DOJ Ruling Clears Way to Advance SoCal Chassis Pool Plan
LONG BEACH, Calif. — The Justice Department has cleared the way for greater cooperation between two of the three largest chassis pool operators in the Los Angeles and Long Beach area that is intended to further free flow of chassis throughout the port.
The federal agency said it would not oppose a plan by Direct Chassis Link and Flexi-Van to create a so-called “pool of pools” that would make equipment interchangeable among four existing chassis pools at the nation’s two largest ports. Both facilities, and truckers, have been plagued by cargo delays inside the terminal and at shippers during this year’s current peak holiday season.
“There will be a free flow of chassis across San Pedro Bay,” Bill Shea, CEO of DCLI, told Transport Topics.
With the agreement in hand, each of the four pools still has to decide whether to participate in the “pool of pools”, Shea explained. TRAC Intermodal, the largest chassis lessor, participates in two of the pools, creating the prospect for it to participate in the larger plan as well.
A starting date hasn’t yet been announced, but Flexi-Van President Phil Connors told TT the target is some time during January.
The four existing pools together control about 90% of the chassis used in the Southern California area.
The receipt of the business review letter by the two leasing companies was announced during the Intermodal Expo here.
DOJ said in a statement that chassis interchangeability will enhance service, productivity and “achieve better overall utilization of the region’s chassis fleets,” the DOJ letter said.
Each company will continue to set its own terms and rates. Equipment use will be calculated by a third-party arbiter.
