Built For the Intermodalist – Whitepaper

The intermodal industry has changed dramatically over the past ten years. As American companies capitalize on the global marketplace and import more goods into the country from its major trading partners in countries including: China, Canada, Mexico, Japan, Europe, and many others, the demand for marine chassis from shippers has increased. For 2018, imports increased 7.5% from 2017 to $3.12 trillion*. Beneficial cargo owners (BCOs) have received a considerable amount of pressure applied to their supply chains – everything from driver shortages to government regulation (i.e. electronic logging device [ELD] mandate) and tariffs.

Even with these challenges, an often-overlooked component of the intermodal supply chain solution has been chassis. Everything from access (capacity issues, inventory supply & demand and a network that varies region to region) to the quality (new, old, & refurbished), of the equipment that are being utilized – chassis play a critical role in a company’s bottom line and overall efficiency when moving goods across the nation.

By pulling the collective resources of the members to provide intermodal chassis, NACPC is able to offer at-cost pricing, which provides trucking companies significant savings compared to the competition.

 

Download the whitepaper 

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

Sam Farruggio

Member Spotlight – Farruggio’s Express

NACPC – Founded by Draymen for Draymen

For nearly a century, the goal of Farruggio’s Express has been simple: Do it right the first time. Sam Farruggio, President of the Bristol, Pennsylvania-based trucking and transportation company shares what sets NACPC apart from other gray pools in our latest Member Spotlight.

Tell us about Farruggio’s Express. What is unique about the company?

Our company was founded in 1920 by my grandfather who came over from Italy in 1907 to Ellis Island. I am a third generation Farruggio and have been with the company since 1969. We have the fourth generation with us since the mid 90s. We began our intermodal work many years ago as the container was born we were already serving the Eastern Ports. We all work to promote safety and provide the best value for our customers. After almost 100 years, we feel safety brings out the best.

Why are chassis pools important to the trucking industry?

We need to develop a better chassis to improve the safety of the industry. We need to bring a better mode to improve the operations of draymen and help improve turn times for drivers and customers, especially as the driver market shrinks.

As a member of NACPC, what benefits have you seen?

The quality of the equipment provides safer movement of cargo. It provides the driver with a feeling that he can make it to delivery without fearing a failure. NACPC equipment is setting the standard that all the larger leasing companies are following. And is allowing the cargo owners to feel safer that the goods they are waiting to arrive or ship will arrive in a state-of-the art unit.

What sets NACPC apart from the other gray pools?

It was founded by draymen for draymen and creates a safer and more equitable chassis for all to use.

What advice would you offer a company looking to join NACPC?

I believe you just need to see the equipment and talk to the team and you will find it’s a win-win for everyone.

 

 

 

 

NACPC Adds 1,000 New Chassis to Fleet in SACP to Accommodate Growing Demand for Equipment

Nashville, TN (May 23, 2018) – Due to growing demand, The North American Chassis Pool Cooperative (NACPC) is announcing the addition of 1,000 units to the South Atlantic Chassis Pool (SACP). These are all CIMC constructed chassis with LED lights, ABS, and OEM Radial tires and will all be operational by June 1st, 2018.

The new chassis would be an addition to the current pool operated by Consolidated Chassis Management (CCM) in SACP, which services a large region from Wilmington, North Carolina, to Jacksonville, and West to Atlanta.


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.

Contributory “gray pools” allow users to draw any chassis from the pool regardless of ownership. The contributory pool model thus eliminates duplicative costs and maximizes the use of limited space at port and or inland intermodal locations by obviating the need for a contributor to have its own chassis storage facility. It also ensures an adequate supply of chassis for all users.

Contributory gray pools foster competition by allowing motor carrier users to select from more than one chassis provider.

The pool managers are responsible for chassis logistics, inventory supply, maintenance and repair and the repositioning of the chassis, but usage arrangements are determined between the chassis contributor and its user.

Currently, NACPC operates more than 20,000 chassis in five CCM managed pools; MCCP, COCP, MWCP, GCCP and SACP as well as the new OCEAN-N pool; governed by FlexiVan and NACPC, where data is managed by CCM and M& R is managed by FlexiVan.

OCEA-N Pool to Start May 14th

Open Choice Equipment Agreement – Northeast

FlexiVan and NACPC are pleased to announce that OCEA-N pool operations at the Port of New York and New Jersey will commence Monday, May 14, 2018. The new Open Choice Equipment Agreement – Northeast (OCEA-N) is a port-wide cooperative chassis pool that offers motor carriers the option to engage and negotiate with the chassis provider of their choice.

