largest pool Intermodal will continue to support the pool. GPA and SCPA hope to not only trend has continued in 2018. Hence, if manager and chassis supplier in North growth in the South Atlantic Ports by up- increase the number of chassis in the traf? c is increasing then it would follow

America. He has since retired. Lovetro, grading all of our currently contributed Southeast ? eet but improve the quality that chassis demand should follow. And in June, well prior to the FMC edict, told chassis to include radial tires, LED lights and provide an at-cost model to support TRAC is adding capacity daily.

MLPro, “We concentrate on rebalancing and ABS braking systems. A large por- the growth in containerized trade in the Lovetro and SCPA’s Newsome agree our ? eet to make sure that we have avail- tion of these upgrades will be made with Southeast.” Hence, the move involves on one thing: the quality of the chassis able ? eet where demand is taking place. our refurbished chassis which include three metrics; availability of equipment, asset has always been an issue. Where

Then consider adding to the ? eet to make not only radial tires and LED lights but quality of assets and price. Most impor- they might diverge concerns what being sure that it’s sized properly. And then, also new ABS brakes and airing systems, tant in all of that, perhaps was the men- done about the problem, and how fast it having equipment repaired and ready new electrical wiring harnesses and new- tion of price. is getting done.

to go – those are the three variables. So, ly applied anti-corrosive “TRAC Blue” For his part, Keith Lovetro addressed Lovetro says it boils down to a few it means having equipment in the right paint. We’ve also offered to add an addi- all three concerns, one at a time. And, he common denominators. “When the chas- place, a quantity of ? eet to match de- tional 3,000 newly manufactured chassis brought up a fourth – one which doesn’t sis were principally owned and/or man- mand, and then equipment well-repaired to the SSCP to help ensure that the Ports get nearly enough discussion. aged by the steamship lines, they did it and available for use.” have the needed supply of chassis to sup- In terms of chassis supply, he insists differently. Today, it’s a core business

In a perfect world, then, and assuming port their anticipated growth.” that there isn’t necessarily a huge prob- for a company like TRAC Intermodal, that TRAC’s actions match Lovetro’s In other words, TRAC will continue lem at the present time. In fact, he said, so improving the quality of the rolling language, it would seem like TRAC is to be active in the same markets, regard- “We have 180,000 marine chassis and stock, improving the chassis, is a key ideally positioned to provide exactly less of what the FMC edict means for by the end of this year we’ll have closer goal of ours. We’re constantly looking at what shippers and ports need and want. the broader markets. Closer to home in to 190,000 because we’re adding ? eet. evolving the equipment and improving

But, the latest salvo from the FMC – Charleston, the sea change in control for But we don’t see there being a conges- it. And so we improve it by doing a cou- the federal maritime watchdog – sug- shore-based chassis assets was a long tion point in the system today. These are ple things: ? rst, and the easiest, is simply gests that all is not perfect in paradise. A time coming, and not a surprising devel- very dynamic situations. As cargo comes by adding new equipment. And this year, deeper look at the issues provides better opment. In the fourth quarter of 2016, in or cargo moves around, that picture we’re adding about 7,000 new chassis perspective. South Carolina Ports Authority (SCPA) changes hourly if not more frequently.” and we’re taking delivery of those even

President and CEO Jim Newsome told TRAC’s CEO may have a point. That’s starting now.” 118 Maritime Reporter & Engineering News • AUGUST 2018

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