8
Chassis and the Export Supply Chain Jeffrey F. Lawrence, Executive Director Ocean Carrier Equipment Management Association (OCEMA) AGTC 31 ST ANNUAL MEETING TACOMA, WASHINGTON JUNE 13, 2019

Chassis and the Export Supply Chain · 2019. 7. 1. · •Lead ocean carrier organization for U.S. intermodal and equipment issues •Formed in April 2000 •11 international ocean

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Chassis and the Export Supply Chain · 2019. 7. 1. · •Lead ocean carrier organization for U.S. intermodal and equipment issues •Formed in April 2000 •11 international ocean

Chassis and the Export Supply Chain

Jeffrey F. Lawrence, Executive DirectorOcean Carrier Equipment Management Association (OCEMA)

A G TC 3 1 S T A N N UA L M E E T I N G

TA C O M A , WA S H I N G TO N

J U N E 1 3 , 2 0 1 9

Page 2: Chassis and the Export Supply Chain · 2019. 7. 1. · •Lead ocean carrier organization for U.S. intermodal and equipment issues •Formed in April 2000 •11 international ocean

What is OCEMA?

2

• Lead ocean carrier organization for U.S. intermodal and equipment issues

• Formed in April 2000

• 11 international ocean containership carriers are members

• OCEMA's activities are authorized under the U.S. Shipping Act

Page 3: Chassis and the Export Supply Chain · 2019. 7. 1. · •Lead ocean carrier organization for U.S. intermodal and equipment issues •Formed in April 2000 •11 international ocean

Consolidated Chassis Management, LLC• OCEMA formed CCM as a subsidiary in 2005 to function as a chassis

management utility

• Formed in response to industry concerns with dwindling rail/marine terminal space, congestion, inefficient equipment usage, and safety

• CCM operates 6 regional pools at over 200 locations, with 120,000 chassis under management

• All chassis in the pools are regional and “gray” (interoperable). They are operated on an “at cost” basis.

• Open on equal terms to contributors of chassis from all industry segments (Carrier, Trucker, Rental/Leasing Companies, Shippers, etc.)

• Priority is on service and safety -- supporting the supply chain, not testing stress points to maximize utilization

3

Page 4: Chassis and the Export Supply Chain · 2019. 7. 1. · •Lead ocean carrier organization for U.S. intermodal and equipment issues •Formed in April 2000 •11 international ocean

What We Said Last Time We Were Here…

4

At the 24th Annual AgTC meeting in 2012, OCEMA’s view was:• Chassis are not going away, but the status quo was not viable

• Significant changes/operational impacts would occur

• Varying shipper-carrier-terminal-regional operational needs meant current solution working for everyone was not a given

• Several models, then in effect would fall away and new models, probably differing by region, would prevail… and the likely surviving models would be:

Co-op/Gray pools

Proprietary “Rental” pools

• Because changes were coming, we urged shippers, carriers and truckers to seriously discuss chassis needs—i.e, collaboration and cooperation

Page 5: Chassis and the Export Supply Chain · 2019. 7. 1. · •Lead ocean carrier organization for U.S. intermodal and equipment issues •Formed in April 2000 •11 international ocean

OCEMA’s View on the Current Situation• The problems: Loss of single pool efficiencies, service failures, high costs for

most stakeholders, chassis hoarding and dislocations. Simply put, there has been an overall regression in “chassis resilience”

• The answer: Regional Gray Pools

Tested over ten years/millions of moves – they work!

Centralized inventory control, repositioning, and forecasting

All chassis interchangeable

MC efficiencies

Service, safety, and cost effectiveness first

Pool is “open” to any contributor, ensuring low barriers to entry, innovation, competition

5

Page 6: Chassis and the Export Supply Chain · 2019. 7. 1. · •Lead ocean carrier organization for U.S. intermodal and equipment issues •Formed in April 2000 •11 international ocean

Need for Industry Collaboration• Antitrust laws have protected our economy

against a variety of anticompetitive practices

• In some cases uncertainty as to antitrust limitations has inhibited collaboration, resulting in lost opportunities to achieve efficiencies, cost savings, service improvements

• There are ways forward to collaborate legally to achieve needed progress

• The Memphis Supply Chain Innovation Team is a bold effort to collaborate on an issue crying out for cooperation

6

OCEMA stands ready to work with service partners in a proactive, collaborative mode to build a more resilient supply chain in the U.S.

Page 7: Chassis and the Export Supply Chain · 2019. 7. 1. · •Lead ocean carrier organization for U.S. intermodal and equipment issues •Formed in April 2000 •11 international ocean

How Do We Get to a Solution?

7

Challenges:Reassembling single regional structures to achieve interoperability

Ensuring viable economic model for all stakeholders

Reduce off-terminal dwell time and manage free time effectively

Equipment upgrades (lights, brakes, tires) and investment

Improve forecasting capabilities

Increased use of appointment systems

Encourage grounded facilities with off dock solutions, wherever possible

The only realistic way forward to address these issues is the use of regional gray chassis pools

Page 8: Chassis and the Export Supply Chain · 2019. 7. 1. · •Lead ocean carrier organization for U.S. intermodal and equipment issues •Formed in April 2000 •11 international ocean

Thank you.

8

“What if, and I know this sounds radical, we collaborated to find a solution.”