Typically in most pools, ocean carriers dictate the chassis provider for both carrier and merchant haulage moves, even when they are not responsible for the costs. Otherwise known as “box rules,” this has ultimately led to increased operating costs and inefficiencies for motor carriers.

The interoperable OCEA-N pool will not only provide IEPs and motor carriers true choice of their chassis provider, but also offers a fleet of premium chassis that can transit all marine terminals at the NY/NJ port complex. The fleet will consist of premium 20’, 40’ and 40’/45’ chassis, all equipped with LED lights, ABS brakes and radial tires. Meanwhile, the pool is governed by strict business rules to ensure higher standards for fleet quality, with chassis marked “OCEA-N” in black and white to distinguish each unit.

Charlie Wellins, President and COO of FlexiVan states, “From the motor carrier, BCO and shipper perspective, competition through open choice results in more price, service and equipment quality options.”

OCEA-N is open to participation by any qualifying chassis supplier, with initial contributors being FlexiVan and NACPC. A third party has been contracted as Pool Manager, following the rules and regulations set forth by the NACPC FlexiVan Chassis Pool, LLC (“NFCP”).

“These are exciting times,” said Rich Mazur, Vice President of Sales for NACPC, “to work in conjunction with FlexiVan on a pool offering alternatives to the Motor Carrier and BCO community further highlights the spirit of modernization. Open choice and interoperability to the international community is important, and we are glad to be part of a program offering these options.”

OCEA-N offers competitive tiered pricing based on usage periods of 1-10 days or 11 days or more, with all usage invoices issued by the Motor Carrier’s chassis provider of choice. The common start/stop location will be at Ironbound Intermodal Industries in Newark, NJ.

All interested parties can register for OCEA-N using the Pool Chassis Customer Registration Form.

 

 

For further information, contact: OCEANInquiries@FlexiVan.com

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.

Open Choice Equipment Agreement – Northeast

FlexiVan and the North American Chassis Pool Cooperative (NACPC) are pleased to announce the establishment of a new cooperative chassis pool for the Port of New York and New Jersey. The pool is expected to commence operations during the first quarter of 2018.

The Open Choice Equipment Agreement – Northeast (OCEA-N) is a port-wide gray chassis pool servicing major cargo, freight and equipment handling facilities in the port complexes of New York and New Jersey.

OCEA-N will be governed by the NACPC FlexiVan Chassis Pool, LLC and operated by a single pool manager. It will be open to participation and contribution by any other equipment providers that meet the basic contributory requirements.

OCEA-N is designed to meet the requirements voiced by NY/NJ users and stakeholders, namely:

  • Contributory pool that is open to participation by any qualifying chassis supplier.
  • Fully interoperable chassis fleet with port-wide coverage.
  • “Open Choice” allows all users to negotiate with and select the chassis provider of their choice.
  • Premium equipment – Radials and LED.
  • Business rules that encourage continued equipment upgrades.

Open choice refers to the right of a motor carrier or shipper to select their preferred chassis provider. As an example, most pools operate under ‘box rules’ where the ocean carrier dictates the chassis provider (both for carrier haulage and merchant haulage moves), even when they are not responsible for the costs. OCEA-N does not prevent or limit choice, but rather the motor carrier, BCO or other responsible parties are free to select the chassis provider of their choice.

Dave Manning, President of NACPC said, “We believe the Port of NY/NJ and its stakeholders desire a long term chassis solution that facilitates greater operational efficiency, ensures fair competition and lower operating cost to motor carriers. We feel that OCEA-N meets these objectives better than any other current or proposed chassis supply model. Motor Carriers can now leverage their business to negotiate more favorable terms and conditions. OCEA-N operates with only one condition; if you are responsible for supplying the chassis, you are free to name any participating provider as your supplier.”

Stan Portlock, Vice President of Pool Operations at FlexiVan states, “Currently, motor carriers are forced to use privately owned or leased fleets in order to avoid inflated costs. This in turn interferes with port efficiency and work jurisdictions. Through competition, the OCEA-N structure allows costs for interoperable pool chassis to be comparable with private fleets.”

OCEA-N and FlexiVan’s NERP pool will be interoperable on day one. It is hoped that other chassis pool operators will also agree to participate within the OCEA-N pool and thereby provide the NY/NJ port with a single port-wide grey pool, yielding the same advantages to all stakeholders.

