Study: Tighter Intermodal Chassis Regulation Enforcement Needed
Published: October 19, 2024
The recently published study by the National Academies of Sciences, Engineering, and Medicine suggests that rather than implementing new policy changes, tightening enforcement of existing regulations and enhancing information sharing could significantly improve the efficiency of the drayage and intermodal chassis market. Despite new safety requirements introduced by the FMCSA nearly 15 years ago, the study highlights that inspection performance has remained inadequate.
The study was commissioned by the Federal Maritime Commission in response to the Ocean Shipping Reform Act of 2022 after concerns were raised about port congestion and chassis safety. The committee recommends that the FMCSA closely analyze inspection records to ensure compliance with safety standards, reassess monitoring processes if necessary, and encourage collaboration between FMCSA and FMC to improve chassis quality monitoring and data sharing.
Industry responses to the findings have been mixed. While leaders from the American Trucking Associations and the North America Chassis Pool Cooperative welcomed the recommendations, expressing hopes for improved chassis safety and maintenance, others like Donna Lemm from IMC Logistics noted a lack of focus on best practices that benefit all supply chain stakeholders.
In my view as a transportation expert, the challenges faced in the drayage and intermodal chassis sectors highlight a broader need for integrated operational strategies across multiple stakeholders. Improving enforcement of current regulations and sharing data will not only enhance safety and efficiency but may also pave the way for an environment where proactive maintenance and best practices can flourish. Engaging stakeholders from all areas of the supply chain in a cohesive dialogue will be essential in addressing the interconnected issues inherent in this complex logistics framework.
The Federal Maritime Commission (FMC) upheld a ruling which found that certain ocean carriers violated federal law by mandating trucking companies to use specific intermodal chassis providers. This controversy surrounding "box rules" led to follow-up investigations as some chassis providers were reported to ignore a cease-and-desist order issued following the ruling. Challenges highlighted include issues at wheeled facilities, such as mismatched chassis and wasted driver time.
In 2020, IMC, a significant intermodal carrier, filed a complaint against the Ocean Carrier Equipment Management Association (OCEMA) and several other carriers for restricting motor carriers' choices in chassis leasing. Despite the FMC's ruling affirming the illegality of these practices, experts express continued concerns regarding compliance and operational efficiency in the industry.
An expert perspective on this issue emphasizes the necessity for legislative frameworks that not only enforce compliance but also promote best practices across the supply chain. Efficient chassis management is pivotal in ensuring that the logistics ecosystem functions smoothly. Regulatory bodies and industry stakeholders alike must collaborate to establish clear guidelines that enhance operational efficiency while safeguarding the interests of all players in the supply chain. The integration of technology, such as artificial intelligence, could also play a crucial role in addressing these challenges by optimizing logistics and reducing delays in container handling.