Consolidated Chassis Management will run the chassis pool to give customers “a cost-effective and efficient supply chain that eliminates choke points and increases velocity.”
The Ocean Carrier Equipment Management Association (OCEMA), Georgia Ports Authority (GPA), and South Carolina Ports Authority (SCPA) have signed a memorandum of understanding to establish a South Atlantic Chassis Pool (SACP 2.0).
The SACP 2.0 will have 58,000 chassis and will ensure a continued interoperable chassis solution for the entire South Atlantic region, according to an announcement Monday, which said it will be the largest integrated “grey” chassis pool in the United States.
Monday’s announcement said the chassis pool will be managed by Consolidated Chassis Management LLC (CCM), a subsidiary of OCEMA.
According to the memorandum of understanding, the SACP 2.0 will be committed to improving the reliability of supply and quality of the chassis fleet to serve the growing volumes in the South Atlantic region. The SACP 2.0 will implement a chassis upgrade program to transition the chassis fleet to radial tires, LED lights and ABS. In addition, the memorandum of understanding provides for reduced stress levels and an expedited system for additional equipment based on trade needs.
“SCPA appreciates the commitment to safe and reliable operations that these chassis upgrades will provide during the next 36 months,” said Jim Newsome, SCPA president and CEO. “We applaud the work and planning between OCEMA, GPA and SCPA that led to this outcome.”
Under the new structure, CCM will work closely with the ports, ocean carriers, railroads and pool stakeholders to improve chassis forecasting capabilities.
“The chassis industry is evolving and this is an effective bridge to achieving a longer-term solution,” said GPA Chief Operating Officer Ed McCarthy. “At the end of the day, this agreement is about providing our customers with a cost-effective and efficient supply chain that eliminates choke points and increases velocity.”
An SACP operations committee comprised of the ports, equipment contributors and ocean carriers will oversee day-to-day operational issues affecting the pool and provide input and recommendations to CCM. The largest contributors to the pool are TRAC Intermodal, DCLI, NACPC and Flexi-Van Leasing.
OCEMA Chairman Frank Grossi said, “OCEMA, GPA and SCPA have worked to develop a solution that best fits the needs of the region to improve chassis availability and quality, while not significantly increasing transportation costs. We believe this collaborative effort of OCEMA and the ports will benefit the entire trade and strengthen a key link — intermodal chassis — in the supply chain.”