NACPC Announces General Rate Increase (GRI)

The North American Chassis Pool Cooperative (NACPC), continues to respond to our customers’ needs.  Expanding our footprint and investing in new equipment, during 2018, we added over 5700 new chassis into our fleet, all equipped with radial tires, LED lights and ABS.

We currently operate in five major pools, COCP, SACP, MCCP, MWCP and GCCP. As we continue to expand and add equipment, we are announcing a General Rate Increase (GRI), effective March 15, 2019.

Our objective of keeping chassis use cost competitive, helping drive our customer’s business forward and increasing their bottom line, remains unchanged.

Our commitment to superior equipment is unwavering.  Providing quality equipment with our “at-cost” pricing model is NACPC’s commitment to the intermodal community.

Presently we support Ocean Carriers, Motor Carriers, BCOs NVOCCs and 3PLs with a superior chassis solution at competitive prices. With your backing we look forward to continuing support of your chassis needs.

Effective March 15, 2019, NACPC will apply a General Rate Increase (GRI)

 

NACPC GRI

Pricing does not include any applicable taxes

Please contact our customer service representatives with any questions.

NACPC

Memphis-grown IMC helps ‘move the needle’ on critical piece of supply chain

It takes time to reinvent the wheels that move boxloads of imported goods that stock the shelves of retailers like Walmart and Target.

If it weren’t for wheeled intermodal chassis, those shipping containers couldn’t move from rail yards to distribution centers, which makes them a hot commodity among specialists in the container hauling, or drayage business, such as Memphis-based IMC Companies.

“In many ways that trucking piece, that first mile, last mile, is so taken for granted. And those wheels are taken for granted,” said Donna Lemm, executive vice president of sales at IMC Companies.

Shortages of quality chassis have been blamed for heaping more stress on already beleaguered truckers, stranding products at intermodal yards for days and jacking up costs for shippers. It’s more of an issue in Memphis than other places because the area is a leading distribution center and home to five intermodal railroad terminals.

A sea change in the industry – ocean shipping companies divesting the chassis business – set off a scramble to control the chassis supply earlier this decade. Before 2010, the chassis and container were considered a single asset provided by the ocean lines.

A dozen firms, including IMC Companies, banded together to create a potential new paradigm: a nonprofit pool for supplying intermodal chassis, known as the North American Chassis Pool Cooperative (NACPC).

IMC chairman Mark George described the fledgling NACPC pool in 2013 as an alternative to letting leasing companies dictate supplies and prices of chassis.

Lemm said, “As leaders in the trucking community, IMC is the largest drayage provider in the United States. We’re trying to provide solutions. That’s why NACPC came together. So far it’s proving to be one of the most certainly viable solutions that’s been presented since this unbundling (of containers and chassis) a few years ago.”

The cooperative initially supplied about 1,300 chassis in the Memphis region, where there were an estimated 20,000 chassis in use at the time, out of a nationwide supply of 500,000.

The nonprofit’s Mid-South Chassis Consolidated Pool, which also serves the Nashville and Huntsville, Alabama markets, has grown to 5,780 chassis. Its primary for-profit competitors in the Memphis market include TRAC Intermodal and Direct ChassisLink Inc. (DCLI).

Safer, lower cost option for moving containers?

Proponents believe the industry’s needs could be better met by wider adoption of a nonprofit model that provides up-to-date equipment with the latest safety features at a 30-40 percent discount compared to for-profit providers.

“We believe our solution is the right solution,” Lemm said. “Is it perfect? No. We certainly have our issues. One of the issues that we’re facing today is that we still have these three pools in Memphis. They’re competing pools. We have an issue today with supply, and because we’re only one of three providers, it’s very difficult for us to provide true solutions to everybody,” Lemm said.

The latest entries were ports of Georgia and South Carolina, which chose NACPC to operate the Southern States Chassis Pool last year.

Port officials said they hoped to increase supply, improve quality and control costs, ultimately boosting capacity to handle growth in containerized freight in the Southeast.

“… These two major ports came together and said, ‘I need one manager, I need accountability. We need chassis when we need them, where we need them,’ ” Lemm said.

