Insights - March/April 2018 - 21

effort to enhance equipment utilization and manage costs.
For example, a pool of pools was formed in Southern
California by TRAC Intermodal, Direct ChassisLink and FlexiVan.
TRAC Intermodal's CEO Keith Lovetro told Insights the pool of
pools was working well overall for
motor carriers. He noted though that
the structure maintained individual
business rules, such as maintenance,
for each IEP that limited the efficiency
from the IEP's standpoint.
The Consolidated Chassis
Management pool, formed through
the Ocean Carrier Equipment
Management Association, has
expanded geographical operations
Lovetro
since the TRB report. An effort to form
a New York/New Jersey area pool, with participation by all IEPs,
hasn't yet come to fruition. However, a pool created by FlexiVan
and the North American Chassis Pool Cooperative began
operations in April.

Premium Equipment Options
Premium equipment options have been offered, in addition
to the general improvement in chassis condition. A definite
trend toward grounded chassis has emerged, at least at marine
terminals.
Jon Poelma, president of Consolidated Chassis Management,
spotlighted several key steps in the market's evolution.

"Equipment is gradually being upgraded and we are seeing significant
purchases of new equipment," he told
Insights. "We have seen a number of
new entrants into the international
chassis market. This includes but
is not limited to the North American
Chassis Pool Cooperative, Milestone
and American Intermodal Management."
"Motor carriers have taken on a
Poelma
number of long-term leases in addition
to purchasing their own equipment," he added. "We have seen a
number of new entrants into the international chassis market.
This includes but is not limited to the North American Chassis
Pool Cooperative, Milestone and American Intermodal Management."
"In 2017, we launched and currently operate 3 premium chassis pools at major intermodal locations and expect to expand
these operations in the near future."
Greg Moore, executive vice president of FlexiVan, noted that
the increased pool activity and related service has improved the
chassis experience and increased competition.

'Slow and Uneven Progress'
"It's a misnomer to say that ocean lines are completely out of
the chassis business," said Jason Hilsenbeck, president of LoadMatch, identifying a sticky issue in the provisioning process that is
yet to be resolved. Actually, he said, some
steamship lines remain very involved in the
supply process by controlling who can use
the assets through contract arrangements.
"The lines pulled out of the chassis
business pretty quickly and there was
not time for any system to emerge," said
Dan Smith, a principal at consultant Tioga
Group. Each ocean carrier took its own
approach to divesting chassis on its own
timetable, at a time when the lines were
under intense financial pressure to trim
unproductive and unprofitable activity such
as chassis supply.
The result was "slow and uneven
progress" in the ocean carrier portion of
the chassis market, Smith said. While the
lines were eager to sell the equipment,
they wanted to retain guaranteed supply to
move their freight. The leasing company
buyers, in search of a base equipment
supply, agreed to those terms. However,
the truckers often couldn't choose where to
source the equipment.
"These legacy rules are causing more
inefficiencies," such as time-consuming
and costly extra moves for truckers to
match up equipment, Smith said. "As a
result, we are nowhere near a place where
I can use a chassis for any place where I
can use any container."
March/April 2018 | Intermodal Insights

http://www.kiswaninational.com

Table of Contents for the Digital Edition of Insights - March/April 2018