The efficient flow of imported and exported goods requires daily adjustments be made to the global supply chain. When executed to perfection this is an apparent seamless process from start to finish. However, as well known to many, and making headline news on a regular basis, our supply chain is in disarray causing backlogs for both small and large businesses everywhere.
A streamlined process that has served the global community well for decades is facing challenging times as countries across the globe continue to battle with Covid-19. Under normal circumstances, vessels arriving at ports find timely access to docks, where cranes offload containers onto stacks. Truckers standing at the ready to load the containers onto the chassis and transport them to destination warehouses for offloading. When the above mentioned logistics are in sync, all parties involved from the shipping companies to port
employees, truckers, shippers, consignees, retail businesses to the final consumer are content and at ease that their expectations are met. Introducing even a slight ‘hiccup’ in this process can significantly disrupt the entire supply chain resulting in uncertainty for businesses that depend on the timely back and forth flow of containers.
The chassis shortage has received much attention during the Covid-19 pandemic, as truckers desperately scramble to expand their fleet. Despite the attention, the problem persists due to two major factors: 1) chassis falling into disrepair and (2) the escalating cost of chassis as a consequence of the increased cost of steel.
The chassis shortage is one integral part of the current meltdown of the cargo flow logistics problem that is being encountered across the globe. Overbooking of vessels and cargo volume in excess of the capabilities of loading and discharge port facilities resulting in an influx and accumulation of containers at ports together with the lack of space at ports causing vessels to be anchored out at sea for extended periods of time is magnifying the problem for businesses depending on the goods packed in these containers. Along with those who diligently maintain and keep our ports running, the Biden Administration has also begun taking steps to alleviate our supply chain bottleneck by conversing with a broad range of individuals and groups instrumental in ensuring the timely transportation of freight, including those addressing the current chassis and container shortage. The Biden Administration has put forth proposals to help identify the rate limiting
steps responsible for the inadequate distribution of essential goods and equipment. All areas that can potentially contribute to our current backlog from shipping to receiving, warehousing, intermodal transfers, among many others are being looked at carefully. The Administration’s primary end goal is to outline opportunities and challenges associated with keeping the logistic workforce content, while maximizing the continuously growing logistics supply chain. In this process, the ready availability of chassis will remain mission critical. Importers are struggling as the lack of chassis has directly impacted their bottom-line by
accumulation of adding unexpected costs. Typically, there are four available days in which truckers can pick up containers from terminals. If the truckers are at the standby, great! If not, demurrage costs begin to accrue rapidly as charges accrue daily for containers that are not picked up within the allotted window.
The challenges faced by the supply chain are affecting not only businesses importing goods, but also truckers who are trying to find ways to maximize their profits. The simple reality is that one critical part of the fix to the supply chain disruption will require the availability of more well-built and dependable chassis. This is where Panus USA comes in… Beginning in 2022, we are bringing in a brand new, state of the art chassis fleet designed for longevity, convenience and durability. Whether it be standard 20’/40’ tandem axle chassis, 40’/45’ tandem axle gooseneck chassis, or any custom specifications, Panus USA will work to insure the best fit chassis for your needs!