The Memphis pool began with a mix of new and used chassis. It has since been standardized with all new or refurbished equipment with radial tires, anti-lock brakes, LED lighting and other safety features. The average chassis in the U.S. is 20 years old, Lemm said.

IMC Chassis Services refurbishes chassis in a shop at its Brooks Road depot west of Memphis International Airport.

Equipment issues hit home for drivers

Safer equipment helps trucking companies attract and retain drivers during a time of increasing competition for personnel.

Lemm recalled riding along with a company driver who was searching for a chassis to pick up a container. “We come across a NACPC chassis and my driver says, ‘You know every time I get a NACPC chassis, it’s like Christmas.’ ”

“I said ‘Why?’ He said ‘Because I’ve got six kids. You know on a hot day in Memphis it’s 100 degrees. I want to be driving one with new tires, I need radial tires, I need anti-lock brakes.’ It was certainly something that hit home. I’m very mindful of the need to have quality chassis on the road,” Lemm said.

In addition to safety concerns, chassis supply affects drivers and their employers in productivity. With strict limits on hours drivers can be behind the wheel, the amount of time they spend looking for a chassis cuts into time available to actually move containers from Point A to Point B.

Chassis supply issues, along with tighter reins on drivers, were blamed last winter for widespread groundings of intermodal containers at yards in Memphis and Chicago.

The national pool owns about 18,000 chassis spread across seven regions, all east of the Rocky Mountains. It hasn’t yet cracked the West Coast market and the busy port of Los Angeles/Long Beach.

Trade conflict pushing volume surge

FedEx Logistics president and chief executive Richard W. Smith said the glut of ocean freight flowing to the Los Angeles area has been pronounced as companies have tried to stay ahead of a trade conflict between the U.S. and China.

The BNSF, Union Pacific and CN railroads, which all operate major intermodal yards in the Memphis area, are major movers of container freight arriving from Asia at Pacific ports.

The surge in freight could portend another logjam at inland intermodal facilities such as Memphis.

“There was an incredibly strong demand into the U.S. ahead of the originally planned January tariff, even though it was rolled back,” Smith told the Memphis World Trade Club on Jan. 22. “We may see that again if the same situation arises in the next couple months.”

Lemm said, “We’ve heard the argument we only have chassis shortages on occasion. ‘It’s a one off.’ The truth of the matter is our industry is pretty cyclical. We believe that these issues of volume not meeting demand, these are systemic challenges.

“The issue today is totally exacerbated by this surge of volume, but our contention is, we’re going into weather, we’re going into Chinese New Year. This isn’t going away,” Lemm said.

“What happens when we have a surge of equipment, a surge of containers as we do right now? We’ve got a lot of imports moving in, to beat, at the time, the tariffs, and you have a finite pool (of chassis),” Lemm said.

“I will tell you with all the best forecasting and communication in the world, it’s very challenging to continue to meet the demand,” she said.

“That’s why we believe if we’re able to have choice, if we’re able to continue to go in with our own chassis, with the emphasis on us as truckers, us as shippers, to be able to control our own destiny. That’s where we’re moving. That’s certainly what we’ve been so vocal about. But in the meantime, we’re moving the needle,” Lemm said.

 

SOURCE: Daily Memphian

NACPC Gets Approval to Run Chassis Pool at Georgia, South Carolina Ports

Chassis pool operations at ports in Georgia and South Carolina will shift later this year to a new entity created by the North American Chassis Pool Cooperative, and equipment at the facilities will be expanded and undergo a series of improvements, the group said.

The Federal Maritime Commission on Aug. 2 gave final approval to the Georgia Ports Authority and the South Carolina Ports Authority to shift pool operations to a new entity created by NACPC called the Southern States Chassis Pool.

“Both South Carolina and Georgia are pleased to be moving forward with the proposed SSCP agreement in an effort to add chassis to the current pool,” the two ports said in a statement provided to Transport Topics. “GPA and SCPA hope to not only increase the number of chassis in the Southeast fleet, but improve the quality and provide an at-cost model to support the growth in containerized trade in the Southeast.”

