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 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.

NACPC - Intermodal Cartage Company, Inc. - IMCG

Member Spotlight – Intermodal Cartage Company, Inc.

We feature our latest Member Spotlight with Joel Henry, President of Memphis-based Intermodal Cartage Company, Inc., about why chassis pools are important to the transportation industry and what kinds of benefits his company has seen since joining NACPC.

Tell us a little about IMCG – when was the company founded, what is unique about the organization? 

IMCG was founded in 1982. Our company has lots of capacity – we have trucks to service customers of all sizes and are nimble enough to support all types of requests. Our drivers and staff help to differentiate us from our competition. In addition, we spend close to four times the industry average on technology, we operate both company trucks and owner operators, and 100 percent of our fleet has on-board computers deployed in all trucks including Owner Ops.

Why are chassis pools important to the trucking industry?  

Chassis pools help drive efficiencies through better utilization of equipment, space (land) and make it easier for railroads and ports to operate in a gray pool model.

As a member, what benefits have you seen by joining NACPC? 

Higher quality chassis equate to better up time for drivers and better service for customers. Plus, there is the ability to share reduced cost to BCOs, NVOCCs and 3PLs versus other chassis pools, as well as a reduction in chassis splits.

What sets NACPC apart from other gray pools?

Quality equipment, quality of invoicing and PRICE.

Advice for a company looking to join NACPC?

Stop missing out. NACPC is less costly and features better equipment.

Member Spotlight – Devine Intermodal

In continuing to highlight our diverse member base, we present a recent interview with Richard R. Coyle, President of Devine Intermodal (founded as Devine & Son Trucking Co, Inc.), about why chassis pools are integral to the industry and the importance of investing in NACPC.

Tell us about Devine & Son Trucking Co., Inc.

“We go by Devine Intermodal, although we are officially still incorporated as Devine & Son Trucking Co, Inc. since 1923.  We run a combination of company-owned trucks supplemented by independent contractors totaling about 200 trucks altogether. We have terminals in Sacramento, Stockton, Fresno and Oakland, California plus a large terminal in Reno, Nevada where most of our recent investment has been.

On the intermodal side of our business, we service international freight transiting the Port of Oakland, plus various rail terminals throughout Northern California and Nevada. Our heavy presence in the agricultural-rich Central Valley of California means we’re deeply engaged with myriad food processors. We haul almonds, rice, raisins, prunes, canned fruits and vegetables, wine, and many supporting and peripheral commodities like wine bottles. We also have a regional truckload division that serves the western states.”

Why are chassis pools important to the trucking industry?  

“Because the geography we service covers a vast area, including the Sierra Nevada mountain passes, we have a fleet of several hundred of our own chassis outfitted with the very best components and tires to minimize problems and to make the jobs of our drivers easier.”

As an investor, why was it important to invest in NACPC? 

“The overarching objectives of NACPC are sincere: Better equipment for fair and reasonable prices. If the equipment is owned and operated by TRUCKERS then it will indeed fulfill the objectives. Equipment owned and operated by non-trucker investment pools will be motivated by profit and less motivated by quality.”

Advice for a company looking to join NACPC? 

“Do it.”

 

NACPC Takes the Lead In Chassis Innovation: Company Launches Chassis Tracking with Asset Intelligence

JOC: Profiling NACPC’s New Savannah Premium Chassis Pool

The Journal of Commerce has been profiling our efforts to help bring premium, at-cost chassis into the pools – first in Houston, now in Savannah. In Senior Editor Joe Bonney’s recent article, he states:

“As the pools’ chassis rental costs have risen, NACPC’s at-cost pricing model has provided an additional selling point. NACPC’s Houston and Savannah premium pools rent chassis for $14 a day, several dollars below what leasing companies and co-op pools charge.”

JOC subscribers can access the full article here.

To learn more about our premium pools, click here.

The North American Chassis Pool Cooperative - NACPC Premium Chassis

JOC: A Focus on Our Houston Premium Pool

We were recently included in the Journal of Commerce where Senior Editor Joe Bonney spoke about the launch of our Houston Premium Chassis Pool.

“The new Houston pool will…[make] premium 40-foot chassis available for short or long-term rental to NACPC members. ‘This particular solution will ensure that our customers have access to a premium-quality chassis each and every time,’ [NACPC President & Chairman Dave] Manning said.”

JOC subscribers can read the full article here.

