Chassis Shortage Causes Major Shipping Disruption
The writers at JOC.com posted an article a few days ago in regard to the shortage of chassis that is currently disrupting the supply chain across the United States. They likened this shortage to the one experienced with too few truck drivers across the nation: whenever there is a sudden spike in freight demand, the shortage is most noticeable. The authors mention that the “threat of higher U.S. tariffs pushed the supply of chassis at many U.S. ports past the limit, delaying cargo for weeks.” Although chassis themselves are not complicated, getting a hold of one is far from easy, according to the article.
One of the main issues with the chassis shortage is the lack of communication about the shortage itself. We have heard about the lack of truck drivers, and read about plans to increase incentive for individuals to enter the trucking industry, but there has not been enough attention brought to the chassis crisis.
Since 2009, the supply of chassis has only become smaller. One of the main locations they come from is in China. However, with the tariffs on Chinese imports, the cost has risen exponentially. Domestic chassis are also becoming more expensive, thanks to steel tariffs.
It is possible that there is another factor to the chassis shortage: there is simply more freight to move. Some shipments have been grounded for a week or more because of the lack of transportation equipment. Demand has surged and organization of the chassis is not as smooth as it could be. This issue is bigger than the equipment alone. It “isn’t just a carrier issue, or a shipper issue, or a chassis provider issue...it’s a political issue” as well. It will take some creative thinking and cooperation to get the supply chain moving smoothly again.
To learn more about the chassis shortage and what that may mean in the coming year, read the full article at: https://www.joc.com/trucking-logistics/long-tail-us-chassis-shortage-snaps-shippers_20190122.html?utm_source=Eloqua&utm_medium=email&utm_campaign=CL_JOC%20TRANSPORT%201%2F24%2F19%20%201%3A00pm_PC9156_e-production_E-24513_JL_0124_1310
All credit goes to the original article at www.joc.com