While NACPC will own and operate the new entity, equipment and personnel from the ports’ previous chassis provider, Consolidated Chassis Management, will remain in place, said Dave Manning, president of Nashville, Tenn.-based transportation company TCW and chairman of NACPC. Manning also is chairman of American Trucking Associations.

“We will be contracting with CCM to manage the new pool…instead of CCM owning the pool,” Manning told TT. NACPC is a chassis pool cooperative founded in 2012 by TCW and 10 other trucking companies. A chassis pool consists of a group of third-party owned chassis domiciled at a facility and available to shipping lines and truckers for short-term rental.

Seafaring ports in Jacksonville, Fla., Tampa and North Carolina have been invited to join the new pool, NACPC said.

It will take more than a year to complete the full transition from CCM to NACPC, Manning said. During that time, the group will respond to concerns about chassis shortages in the southeastern United States by expanding the number of available chassis at the facilities from the current 52,000 and complete some upgrades, Manning said.

“There is an 18-month plan for it all to be upgraded to radial tires, LED lights and [anti-lock brakes] plus add the five-to-10,000 new chassis to the fleet,” Manning said.

The switch to radial tires is especially important in these regions, he noted.

“Particularly in the southeast, where you have a lot of overweight loads, with heat and with long distance, bias ply tires just do not hold up. They fail,” Manning said. “You got drivers who think they’re going to spend 10 hours on a trip and they wind up spending 14, because they spent four hours on the side of the road, waiting for a bias ply tire.”

The port authorities in Georgia and South Carolina said they are responding to the demands of drivers who want better equipment.

NACPC

Containers at the Port of Charleston, S.C. (Ariana Lindquist/Bloomberg News)

NACPC said the additional chassis will dramatically improve availability of equipment at the ports and reduce the spot shortages that take place during peak periods. The goal is to reduce to 65% from 85% the number of chassis that are in service at any one time, Manning said. By doing that, NACPC said it should always have enough chassis on hand and be able to also cover maintenance and other issues.

While NACPC has not yet set its chassis rental fee, others it operates typically charge $14 to $15 dollars a day. Truckers will pay a single rate, and the service will be provided with at-cost pricing with no profits distributed to NACPC’s owners, Manning said.

NACPC said response from the trucking industry has been positive, but some marine carriers have expressed apprehension since their costs will likely increase. “For the market it’s a good thing, but if you’re a steamship line paying at below cost today, at cost doesn’t sound too good,” Manning said. “The truckers and business capacity owners will be paying less and the marine carriers will be paying a little more than they have in the past, but still, as a whole it’s an at-cost price — which is hard to argue against.”

 

SOURCE: Transport Topics 

NACPC to Head Up New Southern States Chassis Pool, Southern Region Set to Benefit From Better Quality

Nashville, TN (June 28, 2018) – The North American Chassis Pool Cooperative (NACPC) has been chosen by the Georgia and South Carolina Port Authorities to operate the proposed new Southern States Chassis Pool.  This new pool will cover the ports in South Carolina and Georgia along with the inland terminals in both states plus Florida and North Carolina. North Carolina and Jacksonville Ports have been invited to join as well.  Pending approval, the pool will go into operation mid to late third quarter.

The new pool is expected to add 3,900 new chassis at start up and a total of 10,000 new chassis within the first 6 months to address the chassis shortage in this market.  Over the first 18 months of operation, the existing fleet transferring from the current pool will continue to be upgraded with radials and LED lighting. Despite a modest increase in supply over the last several years, truckers, intermediaries and beneficial cargo owners (BCOs) require more than what has currently been made available. 

“NACPC envisions the new pool embracing some premium chassis features as the new standard for the intermodal market.  The trucking community has requested radial tires and LED lights for a couple decades, now is the time for change and make premium features the new standard.  Along with this, ABS has been standard on chassis for over 15 years yet over half the fleet is still lacking due to age.  This is a minimum safety feature all equipment should be upgraded to along with radials and led lighting.” NACPC’s executive vice president Jeffrey Dudenhefer said.

