As shipping containers travel from arrival ports to their final destinations, they require specialized equipment, with the chassis being one of the most essential.
On many occasions, however, the chassis needed to transport a container is located away from the port or terminal. This adds some extra complexity that’s referred to as chassis split.
Indeed, among the intricacies of international shipping operations, where every extra detail should be planned (and charged), chassis split is an extra that affects both costs and shipping schedules.
But, before diving into chassis splits, let’s first see what a chassis is.
What Is A Chassis?
A chassis is a wheeled frame or trailer that links to a semi-truck, designed to carry cargo containers between terminals, ports, and warehouses or other inland destinations over the road. Standard, 2-axle chassis carry standard 20ft & 40ft containers, while tri-axle chassis are used for high-cube containers carrying heavier loads.
Oftentimes, when your cargo arrives at the port, your carrier needs to transfer the proper chassis from another location outside the terminal – often a chassis pool. This involves additional planning and resources – all charged to the shipper as Chassis Split Fees.
So, what exactly does chassis split entail?
What Is A Chassis Split?
A chassis split is a specific scenario in ocean freight operations where a container and the chassis needed to move it on, are not located in the same place. This means that both chassis and container need separate handling and movement. All these extras are charged in the shipping invoice as chassis fees or chassis split fees.
As a shipping company manager says, a chassis split scenario takes place when “a chassis is not within the same area where the container is which requires a trucker making extra miles to get both.”
But why are containers and chassis in different locations in the first place?
When Does A Chassis Split Occur?
Chassis splits mainly happen because no chassis is available at an ocean port. And there can be various reasons why:
- Limited chassis availability at a given location.
- Operational efficiency optimizations that lead shipping companies to separate containers and chassis.
- Port requirements, regulations, or lack of space at ports and terminals.
- Chassis shortages due to peak season surges.
- Logistical problems or poor planning at ports and ramps.
- Inefficient chassis management systems or a lack of visibility in the supply chain.
- Unexpected events affecting chassis planning.
Types Of Chassis Split
There are two common scenarios where a chassis split occurs during transit:
Split Pick-Up
This term implies any instance when the ocean terminal where the shipment arrives doesn’t provide a chassis, and so the truck driver must make a separate trip to a chassis pool before going to the port to pick up the container.
Split Return
It occurs when a container is returned to the ocean terminal, but the terminal cannot accept the chassis, perhaps due to a lack of space or specific policies. In this case, the truck driver must deliver the chassis to an off-site location different from where the container is returned.
Both cases result in chassis fees.
And if a single shipment requires both a split pick-up and a split return, then there’s a Double Chassis Split Fee.
What Is A Double Chassis Split fee?
A double chassis split is a cargo shipping charge that occurs when a trucker needs to pick a chassis from a different location before getting to the port to pick up a container. Similarly, upon return, they have to do that extra mile to deliver the empty container to a different location than the chassis.
This fee is less common than chassis split fees.
What Is The Chassis Split Fee?
A chassis split fee (or chassis fee) is a shipping charge that covers the expenses incurred for transporting a chassis at the arrival port or terminal where the container is located. In essence, it compensates the trucking operator for the extra effort and cost involved in this process.
How Many Chassis Splits Should There Be?
As a logistics rep states, “there should never be three, and only a few instances should require two.” The reason is that most carriers continue using the same chassis to avoid unnecessary costs.
For the record, it’s worth mentioning that fees related to chassis splits, rentals, and detention started around the same time that chassis pools came about, in the early 1990s.
Before that, some long-standing global shippers argue, “we never used to get billed for splits, rental, etc, it was a given the chassis cost was included in the freight with the container, but that was when the carriers had their own chassis.”
What Is Chassis Detention?
Chassis detention is an extra shipping fee charged when a shipper uses equipment, in this case a chassis, past its allowed free time outside the port. Similar cases where the equipment is used overtime inside the port result in a demurrage fee.
How Chassis Splits Impact Cargo Shipping
Despite the challenges and costs, chassis split offers various benefits for carriers and shippers.
Above all, it offers a high level of flexibility by better matching goods to transportation needs and market fluctuations. It basically allows carriers to select the most suitable equipment for each shipment and better control costs.
Nowadays, integrated technology, like digital tracking systems and real-time monitoring tools, can further optimize chassis split efficiency.
According to some studies, chassis split strategies can drive efficiency improvements of up to 25% and reduce transportation costs up to 20%!
Furthermore, predictive analytics and machine learning systems are expected to further enhance efficiency by anticipating demand and optimizing allocation.
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