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Chassis Operations Group

Chassis at the Port of Long Beach

The Search For A More Efficient Chassis Supply Model

Thank you for visiting the Chassis Operations Group web page.

The Group is made up of stakeholders in the San Pedro Bay port complex working together to find a more efficient chassis supply model for container transportation at the Port of Long Beach and Port of Los Angeles.

Historically, ocean carriers have owned and provided the vast majority of the chassis used for container transportation in the U.S. However, ocean carriers find the system costly and have begun to divest themselves from the role. Under the current system, many chassis sit idle, taking up valuable terminal space.

The Chassis Operations Group will study the issue to identify a better, more efficient model. Ocean carriers, terminal operators, beneficial cargo owners, trucking companies, railroads and the International Longshore and Warehouse Union are represented in the group.

The Group plans to work towards a Request for Proposals (RFP), and acquire valuable input from all industry stakeholders to include as criteria for a new chassis supply model. The Group envisions that a third-party contractor will set in motion an unbiased process to determine the most efficient chassis supply model for the San Pedro Bay port complex, and establish a discussion agreement with the Federal Maritime Commission in consultation with the Long Beach City Attorney's Office for legal counsel.

On this page, you will find links to updates on our efforts, including minutes of past meetings, on-going discussion topics and other resources.

Please visit us often.

Why is this needed now?
The container chassis is an essential piece of equipment in the cargo container transportation system. In the U.S., ocean carriers have traditionally owned and supplied the chassis, but the recent recession and the pressure to keep costs low are making the industry reevaluate the model. In other parts of the world, chassis assets are held largely by motor carriers and logistic companies. To remain the country's gateway of choice for transpacific trade, we must find an efficient chassis operation that reassures beneficial cargo owners and other in the supply chain.
What is the scope of the Chassis Operations Group?
The Port of Long Beach and Port of Los Angeles partnered with other stakeholders in terminal operations, labor and logistics to steer the discussion and understand the issues. Based on the findings, a third party contractors will make a final, unbiased recommendation for implementing a new model.
If the model is nationwide, why start a model in Southern California?
The Port of Long Beach and Port of Los Angeles account for about 40 percent of all container trade in and out of the U.S. There are an estimated 565,000 container chassis units in the country, about a third of them are in the West Coast. By setting a more efficient model here, we have the opportunity to set an example for the rest of the country.
Who is leading this effort?
This is a collaborative effort among all the stakeholders. The Port of Long Beach and Port of Los Angeles are facilitating the process so that the best solution is reached for all parties involved. A more efficient chassis operation benefits everyone in the industry; the ports, the shipping lines, terminal operators, trucking companies, railroads, cargo owners and the public by improving efficiency and reducing traffic congestion and air pollution.
When will the Request for Proposal (RFP) be published?
This date is currently unknown as the group developments are still in its early stages.
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