About FlexiVan

As a leader in intermodal chassis leasing services in North America since 1955, FlexiVan continues to set the bar for industry excellence and the customer experience. FlexiVan manages over 130,000 quality units in over 30 depots and 300 locations across the country. Nine service centers are strategically located in key markets, providing easy access to top-quality M&R services. Our innovative FlexiDay® daily rental product provides a cost effective solution to motor carriers, while our new proprietary ChassisNow booking system offers enhanced reporting and communication tools to facilitate the booking, dispatching and overall chassis leasing process. Professional, cost effective transportation solutions – Experience Delivered.

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

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All interested parties can register for OCEA-N using the Pool Chassis Customer Registration Form.

 

 

For further information, contact: OCEANInquiries@FlexiVan.com

NACPC 1,200 New Chassis

NACPC Expands Orange Footprint with Addition of 1,200 New Chassis to National Intermodal Chassis Network

New Chassis

Furthering the NACPC vision of a modern chassis supply nationally, supporting the US intermodal container network with a transparent set of economics, The North American Chassis Pool Cooperative (NACPC), proudly announces the addition of 1,200 new chassis that will be integrated into their SACP and COCP Common-Use and Premium Chassis Network.

The addition of these chassis to NACPC’s Common-Use Pools, also known as “gray pools,” allow users to draw any chassis from the pool regardless of ownership. By removing the need for a contributor to have its own chassis storage facility, the contributory pool model eliminates duplicate costs. This maximizes the use of limited space at port and or inland intermodal locations, ensuring an adequate supply of chassis for all users.

Common-Use Pools

  • Mid-South Consolidated – MCCP
  • Mid-West Consolidated – MWCP
  • South Atlantic Consolidated – SACP
  • Gulf Consolidated – GCCP

For shippers, Intermediaries, 3PLs and motor carriers planning to increase their bottom line, NACPC delivers the superior chassis solution.  A state-of-the-art fleet of chassis equipped with radial tires, LED lights, ABS and auto inflation systems as well as intermodal neutrality in Common-Use Pools at a reasonable “at cost pricing” structure.

The benefits of these features translate to:

  • Decreased M&R costs
  • Increased fuel savings and;
  • A boost for your return-on-investment.

Currently, NACPC operates more than 20,000 chassis in five Common-Use Pools (Managed by CCM) and Premium pools; MCCP, MWCP, COCP, GCCP and SACP.

The pool managers are responsible for chassis logistics, inventory supply, maintenance and repair and the repositioning of the chassis. Usage arrangements are determined between the chassis contributor and its user. These contributory gray pools foster competition by allowing motor carrier users to select from more than one chassis provider.

Premium Chassis Pools

  • Savannah, Georgia
  • Detroit, Michigan
  • Houston, Texas
  • New Orleans, LA

 

NACPC - Triple G Express

Member Spotlight – Triple G Express

Triple G Express has been synonymous with Louisiana trucking for four generations. Founded as Southeastern Motor Freight, Inc. in 1945 by Aswell Pitre and later expanding in 1985 with Triple G Express (founded by Pitre’s son-in-law Elmo Guillot and sons Randy and Glen), the family-owned company continues to grow, serving the Gulf Coast all the way up the East Coast and everywhere in between.

We recently spoke with Randy Guillot, President of Triple G Express, about the importance of chassis pools and why joining NACPC is the obvious choice.

 

Tell us a little more about Triple G Express. What does the “Triple G” stand for? 

It’s the three Guillots – my father Elmo, my brother Glen, and I.  We have two locations – Jefferson, Louisiana and Port Allen, Louisiana. We are one of the largest intermodal carriers serving the Port of Louisiana. We have about 100 independent contractors and 25 employees.

 

Let’s talk about the overall concept of chassis pools. Why are they important to the trucking industry?  

The competition with chassis providers is integrally important to the industry, to motor carriers and shippers. NACPC is a different type of provider, going on an at-cost basis and making sure we’ve got good, safe equipment for customers.

 

What benefits has your company seen by joining NACPC?

The availability of equipment in New Orleans. We’ve got premium product here in Louisiana as NACPC. The relationship with all chassis providers seems to be enhanced by a relationship with NACPC. We have premium product on site at the Port of New Orleans – at the waterfront. This is new and happened within the last six months. It’s very convenient, shaving off time and expense.

 

Advice for a company looking to join NACPC? 

I would say that they should look into the services and prices. It’s absolutely the most competitive in the industry.