PierPass has advised they have shelved the $5.00 chassis fee that was to go into place at the Port of Los Angeles – Long Beach on September 1. Each terminal will negotiate directly with the chassis-leasing companies on compensation for hosting the equipment.
In a statement from PierPass: “Member terminals affirm their right to seek compensation for the costly services they provide to chassis leasing companies at the Ports of Los Angeles and Long Beach. It costs terminals more than $200,000 per acre per year to lease land from the ports, and the terminals each have many acres stacked with chassis. This land could otherwise generate income for terminals by letting them process more containers, and would also let them manage containers more efficiently. Terminals have also been covering the cost of ILWU labor needed to stack, unstack and move the chassis, and the cost of the personnel, hardware and software needed to provide chassis usage data to the leasing companies.”
In other news at the port, truckers worry that the chassis shortages of July may be a sign of longer visit times at the terminals during the upcoming peak shipping season. Weston LaBar, Executive Director of the Harbor Trucking Association commented, “Chassis are a big issue. The shortages create a snow ball effect.”
It is suspected by trucking companies and terminal operators that some beneficial cargo owners may be hoarding chassis as the peak shipping season approaches. This “street dwell time” results in equipment sitting in warehouses longer than usual, creating an artificial shortage of chassis in the supply chain.