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What Is A Chassis Split? How It Charges And Avoids
When transporting a container, there may require extra handling activities to pick up and deliver. One of these processes is the chassis split, common in container drayage shipping in US ports and intermodal transportation. This article will develop your understanding of chassis split meaning, how it charges, and tips to avoid it to a great extent.
What is a chassis split?
A chassis split is a term used in the transportation industry. It describes the status of the freight container located in a different place than the truck chassis during delivery shipping. The chassis, typically owned by a separate provider, is the frame or base of a truck that holds the container.
When will it occur?
A chassis split will occur when a seaport does not have available chassis due to access space or other reasons. Generally, there are two types of chassis split, including pick up and return in chassis shipping.
First is the split pick-up, which signifies that the truck needs to make a separate trip to take a chassis before picking up a container. It usually happens when assigning a trucking driver to take a loading container from the port or the carrier does not provide a chassis. In this situation, the truck carrier should drive to a nearby chassis pool, take the chassis first, and finally pick it to the container drop-off or delivery place.
The second is chassis split return, referring to the driver needing to return the chassis to another location after finishing container shipping. It commonly occurs when returning a container, but the port or carrier’s depot does not accept the chassis because of policies or space, so the trucking company should deliver it to a different place.
The decision to perform a chassis split usually comes with the logistics provider based on the shipping situation and strategy.
What is the chassis split fee?
Before 2009, the ocean freight carrier still provided the chassis and enjoyed chassis ownership. However, after Maersk exited the business of provisioned chassis, other companies followed to abolish chassis ownership. For this reason, the truck company needs to purchase or lease the chassis for container shipping.
In a nutshell, the chassis split fee arises as the truck may go to different areas than containers to get an available chassis. This fee intends to offset the freight costs (labor and fuel for trucking) on additional trips. It can form part of origin or destination charges, and the cost of chassis split is an average of $50.00 to $100.00 per split.
How does it charge?
The fee of the chassis split is usually calculated and captured at the time of delivery. It will vary from the chassis pools, truck carriers, etc. And it may be included in the overall cost of transportation or charged as a separate line item on the invoice.
In addition, the chassis split fee always covers the labor and equipment costs associated with the process of chassis shipping. It depends on the location and the specific circumstances of the chassis split, such as the distance between the container location and the chassis and any additional services required.
How to reduce chassis split fees?
When trying to minimize the expenses for chassis split, you can try to negotiate or use a freight forwarding company. Since the truck driver charges the chassis fee from the shipper or consignees, it is negotiable. You can try talking with the driver about the days needed to get the chassis out of port or the fees charged on the chassis. With a reliable freight forwarder, they will negotiate on your behalf.
In addition, avoiding overnight pick-ups is a surefire way to save money. Because picking up the container at night is still charged as a full-day chassis rental. The longer the container is stored, the higher the chassis rental fee. Thereby, you can reduce this by extracting cargo as earlier as possible.
Will chassis split delays impact shipping?
Of course, it will. Generally speaking, the delay process of chassis split will incur if the required equipment is in high demand while there is a shortage of trailers. It may result in the loaded containers entering the port after deadlines and ultimately delaying shipments until the next possible voyage.
Furthermore, if the chassis pool is far from the pickup location, the driver would spend more time picking the chassis. Due to the unplanned delay, a chassis split not only affects the delivery timelines but also may cause demurrage and detention fees.
How to avoid chassis split?
While chassis splits are sometimes necessary to optimize the logistics supply chain, they can also be costly and time-consuming. Here are some tips you can refer to avoid:
Get your own chassis fleets
If your capital and facility space is abundant, you can consider using your own fleet with drayages and trucks. A dedicated chassis pool allows for eliminating the possibility of a chassis split. What’s more, you can fully control the location of the chassis for your peak-season container delivery.
Ask a freight agent to handle
Before starting international shipping, you can cooperate with the shipping carrier that provides one-stop transportation instead of trucking only. An agent differs from a trailer driver in that he also takes responsibility for container shipping. The forwarding carrier typically will not charge extra chassis split fees.
Leverage customized chassis
You can customize specific chassis to accommodate and handle complex or multiple loads during shipping containers. So you can use one chassis to handle most of your shipment, which will support you in gaining more efficiency in trucking delivery. However, you should pay attention that maintenance and upkeep for chassis can be expensive.
It is advisable for you to use a professional 3PL or logistics partner if there is a limitation in the fund and resources. For example, Airsupply, an experienced freight forwarder, will bring in cargo delivery seamlessly and reduce chassis split.
Book chassis shipping services with HUIN International Logistics
Chassis split can be a costly and irritating affair if mishandling takes place. Moreover, it will cause supply chain disruptions and may create bottlenecks and congestion in terminals and ports.
Truckload delivery powered by HUIN International Logistics Logistics is ready to provide you with best-in-class shipping solutions. They will promptly deliver your container out of port without unnecessary chassis split fees.
Airsupply expert freight services can get you set up an efficient supply chain, such as intermodal transportation and door-to-door delivery, etc. Contact Airsupply’s official teams and let them solve the hassle of port drayage for you today.