Improved condition of the chassis fleet along with the flexibility for ports to focus on seasonal demand spikes in the region, will allow the ports to keep up with the explosive growth in containerized trade in the Southeast.

NACPC, a trucker-founded chassis provider, will own and operate the Southern States Chassis Pool. Truckers will pay a single rate, regardless of which equipment provider is stenciled on the chassis, and the service will be provided with at-cost pricing – no profits will be distributed to NACPC owners, according to chairman Dave Manning. Other operational specifics, he said, would have to be figured out after the Federal Maritime Commission (FMC) rules on the application.

 

About NACPC

The North American Chassis Pool Cooperative, or NACPC, was founded in 2012 with the goal of providing a modern fleet of chassis to users with at cost pricing. The cooperative is committed to supporting the U.S. intermodal container network with an efficient chassis inventory. Use of NACPC chassis is open to all qualified motor carriers.

Currently, NACPC operates more than 20,000 chassis in five CCM managed pools; MCCP, COCP, MWCP, GCCP and SACP.  As well as a new pool OCEA-N, established to service the ports of New York / New Jersey.  This pool is governed jointly by FlexiVan and NACPC, promoting all premium chassis.

For more information, please visit www.NACPC.org.

NACPC 1,200 New Chassis

NACPC Announces a General Rate Increase (GRI)

February 14, 2018 – Nashville, TN With overwhelming support of our customers, the North American Chassis Pool Cooperative (NACPC), continues to invest in new equipment and expand our footprint. During 2017, we added over 3,500 new units into our fleet, all equipped with radial tires, LED lights and ABS.

As NACPC continues to add thousands of new units, we are announcing a General Rate Increase (GRI), in the COCP, SACP, MCCP, and GCCP effective March 15, 2018. Important to note, NACPC has not increased pricing since 2013.

Our objective of keeping chassis use cost competitive, helping drive our customer’s business forward and increasing their bottom line, remains unchanged.  Providing quality equipment with our “at-cost” pricing model is NACPC’s commitment to the intermodal community.

We currently operate in five major pools, COCP, SACP, MCCP, MWCP and GCCP and continue to move forward in Northeast. Our commitment to quality equipment is unwavering.

Presently we support Motor Carriers, BCOs, NVOCCs and 3PLs with a superior chassis solution at competitive prices. With your backing we look forward to continuing support of your chassis needs.

 

Effective March 15, 2018, NACPC will apply a General Rate Increase (GRI)

 

Pool Area MH Rate Effective

3-15-2018

COCP IL, IN, KY, MI, OH $15.25
MCCP AL (Huntsville), TN $15.25
SACP GA, NC, SC, FL $13.00
GCCP AL, TX, LA $13.00

Pricing does not include any applicable taxes.

Regarding Trucking

Author: Dave Manning

Recently I had the opportunity to sit down with Robert Haag, the host of the podcast “Regarding Trucking,” and discuss my personal journey to the role of President at TCW Inc. and Chairman of North America Chassis Pool Cooperative (NACPC). “Regarding Trucking” is a one-on-one, in-depth, interview podcast with the people who make the trucking industry what it is today and where it will be tomorrow. The podcast shares knowledge, beliefs and leadership skills to inspire us all to do great things.

From working on my family’s farm to graduating college and driving truck for my uncle, I earned my PhD. from the school of hard knocks – it was a long and rewarding journey. However, to this day, I know that you are always responsible for performance regardless of the circumstances, and you can’t take the easy way out. If you have a commitment, you have to live up to it regardless of what adversity might come your way. We also discussed my involvement in the American Trucking Associations (ATA), Tennessee Trucking Association and Intermodal Association of North America (IANA) – the importance of these associations to advance the issues that we would all agree are important in our industry.

I’m energized by the opportunity in our industry right now, especially NACPC – what we are doing now and what the future will bring as we continue to support the intermodal network with an efficient supply and new fleet of chassis, at-cost. I hope you enjoy listening to this episode of the “Regarding Trucking” podcast and subscribe on Apple iTunes or Google Play to receive future episodes.