The North American Chassis Pool Cooperative - NACPC Chassis - The Evans Network of Companies

Member Spotlight: The Evans Network of Companies

A cooperative is only as good as its community partnerships. We are excited to feature our diverse member base and highlight NACPC’s growing relationships and collaboration within the intermodal industry.

We recently spoke with Chris Giltz, Senior Vice President of Operations for The Evans Network of Companies, about challenges facing the trucking industry and why NACPC stands out among its competitors.

 

Tell me a little bit about The Evans Network of Companies.

“We were formed 1939 and our corporate office is located in Schuylkill Haven, PA. We have about 190 offices around the country and a fleet of 3,500 trucks. We’re mostly intermodal but we also do truckload and brokerage. We operate out of every port facility except the West Coast. We also operate out of most of the rail facilities as well.”

 

When did The Evans Network of Companies join NACPC and why was it a good fit?

“We started using NACPC in 2012 and later I joined as a board member and investor in 2013. It’s a great fit for Evans because they’re supplying chassis in a lot of the areas in which we operate.”

 

What direct benefits have you seen for your company?

“It’s a cost effective alternative to the big three chassis providers. We like the push toward better tires and lights. And we like the fact that it’s a trucker-owned pool.”

 

What are the major differences between NACPC and its competitors?

“What we keep seeing in the intermodal world is equipment pricing costs that keep rising and rising without any underlying cost increase justification. One of the biggest things is trying to put the brakes on unlimited price increases on chassis providers.”

 

Why do you think NACPC is important to the trucking industry?

“Equipment has been a huge issue in the drayage industry. We see equipment in poor shape and the truckers unfortunately are the ones getting citations and CSA score points for them. The thing I like the best about NACPC is that it’s trying to change this, it stays competitive and pushes the industry toward better equipment.”

 

Advice for a company looking to join NACPC?

“If you are a trucker and you’re complaining about the high cost of chassis then this is your trucker-owned chassis pool and you should support NACPC.”

NACPC Creates Premium Chassis Pool in Savannah with Operational Support from CCM

NASHVILLE, TN (August 01, 2016) – Responding to growing customer demand, the North American Chassis Pool Cooperative (NACPC) continues to offer off-dock premium chassis solutions with a new premium pool in Savannah, Georgia. These chassis will be available for direct lease to motor carriers using NACPC’s at-cost pricing model.

Effective August 01, 2016, NACPC, in partnership with Consolidated Chassis Management (CCM), will commence operating a pool of 40-ft premium chassis available for short and long-term use. These modernized chassis are equipped with radial tires, LED lights and auto-inflation systems – making them among the newest and safest on the market.

Whether for motor carriers or beneficial cargo owners, premium chassis are proving to be an excellent solution for customers who place the utmost value on driver safety and cost-effective operations.

“This premium chassis pool, conveniently located just outside the Port of Savannah, will enable us to make our safe and modern chassis available directly to motor carriers,” said David Manning, President and Chairman of NACPC. “Although we have previously contributed new chassis with this equipment into the gray pools, this particular solution will ensure that our customers have access to a premium quality chassis each and every time.”

The North American Chassis Pool Cooperative - NACPC Premium Chassis

NACPC Remains Committed to At-Cost Chassis Rental Pricing as Competitors Increase Rates

NASHVILLE, TN (July 1, 2016) – The North American Chassis Pool Cooperative (NACPC) has committed to maintaining the most cost-effective chassis rental rates in North America despite competitors raising rates consistently since 2013 as follows:

  • DCLI: $16.12 to $18.50
  • Flexi: $15.30 to $19 SACP/$19.25 MCCP
  • TRAC: $16.39 to $19.50

*Rates sourced from DCLI, Flexi-Van & TRAC Websites as of 6/30/2016

NACPC will maintain at-cost member pricing as follows:

  • MCCP: $14.25
  • COCP: $14.25
  • SACP: $12
  • GCCP: $12

Regarding this decision to maintain at-cost pricing, NACPC President and Chairman Dave Manning states: “Our mission at NACPC is to support motor carriers with an expansive and modernized chassis fleet. This should not come into conflict with our customers’ bottom line – we are here to drive their business and our industry forward and remain committed to doing so with this decision.”

NACPC’s pricing has helped many customers save upwards of $1,000,000 per customer/annually. “Our goal,” says Manning, “Is to invite more customers to learn about NACPC in order to help them positively impact their business’ bottom line. Increased rental rates do not have to slow business down – NACPC is the secret weapon our customers have come to rely on.”